Bay Area Real Estate Sales.com Newsletter

March 2006

 

IN THIS ISSUE:

 

An Update on Liz's Micro Preemie Daughter

Marin Home Sales Statistics

Bubble or Balance?

Calif. Median Home Price Up 13.8% From 2005; Sales Decrease 24.1%

How much work should you do before selling?

How can I reduce my closing costs?

Homeowners Anticipate Further Home Price Appreciation

Fast Facts

 

An Update on Liz's Micro Preemie Daughter

 

My daughter Kaitlyn has been home from the Neonatal Intensive Care Unit for about 6 weeks and is doing great, with the exception that she is having some major feeding issues which may involve surgery.  She is over 8 pounds (a far cry from the 1 pound 11 ounces she was at birth).  Kaitlyn was born 3 months too soon, on October 4, 2005, along with her twin sister who sadly didn't survive.  If you'd like to see current pictures or read updates, you can go to my personal website at:  www.aLizard.com

 

Marin Home Sales Statistics

 

Amid news headlines that the National housing Market is in a bubble, According to the statistics below, as in last month, the March Marin Real Estate Market is considered "Balanced" ..HOWEVER this statistic is for the overall AVERAGE Marin real estate market.  It is very important to look at the specific category of house that fits your home or home that you'd like to purchase.  For example, homes priced under $1,000,000 are still considered to be a "Sellers Market".  Homes priced from $1M - $1.5M are in a "Balanced" market, whereas last month it was a "Buyers Market"; and it's only the homes over $2M  that are in the "Buyers" Market categories.  So even though the overall average shows that Marin is in a "Balance" it is misleading due to the high-prices and shortage of "the perfect homes" in Marin.

 

Additionally, looking at different cities in Marin is also interesting: San Anselmo is in an "Extreme Sellers" market; Mill Valley and San Rafael are in "Sellers Markets"; Novato is in a "Balanced Market"; Corte Madera, Greenbrae, Kentfield, Ross, Sausalito and Tiburon are alll in a "Buyers Markets"; Belvedere and Fairfax are in "Strong Buyers Markets, and Larkspur is in an "Extreme Buyers" Market.

 

Interest rates, although are now over 6% are still historically low.  During this time last year (2/05) there were 659 homes on the market, as compared to 894 this March.

 

 

 

 

 

 

 

**Based on information from Bay Area Real Estate Information Services, Inc. (BAREIS).   Information has not been verified, is not guaranteed, and is subject to change and is based on one period of time."

***Includes all: Sale Pending & Contingent properties

 

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Bubble or balance? Marin's once red-hot housing market seems to be cooling

From:  Marin Independent Journal  3/18/06

 

There is a shift in Marin's real estate market in which buyers are becoming more selective, homes are staying on the market longer and sellers are more patient, some sticking it out to get the price they want, some asking for a bit less than they might have expected just last year.

 

Marin's median home price, not including condominiums, reached a record $943,000 last month, industry analysts reported Thursday. Local experts say prices are increasing, but not at the rate they once did.

 

Total Marin home sales, including condos, fell 17.5 percent in February, when measured against the previous February, as the median price rose 10 percent. In January, the number of properties listed for sale dropped about 7 percent from the previous year.

In February, the amount of time homes remained on the market more than doubled from a year earlier.

To read the entire article go to: Marin IJ Housing Article

 

Calif. Median Home Price Up 13.8% From 2005; Sales Decrease 24.1%

 

LOS ANGELES (Feb. 28) - The median price of an existing home in California in January increased 13.8 percent to $551,300 and sales decreased 24.1 percent compared with the same period a year ago, the California Association of REALTORS® (C.A.R.) reported today.

 

"We expected January sales to fall below the record that was set in January 2005. The decrease was intensified by interest rates crossing the key psychological threshold of 6 percent in the last quarter of the year, and by weakness in consumer confidence due to the residual effects of Hurricane Katrina," said C.A.R. President Vince Malta. "However, interest rates remain near their historic lows, and we expect sales activity to accelerate as we move into the traditional selling season."

 

Closed escrow sales of existing, single-family detached homes in California totaled 500,470 in January at a seasonally adjusted annualized rate, according to information collected by C.A.R. from more than 90 local REALTOR® associations statewide. Statewide home resale activity decreased 24.1 percent from the 659,410 sales pace recorded in January 2005.

 

The statewide sales figure represents what the total number of homes sold during 2006 would be if sales maintained the January pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.

