Archive for the ‘General’ Category
November 20, 2009
Let’s take at look at some October numbers for single-family houses and condos that sold in the Bay Area and see how they compare to a year ago.
San Francisco County
- 529 homes sold in October
- The median sales price was $690,000, down from $699,000 in October 2008
San Mateo County
- 294 homes sold (through October 20th)
- The median sales price was $580,000, down from $640,000 in October 2008
Santa Clara County
- 1,845 homes sold in October
- The median sales price was $495,000, up from $489,000 in October 2008
Alameda County
- 1,385 homes sold in October
- The median sales price was $371,000, down from $373,500 in October 2008
Contra Costa County
- 1,613 homes sold in October
- The median sales price was $275,000, down from $281,250 in October 2008
Marin County
- 245 homes sold in October
- The median sales price was $648,000, up from $599,750 in October 2008
We got these numbers from DQNews.
Dig Deeper Into the Trends
These numbers are for county-level trends in the Bay Area. To see what’s happening in your neighborhood, check out our stats & trends pages.
November 6, 2009
Earlier today, President Obama signed new legislation extending the deadline for the home buyer tax credit into 2010 and expanding it to include current home owners who are looking to buy a primary residence.
The Basic Requirements
You qualify for the tax credit if the:
- Home you’re buying will be your primary residence
- Purchase price isn’t more than $800,000
This credit is not a loan; it’s yours, but keep in mind you have to live in your new home for three years. If you sell the home in less than three years, you’ll have to pay back the money.
What’s Changed?
With the new legislation, buyers have more time to find a home and more buyers are eligible for the tax credit:
- New deadline: To qualify, you need to be in contract with a seller by April 30th & close on the home by June 30th (The previous deadline was November 30, 2009).
- Not just for first-time buyers anymore: Home buyers who’ve owned and occupied a home for at least five consecutive years during the past eight years are eligible for a credit up to $6,500.
- Increased income limits: Individuals making less than $125,000 and couples making less than $225,000 are eligible (The limits used to be $75K & $150K).
First-time buyers are eligible for a credit up to $8,000 on homes purchased between January 1, 2009 and June 30, 2010. Qualified homeowners can a credit up to $6,500 on homes purchased between November 7, 2009 and June 30, 2010.
Bonus Link
You can check out the full text of the bill. Scroll about halfway down to sections 11 & 12:
- Sec. 11. Extension and Modification of First-Time Homebuyer Tax Credit.
- Sec. 12. Provisions to Enhance the Administration of the First-Time Homebuyer Tax Credit.
November 5, 2009
This is the first post by Brad Le, one of our Silicon Valley agents. Brad recently joined Redfin and is a lifelong resident of the Bay Area who’s been helping people buy and sell homes for six years.
During this time of the year, we generally see a decline in home sales with a dramatic dip as we get closer to the holidays. This year has been different as things actually picked up as the summer ended.
In the Bay Area, sales of existing homes in September rose 8.4% from September 2008. The Peninsula and South Bay led the way with the largest increases in homes sold from last year:
- 35% increase in San Mateo County
- 19% in Santa Clara County
- 19% in Alameda County
Reasons for the Increase in Home-Buyer Activity
There are a few reasons why the real estate market has remained strong well into the fall:
- Amazingly low interest rates. Most the buyers that I’m working with cite this as the #1 reason (followed by lower homes price) why they’re looking to buy now. Although we’ve seen a 2-week spike in mortgage rates, they are still near all time lows. You can find great info on mortgage rates at freddiemac.com.
- Lower home prices. While many of the lower end sales tend to be driven by short sales and REOs, we’re seeing a lot of well priced normal sales as well. Believe it or not, there are actually a lot of sellers that have lived in their home for 10, 20 or even 30+ years and are now cashing out their equity and buying in areas that they probably couldn’t have afforded a few years ago.
- The Fed’s $8,000 first-time home buyer tax credit. Although Congress has extended the credit, I think this is less of a driving force in the Bay Area where many home buyers do not qualify for the credit since income levels here tend to be higher than the limits imposed by the program.
- Strong local economy. Yes, I know companies are still laying people off, the country is in two wars and California has a major budget crisis. But, people are spending money in stores and on homes. Multiple offers are not just on bank owned homes, but we’re seeing that across the board for homes in San Jose, Mountain View, Palo Alto and all over the Bay Area. And have you seen Google’s and Apple’s recent earnings reports?
I expect things to slow down a bit as we approach the winter holidays, but based on the latest numbers, it will definitely be a busier holiday home-buying season this year compared to last year’s.
Tips for Home Buyers
If you’re in the market right now, here are some things to keep in mind:
- Get your lender lined up before writing an offer. I’ve had to request a lot of loan contingency extensions because the appraisers and lenders are so busy right now. By shopping for a lender before writing an offer instead, you’ll make the closing process smoother and more efficient. Ideally, your lender will have the purchase contract in their hands as soon as the offer is accepted.
