Alameda, CA

How you see it is the same as how you look at a glass --- half-full, or half-empty?

No man is an island. Yes, we get it. And even in our slice of paradise known as the wondrous island of Alameda, CA, we have our share of distressed properties.This is actual data. Analysts have different ways of looking at the same figures and extrapolating different conclusions.

So let's take a look at what it's like for 2009, as of today, November 3, 2009.

COMPARING SOLD PROPERTIES

Sold since January 1, 2009 - 362 homes

• Of which 47 were bank-owned, or 13% of total
• Of which 26 were short sales or 7 % of total
• Together, 73 were "distressed properties or 20% of total

FORECLOSURES

Sold - 47 homes

• Highest price is for a lagoon-facing property foreclosed at $738,000
• Lowest price is for a 1 bedroom/1 bath condo foreclosed at $150,000

Pending - 10 homes

• Highest price is for a large home at the newer Bayport development, currently listed at $739,900
• Lowest price is for a 2 bedrooms/1.5 bath condo listed at $262,900

Active - 7 homes

• Highest price is for a duplex (lower unit is totally gutted) on Park Street, listed at $709,900.
• Lowest price is for a 1 bedroom/1 bath condo listed at $175,000.

SHORT SALES --- if both buyers and sellers are willing to stick it out, there are some good deals to be found.

Sold - 26. Yes, folks. We do and have closed short sales.

• Highest price is for a Mediterranean style 3 BR/3 BA home that sold for $745,000
• Lowest price is for a 1 Bedroom/1 Bath 640 sq ft condo that sold for $180,000

Pending (pending, pending to subject lender approval) 25 homes.

• Highest price is for a large home in Harbor Bay, listed for $899.000
• Lowest price is for a 1 bedroom/1 bath 740 sq ft condo listed for $199,000

Active - 13 homes

• Highest price is for an overpriced then and still overpriced home on Westline Dr, listed for $918,000
• Lowest price is for a 1 bedroom/1 bath 701 sq ft condo listed for $210,000

WHERE IS ALAMEDA REAL ESTATE MARKET HEADED?

So....where is the Alameda market headed? Take a look at this post: Alameda CA; Where is the market headed to get a picture of what it was like for the last two years starting in October 2007-October 2009.

For the statisticians and other folks who prefer graphs to see what's going on a specific market, here's a snapshot of what it looks like in San Ramon, comparing the market the past two years, starting in October 2007 - October 2009.

People will see different things and interpret this information in different ways --- I guess it depends on what you want to see or what you hope will happen. Some market observers have said the bottom was four months ago. Some say the worst is yet to come (when?).

in the meantime, here's what the data is SHOWING us.

MONTHS SUPPLY OF INVENTORY I like starting with the months supply of inventory. When there are more buyers than there are sellers, it means that it's a seller's market. The higher the months inventory, the more it becomes a seller's market. Traditonally, if the the months inventory is more than six months, it's a buyer's market, and vice versa. This shows quite drop, and seems to be on a continuous downtrend.

UNDER CONTRACT Homes under contract peaked in September 2009 (height of selling season?) and dropped in October.

MEDIAN PRICE it appears the median price is recovering because the median price is only 8% below where it was two years ago. The lowest median prices were posted in January 2009, and made a comeback the next month!

SUPPLY AND DEMAND Here'sgood way to correlate number of properties sold (demand) with number of properties for sale (supply). Supply is on the downward trend, or 38% less than where it was this time in 2007. While demand increased by 55%.

So...what are these graphs telling you?

My first time home buyers are whooping it up. Why not? The popular first time home buyer tax credit that was set to expire end of November 2009 may be extended through end of June 2010.

I have buyers who have been looking for months but are getting outbid so many times, or are running out of time waiting for the short sale approval/acceptance of their offers.

Even better, it isn't just first time buyers who have reason to celebrate. A new tax credit was introduced to aid repeat buyers. I wonder if this will apply both for buyers who want to move up as well as buyers who want to downsize.

Although the complete details aren't available yet, here are the key provisions.

First time home buyer tax credit

• Buyers must be in contract by April 30, 2010
• Buyers have 60 days from that day to close escrow to qualify for the tax credit
• Tax credit is $8,000 or UP TO 10% of purchase price

Repeat buyers tax credit

• Defined as homeowners who have lived in their residence for five years
• Tax credit is $6,500

But wait, there's more! The levels for the home buyers were increased! Good news, indeed, for at least one of my buyers who was making more money than the previous qualifying level. So now, there's a chance that he will qualify for the tax credit after all!

• Individuals earning up to $125,000, up from $75,000 for individuals under the current law
• Couples earning up to $250,000, up from $150,000 under the current law'

More tax credits.

Additionally, there are other tax credits that the homeowners can explore. Although folks may argue that these tax credits are costing us....think of another way to look at these credits. They will encourage folks to BUY! And when they buy more goods and services, they (and we) do our share to stimulate the economy.

