Beautiful Mountain Blog of Belmont

Interest Rates to Hit 10% by Year's End

That could easily have been a headline ripped from the pages in major newspapers back in August of 1994 when rates were only 6%--yet by year's end the prediction nearly came true as a mere four months later they would rise to almost 10%!

Are you old enough to remember what normal mortgage interest rates were like?

According to Bankrate.com, mortgage interest rates have been attractive for such a long stretch of time that many homebuyers and homeowners might not realize that rates haven't always been this low. Mortgage interest rates in the 4-percent range were unheard of until 2010, and rates in the 5-percent range were unknown prior to 2003, according to Bankrate.com surveys through the years and a chart of monthly average mortgage interest rates tracked by the Federal Reserve since 1971.

Prior to 2003, higher mortgage interest rates were the norm. In the early 1970s, rates hovered in the 7-percent range and spiked up above 9 percent in late 1975, late 1976 and most of 1978. At the end of the decade and throughout the 1980s, mortgage interest rates rarely dipped lower than 10 percent.

In the early 1980s, mortgage interest rates brushed the stratospheric highs of 18 percent and even 19 percent. Imagine trying to get a home loan with an interest rate of 18 percent. At that rate, the mortgage interest deduction would be a very lucrative income tax perk, but the monthly payment on a loan would be far more painful than a typicalmortgage payment today.

During the 1990s, mortgage interest rates ranged from around 7 percent to roughly 9 percent for many years. It was only in 2000 that rates began to fall to earth. They held at less than 9 percent in 2000, less than 8 percent in 2001 and less than 7 percent in 2003.

Reproduced with the permission of Mortgage-X.com

If you've been putting off refinancing your home or buying a new one, don't get lulled into inaction with the thought that these new low rates are here to stay.

The information contained in this article is educational and intended for informational purposes only. It does not constitute real estate, tax or legal advice, nor does it substitute for advice specific to your situation. Always consult an appropriate professional familiar with your scenario.

 

Drew & Christine Morgan did not necessarily participate in these sales.

DRE License Numbers 01124318 & 01174047

Drew & Christine Morgan, REALTORS | Notary Public

 

More Can Afford a Home, But Lenders Remain Tight-Fisted

More can afford a home, but lenders remain tight-fisted
Nearly half of all California households can now afford the median-priced home in the state –
but that’s no help if they can’t get mortgages.
Making sense of the story

 Six years after the subprime mortgage meltdown, banks remain tight-fisted, even with
solid borrowers – a fact they attribute to shifts in government regulation and demands
that they buy back bad loans.
 Mortgage credit has not eased much since 2007, according to Federal Reserve surveys
of loan officers, even while low rates and the housing recovery have borrowers lined up
seeking financing.
 First-time buyers and self-employed borrowers must jump through especially complex
hoops. Even gold-plated applicants must justify the smallest quirks in their finances in
excruciating detail. And, processing applications can take months.
 Lenders say their cautions stems in part from uncertainty over a tougher new regulatory
environment, along with unrelenting demands from government-sponsored mortgage
buyers that the banks repurchase soured loans.
 Salaried professionals with credit scores in the high 700s have the best shot at being
approved for a mortgage loan in this environment, along with borrowers who have never
missed a payment and want to refinance.
 However, even these borrowers may face stiff documentation demands, including having
to explain any bank deposit other than a regular paycheck.

The information contained in this article is educational and intended for informational purposes only. It does not constitute real estate, tax or legal advice, nor does it substitute for advice specific to your situation. Always consult an appropriate professional familiar with your scenario.

 

DRE License Numbers 01124318 & 01174047

 

Drew & Christine Morgan, REALTORS | Notary Public

 

Let Me Just Save a Little More Money…

Is it Wise to Save More For Your Down Payment?

Are you a first-time buyer wondering how you’ll ever have enough of a down payment to buy your first home?

Do you wonder how much down payment you need for a home? Did you know that if you’re buying a home and using FHA financing your down payment could be as little as 3.5?. Ten percent down loans are also making a comeback and are quite common once again.

But should you wait and save more for your down payment so you can be 20% down? In our current market, that might not be such a great idea.

Home values have been increasing rapidly in the last year. An area in Belmont known as Sterling Downs offers many first time buyers affordable living options. But the values there have been rising with the rest of the tide.

This graph illustrates the price trend in the last year in Sterling Downs, Belmont. We used homes which closed escrow since January of last year that were three bedrooms and between 900 and 1,100 square feet so that the sale prices weren’t affected by the size of homes selling.

Clearly it would be near impossible to keep up with the increase in the selling prices simply by saving more money each month from your paycheck. We estimate that in 2012 to date the average Sterling Downs home increased $75,000 or just over $5,000 per month.

If you have been waiting to buy a home and need some advice on some of the varying financing options which are available, feel free to contact us and we’ll refer you to one of the great mortgage brokers who can answer all of your questions.

 

The information contained in this article is educational and intended for informational purposes only. It does not constitute real estate, tax or legal advice, nor does it substitute for advice specific to your situation. Always consult an appropriate professional familiar with your scenario.

 

DRE License Numbers 01124318 & 01174047

Drew & Christine Morgan, REALTORS | Notary Public

All data was retrieved from MLS Listings, Inc. The Multiple Listing Service for San Mateo County.

 

Belmont Median Home Price Hits Near Record High - February 2013

What’s up with this crazy market? The stock market hit an all time high this week and our local housing prices are right in step. Pundits say that our housing market tracks the S&P 500 and if they’re right, we’re in for a heck of a ride.

Belmont housing prices continued to show gains into February as Belmont had both month-to-month and year-over-year increases in the median price—so let’s start there.

This graph shows the median price trend for the past year in Belmont.

 

[click on the image for a larger graph]

MEDIAN PRICE

The median home price in Belmont increased 42% last month over a year ago. Belmont’s February home price reached $1,108,000. To put that in perspective that is the second highest median home price for Belmont since we began tracking the market in 1998. The only other time it was this high was in October of 2007—right before the housing crash hit the Peninsula.

If you’ve been following our market update you know we never leave the raw numbers alone. Since Belmont has a relatively small number of homes selling each month when a disproportionate number of smaller or larger homes sell in a given month it impacts the median home price and skews it off axis.

In order to adjust for this we look at the size of homes selling in the two periods. Insofar as we know we are the only local experts drilling down to this level of detailed analysis.

Homes which sold in February 2103 in Belmont were 20% larger than they were in 2012 during the same period, so while the median increase in price was 42%, could this mean the adjusted median home price gain was actually closer to 22%?

Looking at it another way, the difference in the size of homes selling in the two periods was 1,970 square feet in 2013 and 1640 square feet in 2012—a difference of 330 square feet (20% increase this year). Now let’s multiple that by the median price per square foot the homes sold for in 2012 and we get $181,500. If we add that to the median price in 2012 our adjusted median home price for last year would be  $961,500—meaning that using this method for adjusting the median home price we get a 15% increase year over year; and the reality probably lies somewhere in between. Any way you slice it, 15-20% increase year-over-year is an amazing rebound and this increase will hopefully create more “equity sellers” and more seller’s with equity means more sellers who can sell which will in turn increase the housing supply.

One of the most impressive statistics is that only two homes had any price reduction at all and just as few sold for less than the seller's asking price.

SALES

Sales were down this year over last so we checked the inventory levels to try and understand why. In January of 2012 there were 21 new listings which hit the market. Adding to an already bloated inventory that caused the inventory level last year in February to soar to 41 homes available for sale. Contrasting that to this year when the new listings dropped 50% to only 14 and our inventory of homes for sale stood at a paltry 12!

PERCENT OF ASKING

In February of 2012, seven of the 19 sales, or 37%, were for more than the seller’s asking price by on average $46,000. This February 73% of the sellers received on average $106,000 over their asking price.

For those sellers who were less fortunate, in 2012 53% sold their home for on average $29,000 less while in 2013 only 18% had to sell for on average $35,000 less.

The percent the sellers received of asking were 97.3% in 2012 as compared to 107.7 in 2013.

If you are considering selling your home the above statistics might lead you to believe that it’s back to the old days when any agent could put a sign out front and sell your home. And while that may be true—that your home might sell—the percentage you actually receive of your asking price varies relative to the degree of expertise in agent’s marketing plans and advice. If you want to be statistically guaranteed that you’ll get the best results, contact us for a consultation. Our record for selling every home we’ve listed, for more money, and in the shortest period of time is unmatched—of the top Belmont REALTORS, nobody has us beat.

If you are looking for someone to help you sell your home, we’re someone you should know.

The information contained in this article is educational and intended for informational purposes only. It does not constitute real estate, tax or legal advice, nor does it substitute for advice specific to your situation. Always consult an appropriate professional familiar with your scenario.

Drew & Christine Morgan did not necessarily participate in these sales.

DRE License Numbers 01124318 & 01174047

Drew & Christine Morgan, REALTORS | Notary Public

*All data was retrieved from MLS Listings, Inc. The Multiple Listing Service for San Mateo County.

 

6 Folger Court in Belmont - Just Listed! $1,150,000

Want to get away? With its bucolic setting, 6 Folger Court allows you to feel like you’re living in a small rural town and yet it’s sure to make you feel miles away from the reality and convenience of the close proximity to San Francisco and Silicon Valley. This idyllic area of Belmont enjoys a special microclimate of warmer summer air and hence has been coined to be Belmont’s very own “Banana Belt”.

 

Situated on one of Belmont’s few private drive cul-de-sac locations, this rare location is coveted for its central location—within walking distance to either of Belmont’s shopping areas—as well as Notre Dame High School.

Originally built in 1962, this home was extensively remodeled in 2001 and redesigned with an open “Great Room” style contemporary living area.

This distinctive home features a welcoming columned entry, rich hardwood flooring, recessed    lighting, and surround sound speakers.

Once inside you are treated to fine appointments of unparalleled cohesiveness. Beautifully polished, intriguing slab counters of rich natural stone are complimented by marble backslash and superior hardware. Use of quality appliances include Fisher & Paykel® Double Dishdrawer™  with its quiet        operation, Elan® Italian six burner gas stove complimented by a  Best® dual-sided hood, Sub Zero® Refrigeration and GE Monogram® stainless oven and microwave.

The master suite enjoys a large walk-in closet with built-in organizers and a sumptuous bath adorned with an oversized jetted tub, shower, and rich tiled vanity area. The master opens to a side yard patio—a perfect spot for relaxing in a tranquil setting.

Continuing down a short path we find the bonus room—spacious enough for a billiards table—this is also ideal as a man cave or play room.

If you’ve been waiting for the ideal home in Belmont, then 6 Folger Court with its location and amenities may just be the perfect fit.

OPEN SUNDAY, February 24th 2:00-4:00 & March 3rd from 2:00-4:00

Reports are available to interested parties.  Call (650) 508-1441.

DRE License Numbers 01124318 & 01174047

Drew & Christine Morgan, REALTORS | Notary Public

 

 

 

 

Belmont's Proposed Sewer Lateral Requirement Might Just Stink

We initiated this post on the Belmont Patch and wanted to make sure the residents of Belmont know what their City Council is working on as the newest proposal in keepoing Belmont's residence safe.

I tend to stay away from expressing our opinions about the machinations of Belmont’s City Council but I thought their recent proposal which burdens every home seller with a sewer lateral inspection and repair requirement needs some public scrutiny.  

What is a sewer lateral?

It’s the underground pipe that runs from your home to the public sewer system.

What’s the issue?

In some cases, the sewer lateral can leak or even break causing sewage to seep into the ground—similar as to a leach field used in septic systems but not as sanitary. It also has the unwanted effect of possibly allowing ground water (from rain for example) to enter the sewer system which can overburden the system.

What’s the Fix?

First, you have to learn if you have a faulty sewer lateral. There is a relatively inexpensive smoke test which Belmont has been employing to detect faulty sewer laterals. The more expensive way to discover this is through a field test with a camera which is snaked through your sewer line to detect visible deficiencies.

How much does it cost if I need to repair my sewer lateral?

That depends. An short run and easy fix from your home to the street might cost under a thousand dollars but could also reach ten times that amount if there are difficulties in reaching the sewer lateral or, as in the case of many Belmont homes, the sewer lateral has a very extensive run across multiple properties before it reaches the main city sewer line.

What the City of Belmont is considering:

The Belmont City Council has been deliberating whether or not to force each homeowner to perform a test and if necessary repair the sewer lateral before they can sell their home. That proposal is called a “point of sale” or POS proposal.

What’s the problem with their proposal?

There are several issues with this approach which could cause a homeowner a problem should they need to sell their home and either not have the funds to repair the sewer lateral, or not have the time before the close of escrow. Amendments to this proposal include ways a homeowner could negotiate with a buyer to inherit the burden but so far the proposed workarounds appear to be at odds with lending and escrow institutional requirements.

What’s the answer?

The City of Belmont is currently testing sewer laterals utilizing a smoke test which offers the added benefit of detecting downspouts that may be discharging roof runoff into the sewer system rather than the storm drains. Should they find a leak they could then require the homeowner to repair their sewer lateral and have the opportunity to secure financing if needed.

The POS proposal seeks to limit the sewer lateral test to a relatively small subset of homes—only those which sell in a given year, which in 2012 was only 236—while the easily performed smoke test could potentially reach far more homes.

One wonders if the city is truly interested in fixing the sewer lateral problem or pushing it off onto those who will have little voice in the next election—those selling their home and moving away.

UPDATE--I attended the meeting with the Belmont staff and council on Thursday, the 14^th to hear their newest idea of the Point of Sale requirement for sewer laterals. Be clear, the City Council has directed the staff to discuss how to best implement the POS, not whether or not the POS is the best way to deal with the issue.

Clearly there is a need to repair broken sewer lateral lines in our city. Having sewage seep into the surrounding ground is not ideal, but the larger problem appears to be the amount of water which enters broken sewer laterals during and after heavy rains. This water then ends up taxing an already overburdened treatment system and anyone who lives in Belmont knows the cost of maintaining our sewer system keeps getting past along in the form of rate increases on our property tax bills.

But is it leaking water into our sewer laterals which is the major culprit or is it the city’s very own main lines? The smoke tests which the city has been performing clearly revealed one of the greatest issues are folks who have tied their downspouts into the sewer system rather than divert the water to run down the curb and into the storm drain. So again we question, are we moving forward armed with all of the information we need or just moving forward to give the impression we’re making progress?

The rainy season is almost over and we’d suggest the council, which appears ahead of their skis right now, take a step back and get more information and input before storming ahead. Gathering more information from lending institutions, title companies and plumbing contractors who specialize in sewer lateral replacement might prove to be a good start. Having the city deliver the results of their smoke testing to the public for scrutiny might also show some good faith that these decisions are based on solid data; then set a date for action prior to next years’ rainy season.

