July '06 vs. July '07

Redwood City and Redwood Shores did not experience a big change in inventory for SFR's (up 2) or Condo's (up 5) in the month of July ’06 vs. ’07. Sales activity in both markets was down from the same period last year; 16 less SFR’s were sold during the month of July in 2006 vs. 3 less this year for Condo's. Average Sales Price was down for both with SFR’s 12% and Condo’s 1% down from July 2006. What is really interesting is the List Price to Selling Price ratio is on the rise for both SFR’s, 1.3% and Condo’s ½ %.

The sub-prime mortgage "crisis" has caused a lack of demand for mortgage-backed securities in the financial markets. A number of lenders are cutting back on non-conforming loans or placing much more stringent conditions and higher interest rates on those loans. Some of the lenders who are still taking such loans are backed up and not getting out documents on time, resulting in instances of delayed closings. In addition, my conversations with title officers and mortgage brokers give me the impression that 2nd loans are getting to be about as scarce as the proverbial leprechauns.

American Home Mortgage, reportedly the 10th largest lender, recently filed for bankruptcy. Data indicates that, nationally, about 100 lenders have closed their doors in the last year. The “MarketCast” is touting going short or buying puts on almost all of the home mortgage stocks and builders. The volatility of the stock market has me wondering hard. U2?

What this means to buyers and sellers.

Sellers need to be aware that lenders are a critical part of the sales transaction. Buyers who are pre-approved with substantial down payments are worth their weight in gold in these times. Negotiating in good faith with qualified buyers is a smart thing to do, as is recognizing when the time is right to reduce the offering price of a home that is not receiving much market attention. The current mortgage situation will most likely continue to deplete the pool of qualified buyers for the near future.

Buyers are wise to utilize the services of a reputable local lender or broker with a proven track record. They should ensure that they are pre-approved for the home they want to purchase, and they should check often on the going interest rates to make sure that the amount they qualify for has not down substantially.

An “A Realtor” can help ensure that transactions remain on track and on time. By keeping abreast of the transaction details daily, they can provide early warnings about potential problems and help buyers and sellers preserve their American dream. Based on their experience and expertise, an “A Realtors” can be a source of useful information and consult. The current lending situation will work itself out in time, but until then successful buyers and sellers will benefit greatly from being prepared.

Tuesday Tour 8/14/07

Redwood City: 1720 Valota Road, Grandma’s house with a detached 2-car garage with 3 bonus rooms. Wonderful Country Home feeling with real wood planked floors 3 bedrooms 4+ baths. Listed for $1,089M

1469 MacDonald Street, Tucked away from any through traffic. Large custom home located in the Plaza. With 3 bedrooms, 2 baths and 2-car garage I thought it was today’s best value for under $1.0M. Listed for $949K

2330 Roosevelt Avenue, Charming split level home including 3 bedrooms, 2 baths, 2-car garage. The parquet floors are individually sawn strips nailed separately…very nice. Listed for $849K.

2707 Hopkins Avenue, Fixer-Upper on the corner of Hopkins and Alameda. 2 bedrooms, 1 bath, 1 car garage. Did someone say potential at the right price? Listed at $729K.

1298 Westwood Street, Cute as a button, newly remodeled with an inviting backyard. 3 bedrooms, 2 baths another good value at only $875K.

600 Handley Trail, What a great home in Emerald Hills on 7 years old. The home boost a 4100 sq. ft. living space, with 5 bedrooms, 4 baths, family room, dining room, just over ½ acres, with a view to die for and private fenced play area and equipment for the children. Truly a house anyone would love to call home. Priced at $2.550M

572 Mountain View Way, Just around the corner from 600 Handley Trail on it’s own private road sit a 3-year-old home with panoramic views. 5 bedrooms, 3.5 baths, 2 car garage, family room, formal dining room, study/office, granite kitchen with island. The most impressive kitchen ~ family room I have ever seen. Listed at $2.595M

3 Ventana Court, You want unique this is your home in Emerald Hills. Custom contemporary designed by Fred Herring. Including 4 bedrooms, 3.5 baths, 3-car garage, awesome views on over an acre, guest quarters. Listed at $2.095M

