Recent posts
June 30, 2008
You thought it was hard to get a loan even if you had perfect credit? Well, how would you feel if you already had a line of credit to suddenly find that it is frozen?
That is what seems to be the latest step in the credit crunch that is now affecting homeowners. And not just newly minted homeowners who may only have little equity in their home, given recent market declines. As reported in the Wall Street Journal today, banks are taking this new move to protect themselves in light of the declining housing market. Fearful that they are lending out more than the collateral is worth, banks are pulling back on the easy credit they doled out a few years back.
Homeowners in the midst of drawing upon their home equity line of credit find themselves without any credit and no cash to pay for those purchases they had planned. So, if you are a homeowner and planning to draw upon some funds, check first to see that your line hasn’t been reduced. And if you are a potential homebuyer, just another indication that credit is no longer so easy to come by. What will be next?
June 29, 2008
Ross is one of my favortite towns in Marin. I’m sure a main factor is all the fabulous homes, but what I really love about Ross is that it reminds me of a quaint New England town from yesteryear. And this year, it is celebrating its centennial.
At a small 1.6 square miles, there was approximately 2,300 residents in the 2000 census. These 2,300+ residents enjoy the good life—as evidenced by the incredible homes and estates and one of the highest median incomes in the state and nation.
Life is centered around Ross Common—a very tiny couple of block area bordering the local school (with one of the most incredible fields ever) and post office. There is a definite small town community feel. One contributing factor is that no mail gets delivered to any Ross resident. Everyone needs to pick up their mail at the post office (a very nice post office).
So don’t be sticker shocked at the home prices. This is a VERY desirable area and folks are willing to pay top dollar for a Ross address. The lowest asking price of a Ross house that’s on the market is $729,00 and it’s because it sits on Sir Francisc Drake and is a small 2 bed/ 2bath. Most other homes are well in the $5MM plus range.
June 28, 2008
With the housing market the way it is, all sorts of gimmicks are showing up. Sellers coming into a not so promising 
environment are hoping to get their homes sold as quickly as possible. Their agents are also thinking the same thing. The Marin IJ recently profiled a few agents who are turning to the St. Joseph, who is the patron saint of real estate.
A bit comical is the fact that the Marin Association of Realtors office started selling these little figurines a few months ago. Guess when the going gets bad, you really start to dig deep.
This ritual lends itself back hundreds of years ago to Europe. A statue of St. Joseph woud be buried upside down in the yard of homes that were up for sale. And it seems that the few agents who have paid homage to an old world tradition have found some luck.
With the market the way it is, I guess it doesn’t hurt to invest in a $10 statue. Why not? You never know…
June 26, 2008
Depending on whether you are a buyer or seller, the two stats below can either be good news or bad news to you.
1. Home sales soared 18% in California
2. The median California home price is down 35%.
Being a potential home buyer, I particularly like #2.
CNNMoney reported that life returned to the California housing market, as sales last May shot up by 18% compared to the May 2007 of a year ago. What is bringing the buyers in finally? It may be the fact that potential buyers are finally feeling like homes in California are getting more reasonable priced, after the hot hot housing market fattened their values up like crazy.
Now that prices are a bit leaner, buyers are feeling comfortable coming out of the woodwork and putting down their life savings into an asset that they feel is equivalent to what they are paying. The article notes that much of the buying may be due to lots of distressed properties out on the market.
However, there is still debate whether or not the bottom is here and this is the right time. The stats tell us that many are jumping in, but many are still holding their breath. San Francisco’s home prices it noted dropped 20% from a year ago and faired ok compared to places like Monterey County (-49%, ouch!).
So, we’ll see how it plays out, but it looks like there are more players out there now. Are you ready to get in?
June 23, 2008
It you price it right and your place is in a good location, they will come. As they have to two properties this week which sold so quick after their debut that the for sale sign barely went up.
74 Meadow Dr, Mill Valley - 3 beds, 2 baths - $839,000: Rare to find a single family home in Mill Valley for under $1 million. So this one, in a well positioned location, is simple and straightforward and priced to attract those looking to get a Mill Valley address. It went into contract within a couple of days.
507 Oakdale Ave, Corte Madera - 3 beds, 1.5 baths - $829,000: No pics as ths one was billed a fixer. But in very favored Chapman Park of Corte Madera. Someone who saw the potention was very willing to put some work into this and got this into contract shortly after the listing became active.
So those are the lucky two for the past week. And below are a few who are in need of some luck, having been on the market for 90+ days:
32 Mariner Green Dr, Corte Madera - 4 beds, 2 baths - $610,000: Two+ months shy of the year mark, this attached home is in the Mariner Green community. There hasn’t been a price reduction since Nov 2007. Maybe it’s due for another one.
95 Nelson Ave, Mill Valley - 3 beds, 1 bath - $1,065,000: My guess for why this one isn’t gaining much attention is that no one wants to pay over $1 million for a house that is a tad bigger than 1000SF. The location in Sycamore Park of Mill Valley is great, but at over $1000 per square foot, it is on the higher end of MV asking prices. Maybe time for another reduction here.
June 22, 2008
It’s no doubt that it’s still a buyer’s market in Marin. And for those home sellers who are looking for a buyer and still haven’t found one, there have been a few eyebrow raising price reductions. These price drops signal a motivated seller and for the right person, possibly a deal in the making.
Below are this week’s recent reductions which turned my head:
246 Miramar Ave, San Rafael - 4 beds, 2 baths - $699,000: This is a 2 bedroom home with a 2 bed, 1 bath unit downstairs, bringing a total of 4 bedrooms. Located in Gerstle Park, it just knocked off $50,000 from its first ask of $749,000 about 19 days ago. Short sale approved.
