Happy New Year?
As we approach the end of 2009, things seem to be looking more promising in terms of the real estate industry. The California Association of Realtors just released a report with the following “Quick Facts”:
* Existing, single-family home sales increased 4.7 percent in November to a seasonally adjusted rate of 536,720 units on an annualized basis.
* The statewide median price of an existing single-family home increased 2.4 percent in November to $304,520 compared with October 2009.
* C.A.R.’s Unsold Inventory Index fell to 4.5 months in November, compared with 7.1 months in November 2008.
According to the C.A.R.’s President Steve Goddard: “First-time buyers continued to drive the market in November, as many opened escrow to take advantage of the federal tax credit prior to its original Nov. 30 expiration. The extension and expansion of the tax credit until April 30, 2010, along with low interest rates, should continue to positively impact the market in coming months. Read more
Brisbane’s Festival of the Stars!
Photo courtesy of Lee Panza
On Sunday, December 6th @ 5:30 p.m. there will be a wonderful event happening in the adorable little town of Brisbane, CA. It is called “Festival of the Stars”, and is called that because Brisbane is famous for the lit up stars that most citizens have on their homes. Although many people start lighting them at the very beginning of December, this evening is the official night when everyone turns them on. It is quite a sight and can be seen all the way from Highway 101. The stars, both large and small, are provided free to anyone who lives in town…all they need to do is add the lights. Read more
5 Advantages for Move-Up Buyers In This Market
Five reasons current home owners should consider upgrading to a new home.
1. Interest rates are at historic lows: Lower interest rates means you can now buy more home then you could have a year or two ago.
2. Prices have come down: Even if your current home may be worth less than the last peak in the market, the next home you are looking for will probably be as well. The percentage decrease will actually help you get more house when buying up to a larger home.
3. There are still a good amount of homes on the market right now, both new construction and existing, giving you lots of choices and negotiating power.
4. You can move in to your new home faster, as many builders either have completed homes in inventory or they can start working right away due to the production slowdown.
5. You may have outgrown your home, but its probably someone else’s ideal starter home. With the $8,000 tax credit just recently being extended and the new $6,500 tax credit for move up buyers, now is the time to market your home to first-time home buyers.
For more information about the tax credit please visit http://www.federalhousingtaxcredit.com/
This Real Estate Blog is by Adam Chinn
The First Time Home Buyer Tax Credit is Extended!
The $8,000 first time home buyer tax credit that was scheduled to be canceled as of November 30th has been extended, which is absolutely wonderful news for all of those potential home buyers who weren’t able to find their new homes before the deadline. The new credit will be in effect until April 30, 2010. Please note that home buyers will need to be in contract by that date, but will have up until July 1, 2010 to close the escrow (that’s when you actually own the home). And, the new credit is even better than the previous one for the following reasons:
…The income limits have been raised so that now more people will qualify for the credit. Previously, if you were a single person, you could only earn up to $75,000 and, as a married couple you could only earn $150,000. Now, single people will still qualify if they make up to $125,000 and married couples will be able to receive it if they make up to $225,000. And, those earning over these amounts may still qualify a credit, but for a lesser amount. Read more
Up, Down, or Sideways?
We are speaking of mortgage rates, which continue to move down. Bankrate’s latest survey had them averaging their lowest levels in over four months last week, with the 30-year fixed-rate mortgage averaging 5.25% and the 15-year fixed-rate mortgage averaging 4.64%. Given the recent qualms over unemployment, rates would seem likely to move down further.
And they could, but they could also move up. Last week, Dallas Federal Reserve President Richard Fisher said that the winding down of the Fed’s stimulative monetary policies needed to start as soon as the economy shows signs of sustained improvement. “When it comes time to tighten monetary policy, my colleagues and I will move with an alacrity that, if needed, will be equal in speed and intensity to that with which we pursued monetary accommodation,” Fisher said in a speech to the Texas Christian University Business Network of Dallas. Read more
San Bruno Coats For Kids 2009!
“Coats for Kids” in San Bruno is a wonderful community tradition coordinated by San Bruno Garbage and The City of San Bruno every year as the weather starts to get chilly!
You can help someone stay warm this winter by simply donating a clean, gently used coat at one of many drop-off locations in San Bruno!
Click here to see which drop-off location is nearest you!
I love helping at this event every year. It’s a great fun way to get to know the neighbors and give back a little to the community.
The coat giveaway day is Thursday, November 19th 4:00-7:00 pm at the Fireman’s Hall/ San Bruno Chamber of Commerce, 618 San Mateo Ave., San Bruno, Ca. All are welcome. Limit one coat per person. Children must be present to receive coat.
Market Trends
I have done research and compared the market last year in September 2008 to this year in September 2009. These numbers are for single family homes. Here are some of the results:
Daly City:
Inventory down 49%
Properties under contract up 12%
Months supply of inventory down 79%
South San Francisco:
Inventory down 60%
Properties under contract up 90%
Months supply of inventory down 88%
San Bruno:
Inventory down 60%
Properties under contract up 9%
Months supply of inventory down 66%
Millbrae:
Inventory down 34%
Properties under contract up 67%
Months supply of inventory down 69%
In all four cities the inventory is down while properties in contract are up. Meaning supply is low and demand is high. Competition for homes in these cities is high, but it is still a great time to buy. This also means that home owners considering selling their home may want to contact a Realtor to see what their home is worth and think about weather it makes sense for them to sell or move at this time. The market has definitely changed for the better and this is a great sign for things to come not only for the housing market, but for our economy as a whole.
This Real Estate Blog is by Adam Chinn
How HIGH do I go?
I was talking to a colleague today. She said she had a disappointing day yesterday. I asked her what had happened. She explained that her client made an offer on a property. Of course there were multiple offers and their offer was already, what my friend believes, over the market value. The seller which is a bank, or perhaps the listing agent counters the top 2 offers for their highest and best offer. My friend doesn’t want her client to buy this property for more than what it’s worth. But, on the other hand she doesn’t want her client to loose another house to multiple offers, either. She said that she would feel guilty no matter what the outcome. “I know the house will not appraise,” she said. My advice was that she explains everything to her clients and let them make a decision.
It seems like the inventory is low and some listing agents take advantage of the situation and list the properties below market value. This becomes very difficult for the buyers. How high should they offer? How can a regular buyer who is using a conventional loan compete with an investor who is buying properties all cash and waiving all inspections and financing contingencies? Read more
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