The question of course today is why a POS vs. requiring each property owner to test and fix their sewer laterals? If the City Council is truly concerned about fixing the issue, a POS requirement severs to only uncover a small percentage of the defective sever lateral lines—commensurate with home many homes sell each year. Since it’s an election year, this seems a politically palatable way to deliver bad news—only those moving would be affected by the cost (estimated to average $7,500 per household). But is it the best answer to the problem? Probably not.

If the council is truly concerned with the health and safety of its citizens it might continue down the path of requiring each and every homeowner to remedy this situation independent on whether or not they are moving. I’m struggling with this but the only reason I can see for not requiring every homeowner to repair their lateral is it would be politically unfavorable.

If the City Council has its way a POS would be eminent. The staff has been directed to develop a step-by-step plan for administrating this new burden. The proposal, if I can paraphrase it and as it stands now, is before a home could be transferred, it would need to have a certification the sewer lateral is intact. That encumbers the homeowner to order and pay for a sewer lateral camera inspection costing about $150-$200 dollars depending upon ease of access. The results of the test and camera footage shall be delivered to the public works department for analysis—promised not to take more than a day or two. If your sewer lateral passes, you get to pass “GO”. If not, you will be required to fix it and provide a certification to the city prior to the close of escrow. Of course the city will have its hand out for encroachment permits, building permits and so forth and they’ve offered no proposed relief on these fees in order for homeowners to comply. Or, the third option presented on Thursday, was that the buyer of the property could sign a pledge to repair the sewer later at their expense with 180 days of closing—and deliver a deposit as security of performance—an amount which has yet to be determined.

Of course this will raise all sorts of red flags for lenders, who if they get wind this requirement exists, will force the repair of the sewer lateral prior to the close of escrow as part of a lending requirement. So while we applaud the city staff for attempting a workaround, their third prong option still has some kinks in it. Namely that once the seller and buyer negotiate who will pay for this repair those negotiations will become part of the contract—the very contract the lender will scrutinize and thus require a sewer lateral certification before they will lend on the property.

As REALTORS, we’re used to handling city issues in the form of disclosure such as the new smoking ordinance, school boundary issue, or even dog and alarm licensing requirements so this newest burden which the city apparently feels we are fighting just for the sake of having to do less work, is really a non sequester for us. What this will burden is the home sale transaction—the seller and the buyer—to find a way to appease the city’s new requirement without unwittingly defrauding the lender at the same time.

The views expressed here are my own--Drew Morgan and not necesarily the views of the National Association of REALTORS, The California Association of REALTOS, The San Mateo Association of Realtors or even my wife.

Belmont Home Values - Profile of a Home Sold in 2012

Belmont Homes Sales for 2012 – Profile of a Home Sold

By now everyone has heard that the Peninsula housing market picked up last year but as is often the case, the devil is in the details.

What really went on?

Most people, including real estate agents, are under the misimpression that there were no homes to sell last year—that inventory was in short supply. Well part of the is true. The inventory was down but the number of new listings hitting the market were actually up over 2011.

There were 282 new listings in 2012 as compared to 261 in 2011. That’s about one month’s worth of new listings—not much to talk about. But that 8% increase is important because of the increase in sales.

Home sales for the two years are a different story. In 2011 there were 186 single family home sales as compared to 243 in 2012—an increase in 2012 of 31%.

That which created the low inventory of homes was that home sales were dramatically, up while the number if new listings hitting the market were up only slightly.

This short supply of homes created a buying frenzy for the few available homes on the market and of course bidding wars ensued, driving up prices.

In 2011 the median home price in Belmont was reported as $870,000 while in 2012 that number reached $912,000. That modest increase of about 5% is reflected in the statistics but to a greater degree in the real world. In 2011 the median size home which sold was 1925 square feet and in 2012 the median size home sold was 1940 square feet—15 square feet larger—not significant enough of a difference to make any calculation modifications.

Belmont, though rather representative of the overall Mid-Peninsula housing market, due to its relatively small market sample or "snaphot" if you will, can be easily distorted when fewer large homes trade hands or more distressed sales occur.

For a more accurate data sample we examine the entire San Mateo County as sort of a check and balance. Of course San Mateo County includes a wide array of neighborhood housing trends--while Menlo Park home prices are climbing those in Daly City for example may be still on the decline as seen in this 2008 post. That's why when we see a dramatic market shift like the one to the left, one can only imagine how strong the lower Peninsula must be faring.

 

 

 

 

IN Belmont, here’s where you can see the market shift. Of the homes which sold in 2012, 54% sold for on average $52,000 over the seller’s initial asking price with these sellers receiving 107% of their initial asking price (not the reduced price), while 11% of homes sold at the seller’s asking price and only 35% of homes sold for less—on average $32,000 less—ultimately getting only 93% of their asking price.

Contrast this to 2011 where we see that the results appear to be almost perfectly reversed, with 58% of the homes selling for less than the seller’s asking price, 11% selling at asking and only 32% which sold for more than the asking price.

And the bids are going higher: While in 2011 if you were one of the lucky sellers to get over your asking price on average you received 103% while that number jumped to 107% in 2012.

Selling a home in Belmont did get easier—so long as you worked with a seller. With more eager buyers for each available home the average time it took to sell al home dropped from 46 days down to 37.

Why did most of the homes sell for at or above the seller’s asking price and some homes still sell for less? Because even in a hot market buyers know the inventory. They have essentially unfettered access to data and with the advent of the internet the way buyers see and buy homes has changed forever. Homes which are overpriced will continue to languish on the market even during peak market conditions, and as illustrated above, receive on average 13% less!

What’s in Store for 2013?

More of the same. Rising prices, multiple offers with only the hope that more inventory will satiate some of the eager buyers. What could be a wrench in the works? Interest rates rising or natural disasters. The economy appears on the mend and apparently buyers are moving ahead with unabashed enthusiasm for housing once again,

Are you considering selling or know someone who is?

We’d love to talk with you. We have plenty of pre-approved Buyers just waiting to jump at the next opportunity.

Want to know what we can do for you?

Each year we compare our personal statistics for listings we sold in Belmont. Last year not only did we beat the averages, we beat out the other top three Belmont REALTORS with our statistics for percent of asking our sellers received, days on market and price reductions (we had none).

While the average home in Belmont sold for 101% of asking, our seller’s received on average 103.8%--netting our sellers more than any of the other top three Belmont REALTORS.*  We also came in #1 with no price reductions or cancelled listings.

And while it took our competition 37 days on average to sell their listings, we sold all of ours in less than 7.

The best measurable results and the fact that we've sold every home we listed last year as we have done for the past 20 years, makes us a clear choice for helping you to sell your home.

If you are looking for someone to help you sell your home, we’re someone you should know.

The information contained in this article is educational and intended for informational purposes only. It does not constitute real estate, tax or legal advice, nor does it substitute for advice specific to your situation. Always consult an appropriate professional familiar with your scenario.

Drew & Christine Morgan did not necessarily participate in these sales.

DRE License Numbers 01124318 & 01174047

Drew & Christine Morgan, REALTORS | Notary Public

*All data was retrieved from MLS Listings, Inc. The Multiple Listing Service for San Mateo County.

 

 

 

 

 

 

 

Jeepers! Is That A Shiny Penny Home in Belmont?

Excitement abounds as the 2013 home buying season is in full swing. Never before have we seen so many eager buyers with smiling faces beating a path towards home ownership.

Today’s agent tour delivered several fine new additions to the inventory including this shiny penny of a home on Judson Street in Belmont.

Listed for only $649,000, this finely appointed home has three generous bedrooms, a wonderful kitchen, it’s ready for you to move right in. And let’s not forget the backyard where friends and family can frolic in Belmont's fresh air.

If you are looking for the ideal home call Drew & Christine Morgan today for information on the best of Belmont and the Peninsula!

Belmont Home Sales Reach December High - Belmont December 2012 Market Report

Thank you to all of our clients in 2012 who helped make this past year one of our best on record!

Getting the numbers out for December is always the hardest of the year. With the New Year upon us, the beginning of January is filled with reflection into the past year’s activity. We analyze where our business came from and make adjustments into our marketing for the upcoming year. We also decide which new technologies to implement and how better to serve our clients needs.

Of course looking at the previous year, it’s always interesting to see how the market has changed and we invariably stumble across an interesting statistics here and there which are not only representative of what transpired, but indicative of what may be to come. We hope you enjoy our analysis.

December of 2012 saw more of the same year over year improvements in our local housing sector. Comparing December to November one might think the market is taking a dive, but seasonally adjusting the numbers by comparing them to last December a truer picture develops.

[click on the chart above for a full size version]

SALES

We’re starting the post off with SALES instead of MEDIAN PRICE. Why? Because this year has all been about the increase in sales and low inventory. Many people including real estate agents are complaining about the lack of inventory and how few listings there are, but in reality the number of new listings have been up all year. In fact most of the agents we’ve spoken to are under the same misimpression that new listings are down—they’re not! It’s just that sales have increased so much that the lack of inventory makes it appear as though there are no homes to sell—there are—they just don’t last long.

The sale of existing single family residences in Belmont for December 2012 were up 36% over last year. Belmont had 19 homes close escrow in December of 2012 as compared to only 14 in December of last year.

This is a graph for December Belmont home sales since 1998. Remember that our market peaked in March of 2006 before beginning the largest correction in recent history for the U.S. housing market.

NEW LISTINGS

We’ve added a new category for tracking new listings each month. The lack of homes available for sale has impacted prices by creating bidding wars that drive home values up rapidly. Watch for our monthly updated chart on our web page as we implement this new metric in 2013.

There were three times as many new listings in December of 2012 as last year, while inventory levels fell to almost 1/3^rd the level in 2011. These diametric conditions lead to competition for homes not seen in years.

DAYS ON MARKET [DOM]

Homes sat on the market a lot longer than a year ago—statistically—54 days on the market in 2012 as compared to only 35 last year. One ponders why when homes are selling so fast with multiple offers would homes be languishing on the market? The answer lies in the four distressed sales in 2012 which accounted for on average 95 days on the market each—skewing the small sample.

PERCENT RECEIVED

The average percent that a seller received of their asking price has been slowly creeping up from the 100%+ highs in years past. Belmont hit a low of 96.1% of the asking price in 2009 and has been climbing up ever since. This December seller’s received 98.83% of their asking price.

When was the high? We hit 103.1% in 2000—right before the DOT COM crash.

MEDIAN PRICE

The median home price in Belmont for December 2012 was $939,000—up 6% from last December’s $885,000. This is in-step with the preliminary numbers we found which are that year-over-year Belmont homes values rose approximate 7%. Of coursed some neighborhoods went up more than others—7% is the average.

If you’re a seller who has been waiting for the market to turn around now’s your opportunity to get top dollar for your home—seriously—the best it’s been since before 2006.

Watch out for our next blog post on Belmont—A Look Back at 2012—the year the housing market began its recovery.

The information contained in this article is educational and intended for informational purposes only. It does not constitute real estate, tax or legal advice, nor does it substitute for advice specific to your situation. Always consult an appropriate professional familiar with your scenario.

Drew & Christine Morgan did not necessarily participate in these sales.

DRE License Numbers 01124318 & 01174047

Drew & Christine Morgan, REALTORS | Notary Public (650) 508-1441

All data was retrieved from MLS Listings, Inc. the Multiple Listing Service for San Mateo County.

Belmont, CA Home Values & Trends Report for November 2012

Belmont’s November housing market for 2012 shaped up like this:

SALES

Belmont home sales were down year-over-year in November of 2012 ending a nine month run of increased sales over last year.

Through November, while there have been 17 more new listings than last year there has also been 49 more sales, the reason why the inventory is so low.

Why were there fewer sales this November over last?

A good part has to do with fewer new listings in the last three months. Remember, sold homes become a statistic only after they have closed escrow which is typically 30 days after the actual sale. So since there have been 24 fewer new listings (going back to September), it stands to reason there would also be fewer sales since there are fewer homes for buyers to choose from.

Just in the last three months, there have been 83 fever homes available for sale than in 2011 during the same period. With only ten homes for buyers to choose from in Belmont this November, we imagine December sales will also drop off precipitously.

But why are there fewer new listings? Remember the election? Going back to 2008 we see November had only eights sales—happens every four years.

MEDIAN PRICE

The raw median home price in Belmont dropped 3.4% over last year in November from $933,000 in 2011 to $901,500 in 2012. The size home also dropped though too. In 2012, for 3.4% less, buyers purchased homes that were 14% smaller than last year—which translates into an actual increase of perhaps 10.6% in the median price over last November.

If one looks at the 2,068 size homes sold in 2011 as compared to the 1,772 square foot homes that sold in 2012 and applies the price per square foot of $537 that homes sold for towards the differential we get an additional $158,952, which if added to the median home price of $901,500 gives us $1,061,000 for an adjusted median home price which would be a 13.6% increase year over year. Of course this is not an exact science to determine the adjusted median home price, all we are doing is attempting to level the playing field and understand the trends.

DOM

The time it took a seller to sell their home this November was 28 days as compared to last year when that number stood at 25—a nominal change.

 

Here’s where it gets interesting…

As one can see in this chart, 2012 was a much better year to be a seller than in 2011.

 

 

Looking at this graphic above, one might wonder how if five seller’s received over their asking price in 2011 (for on average $7,000 more) how could the average they received not be over 100%? The answer is that the percent received of the asking price is calculated not from the last list price, but rather from the original list price. So in 2011 there were five sellers that received over their asking price but not the original asking price. In other words, at some point some of them had price reductions prior to getting an offer.

PERCENT RECEIVED

Overall, the percent received in November 2012 was 103.8% of the seller’s asking price.

The information contained in this article is educational and intended for informational purposes only. It does not constitute real estate, tax or legal advice, nor does it substitute for advice specific to your situation. Always consult an appropriate professional familiar with your scenario.

Drew & Christine Morgan did not necessarily participate in these sales.

DRE License Numbers 01124318 & 01174047

Drew & Christine Morgan, REALTORS | Notary Public (650) 508-1441

All data was retrieved from MLS Listings, Inc. the Multiple Listing Service for San Mateo County.

 

 

Related articles

Belmont Home Values for October 2012 - More Positive News for Homeowners

Peninsula Housing Recovery--For Real or Dead Cat Bounce

Today, November 27^th 2012 Case-Shiller released its home price index results through September of 2012 and for the past eight straight months it has slowly but steadily increased.

Are we bouncing along the bottom or is the housing recovery in full swing? Of course it depends which housing market you are talking about but here on the Bay Area Peninsula we are definitely on the upward track.

 

Note that the market hit its low point in March of 2009. Much of the uptick since then was a normal part of any business cycle, but it appears that the government stimulus—the $8,000 tax credit for first time homebuyers may have helped buoy the market until more sustainable growth could take hold.

