The number of homes sold in the Bay Area in April was higher than a year ago for the eighth month in a row while the median price fell 41.3 percent to $304,000 as bargainpriced foreclosures continue to dominate the market.
While the median prices is down significantly from a year ago, it edged up slightly on a month-to-month basis for the first time in almost two years, said the report released Thursday by MDA DataQuick Information Systems.
In April, a total of 7,139 new and resale houses and condominiums closed escrow in the Bay Area, a 12.9 percent increase from March and a 13.1 percent gain from March 2008. The 13.1 percent year-to-year gain for home sales is significantly smaller than the 29.1 percent year-toyear gain reported for March home sales.
Last month's median price was 4.8 percent higher than in March, the first time there was a month-to-month gain since October 2007, when the median price increased 1
percent from September 2007.
From March to February and from March to April, the median sales price reflected a 1.7 percent drop, compared to an average month-to-month decline of almost 5 percent in the 12 months ending in January 2009.
"When you see units up and prices going up it points toward stabilization and it's very encouraging," said Rick Turley, president of Coldwell Banker Residential Brokerage in the Bay Area.
A lower concentration of discounted foreclosure resales helps explain why the median sales price has begun to stabilize, the DataQuick report said.
That said, Turley and other real estate observers expect more foreclosures to come onto the market in the coming months now that temporary foreclosure moratoriums have ended. More foreclosures could drag down median prices, which is the point at which half of homes sell for more and half sell for less.
In April, 47.4 percent of existing home sales in the Bay Area involved properties that had been foreclosed upon at some point in the last 12 months, compared to 50.2 percent in March and 52 percent in February.
Turley pointed out that the recent slowdown in foreclosure sales is likely the result of foreclosure moratoriums that were in place until the end of March. Now that the moratoriums have been lifted, expect to see more foreclosed properties to be put on the market, he said.
"We will see more. They are being released more. There was a buildup," he said.
As far as April home sales that closed, Turley said the low-end market is the strongest in the Bay Area.
"We are seeing that the lower-end market is really on fire," he said. "Multiple offers are being made on the low-end of the market due to lots of well-priced distressed properties and historically low interest rates."
As far as higher-priced properties go, Turley said he is seeing pending sales activity for homes in wealthy areas of the Peninsula such as Portola Valley, Atherton and Hillsborough. In the East Bay, Orinda, Danville and Montclair are also seeing pending sales activity for high end properties.
"For the past few months we've seen faint but growing signs that would normally suggest many markets are nearing price stabilization. But we'll need to see those vital signs continue to strengthen into the fall. Job losses and historically high foreclosures levels continue to pose serious threats to housing stability," DataQuick President John Walsh said in a statement.
Inventory levels are tightening up in markets such as Brentwood, Livermore, Walnut Creek and Pleasant Hill, where the median sales price is in the range of $400,000 to $500,000, said Jeff Sposito, president of J.Rockcliff Realtors, an East Bay real estate brokerage. Inventory levels are a measure of the time it would take for homes to be sold in a particular area.
Back in November, inventory levels in those cities ranged from 12 to 14 months whereas now they are in the four to five-month range, Sposito said.
Steve Dhillon, a Realtor with the Fremont office of RE Realty Experts, said inventory levels are down compared to few months ago. Lower inventory helps explains recent price stabilization, he said.
In January, there were 130 foreclosed homes for sale in the Tri-City area of Fremont, Union City, Newark. In April, that number was 85.
"Inventory is low and what I'm also finding is more buyers are entering the market" to take advantage of lower interest rates, low home prices and tax credits for buying homes, he said. "In a year or so, people will look back and think that was a great time to buy," Dhillon said.
By Eve Mitchell Staff Writer Bay Area News Group
Source: Contra Costa Times, May 21, 2009
Tuesday, June 2, 2009
Friday, May 22, 2009
Preparing For Your House Hunt: A Buyer's Checklist
Buying a home is one of life’s most important decision and exciting adventures, but there’s much more to it than picking out the perfect floor plan. Even experienced buyers can find the process a bit complex and overwhelming. That’s why the time you spend preparing yourself before you start your search can be the best investment you makein your new home. As a buyer, it’s important to know the potential pitfalls and stumbling blocks that may pop up during your path to homeownership success. A decision you make now could down the road cause difficulties, delays, or worse, the realization that you made the wrong choice. So here are some things to keep in mind before and during your search:
• Do the math and establish your purchasing power.
