Increased demand from first-time homebuyers motivted to purchase a home before the December 1 2009 deadline to qualify for an $8,000 federal income tax credit, and a tighter inventory of entry-level bank-owned properties on the market pushed home prices higher in Alameda county during the fourth quarter of 2009.
The median sales price of a single-family detached home sold during the fourth quarter rose 7 percent from $385,268 in the third quarter to $415,882 - 8 percent higher thant the fourth quarter 2008 of $385,496. The median sales price climbed on a qurter-to-quarter basis in nine of Alameda's 15 markets, and rose year-over-year in seven communities. Oakland showed signs of improvements with a 26 percent year-over-year median price increase.
With fewer bank-owned homes on the market, home sales were down 14 percent in Alameda county from 3,001 homes sold in the third quarter to 2,583 homes sold in the fourth quarter, 2 percent below last year's fourth-quarter total of 2,639.
The $8,000 federal income tax credit for first-time buyers has been extended for contracts entered into before April 30, 2010. A tax credit of $6,500 for current homeoqners who want to sell and move up buy the same date. That's good news for buyers and sellers.
This information is made available to those of us by the research division of Prucential California Realty based on analysis of Multiple Listing Service (MLS) data.
Sunday, February 21, 2010
Tuesday, December 23, 2008
Residential Real Estate Brokers' Optimism Grows
Residential Brokers’
Optimism Grows
Despite data showing both strength
and weakness, brokers say worst
may be over
By G. M. Filisko
The Registry Real Estate journal (October 2008)
The more things change, the more they stay the same. That’s true of the Bay Area residential market as it continues to be a series of contradictions. As positive indicators collide with weaker signals, brokers are becoming more optimistic that a turnaround isn’t far away. “Inventory and days on market in San Francisco have dropped,” says James Nunemacher, CEO of Vanguard Properties in San Francisco. “For instance, parts of SOMA and South Beach—which had the largest percentage of new construction—finally have diminishing inventory. Some sellers have become more realistic about pricing, and others have moved their properties off the market and rented them out because rental rates are doing well. “At one point in Noe Valley,” Nunemacher adds, “we had more than 20 homes above $2 million for sale and only a handful in escrow.Some of those have rented or sold, and the inventory has dropped.”Overall inventory in San Francisco dropped from 2,367 to 2,341 properties (roughly 1 percent) between June and July 2008, according to Vanguard. However, the number of properties under contract also dropped from 501 to 448 (approximately 10 percent) during that time.
And there’s additional conflicting data. The median price for sold properties increased from $795,000 to $802,000 from June to July 2008, which is just shy of 1 percent. That’s also a gain from July 2007’s median sales price of $800,000. However, the median sales price for properties under contract during that time dropped from $789,000 to $749,000 or 5 percent.
Investors are fueling some sales. “We’re seeing a lot more cash and equity in transactions,”says Nunemacher. “More than 20 percent of our sales have been all cash or with large chunks of cash. It’s investors who are family members, especially parents, pulling money from other types of investments because they view real estate as very favorably priced.”Though Nunemacher doesn’t know exactly when the next San Francisco boom will arrive, he believes it’s not far away. “San Francisco has endured very, very well this year and most people—bankers, investors, developers and buyers—feel we’ve hit and are bouncing on the bottom,” he added. “With our limited inventory, the political pressure against new construction, and the slowing of the development process through environmental laws, real estate will take a tremendous jump in value. I don’t know when it will be, but we’ll get there.”
The East Bay market is like the Bay Area’s weather, according to Roy Benford, an agent with RE/MAX in Motion in Castro Valley. “We have microclimates, with pockets where activity is
good, and areas where properties have lost a lot of value and there are still more dominoes to fall.”Overall data show an improving market. “In Alameda and Contra Costa counties, inventory dropped 12 percent from June-July 2007 to June-July 2008,” says Benford. Average sales prices have increased in six East Bay cities—Alameda, Fremont, Hayward, Lafayette, Livermore and Walnut Creek—from June 2008 to July 2008, according to Benford.
Jumping significantly were Alameda (from $618,900 to $672,000), Fremont (from $629,255 to $702,896) and Lafayette (from $1.1 million to $1.2 million). Why the boom? “Banks are stepping up foreclosure activity,” says Benford. “They’re selling properties at more realistic prices.”
