San Francisco Mid Peninsula Real Estate

San Francisco Mid Peninsula Real Estate Gems: Monday Morning Market Update

Today's post reviews a recent email update I received concerning the impact of recent economic developments on our local San Francisco Bay Area real estate market:

“U.S. Economic Recovery on Track”

 

While we await the results of the possible expiration, extension or expansion of the $8,000 first time home buyer tax credit, one thing is for sure, the economy seems to be moving forward—which is driving consumer confidence.  Earlier this week, Reuters.com ran a very interesting story on the U.S. economic recovery and the result was very encouraging.  Among the story’s highlights:

 

· “The U.S. economy is firmly poised for a recovery from its deep recession but growth may be moderate and the job market will not revive immediately, senior White House aide Lawrence Summers predicted on Wednesday.”

· “On the economy, Summers said the $787 billion stimulus package and inventory rebuilding by businesses were among the “dominant drivers” lifting the economy.”

· “It will be some time before unemployment starts to decline.  Once it declines it will take a long time to return to normal levels, given how elevated it is…The jobless rate is now at a 26-year high of 9.8 percent.”

· “Most private economists think the recession, which began in December 2007, ended in the third quarter.  But there is much disagreement about the path to recovery.”

· “Some see above-average growth continuing through next year, arguing that deep recessions are typically followed by powerful recoveries, helped along by pent-up demand as consumers and companies resume spending.”

 

Obviously this is welcome news for the economy which ultimately benefits the local housing market.  What I can tell you is that I am encouraged by the progress we are making in the real estate market.  We’re beginning to see more days of progress than days of back stepping.  We’re watching sales activity and consumer sentiment and we are expecting over the coming months a moderate and more sustainable pace of sales at most price points.  We will probably see a modest rise in housing prices in the coming year; both nationally and statewide.  In the Bay area, it will probably be the entry level brackets which will show price improvement.   Will it be the double digit appreciation we saw in the earlier part of the decade?  Probably not.  But this “new normal” is much more sustainable and a much healthier path to build upon.  It makes me excited about the future and gives us all hope for a relatively busy and productive 2010.

 

This week I’ll conclude with a few articles of interest:

·     What Housing Bust?; CNN Money

·     Housing Tax Credit Working, So Keep Momentum Going, NAR Urges Congress; Realtor.org

·     Shape Of The Housing Recovery; CNBC

·     Real Estate Outlook: Mixed Signals; Realty Times "

(Source: Rick Turley, President, San Francisco Bay Area Coldwell Banker Residential Brokerage)

The article underscores what many agents have observed over the past few months:   both the first time buyers tax credit and attractive pricing on entry level properties have  been  strong influences  in the San Francisco Peninsula Real Estate Market.  

SF Mid Peninsula Market Update: Pets Matter Also...

Today's post takes a look at the increasing number of pets being surrendered due to changes in family circumstances. As a long time pet owner and realtor, I have assisted many sellers over the years who had to find a new home for their fury friends. 

The plight of senior dogs is perhaps the most compelling.  Many individuals seeking to adopt a pet overlook the more senior pets.  In San Francisco, we are fortunate to have an organization such as Muttville which specializes in finding homes for older dogs.

If you are considering the need to find a new home for your pet examine  your alternatives as soon as possible. (The fury friend in the photo is Bentley my golden retriever) 

SF Mid Peninsula Real Estate : Notes From My Open House

Yesterday I held open my listing at 547 Exeter Way in San Carlos and was busy from the moment I opened the door.  Listed at $1,095,000 this five bedroom four and one-half bath home offers exceptional value and a wonderful San Carlos California location. 

The San Francisco Peninsula Real Estate Market has experienced an active Summer as indicated by the following email update sent from Rick Turley, President, San Francisco Bay Area Coldwell Banker Residential Brokerage:

"So Much for a Sleepy Summer

 

Generally speaking the Bay Area real estate market has seen a bit of a bounce this summer with sales increasing in all categories—from the entry level homes and condos to the high-end market.

 

National figures showed June with an 11% increase in home sales and the Bay Area seemed to share that trend with July sales up 15% over July 2008.  As the number of sold units continues an upward trend, price recovery is a bit of a mixed bag depending on the area. The entry level median price is increasing in all counties, due to very little supply against a healthy demand.  The just-under, just-over $1M mark seems to be holding its own, with a few multiple offers out there for the right property in a sought-after community. The higher end properties over $2M have, in the past 30 days, seen more activity than at any time this year, but price remains a critical factor as to which properties seeing this activity actually go into contract.  It seems the higher the price-point, the more critical it is for a very attractive list price.  Sellers who are selling are very realistic about marketing price, and Buyers who are buying are recognizing good value when they see it, and are taking action swiftly. For cash buyers or those with large down payments, this could be a great time to pick up a bargain in the luxury home market.

