Monday, May 10, 2010
Cypress Point Road
This tastefully updated Ocean Colony home overlooking the golf course is highlighted by elegant style and superior attention to detail. Welcoming entry opens to bright formal living room with French doors leading to professionally landscaped backyard. Spacious separate dining room adjacent to beautifully remodeled kitchen with breakfast nook. Ground floor master bedroom has; a fireplace, and marble bath with spa tub.
Frustration About Short Sales
The trend lines for this week continue to suggest that the Active inventory is declining while demand is increasing. Prices may have bottomed out and some factors are in place to see a potential reversal of the downward pricing spiral. As stated in this blog frequently, it is important to note that the pricing and subsequent market value of homes varies dramatically from neighborhood to neighborhood and the condition and amenities of each home.
This week the number of homes in Active status is lower by 1.7% than last week and is 10.62% lower than last year at this same time period. The number of homes in the Pending status is 58.64% higher than last year at this time. Closed sales for April 2010 are 10.53% higher than last April. The number of Closed sales skew the number for Pending sales because longer escrows are required for, including but not limited to; the short sales, tighter lending requirements for buyers and tougher lender requirements for the home.
Below are the numbers by cities and the count of short sales and bank owned properties:
City Active Status Pending Status Closed Escrows
Short Sale/REO Short Sale/REO Short Sale/REO
Belmont 1/2 1/1 7/3
Burlingame 6/0 8/0 2/0
Foster City 2/1 3/0 4/0
Hillsborough 2/1 4/10 0/0
Redwood Shores 1/1 1/2 0/1
San Mateo 26/5 57/10 4/0
Pay particular attention the statistics for the City of San Mateo. 57 Pending sales are short sales, yet there were only 4 of the 44 Closed sales that were reported as Short sales. 10 in San Mateo’s Pending sales were REO and no REO’s were reported as Closed in San Mateo in April. tThese figures would clearly indicate to me that I would pay a nominal premium in price to purchase a home that is not a short sale because once I remove my contingencies, I know the home is mine. But it is unlikely that most buyers will take this advice as everyone is out of the “deal”. And many times they will be missing out of other opportunities while waiting for the bank short pay approval. It will be interesting to see which markets, if any, will be negatively impacted by unemployment, short sales, bank-owned properties, and most likely, interest rates.
Lawrence Yun, Chief Economist of the National Association of Realtors stated in their May 2010 issue; “Mortgage interest rates have been historically low for a long time, but expect them to start climbing soon. Thirty-year fixed rates may rise to 6 percent by December and to about 6.5 percent at the end of 2011; rates were about 5 percent in early April.
It’s tempting to think the Federal Reserve’s recent pullback from mortgage-backed securities purchases will drive interest rates higher.
But since it ended those purchases at the end of March, as it had planned to do, the impact on rates has been negligible. By all appearances, private investors have filled the void and are absorbing the MBS supply, keeping rates down. Predictable macro-economic factors – the continuing high U.S. budget deficit and the recovering economy – are the main reasons rates are likely to climb.”
I have been told that historically, but I haven’t verified, that the market activity increases just as rates start to go up because people want to lock in the low rates before they go higher. The tax credits have been attributed to the surge in first time home buyers along with the affordability factor. Will an increase in rates fuel the market as our economy improves?
This week the number of homes in Active status is lower by 1.7% than last week and is 10.62% lower than last year at this same time period. The number of homes in the Pending status is 58.64% higher than last year at this time. Closed sales for April 2010 are 10.53% higher than last April. The number of Closed sales skew the number for Pending sales because longer escrows are required for, including but not limited to; the short sales, tighter lending requirements for buyers and tougher lender requirements for the home.
Below are the numbers by cities and the count of short sales and bank owned properties:
City Active Status Pending Status Closed Escrows
Short Sale/REO Short Sale/REO Short Sale/REO
Belmont 1/2 1/1 7/3
Burlingame 6/0 8/0 2/0
Foster City 2/1 3/0 4/0
Hillsborough 2/1 4/10 0/0
Redwood Shores 1/1 1/2 0/1
San Mateo 26/5 57/10 4/0
Pay particular attention the statistics for the City of San Mateo. 57 Pending sales are short sales, yet there were only 4 of the 44 Closed sales that were reported as Short sales. 10 in San Mateo’s Pending sales were REO and no REO’s were reported as Closed in San Mateo in April. tThese figures would clearly indicate to me that I would pay a nominal premium in price to purchase a home that is not a short sale because once I remove my contingencies, I know the home is mine. But it is unlikely that most buyers will take this advice as everyone is out of the “deal”. And many times they will be missing out of other opportunities while waiting for the bank short pay approval. It will be interesting to see which markets, if any, will be negatively impacted by unemployment, short sales, bank-owned properties, and most likely, interest rates.