541 Oak Park Way, private setting with great bay views in Emerald Hills. 3760 sq. ft. home with 4 bedrooms, 3.5 baths, and 3-car garage situated on ¼ of an acre. Listed for $2.095M

Woodside: 447 Whiskey Hill Road, this estate home with guesthouse and full equestrian facilities are located on 3.5 flat acres hidden off the beaten path. Great estate with the main house having; 5 bedrooms, 4.5 baths including 1/1 staff suite. Listed at only $7.4M

C.A.R.'s Latest Report

Wednesday, July 25, 2007
C.A.R. reports sales decrease 24.7 percent in June, median price of a home in California at $594,260, up 3.2 percent from year ago
LOS ANGELES (July 25) – Home sales decreased 24.7 percent in June in California compared with the same period a year ago, while the median price of an existing home increased 3.2 percent, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) reported today.
"The focus on foreclosures and subprime lending is ongoing and, coupled with higher inventories of homes for sale, is prompting many would-be buyers to play a ‘wait-and-see’ role," said C.A.R. President Colleen Badagliacco. "However, well-maintained homes with curb appeal that are priced for today’s market continue to sell. It’s often a matter of counseling buyers and sellers to set realistic expectations on both sides of the transaction."
"First-time buyers continue to be impacted by tighter mortgage underwriting standards and the affordability challenge, which has not improved significantly despite price declines in most regions of the state," she said.
Closed escrow sales of existing, single-family detached homes in California totaled 364,280 in June at a seasonally adjusted annualized rate, according to information collected by C.A.R. from more than 90 local REALTOR® associations statewide. Statewide home resale activity decreased 24.7 percent from the 483,690 sales pace recorded in June 2006.
The statewide sales figure represents what the total number of homes sold during 2007 would be if sales maintained the June pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.
The median price of an existing, single-family detached home in California during June 2007 was $594,260, a 3.2 percent increase over the revised $575,850 median for June 2006, C.A.R. reported. The June 2007 median price increased 0.2 percent compared with May’s revised $592,780 median price.
"With just over a 10-month supply of homes for sale on the market, we expect further softness in prices in the coming months," said C.A.R. Vice President and Chief Economist Leslie Appleton-Young. "The San Francisco Bay Area continues to see leaner inventory levels compared to Southern California and the state as a whole."
"Unlike the downturn we experienced in the early 1990s, the sales decline is not driven by weakening economic conditions," she said. "Both the California and U.S. economies continue to expand."
Highlights of C.A.R.’s resale housing figures for June 2007:
. C.A.R.’s Unsold Inventory Index for existing, single-family detached homes in June 2007 was 10.1 months, compared with 6.1 months (revised) for the same period a year ago. The index indicates the number of months needed to deplete the supply of homes on the market at the current sales rate.
. Thirty-year fixed-mortgage interest rates averaged 6.66 percent during June 2007, compared with 6.68 percent in June 2006, according to Freddie Mac. Adjustable-mortgage interest rates averaged 5.68 percent in June 2007 compared with 5.71 percent in June 2006.
. The median number of days it took to sell a single-family home was 51.7 days in June 2007, compared with 45.3 days (revised) for the same period a year ago.
Regional MLS sales and price information is contained in the tables that accompany this press release. Regional sales data are not adjusted to account for seasonal factors that can influence home sales. The MLS median price and sales data for detached homes are generated from a survey of more than 90 associations of REALTORSâ throughout the state. MLS median price and sales data for condominiums are based on a survey of more than 60 associations. The median price for both detached homes and condominiums represents closed escrow sales.
In a separate report covering more localized statistics generated by C.A.R. and DataQuick Information Systems, 28 percent, or 105 out of 375 cities and communities, showed an increase in their respective median home prices from a year ago. DataQuick statistics are based on county records data rather than MLS information. DataQuick Information Systems is a subsidiary of Vancouver-based MacDonald Dettwiler and Associates. (The top 10 lists are generated for incorporated cities with a minimum of 30-recorded sales in the month.)
Note: Large changes in local median home prices typically indicate both local home price appreciation, and often, large shifts in the composition of housing market activity. Some of the variations in median home prices for June may be exaggerated due to compositional changes in housing demand. The DataQuick tables listing median home prices in California cities and counties are accessible through C.A.R. Online at http://www.car.org/index.php?id=Mzc1OTE=