One can see that in each year, absent government intervention, the housing market index dropped between August and September—until this year—giving rise to the hope that this year may have marked the beginning of a true housing recovery, and not just another dead cat bounce.

If you are interested in what the Case-Shiller index is and the methodology they use you can find that on their web site here. Of course we also have the index in graph for on our web page at MorganHomes.com.

The information contained in this article is educational and intended for informational purposes only.

It does not constitute real estate, tax or legal advice, nor does it substitute for advice specific to your situation. 

Always consult an appropriate professional familiar with your scenario. 

Belmont Home Values for October 2012 - More Positive News for Homeowners

Belmont Housing Continues Path of Recovery

The good news is Belmont has shown a steady increase in home sales despite lower than normal inventory levels. The median home price in Belmont is tracking in an upward directions and it’s clear that Belmont is firmly in a seller’s market territory once again.

  

SALES

October of 2012 saw more than a 100% increase in home sales year-over-year with 23 home sales in Belmont as compared to only 11 last October; this despite the fact that the number of new listings, at 23, was unchanged year-over-year. With 23 new listings in October of 2012, and 23 sales, the “months of inventory” has dropped from five months a year ago to less than two in 2012. The national inventory of homes stands at around a six months supply.

MEDIAN PRICE

Always the interesting number to wrap your head around in Belmont. Since the statistical sample is so small it tends to swing wildly depending on whether smaller or larger homes are selling in a given month.

This October the median price was $989,500 compared to just $806,000 a year ago representing what might appear to be a 23% increase year—over—year. It’d be easy to leave it at that, but the fact is in 2012 the size homes that sold in October were 267 square feet larger than last year. If we adjusted last year’s median price by multiplying the difference in square footage by the median price per square foot that homes are selling for, we get $134,034.

If we add $134,034 to $806,000 we get $940,000 as a modified (adjusted) median home price for last October as compared to this October. If we use this adjusted median price for last October we get a 5.2% increase in the median home price year—over—year.

Looking at it from another angle as a percentage it works out like this:

In October of 2012 you could buy a home 15% larger than in October of 2011 but you had to pay 23% more. So did values go up 8%? That’s probably pretty close. Certainly somewhere between five and eight percent. The point is values are going up, not down.

DAYS ON MARKET (DOM)

The time it took the average home to sell in Belmont was unchanged from last year at 22.

PRICE REDUCTIONS

In October of 2011, two sellers or 18% had to lower their asking price by on average $58,000 in order to attract a buyer. This year 22% lowered their asking price by on average $87,000. Why more this year if prices are on the increase and it’s a seller’s market?

Often times in increasing market sellers will want to jump on the bandwagon of price increases and become overly enthusiastic after seeing what their neighbor received. They’ll list their home at what the last home sold for, theorizing that if their neighbor received that much, they should be able to do so as well.

There are inherent problems with this mindset. Assume a seller prices their home at $998,000 as the seller did on Monroe in Belmont last month (see graphic) and receives a whopping $202,000 over their asking price with multiple bidders. This home now closes escrow for $1,200,000 and the neighbor next door thinks to himself, “Hey, I’ll sell my house for $1,200,000 then too”. But it doesn’t work that way. The first seller received 120% of their asking price by attracting multiple buyers to their home and ONE BUYER was willing to pay $202,000 over the asking price. The next closest bid could have been $100,000 over the asking price for all we know—which of course is $100,000 below the highest offer; and the highest bidder already bought a home, so even if the neighbor as an identical home (which they never do), and were to price it at the last sale price, they will be woefully disappointed since the next closest buyer may have been only willing (or capable) of paying $1,100,000.

PRICE RECEIVED

This October eight sellers or 35% received on average $12,000 less than their asking price. Last October seven sellers or 64% received on average $29,000 less.

In each period 9% of the sellers received their asking price.

Thirteen sellers or 56% of all homes sold in October of this year received on average $58,000 over their asking price compared to last October when only 27% received on average $65,000 more.

The overall percent that the sellers received of their asking price was 98% in 2011 and 102% in 2012.

If you are trying to figure out how all of this works—why some sellers get over their asking price and others far less, it all boils down to the way a home is presented. If you follow our three “P's’” to profitability—Preparation,Price, & Promotion^sm , it won’t happen to you.

You might want to know that of the eight sellers who had to lower their asking price (by on average $87,000) to attract a buyer—three of them had to take on average another $50,000 less in the offer they accepted.

How long did it take these overpriced listings to sell? The answer is 43 days as opposed to the sellers who priced their home aggressively. Those sellers averaged $63,000 over their asking price in only 13 days—receiving 107% of their asking price rather than 98% as with the overpriced listings.

One wonders, with some sellers so concerned about the commission they are paying their agent, why wouldn’t they pay more attention to the results their agent gets, instead of listing their home with the agent who gives them the highest suggested list price for their home? That nine percent swing between a well price home and an overpriced home, at the median home price in Belmont, translates into nearly $88,000 left on the table.

The information contained in this article is educational and intended for informational purposes only. It does not constitute real estate, tax or legal advice, nor does it substitute for advice specific to your situation. Always consult an appropriate professional familiar with your scenario.

Drew & Christine Morgan did not necessarily participate in these sales.

 

 

The information contained in this article is educational and intended for informational purposes only. It does not constitute real estate, tax or legal advice, nor does it substitute for advice specific to your situation. Always consult an appropriate professional familiar with your scenario.

Drew & Christine Morgan did not necessarily participate in these sales.

Belmont Home Prices Enjoy Significant Increase - September 2012

Belmont is still humming along into the fall home buying season with robust sales and other positive indicators.

 

MEDIAN PRICE

The median home price reported for Belmont in the month of September was $938,000 while in 2011 it was $962,500. Factoring for the size homes sold in these two periods it’s clear values have actually risen, not declined.

The median home you could buy this year for $938,000 was 1,719 square feet while in September of 2011 $962,500 bought you a median size home of 2449 square feet—or roughly 42% larger.

If we look at the price per square foot that the homes were selling for back in 2011 at $469 per square foot, that could account for $342,000 of home—pushing this September’s true median price closer to $1,280,000.

SALES

Sales were essentially flat over the two periods as 19 homes sold in Belmont this year and 18 last September.

DAYS ON MARKET

The time it took for a Belmont seller to find a buyer dropped from 62 days in 2011 to only 28 this September.

PERCENT RECEIVED

The amount the sellers have received in Belmont has risen too. Last September the average Belmont home seller received only 98.6% of their asking price while this September that has shot up to an amazing 102.3%. On a special note, year to date that's higher than any other city in the county!

PRICE REDUCTIONS

In September of 2011 five sellers lowered their asking price by on average $113,200 in order to attract a buyer. Then those same five sellers finally received offers which were on average another $53,000 lower than their lowered price; and to add insult to injury, it took these sellers 152 days to finally close the deal. That’s a long time to keep one’s home immaculate.

In 2011 13 homes sold for on average $43,000 less than their asking price, one home sold right at asking, and 4 homes sold for on average $91,000 more. This year only six homes sold for less than the seller’s asking price for on average $42,000, two homes sold right at asking and 11 sold for on average $53,000 more.

Seller’s here’s your lesson. Where less of an asking price is actually more, buyers are feverishly snapping up well priced homes. We’ve sold each of our listings this year in less than 11 days and on average in eight and every one of these has sold with multiple bidders for on average 104% of the asking price.

 

The information contained in this article is educational and intended for informational purposes only.

It does not constitute real estate, tax or legal advice, nor does it substitute for advice specific to your 

situation. Always consult an appropriate professional familiar with your scenario. 

Drew & Christine Morgan did not necessarily participate in these sales.

Belmont and San Mateo County Show Increased Home Sales in 2012

Many buyers on the Peninsula have been frustrated this year with the low inventory of homes to choose from and the reason why this is so seems to be a combination of a shortage of new listings coupled with increased home sales over the same period last year as this Belmont Home Report graphic illustrates.

[Click on the graphic for a full sized image]

This graphic for San Mateo County reveals a similar trend. What created the current low inventory levels of homes are not just that fewer homes were listed for sale, but rather an increase in sales this year as compared to last. The month’s of inventory, which is the current inventory of homes for sale divided by the current rate of sales, has dropped in half from the same time last year.  

 

*The percentages in both of these graphics are the percentage change from one year ago.

The Case-Shiller study (which lags the market by three months) shows a recent steady increase in home values. This is one of the most accurate barometers on a macro level since rather than tracking the median price in a given city—which can vary greatly depending on whether larger or smaller homes are selling—it uses a repeat sales pair methodology wherein it tracks only homes which have sold repeatedly under strict controls to eliminate a non-arm’s length home transfer, or homes which have increased in value by extensive remodeling. The Bay Area’s Metropolitan Statistical Area (MSA) encompasses five of the nine Bay Area counties which are San Francisco, Alameda, Marin, Contra Costa, and San Mateo County. Because of the large selection area, your area may be doing much better or worse than the composite MSA.

 

What seems to have changed from the increase you see in the graph from last summer when the index was actually higher, is that buyers seem to be more comfortable entering the market this year. Clearly values are still low, interest rates even lower, and local job creation has increased the consumer confidence level on a local level. We predicted that this market would “bounce along the bottom” for awhile before seeing any substantive increase. But given the strong performance on the Peninsula, we believe for now, that we’ve passed the trough and are hopefully headed for a rationale, sustainable steady increase in home values.

 

 

The information contained in this article is educational and intended for informational purposes only. 

It does not constitute real estate, tax or legal advice, nor does it substitute for advice specific to your

situation. Always consult an appropriate professional familiar with your scenario. 

 

When do I Need A Contingency in my Offer?

To Have or Forgo Contingencies When Buying a Home

So, contingencies, yes--well as agents, we love them because they help insulate us from future lawsuits. But as a buyer, they can cost you money and they will most certainly cost you a home or two in a competitive market. Here's why. Faced with a multiple offer situation on a property, buyers will often try and make their offer stand out above their competition. And there are two ways to do that--the terms they offer and the price they pay.

In a multiple offer situation, buyers often exceed the asking price and offer terms that are exceptionally attractive to the sellers. Many offers will contain no contingencies for any inspections, loans or appraisals. They'll purchase the home in its present condition and forgo asking for any repairs. At times they'll even let the seller rent their home back for awhile while they relocate.

On the flip side, some buyers despite the fierce competition for a property are unwilling to waive having contingencies. Here's why this can hurt their position: Let's say for example that a seller has already performed inspections at their cost with reputable inspectors, yet a buyer wants a seven day contingency to have more inspections from what could be not so authoritative or reputable inspectors. This causes many sellers to be leery and it could put the seller in the position of getting poorly done reports which they would then need to turn over to any other prospective buyer.

Of course they would also have to go out and try and refute any erroneous or exaggerated claims in the reports which might take two more professional opinions before being seen as credible. That's a lot of wasted time, money and effort and could taint the home in the meantime. So if a buyer is comfortable (as they can be) enough to move forward with the inspections on hand, they have an upper hand.

Case in point, say a seller receives an offer for $1,000,000 with no contingencies and one for $1,010,000 with ten days for inspections and loan contingencies. They'll very likely take the offer for $10,000 less with a better guarantee of a sure sale. What that means is if your offer contains contingencies, you may have to offer significantly more to garner the seller’s attention--say $20,000. What you effectively have done then is spend $20,000 just to have another opinion, not to mention the added cost of another inspection--$20,000 that could be better spent on improvements that increase the value of your home, or put towards any issue that might be found later. Alternatively, the seller may simply ask the non-contingent buyer to meet your price and you’re out of a home.

Now with all that said there are times when not having another inspection would be reckless and of course we'd admonish anyone against doing so if that were the case.

As for loan contingencies, this is why it is important to know that you are pre-approved for the price you are offering. You can also always "double app" which is a term for applying with more than one lending institution to make sure you have a fallback plan. If you get two lenders to agree that your loan will not be an issue then you might feel comfortable enough to not have a contingency for a loan.

Appraisal contingencies run along the same lines. If the home you are buying does not appraise with a particular lender at the value you offered, since the lender will only lend on 80% of the appraised value, you would need to make up 80% of the difference, or go with lender #2 and try and get a better appraisal. There's risk of course, but if you're sure you could make up any shortfall, you just mitigated that risk.

Allow me to explain further. Say you put in a non-contingent offer on the above mentioned million dollar home. You goal was to put 20% down and get an 80% loan--which is typical. In this scenario you would be putting $200,000 down and financing the other $800,000. But let's say the appraisal comes back at only $950,000. Your lender will of course only lend on 80% of the appraised value of $950,000 which would be $760,000 rather than the $800,000 you had hoped for. Are you on the hook for the entire difference? No. just 80% of it. You would now have to put $240,000 down rather than $200,000--not the entire $50,000 shortfall. So bear in mind if you have no contingencies and you are faced with the possibility of losing your earnest money deposit (typically 3% of the purchase price), this is a viable alternative.

That said, we've only sold one home in 20+ years where the appraisal fell short and in that case we were prepared that it might. But a bad appraisal is by far the exception to the rule. We estimate 99.8 % of our sales appraise at the offered price and even a few have gone over in recent years. In fact, in our entire career we have never had a buyer lose their earnest money security deposit over qualifying [or anything else]. So albeit that risk exists, it's limited to your earnest money deposit and furthermore diminished but the odds that you'll probably never even have to deal with a bad appraisal.

In today’s competitive market environment, it’s difficult to secure a home if your offer contains too many caveats. Contingencies should not be viewed as something you want, they should be regarding as something you need; because any contingency you can do without just made your offer that much better without having to pay more for the home.

 

The information contained in this article is educational and intended for informational purposes only. It does not constitute real estate, tax or legal advice, nor does it substitute for advice specific to your situation. Always consult an appropriate professional familiar with your scenario. 

 

Greek Festival in Belmont 2012 - Free Tickets Just For The Asking!

It’s that time of the year again for the Greek Festival in Belmont.

Each Labor Day weekend the Greek Orthodox Church hosts its annual Greek Festival at the Church of the Holy Cross at the corner of Ralston Avenue and Alameda de las Pulgas. This year, the Greek Festival in Belmont will be held September 1^{st -} 3rd 2012- Saturday, Sunday from 12:00 PM to 10:00 PM and Monday noon-8:00 PM . If you love to try great food and spirits you’ll be in heaven. The Greek Festival never disappoints when it comes to entertainment for the whole family.

