Silicon Valley Home Sales: High ‘n Low

By Alicia Lanier, REALTOR

Although homes selling in the multi-million dollar range are not all that rare in the Silicon Valley, a single-family home selling for under $350,000 (or even under $500,000!) has become increasingly uncommon in recent years. The last year’s mortgage meltdown, however, has put pressure on home prices in some areas and deep discounts can be found.

 

As a result, the lowest-priced home sold in May was recorded at $335,000. Believe it or not, it wasn’t a short sale or bank-owned property. The home in question was a 1,200 square foot, 4-bedroom/2 bath in San Jose’s Alum Rock area on Berona Way. And five other single-family homes in Santa Clara County also sold under $400,000. All except one in Santa Clara were in San Jose.

                                                                                                 

On the other end of the spectrum - up on the Peninsula in Los Altos Hills - a two-acre estate on Willow Pond Lane in the Pink Horse Ranch area sold for almost $7 million. Recorded at $6.8 million, the 5,765-sq. ft. estate home is sited in a park-like setting with its own pond and also has a separate entertainment center and separate guest quarters. A total of 56 homes sold for $1 million or more in Santa Clara County in May.

Alicia Lanier is a REALTOR, e-PRO, and member of the Coldwell Banker Sterling Society, the top 11% of agents internationally    www.AliciaLanier.com  408-491-1634 

Memorial Service Sunday for Harold Riddle: Democratic Activist, War Hero and Friend

By Alicia Lanier, REALTOR

It was not until Hal Riddle was facing death squarely in the face and a super-sized U.S. Marine Corps poster was sent to him by a friend for the wall of his spartan room at a care facility that I learned that the world traveler, passionate activist, and gentle man whom I enjoyed calling my friend was also a bona fide larger-than-life World War II hero. That’s the kind of man Hal Riddle was: Modest about his achievements and adventures and more interested in serving and simply enjoying life than in basking in the acclaim that frequently came his way.

In her recent article in the San Jose Mercury News, Mary Anne Ostrom beautifully captured both Hal Riddle’s adventurous spirit and gratitude for having survived the World War II horrors on Guadalcanal and other battles. For example:

Though he did not speak much of his Guadalcanal ordeal, Mr. Riddle’s daughter Judy Riddle-Skintauy said, “After surviving World War II and saving his brother, he told us, ‘I will never have anything to complain about.’ “

This coming Sunday, June 1, services for Thomas Harold Riddle – a longtime resident of Campbell – will begin at 2 p.m. at St. Mark’s Episcopal Church, 1957 Pruneridge Ave., in Santa Clara. A reception will follow at the Italian-American Heritage Foundation, 425 N. Fourth St., San Jose.

He is survived by wife, Loretta, of Campbell and his daughter Judy Riddle-Skintauy and son-in-law James Skintauy of Sacramento, sister Ruth Cooper of Concord. He was preceded in death by his son, Larry Riddle-Mezza.

Donations in his memory may be directed to San Jose State Alumni Association Student Scholarship Fund, One Washington Square, San Jose, CA 95192-0126.

Yes, Virginia, There’s Still 100% Home Financing

By Alicia Lanier, REALTOR

Two of my first-time homebuyer clients have just discovered this informational gem: They, and you, can still obtain  a type of “100% financing for homes” - but you won’t find it with conventional lenders. But there are government programs that offer downpayment assistance grants to Californians with low- to moderate-incomes. 

Sounds good? Drop me an e-mail, and I’ll put you in touch with loan professionals who can help unravel the mystery of all this for you. Also, be sure to specify what cities or neighborhoods in the Silicon Valley are most attractive to you – as well as your other wants and needs in a home - so I can help you identify some promising possibilities for you and your family.

Alicia Lanier is a REALTOR, e-PRO, and member of the Coldwell Banker Sterling Society, the top 11% of agents internationally    www.AliciaLanier.com  408-491-1634 

 

Seven-Month Run of Record Low Home Sales Ends in Silicon Valley, 9-county Bay Area

Existing home sales in the Silicon Valley – indeed the entire 9-county Bay Area - edged up from a seven-month run of record lows in April, indicating that mortgage availability is improving and that an increasing number of fence sitters have decided they like today’s lower prices, according to a real estate information service.

A total of 6,310 new and resale houses and condos sold in the nine-county Bay Area in April. That was up 28.8 percent from 4,898 in March, and down 15.3 percent from 7,447 for April 2007, DataQuick Information Systems reported.