Before you start cruising the neighborhood for open houses, you need to know which driveways you can afford to pull into. Meet with a lender who will help you determine which type of financing (fixed rate, adjustable, interest only etc.) will work best for you and how much you qualify for with each type. Also, getting pre-approved can put you in a much stronger negotiating position because it shows the seller that you are a committed buyer.
• Make a timeline.
As the old proverb says, “he who fails to plan, plans to fail.” Sit down with a calendar and set up your goals for the months leading up to your potential move date. Plan on getting pre-approved for a loan and looking for an agent three to four months in advance. The next two or three months will be spent looking for a house and the details of your actual move will be made in the few weeks before moving day. By setting up a timeline for yourself, you are more likely to stay organized, on task and goal oriented.
• Start surfing.
One of the most important tools you’ll need for your house hunt can be found right in your own home or office—the Internet. The majority of homes on the market are listed somewhere on the Internet because real estate agents know the majority of people turn to the Web first when looking for a new home. And why not? With just a few clicks of a mouse, buyers can see pictures, take virtual tours and map out locations for homes that contain features they specifically search for. Start looking on websites like AgentLevy.com, CaliforniaMoves.com, Realtor.com, Trulia.com and Zillow.com for homes that fit your particular criteria. You can register for e-mail alerts to have homes sent to you and your agent so he/she can investigate further.
• Location, location, location.
One can make a list of pros and cons for nearly every home in every neighborhood. That’s why it’s important to narrow your search before you start touring every house in town. Decide what neighborhoods work best for you and your family. Check out school districts, shopping and dining,public transportation, recreational areas and crime statistics.
• List your priorities and prepare to compromise.
The dream home you have pictured in your mind might not exist in reality—or at least not in your neighborhood or price range. Unless you are building a home from the ground up, there are often compromises involved in deciding on a property. So, you may have to sacrifice that extra large bathtub or redwood deck in order to get the home located near your child’s school that has the four bedrooms you require. Make a list of the features you are looking for in a house and rate them on a scale of one to five, with five being a feature you can’t live without. Then, bring your list with you as you tour homes to keep score.
• Would you like French doors with that?
Once you’ve found a home you like, consider the costs of upgrades, repairs or remodels and factor those in to your short or long term budgets. Remember that upgrades may add value to your new home. So it may be worth the extra expense up front, if you are planning on selling your home in the foreseeable future. Given the current buyer’s market, there may be no time like the present to purchase a home. In many markets, home prices have stabilized and in some cases even increased. So the perfect time to buy has likely come and to wait much longer could put you at risk of missing out on great deals and excellent inventory. With this checklist and the right market conditions, you are well on the road to home happiness!
• Do the math and establish your purchasing power.
Before you start cruising the neighborhood for open houses, you need to know which driveways you can afford to pull into. Meet with a lender who will help you determine which type of financing (fixed rate, adjustable, interest only etc.) will work best for you and how much you qualify for with each type. Also, getting pre-approved can put you in a much stronger negotiating position because it shows the seller that you are a committed buyer.
• Make a timeline.
As the old proverb says, “he who fails to plan, plans to fail.” Sit down with a calendar and set up your goals for the months leading up to your potential move date. Plan on getting pre-approved for a loan and looking for an agent three to four months in advance. The next two or three months will be spent looking for a house and the details of your actual move will be made in the few weeks before moving day. By setting up a timeline for yourself, you are more likely to stay organized, on task and goal oriented.
• Start surfing.
One of the most important tools you’ll need for your house hunt can be found right in your own home or office—the Internet. The majority of homes on the market are listed somewhere on the Internet because real estate agents know the majority of people turn to the Web first when looking for a new home. And why not? With just a few clicks of a mouse, buyers can see pictures, take virtual tours and map out locations for homes that contain features they specifically search for. Start looking on websites like AgentLevy.com, CaliforniaMoves.com, Realtor.com, Trulia.com and Zillow.com for homes that fit your particular criteria. You can register for e-mail alerts to have homes sent to you and your agent so he/she can investigate further.