111 Labrea Way, San Rafael - 4 beds, 2 baths - $459,990: Near China Camp in the Santa Venetia area, there are some good bargains to be found around here. This one is approved for short sale and is looking for a buyer fast. A nearly $80K reduction, the original ask was $538,000 when it was first listed a little less than 2 weeks ago.
55 Park Ave, Mill Valley - 3 beds, 1 bath - $939,000: This one just slashed its price by $100,000. Great location in central Mill Valley, it first asked $1,099,00 a little over a month ago.
15 Corte Placida, Greenbrae - 3beds, 2 baths - $859,000: On the market for almost 6 weeks, this is the first price reduction on this home high up in the Greenbrae hills. Hoping to garner more attention, it just cut its ask by $40,000.
9 Sunnyhill Rd, Novato - 4 beds, 2.5 baths - $669,000: If Novato wasn’t too far for me, I would be totally checking this one out. For under $700K, you get a 2600+SF house on a quarter acre that includes a pool. It’s short sale approved and has been on the market since November, when it made its debut at $779,000.
June 21, 2008
May has been the best month in Marin so far in 2008 - in terms of sales activity and median home price. As told by the Marin IJ, Dataquick statistics show Marin bucking the trend that is statewide. 
While significantly down from a year ago, home sales were up compared with April 2008. In April, 165 single family homes sold and May saw an uptick of 13 homes to 178. A year ago, that number was 287, an near 40% drop.
While the small increase brings a ray of hope to home sellers, the news they will probably like more is May median home price. Clocking in at $1,102,000, it was a whopping 19% higher than the $925,000 median figure of a year ago and also a big jump from the $935,000 median price of the prior month.
However, if you have read my other postings, you’ll know that I think this figure is quite misleading and volatile on a month to month basis since it takes into account only those homes that sold and finds the number right smack in the middle.
With the current credit conditions, it’s no surprise to me that those who can still buy in this market are those who are relying heavily on bank financing - hence the media hovers around the higher end.
With summer now here, there may be an interest by families to make the move while kids are out of school. We’ll see what the action is like for June.
June 15, 2008
If you are a lucky Marin homeowner, you have about two weeks left to join thousands of your neighbors in asking for a property reassesment.
With the high median home prices in Marin, if you purchased in recent years, the property tax associated wth your home is sure to be on the higher end. And if you bought not so long ago, chances are the value of your property has gone down. That’s the bad news but the only shining light is that the property tax bill should go down with it.
The MarinIJ reported that many Marinites are in this boat, as they are filing property tax reduction requests by the hundreds and thousands:
“Hundreds of Marin homeowners are lining up to get property tax breaks, saying their homes have lost value and thus are unfairly assessed by the county. The county assessor’s office now expects 2,000 to 3,000 Marin homeowners to get property tax cuts in the 2008-09 fiscal year due to slumping real estate prices.”
While the article noted that Southern Marin prices are holding up and Northern Marin, especially Novato, is tanking pretty hard, it did not say if the requests followed this similar pattern. It would seem safe to say it does.
For home seekers, it looks like even homeowners (and potential home sellers) are acknowledging that their home is not worth with it was a year or two ago.
June 14, 2008
Sausalito and Mill Valley are two of the pricier neighborhoods in Marin. Single family home asking prices straddle the million dollar mark. So, what to do if you want to be a homeowner in this vicinity? One option is to consider condos or coops, where there are a few options for under $400K. Be sure that a single family home in either of these locations will go for at least twice that.
Sausalito:
4 Buckelew Dr - 1 bed, 1 bath - $170,000: New listing for under $200K. A top floor coop unit with 750 square feet, which seems reasonable considering there are often detached two bedroom cottages that hover around 1000 square feet. The HOA dues pay for property taxes and cable.
Undisclosed - 2 beds, 1 bath - $265,000: On the market for a bit - 135 days. Though the location is undisclosed, it’s probably in the same vicinity of the coop above. Coop ownership too but this one looks a bit more updated.
Mill Valley:
384 Pine Hill Rd #1 - 1 bed, 1 bath - $315,000: In the redone Pine Hill complex. This is a TIC and looks to be the model unit. End unit gives you some private outdoor space but at 545 square feet, it may be good for a single person.
530 Seaver Dr - 1 bed, 1 bath - $399,000: Another Mill Valley one bedroom, this is a top floor condo unit. Pluses include the in unit laundry and a community pool for the summer.
June 10, 2008
A few months back, I pondered whether is was better to walk away from a house that is well under water. Yes, it will be a hit to your credit score but the other option may be to keep paying a mortgage where the house that it is tied to will never gain back to the loan’s full amount. The biggest risk I saw was that if you were going to walk away, you may never be able to fulfill that American dream again of owning a home, particularly in today’s tight lending standards.
Well, some folks are now first buying and then bailing on their underwater home. Somewhat like having your cake and eating it too. According to this article in the Wall St. Journal, a loophole in lending rules allow people to take on a new mortgage while their current home is on the market or they make a promise to rent it. Lenders have provided new mortgages for the 2nd home bought in this down market and when the homeowner has this in the bag, they just walk away from the first, underwater home. So much for the notion of selling or renting it.
The practice isn’t widespread. In states like California, the way mortgages are structured so that lenders cannot come after the forclosing homeowners other assets. Ahhh - even more reason to buy and bail. But, tougher lending requirements are making it harder and this may even be considered fraud. So, while this may seem to be a good strategy if you are well below the water’s surface, think twice.