As a supporter of the Greek Festival, we have complimentary tickets for you and your family. Simply use this form to request your tickets and we’ll get them to you A.S.A.P. (Children under 12 are free)

 

Here’s some more information on the event from their web site…

Find the meaning of kefi (joy) in this three-day true Greek extravaganza. The Belmont Greek Festivalwill feature delicious Greek meals and desserts, nonstop music and dancing, exciting exhibition folk dancing, choral folk singing, a captivating mythology play, a fun children’s amusement area, and children’s entertainer Andy Z.

Belmont Greek Festival Set for Labor Day Weekend, Sept. 1-3

Belmont, CA – Opa! Whether you shout this joyful Greek expression or not, you will be welcomed with plenty of warm Greek hospitality, as well as an abundance of fabulous Greek food and entertainment, at the 42nd Annual Belmont Greek Festival in the mid-Peninsula, Labor Day weekend, Saturday, September 1, through Monday, September 3, at the Greek Orthodox Church of the Holy Cross, 900 Alameda de las Pulgas (corner of Ralston Avenue), in Belmont.

The three-day Belmont Greek Festival is expected to draw nearly 20,000 visitors for the homemade Greek meals, specially-prepared desserts, nonstop entertainment and fun children’s amusement area, according to festival organizers.

“We love to offer our hospitality and share the Greek culture with our guests,” said Festival Chairman Michael Malekos.

“When we shout, ‘Opa,’ it’s a way of saying that we’re happy, and we’re grateful to God and to everyone around us for the joy that we’re feeling,” Malekos said.

“It also means we’re excited about what we’re doing. It’s kind of like saying, ‘Woo hoo!’”

Festival menu items that are sure to bring on shouts of joy include barbecued lamb chops (with special Greek seasonings), souvlakia (Greek shish-kebab), spanakopita (spinach and cheese stuffed inside layers of filo pastry) and dolmades (grape leaves wrapped around ground beef and rice).

There will also be traditional homemade Greek pastries such as loukoumades (doughnut holes covered with honey), baklava (layers of nuts and filo pastry soaked in honey), kourambiedes (crescent-shaped butter cookies covered with powdered sugar) and galactobouriko (filo pastry filled with custard and covered with syrup).

On the plaka, or central plaza, visitors will enjoy continuous music from a Greek band so they can dance the traditional kalamatiano, tsamiko, zeimbekiko and other Greek dances.

In addition, award-winning folk dance groups will perform throughout the weekend in their colorful, hand-made costumes. In an outdoor amphitheater reminiscent of the ancient theaters of Greece, children and adults alike will enjoy a special theatrical production spotlighting the heroes and villains of Greek mythology. The popular Festival Singers and Folk Ensemble will also perform Greek folk songs in the amphitheater.

Also, children’s entertainer Andy Z will take the amphitheater stage to present his award-winning show featuring imaginative songs, stories, dances and colorful characters.

The Fun Zone children’s area will offer games, rides, bouncy castles, crafts and more.

Tours of the award-winning Byzantine-style church, including the recently-installed mosaic iconography, will be given throughout the weekend, and the Holy Cross Choir will sing during the first church tour on Sunday.

Other festival highlights will include the agora (flea market), art, clothing, jewelry and gift boutiques, cooking demonstrations, religious icons and a bookstore.

The Church of the Holy Cross supports many charitable groups throughout San Mateo County, and each year, the church donates a portion of the festival proceeds to several local charities. Previous recipients of festival donations have included Samaritan House, Interfaith Network for Community Help (INCH), Children’s Advocacy Council, local schools and churches and the Belmont mayor’s choice of charity.

The hours of the Belmont Greek Festival are Saturday, September 1, and Sunday, September 2, from Noon to 10 PM, and on Monday, September 3, from Noon to 8 PM. The Fun Zone for children is open Noon to 7 PM Saturday and Sunday, and closes at 6 PM on Monday. The agora (flea market) closes at 6 PM all three days.

Admission is $5 for adults and $2.50 for seniors and youth ages 13-17. Children 12 and under are admitted free, accompanied by a parent or guardian.

For more information, continue exploring this website, or call (650) 591-4447. And don’t forget to tell them, ‘Opa!’

How to Feed a Festival

The Belmont Greek Festival proudly makes all meals by hand using fresh, authentic ingredients. What does it take to feed our thousands of cherished guests?

The Festival by the Numbers . . .

600 lbs. filo pastry
420 lbs. butter
850 lbs. sugar
350 dozen eggs
more than 500 lbs of butter
a mere 210 gallons of honey

1500 lbs. chicken
1300 lbs. lamb (whole, chops & shanks)
1000 lbs. squid (kalamari)
600 lbs. flour
900 eggplants for moussaka
more than 500 lbs. of feta cheese, and too many lemons to count!

# # #

Admission is $5 for adults and $2.50 for seniors and youth ages 13-17. Children 12 and under are admitted free, accompanied by a parent or guardian. 

For more information, explore their website further, or call (650) 591-4447. Yassou!

Mid-Peninsula Notarial Services in Belmont

For those of you who have the occasion to require Notarial services, we’d like to remind you that we are located next door to Vivace in Belmont at 1940 Ralston Avenue in the RE/MAX Star-Carlmont office.

We can perform any Notarial Services as allowed by law. What is not allowed? Many people are confused as to the purpose of a Notary.

A Notary Public is an official of integrity appointed by state government—typically by the secretary of state — to serve the public as an impartial witness in performing a variety of official fraud-deterrent acts related to the signing of important documents. These official acts are called notarizations or notarial acts. Notaries are publicly commissioned as “ministerial” officials, meaning that they are expected to follow written rules without the exercise of significant personal discretion, as would be the case with a “judicial” official.

Impartiality is the byword of the Notary office and the foundation of its public trust. Notaries are duty-bound not to act in situations where they have a personal interest. The public trusts that the Notary’s critical screening tasks have not been corrupted by self-interest. And impartiality dictates that a Notary never refuse to serve a person due to race, nationality, religion, politics, sexual orientation or status as a non-customer.

As official representatives of the state, Notaries Public certify the proper execution of many of the life-changing documents of private citizens — whether those diverse transactions convey real estate, grant powers of attorney, establish a prenuptial agreement, or perform the multitude of other activities that enable our civil society to function.

If you need more specific information on what Notaries can and cannot do this is a link to a pdf describing the scope of authority Notary's hold in California.

We’re surprised how many people request Notarial services but don’t know what type of Notarial act they need. Unfortunately, we are not allowed to offer advice as to which type of Notarial act is to be performed therefore you must ask whomever is requesting that a document be notarized, which act is required. The most common one by far is an Acknowledgment followed by a Jurat.

Acknowledgments:

The form most frequently completed by the notary public is the certificate of acknowledgment.

The certificate of acknowledgment must be in the form set forth in Civil Code section 1189 [see below].

In the certificate of acknowledgment, the notary public certifies:

•             That the signer personally appeared before the notary public on the date indicated in the

county indicated;

•             To the identity of the signer; and

•             That the signer acknowledged executing [signing] the document.

Acknowledgment information

An acknowledgment is a notary act where the signer acknowledges signing a document

before a notary public. The act of presenting a signed document before a notary

public and asking the notary public to notarize the signature constitutes acknowledging

signing the document. The document may be signed before being in the presence of the

notary, however, the signer must appear before the notary public to sign the notary

journal and receive the affixation of the notary seal on the notary certificate.

This is the new wording for a California acknowledgment certificate

State of _____________

County of ____________

On_________  before me, ________________________________________,

                                                      (name of notary public )

personally appeared _____________________________________________

who proved to me on the basis of satisfactory evidence to be the person(s)

whose name(s) is/are subscribed to the within instrument and who acknowledged

to me that he/she/they executed the same in their authorized capacity(ies),

and by his/her/their signature(s) on the instrument the person(s), or entity

upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY of PERJURY under the laws of the state of California

that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

 

____________________________

       (Signature of Notary)

Once again many documents are brought to us for notarization but the wording is incorrect. We’re surprised that many documents prepared by attorneys, such as trusts, and loan documents prepared by major lending institutions which still lack the correct Notarial wording. In cases like this we can still notarize a document but we must attach a “Loose Certificate” that contains the proper language. It is illegal for a notary to notarize a document without the proper language. Examples of Acknowledgement might be a request for an original birth certificate, a deed of trust for a home, or any document where you just need a Notary to verify that you signed a document.

 

JURATS

Jurat information

A Jurat is a type of notary act where the signer must swear under oath before 

a notary public. Jurat certificate wording must accompany all Jurat notary acts 

either within the document itself, after the signature area(s), or on an attached 

[Loose] certificate form. An example of where a Jurat might be used instead of a 

The new California Jurat requires the signer to be positively identified.

A Jurat no longer allows the signer to be identified on the basis of being

personally known to the Notary. Here is the new California Jurat wording:

State of _____________

County of ___________

Subscribed and sworn to ( or affirmed ) before me on

this ____________ day of _____________, 20___ by

____________________________________________________, proved to me on the basis

of satisfactory evidence to be the person who appeared before me.

___________________________

    ( Signature of Notary )

 

Once this is complete, the affiant [you] are given an oath wherein you swear that what you declared to be true is in fact true, under penalty of perjury.

An example of where a Jurat might be used instead of an Acknowledgment is where you are swearing that the content of a letter are true for example, as opposed to using an Acknowledgment just to verify that your signature is valid.

By California state law, a Notary may only charge $10.00 per Notarized signature. However, there is no limit on what they can charge for travel expenses should they need to come to an off-site location.

Call us ahead of time to arrange for Notarial services if you need them (650) 508-1441 or cell

(650) 464-7654.

The information contained in this article is educational and intended for informational purposes only. It does not constitute real estate, tax or legal advice, nor does it substitute for advice specific to your situation. Always consult an appropriate professional familiar with your scenario. 

Case-Shiller Reports Another Increase in Bay Area Home Prices

Last Week in the News

---

The Standard & Poor's/Case-Shiller 20-city housing price index — on a non-seasonally adjusted basis — rose 2.2% in May, following a 1.3% increase in April. On a year-over-year basis, prices fell 0.7% compared with May 2011.

The Bay Area MSA (Metropolitan Statistical Area) fared even better as is often the case. For the last four consecutive reporting periods the index as been up. The index lags real time by three months so May's number have just been released and they show more than a 10% increase since February 2012.

The Bureau of Economic Analysis reported that personal income increased $61.8 billion or 0.5% in June. Consumer spending was flat in June, following a 0.1% decrease in May.

The Mortgage Bankers Association said its seasonally adjusted composite index of mortgage applications for the week ending July 27 rose 0.2%. Refinancing applications increased 0.8%. Purchase volume fell 2%.

Manufacturing activity rose to 49.8 in July after a reading of 49.7 in June. A reading below 50 signals contraction. This was the second consecutive contraction since July 2009.

Total construction spending rose 0.4% to $842.1 billion in June from an upwardly revised 1.6% increase in May. Compared to June 2011, construction spending is up 7%.

Factory orders fell 0.5% in June to a seasonally adjusted $465.8 billion, following a revised 0.5% increase in May. Excluding the volatile transportation sector, orders decreased 1.8% in June.

Non-manufacturing activity rose to 52.6 in July from 52.1 in June. A reading above 50 signals expansion. It was the 31st straight month of expansion in the services sector.

Initial claims for unemployment benefits for the week ending July 28 rose by 8,000 to 365,000 from an upwardly revised 357,000 the prior week. Continuing claims for the week ending July 21 fell 19,000 to 3.272 million. The unemployment rate rose to 8.3% in July from 8.2% in June. Employers added 163,000 jobs in July.

Upcoming on the economic calendar are reports on consumer credit on August 7 and wholesale trade on August 9.

 

Belmont Home Sales Skyrocket into Summer

Welcome to Summer!

Belmont homes sales are continuing their strong push into summer with another year-over-year increase over June of 2011.

(Click on the spreadsheet for a full size image)

↑SALES

In June of 2012, 25 homes traded hands and closed escrow while in June of 2011 there were only 15. That represents a 66% increase in Belmont home sales year-over-year.

↑MEDIAN PRICE

The median price also appears to have increased. While in 2011 the average home sold in June was 1,769 square feet with a  median price of $846,000, this June the median home sold was 2,030 square feet and closed escrow for $1,050,00—a 23% increase in the median price. And while that $200,000 real dollar increase over last June seems impressive, it’s mitigated to some degree if we account for the fact that this June the size homes which sold were 261 square feet or 15% larger. One can loosely suggest that the increase was probably closer to 23%-15% or a more modest 8%.

Still, an 8% increase is pretty impressive considering Belmont home values dropped only around 18-24% over the last five years.

↓DAYS ON MARKET (DOM)

The time it took a seller in June of 2012 to sell their home was once again higher this year than last. Last year the average home sold in 36.8 days while this year they took almost 50 days to sell. And for that, we still have no verifiable explanation. 

↑PERCENT RECEIVED of ASKING (%)

Sellers were undoubtedly happy to have received on average 102.6 % of their asking price as compared to last June when sellers received only 99.7%. That 2.6% represents the sellers receiving on average $23,000 more than their asking price.

↓PRICE REDUCTIONS

In June of 2011, 13% of sellers had to lower their asking price expectations while in 2012 that number increased to 16%, one possible explanation for the longer days on market trend.

↑PRICE RECEIVED

In June of 2012, 60% of the sellers enjoyed offers which exceeded their asking price by on average $58,000, while in 2011 only 40% of the homes sold over the asking price and for only $21,000.

This is a remarkable change which reflects that REALTORS® are still pricing homes based upon old news and Buyers are continuing to make market-force corrections in favor of higher prices. The benchmark high sale price for a home selling over asking went to a home on Notre Dame that had a beautiful park-like rear yard with a rather small home—1 ,450 square feet—and need quite a bit of updating. That home listed at $925,000 and sold for $1,070,000—selling by $145,000 over asking!

Homes which sold under the asking price in 2012 accounted for 36% of all closings while in 2011 that number was a stunning 60%.

INVENTORY

Clearly we are seeing a continuation of lower than usual inventory levels which has the effect of driving up competition.

To put this into perspective, the inventory of available homes for sale in Belmont stood at 60 in 2011 as contrasted to this year’s extremely low inventory level of 39—a 35% drop of available homes for sale.

If you have been waiting for Belmont home values to turn around, they have. It’s clearly a seller’s market right now and opportunity knocks if you’ve been waiting to get top dollar and downsize, supersize or relocate.

If you are a buyer, now more than ever you need en experienced REALTOR® to help you navigate the treacherous offer waters.

The information contained in this article is educational and intended for informational purposes only. It does not constitute real estate, tax or legal advice, nor does it substitute for advice specific to your situation. Always consult an appropriate professional familiar with your scenario.

Drew & Christine Morgan did not necessarily participate in these sales.