 

This week the National Association of Realtors released its monthly existing home sales report (http://www.realtor.org/press_room/news_releases/2009/08/strong_uptrend?LID=RONav0021) noting “For the first time in five years, existing-home sales have increased for four months in a row, according to the National Association of Realtors®.”  The report went on to note, “Existing home sales – including single-family, townhomes, condominiums and co-ops – rose 7.2 percent to a seasonally adjusted rate of 5.24 million units in July from a level of 4.89 million in June, and are 5.0 percent above the 4.99 million-unit pace in July 2008.  The last time sales rose for four consecutive months was in June 2004, and the last time sales were higher than a year earlier was November 2005.”

 

Lawrence Yun, NAR chief economist, said he was encouraged.  “The housing market has decisively turned for the better.  A combination of first-time buyers taking advantage of the housing stimulus tax credit and greatly improved affordability conditions are contributing to higher sales,” he said. Ultimately these are all very positive signs for our market and are a strong sign that we are moving in the right direction towards a housing recovery.

A few other interesting articles of note for the week:

 

·        Home Prices On An Upswing In The Second Quarter Of 2009 According To The S&P/Case-Shiller Home Price Indices; Case-Shiller

·         New Home Sales Blast Past Expectations; CNNMoney.com

·         The Housing Market: Has It Turned the Corner?; TIME Magazine

·        Mortgage Applications Increase In Latest MBA Weekly Survey; Mortgage Bankers Association

·        Home Market Shows Signs of Life as Declines Slow; Bloomberg"

 

Featured Open House: 547 Exeter Way San Carlos Ca.

First Time Open Sunday August 16, 2009.  547 Exeter Way San Carlos.  Listed for $1,095,000 this Mediterranean inspired home has five bedrooms and four and one-half baths.  Features include: Formal Living Room,Formal Dining Room, Cooks Kitchen, Family Room with Fireplace, Ground Floor Bedroom,Play Area Upstairs,Private Master Bedroom Suite with Office/Den attached and Large Two Car Garage. Separate Guest or Au Pair Suite.  Open House Hours 1:30-4:30.  Convenient San Carlos location makes this a wonderful San Francisco Mid Peninsula location.  Virtual Tour Link: http://www.visualtour.com/show.asp?T=1971497  

San Francisco Mid Peninsula Real Estate Gems: 780 Upton St Redwood City Open House

Stop by this Sunday (Aug 16) and take a look at this wonderfully updated and remodeled three bedroom two bath home with a private den attached to the master bedroom.  The hidden surprise is a wonderfully landscaped private English garden. Listed for $799,000 this home is ready for its new owners. Open House Hours 1:30-4:30 Address: 780 Upton St Redwood City.

San Francisco Mid Peninsula Real Estate Gems: Market Update

Today's post looks at current real estate market conditions  for the San Francisco Peninsula and surrounding areas as recapped by Rick Turley, President, San Francisco Bay Area Coldwell Banker Residential Brokerage:

"Good Week of News Leads to Another

 

Last week we had great housing news with the announcement that May home prices posted their first monthly increase since the summer of 2006 (based on the Standard & Poor’s/Case-Schiller 20-city index).

 

We also learned that sales of newly built and existing homes rose in June for the third consecutive month.  New home construction, though still weak, is the best it has been since the fall.

 

This week the good news continued.  As announced by the Mortgage Bankers Association, Mortgage loan application volume increased 4.4 percent compared to the previous week.  On an adjusted basis, the Index increased 4.1 percent compared with the previous week and 18 percent compared with the same week one year earlier.  In addition, the Refinance Index increased 7.2 percent from the previous week. The Index has climbed about 35 percent above its recent low at the end of June. The seasonally adjusted Purchase Index increased 0.9 percent from one week earlier.

 

Also interesting to note is this week’s release of the National Association of Realtors’ Pending Home Sales Index revealed an increase of 3.6% during the month.  That was 6.7% higher than June 2008.  It was the fifth straight month of increases, the first time that has happened since July 2003.  The jump was much higher than expected with a consensus of industry experts put together by Briefing.com forecasting an increase of just 0.7%.

 

NAR’s Chief Economist Lawrence Yun had this to say, “Historically low mortgage interest rates, affordable home prices and large selection are encouraging buyers who’ve been on the sidelines.”  It seems all of these incentives, much like the Cash for Clunkers program in the auto industry, is finally pushing people off of the fence.  "

 

We continue to see strong open house activity with multiple offers occurring in the entry level price ranges.

 

San Francisco Mid Peninsula Real Estate Gems: Open House 780 Upton St Redwood City

If you missed last weeks open house at 780 Upton Street in Redwood City, I will be hosting another open house this Sunday, August 2, 2009 from 1:30-4:30 p.m.  This home features a private English Garden, updated cooks kitchen with granite counters and stainless steel appliances,formal dining room,  three large bedrooms,  and two updated baths.  There is also an office adjacent to the master bedroom.  Stop by and see for yourself! 

San Francisco Mid Peninsula Real Estate Gems: 780 Upton St Redwood City Open Sunday July 26,2009

Looking for something truly special? Stop by 780 Upton St  in Redwood City this weekend (Sunday July 26)  to discover a truly enchanted English garden, gourmet cooks kitchen, large formal dining room, private office and a private master suite with French Doors leading to a special garden. Open House hours are from 1:30-4:30.  Listed for $799,000 this  three bedroom two  bath home exudes quality. 

