Archive for February, 2008
February 28, 2008
A little over a year ago, I moved back to the green pastures of Marin from the concrete jungle of Manhattan. After spending a handful of years if the city that never sleeps, I couldn’t wait to come back to glory of the bay. Better yet, my years away was worth the sacrifice. My husband and I were coming home in a much better financial position than when we had left 4+ years prior. Back then, amidst the rising prices, we never dreamed, let alone think or talk about the idea of being a homeowner in the bay area. It was clearly impossible given where we both were at in our lives and careers.
Fast foward to our homecoming. We returned with a ticket to join the homeowner country club. What a concept! We went to every single open house you can imagine in Marin. And like everywhere in the bay, we saw price reductions here and there… and got excited that our homecoming couldn’t have been timed perfectly.
So, why am I writing all this? Late last month, I saw a listing hit of a house we had looked at same time last year. At the time, the roughly $799,000 ask didn’t seem so bad. Heck, it was a price we could afford and since most Marin homes were in the million dollar mark - it seemed like a reasonable deal. It wasn’t a million bucks and something we could afford, so naturally we were thrilled. We liked it - but didn’t love it. In retrospect, this was a good thing. This Corte Madera house today is now asking $525,000 - a short sale by the most recent buyers who got in at $760,000.
The grand message is that this could have been us. I see how warped my own perception of value became from rising home prices, million dollar price tags and most importantly, the seduction, temptation and lure of finally being a bay area homeowner. We wanted so much to be in the club that we may have done the same thing as the current owners. After all, it was something within our range and relative to other homes out there, the asking price seemed sensible. It was just a year or so before, folks were willing to pay for anything they could get their hands on. And maybe we still had a bit of the madness. We didn’t want to miss the bus again.
We still aren’t homeowners yet in the bay due to a variety of reasons, but I know my weakness is a longing desire to having a place to call my own and really settle in. In my search for my Marin home, I’m an easy prey and need to check this emotional draw at the door… or I may just turn into another statistic.
February 27, 2008
We’ve gone from an all-out flood of newly listed homes on the Mid-Peninsula, cresting at 88, to a slight downhill surge to 62. I have the distinct feeling that the ups and the downs will continue to be a part of our life, so all we can do is hang on and enjoy the ride. Surfing through the new listings from February 11-24, I see that almost half of these newbies (29) are over the $1mil mark, with a cap at $2,499,000. The low end of homes starts at $449,000 with the following breakdown:
$4-500,000 3
$5-600,000 5
$6-700,000 5
$7-800,000 7
$8-900,000 7
$9-1,000,000 6
I think that there is a pretty even distribution of homes coming available, with maybe only 10 of those on the east side of El Camino, where we have seen an increase in listings probably due to short sales and foreclosures.
Here are the highlights of the week:
Most Expensive/Most Bedrooms
3872 Jefferson Avenue, Redwood City
6+/4+, sf unknown, $2,499,999
Least Expensive
679 Hurlingame Avenue, Redwood City
3/2, 1030 sf, $449,900
Largest Home
1029 Wilmington Way, Redwood City
5/4+. 3900 sf, $1,880,000
Smallest Home
58 Murray Court, Redwood City
2/1, 860 sf, $574,000, already reduced to $569,000
Strangest Price (high and low)
248 Club Drive, San Carlos
4/3, 2450 sf, $1,649,461
3324 Hoover Street, Redwood City
2/1, 1090 sf, $598,270
Editor’s Pick Belmont
1641 Robin Whipple Way, 2/1.5, 1090 sf, $829,000
This is a standard rancher with some lovely details, for a decent price. I’m a sucker for a black-and-white kitchen, even if it does have an electric or induction range. There are also built-ins in the living room, nice color scheme, and a yard for entertaining.
Editor’s Pick San Carlos
1915 Eucalyptus Avenue, 3/2, 1770 sf, $959,000
Well, yes, it’s another rancher, but that wall of windows in the family room (with wood beams and wood paneling) reminded me a bit of mid-mod architecture and I loved the airiness of it. Located in the desirable White Oaks neighborhood on a larger lot, it’s priced under a mil, so probably won’t last.
