A REAL ESTATE BLOG - Oakland, California

6 TIPS FOR SELLING IN TODAY'S MARKET

2012-02-19T18:04:00.000-08:00

Some homeowners have been waiting for years for a better housing market and a good time to sell. Is it better to wait a few more years and see if you can realize a higher sale price, or sell now and move on with your life?

The motivation for selling is a key factor. Are you commuting to work several hours a day and the commute is killing you? Are your children grown and your home is now too big, in addition to being a burden to maintain? Is your home too small? Have you taken a job out of the area? Can you no longer afford to own your home? Or do you no longer want to pay the price it costs to own your home?

These are all good reasons for considering making a move. Not only do current market conditions enter into the equation, but making a move like this is usually more complicated than it was the first time you bought a home.

HOUSE HUNTING TIP: First, you need to find out the probable sale price of your home and access the state of the current home-sale market in your area. You also need to know what you can do to maximize the salability of your home. Then you should consider where you'll live next and how much that will cost.

If you don't already have one, find an experienced real estate agent who specializes in your area. Friends whose opinion you trust are the best source of agent referrals. Meet with your agent at your home and ask for a comparative market analysis. This will give you information about what homes like yours have been selling for in the current market.

You'll also want to know how long you can expect it to take to sell your home. How many homes like yours have sold recently? Are homes like yours in high demand? Or, is it located in a less desirable area that could mean a longer marketing time and, perhaps, a lower price than you were expecting?

Ask your agent to walk through your home with you and point out what should be done to make your home marketable. Homes that sell today are priced right for the market and are in move-in condition.

You want to make cost-effective improvements. If the kitchen and bathrooms are outdated, consider a cosmetic redo. Update paint, hardware, light fixtures and floor coverings, if necessary. Don't do a complete remodel unless you plan to stay in your home for years; otherwise, you won't recoup your investment.

Deciding where to move -- and when -- can be difficult. Some buyers can afford to buy a new home before selling, and prefer to make the move that way. Most repeat buyers can't afford to buy first. Others who can won't buy first due to market uncertainty and the stress of owning two homes at once.

The most prudent approach to making a move from one home to another is to sell first and rent if necessary until you find the right home to buy. By selling first, you will know exactly how much money you have to apply to a new home. Today's housing market is volatile. A dip in the market could shave tens of thousands of dollars, or more, off your selling price.

The other benefit of renting before buying is that you're under no pressure to buy the first listing you see. Interest rates are low and are expected to stay low through 2012. Prices are also low and aren't expected to move up much for the next several years.

THE CLOSING: This gives you time to find the home that will suit you for the long term.

EAST BAY MARKET UPDATE

2012-02-19T17:56:00.001-08:00

Real Estate Market: It’s Time for Sellers to Join the Party!

2012-02-19T17:53:00.000-08:00

Market dynamics are setting the stage for an amazing post-Super Bowl selling season, but there is one ingredient missing: sellers!

It’s a great time for sellers to join the party. While this may not be the “perfect storm” we’re all waiting for, which would include accelerating appreciation, there is an opportunity now to take advantage of our current market – the likes of which we haven’t seen since before 2005.

Consider this: In all six counties served by PUI, listing inventory is significantly down compared to six months ago – but by contrast, properties under contract are growing at accelerating and exciting rates. Just take a look at these numbers (click on the county name to get more detailed market condition information from our Bay Area counties):

Many of our listings are receiving multiple offers, tight terms, ultra-competitive closing timelines, pre-approved mortgage commitments with rates at 4.0 to 4.5 percent, and an ample supply of “all cash” transactions.

Buyers are more confident than we have seen in the past 20 months and the Bay Area economic forecast and job markets seem stable, if not downright encouraging.

If you’re thinking about selling, the time is ripe to dip your toe back into the market. Come on in – the water feels fine!

The Future of Comparative Market Analysis is Here

2012-02-19T17:39:00.000-08:00

What’s better than a well-researched comparative market analysis? One that never gets outdated.

