Bay Area Real Estate Sales.com Newsletter

May 2007

 

IN THIS ISSUE:

Marin Home Sales Statistics

Marin Housing Market Sales- Marin Sets Records Median Price Over $1m

What Did Your Neighbors' House Sell For?

Sell Your Home Quicker And For A Higher Price

Home Mortgage Provides Array Of Tax Breaks

What Do Liz's Clients Say?

Fast Facts

 

 

MARIN HOME SALES STATISTICS

 

The median price for single-family, re-sale homes in Marin County rose 8% in April, compared to the month before, and set a new record of $1,080,000. This is 9.6% higher than last April. The average price gained 7.4%, up 10% year-over-year.

Sales of single-family homes were up 22.5% from March, up 9.3% year-over-year.

The median price for condos fell 8.9% to $549,500, a year-over-year gain of 0.9%. The average price fell 7.6% to $591,536, down 5.8% compared to April 2006. Condo sales dropped 23.6% from March, and were down 30% year-over-year.

 

These statistics show how many homes are available for sale in Marin, and of those how many are currently in contract (either pending or contingent. For the 8^th month in a row, the Marin overall real estate market is in a "Buyers Market."

 

As always, it's important to view the individual city and price range stats for more details:

 

Although the overall market shows that it's a "Buyers Market': Novato, San Rafael and Tiburon are the in that "Buyers Market" category and Belvedere, Ross, Sausalito are all in a "Strong Buyers" market. On the other hand, Corte Madera, Fairfax, Greenbrae, Larkspur and San Anselmo are all in a "Sellers" market; Mill Valley is in a "Balanced Market", but is close to a Sellers Market. As I indicated last month the spring market has "heated up" again where multiple offers are once again becoming commonplace.

 

Homes priced under $1M and over $1M are all in a "Buyers Market", whereas homes priced from $1M to $1.5M are in a "Balanced Market."

 

My take on the current market: The real estate market is very hard to generalize. It is a market made up of many micro markets. For complete information on a particular neighborhood or for an evaluation of your home's worth, call me.

If I can help you devise a strategy, just let me know.

 

I think that the general consensus among agents currently is that there is a lack of inventory. Interest rates have been very good and there are buyers ready to purchase homes, but there is still a lack of homes that are finished and priced correctly. Multiple offers are becoming commonplace again, especially in popular areas like: Anywhere you can walk to town in Mill valley, Larkspur, San Anselmo and San Rafael.

 

If you are looking to purchase a home, it's important that you be ready with a pre-approval letter so that you can be ready if the home that fits your requirements comes on the market. Buyers once again have to forgo some of their "must-haves" and make compromises for what they are looking for.

 

MY ADVICE?

 

For buyers, the same as last month: prime property is selling quickly and, in many instances, with multiple offers. Buyers need to be prepared to make an offer immediately on prime property. That means you need to have a loan in place. For more information about buying in a multiple offer situation, call me.

 

For sellers, where your home is, the condition and what segment of the market it's in, entry-level, move-up or million plus, are the determining factors in whether or not you will be able to sell your home quickly and for a good price. Demand in the entry-level market has fallen, which will impact the move-up market. The million dollar plus market is pretty much immune to the sub-prime mortgage tightening.

 

The real estate market is very hard to generalize. It is a market made up of many micro markets. For complete information on a particular neighborhood or for an evaluation of your home's worth, call me. If I can help you devise a strategy, call or click the buying or selling link in the menu above.

 

I'm always searching for ways to bring my clients and readers more local real estate statistics. I'm pleased to announce the launch of my new Marin home Sales Statistics page. To view, go to: Marin Real Estate Statistics.

 

If you know of anyone who would like to receive this monthly newsletter or is thinking of either buying or selling a home please let me know. I'd love your referrals!

 

 

 

 

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

 

Back to top

 

MARIN HOUSING MARKET SALES- MARIN SETS RECORDS MEDIAN PRICE OVER $1M

(Data from DQNews)

 

La Jolla, CA.----Bay Area homes sold at the slowest pace in 12 years last month, the result of a continued buyer-seller standoff as well as very slow sales in some lower-cost neighborhoods in the East Bay. Prices increased for the third month in a row to a new record, a real estate information service reported.

 

A total of 7,447 new and resale houses and condos were sold in the nine-county Bay Area last month. That was down 10.5 percent from 8,317 in March, and down 18.4 percent from 9,129 for April last year, according to DataQuick Information Systems.

Sales have decreased on a year-over-year basis the last 27 months. Last month's sales count was the lowest since 5,636 homes were sold in April 1995. The strongest April in DataQuick's statistics, which go back to 1988, was in 2004 when 14,430 homes were sold. The April average is 9,614.