Nine cities, however, have seen drops. They include Antioch, Concord, Danville, Oakland, Orinda, Pittsburg, Richmond, San Leandro and San Ramon. The biggest losers? “In Oakland, we saw
the average sales price decline from $485,800 to $449,600 from June to July 2008,” says Benford. “Antioch, which has been hit really hard by foreclosures, dropped from $274,300 to $246,400, and Orinda fell from $1.5 million to $1.2 million.”
But there’s a silver lining. “There’s opportunity amidst this turmoil,” says Benford. “Two years ago, affordability in the Bay Area was down to 15 percent. Now, about 30 percent of people
(in the Bay Area) can afford to buy a home.”
“More than 20 percent of our sales have been all cash or with large chunks of cash down, and we’ve rarely seen that much cash enter our market. It’s investors who are family members,
especially parents, pulling money from other types of investments because they view real estate as very favorably priced.” James Nunemacher, CEO, Vanguard Properties, San Francisco
In the South Bay, increased buyer activity is generating multiple offers. “I’ve seen a lot more buyers in the market,” says Lynda Williamson, an agent with Premier Peninsula Homes in
Santa Cruz. “I’ve also seen multiple offers in price ranges from $500,000-$2 million. In the beginning of 2008, we’d see multiple offers on short sales and distressed properties. But I’ve seen more families looking to trade up. It’s encouraging to see more buyers of both types of properties.” More buyers, however, means more opportunities for lenders to stop sales in their tracks. “Buyers have to do more paperwork, and lenders are much more cautious, but I have a mortgage lending source who’s provided a loan for every buyer I’ve sent its way,” says Williamson. “I’ve also been careful to work only with people who have credit scores of 725 and above. When they haven’t had that, I’ve suggested they focus on paying down debt or building savings for a down payment.”
In the Peninsula, Alex Wilkas, an agent at Prudential California Realty in Burlingame, is also working through lending issues. “That’s our biggest handicap—getting lenders to approve even good, solid buyers,” he says. “We haven’t lost any sales, but we don’t even show a property unless buyers have a preapproval in hand.” Financing aside, Wilkas is seeing increased traffic at open houses and multiple offers on homes in the $800,000-$1.2 million range. Among the strongest markets in the Peninsula is Foster City, in which properly priced homes sell in 60 days or less, according to Wilkas. Neighborhoods in San Mateo—San Mateo Park and Baywood—are also strong performers. Burlingame is also healthy, but its condo market “may be stalling a little bit,” says Wilkas.
“However, Daly City is extremely depressed,” Wilkas added, “and in San Bruno, the condo market is pretty bad. In some complexes with a lot of units for sale, probably 70-80 percent of
what’s available is a short sale or bank-owned property.” Wilkas and his business-partner wife, Lenore, have four crystal balls and eight magic wands in their office. “When people ask
us to predict the market, we refer to those,” he says. “We have a general feeling that we may have seen the worst in the Peninsula. I think we’re going to stabilize, lay down and plateau for a while and then nudge upward in spring 2009.”
Optimism Grows
Despite data showing both strength
and weakness, brokers say worst
may be over
By G. M. Filisko
The Registry Real Estate journal (October 2008)
The more things change, the more they stay the same. That’s true of the Bay Area residential market as it continues to be a series of contradictions. As positive indicators collide with weaker signals, brokers are becoming more optimistic that a turnaround isn’t far away. “Inventory and days on market in San Francisco have dropped,” says James Nunemacher, CEO of Vanguard Properties in San Francisco. “For instance, parts of SOMA and South Beach—which had the largest percentage of new construction—finally have diminishing inventory. Some sellers have become more realistic about pricing, and others have moved their properties off the market and rented them out because rental rates are doing well. “At one point in Noe Valley,” Nunemacher adds, “we had more than 20 homes above $2 million for sale and only a handful in escrow.Some of those have rented or sold, and the inventory has dropped.”Overall inventory in San Francisco dropped from 2,367 to 2,341 properties (roughly 1 percent) between June and July 2008, according to Vanguard. However, the number of properties under contract also dropped from 501 to 448 (approximately 10 percent) during that time.
And there’s additional conflicting data. The median price for sold properties increased from $795,000 to $802,000 from June to July 2008, which is just shy of 1 percent. That’s also a gain from July 2007’s median sales price of $800,000. However, the median sales price for properties under contract during that time dropped from $789,000 to $749,000 or 5 percent.