• federal tax credits for energy efficiency. Time to replace that old furnace? Want to get double pane windows? Need to get better insulation? Want to replace that leaky roof? Old water heater on its last legs? There's an energy-efficient solution to meet your requirements.
• ENERGY (Energy Efficiency & Renewable Energy) STAR appliances that may apply to central air conditions, washers, dishwashers, freezers, refrigerators, and more. More on this as things develop.

Have fun shopping!

Today, while reading through some questions posted online, I came across this one:

"What is the status of the CA Foreclosure Moratorium that went into effect in June 2009? Are lenders still required to try a loan mod with the borrower for 90 days?"

I wondered if this REALTOR was trying to stimulate discussion. But she honestly sounded like she needed guidance. It seemed to me that the subject matter would make an excellent blog as an update, and not as a question from a REALTOR.

So I researched it on California Association of Realtors site. There is a wealth of information there. I feel guilty that I don't visit more often to stay abreast of Market Matters or Legal Updates.

One of the best resources for this Q&A is found on the Housing Stimulus Laws for 2009 (must be a member to log in and get this info)

And that's where I found the answers to her question. I promptly responded, and encouraged her to go to CAR's website to see for herself.

CALIFORNIA ASSOCIATION OF REALTORS - This is a wonderful opportinity to review what our member benefits are. Looking at the various tabs, one will find:

• Newstand that has links to daily headlines about the real estate industry
• Education our California association provides high-quality real estate education for members, and this is offered via a variety of delivery methods, like Face2Face, live lecture, online, and home study
• Governmental Affairs - update on what CAR is doing to advance and support REALTOR issues in politics, public policy and legislation
  
• Legal - lots of good and timely legal updates
• Meetings and Events - allows us to register online to attend meetings
• Business Tools - here's where we can access member beneifts, sign up for free webinars, etc
• Find a REALTOR - the search can be customized by distance, specialty, designation, language proficiency, etc

When in doubt --- go to the most trusted source!

MY DEAR SELLERS

During a short sale, our mutual goal is to get an offer accepted as quickly as possible by your lender to prevent a foreclosure.

And as you already know, the effects of a short sale are far less damaging than a foreclosure or a bankruptcy.

REMEMBER YOUR GOAL: SELL THE PROPERTY!

Please understand that maintaining the home is still your primary responsibility during this selling process, whether you choose to stay or not at the property, remember what it takes to sell.

MAKE IT EASY TO SHOW YOUR PROPERTY

Keep the house looking nice inside and out. You literally only have minutes to make a good impression. Make that first impression count!

If it's messy and smelly, it won't sell. And if it doesn't sell, consider the alternative: foreclosure!

Allow the realtor to put a lockbox that other realtors can use to access the property.

How can we sell it if we can't show it?

Don't insist on unreasonable windows of time to show the property, such as showing only between 12 noon - 1 pm, or requiring 24 hours notice.

If you're serious about selling, you'll do your best to accommodate all interested buyers and their agents.

Keep the utilities on. Buyers, inspectors and appraisers need the utilities on to complete their respective activities.

A dark home is gloomy and uninviting. No power on will also make the home smell musty. Bathrooms and kitchens may show mildew. These are all unappealing and are turn-offs. Why take a chance? You'll only have to turn them back on for inspections later anyway. So just keep them on.

COMMUNICATE

Be accessible. Provide a number to best reach you, and return calls promptly

When you're going out of town, make sure you can still be reached by phone, email, fax.

Complete all required documents, especially your financial information, in a timely manner.

Keep your records current and handy. Don't pack away important information like your most recent tax returns, bank statements, pay stubs.

Keep the lines of communications open. Although doing a short sale transaction will take weeks from the time an offer is submitted, by the time the offer is ratified by the short sale lender, it becomes a race for time especially if the lender insists on a specific date to complete the transaction.

Your role as a seller doesn't end until the transaction closes escrow. What if the buyer backs out? We'll need to regroup quickly.

BE REALISTIC

Accept the possibility that your property may be worth less today than what you owe, or what you paid for.

What your house sells for should not be your primary concern. Protecting your credit and your future ability to buy a home in the near future, is.

Remember that as a condition of a short sale, you as the seller will not receive any funds from escrow.

So does it really matter to you how much it finally sells for? Just aim to get it sold!

You may have to spend a bit of money to spruce up your property , but consider that an investment to accomplish your goal

TAX RELIEF

Yes, these are challenging times. Nonetheless, remember the provisions of the Mortgage Forgiveness Debt Relief Act "to amend the Internal Revenue Code of 1986 to exclude discharges of indebtedness on principal residences from gross income, and for other purposes."

Key point in a short sale: the difference between what you owe and what it finally sells for was normally considered income, and would have been taxed as such....until the Mortgage Forgiveness Debt Relief Act was passed in December 2007, and applies to debt forgiven in calendar years 2007 through 2012.

As such, because this is not considered income, you may not have to pay taxes on it --- please consult with your CPA to get the complete and right answer.