San Francisco Mid Peninsula Real Estate Gems: Market Update

Today's post takes a look at some recent Data Quick figures:

“Data Quick Releases Its June Figures With Promising Results

 

DataQuick Information Systems released its June monthly report on the Bay Area Thursday (http://www.dqnews.com/Articles/2009/News/California/Bay-Area/RRBay090716.aspx) to some interesting month-end figures, including increases in sales and median home prices.  In fact, the company reported; “Home sales in the Bay Area jumped to their highest level in almost three years, the result of improved mortgage availability and a perception among potential buyers that prices have bottomed out.  The median price paid for a home increased month-to-month for the third month in a row.”

 

Among the highlights of the story:

 

• A total of 8,644 new and resale houses and condos sold across the nine-county Bay Area in June. 
• That was up 16.1 percent from 7,447 in May and up 20.4 percent from 7,178 in June 2008.
• Home sales have increased on a year-over-year basis the last ten months.
• The median price paid for all new and resale houses and condos sold in the nine-county Bay Area was up 3.1 percent from May, although down 27.4 percent from June 2008. It was the highest since last October.
• The current median is 47.1 percent below the $665,000 peak reached in June 2007. It hit a low of $290,000 in March this year. About half the downturn appears to be price declines, the other half is the absence of high-end home sales in the statistics, which pulls the median down.

 

I did several interviews with local reporters on Thursday in response to DataQuick’s numbers and my message was simple:

 

• While we are still seeing challenges out there, the market continues to show some encouraging signs.
• We’ve seen the low-end of the market doing well for a while, but its starting to cascade to other segments of the market.  We’re starting to see more activity and interest in the move-up market and luxury market.
• There appears to be growing consumer confidence from buyers, perhaps as the stock market has stabilized and real estate is showing improvement.
• Also, buyers in our offices are telling us that they believe that the market overall is starting to recover and they don’t want to miss out on the buyer’s market.”

Source:  Rick Turley, President,

San Francisc Bay Area Coldwell Banker Residential Brokerage

San Francisco Mid Peninsula Real Estate Gems: Market Update

Today’s post reviews San Francisco Peninsula real estate market activity in the upper end and entry level price points.   The entry level market continues to rebound as a result of low interest rates and first time buyers tax credits.  The upper end of the market continues to offer opportunity for the move up buyer. 

“Memorial Day is Over…but will it be a typical Summer Real Estate Season?

 

Memorial Day is behind us and the traditionally moderate summer selling season has begun. Some of our offices are saying that it’s feeling more like a late Spring season right now.  Activity is fairly brisk – it goes without saying that the entry level is hot – short on listing inventory and high on Buyer demand, but there is also good activity to report in the mid-to- high end in most communities.

 

This week NAR announced that existing home sales rose in April with strong buyer activity, as expected, in the lower price ranges.  Nationally, existing home sales increased 2.9% to a seasonally adjusted annual rate of 4.68 million units in April from a downwardly revised pace of 4.55 million units in March, but were 3.5 percent below that 4.85 million-unit level in April 2008.

While most of the sales are taking place in lower price ranges, we are seeing increased activity in the mid-priced markets.  This is a domino effect; a turnaround begins with the lower price range homes and once that sector of the market is stabilized, we begin to see changes in the mid and upper price ranges.  The upper end, while most recently seeing increased activity, still is considered a Buyer’s market. This seems to be fairly consistent in major Metros on both coasts.

 

 Across most of our local MLS’s, there is approximately an average of 14+ month’s supply of homes over $2 million. This is about twice the inventory for the same period last year.  Just the opposite has occurred in the <$800k market.  Estimating the average month’s supply of homes across several MLS’s in this price range, we are seeing about 3 months or less – which is half of what we had this time last year – and is considered to be a Seller’s market.  If you look at the same months where inventory has shrunk in the entry level – you’ll see stabilizing prices, and in some areas, increasing home values.  And of course the higher end has seen declining median price as inventory has been building.  This appears to be the perfect opportunity for the move up Buyer – they have a fairly captive audience for selling, and are coming from a better position to negotiate on the buying side.

 

 It’s also important to note that investors reacted to concerns about the mounting size of our national debt this week.  The yield on the 10 year T-bill increased mid-week as stocks took a hit, and interest rates for mortgages were affected by a ½ to full one percent increase.  Since purchasing power decreases with a rise in interest rates, some Buyers will have an increased sense of urgency to get a signed contract on their new home.

 

You’ll find links to some interesting real estate stories from this week below:

 

• http://www.sfgate.com/cgi-bin/article.cgi?f=/n/a/2009/05/28/financial/f070602D30.DTL&hw=real+estate&sn=002&sc=842
• http://www.sfgate.com/cgi-bin/article.cgi?f=/n/a/2009/05/28/financial/f110028D09.DTL&hw=real+estate&sn=003&sc=766
• http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2009/05/28/BUJT17S3B2.DTL&hw=real+estate&sn=008&sc=607
• http://sanjose.bizjournals.com/sanjose/stories/2009/05/25/daily47.html”

(Source: Rick Turley, President Coldwell Banker Residential Brokerage San Francisco Bay

Area)