Editor’s Pick Redwood City (see photo above)
748 Oakview Way, 3/2, 1570 sf, $1,349,000
What’s not to like here? Two story, shingle-sided Craftsman-style home in the hills, updated kitchen and bath, great yard. I wanna cook and party at this house.
Photo of Ross Clarke-Jones at the 2008 Maverick’s Surf Comp, courtesy of Deborah Lattimore at Flickr.
February 27, 2008
Morgan Hill - once mostly farm land - is now home to many new developments and has become a dynamic community for those who really don’t want to live where they work but still rely on the valley for employment.
Many of the homes in Morgan Hill
have park-like landscaping, and modern energy saving features as they were built more recently than most of the housing in San Jose.
One beautiful home on Craigslist this week is located on 16550 Trail Drive at Barrett in the heart of the Jackson Meadows area. With five bedrooms, three baths, and over 2800 square feet, it is offered at $839,500. The photos show a wonderfully landscaped yard, and a spacious family room.
Another great choice is a four bedroom, two bath located in North Morgan Hill at 2505 
Palomino Court. It definitely has curb appeal and is offered at the reasonable price of $655,000. With 150s square feet, and a gorgeous back yard and kitchen, it is perfect for a family. Another plus is that it is located one block from the elementary school, on a cul-de-sac.
Morgan Hill is a great location, and newer work on highway 101 has made the commute more doable.
My friends who live there tell me that the secret is to leave for work very early in the morning, and leave work early to beat the traffic.
February 27, 2008
Overuse of adjectives seems to be de rigueur these days, causing alarm, preaching panic and generally depressing those who read such, dare I say, dreck. Case in point: “Homes in Bubble Regions Remain Wildly Overvalued.” Wildly? Really? This showed up in Yahoo Finance, where you might expect this sort of thing, but it turns out that they got the story from The Wall Street Journal that ran several weeks ago. Yes, incomes are out of line with housing prices, but given the huge drop in the market, they are still “wildly” out of line? What were they before? Mega-wildly? And they use SoCal as an example, a place where prices have fallen harder and faster than the Bay Area. (I have friends that have been looking to buy for 6 months, so have been following SoCal numbers.) I just wish that writers didn’t feel the need to be so dramatic about things, and so do readers. Apparently there was a bit of an outrage about the article and the author has defended himself in a follow-up article. He makes some sense, but then many writers are able to twist and turn facts and figures to support their words, so you have to take it all with a grain of salt…or not take it at all.
Then you have those who hedge their bets when they write. Lead on a story coming out of AP, appearing on SFGate: “House prices may still have a long way to fall.” The use of the word “may” gives the writer some leeway to be wrong. The fact is, everyone is hypothesizing, no one knows for sure, and wouldn’t it be fun if everyone wrote positive uplifting articles on the current market that kept people from feeling despair, losing precious sleep, and debating whether to fight or flee?
On a positive note, John Wasik writes about how to buy a home in today’s market and strategies you should employ. He talks about doing your homework on new developments, how to buy that vacation home, and reasons or places to hold off on. Check out his article “Homebuyer Patience Triumphs in a Waiting Game,” on Bloomberg.com.
Words of wisdom? Eric Janzen says, ” The bubble cycle has replaced the business cycle.” In his story in Harper’s Magazine titled “The Next Bubble: Priming the Markets for Tomorrow’s Big Crash,” he gives us a history lesson that is worth reading through. My favorite line in the story—”Deregulation had built the church, and seed money was needed to grow the flock”—used to describe the coming (and going) of the first wave of dot-com businesses. Some of this is over my head, but a good education, nonetheless.