. Statewide, the 10 cities and communities with the highest median home prices in California during June 2007 were: Laguna Beach, $1,700,000; Burlingame, $1,637,500; Los Altos, $1,635,000; Newport Beach, $1,615,000; Palos Verdes Estates, $1,542,000; Saratoga, $1,465,000; La Canada-Flintridge, $1,400,000; Mill Valley, $1,395,000; Manhattan Beach, $1,300,000; Hermosa Beach, $1,205,000.
. Statewide, the 10 cities and communities with the greatest median home price increases in June 2007 compared with the same period a year ago were: Menlo Park, 41.5 percent; Palos Verdes Estates, 25.9 percent; La Canada-Flintridge, 21.7 percent; Arcadia, 21.1 percent; Newport Beach, 20.1 percent; Santa Monica, 18.7 percent; Moorpark, 16.1 percent; Chino Hills, 12.6 percent; Saratoga, 11.9 percent; Los Angeles, 11.7 percent.
Leading the way...® in California real estate for more than 100 years, the CALIFORNIA ASSOCIATION OF REALTORS® (www.car.org ) is one of the largest state trade organizations in the United States, with more than 185,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles.
June 2007 Regional Sales and Price Activity*
Regional and Condo Sales Data Not Seasonally Adjusted
Median Price Percent Change in Price from Prior Month Percent Change in Price from Prior Year Percent Change in Sales from Prior Month Percent Change in Sales from Prior Year
Jun-07 May-07 Jun-06 May-07 Jun-06
Statewide
Calif. (sf) $594,260 0.2% 3.2% -1.4% -24.7%
Calif. (condo) $442,670 0.7% 2.9% 0.2% -19.9%
C.A.R. Region
Northern California $392,360 1.7% -8.0% -6.3% -15.0%
San Francisco Bay $842,600 -1.3% 5.1% -0.3% -21.4%
Santa Clara $865,000 0.8% 5.5% -1.5% -18.0%
*Based on closed escrow sales of single-family, detached homes only (no condos). Reported month-to-month changes in sales activity June overstate actual changes because of the small size of individual regional samples. Movements in sales prices should not be interpreted as measuring changes in the cost of a standard home. Prices are influenced by changes in cost and changes in the characteristics and size of homes actually sold.
sf = single-family, detached home

Median Prices By Region - Current Month vs. Year Ago
Jun-07 May-07 Jun-06
Statewide
Calif. (sf) $594,260 $592,780 r $575,850 r
Calif. (condo) $442,670 $439,603 r $430,130 r
C.A.R. Region
San Francisco Bay $842,600 $853,910 $801,820 r
Santa Clara $865,000 $858,000 $819,950
r - revised
Source: CALIFORNIA ASSOCIATION OF REALTORS®

Why You Should Work With An "A Realtor in a C Market"

I was talking with a fellow associate, Joe, today and I told him how it is easy to be an “A Realtor in an A Market” because an “A Market” requires very little skill, no mental discipline or any daily rituals.

However, the true test of an "A Realtor" is can you be an “A Realtor in a C Market”?

The market place is now revealing the importance of great skill level, strong mental discipline and committed habits in an agent. In the past, some agents who had little skill, no discipline and poor habits had high confidence because they were making money in spite of themselves.

Now when the market turns down, the confidence goes first because there is no skill to adjust to this new environment, a lack of mental toughness and no daily disciplines. They just don't know what to do.

I am not telling you this to bad rap any agent but to suggest my 31 years of experience may be an indicator of skill, mental discipline and a daily discipline that will work in your best interest. If your best interest is of a concern to you, know that I will give you the guidance you need. You can count on me...I will not abandon you.

All you need to do is call me 650-529-2409 or email me.

It has been my pleasure...please don't keep me a secret!