Welcome to the world of the dynamic comparative market analysis, or DCMA for short — sometimes also called a digital comparative market analysis. Pacific Union is pioneering its use and finding that clients are thrilled with the immediacy, control, and insight the DCMA offers.

The DCMA is a digitally generated companion to a traditional comparative market analysis created by a PUI real estate professional. This powerful tool, allow you to keep tabs on the most current market activity around your home, is housed on a dedicated web space and is updated automatically every night by the MLS.

Four tabs allow you to view homes in your area; your own home’s value; your estimated proceeds; and market conditions. The “Homes in Your Area” tab can be customized to show just a map with icons, or a listing of property details alongside the map that includes addresses, bedrooms and bathrooms, square footage, and list prices. You can click on any of those properties to get full information.

The DCMA automatically calculates a market-value range for a your home based on the price-per-square-foot of comparable properties. For you, it’s easy to fine-tune the analysis — it’s a matter of a simple click to remove a comparable property from the mix. So if you don’t think that fixer-upper down the road is a fair comparison to your home, you don’t need to factor it into the valuation.

“It’s incredibly helpful if someone is starting to think about selling or refinancing, or needs to check data for a property tax reassessment request,” says a Pacific Union branch executive. “It’s an easy way to watch value change right in front of your eyes.”

Want to learn more — or get a DCMA of your own? Contact me for more information.

New Listing at 250 Ansel Avenue in the Bayport Community of Alameda

2012-01-22T10:25:00.000-08:00

Luxuriously-appointed Bayport home with upgraded options & customized conveniences, spacious floor plan, large gourmet kitchen, Caesarstone countertops & stainless steel appliances, master bedroom suite with large walk-in closet & separate retreat/den space, formal lvng/dining rooms, easy access to landscaped garden/patio. Great home! Asking price is $655,000.

http://www.inkswitch.com/viewItem.php?itemID=71411&rev=4157

Piedmont Avenue and Temescal neighborhood real estate activity during 2011 versus 2010

2012-01-11T11:28:00.000-08:00

Comparing Piedmont Avenue and Temescal neighborhood real estate activity during 2011 versus 2010, homes sale prices and days on the market decreased 10% during 2011 with sales volume significantly increasing by 40% in the -$800,000 sales price range while homes sale prices, days on the market and volume all decreased by 4%, 33% and 70% respectively, during 2011 In the $800,000+ sales price range. This is great news overall for buyers as prices continue to come down with inventory up and it is also great news for sellers who need to sell, as increased inventory is actually selling quicker in all price ranges.

Comparison of 2010 versus 2011 year end data	2010			2011
Sales Price	Avg Sale Price	Number of homes	DOM	Avg Sale Price	Number of homes	DOM
$0-$800,000	$572,713	42	48	$515,026	59	43
$800,000+	$847,200	3	36	$815,750	2	11

Difference 2010 versus 2011	Avg Sales Price	Volume	DOM
$0-$800,000	~10% decrease in 2011	~40% increase in 2011	~10% decrease in 2011
$800,000+	~4% decrease in 2011	~33% decrease in 2011	~70% decrease in 2011

San Francisco Real Estate Market Update

2011-09-08T13:50:00.000-07:00

Our Chief Executive Officer, Mark McLaughlin, recently painted an interesting overall summary of the real estate market based on the input from our offices around the Bay Area. I thought this would be interesting information for you to read....

"With respect to residential real estate specifically in the San Francisco Bay Area, we are a largely supply constrained market. In the six counties we serve, only two counties really experienced over building in the pre-2007 housing boom. As a result, our inventories are manageable and not causing downward pressure on pricing."

"In a conference call yesterday with our Management Team the following observations were made of this week’s market activities:

San Francisco – stability seems to be present. Business as usual although light activity as expected in summer. Multiple new escrows in past few days mainly in $1.25 to $2.25 million range.

Marin – High-end of market is still performing although summer slowdown is real. PUI is scheduled to close $45 million in August ’11. Six (6) deals currently pending to close in August ’11 over $2 million, one over $4.5 million – all buyers seem stable, committed and feel values are still appropriate.