• Location, location, location.
One can make a list of pros and cons for nearly every home in every neighborhood. That’s why it’s important to narrow your search before you start touring every house in town. Decide what neighborhoods work best for you and your family. Check out school districts, shopping and dining,public transportation, recreational areas and crime statistics.
• List your priorities and prepare to compromise.
The dream home you have pictured in your mind might not exist in reality—or at least not in your neighborhood or price range. Unless you are building a home from the ground up, there are often compromises involved in deciding on a property. So, you may have to sacrifice that extra large bathtub or redwood deck in order to get the home located near your child’s school that has the four bedrooms you require. Make a list of the features you are looking for in a house and rate them on a scale of one to five, with five being a feature you can’t live without. Then, bring your list with you as you tour homes to keep score.
• Would you like French doors with that?
Once you’ve found a home you like, consider the costs of upgrades, repairs or remodels and factor those in to your short or long term budgets. Remember that upgrades may add value to your new home. So it may be worth the extra expense up front, if you are planning on selling your home in the foreseeable future. Given the current buyer’s market, there may be no time like the present to purchase a home. In many markets, home prices have stabilized and in some cases even increased. So the perfect time to buy has likely come and to wait much longer could put you at risk of missing out on great deals and excellent inventory. With this checklist and the right market conditions, you are well on the road to home happiness!
Wednesday, March 18, 2009
Clarifying the tax credit - up to $8000!
Purchase a Home Now and Take Advantage of the New Tax Credit of up to $8,000
A benefit that makes your new home affordable
A tax credit is available for first-time homebuyers under the American Recovery and Reinvestment Act of 2009. If you buy a home between January 1, 2009 and November 30, 2009, you may be eligible to receive a tax credit for 10% of the purchase price of your home—up to $8,000. Program highlights include:
1. Any individual (and if married, their spouse) who has no ownership interest in a home during the last three years is eligible.
2. Full credit for single taxpayers with incomes up to $75,000 ($150,000 on a joint return); partial credit for incomes up to $95,000 ($170,000 joint return).
3. Available for the purchase of a single-family home that will be used as a principal residence. Moreover, if the new home you are purchasing is a mobile home or condo, and it is going to be your principal residence, you still qualify for the home buyer tax credit. Even building a home on a land (as opposed to purchasing a ready-made house) qualifies for the $8000 housing tax credit.
4. Homebuyers can reduce (or even eliminate) their income tax liability for the year of purchase by claiming the credit on their tax return.* (*Certain eligibility criteria must be met. homebuyers should consult their tax advisor for further details)
5. If the home is sold before three years, the first-time home buyer (who is now the seller) must pay the IRS the entire amount of the tax credit at closing.
A benefit that makes your new home affordable
A tax credit is available for first-time homebuyers under the American Recovery and Reinvestment Act of 2009. If you buy a home between January 1, 2009 and November 30, 2009, you may be eligible to receive a tax credit for 10% of the purchase price of your home—up to $8,000. Program highlights include:
1. Any individual (and if married, their spouse) who has no ownership interest in a home during the last three years is eligible.
2. Full credit for single taxpayers with incomes up to $75,000 ($150,000 on a joint return); partial credit for incomes up to $95,000 ($170,000 joint return).
3. Available for the purchase of a single-family home that will be used as a principal residence. Moreover, if the new home you are purchasing is a mobile home or condo, and it is going to be your principal residence, you still qualify for the home buyer tax credit. Even building a home on a land (as opposed to purchasing a ready-made house) qualifies for the $8000 housing tax credit.
4. Homebuyers can reduce (or even eliminate) their income tax liability for the year of purchase by claiming the credit on their tax return.* (*Certain eligibility criteria must be met. homebuyers should consult their tax advisor for further details)
5. If the home is sold before three years, the first-time home buyer (who is now the seller) must pay the IRS the entire amount of the tax credit at closing.
Tuesday, March 17, 2009
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