In Santa Clara County, sales volume was down 28% in April from the same month last year. The median selling price countywide dropped 13% to $615,000 for the same period. Even the San Jose Mercury News spread the word that home sales had rebounded in April in the Silicon Valley.

The month-to-month jump was the strongest for any March/April in DataQuick’s statistics, which go back to 1988. Starting last September and through March, each calendar month was the slowest on record. Last month was the slowest April since 1995 when 5,636 homes were sold.

“The big issue here is that mortgages are becoming obtainable, which will reduce the pile of stacked up pending escrows. It’s unclear if the financing is because of policy changes or because mortgage investors are getting more interested in securities. Probably both,” said Marshall Prentice, DataQuick president.

The median price paid for a Bay Area home was $518,000 last month, down 3.4 percent from $536,000 in March, and down 21.4 percent from $659,000 in April last year. Last month’s median was 22.1 percent lower than the peak median of $665,000 reached in June and July last year.

Last month’s median price would have been closer to $578,000 if the availability of jumbo home loans had remained stable. A year ago jumbo loans, mortgages above $417,000, accounted for 63.4 percent of all Bay Area home loans. Last month they were 28.8 percent, DataQuick reported.

Foreclosure property resales accounted for 25.7 percent of last month’s Bay Area market. The percentage is higher in outlying areas that absorbed spillover activity during the frenzy. While foreclosure properties were 5.9 percent of San Francisco’s resale market and 8.9 percent of Marin’s resale market last month, they were 44.7 percent in Contra Costa and 54.2 percent in Solano.

The typical monthly mortgage payment that Bay Area buyers committed themselves to paying was $2,309 last month, down from $2,405 the previous month, and down from $3,074 a year ago. Adjusted for inflation, current payments are 9.5 percent below typical payments in the spring of 1989, the peak of the prior real estate cycle. They are 31.9 percent below the current cycle’s peak in June 2006.

Indicators of market distress continue to move in different directions. Foreclosure activity is at record levels, financing with adjustable-rate mortgages is at a six-year low. Down payment sizes and flipping rates are stable, non-owner occupied buying activity is increasing, DataQuick reported.

Is Housing Crisis Over in Silicon Valley?

By Alicia Lanier, REALTOR

Much is being made in real estate circles of the recent Wall Street Journal article, “The Housing Crisis is Over.” Definitely this is a highly readable opinion story by Cyril Moulle-Berteaux, who is managing partner of a hedge fund firm based in New York.

Also, stay tuned: the MLS stats are in for our April 2008 sales in Silicon Valley cities. And they are showing a continuous trend upward for all months since the first of the year … definitely a good sign.

 Alicia Lanier is a REALTOR, e-PRO, and member of the Coldwell Banker Sterling Society, the top 11% of agents internationally    www.AliciaLanier.com  408-491-1634 

 

 

Buying “Short Sale” Real Estate in Silicon Valley

By Alicia Lanier, REALTOR

More and more we are seeing “short sale” noted on some homes for sale in the MLS, and many of these properties are legitimate good value opportunities for Silicon Valley homebuyers. But there are some potential difficulties, so let’s look at what purchasing a “short sale” is and means to the Buyer.

Frequently, the short sale strategy is used by a homeowner wanting to avoid foreclosure or other financial distress situation. A short sale will “ding” the Seller’s credit less than a foreclosure. Essentially, the Seller’s mortgage lender is being asked to agree to accept a payoff of less than the balance due on the loan.

Because “short sale” properties usually are priced low to sell as quickly as possible, these properties can be real bargains for a Buyer. However, there are disadvantages and difficulties that every Buyer should understand before plunging wholeheartedly into a short sale purchase:

• The property is nearly always sold in “As Is” condition and it’s unusual to find a pristine property being sold in a short sale. So, be prepared to invest ”fix it up” money into the home.
• A Buyer may make a purchase offer and wait for several weeks to even learn whether the offer will be accepted by the Seller’s lender. Sometimes it is possible – but not recommended – to expedite the process by making a non-contingent purchase offer … i.e. not have the offer subject to a loan or appraisal contingency or property inspection contingency. So, if you hate standing in lines, you may not have the patience to endure the lengthy uncertainty of a short sale purchse.
• Upon acceptance of the contract by the Lender, the Buyer will be responsible for paying for any inspections (property, termite, roof, etc), a due dilligence that should not be disregarded since the property will be sold As Is. Only after a thorough inspection should the Buyer remove all property contingencies. It is unlikely that the Lender would negotiate a reduced offer after the contingency period. So be realistic about the  potential limitations that a short sale can impose.
• If a Lender refuses to pay real estate or other fees, it is possible that the Buyer may be asked to absorb some or all of these fees. So extra cash may be required at closing.
• After contract acceptance, it can take from one to four months to close a transaction even after the Lender has accepted the purchase offer. This could make it difficult for a Buyer to “lock in” a low home loan interest rate in a rising interest market.
• A “short sale” or foreclosure property in a neighborhood can negatively impact home values in that neighborhood, at least temporarily.   