Investors are fueling some sales. “We’re seeing a lot more cash and equity in transactions,”says Nunemacher. “More than 20 percent of our sales have been all cash or with large chunks of cash. It’s investors who are family members, especially parents, pulling money from other types of investments because they view real estate as very favorably priced.”Though Nunemacher doesn’t know exactly when the next San Francisco boom will arrive, he believes it’s not far away. “San Francisco has endured very, very well this year and most people—bankers, investors, developers and buyers—feel we’ve hit and are bouncing on the bottom,” he added. “With our limited inventory, the political pressure against new construction, and the slowing of the development process through environmental laws, real estate will take a tremendous jump in value. I don’t know when it will be, but we’ll get there.”
The East Bay market is like the Bay Area’s weather, according to Roy Benford, an agent with RE/MAX in Motion in Castro Valley. “We have microclimates, with pockets where activity is
good, and areas where properties have lost a lot of value and there are still more dominoes to fall.”Overall data show an improving market. “In Alameda and Contra Costa counties, inventory dropped 12 percent from June-July 2007 to June-July 2008,” says Benford. Average sales prices have increased in six East Bay cities—Alameda, Fremont, Hayward, Lafayette, Livermore and Walnut Creek—from June 2008 to July 2008, according to Benford.
Jumping significantly were Alameda (from $618,900 to $672,000), Fremont (from $629,255 to $702,896) and Lafayette (from $1.1 million to $1.2 million). Why the boom? “Banks are stepping up foreclosure activity,” says Benford. “They’re selling properties at more realistic prices.”
Nine cities, however, have seen drops. They include Antioch, Concord, Danville, Oakland, Orinda, Pittsburg, Richmond, San Leandro and San Ramon. The biggest losers? “In Oakland, we saw
the average sales price decline from $485,800 to $449,600 from June to July 2008,” says Benford. “Antioch, which has been hit really hard by foreclosures, dropped from $274,300 to $246,400, and Orinda fell from $1.5 million to $1.2 million.”
But there’s a silver lining. “There’s opportunity amidst this turmoil,” says Benford. “Two years ago, affordability in the Bay Area was down to 15 percent. Now, about 30 percent of people
(in the Bay Area) can afford to buy a home.”
“More than 20 percent of our sales have been all cash or with large chunks of cash down, and we’ve rarely seen that much cash enter our market. It’s investors who are family members,
especially parents, pulling money from other types of investments because they view real estate as very favorably priced.” James Nunemacher, CEO, Vanguard Properties, San Francisco
In the South Bay, increased buyer activity is generating multiple offers. “I’ve seen a lot more buyers in the market,” says Lynda Williamson, an agent with Premier Peninsula Homes in
Santa Cruz. “I’ve also seen multiple offers in price ranges from $500,000-$2 million. In the beginning of 2008, we’d see multiple offers on short sales and distressed properties. But I’ve seen more families looking to trade up. It’s encouraging to see more buyers of both types of properties.” More buyers, however, means more opportunities for lenders to stop sales in their tracks. “Buyers have to do more paperwork, and lenders are much more cautious, but I have a mortgage lending source who’s provided a loan for every buyer I’ve sent its way,” says Williamson. “I’ve also been careful to work only with people who have credit scores of 725 and above. When they haven’t had that, I’ve suggested they focus on paying down debt or building savings for a down payment.”
In the Peninsula, Alex Wilkas, an agent at Prudential California Realty in Burlingame, is also working through lending issues. “That’s our biggest handicap—getting lenders to approve even good, solid buyers,” he says. “We haven’t lost any sales, but we don’t even show a property unless buyers have a preapproval in hand.” Financing aside, Wilkas is seeing increased traffic at open houses and multiple offers on homes in the $800,000-$1.2 million range. Among the strongest markets in the Peninsula is Foster City, in which properly priced homes sell in 60 days or less, according to Wilkas. Neighborhoods in San Mateo—San Mateo Park and Baywood—are also strong performers. Burlingame is also healthy, but its condo market “may be stalling a little bit,” says Wilkas.
“However, Daly City is extremely depressed,” Wilkas added, “and in San Bruno, the condo market is pretty bad. In some complexes with a lot of units for sale, probably 70-80 percent of
what’s available is a short sale or bank-owned property.” Wilkas and his business-partner wife, Lenore, have four crystal balls and eight magic wands in their office. “When people ask
us to predict the market, we refer to those,” he says. “We have a general feeling that we may have seen the worst in the Peninsula. I think we’re going to stabilize, lay down and plateau for a while and then nudge upward in spring 2009.”