 

The median price of an existing, single-family detached home in California during January 2006 was $551,300, a 13.8 percent increase over the $484,580 median for January 2005, C.A.R. reported. The January 2006 median price increased 0.5 percent compared with December's $548,640 median price.

 

"The California real estate market is beginning to experience the soft landing that we expect to be the underlying dynamic driving the housing market this year," said C.A.R. Vice President and Chief Economist Leslie Appleton-Young. "The number of homes for sale has risen to a six-month supply, which will translate into a slower rate of price appreciation than we experienced in 2005."

Highlights of C.A.R.'s resale housing figures for January 2006:

 

- C.A.R.'s Unsold Inventory Index for existing, single-family detached homes in January 2006 was 6 months, compared with 3.2 months (revised) for the same period a year ago. The index indicates the number of months needed to deplete the supply of homes on the market at the current sales rate.

 

-  Thirty-year fixed mortgage interest rates averaged 6.15 percent during January 2006, compared with 5.71 percent in January 2005, according to Freddie Mac. Adjustable mortgage interest rates averaged 5.17 percent in January 2006 compared with 4.12 percent in January 2005.

 

-  The median number of days it took to sell a single-family home was 48 days in January 2006, compared with 44 days (revised) for the same period a year ago.

 

Statewide, the 10 cities and communities with the highest median home prices in California during January 2006 were: Los Altos, $1,700,000; Newport Beach, $1,501,000; Laguna Beach, $1,385,000; Burlingame, $1,200,000; Los Gatos, $1,075,000; Calabasas, $1,045,000; Santa Barbara, $1,027,500; Danville, $936,000; Dana Point, $875,000; Encinitas, $862,500.

 

Statewide, the 10 cities and communities with the greatest median home price increases in January 2006 compared with the same period a year ago were: Sonoma, 78.2 percent; Atwater, 62.3 percent; Barstow, 59.1 percent; Sanger, 54 percent; Ridgecrest, 49.6 percent; Banning, 48.9 percent; Hesperia, 47.2 percent; Walnut, 46.9 percent; Lake Arrowhead, 45.9 percent; Upland, 45.1 percent.

 

FREE...You can search for Marin listings directly on BayAreaRealEstateSales.com:  Search for Homes

 

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How much work should you do before selling?

Dian Hymer

Recently a couple that owned a home in Berkeley, Calif., decided to move to neighboring Piedmont. They started their search by visiting Sunday open houses.

It was quite apparent to them which listings had been prepared for sale and which ones had not. They were invariably drawn to listings that were charming, clean, and uncluttered.

Looking at open houses helped this couple realize what they needed to do to their Berkeley home to ensure that it would attract buyers. By the time their home went on the market, it was charming, clean and uncluttered. It sold quickly and the sellers realized a handsome profit.

As a seller, you have several options when considering how much work to do before selling. One option is to do relatively little and sell the property in it's "as is" condition. Another is to invest time, effort and money into fixing the property up before you sell. A third option is to do a combination of the first two approaches.

In making your decision, keep in mind that in general buyers pay more for homes that are in move-in condition. Most buyers would prefer to buy a turnkey listing that doesn't need a lot of work. A home in great condition will usually attract more buyers than will one that doesn't show well and needs a lot of work.

But there is a market for fixer-upper properties, although it is more limited. Fixer buyers will pay more for fixers that have a big upside potential. Fixer listings sell at a discount when compared to listings that are in move-in condition.

HOME SELLER TIP: A higher sale price is not the only benefit to be derived from fixing up your home for sale. If you're doing the fix-up work, rather than the buyer, you have control over the improvements. You can shop the repair work for the best price. This can save you as much as 15 to 30 percent. Just make sure you use licensed contractors who will abide by city building permit requirements.

Often the decision of how much fix-up for sale work to do will depend on how much time you have before marketing your home. The best approach is to plan ahead so that you have as much time as possible. It can take months to get a house ready to sell, depending on what kind of work needs to be done.

No matter what kind of time frame you're working with, consult with your real estate agent before embarking on major fix-up work. Plan to walk through your home with your agent. Make a list of all the items that should be done before you sell. Ask your agent which reports should be ordered and order them as soon as possible.

The next step is to get bids from contractors and trades people for the recommended work. Also find out about availability and how long it will take to complete the work. With this information you can fine-tune your fix-up for sale work.

Some projects may be too costly and some may not be able to be completed within your time frame. Your agent can help you prioritize if necessary. Other projects, like d