Pre-Turkey Day Takeout
http://goo.gl/SkKm8
Tuesday, November 22, 2011
Monday, November 21, 2011
How to Get Crispy Skin ? Thanksgiving Tip of the Day
For crisper skin, unwrap the turkey the day before roasting and leave it uncovered in the refrigerator overnight. Need help tackling the big bird? Continue reading Food Network’s Top 10 Turkey Tips. Find the perfect turkey for your feast, starting with our most popular ever: Alton’s Good Eats Roast Turkey, an outstanding 5-star standby. Browse [...]
http://goo.gl/hkgde
Tuesday, November 15, 2011
Market update...For the week of November 14, 2011 for Bay Area Housing
Investors Playing Major Role in Bay Area Housing Market
By Rick Turley
While the Bay Area housing market has had its ups and downs much of this year, a couple of segments of the market remained resilient through much of 2011. In previous columns, I’ve talked about the strong rebound in the luxury market from Silicon Valley up through Marin. But one other sector has also played an important role in keeping the overall real estate market going: the investment segment.
According to DataQuick, the La Jolla-based real estate information service, absentee buyers – real estate investors for the most part – bought one out of every five single-family homes and condos in August. Buyers paying cash accounted for more than a quarter of sales. And short sales – those transactions where a home sells for less than the homeowner owes on the mortgage – added up to another 20 percent of sales.
The trend has caught the attention of the local news media with the San Francisco Chronicle and San Jose Mercury both running long articles on the topic in recent weeks.
In her article, Chronicle reporter Carolyn Said noted that, “Real-estate investors have become a potent force in a moribund housing market…” She went on to say that, “despite record low interest rates, many consumers simply don't have enough confidence in their economic outlook to buy houses. Investors have kept prices from falling further…”
Today’s market is extremely attractive to investors. Record low mortgage interest rates, coupled with very favorable asking prices for distressed properties and other entry level homes, mean that rental income can easily cover the expenses for a new landlord owner. And given the volatility in the stock market and with other investments, real estate is looking like a better and better alternative.
While not everyone would agree, I think real estate investors are playing an important role in our market. When they buy, they’re often upgrading properties that in many cases are badly in need of maintenance. They’re helping to clear out the supply of vacant, bank-owned properties that can be a blight on neighborhoods. And in general, they’re reducing the huge inventory of distressed properties that serve to keep all home prices down.
"The market would be quite a bit sicker were it not for investors snapping up a lot of the properties," Andrew LePage, an analyst at DataQuick, told the Chronicle. "They account for a meaningful portion of the demand. To the extent to which there's at least a temporary floor under this market, they've helped to build it."
However, real estate investors – many of whom are paying all cash for entry-level properties – are making it hard for some first-time buyers and others to compete for those homes. Given the choice, it’s understandable that a seller would opt for a cash offer that’s likely to close quickly rather than take their chance that a buyer can secure mortgage financing.
Unlike past investors, today’s new landlords are generally not expecting to quickly flip a home for a profit, according to the Chronicle story. Instead, they see are seeking reasonable returns by simply owning and managing a rental property.
Realtors who work with these buyers say that many are first-time investors who like the long-term potential of investing in real estate over other investment vehicles. With prices and interest rates this low, they reason, there may never be a better time to jump in.
It’s also important to remember that most housing recoveries are preceded by a rise in rental housing rates. This has two effects, both positive for our housing recovery. The rise in rents attracts more investors as purchasers. As we noted earlier, they also unfortunately cause stiff competition among first-time buyers; but in some areas these investors are necessary to help stabilize hard-hit foreclosure areas and thus stabilize pricing. The other effect of rising rental rates? It causes more renters who qualify for homeownership to consider a purchase, especially with today’s interest rates.
As we approach a New Year, we are expecting more and more ofboth types of buyers in 2012 to come to the same conclusion.