Alameda – General market consensus is cautious but very active with appetite for additional inventory. Market needs additional inventory in the $750K - $1.2 million price range. Historically low mortgage rates are motivating buyers. Seems like a great time to be a seller!

Contra Costa – Status quo seems to be prevailing attitude. More new inventory this week than expected is a positive sign leading up to schools starting back up again. Distress sales (short sales, REOs and pre-foreclosure) still seem to generate multiple offers which confirms value-pricing is paramount!

Napa – High-end of market is on fire!! Since Saturday, PUI ratified both sides of a deal over $7 million, two deals at est. $2.4 million, two more at $1.2 and $1.9 million. We also represent two very active buyers over $10 million.

Sonoma – No evidence of stress in the markets yet! PUI secured eight new listings last week and ratified eight new escrows between $400K - $1.495 million. Like Contra Costa County, historically low mortgage rates are motivating buyers. Seems like a great time to be a seller!

It really is interesting how strong the demand for housing is in the San Francisco Bay Area! We are lucky to have Mark's insight's which helps us better advise our clients. Thanks, Mark

High Balance Conforming Loan Limit Update

2011-09-08T13:26:00.000-07:00

Just a quick reminder that effective October 1, the high balance conforming loan limit drops back to $625,500 with any loan above this amount is considered a jumbo loan with higher pricing.

Real Estate Update For Piedmont Avenue and Temescal Neighborhoods

2011-09-08T13:15:00.000-07:00

Compared to 2010, so far 2011 seems to be a quicker paced selling cycle for both neighborhoods with the number of sales higher in Piedmont Avenue and lower in Temescal and sales prices down by ~13.6% in Piedmont Avenue and near flat in Temescal. The telling figure for sellers is that buyer demand is strong for both neighborhoods. Your home WILL sell if priced correctly, presented well and fully marketed. Low interest rates continue to support strong buyer demand.

PIEDMONT AVENUE FIGURES

YEAR	NUMBER OF SALES	AVERAGE DAYS ON MARKET	AVERAGE ASKING PRICE	AVERAGE ASKING $/SQFT	AVERAGE SOLD PRICE	AVERAGE SOLD $/SQFT
2011 (as of 9/8/11)	26 homes and townhouses	25	$550,135	$424	$557,857	$430
2010	25 homes and townhouses	54	$641,248	$435	$646,144	$439
2009	27 homes and townhouses	20	$609.325	$468	$621,848	$476

TEMESCAL FIGURES

YEAR	NUMBER OF SALES	AVERAGE DAYS ON MARKET	AVERAGE ASKING PRICE	AVERAGE ASKING $/SQFT	AVERAGE SOLD PRICE	AVERAGE SOLD $/SQFT
2011 (as of 9/8/11)	26 homes and townhouses	23	$495,849	$402	$511,322	$414
2010	38 homes and townhouses	38	$496,655	$380	$511,390	$391
2009	15 homes and townhouses	24	$566,326	$436	$570,733	$439

Real Estate Facts You Should Know for 2011

2011-06-12T12:36:00.000-07:00

Did you know? . . .Temporary conforming loan limits expire September 30, 2011.

Currently, buyers with strong credit, income and a 20% down payment can borrow up to $729,750 with relative ease and very favorable rates. FHA borrowers can borrow up to $729,750 with a minimum down of $3.5%. As of October 1, 2011, maximum financing for both jumbo-conforming and FHA will be limited to $625,500. Loan balances in excess of this amount will fall into traditional jumbo programs. The net effect is fewer buyers qualifying for conventional financing and the requirement of larger down payments.

The impact to sellers will be felt dramatically as well. Those sellers with homes listed between $780,000 and $910,000 will see the largest impact. The net effect of these changes means additional downward pressure on sales prices as fewer buyers are able to qualify for conventional loans. If you live in a high-cost area, like the Bay Area, take note. Mortgage rates may be low, but the amount of loan for which you qualify may be less than you expect, and you may find yourself ineligible.

With this in mind, keep an eye on the calender; now may be a great time to buy.

