With only three months until the new $8,000 first-time homebuyer and the $6,500 existing home buyer federal tax credits are set to expire, time is running out on an opportunity that buyers and sellers may not see again. The tax credit, which was originally created in mid 2008, then expanded in January 2009 and extended again this past November, was only designed to be a short-term incentive to drive more buyers into the housing market.

That’s why many people in Congress are saying that, come April 30, 2010 when the credit expires, “That is it!”

So the clock is ticking. The average real estate transaction, from offer to closing, takes approximately 90 days and that is just about where we are now. To meet the federal deadlines, a buyer must have a binding sales contract in place by April 30, and have the home purchase completed by June 30. To achieve those time frames, buyers need to act almost immediately. Those deadlines also mean that this is also a prime opportunity for sellers. As the April 30 deadline gets ever closer, we are bound to see an influx of home-seekers who are hoping to find a house and make an offer in time to receive the tax credit. So for sellers who have been considering moving up in the market, downsizing, or relocating, now is an opportune time to put their house on the market.

We’re at a unique time in real estate. The tax credit deadline is helping to create the “perfect storm” in the market, due to four key elements – I.I.I.P:

• Inventory: Although there are an overwhelming number of markets where inventory is down, and even with a decline in inventory year over year, there are still plenty of homes on the market for buyers to choose from.
• Interest Rates: Mortgage rates remain at near historic
lows. This means higher purchasing power for buyers.
• Incentives: The extension and expansion of the homebuyer tax credit is providing benefits to buyers who may have otherwise not been interested in getting into the market.
• Prices: Affordability remains at an all time record level nationally and in many of our local markets as well. While the urgency of trying to find and close on a home before the deadline may seem stressful, it doesn’t have to be. For those who are in the early phase of the home buying process, there are a few key things that you can do to speed up the process:
• Find A Qualified Real Estate Agent. If you do not already have one, work with a real estate agent who will be able to help identify mortgage lenders, home inspectors,
lawyers and others who will play a role in helping to get the buying process completed by the April 30 deadline.
• Know Before You Go. Free online tools and mobile applications for smart phones are available to help you quickly and conveniently learn about neighborhoods and view homes on the market. Consult with your own tax advisor as to your ability to qualify for the tax credit based upon income levels, length of residency/homeownership and housing prices. Arming yourself with as much knowledge as possible in the beginning is bound to save time in the long-run.

I just listed this single family home in Santa Clara.  This is a Bower’s Crest home.  Its a very simple tract home that I feel was well designed and incorporates many details that you want in a single family home.

The issue with many small older tract homes is the design.  Many homes have living areas in the front and bedrooms toward the back of the home.  The doors enter right into the living room, so every time you open your door you feel like the whole neighborhood can see inside the house.  Also many of these smaller homes have a regular door providing access to the backyard and not a sliding glass door.  These homes are generally dark and have tiny kitchens with limited counter space and cabinetry.

Although this Bower’s Crest home doesn’t have a large kitchen by modern standards it offers plenty of work space for two people to prepare a good sized meal and ample cabinetry for storage.  What I also like is the sliding glass door to the back yard which is adjacent to the dining and living area.  This allows for a lot of light to enter making it a fairly bright home, and sliding glass doors are ideal for back yards access.  Believe me, its not common to find sliding glass doors in many small home tracts, next time you are out home shopping see for yourself.

Other desirable tangibles are the three interior closets, the attached garage, and the quiet neighborhood.  I really feel that this is one of the best lower cost neighborhoods in Santa Clara.

2208 Santa Cruz Avenue, Santa Clara - Bowers Crest

2208 Santa Cruz Avenue, Santa Clara
Bedrooms: 3
Bathrooms: 2
Living Area: 1,078 Sqft.
Lot Area: 5,000 Sqft.
Garage: 2 Car

Single family home in a quiet Santa Clara neighborhood.  This home features dual paned windowns, central heating, and beautiful restored hardwood floors.

54 home closings in the month of December last year for the city of Santa Clara real estate. Not too shabby for a December in any year.  The end of the year last year experienced a rush of buying, more so than previous years.  Also note that many of the sale prices were close to list or even over.