Below is a market-by-market report from our local offices:
North Bay – Our Greenbrae office just reduced the price of a home in Kentfield in the $2.2 range and received multiple offers. Buyers are out there and perhaps coming out a little more aggressive in the search now. The Chronicle article on investors buying local homes has been encouraging for buyers to get into the market. In Northern Marin, agents are reporting a definite increase in open house traffic. We are seeing more multiple offers on well-priced properties. There has also been an increase in floor calls and walk-ins of interested buyers. In Petaluma, the competition is fierce for buyers in the under-$500,000 price range. The inventory is dwindling and well-priced properties are snatched up as they come on the market. With Sonoma County featured as one of the top 20 destinations by National Geographic, many buyers are trolling the open houses. First-time customers are becoming more and more common. The Santa Rosa market remains steady with some increase in REO inventory and a number of new escrows. Finally in Sebastopol, the majority of activity is in the lower end of the market with emphasis under $400k. One new listing in the country, priced at $399k, attracted over 22 groups. We are seeing a little activity in the move up range of $600-$800. Low appraisals continue to be problematic.
San Francisco– Our Lakeside office manager declares “outstanding lenders or cash” - that is what it takes to buy a home in this market. In spite of the dramatically low interest rates, deals are being held up by the lender’s increasingly high hurdles for property qualification. Buyers are being weighed down by poor lender choice. Still, we are finding a large number of cash buyers who can sail through transactions without the underwriting obstacles. Meanwhile, the Market Street office says sales activity is increasing and they finished a strong October with new transactions. The strategy seems to be price to sell or even price to induce multiple offers. The average list-to-contract time frame is less than three weeks, and on average they are selling at or slightly above asking price with 64% of the transactions seeing multiple offers. The Sunset office reports decreasing inventory but steady sales while the Van Ness office says inventory and sales activity have been steady in recent weeks.
SF Peninsula— Our Burlingame offices report that light inventory is fueling multiple offers for well-prepared and priced homes. There are waiting buyers out there. One home had over 200 attendees at open house and sold on the spot to a well-prepared buyer who had lost out in other recent multiple offers. The home had been carefully prepared and staged by the agent down to the last detail. In the Previews market, inventory is beginning to come off for the holidays if it has been on the market for a while, with sellers anticipating a better, more optimistic spring. At the same time there are some fabulous buys in Hillsborough at this time. Nov. Dec. could be the best time to negotiate with little competition. Across the hill in Half Moon Bay, the market has for $750k to $1m homes has been slow. However, homes in the $550k range move quickly, as do second homes over the $1.5m, sometimes for all cash. Our Menlo Park offices say inventory continues to be scarce. Open houses have been busy and the office is getting a lot of calls and walk-ins from interested buyers. In Palo Alto, the market changes on a weekly basis. In general, there’s very short inventory – including Palo Alto and surrounding communities, Mt. View particularly, compared to last year. The move-up market is slow and as a result we are slow to see new inventory. There also has been a serious lack of inventory, according to our Redwood City office, with most sales activity in the lower-price ranges. Sales activity has slow in the San Mateo market, possibly due to a lack of inventory, the uncertain economy or the upcoming holidays. Finally in Woodside, both inventory and sales activity are down in a fairly quiet market.
East Bay– Berkeley agents are busy working with buyers, getting price adjustments from sellers who want to move their properties, and telling renewed horror stories of appraisers creating obstacles by reading online disclosure packets and demanding repairs/clearances. Our Castro Valley office reports increasing inventory and steady sales activity. Inventory continues to decline in the Danville area while the buyers are becoming more active. Inventory stands at about 2 ¼ months in the San Ramon Valley - San Ramon and Danville are very active, while Alamo and Blackhawk are very slow. Our Livermore office reports inventory is increasing while sales are steady. In Fremont, both sales and listings are increasing. Our Oakland-Piedmont office says listings have picked up with clients making the decision to get their house sold before year-end. Open house activity was steady even at properties that have been held open for several weeks. Buyers are still being very discerning and don’t exhibit any urgency in writing an offer quickly. Our Orinda manager says it’s becoming more difficult to obtain loan docs and loan approval. Extensions of escrows are becoming more common. In Pleasanton, the local market has been steady with buyers still out there looking. Finally in Walnut Creek, our local office says inventory remains low and there are multiple offers on all well-priced properties.
