3rd Quarter 2011- Hot Pockets and Distressed Owner Services

Mortgage rates dipped below 4% for 30 year, conventional mortgages and just in time, as conforming loan limits (the maximum mortgage amount that will be guaranteed by Fannie Mae, Freddie Mac, or FHA) for Marin have been reduced from $729,750 to $625,500, effective October 1, 2011. So, assuming a 20% down payment, homes costing more than $781,875 will require "jumbo" mortgages and "jumbo" pricing. This compared to $912,188 at the old level. Still a great time to be a Buyer and indeed to be a Seller as the low mortgage rates mean Buyers have more to spend and more Buyers will be able to qualify.

Our market continued largely as it has for the last 2 quarters: the number of homes sold is increasing, but prices remain weak. Homes are selling and selling well, if they are priced realistically for this market. We saw flurries of activity this quarter (yes, with multiple offers) in some of the higher priced segments of some cities. These hot pockets were transitory however. Expect this to continue until jobs, jobs and jobs start to recover.

And finally, while I have been successfully advising buyers and sellers on short sales for some time, I am pleased to announce that I now hold the SFR (Short Sale & Foreclosure Resource) certification from the National Association of Realtors. If you know anyone who wants/needs information on the plusses and minuses of a short sale, I guarantee a confidential, informative and helpful conversation.

Pragmatism - 1st Quarter 2011 Update

In general terms, the market continued to show solid gains in the number of homes selling, with 382 single family homes selling in Q1. (509 units, when condos are included). Prices, however, were lower in 8 of 13 of Marin’s communities, demonstrating that Sellers are still having to be pragmatic in this market. The rough decline since the “peak” in 2007? Approximately 20% overall in Central Marin. I’m hearing less from Sellers about “waiting for the market to ‘recover’ ” before selling, though many continue to rent out their properties. If that can be done at a positive or neutral cash flow, great. If not, the monthly negative cash flow pushes the so called “recovery” date even further into the future. As I’ve stated before, the decision to act or not, really depends on where you want to go next, literally and figuratively. Buyers continue to be extremely well informed on prices and relative values, thanks to the internet. Most will hold out for the right home, in the belief that prices will remain stagnant or weak. Continued low interest rates are benefitting both Buyers and Sellers. Look for an active Q2 as sales delayed from Q1 due to wet weather, get underway.
My promise to you remains unchanged: candid, truthful and professional real estate advice and services. Always!

Market Update- "Consolidation Continues"

For the most part, Sellers came to terms with the "new" market in 2010. Slightly more than 3 years after the first credit difficulties emerged in the sub-prime market (8/07), the data show an increase in the number of single family homes sold in Marin, 2010 v. 2009, in all cities except Ross and Novato. However, the prices at which sales are occurring were lower in 2010 than in 2009 in over half of our cities. In other words, despite lower prices in some towns, Sellers are indeed moving ahead with their lives. Sales were advanced into Q1 2010, due to tax incentives aimed at both new and experienced Buyers, which then expired in April. In 2011, I expect a continued pragmatism on the part of market participants. We’ll likely see more short sales and indeed foreclosures in the middle and higher end of the market. Mortgage rates are still extremely attractive, and represent an opportunity for both Buyers and Sellers.

My promise to you remains unchanged: candid, truthful and professional real estate advice and services. Always!