Lawrence Yun, Chief Economist of the National Association of Realtors stated in their May 2010 issue; “Mortgage interest rates have been historically low for a long time, but expect them to start climbing soon. Thirty-year fixed rates may rise to 6 percent by December and to about 6.5 percent at the end of 2011; rates were about 5 percent in early April.
It’s tempting to think the Federal Reserve’s recent pullback from mortgage-backed securities purchases will drive interest rates higher.
But since it ended those purchases at the end of March, as it had planned to do, the impact on rates has been negligible. By all appearances, private investors have filled the void and are absorbing the MBS supply, keeping rates down. Predictable macro-economic factors – the continuing high U.S. budget deficit and the recovering economy – are the main reasons rates are likely to climb.”
I have been told that historically, but I haven’t verified, that the market activity increases just as rates start to go up because people want to lock in the low rates before they go higher. The tax credits have been attributed to the surge in first time home buyers along with the affordability factor. Will an increase in rates fuel the market as our economy improves?
Friday, May 7, 2010
Pinehurst Lane, Ocean Colony
Great value in this approximately 2300 square foot home on the 2nd fairway of Ocean Colony gated community. Spacious 3 bedroom, 2 and a half bath home. Remodeled, ground floor master suite; includes master bath with spa tub, and separate stall shower. Sunken living room; with gas starting fireplace, and vaulted ceilings. Large eat-in kitchen. Bathroom includes tub with jets.
Friday, March 12, 2010
Remodel Tips
Here are five tips for planning a successful home remodel that you can enjoy for many years to come.
1. Compile a list of home remodeling ideas and draft a budget for the work.
Look through magazines and tear out pictures that attract your attention. Make up a poster board and glue the pictures on it to empower your vision.
2. Look for a professional remodeler to help plan the project.
Get referrals from friends who have had work done in the area, consider friends, also, if you have a contractor’s leaning, but your artistic side admittedly is a little stilted, chat with or hire an interior designer. Designers should have some kind of portfolio. Treat them as you would a builder.
3. Check the references and background of the remodeler.
Don’t work with any contractors who can’t give you proof of errors and omissions insurance. (Known as E&O)
4. Agree on a contract.
Many contractors will try to get an open ended contract for time and material. You need a lot of trust or experience with these contractors for this to make sense. Still if you’re opening up the walls of an older house, be prepared for surprises, and don’t expect your contractor to take the brunt of the surprise.
5. Take advantage of the energy efficiency tax credits.
There are many interesting new ideas and opportunities out there today. Some will pay off handsomely when you go to sell the home. If you appreciate the extra quality or energy savings it’s reasonable that a buyer will as well.
1. Compile a list of home remodeling ideas and draft a budget for the work.
Look through magazines and tear out pictures that attract your attention. Make up a poster board and glue the pictures on it to empower your vision.
2. Look for a professional remodeler to help plan the project.
Get referrals from friends who have had work done in the area, consider friends, also, if you have a contractor’s leaning, but your artistic side admittedly is a little stilted, chat with or hire an interior designer. Designers should have some kind of portfolio. Treat them as you would a builder.
3. Check the references and background of the remodeler.
Don’t work with any contractors who can’t give you proof of errors and omissions insurance. (Known as E&O)
4. Agree on a contract.
Many contractors will try to get an open ended contract for time and material. You need a lot of trust or experience with these contractors for this to make sense. Still if you’re opening up the walls of an older house, be prepared for surprises, and don’t expect your contractor to take the brunt of the surprise.
5. Take advantage of the energy efficiency tax credits.
There are many interesting new ideas and opportunities out there today. Some will pay off handsomely when you go to sell the home. If you appreciate the extra quality or energy savings it’s reasonable that a buyer will as well.
Thursday, February 25, 2010
Credit Offer Opt-out
My loan broker just sent me this.