Silicon Valley– Steady sales activity is reported in Cupertino. With inventory declining, open houses are busier than ever. In Los Altos, sales activity is increasing including a small increase in the $2 million and up market. Open houses are well attended at new single-family listings. Our Los Gatos manager says that overall, the high end continues to remain strong. Inventory remains low in most entry-level markets. The San Jose Almaden office says sales activity has been steady. Properties are selling, but buyers wish there was more to choose from. Pending sales in this region are 10% up over last year at this time but listings are down 33%. Low-end buyers are having trouble competing against all-cash or large-down payment buyers. All properly priced listings are getting multiple offers. The San Jose Main office also has seen a continued drop in inventory but activity at open houses is very strong. There are multiple offers on most homes in a variety of price ranges. Low interest rates and low inventory are main factors in the multiple offers we are currently experiencing. And our Willow Glen manager reports that regular sales are taking a little longer to close than expected and banks are slowly approving short sales. The Saratoga market seems like it’s slowing, which is normal this time of year.
South County– The Gilroy and Hollister markets both saw an uptick in REO listings coming onto the market. Open houses have been fairly well attended, but a lot of buyers are sitting on the fence. Sales are slow. Inventory is steady, but low for both markets. Gilroy has 3.3 months of inventory and Hollister has 3.6 months of inventory. Our Morgan Hill manager says that as the year winds down, the number of Morgan Hill listings has increased dramatically, but the ratio of listings to sales has decreased. In January 2011 there were only 138 listings available in Morgan Hill—with 27 closings (20%). October showed 311 listings with 51 closings (16%). While sales are up from the first months of 2011, a lower percentage of listings are actually selling. Prices on the other hand are down. The average sales price of a single-family home in Morgan Hill has dropped from a high of just under $600,000 to about $475,000 (a 25% differential). Morgan Hill remains a buyer’s market—many listings, good prices and great interest rates.
Santa Cruz – As we move into November and toward the end of the year and the holiday season, sales continue to be steady in the Santa Cruz area. There is definitely more activity in the under $600,000 price range, heavily influenced by short sales and REO business. We are finding some of the banks on the short sales are reacting much more quickly and we are seeing a shorter process with some of lenders, Chase being one of them. On “organic deals” financing is the biggest hurdle and agents need to pre-approve and counsel their clients through the buy process. Appraisals are all over the map, and we have had a couple of deals where the property did not appraise and the buyer and seller were able to come to a successful resolution and the sale went through. It is all about perceived value for the buyers. The home has to be a really good deal – and sometimes even then, the property may sit on the market.
Monterey Peninsula –The beat goes on with the steady activity in the Monterey Peninsula marketplace. These low mortgage rates seem to have brought some of those hanging-back buyers into the market, especially in the lower prices ranges. In looking through the lower priced homes in Seaside and Marina, for instance, we see that most of them are pending with very few “actives” on the market. And on the other end, the higher-priced properties, the volatility in the stock market may be contributing to increased sales there, many of them all cash. While we normally would be beginning to slow down about now, we continue to have a pretty consistent number of sales each week.
Monday, November 14, 2011
Make Room in Your Cabinets ? Thanksgiving Tip of the Day
http://bit.ly/u0RHL7
Shop for non-perishable goods now. You can buy flour, sugar, brown sugar, corn syrup, canned pumpkin, rice and cranberries, all before the crowds descend. Wait until the day before Thanksgiving to buy fresh vegetables, seafood and bread. Let the Thanksgiving Countdown Begin ? 2 Week Checklist Browse more of Food Network?s Thanksgiving recipes and tips.
Economic Reports affecting home loans this week!
This week brings us the release of six monthly economic reports for the markets to digest. With very important data scheduled for release two different days and relevant data four of the five days, we will likely see a fair amount of volatility in the markets and mortgage pricing this week.