 

Belmont Home Prices - May 2012

Belmont home sales for single family residences in May of 2012 reflect our intuitive observations about our local market. You might still hearing disheartening stories of the depressed housing market and certainly many areas of the country are still feeling the pain associated with the downturn. However like, the weather, real estate is very local and what goes on in one part of the country can have no bearing on another.

SALES

Belmont’s housing market is robust this year after a five year downturn. Inventory remains tight. Compare last year’s inventory in May of 2011 at 48 to May of 2012 when Belmont’s jousting inventory was only 42. Doesn’t seem like a big difference does it? But if you look at the 26 homes sold in Belmont this year and compare that to the 15 homes sales last year, you see that we had a 73% increase in sales.

INVENTORY

The best way to express this is in months of inventory—the time it would take to sell off all of the existing homes for sale (inventory) at the current pace of monthly sales. That number has dropped to only 1.84 months—with the statewide average hovering around six. Last year at this time the months of inventory held at 2.83—a low for the year.

DAYS ON MARKET

The time it takes the average home to sell in Belmont actually increased from only 17 days last June to 30 this year.

MEDIAN PRICE

The median price continues to swing wildly as the mix of larger and smaller homes varies so greatly in Belmont from month to month.

In June of 2011 the median home price in Belmont was $949,000 and for that one could buy a 1,257 square foot home. This June in 2012 the median price has dropped to $845,000 but so did the size home one bought—it dropped to 1,790. That 367 square foot difference could account for as much as $190,000 differential in the median home value—meaning the true median home price might actual be hovering around $1,034,000 for the month of May in 2012.

MARKET ACTION

In June of last year 33% of the homes that sold went for under the seller’s asking price, contrasted to this year when only 27% accepted a lower price. In 2011 27% of sellers received their asking price while in 2012 only 8% did so. But that’s because in 2012 so many more received over their asking price. While in 2011 40 of the Belmont homes that sold went for over the seller’s asking price, this year that number jumped to 65% and on average the seller’s received 104.36 percent of the asking price--a nice surprise for sellers indeed.

If you enjoy reading about our hyper local market activity in Belmont you can click here to receive a weekly report of Belmont housing activity (or many other zip codes) emailed to you each Monday morning.

 

Disclaimer:The information contained in this article is educational and intended for informational purposes only. It does not constitute real estate, tax or legal advice, nor does it substitute for advice specific to your situation. Always consult an appropriate professional familiar with your scenario. 

 

 

 

Regulations for Barbeques on Balconies and Patios

Now that the summer season is kicking off, it's time to get back in the grilling groove. According to the National Fire Protection Association, gas and charcoal grills cause more than 8,000 house fires each year. Before firing up the grill, homeowners should consider these safety tips:

• Grills should be located no closer than 10' (3m) from any structure. Never use a grill under a porch, deck, overhang, carport, or in a garage. Make sure the grill rests on a stable surface and can't be tipped over. In California, there are specific regulations that were adopted in 2008 which restricts the use of open flame grills in multi-unit buildings (apartments and Condominiums with greater than two units). Here is a brief summary of the rules and a more in-depth FAQ pdf is on-line and available here.

Open-Flame Cooking Devices: It is not acceptable to operate a charcoal barbeque unit on a combustible (e.g., 
wood) balcony or within 10 feet of combustible construction, including the surrounding walls and overhang.  It 
is acceptable to operate such a barbeque on a balcony if the balcony, deck, overhang, and adjacent walls are of 
non-combustible construction, or if the balcony is protected overhead by an automatic fire sprinkler system.  It 
is okay to store a charcoal barbeque unit on a combustible balcony.

• Never use a propane or charcoal grill indoors.
• Check hoses and connections on gas grills periodically throughout the grilling season. Replace any cracked or brittle hoses before using the grill. Propane cylinders should never be stored inside a garage or other structure at any time.
• Start charcoal fires using a chimney starter instead of charcoal fluid. Not only is a chimney starter safer, but your meal will taste better. If charcoal fluid is used, never add it to the coals once the fire has been lit.
• Once the grill is lit, never leave it unattended. It can take just a few seconds for a serious fire to erupt.
• While lighting and cooking on the grill, do not wear clothes that are loose-fitting or that have wide sleeves that could catch fire. Use long-handled utensils to handle food while cooking. Wear close-toed shoes while at the grill - you can always change to flip flops later.
• Control flare ups by lowering the heat on a gas grill. On charcoal grills, remove the food from the grill and distribute the coals more evenly. If necessary, a flare up can be put out with water from a spray bottle, but remove food from the grill first to avoid smoke contamination.
• To help prevent grease fires, remove any accumulated grease and residue from inside the lid of the grill at least every 5-6 uses. Baking soda can be used to extinguish a grease fire still contained within the grill unit.

Always keep young children and pets away from the grill during and after cooking. The grill's exterior can remain hot long for a long time. 

 

Belmont Home Sales - June 24th 2012

Belmont home sales remain brisk with demand continuing to outpace supply. With the summer season underway and folks on vacations (including their agents), sales tend to wane a bit but prices typically remain firm.

Don't read too much into the median price trend. With such a small market sample, this number is highly susceptible to wild swings due to larger or smaller homes selling in a particular week.

Belmont Homes Values - Week of May 14th 2012

This is our brief market report for the week of May 14th 2012. Belmont homes sales continue to hold steady for well priced homes, which have had sufficient market time and were properly advertised. Many of these homes are selling above the asking price. 

There are currently only 29 active homes for sale and 39 which are pending sale. Normally for Belmont an inventory over 50 homes for sale is indicative of a waning market for sellers.

 

The information contained in this article is educational and intended for informational purposes only. It does not constitute real estate, tax or legal advice, nor does it substitute for advice specific to your situation. Always consult an appropriate professional familiar with your scenario. 

3597 Altamont Way, RWC - Shiny Penny Tour for 5/8/2012

Those of you wishing to live in Redwood City where the weather is “best by government test” are  getting a heads-up as we bring you this Coldwell Banker listing as our “Shiny Penny” from the REALTOR tour today.

This three bedroom two bath home at 3597 Altamont Way enjoys Roy Cloud Elementary school and Woodside High. It has a nice 2,010 square foot floor plan and some usable rear yard area that is level. The lot is very large at 7,519 square feet.

Listed for $818,000, this home should bring more than one eager buyer to the table.

It’ll be open Saturday, May 12^th from 2:30-4:40 and again on Sunday from 1:39-4:30 by why mess up a perfectly good Mother’s Day. Call us and we’ll get you a private showing anytime this week.

Want more information on this home? Contact us at (650) 508-1881 or email infor@morganhomes.com

 

Belmont School Boundary FAQ

You can find the Belmont School District's FAQ regaridng school boundaries here.

Just Listed! 1532 Altura Way, Belmont

Belmont Home Values - Week of April 16th 2012

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Belmont Home Sales - March 2012

Belmont Homes Sales on The Rise

After an extremely busy winter home selling season and an unusually active spring, these are the home sales in Belmont for March 2012.

The media hasn’t mentioned much about the multiple offers which are once again very prevalent, but then it usually takes several months of prolonged activity before sales become statistics. If you’re someone who would rather get ahead of the market, now’s a good time to assess your position in the housing market.

[click on the image for a full-sized graph]

NUMBER OF HOMES SOLD  - Belmont’s homes sales improved dramatically from March of 2011. Home Sales in Belmont were up 29%, from 17 sales last year to 22 this March. 

DAYS ON MARKET  - The time it took to sell a home in Belmont dropped from 43 days last March to only 38 this year.

PERCENT RECEIVED - Sellers not only sold their home faster they also received closer to their asking price. The average seller this March received 101.6% of their asking price compared to last March when sellers received 99.4%.

REDUCING THE PRICE -  Last year 29% of sellers had to lower their asking price expectations by on average $43,000 to attract a buyer. This March only 14% [three sellers] lowered their asking price before obtaining an offer. Either buyers are willing to pay more, or sellers are listening to their agent’s advice on pricing their home.

MEDIAN PRICE  - The Median price was up from last March’s $840,000 to this year’s $899,000, though the size home one could purchase this year was also larger by 12%, essentially negating any perceived increase in the median home price. Interestingly, this does not ring true with what we are seeing; for which we offer the explanation that statistics alone cannot account for the condition of the homes which sold. If last year homes which sold were smaller but in much better condition than the homes which sold this year, the price per square foot would be much higher for homes sold last year—which happens to be the case.

The Belmont home market is very strong right now. Most homes are selling in multiple offers. We recently sold a home at 1528 Altura Way in Belmont. Listed for $915,000 we received four offers and it sold in ten days for $962,000. This week we closed escrow on our listing at 2605 Read Avenue. We listed that home at $820,000 and it sold in ten days with 10 offers for $882,300!

As always, you are welcome to visit our web page for detailed statistics on the Belmont housing market. 

The information contained in this article is educational and intended for informational purposes only. It does not constitute real estate, tax or legal advice, nor does it substitute for advice specific to your situation. Always consult an appropriate professional familiar with your scenario. 
*These are all the home sales in Belmont, CA for last month. Drew & Christine Morgan did not necessarily participate in any or all of these sales.

 

 

Belmont to Lose Its Identity In Court Battle

BREAKING NEWS                                                                                             SUNDAY, APRIL 1, 2012     

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Belmont made headlines again when the City recently passed an ordinance to stop the illegal trafficking of signs on “public property”. Friday, the City of Belmont learned in a last minute injunction that the city itself is in violation of their own ordinance by placing signs displaying the name of the City, “Welcome to Belmont” in public areas.

When asked for comment one city council member who wished to remain anonymous said she was startled. “We ran this by our attorney and thought it was fine [the ordinance]”. All we were trying to do was trounce on the freedom of speech of a few individuals and unwittingly we affected a much larger group—and for that we apologize.”

Coming from a council who rarely apologizes for anything it does, this in and of itself is breaking news.

She went on to say, “One must understand that when you rush these oppressive ordinances through the pipeline mistakes can happen. We ran into a similar situation in the contract with Recology—we just did not devote enough time to read the contact and it costs the citizens of Belmont thousands of dollars. But please don’t print that. We’d rather let sleeping dogs lie”.

The implications of this are far-reaching. Belmont may be best known as the first city in the nation to pass the most restrictive anti-smoking policy and now they will be faced with being the fist city in the country that must remove its signs displaying the name “Belmont”. “We’ve come so far with this ordinance and we want to thank the Advertising Intolerance Committee for its hard work. The city has benefitted greatly by citing more than 100 REALTORS for their open house signs—money that will have to be made up elsewhere.

In an emergency closed-door session on Saturday the council hinted that a new, more restrictive ordinance will emerge that will allow Belmont to keep its name; but, “Still preserve the anti-business policies we treasure”.

[END]

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My Story. A Story About A Home in San Carlos

I visited a home in San Carlos today and the seller had this story posted for everyone to read. I found it moving...

My Story

Although I was “born” in 1969, my story really began 13 years before. One spring day, a young couple looking for the perfect spot to raise a family, came down the lane. They had seen many, many properties but the woman knew the minute she spotted the majestic oak that this was THE ONE.

“Don’t you want to see the house first?” asked the man, referring to the little, two-bedroom house that was, at the time, the only one on the property.

“Yes,” replied the woman as she plopped down under the oak, “But it won’t matter. I already know this is our home.”

And so it was. Soon they welcomed their first child, then another, and so on. The little house was bursting at the seams. But there was room to grow- underneath the grand oak tree. I swelled with pride when my family moved in. the eldest, on the verge of becoming a young woman, loved her private balcony and hiding away in the library that held shelf-after-shelf of her favorite books. The little red-headed boy chose the largest room because it looked out onto the huge yard he loved to explore, particularly his favorite plum trees that he knew would provide years of climbing and juicy plums ideal for neighborhood battles. The littlest, a brown-haired girl, was tucked away in the smallest bedroom, bedecked with a brand-new canopy bed that made her feel cozy and provided the perfect cave for her collection of much loved stuffed animals.

So, our life together began. As the years went on, I was filled to the brim with love, laughter, song, tears, and heartache – all the joys and sorrows that life brings. I embraced my family and loved watching them grow and change. But, one by one, the children began to leave. I was sad, but I knew that no matter what house the moved to, I was always Home. I was the place that held the Christmas tree; I was the kitchen that cooked Thanksgiving turkey; I was the pool that hosted birthday parties. But as time passed, their visits were less often, the couple stayed with me, but it became clear the others had, at last, found their own perfect homes in which to build new memories.

And one day the couple looked at each other across their now - empty table. Their bodies were bent and their faces weathered. They new, and so did i.

“It’s time.”

Time to pass me on to another family, to build their own lifetime of memories, underneath the branches of my sheltering oak tree.

 

How Property Boundary Line Disputes Arrise

Assessing property boundaries is both an art and a science.

Disputes regarding property boundaries can arise for a number of reasons. Properties can be difficult to survey. Rough terrain and human error may lead to miscalculation. Older boundaries may have been determined with poor instrumentation.

One common boundary-related problem occurs when a gap of land — known in the surveying industry as a hiatus — is found between properties and does not belong to either party. These gaps, as well as boundary overlaps, tend to occur when properties are resurveyed and discrepancies are found in either a subsequent survey (the junior survey) or with the original survey (the senior survey).

The federal courts have settled many property boundary disputes. Over time, established procedures have evolved for resolving these discrepancies.

In U.S. v. Weyerhaeuser Company (1967), the 9th Circuit Court decided that discrepancies in surveys did not matter and that the original monuments — the permanently placed survey markers in the ground — marked the boundary, and any resulting hiatus was deemed public land. The courts have consistently determined that hiatus land shall remain in the public domain.

Cases regarding overlaps are more complicated. Courts have consistently said that when two officially accepted surveys conflict, and the result is an overlap, the survey that is senior in time takes precedent.

When it comes to court cases involving property rights, the concept of "first in time, first in right" is firmly established. In Wirth v. Branson (1878), the U.S. Supreme Court made it clear that once a property had been patented — title of ownership confirmed by the government — the government cannot convey that land to any second party.

The information contained in this article is educational and intended for informational purposes only. It does not constitute real estate, tax or legal advice, nor does it substitute for advice specific to your situation. Always consult an appropriate professional familiar with your scenario.

 

Best Bay Area Values - Shiny Penny Tour 2.8.2012

There was some debate today amongst my collegues as to which home we saw was the shiny penny on tour.

I liked the home at 221 Grand Street in Redwood City listed for $899,000 and several others also liked the home on 262 East Oakwood Boulevard in Redwood City listed for $799,000.

I preferred the Grand Street property for the superior location and the stunning craftsman character and attention to detail.