	List Price	Street Address	DOM	Sale Price	Close Date
1	$279,000	2472 BORAX DR	8	$330,000	12/4/2009
2	$389,000	1951 WALNUT GROVE AVE	152	$375,000	12/16/2009
3	$450,000	975 DI GIULIO AVE	60	$425,000	12/16/2009
4	$421,740	3595 SHAFER DR	78	$427,500	12/24/2009
5	$437,333	1724 CABRILLO AVE	27	$440,000	12/22/2009
6	$399,000	1182 MARYANN DR	12	$440,000	12/30/2009
7	$450,000	2314 AUGUSTA PL	262	$450,000	12/8/2009
8	$454,410	3859 DE LA CRUZ BL	5	$450,000	12/3/2009
9	$449,500	1738 COLUMBUS PL	43	$460,000	11/21/2009
10	$449,900	680 CLARA VISTA AVE	2	$472,500	12/22/2009
11	$459,900	2305 AMETHYST DR	11	$481,000	12/16/2009
12	$475,000	2184 FRANCIS AVE	20	$490,000	12/16/2009
13	$449,000	2262 BOWERS AVE	–	$500,000	12/11/2009
14	$519,000	1937 BENTON ST	30	$519,000	12/15/2009
15	$525,000	2149 BOHANNON DR	26	$525,000	5/29/2009
16	$529,000	3326 GRANADA AVE	6	$536,000	12/2/2009
17	$544,500	2876 ADDISON PL	43	$541,000	12/22/2009
18	$549,000	3406 BELLA VISTA AVE	11	$549,000	12/22/2009
19	$575,000	1665 GRAHAM LN	77	$575,000	12/21/2009
20	$599,000	2359 BRAY AVE	21	$590,000	12/15/2009
21	$599,000	2311 WOODLAND AVE	20	$610,000	12/1/2009
22	$568,000	3388 SAINT MARYS PL	7	$616,000	12/10/2009
23	$624,000	760 BELLOMY ST	9	$620,000	12/31/2009
24	$609,000	2478 TULIP RD	8	$620,000	12/3/2009
25	$649,000	3089 AGATE DR	44	$621,000	11/24/2009
26	$639,950	1275 MEADOWLARK AVE	29	$625,000	12/10/2009
27	$650,000	414 DAYTON AVE	6	$641,875	12/23/2009
28	$649,950	2048 LOVELL PL	34	$642,000	12/22/2009
29	$649,000	3111 MEMBRILLO CORTE	11	$655,000	11/13/2009
30	$695,000	4082 DAVIS ST	7	$685,000	12/9/2009
31	$695,000	2004 GAMMELL BROWN PL	7	$705,000	12/16/2009
32	$649,999	3291 LOMA ALTA DR	6	$707,550	12/9/2009
33	$750,000	692 FAIRLANE AVE	69	$738,000	12/4/2009
34	$757,370	3560 DRUFFEL PL	54	$739,990	11/5/2009
35	$688,888	2318 LASS DR	13	$741,000	12/18/2009
36	$813,156	3570 DRUFFEL PL	49	$742,167	11/27/2009
37	$749,000	779 BAYLOR DR	7	$745,000	12/18/2009
38	$818,509	3571 WOLF PL	57	$756,500	11/13/2009
39	$759,000	711 RIDGE RD	2	$760,150	12/17/2009
40	$758,000	2214 LASS DR	13	$780,000	11/30/2009
41	$789,930	4220 VERDIGRIS CIR	5	$798,000	12/1/2009
42	$823,000	2740 PRUNERIDGE AVE	51	$823,000	12/7/2009
43	$888,000	476 BIRCH WAY	117	$840,000	12/16/2009
44	$859,000	640 MEADOW AVE	19	$845,000	12/3/2009
45	$849,000	56 RODONOVAN DR	24	$855,000	12/2/2009
46	$999,950	343 LESTER CT	11	$980,000	12/2/2009
47	$995,000	340 FONTANA DR	9	$1,005,000	12/10/2009
48	$999,950	2816 MESQUITE DR	6	$1,010,000	12/29/2009
49	$1,049,800	726 MONROE ST	11	$1,025,000	12/10/2009
50	$988,000	112 TYLER AVE	23	$1,050,000	11/19/2009
51	$1,098,000	2609 NEVES CT	33	$1,082,000	12/8/2009
52	$1,099,800	819 E RIVER PY	18	$1,110,000	12/11/2009
53	$1,198,000	353 LESTER CT	20	$1,160,000	12/8/2009
54	$1,167,500	4146 MARSTON LN	0	$1,167,500	12/7/2009

2009 was actually a busy year for home sales in Santa Clara. Although the national press focused on the sluggish real estate market, record high foreclosures and the country’s credit woes, the number of homes sold in the City of Santa Clara was not too far off from 2007 levels.