There is nothing scheduled for release tomorrow, leaving the bond market to movement in stocks and overseas news. As of this evening, it appears that bonds are going to react negatively to news from Europe, meaning stocks may start the week off in positive ground. That can change between now and the opening bell tomorrow morning, but as of now it appears we may see some pressure in bonds and a possible increase to mortgage rates tomorrow.
The first data is one of the most important reports of the week. The Commerce Department will give us October's Retail Sales figures early Tuesday morning. This data measures consumer spending, which is considered extremely important to the markets because it makes up two-thirds of the U.S. economy. It is expected to show a 0.4% rise in spending, meaning consumers spent much less last month than they did in September. A larger increase would be considered negative news for bonds because large increases in spending fuels an economic recovery and raises inflation concerns in the marketplace. If Tuesday's report reveals a smaller than expected increase in spending, bonds should react favorably, pushing mortgage rates lower. If it shows a larger than expected increase, mortgage rates will likely move higher.
Also Tuesday is the release of October's Producer Price Index (PPI) from the Labor Department, which is one of the two key inflation readings on tap this week. The PPI measures inflationary pressures at the producer level of the economy. There are two portions of the index that are used- the overall reading and the core data reading. The core data is the more important of the two because it excludes more volatile food and energy prices. If it reveals stronger than expected readings, indicating that inflationary pressures are rising at the manufacturing level, the bond market will probably react negatively and cause mortgage rates to move higher. Analysts are expecting to see a 0.2% decline in the overall reading and a 0.1% increase in the core data.
Wednesday also has two reports scheduled that will likely influence mortgage rates. The first is October's Consumer Price Index (CPI) at 8:30 AM ET. This index is similar to Tuesday's PPI, except it measures inflationary pressures at the more important consumer level of the economy. We consider this report as one of the most important reports we get each month. The overall reading is expected to show no change from September’s level while the core data is expected to rise 0.1%. Weaker than expected readings would be good news for bonds and mortgage rates, while larger than forecasted increases could lead to higher mortgage rates Wednesday.
October’s Industrial Production data will be posted mid-morning Wednesday. It gives us a measurement of manufacturing sector strength by tracking output at U.S. factories, mines and utilities. It is expected to reveal a 0.4% increase in production, indicating moderate strength in the manufacturing sector. Stronger levels of production would be considered bad news for the bond market and mortgage rates, but this data is not as important as the CPI readings are. A significant surprise in the CPI would likely make this data a non-factor in Wednesday's mortgage pricing.
Thursday’s only monthly data is October's Housing Starts. This data gives us an indication of housing sector strength, but usually does not have a noticeable impact on mortgage rates. I don't expect this month's version to be any different unless it varies greatly from analysts' forecasts. It is expected to show a sizable decline in starts of new homes.
The final report of the week will come from the Conference Board late Friday morning when they release their Leading Economic Indicators (LEI) for October. This is a moderately important report that attempts to predict economic activity over the next three to six months. It is expected to show a 0.6% increase, meaning economic activity will rise fairly rapidly over the next couple of months. Generally speaking, this would be bad news for bonds. However, since this data is considered only moderately important, its results need to vary by a wide margin from forecasts for it to affect mortgage rates.
Overall, look for Tuesday or Wednesday to be the most important with very important reports scheduled those days. It is difficult to label any particular day as the quietest day, but Thursday is a good candidate. The key releases will be Tuesday's Retail Sales and Wednesday's CPI reports. They will probably determine whether rates close the week higher or lower than tomorrow's opening levels. Since this is likely to be a fairly active week for mortgage rates, it would be prudent to maintain regular contact with your mortgage professional if still floating an interest rate.
Information courtesy of Joe Patterson with Princeton Capital. (408)674-7438.