And in the Why-Are-People-Surprised category, The Washington Post reports that “Homeowners are Losing Their Equity Lines.” When the value of your home decreases, your equity decreases, and therefore your ability to borrow from the equity will be affected. Banks cannot afford to bleed any more money than they already have. The loan-to-value ratio will have to be much higher than in the past to keep your equity line safe. Meanwhile, banks appear to be shutting off the flow of funds in areas where home prices have plummeted. Ah, equity lines, they have become the credit card for homeowners.
Recent Sweet Digs Posts:
FSBO in the City
What Do Agents and Kermit Have in Common?
Fraud Cases Rise in Santa Clara County - As Funding Goes Down
Mid-Peninsula Sales Report: Some Good News
February 27, 2008
Many homeowners take the route of selling a property themselves (FSBO = for sale by owner) in a strong upward market, but does it work as well in a stable or even downward market? These current sellers are giving it a shot in San Francisco.
1204 Egbert Ave $479k. This spacious 3/2 of 1855 sq ft is near Monster Park and last sold for $65k in 1995.
1242 38th Ave $788k. A 2/1 with a 2/1 in-law in the Outer Sunset, this property last changed hands in 1971 for a paltry $27k.
Pierce @ Capra $1.05M. This 2/1.25 (I love it when people use 1/4 increments for baths) upscale condo in the Marina is part of a lucky 3-unit building that recently converted to condominiums. Apparently, the owner boasts, it’s “priced under market.”
36th Ave @ Noriega $1.288M. This large 2700 sq ft 5/3 home in the Central Sunset has been extensively remodeled with permits.
While I believe an individual property and its asking price has more to do with its chance of selling than whether a listing agent is involved, it can be harder to bring in the buyers in a slowing market such as the one we are facing. Time will tell if these homeowners will get what they want, and will actually save money doing so.
February 26, 2008
Kermit is already green and agents are turning green. It’s the latest hip thing to do. From driving a hybrid, getting a building LEED certified or installing solar panels, everyone is making the effort to live a more sustainable life.
As homes and the materials that go into making a home begin to offer more green features, realtors (and/or agents, etc… as Susan distinguished in her recent blog) are getting on the green band wagon.
The WSJ recently highlighted the latest trend in the real estate profession, where agents are “…promoting their knowledge of eco-friendly and energy-efficient properties…” They get smart by taking classes on “…things like geo-thermal heat pumps and how to help home buyers qualify for grants and tax credits for energy-saving improvements.” It seems like agents can become certified as a EcoBroker, by an organization of the same name that offers courses on designs, products and understanding tax rebates.
I’m all for being green and creating a home that encourages sustainability. But, do I or anyone else need a specialized agent for this? As the article mentions, “… some housing experts question whether some agents are using a cursory knowledge of green building as a marketing ploy in a tough market.” Hmmm… I definitely see both sides of the story. Your take?
February 26, 2008
According to the San Jose Mercury News, the Santa Clara County DA’s office opened 125 new complaints into mortgage scams and fraud last year - four times as many as in 2006. This surge in complaints comes right at a time when funding is the most scarce for handling these cases. Also according to the Mercury News, one prosecutor has cleverly named 2007 ”the year of lending dangerously”.
Michael Fitzsimmons and James B Sibely - Deputy DAs
Most real estate fraud cases are highly complex and difficult to prosecute, as the perpetrators are very shrewd white collar criminals. They can range from anything from identity fraud to appraisal misrepresentation to illegal and misleading “foreclosure rescue scams”.
One of the good guys is Deputy District Attorney Michael Fitzsimmons; one of only two full time lawyers assigned to real estate fraud. Funding for the fight against real estate fraud currently comes from a $2 portion of a county real estate document recording fee. Fitzsimmons has drafted legistlature that would double this amount to $4. Even this may not be enough to allow adequate funding for handling the increased case load as fewer homes are being sold - hence fewer documents are being recorded.
In an attempt to educate homeowners in foreclosure about mortgage fraud, the DA’s office has drafted this letter, which is being sent when a NOD (notice-of-default) is filed. Hopefully, it will help make the public more aware that not everyone who offers to help is truly a friend, and sometimes, the mess they are in has an insidious root cause.