Did you know? . . . Statewide Carbon Monoxide requirement effective July 1, 2011.

California's Carbon Monoxide Poisoning Prevention Act of 2010 requires all residential property be equipped with a California State Fire Marshal (CSFM) approved carbon monoxide detector when the property has a fossil fuel burning heater or appliance, fireplace, or an attached garage, as follows:
All single-family homes (owner or tenant occupied) on or before July 1, 2011 and all residential units (duplex/apartment/condominium complex) must be equipped with a detector on or before January 1, 2013. For new construction, CO alarms must be hard-wired and interconnected.

Carbon monoxide (CO) is an odorless, colorless and toxic gas. Because it is impossible to see, taste or smell the toxic fumes can kill individuals before they are aware it is in their home. At lower levels of exposure, CO causes mild effects that are often mistaken for the flu. These symptoms include headaches, dizziness, disorientation, nausea and fatigue. The effects of CO exposure can vary greatly from person to person depending on age, overall health and the concentration and length of exposure.

Did you know? . . .Contributing author Lee Adler for Seeking Alpha comments on S&P/Case Shiller's home price indices:

The S&P/Case Shiller Home Price Indices reported Tuesday are, as usual, so far behind the curve that not only did they miss the “double dip” that has come and gone, it will be at least July or August before it reports an apparent upturn in prices in March and April. S&P's view of the data was dour. “There is very little, if any, good news about housing. Prices continue to weaken, trends in sales and construction are disappointing, ” said S&P’s David Blitzer. “The 20-City Composite is within a hair’s breadth of a double dip.”

There’s just one problem with that. Other price indicators that are not constructed with the Case Shiller’s large built in lag, passed the 2009-2010 low months ago. The FHFA (the Federal Agency that runs Fannie and Freddie) price index showed a low in March 2010 that was broken in June 2010 and never looked back. That index is now 5.6% below the March 2010 low. Zillow.com's proprietary valu model never even bounced. It shows a year over year decline of 8.2% as of February. ZIllow’s listing price index shows a low of $200,000 in November 2009, followed by a flat period lasting 6 months. As of March 31, that index stood at $187,500, down 6.25% from the 2009-2010 low for data.

The Case Shiller Indices for February held slightly above the January level (not seasonally adjusted). I follow their 10 City Index due to its longer history. It was at 153.70 in February versus 152.70 in January. These levels are still above the low of 150.44 set in April 2009.

Why It's Time to Buy

2011-06-08T17:19:00.000-07:00

Source: The Wall Street Journal

Back in June 2006, when the housing market peaked, the prospect of a five-year national housing bust seemed unimaginable to most people. And yet here we are, with the latest Standard & Poor's Case-Shiller index showing that prices hit new bear-market lows, falling back to 2002 levels nationally and to 1990's levels in some battered regions.

Despite all the gloom, however, there are growing indications that it is a good time to buy. Mortgage rates, which fell to 4.55% for the week ending June 2, according to Freddie Mac, are near 50-year lows. Homes have become more affordable than they have been in years: according to Moody's Analytics, the ratio of home prices to income is now 20.9% lower than the 15-year average through 2010, and 12.5% lower than the 1989-2004 average. A historic glut of homes, meanwhile, has created a buyer's market: there were about 15 million vacant homes in the U.S. last year according to John Burns Real Estate Consulting Inc.--some 3.1 million more than normal.

Piedmont Avenue and Temescal District Update

2011-02-24T16:36:00.000-08:00

Temescal District
There are no new properties on the market since my February 11 update. Still 4 total properties with one 4/2 home pending at 461 38th Street for an asking price of $595,000. Of the 3 remaining actives, a 2/1 home at 463 38th Street had a $10k price adjustment to $469,000 and a 2/1 home at 385 51st Street has an ~$20k price adjustment to $489,900. The 3/2+ home at 453 45th Street is still active after 24 days on the market for $409,000.

Piedmont Avenue
There are 3 new listings on the market in Piedmont Avenue to include a 3/3 home at 96 Monte Cresta Avenue for $749,000, a 2/2 home at 47 Rio Vista Avenue for $649,000 (which is already pending after 8 days on the market!) and a 3/1 home at 40 Glen Avenue for $585,000. Nothing has closed escrow yet this year.