Friday, November 11, 2011
Occupy Movement...from the viewpoint of a member of the middle class and part of the 99%
Thanks Occupy wherever movement for costing me and my family and everyone else in the middle class thousands to clean up your mess! You harbor those with aimless, mindless ambition, murderers, junkies, those who are bored with their situation but unwilling to do what they need to do to make a change! I realize there are two of you with honorable intentions but the homeless and the druggies are not helping you to communicate your message...by the way...what is your message? That's right you aren't sure!!!
Tuesday, November 8, 2011
Some good news on South Bay home prices
http://bit.ly/rPuhk7
South bay making news with increasing projected home prices. Would love your thoughts...
South bay making news with increasing projected home prices. Would love your thoughts...
Monday, November 7, 2011
Auction experience Part Two
As the "bike messenger" announced the various properties, in every neighborhood from Saratoga to South San Jose, no one bid on the properties. So when no bids were received the bank just took the property back and the foreclosure sale was complete on those properties. That happened with 99% of the list. However, when the home my client was interested in was announced, there were three different bidders. The auction bids started at 245K and the winning bid was 245,100. The bidder did not have to go higher and that lucky investor won the property. As my client went largely to see how the process worked he did not move forward on the bid. I would still be cautious before investing in an auction home unless you have done a previous title search. It can be costly to clear secondary liens and tax liens and those must be cleared or satisfied for title to be clear and to transfer title to a subsequent buyer in a flip.
If you are an investor with a team of rehab specialists and with some title support, then an auction may be a good option. My advice, gather as much information on the property prior to auction and then move forward with eyes wide open.
Thoughts...?
One-Hour Improvement Projects
http://aol.it/vXEROT
"I always like to see a front door with a fresh coat of paint. It makes a home really welcoming. Just sand down any old lumps or peeling paint patches, then brush on some exterior paint (semigloss) in a color that stands out."
Wednesday, November 2, 2011
What to do with the Pumpkin that remains...Squash and Pumpkin Soup
http://bit.ly/tldIcx
There are so many beautiful (and strange-looking) squash at the market right now. Sure, they’re great for a table centerpiece for Thanksgiving, but why not cook with them as well? Turn acorn, butternut, fairytale (yes, fairytale) and more into a delicious fall soup. Add in some pumpkin and you’re cooking the best of what fall [...]
Tuesday, November 1, 2011
Buying a home at auction...different experience
I accompanied an investor client recently to the courtroom steps in downtown San Jose. He had his eye on a Victorian that was going to auction. The home was recently sale pending at a price of $300,000 but the bank was auctioning the home for $245,000. The experience itself is one worth noting. As there are many steps in the process to buying a home at auction, I will be sharing the process in several blogs and would love to hear of anyone else's auction experiences. As a Realtor, this is not our stage, but many of my clients are now purchasing at Auction and then holding the properties as investments or selling them for a profit (aka flipping).
When we arrived we were the only ones at the back of the courthouse downtown and there was no indication that this was the place. After awhile, a gentleman who looked like a bike messenger joined us. He did not indicate that he was the auctioneer, a competing buyer or otherwise. He just showed up. As 10am approached, the auction hour published by the trustee...several more people arrived, it was a very eclectic group. At 10am, the "bike messenger" opened a black notebook and announced that he would read the properties for sale at auction that day, and he told us quickly that a prospective buyer would need to present good funds, a cashiers check, for the exact bid amount. As a Realtor, this was all a bit suspicious, this did not appear to be a person licensed to sell or auction Real Estate, no business cards, no name tags, no company reputations to give us any sense of security. Yet, my client was expected to present his cashiers check to this gentlemen and then be prepared to take ownership immediately. There are no disclosures, no title reports, no tax statements, Nada! I suppose that goes against my grain as the details are the key to protecting my clients. Stay tuned for more of the auction experience. Again, I welcome your comments.
A Few Tips for Homeowners Before You Begin the Short Sale Process:
http://bit.ly/w4V79d
As a homeowner you should carefully consider your options as soon as you experience challenges when it comes to your financial ability to maintain your home (see “Know Your Options” on this website). Many of the options are geared … Continue reading
Subscribe to:
Posts (Atom)