 

"With sales this slow, prices would decline if there were a huge number of motivated sellers listing their homes. That doesn't appear to be the case. It's likely that potential buyers are biding their time, as are sellers. It's hard to buy a home if you think it might go down in value. Things could pick up this summer as buyers see that values are not dropping," said Marshall Prentice, DataQuick president.

 

The median price paid for a Bay Area home increased last month to $659,000, a new peak. That was up 3.1 percent from $639,000 for the month before, and up 3.8 percent from $635,000 for April last year. The prior peak was in June of last year at $648,000. Prices have increased the last three months.

Marin County's median for resale houses reached $1,010,000 last month, the first time any California County passed the million-dollar mark.

 

Indicators of market distress are moving in different directions. Financing with adjustable-rate mortgages is declining significantly. Foreclosure activity is rising but is still in the normal range. Down payment sizes are stable and flipping rates and non-owner occupied buying activity is down, DataQuick reported.

 

All Homes	No Sold April-06	No Sold April-07	Pct. Chg	Median April-06	Median April-07	Pct. Chg
Alameda	1,786	1,555	-12.9%	$599,000	$586,500	-2.1%
Contra Costa	1,735	1,246	-28.2%	$575,000	$600,000	4.3%
Marin	341	313	-8.2%	$850,000	$925,000	8.8%
Napa	137	109	-20.4%	$610,000	$563,000	-7.7%
Santa Clara	2,424	2,009	-17.1%	$675,000	$709,000	5.0%
San Francisco	591	568	-3.9%	$779,000	$790,000	1.4%
San Mateo	789	681	-13.7%	$755,000	$810,000	7.3%
Solano	701	440	-37.2%	$460,000	$428,000	-7.0%
Sonoma	625	526	-15.8%	$567,500	$519,000	-8.5%
Bay Area	9,129	7,447	-18.4%	$635,000	$659,000	3.8%

Source: DQnews.com

 

WHAT DID YOUR NEIGHBORS' HOUSE SELL FOR?

 

The Neighborhood Homes Sold listing is a weekly reader feature of the Sunday San Francisco Chronicle. The data posted here is typically recorded a few months after the property officially sold. This is the public data available in the published tax records. The home addresses, sales price, number of bedrooms, square footage and the year the homes were built are based on information supplied from Bay Area counties' property transaction records which, in some cases, may not be complete.
Previous editions of Neighborhood Homes Sold

Click on the following links to see what price homes sold for in your neighborhood:

 

05/20/07 May 20 Marin Home Sales

05/13/07 May 13 Marin Home Sales

05/06/07 May 6 Marin Home Sales

4/29/07 April 29 Marin Home Sales

 

SELL YOUR HOME QUICKER AND FOR A HIGHER PRICE

By: Lou "Mr. Fix-It" Manfredini

 

Some owners typically end up eating the cost of most improvements when they sell their homes, but a few simple projects can help you enjoy your home more now and sell it for a higher price later...

 

CURB APPEAL

Most people form a lasting impression of your home as soon as they pull into the driveway. In addition to painting the exterior, consider these improvements...

 

1.        Upgrade your front door. A door in poor condition or of low quality puts the wrong foot forward. Painting it costs less than $20. Installing a quality brass doorknob, lock and knocker also helps (cost -- about $200). My favorite brands are Kwikset, Schlage and Baldwin.

 

2.        If the door needs to be replaced, invest in one that is made of solid wood (cost -- about $500). Hollow metal doors cost half as much, but they lack the sturdy feeling and security that buyers feel best about.

 

3.        If the screen door looks old, replace it as well. A storm door with full-length removable glass or a screen will show off the handsome door behind it.

 

4.        Repair damaged screens. You can buy the mesh, spline and installation tool for several window and storm-door screens at most home-improvement stores for less than $15. Some hardware stores will do the job for you for about $15 per screen.

 

5.        Patch walkways, and reseal the driveway. Concrete patching compound costs less than $10 a gallon. Asphalt sealer costs less than $25 a gallon. If your driveway needs to be completely repaved, it should cost between $3 and $6/square foot to have it blacktopped.

 

6.        Wise: Get a written estimate before having your driveway completely redone. If you choose not to replace the driveway and it becomes a sticking point with a potential buyer, show him/her the estimate and offer to lower your asking price by part or all of that amount.

 

INDOOR IMPROVEMENTS

There are hundreds of ways to upgrade the interior, but only a few make financial sense. In addition to repainting...