"Hi Everyone
As you may know I am in the mortgage brokerage business.
This week, a client complained to me that she received calls from businesses offering her different credit services the very night I ran her credit report. They knew her personal information and her credit score.
I told her I would find out what happened. What I learned was that the credit repository companies Transunion, Equifax etc) regularly sell that information. I discovered that if a person does not "opt-out" they can sell this sensitive information.
I imagine most of you would not like this to occur to you.
To op-out for the next 5 years you should call 888-567-8688."
I tried, it, it is talking to a computer, and as a tad frustrating, but really didn't take too long,
Goodluck Lee
"Hi Everyone
As you may know I am in the mortgage brokerage business.
This week, a client complained to me that she received calls from businesses offering her different credit services the very night I ran her credit report. They knew her personal information and her credit score.
I told her I would find out what happened. What I learned was that the credit repository companies Transunion, Equifax etc) regularly sell that information. I discovered that if a person does not "opt-out" they can sell this sensitive information.
I imagine most of you would not like this to occur to you.
To op-out for the next 5 years you should call 888-567-8688."
I tried, it, it is talking to a computer, and as a tad frustrating, but really didn't take too long,
Goodluck Lee
Saturday, February 20, 2010
Corporate Controlled Congress
You know in the past, I have preferred to work with loan brokers. The benefit with them was that they could shop the lenders who were hungry and get the best deal currently available to the borrower.
Well welcome to the new corporate America. These independent brokers are finding their hands tied behind their backs by large corporate lenders.
Today a broker told me he could get a loan for a guy with a 680 credit score, with a job and a 400k mortgage, on a 500k home easier then he could get a loan for a millionaire, with no job, who has the money in the bank, and a 770+ credit score, with only 200k owing on his million dollar home.
You know, I hear a lot about the Republican controlled congress, and the Democratic controlled congress, but all I see is the corporate controlled congress. Stand aside little guy, I have all the money.
Well welcome to the new corporate America. These independent brokers are finding their hands tied behind their backs by large corporate lenders.
Today a broker told me he could get a loan for a guy with a 680 credit score, with a job and a 400k mortgage, on a 500k home easier then he could get a loan for a millionaire, with no job, who has the money in the bank, and a 770+ credit score, with only 200k owing on his million dollar home.
You know, I hear a lot about the Republican controlled congress, and the Democratic controlled congress, but all I see is the corporate controlled congress. Stand aside little guy, I have all the money.
Monday, January 25, 2010
Quality Schools in Half Moon Bay
Education on the Coastside has always been a mixed bag. The Coastside has tried some innovative programs such as the Spanish immersion program, at Hatch Elementary, which may have been a good concept, but had problems and resistors. The local elementary schools have won awards, including Hatch, El Granada and Farallone View in Montara over the years. The high school has consistently done well in math and science, but has had fallen behind at times in the humanities.
When Apples for students was available, Half Moon Bay was second to none in parent and student participation in acquiring these computers for the schools. Parent participation in the local schools has long been very good. The high school has not been without its controversy’s, like any high school, but overall I would think it would feel good to have attended it.
Half Moon Bay High School is a relatively small school, thus they not always able to offer all the AP courses or students may have a schedule conflict and need other opportunities to take AP courses. Over the past five years, they have established a relationship with the University of California and their teachers to allow students the opportunity to take selected AP courses online; i.e. AP Physics, AP Chemistry, AP Calculus BC, and AP Economics. For a pdf of the HMBHS Advanced Placement Program visit
http://www.cabrillo.k12.ca.us/hmbhs/print_file/HMBHS_AP.pdf
When Apples for students was available, Half Moon Bay was second to none in parent and student participation in acquiring these computers for the schools. Parent participation in the local schools has long been very good. The high school has not been without its controversy’s, like any high school, but overall I would think it would feel good to have attended it.
Half Moon Bay High School is a relatively small school, thus they not always able to offer all the AP courses or students may have a schedule conflict and need other opportunities to take AP courses. Over the past five years, they have established a relationship with the University of California and their teachers to allow students the opportunity to take selected AP courses online; i.e. AP Physics, AP Chemistry, AP Calculus BC, and AP Economics. For a pdf of the HMBHS Advanced Placement Program visit
http://www.cabrillo.k12.ca.us/hmbhs/print_file/HMBHS_AP.pdf
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