My Marin Blog

It has been an interesting week!

The market reacted to the tightening of credit in the mortgage industry and the resulting stricter qualification criteria. Therefore, it is imperative to thoroughly review and understand the financing qualifications and terms for each potential home buyer. In order for any transaction to be closed successfully, buyers will require a real estate professional that is fully informed, knowledgeable and able to provide expert guidance as it relates to the financing aspects of the transaction. In the grand scheme of things the lending industry is following the laws of evolution and the natural selection. The mortgage market is correcting itself and weeding out the companies which specialized in sub prime and provided loans to buyers who perhaps could not have qualified for the loan in the long run. It is a survival of the most adaptable not the fittest. So those who can adapt to the new stringent and conservative rules, will weather out the storm. For the most part, the money will always be available. There is no limit to the money supply for those who want to buy; just the qualification rules changed.

In the Bay Area, the start of August shows numerous bright spots in what is traditionally a slower month for real estate sales. Many areas have seen an increase in activity as sellers have adjusted their pricing, and for qualified buyers this remains an excellent opportunity to invest in some great real estate deals. Working with an experienced Realtor^® remains the savviest means for buyers and sellers to navigate the muddy mortgage waters.

The Marin market remains mixed. The high end continues to outperform the lower priced properties. Mill Valley and Corte Madera are well into seller market territory for well priced and attractive properties. San Rafael and Novato are indicating more of a buyers market this past weeks.

Active Listings:

In Novato there are 99 condos; 134 SFH under $1,000,000; and 72 SFH over $1,000,000.

In San Rafael: 77 condos, 79 SFH under 1,000,000 and 50 SFH over 1,000,000; this if definitely a buyers opportunity market. Some of my buyers clients feel that it will get even better as we move into the holiday season. Perhaps it will in terms of the inventory, but the rates are certainly creeping up.

While in Mill Valley: 15 condos, 16 SFH under a million and 48 SFH over a million.

So what does it tell us? As always, the market is localized and stratified. Some areas are sellers market and some are buyers. Southern Marin remains sellers market for it’s proximity to the city and the location and especially the schools- the driving force in buyers’ home purchasing decision.

For sellers, pay close attention to the intended financing as offers come in on your home. Ask your REALTOR to double check that the buyers are able to close escrow.  

For buyers, there are still a lot of options for financing and some excellent deals out there if you do your homework. Now more than ever, having a well educated real estate advisor on your side is the essential first step in the process and the foundation of a suprise-free home purchasing process.

Have a great week!

Victoria Wells,

Your dedicated real estate advisor

Broker Associate/ CB Greenbrae

415-464-3380

Http://www.marinbesthomes.com

What You Don’t Know Can Hurt You

Seventy percent of Americans have never seen their own credit report or credit score. Did you know that you have a credit score?

That score impacts a surprising cross-section of life. Lenders use it to evaluate your eligibility for credit cards and loans. Landlords use it to gauge the likelihood you’ll pay the rent. Insurance companies may base your premium on it. Potential employers often use it to assess your character.

Over one hundred variables are included in the calculation of your credit score, so just paying your bills on time, as important as that is, may not rescue you from other credit pitfalls.

Mind Your Own Business

Be an active guardian of your credit. Before you consider refinancing or remodeling, send for a copy of your credit report and credit score. You want to see in advance exactly what the lender will see.

Bills long overdue or overlooked can show up as a blotch on your credit. A cable bill that

didn’t make it to your new address. An invoice lost in the mail. A department store error. Since it can take 30-60 days to resolve disputes and inaccuracies, take care of your credit first, and then go shopping.

Victoria Wells

Broker/REALTOR

Http://www.marinbesthomes.com

It has been an interesting week!

The market reacted to the tightening of credit in the mortgage industry and the resulting stricter qualification criteria. Therefore, it is imperative to thoroughly review and understand the financing qualifications and terms for each potential home buyer. In order for any transaction to be closed successfully, buyers will require a real estate professional that is fully informed, knowledgeable and able to provide expert guidance as it relates to the financing aspects of the transaction. In the grand scheme of things the lending industry is following the laws of evolution and the natural selection. The mortgage market is correcting itself and weeding out the companies which specialized in sub prime and provided loans to buyers who perhaps could not have qualified for the loan in the long run. It is a survival of the most adaptable not the fittest. So those who can adapt to the new stringent and conservative rules, will weather out the storm. For the most part, the money will always be available. There is no limit to the money supply for those who want to buy; just the qualification rules changed.

In the Bay Area, the start of August shows numerous bright spots in what is traditionally a slower month for real estate sales. Many areas have seen an increase in activity as sellers have adjusted their pricing, and for qualified buyers this remains an excellent opportunity to invest in some great real estate deals. Working with an experienced Realtor^® remains the safest means for buyers and sellers to navigate the muddy mortgage waters.

The Marin market remains mixed. The high end continues to outperform the lower priced properties. Mill Valley and Corte Madera are well into seller market territory for well priced and attractive properties. San Rafael and Novato are indicating more of a buyers market these past weeks.

Active Listings:

In Novato there are 99 condos; 134 SFH under $1,000,000; and 72 SFH over $1,000,000.