In 2007 569 homes were sold in Santa Clara compared with 539 sold in 2009.  2008 we did witness a very down year, that number dropped to just 485 homes. The biggest difference in 2009 from previous years were the number of short sales and bank owned homes that made up the total sales.

In 2009 the number of short sale homes sold in Santa Clara were 66 homes or 12% of homes sold that year. Santa Clara bank owned homes totalled 123 in 2009 or 23%.  Over a third of the single family homes sold in Santa Clara in 2009 were some sort of distressed sale.

This is in stark contrast to 2007 where there was just one closed short sale in Santa Clara and no bank owned home sales.

FYI, In 2008 the number of short sale homes totalled just 16 homes or 3% of the homes sold that yearAs for bank owned homes there were 43 homes or 9% of homes sold that year in Santa Clara.

3581 Earl Drive, Santa Clara

This Lawrence Meadows home was situated on a quiet street and was meticulously maintained by its owner for many years. Although the decor was outdated the home was clean and functional. Featuring dual pane windows, a 10 year old roof, and automatic garage door the home was in move in condition. I recommended that the owner do some quick updates but she had lived in the home for 40 years and didn’t want to go through the hassle.

After a few weeks we did get an offer and were able to negotiate a fair price of $600K and were able to close.

3581 Earl Drive, Santa Clara
Bedrooms: 3
Bathrooms: 2
Garage: 2 Car
Sqft.: 1,240
Lot: 6,500
Sold: $600,000

Home sales for the month of November. As expected the holiday season has arrived and the number of home sales are winding down. A good sign is that inventory is also winding down and buyers are trying to take advantage of low rates. This has resulted in a number of multiple offer situations and a number of homes selling close to or over asking.  As long as inventory maintains reasonable levels we can expect a good 2010.

	List Price	Street Address	DOM	Sale Price	Close Date
1	$535,000	988 SUNSET DR	10	$527,000	11/25/2009
2	$437,500	1563 EISENHOWER DR	4	$480,000	11/17/2009
3	$1,170,000	1044 GARRITY WAY	11	$1,140,000	11/24/2009
4	$639,000	1406 BARBARA DR	13	$611,000	11/18/2009
5	$875,000	3252 LOMA ALTA DR	11	$900,000	11/20/2009
6	$509,000	2631 MONTICELLO WAY	19	$522,950	11/18/2009
7	$520,000	2646 DONOVAN AVE	15	$575,000	11/18/2009
8	$749,000	782 CORNELL DR	13	$725,000	11/17/2009
9	$400,000	761 CLYDE AVE	8	$500,000	11/12/2009
10	$349,950	2474 CRYSTAL DR	7	$390,000	11/23/2009
11	$799,888	2997 TAPER AVE	9	$812,000	11/16/2009
12	$849,000	380 HILLSDALE AVE	8	$868,000	11/6/2009
13	$780,000	2017 GAMMELL BROWN PL	10	$770,000	11/3/2009
14	$695,000	2291 DOLORES AVE	22	$706,000	11/16/2009
15	$669,000	2180 AGNEW RD	14	$655,000	11/10/2009
16	$525,000	2132 SAN RAFAEL AVE	9	$514,000	11/9/2009
17	$699,000	759 BAYLOR DR	16	$699,000	11/5/2009
18	$599,000	263 MARIA ST	38	$562,500	11/19/2009
19	$625,000	1743 WADE AVE	4	$630,000	10/30/2009
20	$759,950	4130 TOBIN CIR	13	$767,000	11/9/2009
21	$449,000	938 LEITH AVE	8	$490,000	10/30/2009
22	$749,500	3042 RYAN AVE	52	$745,000	11/25/2009
23	$549,950	930 ELIZABETH DR	22	$570,000	11/6/2009
24	$695,000	1754 SANTA CLARA ST	27	$674,000	11/23/2009
25	$499,000	639 ARMANINI AVE	15	$489,000	10/30/2009
26	$530,000	3672 BETH CT	9	$565,000	11/3/2009
27	$988,000	1187 DOYLE CIR	10	$965,000	11/13/2009
28	$839,500	2871 PRUNERIDGE AVE	58	$821,000	11/10/2009
29	$525,000	2211 SAN RAFAEL AVE	31	$520,000	11/10/2009
30	$799,000	3479 MAURICIA AVE	28	$720,000	10/30/2009
31	$578,000	220 WESTRIDGE DR	5	$600,000	10/6/2009
32	$610,000	3581 EARL DR	62	$600,000	11/25/2009
33	$499,999	1237 SCOTT BL	95	$465,000	11/25/2009
34	$529,000	648 ROBIN DR	58	$510,000	10/13/2009
35	$799,000	721 RIDGE RD	97	$791,000	11/13/2009
36	$368,000	2444 CRYSTAL DR	20	$392,000	10/30/2009
37	$549,000	785 PINEVIEW DR	141	$549,000	10/29/2009
38	$629,000	3036 TAPER AVE	90	$580,000	11/10/2009
39	$499,000	2695 PHILLIPS AVE	10	$425,200	11/20/2009

