About San Mateo County, CA

Have you seen this new statue in downtown Burlingame? I was walking down to the convenience store to get a Diet Coke (I'm addicted), and I saw this statue in front of the former Coldwell Banker office. This office is currently vacant, so it was strange to see this statue implanted right in front of this building.

As I was taking a picture of this statue, one of the downtown Burlingame businessmen yelled at me from the building behind "Hey, what are you taking a picture of that for?"

I said, "I think it looks pretty strange in front of this building, what do you think?"

He said, "Well I do to, and so do a lot of the other business owners. If you don't mind, send your picture to City Hall with some thoughts on what you think of it."

Downtown Burlingame stirs the passions of the city's citizens. It has taken roughly ten years from beginning to an affirmative vote to get a new Safeway built. It took so long for several reasons, but mainly because of the differences of a couple of groups who feel very passionate about the appearance of downtown Burlingame.

I have a feeling that the future of this statue is going to debated in a public forum. It's never boring in downtown Burlingame!

Before the Super Bowl XLIV gets started we thought we’d take a look at what happened in Belmont in January 2010.

We’re including two spreadsheets—one for this last January and to help put in perspective, the one from last January.

Most statistics across the country point to January of 2009 as the low point for the real estate market. But what are they saying? The lowest point for sales, median price or what?

Many pundits are saying that home values hit bottom in January of 2009 and in fact in many of the hardest hit areas like Phoenix that may well hold to be true. But for areas that initially fared better, indications are that the price erosion is continuing.

January 2010

January 2009

(Clicking on either chart will deliver a larger picture.)

Looking at these two data samples, it’s easy to see that sales in Belmont are indeed up—way up. January of 2009 was simply dismal with only four sales and reflected that overall uncertainty of the future as buyers chose to sit on the sidelines and wait to see how much more prices will tumble.

SALES

This January’s sales reflect more buyers entering the market and buying homes. In January of 2009 there were 31% more listings available yet sales increased this year by 175%!

What accounted for the huge increase in homes sales? Part of it appears to be the resignation by sellers that they must take less for their homes than they had hoped for a year earlier. Note that all but five homes which sold this January not only had a price reduction but on average all received only 94% of their already reduced price.

MEDIAN PRICE

Most sellers had to lower their initial asking price by $50,000 and then accepted offers another $50,000 less than that. On a median home price of $850,000 that represents a huge disparity between what sellers (or their agents) think their home is worth, and what buyers are willing to pay.

Sales were up indeed but at deeply discounted prices. The Median home price in Belmont was $850, 000 which is about 4.7% less than January of last year. But not only can you get a home for 4.7% less than last January the home you get will be 6% larger. Another way to look at it of course is that prices have really dropped closer to 11% year-over-year.

DOM

Have the price reductions and lower asking prices helped sell homes faster? Just the opposite turns out to be true. The days it takes a seller to seller their home has almost tripled from 42 to 125.

Enjoy the game!

Data provided from the Mulitple LIsting Service.

The information contained in this blog is educational and intended for informational purposes only. It does not constitute legal, real estate or tax advice, nor does it substitute for profesional advice.

The Real Estate Report L O C A L M A R K E T T R E N D S FOR SAN MATEO COUNTY

THIS ISSUE: Investors are back in the market, and they're paying all-cash, mostly for property under $500,000. The effect of this is to freeze out first-time home-buyers who have to get a loan. Banks are still scary about providing loans. About the only loans left for first-time buyers are FHA loans. So, while the first-time buyer is working through the loan process, the investors are swooping in and buying the best property, which, after slapping a coat or paint on and, maybe, replacing the carpeting, they are putting back on the market. Sometimes, they rent out the property hoping for more appreciation down the road.

Appraisals are also affecting buyers who need a loan. Appraisals lag the market because they use past data, typically six months worth, to calculate current market value. When a market has bottomed out and begins rising, appraisals often come in under the value agreed upon by the buyer and seller. Banks are requiring buyers to come up with extra cash to make up the difference. First time buyers are having a hard time doing this, so we're seeing many more sales fall out of escrow than normal. Another thing hanging over the market is the so-called Bshadow inventory of bank-owned property that has not been put on sale. If the banks release these homes in a measured manner, the market should be able to absorb them.

Home sales were down significantly in January, falling 39% from December. Nevertheless sales were up 30.5% year-over-year. This is the fifth month in a row home sales have been higher than the year before. The decline in sales is not a result of reduced demand, rather it was produced by a lack of inventory, or should I say, a lack of desirable inventory. We expect sales to regain their momentum through the Spring because of the extended tax credit and because this is historically the prime time for home sales. From talking with other San Mateo County real estate agents, properly priced homes in the most desired neighborhoods and school districts are being sold with multiple offers: many multiple offers. Pending sales, which is a solid indicator of future sales, was up 54.7% year-over-year in January for the seventh month in a row.

Remember, the real estate market is a matter of neighborhoods and houses. No two are the same. For complete information on a particular neighborhood or property, call me at my direct line at 650 598 2800 or visit me at www.carmenmiranda.com. Email is good too at: carmen@carmenmiranda.com

Enjoy your day!

Do you need a loan to complete construction in California? I may be able to help you. I have access to private money that will loan to complete construction on a wholesale basis, as well as working directly with borrowers.

There are several reasons why you may need a loan to complete construction. First, perhaps you were funding construction out of your own savings, and have run out of funds that you want to commit to the project.

Second, the project may have become more expensive due to upgrades or unforeseen circumstances.

Third, you may have a loan, but your construction lender may have gone out of business! Ouch!

No matter what the circumstances, if this happens, you need a loan to complete construction. Here are some of the parameters that my private money source in California requires:

First, the loan amount must be between $1 million and $5 million dollars. This source for a loan to complete construction likes the high-rent districts!

Second, the maximum loan-to-value percentage is 65% of the future completed value.

Third, the maximum term is three years. However, most of the time, a loan to complete construction will be one year.

Fourth, the minimum credit score must be at least 640. The credit score used is the middle score of three credit scores supplied by the three credit bureaus.

To apply for a loan to complete construction, there are three parts of the approval process.

The first part of the approval process is qualifying the borrower. This part of the qualification process is similar to applying for a loan to finance a completed home. A loan application, income documentation, and asset documentation must be provided.

The second part of the approval process is qualifying the contractor. The contractor must provide adequate insurance and a resume of completed projects to demonstrate his ability to complete the job in a workmanlike manner.

The third part of qualifying for a loan to complete construction is providing project documentation. This documentation consists of plans, permits, a construction contract, cancelled checks and receipts for work completed, and a list of building materials.

Trying to get a loan to complete construction can be stressful! My best advice is to be organized as best you can with your documentation, starting with the first receipt you have from the beginning of the project. Organization will help minimize your stress level.

Ground breaking ceremonies will be held on Thursday, February 11, 2010 for the long-awaited Edgewood Education Center which will inspire and teach stewardship of Edgewood County Park and Natural Preserve, a wonder in our own backyard.

Located in the hills of Redwood City Edgewood County Park is frequented by hikers, trail runners, equestrians and families throughout the year. Visitors are drawn throughout San Mateo County and the San Francisco Bay Area to enjoy its spectacular spring flower display.

Learn more about the San Mateo County Parks Foundation, the group that is bringing this to reality. If you enjoy the outdoors and are interested in volunteering with a great group of like-minded people, this might be just the spot for you.