Real Estate Activity So Far In 2011

2011-02-11T11:47:00.000-08:00

As this table shows, so far this year seems to be a quicker paced selling cycle with the days on the market averaging about 15 between the two neighborhoods and prices down in Piedmont Avenue yet a bit higher in the Temescal. It is still too early in the year to come to any conclusions about this data except that Buyers are waiting for new inventory since properties are selling quicker. I know that from my own experience that Sellers seem to be pricing their homes more in line with the comps which is a good thing. However, there have been very few homes to see on Brokers tour in both these neighborhoods...

	ACTIVITY	AVERAGE DAYS ON MARKET	AVERAGE ASKING PRICE	AVERAGE ASKING $/SQFT	AVERAGE SOLD PRICE	AVERAGE SOLD $/SQFT
PIEDMONT AVENUE	12 properties	19	$457,941	$410	3 pending	-
TEMESCAL	4 properties	12	$552,000	$341	1 pending	-

Review of 2010 Real Estate Activity in the Piedmont Avenue and Temescsal Neighborhoods

2011-02-11T10:12:00.000-08:00

PIEDMONT AVENUE
The figures below illustrate that the major differences in the sale of Piedmont Avenue homes and townhouses in 2010 versus 2009 are that on average it took longer to sell in 2010 with a 5.5% increase in the average sales price, yet the average $/sqft figures decreased by about 8% probably due to a greater number of smaller homes selling during the year. In contrast, condos seemed to have taken a different route with a shorter selling time on the market, a 6% decrease in the average sales price and about a 14% decrease in the average $/sqft figure.

The agent and active buyer community would still consider inventory to be lower than in previous years which could help explain the increase in the average sales price with demand steady yet choices fewer. A quick look at the sales volume in previous years confirms a downward trend with the volume during 2002-2006 averaging 41 sales per year, 26 sales in 2007 and 25 sales in 2008. 2002 has the most sales totaling 43.This lower volume trend has continued in 2009-2010 which could imply it is still a great time to sell because if you price your home accurately, you may experience pent-up demand from buyers all waiting for the next great Piedmont Avenue home to come on the market!

PIEDMONT AVENUE FIGURES

YEAR	NUMBER OF SALES	AVERAGE DAYS ON MARKET	AVERAGE ASKING PRICE	AVERAGE ASKING $/SQFT	AVERAGE SOLD PRICE	AVERAGE SOLD $/SQFT
2010	25 homes and townhouses	54	$641,248	$435	$646,144	$439
2010	29 condos	38	$263,624	$299	$257,513	$292
2009	27 homes and townhouses	20	$609.325	$468	$621,848	$476
2009	31 condos	49	$273,077	$340	$274,239	$339

TEMESCAL
The figures below illustrate that the story in the Temescal comparing the sale of homes and townhouses in 2010 versus 2009 is that on average it took longer to sell in 2010 with an ~14% decrease in the average sales price. In contrast, condo sales dramatically improved the time to sell with a decrease of almost 60% versus 2009, but with an ~8% decrease in the average sales price.

A quick look at the sales volume in previous years confirms a steadier trend year-over-year with the volume during 2002-2006 averaging 35 sales per year, 31 sales in 2007 and 27 sales in 2008. 2003 had the most sales totaling 41. 2010 saw a volume increase of almost 154% for homes and townhomes over 2009!

TEMESCAL FIGURES

YEAR	NUMBER OF SALES	AVERAGE DAYS ON MARKET	AVERAGE ASKING PRICE	AVERAGE ASKING $/SQFT	AVERAGE SOLD PRICE	AVERAGE SOLD $/SQFT
2010	38 homes and townhouses	38	$496,655	$380	$511,390	$391
2010	7 condos	41	$367,957	$328	$355,857	$317
2009	15 homes and townhouses	24	$566,326	$436	$570,733	$439
2009	15 condos	101	$400,760	$340	$392,696	$393