 

1.        Clean until it sparkles. The most cost-effective way to increase your home's appeal is to make it clean and clutter-free. If you don't have the time, a cleaning company can do a thorough job for about $250 in a day. Prices vary depending on your home's size, condition and location.

 

2.        The house will look larger if it contains only a limited amount of furniture, decorative items and the things you need to live. Removing clutter also makes it easier for potential buyers to picture their possessions in your home.

 

3.        If need be, put some of your things in storage. Space can be rented monthly starting at less than $100 a month.

 

4.        Remove or replace worn carpets. Extremely worn carpeting suggests that a home has been poorly maintained. Good-quality carpet starts at about $20/square yard installed. That's about $500 to make a standard-size room look great -- a worthwhile expense for central rooms that showcase the home.

 

5.        Brighten things up. Well-lit homes are more appealing to buyers. Use the highest-wattage bulbs recommended for your fixtures... tie back curtains... wash windows inside and out... trim outside bushes that block light.

 

6.        Make sure electrical switches and outlets work. If they don't, hire an electrician to fix them. At the very least, buy and install covers for outlets and switches that don't work (cost -- less than 50 cents each). Buyers shy away from homes that have electrical problems.

 

7.        Make sure doorknobs work well. They are the one part of a home that prospective buyers always touch. If they feel cheap or loose, they make the whole house seem insubstantial. A new knob costs about $10.

 

KITCHENS AND BATHROOMS

These rooms influence the sale price more than any others. Small projects that will more than pay for themselves...

 

1.        Replace worn kitchen countertops. An old or damaged kitchen countertop is certain to turn off potential buyers. A simple laminate replacement will cost around $700 installed, depending on the size. High-end granite or marble countertops will draw raves from potential buyers, but they rarely recover the average $5,000 price tag.

 

2.        Clean up bathroom surfaces. Bathrooms should look clean and fresh -- tiles... shower curtain, etc. Remove mold or mildew on grout between tile with CLR Cleaner. If discoloration remains, scrape the grout down to 1/8 of an inch and regrout (cost -- about $30 for a 25-pound bag).

 

3.        Remove mold from caulk between the tiles and tub. Pull up the old caulk and apply new (cost - less than $5 a tube). A professional would charge about $350 to recaulk and regrout an average bathroom.

 

BASEMENT

1.        Have foundation cracks professionally sealed if they allow moisture to enter. Look for wetness after heavy rains. Cost for resealing: $500 to $1,000 for work with a transferable lifetime guarantee. The price is high, but buyers will love the guarantee.

 

 

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

 

HOME MORTGAGE PROVIDES ARRAY OF TAX BREAKS

By Tom Kelly

If you feel better knowing you can deduct the mortgage-interest portion of your huge annual housing expenses, make sure you know exactly how much you can deduct.

One of the more popular topics I've had with accountants this year is regarding mortgage interest. You can deduct only interest on the original amount of the loan at the time you refinance, plus $100,000. For example, let's say you purchased your home 10 years ago for $100,000 and took out a loan for $80,000. Since then, you have paid the loan down to $20,000.

The house is now worth $275,000 and your oldest child needs college tuition. The house definitely has equity to tap, but your mortgage interest deduction would be limited to the first $120,000 ($20,000 old loan at the time of "refi," plus $100,000).

It is important to remember that home-loan-interest deductions simply reduce your taxable income. They are not dollar-for-dollar tax credits that are subtracted from your tax bill. If you have a $1,000-a-month mortgage payment and are in the 15 percent tax bracket, only about $150 a month escapes being taxed in the early months of the loan.

You can deduct the loan fees ("points") paid to buy or improve your main home in the year of purchase. You cannot deduct these fees in the year you refinanced if you refinanced only to obtain a lower interest rate on your loan.

The term "points," once used to describe only prepaid interest on government loans, now is used to describe charges paid by a borrower to secure any mortgage. These points can be loan-origination fees or prepaid interest to "buy down" an interest rate. To be deductible, these charges -- or points -- must represent interest paid for the use of money and must be paid "before the time for which it represents a charge for the use of the money."

According to the Internal Revenue Service, most points paid when you are refinancing an existing mortgage must be written off over the life of the new loan. However, if you sold a home in 2006, you can still deduct several items, including title insurance costs and excise tax. For guidance on closing costs, the best source may be the settlement sheet from the original loan.

Points on refinance are not fully deductible in the year in which they are paid because they were not paid in connection with the improvement or purchase of a home, even though the original loan met the requirements for deductibility.