- Review any disclosures upfront and have them signed with the offer. Sellers are looking for top dollar, but they also want a buyer who knows what they’re getting into by researching the home.
- Close in 30 days. In most situations, the norm for any offer is 14 days for the contingencies (property contingency can be 10) and a 30-day close. Try not to deviate from this too much unless it’s absolutely necessary.
- Write a cover letter with your offer. It personalizes the offer and can help seal the deal! I recommend this even if it’s not a multiple offer situation.
Do you have any tips for buyers?
October 28, 2009
Let’s take at look at some September numbers for single-family houses and condos that sold in the Bay Area and see how they compare to a year ago.
San Francisco County
- 535 homes sold in September
- The median sales price was $662,000, down from $700,000 in September 2008
San Mateo County
- 499 homes sold in September
- The median sales price was $570,000, down from $639,500 in September 2008
Santa Clara County
- 1,693 homes sold in September
- The median sales price was $450,000, down from $521,250 in September 2008
Alameda County
- 1,555 homes sold in September
- The median sales price was $357,000, down from $385,000 in September 2008
Contra Costa County
- 1,525 homes sold in September
- The median sales price was $259,500, down from $300,000 in September 2008
Marin County
- 208 homes sold in September
- The median sales price was $635,500, down from $692,000 in September 2008
We got these numbers from DQNews.
Dig Deeper Into the Trends
These numbers are for county-level trends in the Bay Area. To see what’s happening in your neighborhood, check out our stats & trends pages.
October 12, 2009
Great news for folks in the Napa Valley: Redfin just partnered with three local agents to help you buy or sell homes. In areas beyond the reach of Redfin agents in the Bay Area, Redfin partners with experienced, local agents whom we have carefully chosen to uphold our standards of outstanding customer service, transparency, and better value.
If you buy or sell a home with a Redfin partner, at closing he or she will provide you with a credit equal to 15% of the gross buyer’s-agent commission, usually worth $1,000 – $2,000.
Check out our coverage area below.
Napa Valley Service Region
Meet Our Napa Valley Agents
We put our partner agent applicants through the ringer to ensure that you’ll get great service:
- Interviewed in-person by a Redfin market manager
- Completed at least 15 transactions in your area and 5 in the last 12 months
- Gave us email addresses to survey the clients they represented in the last 18 months
- Agreed to survey every new client and publish every review
- Paid based on customer satisfaction; removed from the program for bad reviews
Apply to be a Redfin Partner
Are you a real estate agent with a commitment to customer service and transparency? We’d love to meet you. Become a Redfin partner.
September 23, 2009
Let’s take at look at some August numbers for single-family houses and condos that sold in the Bay Area and see how they compare to a year ago.
San Francisco
- 514 homes sold, down from 529 in August 2008
- The median sales price was $635,000, down from $725,000 in August 2008
San Mateo County
- 606 homes sold, up from 560 in August 2008
- The median sales price was $559,000, down from $632,000 in August 2008
Santa Clara County
- 1,736 homes sold, up from 1,648 in August 2008
- The median sales price was $451,000, down from $555,500 in August 2008
Alameda County
- 1,538 homes sold, up from 1,271 in August 2008
- The median sales price was $340,000, down from $440,000 in August 2008
Contra Costa County
- 1,587 homes sold, down from 1,733 in August 2008
- The median sales price was $261,500, down from $330,000 in August 2008
Marin County
- 235 homes sold, down from 247 in August 2008
- The median sales price was $713,000, up from $675,000 in August 2008
We got these numbers from DQNews.
Dig Deeper Into the Trends
These numbers are for county-level trends in the Bay Area. To see what’s happening in your neighborhood, check out our stats & trends pages.
What trends did you see in August?
September 16, 2009
In August, our Bay Area agents presented 89 bids on homes for sales and 62 of the offers, or 70%, were on homes with at least one other bid, up from 62% in July. For Jim Holt, our agent on the Peninsula, the percentage is even higher: 90% of the offers (19 out of the 21) he presented were on homes with multiple offers:
August was really busy and competitive. Homes were getting lots of offers and selling for more than expected. Right now, we’re seeing a lot of buyer activity at a time when things usually slow down: we still have a lot of buyers touring homes and making offers.
Two Extreme Examples From The Peninsula
One of Jim’s clients has bid on four homes listed around $600,000 all with multiple offers in the last four weeks. He hasn’t gone under contract with any of them and all of them sold for more than list price. One house, listed around $530,000, received close to 20 offers and sold for $650,000.
Another of Jim’s clients recently bid on a $800,000 home in Silicon Valley. The listing agent told Jim there were 24 offers and the home sold for way more than she was expecting.