 

221 GRAND STREET, Redwood City 94062				Status:	Active	MLS #:	81204479
Class:	Single Family Residential			Orig Price:	$899,000	List:	02/06/2012
Area:	High School Acres Etc. (334)			List Price:	$899,000	Original:	02/06/2012
County:	SAN MATEO COUNTY					Sale:
Complex:						COE:
Beds:	3	Baths:	2 (2/0)			Expires:
Approx SqFt:	1,680 (Assessor)					Off Mrkt:
Approx Lot:	6,500 Sqft (Assessor)					DOM:	1
Built/Age:	1922(Assessor)/90					Green doc:	No
Parcel #:	052-242-240					Walk Score:	65 Listed by Alain Pinel Realtors

This home on East Oakwood [who’s circular street used to be a dog race course BTW] is a very nice home handsomely updated with an awesome yard too (offers a week from today).

 

 

262 EAST OAKWOOD BOULEVARD, Redwood City 94061				Status:	Active	MLS #:	81204449
Class:	Single Family Residential			Orig Price:	$799,000	List:	02/06/2012
Area:	Horgan Ranch Etc. (332)			List Price:	$799,000	Original:	02/06/2012
County:	SAN MATEO COUNTY					Sale:
Complex:						COE:
Beds:	3	Baths:	1 (1/0)			Expires:	06/30/2012
Approx SqFt:	1,336 (Seller)					Off Mrkt:
Approx Lot:	10,146 Sqft (Assessor)					DOM:	1
Built/Age:	1940(Assessor)/72					Green doc:	No
Parcel #:	059-132-020					Walk Score:	69
						Trnsf Tx:	No
						Cur Rent: Listed by Alain Pinel Realtors

 

Call us if you are interested in either of these homes as neither will probably last very long.

Drew & Christine Morgan, RELATORS with RE/MAX Star-Carlmont

1940 Ralston Avenue Belmont, CA 94002 (650) 508-1441 info@morganhomes.com

 

 

 

 

PROFILE of a BELMONT HOME SALE

What was the profile of the average home that sold in Belmont last year?

• The average home which sold had three bedrooms, two baths was 1,925 square feet in size and was located on a 6,430 square foot lot

• It sold for $879,450 in 44 days

BELMONT STATISTICS for 2011

 

• There were 186 single family home sales in 2011

• The average time a home was on the market before the seller received an offer was 44 days

• 32% of Belmont homes sold over the asking price in just 19 days

• 11% sold at the seller’s asking price in 29 days

• 57% sold under the asking price and took 60 days to do so

• 103% was the percent of the asking price the sellers received who sold their homes in 19 days

• 96% was the percent of asking the sellers whose homes were overpriced received in 60 days

It becomes abundantly clear that the last thing any seller should want to do is overprice their home, yet more than half of the homes sold in 2011 were overpriced. These sellers also had to lower their asking price by on average $61,000 and then received 7% less for their homes than ones priced correctly.

If you are considering selling your home this year, choosing a local agent who knows the values in Belmont and then of course listening to what they tell you will go a long way towards putting more money in your pocket.

The information contained in this article is educational and intended for informational purposes only. It does not constitute real estate, tax or legal advice, nor does it substitute for advice specific to your situation. Always consult an appropriate professional familiar with your scenario.

 

 

Best Bay Area Home Deals --Shiny Penny Tour 1.24.2012

Undeniably the best deal today was this home on Hamlet in San Mateo offered by Patriott Properties. It's a bank owned home and they are ready to deal. Listed for only $439,900 we suspect it won't last until the weekend.

On a side note, the Best of Tour home from our Shiny Penny Tour last week that is hearing offers tomorrow, is up to 27 interested parties. We'll post the actual sale price as soon as we find out--stay tuned...

1787 HAMLET STREET, San Mateo 94403				Status:	Active	MLS #:	81202667
Class:	Single Family Residential			Orig Price:	$439,900	List:	01/23/2012
Area:	Parkside (413)			List Price:	$439,900	Original:	01/23/2012
County:	SAN MATEO COUNTY					Sale:
Complex:						COE:
Beds:	3	Baths:	1 (1/0)			Expires:	04/23/2012
Approx SqFt:	1,030 (Assessor)					Off Mrkt:
Approx Lot:	5,150 Sqft (Assessor)					DOM:	1
Built/Age:	1954(Assessor)/58					Green doc:	No
Parcel #:	035-364-160
Zone:	R106	Units/Bldgs:	--/--			Trnsf Tx:
Unincorp:	No	City Limits:				Cur Rent:

The information contained in this article is educational and intended for informational purposes only. It does not constitute real estate, tax or legal advice, nor does it substitute for advice specific to your situation. Always consult an appropriate professional familiar with your scenario. 

 

Shiny Penny Tour Day - Our Best Homes of the Week

Tuesday’s Best of Tour

Today’s best of tour goes to two homes this week. The first one is 899 Crestview in San Carlos. This home is an amazing deal and perhaps that’s why it went pending before we even returned from tour today. Good deals don’t last that’s for sure.

 

 

 

This second home they seller is waiting until January 25^th for offers. It’s an updated three bedroom one bath home in Belmont at 913 Ruth Avenue. It resides on a 5,500 square foot lot and enyoys 1,260 square feet of living space. Priced at $559,000 it’s a steal for a west-side Belmont home.

 

 

If you are interested in these “Best of Tour” deals or any other home for that matter, contact us and we’ll guide you through the process of getting the home you want.

 

 

 

The information contained in this article is educational and intended for informational purposes only. It does not constitute real estate, tax or legal advice, nor does it substitute for advice specific to your situation. Always consult an appropriate professional familiar with your scenario.

Listings courtesy Alain Pinel Realtors

 

 

Time To Look Back At The Peninsula Housing Market for 2011

Time to look back at the Peninsula housing market in 2011.

Being in the trenches we know well ahead of the reported statistics how the housing market performed but it’s always interesting to look back and see what the numbers bear.

These two charts below represent the median home price for the past three years in Belmont and Palo Alto. We chose Palo Alto because that city enjoys leaded edge price stability and recovery. Belmont is less insulated from market volatility and is probably more typical of the average Peninsula city housing trend.

[Click on the images for a full-size graph]

As denoted by the red trend lines in both of these graphs, Peninsula housing prices, while suffering from typical seasonal fluctuations, are overall showing signs of a steady but slow increase in the median home price.

If this doesn’t seem to jive with the media reports of continual home price erosion it’s probably because the reports you’re hearing are for cities such as the one in our third chart below which represents a continual decline in home values in highly affected areas to our the north such as South San Francisco, Daly City and Colma.

This story is part of our monthly newsletter. If you would like receive our newsletter you may email us at Newsletter@morganhomes.com and you’ll be added to the list. Note—we never share our email list with anyone for any reason without your express permission.

The information contained in this article is educational and intended for informational purposes only. It does not constitute real estate, tax or legal advice, nor does it substitute for advice specific to your situation. Always consult an appropriate professional familiar with your scenario.

 

 

 

 

Home Affordability Rises as Interest Rates and Home Values Decline

There may be a beneficial convergence for buyers in the housing sector as declining interest rates and home values are occurring at the same time resulting in a boost to the housing affordability index.

The percentage of home buyers who could afford to purchase a median-priced, existing single-family home in California rose to 52 percent in the third quarter of 2011, up from 51 percent in second-quarter 2011 and was up from 46 percent in the third quarter of 2010.[i]

Regionally, housing affordability rose in most counties in the San Francisco Bay Area but was down in Los Angeles County and Fresno County.  At 77 percent, San Bernardino County was the most affordable, while San Mateo County was the least affordable, with only 25 percent of households able to purchase the county’s median-priced home.[ii]

But that could be changing—not that San Mateo County will ever be more affordable than most of the counties in the state (due to the high home values)—but with the interest rates hovering around their lowest point in recorded history, and home values reverting to levels not seen since 2002, it may be the perfect accelerant to fuel a recovery.

In Palo Alto for example, well known for its resiliency during housing downturns, more homes sold last month in November of 2011 for over asking than did for less. That’s a stunning example of market elasticity. Also interesting on an anecdotal note is that when Palo Alto values rise they carry surrounding communities along like a surging tide.

It’s possible that home values decline further. And it’s possible that one might time the market perfectly at the trough but the longer buyers wait to enter the market at this phase of the recovery, the more risk they take that they will miss the perfect storm and either rates will rise, home values, or both.

Note that while home values have reverted to 2002 levels[iii], interest rates were more than two points higher in 2002 than they are today making the same price home in 2002 far less affordable than today.

Data current to November of 2011.

Click on the image for a full sized graph.

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[i] C.A.R.’s Traditional Housing Affordability Index (HAI).

[ii] C.A.R. releases Q3 Housing Affordability Index, November 10, 2011

[iii] Case-Shiller, QTR III, 2011 Bay Area MSA

The information contained in this article is educational and intended for informational purposes only. It does not constitute real estate, tax or legal advice, nor does it substitute for advice specific to your situation. Always consult an appropriate professional familiar with your scenario. 

Belmont Homes Sales Show Continued Improvement

Welcome to the new norm. As you know if you have been following us for any length of time we provide a detailed analysis of the local housing market and Belmont’s housing market in particular. We’ve been gathering data since 1998 and have used it to contrast and compare varying market cycles over the years. However, comparing the reality of the new housing market to a market that was artificially inflated with substandard lending practices will provide for endless disappointment if a new base-line is not established.

Today’s market seems to reflect the new reality of stricter lending practices leading to fewer sales and more cautious buyers. This environment will undoubtedly continue for some time until the devastation in the housing industry which wiped out so many people’s equity is a distant memory. Just as the Consumer Confidence index was set at 100% in 1985 because it was neither a peak nor trough in the business cycle, we submit that at least for Belmont, after years of price and sales declines, that the more stable 2011 might become the new baseline by which future years are compared.

(click on the image to enlarge) *Data from the San Mateo Board of REALTORS MLS system.

Looking at the numbers…

Belmont homes sales for October 2011 were strong compared with last year.

BELMONT HOME SALES

Although two fewer homes traded hands this year in Belmont compared with last October, there are signs that the housing market may be stabilizing, as we anticipated.

MEDIAN PRICE

The median price, while falling from last October’s $864,200 to $806,000 this year, does not reflect the size homes which sold last October were 13.5 percent larger, with a median price drop of only 7.2%. This helps us better understand that the median price while reported lower is probably higher than in October of last year.

DOM (days on market)

In October of 2011 it took on average 22 days to sell a home while last year that number was 46, more than double.

PRICE REDUCTIONS

Forty-six percent of Belmont homes selling in October of 2010 had price reductions of on average $92,000 compared with this October where the seller had to lower their price by on average only $58,000 to attract a buyer.

SELLING vs. ASKING PRICE

This October 27% of the homes sold over the seller’s asking price by on average $64,000. Last October the 23% of homes sold for over the asking price receiving on average only $29,000 more.

In 2010 nearly 70% of the homes which sold went for less—by on average $33,000. This year 63% of the homes sold for on average $32,000 less.

INVENTORY

The number of homes available for sale impacts the price a seller might achieve based on the familiar principle of supply vs. demand. But an increase in supply can be the result of several factors which may in turn be the result of very different market forces. For example, if supply is increasing because homes are not selling, or home owners are out of work, or upside down in their mortgage, that negative environment might mean that buyers will also be concerned about their future and demand will drop.

But if supply increases because sellers are taking advantage of favorable move-up market conditions or perhaps they view the current strength of the local market as being in their favor, and demand remains constant, it could be an indication on a strengthening market.

There are currently 57 single family homes on the market in Belmont as compared with last October when there were 63 during the same period.  In Belmont, if we look at peak housing markets prior to the housing market collapse in 2007, we find that in October the typical inventory levels hovered around 35-40 homes for sale. Yet in periods of uncertainty—such as the October after September 11^th and the following year which was a landmark presidential election year, inventory level rose to 93 homes for sale in 2001 and 79 in 2002.

Does the market seem stronger than last year? Yes. Are seller’s lowering their expectations (asking price) to accommodate the reality of the new market conditions, yes. Hey interest rates don’t hurt either. Buyers are slowly dipping their toes into the icy waters of real estate as rates plummet and Bay Area job cuts seem to have waned.

We’re seeing more sellers and buyers out later in the year than ever before and we predict next spring will bring many new buyers to the purchase table along with many new homes to choose from.

All the best,

MorganHomes.com

The information contained in this article is educational and intended for informational purposes only. It does not constitute real estate, tax or legal advice, nor does it substitute for advice specific to your situation. Always consult an appropriate professional familiar with your scenario. 

Belmont Home Values And Sales for August 2011

Home sales in Belmont for the month of August posted some less than impressive statistics, indicating that values declined year-over-year as well as sales.

(Click on the image for a full sized graph)

MEDIAN HOME PRICE:

The median home price in Belmont dropped 2.9% over August of 2010 and the size home which you could buy in August of this year was 2.8% larger leading one to conclude that the prices actually dropped more than reported.

SALES:

Belmont home sales were down as well from 20 sales last August to 17 this year.

DOM

The time it took to sell a home was up from 44 days to 56.

PRICE REDUCTIONS:

This August eight of the 17 home sellers lowered their initial asking price by on average $69,000 and 12 sellers accepted $43,000 less for their home than they were asking. Two homes sold at the seller’s asking price and three homes sold for over asking by on average $29,000.

Last August eight home sellers lowered their asking price by on average $84,000 and when all was said and done 12 homes sold for $27,000 under the seller’s asking price, four homes sold at asking and three homes sold for on average $15,000 over what they seller had asked for their home.

We expect this pattern of monthly roller coaster statistics—ups and downs—to continue as no doubt we will continue to see Belmont home prices and sales bouncing along the bottom for some time to come.

Look for today’s announcement of all time low interest rates to spur some fall home sale activity. And if you haven’t refinanced, now appears to be a historically perfect time.

*The information contained in this article is educational and intended for informational purposes only. It does not constitute real estate, tax or legal advice, nor does it substitute for advice specific to your situation. Always consult an appropriate professional familiar with your scenario. 

 

3514 Winway Circle, San Mateo CA 94002 JUST LISTED!

With so many mash-up companies grabbing the attention of buyers searching for homes we thought we'd post our own listing since as the agents for the sellers we are actually familiar with the home and can answer your questions. 

 

Just listed and open Sunday, September 25th from 2:00-4:00

Belmont Greek Festival - Free Tickets Just for Asking

It’s that time of the year again for the Greek Festival in Belmont.

Each Labor Day weekend the Greek Orthodox Church hosts its annual Greek Festival at the Church of the Holy Cross at the corner of Ralston Avenue and Alameda de las Pulgas. This year, the Greek Festival in Belmont will be held September 3^th-5^th 2011- Saturday, Sunday from 12:00 PM to 10:00 PM and Monday noon-8:00 PM . If you love to try great food and spirits you’ll be in heaven. The Greek Festival never disappoints when it comes to entertainment for the whole family.