Wednesday, December 17, 2008
100% Financing Available Through USDA Loans
Parkside Condos is a new development in Pflugerville, Texas just outside north Austin's city limit. Two and three bedroom condos start at $130,000 in this 144-unit project. D. R Horton Inc, the nations largest home builder is offering to pay closing costs, according to a Wall Street Journal article. And get this, 100% financing is available when the buyer uses a loan from the U. S. Department of Agriculture. That's right, USDA.
The Rural Development Guarantee Loan program was created in 1991 to increase home ownership in scarcely populated areas. The department guaranteed $7 billion in loans in 2008, double the amount in 2007. The Federal Housing Administration (FHA) ,by comparison, guaranteed $107 billion during the same period. Buyers who qualify should act quickly because more and more buyers will be asking "Where's the beef??"
There are eligibility requirements. The buyer's income cannot exceed 115% of the county median income, and the population of the area generally must be around 25,000. Demand for these loans is growing rapidly... Maybe we could all move to the outskirts of town! ...
The Rural Development Guarantee Loan program was created in 1991 to increase home ownership in scarcely populated areas. The department guaranteed $7 billion in loans in 2008, double the amount in 2007. The Federal Housing Administration (FHA) ,by comparison, guaranteed $107 billion during the same period. Buyers who qualify should act quickly because more and more buyers will be asking "Where's the beef??"
There are eligibility requirements. The buyer's income cannot exceed 115% of the county median income, and the population of the area generally must be around 25,000. Demand for these loans is growing rapidly... Maybe we could all move to the outskirts of town! ...
Saturday, December 13, 2008
Prime Investment Opportunities in Affordable, Pristine, Wounderland
What your real estate dollar can buy right now!
This month and next we’re taking you to Mexico, one of Latin America’s largest and most diverse countries—and International Living’s #1 retirement destination for 2007. In this issue we cover Mexico’s Yucatán Peninsula. It’s generated lots of buzz the last few years, thanks to the allure of the rapidly developing Riviera Maya, along the Peninsula’s Caribbean coast, and to Cancún, arguably one of the world’s most successful made-from-scratch resort destinations.
Look up Honduras on the Internet and you'll find: a) stories about Hondurans being deported from the U.S., b) crime and poverty statistics, and c) heart-warming tales of volunteer trips there. You might think, "Who'd want to go to Honduras?" Ah, insiders can tell you there's gold in them there hills…so to speak.
Danger, Will Robinson. Think of Colombia and you probably think of drug lords, kidnappings, and ruthless violence, right? But if Colombia deserves this reputation, why is it being written up in the pages of the New York Times and USA Today as a “must-see” tourist destination? We sent Lee Harrison there to find out.
This month we take you to Costa Rica, Central America’s original eco-destination. Costa Rica fell somewhat out of favor in recent years due to its own success and what came with it—rising prices. But today Costa Rica is back in favor with a vengeance. Prices have risen in nearby countries...like Nicaragua and Panama?and now, with a leveled playing field, buyers are taking renewed interest in Costa Rica. And why not? There is much to like about Costa Rica, and new infrastructure developments are turning the spotlight on areas that were once difficult to reach.
In this issue, we take you to what is locally referred to as “the interior,” the Panama countryside where people are kinder and life is simple…and everyone is tempted to stay. We take a fresh look at Boquete, which is already popular with the expat crowd, and travel to the Azuero Peninsula, which has long been a well-kept secret. We go west from Panama City on the Caribbean side to Bocas del Toro, a place in Panama we love…but we advise you to approach with caution. We also take you to Penonome—which may remain a well-kept secret for some time to come.
It’s on everyone’s lips…Panama. If you’re in tune with Latin America’s hottest relocation destinations, you’ve heard many things about this Central American isthmus nation. In this issue, your Latin America Insider editors endeavor to give you the whole truth and nothing but the truth about Panama City. Can you handle it?
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About Me
- Roy
- Experienced real estate agent with a proven track record of helping clients buy and sell property, relocate, and build wealth. CEO/Owner of a property management company. Writer, Social Justice Advocate, Red Cross volunteer, Family man, Christian.
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