Take a quick look at current home inventory levels as of November 27, 2009.  Santa Clara single family home inventory has been droping as the year has progressed.

This adorable Bowers Crest home sold recently. After being on the market for just over a week, it received multiple offers, but due to the condition of the home sold lower than asking. The home needed a heating system and had a cracked chimney as well as there were some areas were sloping floors were quite noticeable, typical for this area in homes that have been neglected and not just akin to this specific home.

Inspite of those defects the home had some nice clean finishes, new flooring in the kitchen and bathroom, new shower and tub enclosures in the bathrooms, and refinished hardwood floors.

Many people are not aware of this jewel of a neighborhood. The homes here are simple and small, but have very function floor plans, and feature 2 baths where comparable size homes may only feature one bath. Another aspect of these homes is that they have a sliding glass door to the back patio and yard and a full 2 car garage. Couple this with a quiet and isolated neighborhood and you have many features that buyer’s look for in a home.

One of the main drawbacks is the size of these Santa Clara homes. At around 1,078 sqft. most people are not too pleased with the size of the bedrooms and the master bathroom. Generally these homes for the price of other comparably priced homes in Santa Clara offer more and I feel they are a better value.

I have seen several remodels involving additions where the owners have opened up the kitchens and have created very functional spaces out of these homes.

2154 San Rafael Ave., Santa Clara
3 Bedroom 2 Baths
1,078 Sqft
5000 Sqft Lot
2 Car Garage

Sold for $514,000

The month of October saw 44 homes sell in Santa Clara which was 30% lower than the previous month which saw 65 homes sell. The market has been hot in October with many of the listings sold within 2 weeks of being on the market and many with multiple offers.  The month also saw a number of short sales close that had been on the market 300 days.  Currently the Santa Clara market has 78 homes on the market.  This number I estimate will drop to the 50’s by the end of the year.  Most of the current homes on the market are lingering listings.  Very few new listings are coming out and most are rough properties.  Another interesting note is the number of price reductions are fewer than last month’s.  October saw 22% of the closed listings experience price reductions, where September experienced 32%.

The fed is indicating that they will keep rates down, congress and the president have extended the first time home buyer credit and have even extended it to higher income households.   With low rates and low inventory we may be info a very competitive market in 2010 full of multiple offers and rising prices.

We are midway through November now and many homes that have not sold in the prior months have gone into contract, a sure sign of the market heating up.

