Monthly Archives: May 2011
Commercial Real Estate Markets Stabilizing, Demand Growing – May 25, 2011
Washington, DC, May 24, 2011
The improving economy and job creation mean growing demand for commercial real estate, according to the National Association of Realtors®.
Lawrence Yun, NAR chief economist, said job creation will be the biggest factor moving forward. “Job growth creates demand for commercial space, and the economy should be adding between 1.5 million and 2 million jobs annually both this year and in 2012, with the unemployment rate falling to 8.0 percent by the end of next year,” he said. “Given the minimal new supply in recent years, the rising demand means vacancy rates will be trending down in the commercial real estate sectors. Individual markets are now stabilizing and in some cases rising.”
Fast Facts
Fast Facts
Calif. median home price: April 2011: $293,570 (Source: C.A.R.)
Calif. highest median home price by region/county April 2011: Marin $726,060 (Source: C.A.R.)
Calif. lowest median home price by region/county April 2011: Merced $103,890 (Source: C.A.R.)
Calif. Pending Home Sales Index: March 2011: 128.7 (Source: C.A.R.)
Calif. First-time Buyer Affordability Index: Fourth quarter 2010: 69 percent (Source: C.A.R.)
Mortgage rates: Week ending 5/12/2011 30-yr. fixed: 4.63 fees/points: 0.7% 15-yr. fixed: 3.82 fees/points: 0.7% 1-yr. adjustable: 3.11% Fees/points: 0.5% (Source: Freddie Mac)
Foreclosure activity slows in April
Foreclosure activity slows in April
Foreclosure activity slowed in April, and foreclosure filings decreased in Arizona, California, Nevada, and Washington, according to ForeclosureRadar’s latest report.
Foreclosure filings in California fell to lows not seen since fall of 2008. Notice of Default filings declined 25.8 percent, and Notice of Trustee Sale filings decreased 10.9 percent compared with March. On a year-over-year basis, foreclosure filings were down as well, with Notice of Default filings down 28 percent and Notice of Trustee Sale filings falling 31.2 percent from April 2010.
Foreclosure sale cancellations rose 27 percent compared with March, and activity on the courthouse steps slowed. The average time to foreclose continued to climb, increasing 3.3 percent to 312 days.
Tell Congress that 20% down payments put homeownership out of reach
Tell Congress 20 percent down payments put homeownership out of reach
NAR today issued a Call for Action (CFA) asking REALTORS® and their clients to contact Congress and tell them to make it clear to regulators that a proposed 20 percent down payment requirement was not their legislative intent. Instead, a more reasonable Qualified Residential Mortgage (QRM) that will keep credit-worthy buyers in the market and able to acquire a loan should be implemented.
NAR believes Congress intended to create a broad QRM exemption, and evidence shows that responsible lending standards and ensuring a borrower’s ability to repay have the greatest impact on reducing lender risk, not high down payments.
According to NAR research, 60 percent of recent home buyers made less than a 20 percent down payment, and it would take 14 years for a typical person to save up a 20 percent down payment to buy a median-priced home.
Proposals that require high down payments will drive more borrowers to FHA, increase costs for borrowers by raising interest rates and fees, and effectively price many eligible borrowers out of the housing market.
Click here for more information on how to contact Congress.
Existing-home sales rise 8.3% in Q1 | Inman News
What’s Selling in Carmel, CA; May 10, 2011
85 properties have closed escrow in Carmel since the beginning of the year. The average sales price is $1,253,145, 8% below the average asking price of $1,357,687.
The median sales price for these homes sold in Carmel is $1,011,500. They were on the market for an average of 139 days before they sold.
There are currently 186 active listings in Carmel. With approximately 20 homes selling per month in Carmel and 186 active listings, we have just over 9 months of inventory. This, and the fact that homes are selling for about 8% less than their asking price, are indicators that we’re still in a buyers market.
Interest rates remain low (Interest Rate Information), seller motivation is typically high because there are other real estate opportunities waiting for their money, and Carmel remains and will always be one of the best places to own a home on the planet.
~ Zach
average sales price, median sales price, avg DOM, months of inventory
Escrow Part 3 – What Each Party Does in Escrow
What each part does in escrow:
- Deposits the executed deed to the buyer through the escrow holder.
- Deposits evidence of pest inspection and any required work.
- Deposits other required documents such as tax receipts, addresses of mortgage holders, insurance policies, equipment warranties or home warranty contracts, etc.
- Fulfills any other conditions specified in the escrow instructions.
The Buyer:
- Deposits the funds required, in addition to any borrowed funds, to pay the purchase price with the escrow holder.
- Deposits funds sufficient for home and title insurance.
- Arranges for any borrowed funds to be delivered to the escrow holder.