TIP: Let me know if you want more information about selling or buying “short sale” real estate. Because of the complexities and potential for complications to arise mid-transaction, I strongly advise any Buyer who wants to purchase a “short sale” to use the services of a real estate professional who is familiar with this process. Traditionally the fee for the Buyer’s agent is paid by the Seller or the Seller’s Lender.

Alicia Lanier is a REALTOR, e-PRO, and member of the Coldwell Banker Sterling Society, the top 11% of agents internationally    www.AliciaLanier.com  408-491-1634 

The Plant Shopping Center is Blossoming at Curtner and Monterey in East San Jose

By Alicia Lanier, REALTOR

Are you trying to decide how to spend your “economic stimulus” check from the Feds? Then, you might want to visit  San Jose’s new retail hot spot, The Plant shopping center, now taking shape on the East Side at Curtner Avenue and Monterey Road. Quite a few well-known retailers have already opened their doors and more are readying their spaces.

Coming soon are popular Payless Shoe Source, Panda Express, and El Pollo Loco.  Payless Shoe Source will have a 2,998 square foot store; Panda Express, a 2,145 square foot store; and El Pollo Loco, a 3,014 square feet store. All plan to open within the next few months. Other retailers already open or to come are Sleep Train, Off Broadway Shoe Warehouse, Home Depot, Target, Best Buy, Petsmart, Toys R Us and more.

When complete, The Plant is scheduled to be the largest “power” shopping center in San Jose. The 646,000-square-foot center is growing on the former property of the General Electric manufacturing plant and will include a 110,000-square-foot town-square park. The development borrows Art Moderne architectural elements from a 17,000 square-foot 1948 office building, the only structure remaining from the original plant complex. Features of The Plant include a pedestrian friendly site design with a variety of trees, community meeting space, town square, and outdoor dining.

Related Blogpost:

November, 2007: The Plant Shopping Center Growing at Curtner and Monterey in San Jose’s Under-retailed East Side

Alicia Lanier is a REALTOR, e-PRO, and member of the Coldwell Banker Sterling Society which places her among the top 11% of agents internationally    www.AliciaLanier.com  408-491-1634

 

California Health Care Reform Activists Plan “Educational Picket” in San Francisco June 19

By Alicia Lanier, REALTOR

If you have begun to think that California has missed the window for health care reform in 2008, then you will want to know about a new statewide poll by the Field Institute. It shows that the number of Californians who would prefer to receive their health care coverage “through the government” now stands at 31%, up 9 % since the last poll in 2006. Clearly, a growing number believe in removing the “profit motive” from health care.

Some Californians are simply refusing to let health care reform die. At noon on Thursday, June 19, 2008, advocates of single-payer health care reform – who support both California Senate Bill 840 and U.S. House Resolution 676 – will gather in San Francisco. There they will hold a Rally and an “educational picket” of the American Association of Health Insurance Plans convention at the Moscone Center. The California Alliance for Retired Americans (CARA) is chartering a bus that will leave San Jose from the South Bay Labor Council at 2102 Almaden Road at 10 a.m. that day. Call CARA at 510-663-4086 before May 19 for more information on the Rally bus from San Jose to San Francisco. 

The California poll, by the way, comes on the heels of a recent study published in the leading medical journal, Annals of Internal Medicine, which found that 59% of U.S. physicians now support government legislation to establish national health insurance. This is up 10% from an earlier study in 2002.

Related Blogposts:
February 19, 2008: California Health Care Reform Is Dead – or Is It?
January 15, 2008: California Health Care Reform Battle Heats Up As Governor, Speaker File Ballot Initiative For Fall
October 30, 2007: “Trick” or “Treat” for Health Care Reform?

Alicia Lanier is a REALTOR, e-PRO, and member of the Coldwell Banker Sterling Society which places her among the top 11% of agents internationally    www.AliciaLanier.com  408-491-1634