I also hope that the state and local governments will wake up to the need for increased funding for real estate fraud from other sources - as the continuation of our current crisis will end up depleting much needed tax revenues for ALL government departments unless quick and decisive action is taken. Stopping the bottom feeders from prospering on the backs of those less fortunate is one step in the right direction!
Photo Source = The San Jose Mercury News
February 26, 2008
While there were only 22 Mid-Peninsula SFR sales in the two-week period of February 11-24th (compared to 19 the prior two weeks), the news on those sales is pretty heartening:
- 60% were sold at or above their asking price (9 above, 5 at asking)
- 13 of the homes were sold in less than 30 days (with only 3 over 90 days)
- Average days on market was 35
- Only 2 of the homes appeared to have multiple reductions before selling
The price range during this period was between $615,000 and $1,970,000, with 12 of the homes selling for over the $1mil mark. This leads me to surmise that the low-end homes that are on short sale or foreclosure are sitting on the market, dropping, dropping, dropping in price. There just does not seem to be any takers for those eastside Redwood City homes that are stacking up, no matter their condition or price.
I’d also like to point out that the listing at 812 Cordilleras Avenue in San Carlos, which caused a bit of a pissing match on this blog due to the alleged number of overbids during its first week of listing, has sold. Contrary to many skeptics, the home did indeed have 10 overbids and finally sold for $900,000 (asking price of $849,000) after only 5 days on the market.
The listing of sales is after the jump….
Read the rest of this entry »
February 26, 2008
I think that today’s Daily Stat Leader has set a new record for the most price reductions in the shortest amount of time. 1404 Emeric Avenue in San Pablo started out on the market on October 15th of 2007 at $299,000. Now, just 4 months later, it has gone through 1 2 3 4 5 6 7, no 8, price reductions and now sits at $129,000. (To save you from hunting down the calculator, that is a 57% price reduction, the biggest we’ve seen.) Last purchased in 2003 for $258,000, it must be a foreclosure or short sale. It’s not the cheapest house in the neighborhood, but almost.
The house sits of a 3,375 square foot lot, which is below standard but typical for the neighborhood. Also on the small side is the square footage of the house—823—although again, this is typical of the area. What is not so typical is the color scheme. The home is painted a creamy white with turquoise trim, including the columns on the porch, and…get this…the grout in between the brick fence that surrounds the front yard. Definitely a bad combo. I’m wondering if this got so many hits because it was the butt of a joke on some blog somewhere? Academy Award winner for Most Hideous Paint?
Recent Sweet Digs Posts:
Walk the Length of Your Closet — It Counts As Aerobics, Apparently
It’s a Small World at Hamilton
Realtor vs. realtor vs. agent
February 26, 2008
Living in Berkeley as I do, the opportunity to write about condominiums doesn’t come around very often. And I will admit that the first thing that drew me to Vue46, a forthcoming condo development of “London lofts”,”Boston townhouses” and “New York flats” in Emeryville, were the photographs of a rather fabulous “homespace” featured in the developer’s recent ads (above).
(You’ll notice nearly all the photos feature that “GE Profile counter-depth refrigerator with stainless steel finish” — somebody obviously loves that fridge.)
However, what led me to explore further was finding out that some of these swish-looking homes in the former Aluminum Cooking Utensils of America building have been earmarked for people with low incomes. Twelve of the units, in fact, will be assigned to those on “very low” to “moderate” incomes. What that means is that, thanks to the participation of the City of Emeryville, a 1,161 sq ft 2/2 condo will be available to someone for just $283,000.
Much as I applaud this decision I can’t help being irritated by the whole marketing schmarketing effort behind this project. They are describing the development as “Collosalocity” for instance, apparently a made-up word which means that “walking from one end of your closet to the other counts as aerobics”. Is it me or are they trying too hard?
Anyway, the location is on 46th Street near Adeline (see map below). Model homes are now open and I would be very interested to hear from anyone who has had a chance to see them or has the inside scoop.