As a supporter of the Greek Festival, we have complimentary tickets for you and your family. Simply use this form to request your tickets and we’ll get them to you A.S.A.P.

 

Here’s some more information on the event from their web site…

Find the meaning of kefi (joy) in this three-day true Greek extravaganza. The Belmont Greek Festival will feature delicious Greek meals and desserts, nonstop music and dancing, exciting exhibition folk dancing, choral folk singing, a captivating mythology play, a fun children’s amusement area, and children’s entertainer Andy Z.

Up to 20,000 people are expected to attend, festival organizers said. All guests will receive a special 40th Anniversary commemorative program book containing articles about Greek culture, recipes, Greek language phrases, information about the festival’s history and photos from past festivals.

“Greeks are famous for their hospitality,” said Festival Co-Chair Gary Brenner. “Our Belmont festival was the first Greek festival in Northern California, and we’re so proud to welcome guests of all ages to our 40th celebration weekend.

“It all starts with lots of fantastic, mouth-watering food and drink,” Brenner continued, “and it keeps on going with the fun and excitement of our dancing, music and theater. Before you know it, you’ll be shouting, ‘Opa!’ just like the Greeks.”

Some of the favorite festival menu items will include souvlakia (Greek shish-kebab), barbecued lamb chops (with special Greek seasonings), spanakopita (spinach and cheese stuffed inside layers of filo pastry) and dolmades (grape leaves wrapped around ground beef and rice). Not forgetting the best Greek salad west of Athens, and roast lamb – the festival will feature 10 spit-roasted whole lambs turned for hours by hand before visitors’ eyes!

There will also be traditional homemade Greek pastries such as loukoumades (doughnut holes covered with honey), baklava (layers of nuts and filo pastry soaked in honey), kourambiedes (crescent-shaped butter cookies covered with powdered sugar) and galactobouriko (filo pastry filled with custard and covered with syrup).

Visit the taverna to sample Greek libations such as ouzo (anise-flavored aperitif), retsina wine and Metaxa brandy, and enjoy special wine tastings featuring Greek and American labels. Draft microbrewery beer and bottled Greek beer will also be offered to complement your meal, or just enjoy a glass sitting on the plaka (central plaza) while watching fellow visitors dance.

Cooking demonstrations will be offered daily – learn the secrets of Greek cooking and bring the benefits of a Mediterranean diet home!

Visitors also will enjoy continuous music from a live Greek band so they can dance the traditional kalamatiano, tsamiko, zeimbekiko and other Greek dances. The amazing “Sons of Ulysses” will dazzle the audience by lifting tables and chairs with nothing but their teeth!

In addition, several award-winning folk dance groups will perform throughout the weekend in their colorful, hand-made costumes. In an outdoor amphitheater reminiscent of the ancient theaters of Greece, children and adults alike will enjoy a special drama production featuring the heroes and villains of Greek mythology. The popular Festival Singers and Folk Ensemble will also perform Greek folk songs in the amphitheater.

Look for the Fun Zone children’s area in the shadow of the windmill, boasting games, rides, bouncy castles, crafts and more, just for young people. Don’t miss nationally-known children’s favorite Andy Z, a local singer-songwriter-guitarist who brings his award-winning show to the amphitheater on Saturday and Monday.

Tours of the award-winning Byzantine-style church, including the recently-installed mosaic iconography, will be given throughout the weekend, and the Holy Cross Church Liturgical Choir will sing during the church tour on Sunday at 2:00 PM.

Speak Greek? Visit the Greek Language School’s cultural booth, malista (yes)! Other festival highlights will include art, clothing, jewelry and gift boutiques, as well as religious icons and a bookstore.

The Church of the Holy Cross supports many charitable groups throughout San Mateo County, and each year, the church donates a portion of the festival proceeds to several local charities. Previous recipients of festival donations have included Samaritan House, Interfaith Network for Community Help (INCH), Children’s Advocacy Council, local schools and churches and the Belmont mayor’s choice of charity. In addition, Holy Cross Church sponsors several children from the Children’s Receiving Home of San Mateo County as special guests of the festival.

The hours of the Belmont Greek Festival are Saturday, September 4, and Sunday, September 5, from Noon to 10 PM, and on Monday, September 6, from Noon to 8 PM. The Fun Zone for children closes at 7:00 PM all three days. The Agora (our "White Elephant" room) closes at 6:00 PM all three days.

Admission is $5 for adults and $2.50 for seniors and youth ages 13-17. Children 12 and under are admitted free, accompanied by a parent or guardian.

For more information, explore their website further, or call (650) 591-4447. Yassou!

Belmont Home Values Bounce Along the Bottom - July 2011

July sales statistics are in for Belmont and the numbers continue to bounce along the bottom giving rise to more confusion as to where Belmont’s housing market is going up or down. When it’s difficult to determine if you are in a Buyer or a seller’s market you are probably in neither—like a “neap tide” of appreciation.

The reason it’s not clear by looking at the numbers is each month the size of homes which sell changes the median price more than any real monthly change in value. In order to get an accurate assessment of Belmont’s housing market trend we turn to longer trends—comparing the current quarter to the previous one or the same quarter a year before.

(click on the speadsheet for a larger view)

MEDIAN PRICE

The median price in Belmont rose from $846,000 last month to $924,800 or 9.3%. The median price also rose over last July by 6.3%.

The size homes which sold this July were 7.9% larger but only cost buyers 6.3% more. Part of the discrepancy can be associated with the inability to separate land from the building.

If we look at the 145 square foot difference in the size of homes sold in the two periods, and use the median price per square foot of the larger homes, it could account for up to $70,000 in price differential. All this means is an argument can be made that home values actually decreased $15,000 or 1.6% year over year.

SALES

Sales dropped considerably this July. Historically July homes sales for Belmont have hovered around 20-25 units. Last July there were 20 sales and this year there were only 14, underscoring the trepidation among homebuyers.

QUATRELY COMPARISON

The quarterly statistics for Belmont reveal a pronounced drop in Belmont home sales activity. Comparing Belmont home sales from the second quarter or 2010 to the same quarter in 2011 we find sales (unit sold) dropped 36%, while the number of new listings dropped 22%. Clearly there were fewer homes available to sell and to some degree that impacts sales, however there’s still a disparity which cannot be ignored.

The one Belmont home sale statistic which provides a glimmer of hope for a positive trend is the median price, which rose 1% year-over year. Having fewer homes to choose from can lead buyer’s to ultimately pay more to get the home they want. Realizing that the margin of error is great than the 1% increase, it's safe to say that Belmont home values essentially remained unchanged year over year in the month of July.

With the economic conditions fostering reservations in the mind of home buyers, we anticipate mid-Peninsula homes statistics to continue to flat-line for a considerable time to come.

The information contained in this article is educational and intended for informational purposes only. It does not constitute real estate, tax or legal advice, nor does it substitute for advice specific to your situation. Always consult an appropriate professional familiar with your scenario. 

 

Shh...My Home's for Sale

If you’ve ever seen a moving van in your neighborhood but never saw a for sale sign you might just have experienced a “pocket listing”.

What is a pocket listing?

In short a pocket listing is a home that was not release to the public, but nevertheless was for sale.

The reasons that a seller would choose not to list their home on the open market—and not enter their home into the MLS (Multiple Listing Service) with a REALTOR^® —are varied. Some sellers do not want strangers traipsing through their home. We bought our home in the Hallmark area of Belmont in just such a fashion. The seller of our home was interested in moving, but not interested in having anyone he did not know in his home due to his vast collection of Civil War memorabilia—some including one of General Sherman’s desks in the living room were quite valuable. Lucky for him we had a buyer and he was spared the discomfort of hiding all of his valuables and disrupting his life.

In other cases it might be a lack of clear motivation that keeps a seller from committing to the open market. In instances like this agents might take a listing with the seller’s caveat that “If you can find a buyer for me great, I’ll sell’ otherwise I might just stay put”; it’s a form of testing the waters if you will.

Clearly marketing a home in the MLS to thousands of potential buyers offers the best opportunity to reach as large an audience as possible. Will it always net the seller the highest price? Perhaps; there’s no definitive study to prove otherwise. That said we have seen cases where the right buyer came along and paid a handsome sum to the seller in order to secure a particular home and avoid the risk of losing out to another buyer in a multiple bid situation.

How often do “pocket listings” occur?

The answer is probably more than you would imagine. In high-end marketplaces where the seller might be a celebrity, or where the seller feels for security reasons they’d rather sell off market it occurs quite frequently. For example, in Atherton over 20% of all homes sold last year never hit the open market.

How does one find out about these secret listings?

Your best chance at learning about pocket listing is through your REALTOR^®. There are several sites that only an agent can access where they discretely share their most treasured listings. Unless as a buyer you have been vetted by your agent and are well qualified you stand virtually no chance of viewing one of these prize properties—that would defeat the point of the seller’s confidentiality.

We would be remiss if we did not mention that this is always done with full disclosure and at the seller’s request. Unless expressly requested by the seller, MLS rules state that all listings must be input into the Multiple Listing Service within 48 hours or the agent faces a fine.

Next time you see new neighbors and wonder where the last ones went, you might inquire and find out they bought another pocket listing in your neighborhood.

Drew and Christine Morgan are REALTORS® in Belmont, CA employed by RE/MAX Star-Carlmont.

MorganHomes.com

            (650) 508-1441      

The information contained in this feature is educational and intended for informational purposes only. It does not constitute real estate, tax or legal advice, nor does it substitute for advice specific to your situation. Always consult an appropriate professional familiar with your scenario.

 

 

Home Prices Head Up in Belmont - Belmont Home Sales - June 2011

Belmont homes sales in June 2011 appear to be holding steady, while home values may be climbing.

We’ve said it before but it’s hard to compare June of 2010 to June 2011 since June of 2010 was the last month of home closings that qualified for the $8,000 tax stimulus. Looking at last year’s home sales for the month of May and June when the program was phasing out it’s easy to see that the stimulus had an effect on the number of homes selling.

This June Belmont had 15 home sales—the same as last month, but down considerably from last June’s 25.

The time it took to sell a home dropped this June from 46 says to 36 and while last year only 48% of the homes sold for less than the seller’s asking price, this June 60% sold for less but with the seller receiving 99.25% of the asking price compared to with 98.91% of their asking price in June of 2010.

The months of inventory—or the time it would take to sell all of the remaining homes in Belmont at the current rate of sales—dropped from 3.86 in June 2010 to 2.83 in this June—nationwide, less than 3 months typically indicates a seller’s market. In Belmont we tend to notice that a bullish seller’s market occurs when we fewer than 40 homes are on the market at a given time; Belmont currently has 60—last June the inventory level was 66.

Where are Belmont home values today?

That’s the million dollar question which is on the mind of many homebuyers; Will home values continue their five year slide or have we neared the bottom?

Belmont’s median home price fell from $944,694 last June to $876,525 in June 2011 which on paper looks like a 7.2% decline.

However, looking at the median size of homes which sold in the two periods, a different story emerges. In June of last year the median size home sold was 2,170 square feet in size. Compare that with this June when the median size home was only 1769 square feet. So while the median Belmont home price appears to have declined 7.2%, the square foot differential in homes is much greater. Effectively buyers bought homes 18% smaller home this June but only got a 7.8% price break over last year—losing purchasing power to the tune of 10.2%.

Another way to look at the numbers is the median size home sold for $449 per square foot in June of 2011. If we adjust for the 401 square feet difference between last June’s homes and this year’s it could explain part of the discrepancy and account for perhaps as much as $180,049—bringing the adjusted median price this June to $1,056,574, or 12% higher than last June.

We also looked at whether last year’s June stimulus program may have artificially skewed the median home price lower with qualifying homes—those under $800,000—accounting for a greater percentage of home sales as a change in the “mix” in the size/price of homes selling could artificially alter the median home price; In fact we found the opposite to be true. Last June 24% of the homes sold were under the qualifying $800,000 price threshold while this June 33% of the homes sold were under $800,000.

Any way you slice it if you delve deeper into the statistics it’s fairly apparent that conditions are improving. We expect over the next several years to see home value fluctuations due to seasonal buying and selling patterns as well as economic conditions including job growth, consumer confidence and even the media’s focus on negative reporting—but the overall trend should remain upward—three steps forward two steps back type of progress.

Disclaimer: This information is for entertainment purposes only and includes no legal, accounting or real estate advice nor is this response in tended to be specific to your situation-consult a specialist for your specific situation.

 

San Carlos Home Sales Continue Spur Optimism

We culled everything from the San Mateo County Multiple Listing Service for San Carlos home sales in the past six months with a limiting parameter of a minimum price of $998,000 as we wanted to stay away from sales with stimulated financing. 

As is apparent from the spreadsheet there are quite a few homes which have sold in the last six months for over the asking price (44%) for on average $54,000 more than seller’s asking price with a high of $187,000 and a low of $2,000 and a median selling point of $46,000 over what the seller was asking.

Not surprisingly these homes were only on the market an average of 6.4 days with the seller receiving 104% of their asking price.

Homes which were apparently priced at what they were probably worth fared less impressively with the seller receiving their asking price in 18 days on average. These homes accounted for 19% of all the homes sold.

Those homes where the seller missed the sweet spot by pricing too high did even worse as would be expected. These homes were on the market an average of 48 days and sold for on average $37,000 less than the seller’s asking price. These sellers received only 97% of their asking price with the worst case being a home which sold for $145,000 under the asking price in 131 days and the best case a home which sold for only $3,000 less in 16 days. These homes accounted for 37.5% of all the sales.

It's fairly easy to see that homes which are priced well will sell in a shorter period of time and for more. This can only happen when there is sufficient demand (as there currently is in San Carlos) and the seller doesn’t take any offers until the home has been marketed for a sufficient period of time—typically one week-ten days. The difference is staggering when you see that homes which are slightly under what the market will bear sell for on average 105% of the seller’s asking price and homes which are overpriced sell for only 97%. That seven percent difference is more than the commissions most agents charge.

If we break down the sales by days on the market we see further evidence of homes selling fast and for more when they are priced aggressively.

Homes which sold in the first two weeks of market exposure accounted for 67% of all homes sold with the sellers receiving 103% ($32,000 more) of the seller’s asking price on average.

Those homes which sold anywhere from 15-21 days on the market accounted for less than 1% of all homes sold. These sellers received on average $14,000 less than their asking price (97%).

Homes which were sold after 21 days on the market accounted for about 27% of all homes sold with the seller’s receiving on average $39,000 less (97%) of their asking price.

Based on these statistics we can rather safely conclude that the best strategy to price a San Carlos home is to price it aggressively and obtain a sale in the first two weeks. This is backed by our empirical evidence of being in the trenches and seeing buyers vie for a home with fervor.