What many home sellers forget to factor at tax time are the fees remaining from a previous refinance. All of those fees can be deducted in the tax year you refinanced a second time. For example, let's say you jumped at a 30-year, fixed-rate loan at 4.5 percent in May 2005. In order to get that lower rate (conventional rates were hovering higher), you had to pay at least 5 discount points. If the loan amount were $80,000, one discount point would amount to $800, and five points would be $4,000.

Points paid to buy, build or improve your principal residence can be deducted in the year they are paid, as long as they were not rolled into the loan amount. However, because you refinanced to simply obtain a lower interest rate, nearly all of the $4,000 must be written off over the life of the loan. That's because the IRS sees refinancing points as repayment of existing debt.

Let's say that last month an unexpected need to send Dad into an assisted-living home necessitated another refinance to pull some cash out of the home. You decide on an adjustable-rate mortgage with a very low starting rate and pay no fees. Now that the existing loan is paid off, the remaining balance of the fees from the previous loan is deductible in tax-year 2007.

The tax rules and deductions for second-home owners who rent out their properties on a short-term basis depend on many factors, including how often you personally use your second home, how many nights or a percentage of the nights you rent out your home, and your personal adjusted gross income (AGI). The details can be found in IRS Publication 527, Residential Rental Property (including Rental of Vacation Homes).

Now, I need to do a better job of recording all of my deductible expenses that often slip through the cracks. It seems I might have to counter the loss of some mortgage interest for 2007.

 

WHAT DO LIZ'S CLIENTS SAY?

 

"Liz spent a considerable amount of time searching for a home for us, and we must have looked at over 30 possibilities. To complicate her task, we knew that we would probably have to relocate in about 2 years, so resale was a top priority.

 

Liz's attention to detail, assistance with the myriad of details involved in the offer/closing process was invaluable. Her local knowledge with regard to property inspectors, mortgage brokers and other details made our transition to our new home much easier.

 

We are very thankful for her efforts on our behalf!"

-Frank and Patty Huggins, Novato

 

If you would like to have Liz help you sell your Marin home or help you find a home, or you know of someone that could benefit from her services, just send her an email: liz@BayAreaRealEstateSales.com or give her a call: 415-250-4929

 

"High-Touch through High-Tech": Did you know that Liz McCarthy is ePro Internet Certified by the National Association of Realtors and that 70 percent of home buyers today use the internet in their home search? Why are you still working with a Realtor who isn't a technology expert?

 

What this means to you:

 

Home Buyers: Liz is an expert in helping save you time by using the internet, email and other technology resources to help save your valuable time and money. She knows how busy you are!

Home Sellers: Liz will hire a professional photographer and market your home extensively on the internet: a personal property website (see www.417Greenfield.com or www.50milland.com for samples), she will post your home on over 50 websites.

 

Back to top

 

FAST FACTS

 

Marin median SFR + condo price- Apr 07: $996,000 2006: $864,000 [Source: BAREIS]

Marin average SFR + condo price-: Apr 07: $1,260,000; 2006: $1,089,129 [Source: BAREIS]

Marin median SFR home price - Arp 07: $1,075,000; 2006: $956,000 [Source: BAREIS]

Marin median condo price - Apr 07: $549,000; 2006: $548,000 [Source: BAREIS]

 

Calif. median home price -Mar 07: $580,090 [Source: C.A.R.]

Calif. highest median home price Feb 07: Santa Barbara So. Coast $120,000,000 [Source: C.A.R.]

Calif. lowest median home price by C.A.R. region Feb 07: High Desert $320,830 [Source: C.A.R.]

Calif. First-time Buyer Affordability Index - Fourth Quarter 06: 25 percent [Source: C.A.R.]

 

Mortgage rates - week ending 5/10/07: (Source: Freddie Mac)

·          30-yr. fixed: 6.15%; Fees/points: 0.5%

·          15-yr. fixed: 5.87%; Fees/points: 0.5%

·          1-yr. adjustable: 5.48%; Fees/points: 0.7%

 

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

 

Be sure to check out all the other great content & features of my website:

www.BayAreaRealEstateSales.com

 

The Bay Area Real Estate Newsletter is provided to you by:

 

Liz McCarthy

"High-Touch through "High-Tech"

Real Estate Broker, e-PRO certified

Vision Real Estate

Liz@BayAreaRealEstateSales.com

415-250-4929

 

Is this email going into your junk folder? If so, add Liz@BayAreaRealEstateSales.com to your address book to ensure that all future BayAreaRealEstateSales.com emails appear in your mailbox.

 

Spam Free Guarantee

We do not share, sell or rent our mailing list and we do not place pop-up ads on your computer.