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Bay Area Prices Down An Average of 44% From 2007 to 2009

Thought that you would like a quick visual on the state of the Bay Area housing market.

The average price decline for the Six County Bay Area for the period 2007 to 2009 was -44%, arguably the peak of the market to the present day.  However, the story isn’t uniform in every region, or in every neighborhood.  The largest decline was in Contra Costa County, at an average decline of -52%, and the smallest decline was San Francisco County at -20%.

Whether you are buying or selling, estimating value today is a challenge.  Always check the micro-markets of the neighborhoods that interest you.  Recent monthly stats indicate that prices in the San Francisco area may be stabilizing and growing.

 

Marin Real Estate January 2010 Update

What is happening for Marin Real estate in January? It is often said that winter is a great time to purchase real estate in Marin.  Many of my Marin buyer clients have purchased wonderful homes at great values in winter because the homes may not show as well or because the sellers have decided that they are committed to opening the next chapter in their lives and therefore will sell their home at “market value”.  Market value is what a willing AND able buyer will pay.  Today that means a lot of different things.  What would you do if you encountered one of these 5 recent Marin Real Estate situations that all took place in Southern Marin in January?

1)     The day before this house was to close and after removing contingencies the buyer walked. No fault of property; everything was ready to close--but the buyer lost their enthusiasm for the house overnight and decided to walk costing them 3% of purchase price.

2)     The seller, after diligently working to prepare their home for sale and after less than a week on the market received an all cash offer well above the list price with only 3 days to remove contingencies. But the seller then changed their mind and decided not to sell. Buyer then offered more money hoping to sway the seller to no avail. Seller pulled the house from the market.

3)     A high quality home underpriced by listing agents received 10 offers.  Agents on the listing side were not easy to work with and did not divulge critical information necessary to make timely decisions. One of the highest bidders, an all cash offer walked because they couldn’t get the info they needed.

4)      A Short Sale (seller owes more than house is worth) received 8 offers but no one knows what the bank will accept and how long it will take to negotiate-could be months, putting buyers’ needs in limbo.

5)     A house on the market for over 100 days at a reduced price finally went into escrow for a first time buyer. The Appraisal doesn’t appraise due to issues pertaining to mold and the lender won’t lend on it.  All these situations are real and require a tremendous amount of skill and diligence to work with to have successful results. It also takes a committed team of Real estate agents that are knowledgeable and professional to work through these issues which at times can be challenging. But you never know..it is my job to make sure that your transaction is as smooth and seamless as possible and you never know..it just might be that way!   Check my website for the Marin Market Update for statistics on January activity by city and price point. Enjoy!

The Federal Reserve Board Meeting

 

January 26, 2010  Important information from one of my trusted mortgage brokers, Jill Carothers at All California Mortgage: Jill CarothersMortgage AdvisorAll California Mortgage This e-mail address is being protected from spambots. You need JavaScript enabled to view it 415-686-0699  The Federal Reserve Board (the Fed) is holding the first of its eight scheduled meetings for the year, which takes place at approximate six week intervals.  This first meeting is particularly important, with two issues requiring our close attention. The first is the Fed's language.  In all policy statements during 2009, the Fed's statement said that present economic conditions should "warrant exceptionally low levels of the Federal Funds Rate for an extended period."  If the Fed  does not comment that the Fed Funds Rate will remain low for an "extended period," this will signal a change in their accommodative policy.  The result will be a sell off of mortgage bonds, causing home loan rates to move up.   The second issue deals with the upcoming expiration of the mortgage backed security purchase program.  The Fed has been saying that this program, which has ensured liquidity and low rates in home lending, will end as planned on March 31st.  But there has been speculation that the Fed may add to their purchases and extend the deadline.  With the expiration nearing, the Fed's guidance on this topic will be very important to the direction of mortgage bond prices and home loan rates.     So it is the language indicating the course of the Feds policy over the next several months rather than policy changes which will dictate the market reaction.  The Fed Funds Rate is expected to remain unchanged at this meeting.     Thank you Jill for this….together we will be keeping a close eye on the news coming from the meeting and analyzing what effect any changes could have on our clients.

 

2009 YTD Update

 

As we welcome the new decade of 2010 I thought I would provide you with some data in regard to 2009 and some thoughts for 2010.  I hope this information is helpful to you or someone you know who may be considering buying or selling In Marin.  It is difficult to make predictions this early in the year but,  I am noticing that buyers are ramping to make purchases in 2010 that they may have been putting off.  I think many buyers feel that finally we may have hit the “bottom” that they have been waiting for. Interest rates will remain historically low but are anticipated to creep up in 2010 to be in the 6’s.  Buyers notice a lack of inventory (supply) and are hopeful for more choices as the year moves forward.

Meanwhile, sellers are increasingly more aware of the reality of the market and are making decisions based on lifestyle.  Some sellers have made decisions to stay put for now and others are deciding that transitioning to a new chapter in their life is more important than waiting for a perceived increase in sales price at some unknown point in the future.  

The question is will the amount of buyers jumping into the market create a positive year for sellers?  Or will they just be hunting the bargains, REO’s etc… That remains to be seen.  Ideally we will see Days on Market (DOM) go down, see a stabilizing of prices and a higher list price to sales price ratio YTD 2010 vs.2009. 

As always,  I welcome any comments or discussion that you would like to have and am grateful for your referrals.   My blog is www.MyMarinHomesblog.com

Warmly,

Linda