3 Tips For Buyers
Jim has three tips for buyers looking on the Peninsula:
- Determine your maximum price: Know how high you can go before you bid so you don’t have to figure this out during negotiations
- Know what’s for sale: Be ready to make an offer as soon as you see something you like
- Lead with your best offer: Try to put least 20% down and have a quick closing period
For more numbers, download the spreadsheet with the data on what happened in August.
Where are you seeing homes with multiple offers?
September 8, 2009
The federal government is offering first-time home-buyers a tax credit of 10% of a home’s sales price up to $8,000. To qualify, you must close on a home by November 30th; if you close on December 1st, you’re out of luck.
If you’re a first-time buyer in the Bay Area, you have a month left to find a home, make an offer and negotiate terms if you hope to close in time to get the $8,000 tax credit.
Close By November 13th
In a normal month, about 20% of closings slip from the last week of a month to the next. This number will almost certainly be higher in November due to the expected rush of buyers trying to get the tax credit and because November 30th falls on the Monday after Thanksgiving.
If you’re hoping to get the tax credit, you want to make sure you’ve closed before the week of Thanksgiving because it’s not a full work week:
- Wednesday, November 25th: A furlough day in Contra Costa County, the county offices will be closed.
- Thursday, November 26th: Turkey day. A day to give thanks and watch the Detroit Lions go for six Thanksgiving Day losses in a row.
- Friday , November 27th: San Francisco, San Mateo, Santa Clara, Alameda (.pdf), Contra Costa & Marin county offices are closed.
- Saturday & Sunday, November 28th & 29th: The banks aren’t open so you can’t close.
- Monday, November 30th: The last day to close and qualify for the first-time buyer tax credit. It’s going to be a goat rodeo.
To give yourself the best chance of getting the tax credit, plan on closing by November 13th. If you run into any problems during closing, you’ll have more than a week to work things out and still qualify for the tax credit.
Get An Offer Accepted By October 9th
Right now, it’s taking our Bay Area clients an average of 35 days to close once they reach initial agreement on terms. It’s taking 57 days for clients who purchased their homes with FHA loans. This means if you want to close by November 13th, you need to get an offer accepted by October 9th if you have a conventional loan or September 17th if you have a FHA loan.
For more information, check out the Home Buyer Tax Credit FAQ from the IRS and get all the details about the tax credit from the agency giving the credit. Also, check out the report that this program may be extended.
Find A Home You Like
Don’t rush into a purchase. Make sure you’re buying because you’ve found a home you want to live in, not because you want the $8,000. You don’t want to end up in the wrong house in the wrong neighborhood with the wrong commute just for a few thousand dollars.
August 25, 2009
Jim Holt, our all-star agent on the Peninsula, has seen of lot of multiple offer situations over the last few weeks.
Recently, there haven’t been a lot of new listings and a lot of buyers have seen everything that’s for sale. So when a nice home comes on the market with a good price, it’s going to get multiple offers and probably sell over list price. This is especially true for entry- and mid-level homes in Palo Alto, Menlo Park and Mountain View.
If you’re bidding on a home with multiple offers, Jim says it’s critical that you lead with your best offer:
You need to approach the offer with the mindset that this is your only shot. It’s likely the sellers will counter only the strongest offers and ignore the rest. Make sure you’re comfortable with the offer price because if you offer is accepted, you don’t want to question if you overpaid. At the same time, you don’t want to be kicking yourself if you lose by only $5,000 – $10,000.
Ignore List Price
Jim’s advice to anyone looking on the Penninsula right now is to forget about the list price:
List price is a meaningless number. If a home is overpriced, it will sit on the market for a while, then sell below list price. If a home is underpriced, it will get multiple offers and sell over list price. Remember, market value is based on what people paid, not what sellers asked. You need to look at sales prices for comparable homes that sold in the last three months. Anything older is too stale to be useful.
What are you seeing in the housing market on the Peninsula?
August 21, 2009
Let’s take at look at some July numbers for single-family houses and condos that sold in the Bay Area and see how they compare to a year ago.
San Francisco
- 454 homes sold in July
- The median sales price was $642,426, down from $770,000 in July 2008
San Mateo County
- 581 homes sold in July
- The median sales price was $575,000, down from $701,000 in July 2008
Santa Clara County
- 2,028 homes sold in July
- The median sales price was $487,000, down from $615,000 in July 2008
Alameda County
- 1,699 homes sold in July
- The median sales price was $340,000, down from $445,000 in July 2008
Contra Costa County
- 1,816 homes sold in July
- The median sales price was $260,000, down from $350,000 in July 2008
Marin County
- 241 homes sold in July
- The median sales price was $650,000, down from $777,500 in July 2008
We got these numbers from DQNews.
Dig Deeper Into the Trends
These numbers are for county-level trends in the Bay Area. To see what’s happening in your neighborhood, check out our stats & trends pages.
This is our first monthly report on the inventory trends in the Bay Area. What numbers would you like to see in our August wrap-up?