	List Price	Street Address	DOM	Sale Price	Close Date
1	$321,500	2572 AMETHYST DR	9	$385,000	9/22/2009
2	$365,900	2452 PAINTED ROCK DR	8	$365,000	9/30/2009
3	$387,900	4669 SNEAD DR	23	$450,000	10/23/2009
4	$389,000	1755 FRANCK AVE	6	$450,000	10/27/2009
5	$399,900	1373 LAS PALMAS DR	7	$410,000	10/30/2009
6	$420,000	2140 MONTEREY AVE	315	$460,000	10/23/2009
7	$424,900	1779 EBERHARD ST	12	$450,000	10/15/2009
8	$432,500	840 BAIRD AVE	24	$481,000	10/9/2009
9	$490,000	1124 JACKSON ST	0	$490,000	10/27/2009
10	$499,000	1837 WADE AVE	8	$545,000	10/16/2009
11	$525,000	465 SARATOGA AVE UNIT QUIET END	10	$526,000	9/28/2009
12	$529,000	606 N MONROE ST	1	$529,000	10/23/2009
13	$539,000	2968 CHROMITE DR	77	$512,000	10/1/2009
14	$545,000	3343 SNIVELY AVE	5	$545,000	10/14/2009
15	$549,000	2202 PEACHTREE LN	25	$536,400	10/12/2009
16	$549,950	1851 CATHERINE ST	317	$540,000	9/24/2009
17	$550,000	2443 BORAX DR	10	$775,000	10/14/2009
18	$564,900	3878 WILLOW WAY	11	$569,000	10/5/2009
19	$566,000	3361 TRACY DR	6	$690,000	10/15/2009
20	$575,000	759 LAYTON ST	21	$570,000	10/16/2009
21	$588,000	2347 OSBORNE AVE	8	$585,000	10/1/2009
22	$599,000	3433 LONDONDERRY DR	9	$620,000	10/1/2009
23	$599,888	2331 REGINA CT	215	$560,000	9/29/2009
24	$625,000	732 FLANNERY ST	8	$599,000	10/6/2009
25	$649,950	2062 CALABAZAS BL	17	$630,000	10/23/2009
26	$659,000	734 RIDGE RD	8	$695,000	10/28/2009
27	$675,000	2495 BENTON ST	33	$668,000	10/1/2009
28	$678,000	601 CAMINO DR	20	$650,000	10/1/2009
29	$689,000	769 BAYLOR DR	6	$705,000	10/16/2009
30	$699,000	654 TULANE DR	93	$671,000	9/30/2009
31	$779,000	4360 LAIRD CIR	14	$765,000	10/30/2009
32	$779,950	3020 PRUNERIDGE AVE	48	$765,000	10/1/2009
33	$789,000	3754 PRUNERIDGE AVE	53	$760,000	10/3/2009
34	$799,000	1350 VIA DONDERA	56	$750,000	10/8/2009
35	$799,950	781 CORNELL DR	46	$785,000	10/2/2009
36	$801,888	416 GIANNINI DR	108	$685,000	10/9/2009
37	$838,000	2380 SUNNY VISTA DR	17	$765,000	10/9/2009
38	$858,888	155 RODONOVAN DR	123	$770,000	10/16/2009
39	$875,000	932 GARRITY WAY	35	$855,000	10/15/2009
40	$895,000	4321 MARSTON LN	9	$890,000	10/23/2009
41	$899,980	4304 MARSTON LN	7	$906,000	10/1/2009
42	$998,000	1022 BRACKETT WAY	25	$1,017,000	10/16/2009
43	$1,029,000	1158 DOYLE CIR	50	$1,005,000	10/16/2009
44	$1,050,000	1260 HARRISON ST	11	$900,000	10/16/2009

380 Hillsdale Ave, Santa Clara - Westwood Oaks

My listing in Westwood Oaks closed this week.  It was a great listing and located in the prized Cupertino School District.

This was an estate sale handled by children of the owners.   The home was fairly original with the exception of a spacious family room addition that was constructed in the 70’s.

My initial feeling about the house was that it was a great property.  The home featured a quiet location in the neighborhood and functional floor plan.  In spite of that there was plenty of room for improvement and the sellers were open to making the home more marketable.

After three weeks of remodeling we were able to put the home on the market.  Within a week we received 9 offers and sold the home over asking.  Take a look at the pictures below to see the progression of work that was done to make this home a spectacular listing.

hillsdale-pics