- Deposits any deed of trust or mortgages necessary to secure loans.
- Approves any inspection reports, the Preliminary Report for title insurance, etc., called for by the purchase and sale agreements.
- Fulfills any other conditions specified in the escrow instructions.
The Lender (if applicable)
- Deposits proceeds of the loan
- Directs the escrow holder on the conditions under which the loan funds may be used.
The Escrow Holder:
- Opens the order for title insurance.
- Obtains approvals from the buyer on the Preliminary Report, pest and other inspections.
- Receives funds from the buyer and/or any lender.
- Prepare documents (i.e. deed) in accordance with escrow instructions.
- Prorates insurance, taxes, rents, etc.
- Disburses funds for the title insurance, recording fees, real estate commissions, lien clearance, etc.
- Prepares a final statement for each party, indicating amounts to be disbursed for services and any further amounts necessary to close escrow.
- Records deed and loan documents, if any, delivers the deed to the buyer, loan documents to the lender and funds to the seller, closing the escrow.
New Homes on Bayonet Golf Course; May 6, 2011
I hope you had a wonderful Cinco De Mayo. The weather has been truly impeccable on the Monterey Peninsula over the past 5 days. It looks like the fog has finally arrived, but that’s no reason not to come see my new listing at 2 Fairway Drive in Seaside, CA. This beautiful new high-performance home is located in a gated community, on the 9th fairway of Bayonet Golf Course.
Be among the first to tour the home this weekend, May 7th, anytime between 10am and 2pm.
Seaside, CA Real Estate – There are currently 40 single-family residential homes listed for sale in Seaside. The average list price is $328,916. 84 homes in Seaside have sold since the beginning of the year. That’s an average of 21 per month. This means that there is only 2 months of inventory in Seaside. That is extremely low and shows us how the low-end market is moving quickly. I believe that there are a number of bank-owned homes that are being held back, and expect to see them released over the Summer when more serious buyers are out and about. The average sales price of home in Seaside since the beginning of the year is $299,549 and they were on the market for an average of 81 days before selling.
Have a wonderful Friday and I look forward to seeing you at 2 Fairway Drive, the new home on the 9th fairway of Bayonet Golf Course, on Saturday.
~ Zach
REALTOR® Magazine-Daily News-4 Keys to Selling in Today’s Market
REALTOR® Magazine-Daily News-4 Keys to Selling in Today’s Market.
4 Keys to Selling in Today’s Market
Home sales and prices are still dropping around the country as huge inventories of foreclosures and short sales continue to weigh on many markets. So how can traditional sellers stand out in a crowded real estate marketplace? CNNMoney.com recently highlighted several keys to getting a home sold in a tough real estate market.
1. Cut your price by a lot. Buyers nowadays want to feel they are getting a “steal,” real estate experts say. But some sellers may be tempted to list a property above fair market value just to test out the market and see if they can get a taker. In the past year, about 25 percent of sellers who initially listed their homes too high ended up having to reduce the price, according to Trulia.com.
“The first 30 days on the market are the most important,” says Elizabeth Kamar, a real estate professional in Norwalk, Conn. That crucial time is when the home gets the most attention and showings. For sellers who aren’t realistic about the price from the get-go, they often end up with less than they would have if they priced it right initially, Kamar says.
Experts also note that if after 30 days on the market there are still no buyers, sellers may need to make a big move.
“When a property sits, people start thinking it must be listed too high,” says Ellen Klein, a real estate professional in Rockaway, N.J. She suggests making a giant price cut–as much as 10 percent of the asking price–which may be extra motivation for buyers to take a second look or attract a new pool of potential buyers seeking a lower price range.
2. Play hardball in negotiations. Sellers shouldn’t feel they have to accept any lowball offer that comes their way. However, if a buyer is willing to negotiate, that’s when sellers need to try to set aside feelings of anger or insult and start to counteroffer, says Mabel Guzman, president of the Chicago Association of REALTORS®. Guzman says the ideal is that you’ll be able to negotiate within $10,000 to $20,000 of an acceptable offer. Using incentives–such as agreeing to leave the appliances–may get buyers to budge in agreeing to a higher price.
3. Stage it. Staging is becoming popular in trying to sell mid-range homes. Professional stagers will help home owners highlight key areas of a home and often rearranges furniture or bring new furniture in, repaint, and get the home looking like it’s ripped from a catalog. Real estate brokers say that proper staging can actually speed up a sale and increase the final sales price too.
4. Get the home in front of as many buyers as possible. The real estate professional needs to get creative in the marketing to make sure the home gets a lot of attention from buyers.“The more eyeballs that get on the listing, the better,” says Katie Curnutte of the real estate information web site Zillow.com.
El Dorado Realty Company 