Ultimately, a home will sell for what the market will bear. We control the marketing, not the market. Our goal is to price a home so that the seller will receive the most money from the sale.

Throughout our years of successful transactions we have been focused on the three important steps to achieving this goal—Preparation, Pricing and Promotion—The Keys to a Successful Sale.^sm

 

The information contained in this article is educational and 
intended for informational purposes only. It does not constitute real 
estate, tax or legal advice, nor does it substitute for advice specific 
to your situation. Always consult an appropriate professional 
familiar with your scenario. 

 

The Pitfalls of Over Pricing A Home

Why is that home still on the market?

That’s a question many people ask as they drive by the same for sale sign in their neighborhood week after week and sometimes month after month. Why do some homes fly off of the shelf and others languish for months?

Whether or not a particular home sells quickly or not has often little to do with the market and more to do with the presentation of the home—including the pricing.

In today’s tech savvy real estate world, home buyers have nearly unfettered access to listing information. With all of the tools available it’s hard for buyers to miss out on seeing a home and equally difficult for buyers to not have a good idea what a home is worth.

The first issue for homes which languish on the market is often that the promotion is at times lackadaisical. A newly listed home without photos is often overlooked by many buyers.

Knowing how to promote and price a home are key ingredients in selling a home quickly.

But why is selling a home quickly important? First and foremost it’s about price. Most sellers want to get the most amount of money they can for their home. Statistics demonstrate that selling a home in the first several weeks will accomplish that goal.

Looking at all the single family home sales in Belmont for 2010*, homes that sold in the first 14 days—an adequate time to market a home to an eager audience—accounted for 36% of the total sales. These homes on average sold for $10,000 over the seller’s asking price—often with multiple offers.

Homes which sold between 14 and 21 days on the market accounted for only 9% of the homes sold in 2010 and they sold for on average $20,000 less than what the sellers were asking.

Homes which languished on the market after 21 days accounted for a whopping 55% of the total homes sold and the sellers received on average $90,000 less than their initial asking price while averaging a painful 88 days on the market.

These numbers are actually very understandable. When a home is first on the market a buyer who may be interested in the property cannot affix an absolute value to the home. If there are multiple offers from multiple buyers the price is often bid above the asking price and the winning bidder is usually the highest bidder and thus has paid more for the home than any other willing and able buyer on that particular day.

Once a home is on the market for several weeks, buyers still might not know exactly what the home’s value is but they know it’s not what the seller is asking or the home would have sold. And that is where the damage begins. Time will do more than anything to hurt the sale of a home. After weeks of marketing buyers assume there must be a reason why nobody has selected that home and they invariably infer that there is something wrong with the home itself.

Counteracting this misimpression is difficult since your agent can’t proclaim “there’s nothing wrong with the house except the price” since most surely there is always something wrong with every home.

Agents Don’t Create Value.

It’s the listing agent's job to inform the seller of comparable values in the area by reporting on what homes have been selling for and what their competition is but agents do not create value, although they can add value. A good agent will typically give the seller a range at which point they can expect to attract a reasonable number of willing and able buyers in a reasonable amount of time.

This is why it’s difficult to under price a home and easy to miss the mark by pricing too high. A home underpriced and allowed sufficient marketing time can and almost always will be bid up and often above what might be considered fair market value at the time. While an overpriced home will most surely garner less than what it would have had it been initially priced in the sweet spot.

If you’ve missed this spot it’s not too late. Making a price reduction quickly can thwart the dreaded doomed house syndrome tip the scales your way and bring a fresh batch of buyers to the bargaining table.

Drew and Christine Morgan are REALTORS® in Belmont, CA employed by RE/MAX Star-Carlmont.

MorganHomes.com

(650) 508-1441      

The information contained in this feature is educational and intended for informational purposes only. It does not constitute real estate, tax or legal advice, nor does it substitute for advice specific to your situation. Always consult an appropriate professional familiar with your scenario.

*Data derived from the San Mateo County Multiple Listing Service for single family homes which closed escrow in Belmont in 2010. Homes excluded from the analysis included homes which were not an arm’s length transaction, short sales or bank owned properties. The reason for excluding these homes is that often a bank for example, will under price a home to attract multiple offers but take weeks to ratify the offer thus increasing the days on the market and skewing the results.

 

Drew and Christine Morgan are REALTORS® in Belmont, CA employed by RE/MAX Star-Carlmont.

MorganHomes.com

            (650) 508-1441      

The information contained in this feature is educational and intended for informational purposes only. It does not constitute real estate, tax or legal advice, nor does it substitute for advice specific to your situation. Always consult an appropriate professional familiar with your scenario.

 

*Data derived from the San Mateo County Multiple Listing Service for single family homes which closed escrow in Belmont in 2010. Homes excluded from the analysis included homes which were not an arm’s length transaction, short sales or bank owned properties. The reason for excluding these homes is that often a bank for example, will under price a home to attract multiple offers but take weeks to ratify the offer thus increasing the days on the market and skewing the results.

 

If you’ve ever sold a home and been told your fist offer is usually the best offer, here’s why.

 

 

Belmont Just Became a More Safe Place to Live-Limiting Real Estate Signs

Helping to spur the real estate recovery, and at the same time tackle the city’s need for cash, we can thank the great leaders of Belmont for taking on one more urgent problem in the midst of our city’s financial crises—rampant real estate signs. "You have to hand it to Belmont for taking on such a controversial issue in the midst of the worst real estate market in our country's history. They [Belmont] are once again leading by example and ending decades of carnage caused by the deluge of real estate signs on Sundays", said a Belmont resident who wished to remain anonymous.

On March 11^th the city of Belmont adopted an update to its zoning ordinance regulating the use of temporary real estate signs during open houses.

The new ordinance will limit directional “A” frame type signs to three per open house. These signs are limited to private property and cannot be displayed in the public right of way. “Perfect”, said founding member of BADD, Belmont against Dumb Directionals. “These signs are totally out of control. They’re everywhere and they’re confusing. One will point in one direction and another right next to it might point in a completely opposite direction. How is one to know which way to go? And they are literally in plain view for hours [1-4] on Sunday! It’s distracting to say the least and more often than not an accident waiting to happen”.

 

According to folklore purportedly instigated by the indigenous Ohlone inhabitants and perpetuated by modern day Devil Canyon worshippers, many potential buyers who have innocently followed the dizzying display of open house signs into the San Juan canyon (Diablo Canyon) have never returned. “It’s a problem we’ve been dealing with for years—[real estate] agents will lead buyers down into our vast canyons with no clear signs of how to get out. This new ordinance will put a stop to that. There’s no way a buyer will be able to find an open house on our windy roads with three stupid signs. This end-run will solve our problems”. They continued, “We had considered sneaking it in with the tree ordinance but then someone mentioned a view ordinance and that’s the last thing we want on people’s minds so we stuck with or original zoning law changes”.

Citizens Rebel Against Public signs, CRAPS, founder said “It’s completely understandable why this emergency ordinance was implemented. Real Estate signs have caused an untold number of traffic related deaths in our fine city. Panicky homebuyers desperate to be the first to an open house have tunnel vision—once they see a real estate sign that’s all they can focus on. They are hell-bent-for-leather getting to an open house and they have no respect for the laws of our fine city. Believe me when I tell you, if this doesn't work we’ll look next at outlawing open houses altogether. Who needs them now anyway, that’s what virtual tours are for”.

How bad is it? The traffic cameras at Ralston and El Camino which were installed with great success, reducing an incalculable number of fatalities, are evidence that this new ordinance needed to be enacted. “We noticed that red light violations skyrocket when open house signs are in plain sight. Having real estate signs on public property can longer be tolerated. It's a public nuisance like everything else our citizens do”.

Belmont may save millions of dollars with this new law. “We were going to hold a special election but we snuck this one in and managed to avoid public scrutiny. That’s efficient government at work and will help solve our city’s financial woes”.

In addition to the many citations which will gleefully be handed out to unwitting real estate agents, the city hopes to cash in on the storage fees for each sign collected. “We haven’t established any exact dollar amount but it will be proportional to the price of the home being sold—that’s only fair—perhaps one percent will stop these agents or at least put them out of business”.

 

 

 

 

 

Belmont Just Became a More Safe Place to Live-Limiting Real Estate Signs

Helping to spur the real estate recovery, and at the same time tackle the city’s need for cash, we can thank our great leaders of Belmont for taking on one more urgent problem in the midst of our city’s financial crises—rampant real estate signs. "You have to hand it to Belmont for taking on such a controversial issue in the midst of the worst real estate market in our country's history. They [Belmont] are once again leading by example and ending decades or carnage caused by the deluge of real estate signs on Sundays", said a Belmont resident who wished to remain anonymous.

On March 11^th the city of Belmont adopted an update to its zoning ordinance regulating the use of temporary real estate signs during open houses.

The new ordinance will limit directional “A” frame type signs to three per open house. These signs are limited to private property and cannot be displayed in the public right of way. “Perfect”, said founding member of BADD, Belmont against Dumb Directionals. “These signs are totally out of control. They’re everywhere and they’re confusing. One will point in one direction and another right next to it might point in a completely opposite direction. How is one to know which way to go? And they are literally in plain view for hours [1-4] on Sunday! It’s distracting to say the least and more often than not an accident waiting to happen”.

 

According to folklore purportedly instigated by the indigenous Ohlone inhabitants and perpetuated by modern day Devil Canyon worshippers, many potential buyers who have innocently followed the dizzying display of open house signs into the San Juan canyon (Diablo Canyon) have never returned. “It’s a problem we’ve been dealing with for years—[real estate] agents will lead buyers down into our vast canyons with no clear signs of how to get out. This new ordinance will put a stop to that. There’s no way a buyer will be able to find an open house on our windy roads with three stupid signs. This end-run will solve our problems”. They continued, “We had considered sneaking it in with the tree ordinance but then someone mentioned a view ordinance and that’s the last things we want on people’s minds so we stuck with or original zoning law changes”.

Citizens Rebel Against Public signs, CRAPS, founder said “It’s completely understandable why this emergency ordinance was implemented. Real Estate signs have caused untold number of traffic related deaths in our fine city. Panicky homebuyers desperate to be the first to an open house have tunnel vision—once they see a real estate sign that’s all they can focus on. They are hell-bent-for-leather getting to an open house and they have no respect for the laws of our fine city. Believe me when I tell you, if this doesn't work we’ll look next at outlawing open houses altogether. Who needs them now anyway, that’s what virtual tours are for”.

How bad is it? The traffic cameras at Ralston and El Camino which were installed with great success, reducing an incalculable number of fatalities are evidence that this new ordinance needed to be enacted. “We noticed that red light violations skyrocket when open house signs are in plain sight. Having real estate signs on public property can longer be tolerated. Its public nuisance like everything else our citizens do”.

Belmont may save millions of dollars with this new law. “We were going to hold a special election but we snuck this one in and managed to avoid public scrutiny”. That’s efficient government at work and will help solve our city’s financial woes”. And in addition to the many citations which will gleefully be handed out to unwitting real estate agents, the city hopes to cash in on the storage fees for each sign collected. “We haven’t established any exact dollar amount but it will be proportional to the price of the home being sold—that’s only fair—perhaps one percent will stop these agents or at least put them out of business”.

 

 

 

 

 

Belmont Home Sales for May 2011

Belmont home prices slipped back a bit in the month of May 2011 while sales continued to be less than impressive.

Home sales in Belmont were down considerably from May of 2010 and for good reason—home sales last May were buoyed by the last minute deadline for the $8,000 tax credit which lifted sales across the nation. Our sales analysis for May of 2010 addressed the temporary nature of the uptick in homes sales for the month of May 2010.

SALES

Last year in May there were 34 home sales in Belmont as compared to only 15 this year. That’s one less sale than last month and two less than in February. Looking at the big picture, over the last 13 years the average home sales in Belmont has been 25 for the month of May—of course many of the last 13 years were boon years as well.

MEDIAN PRICE

The median price for a home in Belmont for May 2011 was $949,000, an increase over April of 14% and an increase over last May when the median home price was $848,500. We could stop right there and change our headline but looking a little closer we see that the mix of homes which sold in these periods varied dramatically.

Last month, and in May of last year, the median size homes which sold were smaller than homes selling in May of 2011. Part of the reason for so many smaller homes selling last May was the $800,000 purchase cap to qualify for the $8,000 tax credit. This rebate lured many first-time buyers into the market but had an incidental effect of lowering the median home price with many smaller homes selling.

The median size home that sold in Belmont in May of 2010 was 1,845 square feet and in May of 2011 it had increased to 2,157. The increase of 312 square feet represents a 17% increase in the size of homes selling in the two periods while the increase in median price represents only an 11.8%. At the going rate of $478 per square foot in 2010 that could account for $149,136 of price differential—the actual differential in the two periods was only $100,500. This could loosely be translated into a real decline in median home price of $ 48,636 or 5.1% year over year.

While the median home price may have slipped back a bit the average time it took to sell a home dropped from 25 days in May of 2010 to 17 in May 2011.

PRICE REDUCTIONS

Four sellers in May of 2010 lowered their asking price by on average $64,750 in order to attract a buyer while this May only one seller lowered their asking price by $30,000. These fewer price reductions might be attributed to sellers (and agents) pricing their home more accurately to reflect the current market conditions.

PERCENT RECEIVED

May of 2011 found sellers netting more than last year during the same period. Seller’s received 101.3% of their asking price this year as compared to sellers netting only 99.8% last May.

A correlative effect of pricing one’s home right is that offers will usually come in closer to the asking price. This May five (33%) of the home sales were under the asking price for on average $22,000, four homes sold at the asking price and six (40%) sold for on average $40,000 more.

In May of 2010 15 homes (44%) sold for on average $26,000 less than what the seller was asking, three homes sold at the asking price and 16 (47%) sold for on average $22,000 more than asking.

The peninsula market appears to be picking up some steam, though the numbers have yet to reflect what we see occurring locally.

Homes which are priced right are often snapped up within days with multiple offers while sellers (and agents) who push the pricing envelope quickly lose market enthusiasm and are more often than not relegated to months of marketing, open houses, showings and multiple price reductions before finding a buyer.

We’ve also noted that many more people are contacting us for rentals than in the past several years. This increase in demand for rental housing has created a shortage in the supply and rental units are harder to come by while rental prices are skyrocketing. And when rents rise (and the number of units unavailable to meet the demand) people look at purchasing as an alternative. We suspect that the peninsula housing market is poised for a rebound sooner than the rest of the nation but don’t expect to hear about it in the news just yet.

Increased affordability in the housing sector with lower home values and historically low interest rates makes considering buying VS renting very attractive.

Investors of rental units are simply giddy at locking in historically low interest rates for 30 years and will reap handsome rewards when inflation returns.