In San Rafael: 77 condos, 79 SFH under 1,000,000 and 50 SFH over 1,000,000; this if definitely a buyers opportunity market. Some of my buyer’s clients feel that it will get even better as we move into the holiday season. Perhaps it will in terms of the inventory, but the rates are certainly creeping up.

While in Mill Valley: 15 condos, 16 SFH under a million and 48 SFH over a million.

So what does it tell us? As always, the market is localized and stratified. Some areas are sellers market and some are buyers. Southern Marin remains sellers market for it’s proximity to the city and the location and the schools- the driving force in buyers’ home purchasing decision.

For sellers, pay close attention to the intended financing as offers come in.

For buyers, there are still a lot of options for financing and some excellent deals out there if you do your homework. Now more than ever, having a well educated agent is the essential first step in the process.

Have a great week!

Victoria Wells

Broker Associate/ CB Greenbrae

415-464-3380 Http://www.marinbesthomes.com

Amid myriad media reports regarding the lending industry, DataQuick, a real estate information service, published its July figures for the Bay Area under the headline “Bay Area Home Prices Steady, Slow Sales.” The report noted that the Bay Area has always been a collection of higher cost markets and that the declines in prices or sales volume in the Bay Area are not being seen as drastically as they have elsewhere in California.

More expensive neighborhoods are selling at a balanced pace which keeps median prices steady. In other words, the issues regarding the lending industry do have an impact on prices and sales in some areas, but not all. Sellers should take caution to the median price pointing up. With fewer sales, the median price is more sensitive to the impact of high end home sales. The fact that the market for luxury property remains strong is skewing the median price and perhaps giving a false sense of reality; now more than ever, pricing needs to be studied carefully. Cautious buyers in the market are making offers based on what they think values will be in six months to a year from now. It appears that appraisers are doing the same. If your listing has been on the market for some time, be careful you are not chasing the market with your price. Chasing the market down occurs when you are slow to reduce your price and by the time that you do, you may already be another reduction behind. Doing this for too long will cause your property to languish on the market and ultimately sell for much less than if you hit the price right the first time. The best way to avoid a chase down is to price your property at or below the last realistic comparable and remember how buyers are looking at the situation.

The DataQuick numbers are good to look at but they are an indication of the past and not reflective of what the future may hold. The reports show prices by county which is too broad. The fact is that we have micro markets within some zip codes and now more than ever, prices are a very local issue.

People are employed. We have single-digit, midrange interest rates, and live in one of the most desirable areas of the world. It’s a great combination for business to remain “steady as she goes.”

Enjoy the few more days of Summer!

Victoria Wells

Http://www.marinbesthomes.com

Marin County did not experience a big change in inventory or percentage in contract of either SFR's or Condo's in the past week but sales activity in both markets was down significantly from the same period last year. 47 Single Family Residences were sold during the week in 2006 vs. 24 this year. The figures for Condo's are 14 in 2006 vs. 9 this year.

It is not clear whether this is a result of August vacations, the current mortgage "crunch", or just a blip on the radar screen. We will have to wait and see.

The sub-prime mortgage "crisis" has caused a lack of demand for mortgage-backed securities in the financial markets. A number of lenders are cutting back on non-conforming loans or placing much more stringent conditions and higher interest rates on those loans. Some of the lenders who are still taking such loans are backed up and not getting out documents on time, resulting in instances of delayed closings. In addition, my conversations with title officers and mortgage brokers give me the impression that 2nd loans are getting to be about as scarce as the proverbial hens' teeth.

As we reported earlier, American Home Mortgage, reportedly the 10th largest lender recently filed for bankruptcy. My information is that, nationally, about 100 lenders have closed their doors in the last year.

If there’s one thing I can say to you all this week, it’s “don’t panic!” Yes, the market is wacky. Yes, the mortgage industry is in a state of shock. But, this too shall pass. We all seem to be in this stage of inquisition, trying to determine “what does all this mean?” What does it mean to the market? And, more importantly, what does it mean for our ability to earn a living?

Well, if there’s one thing I think I can safely guarantee, it’s that people will still continue to buy and sell houses, and that Marin will still continue to be a strong market due to the supply and demand of property, as well as the fact that we’re about as close to God’s country as one can get! Yes, the same old principles still apply; we just need things to settle down a bit, so everyone remembers those important facts. It’ll happen. Just give it some time – two weeks, maybe a month or two, max, before the new rules are well outlined, and buyers and sellers behavior falls in line with the new market dynamics.

What this means to buyers and sellers.

Sellers need to be aware that lenders are a critical part of the sales transaction. Buyers who are pre-approved with substantial down payments are worth their weight in gold in these times. Negotiating in good faith with qualified buyers is a prudent thing to do, as is recognizing when the time is right to reduce the offering price of a home that is not receiving much market attention. The current mortgage situation will most likely continue to attenuate the pool of qualified buyers for the near future.

Buyers are wise to utilize the services of a reputable local lender or broker with a proven track record in Marin County. They should ensure that they are pre-approved and they should check frequently on the prevailing interest rates to make sure that the amount they qualify for has not changed substantially. Princeton Capital, Coldwell Banker's in-house mortgage professionals are rock-solid lenders and an invaluable source of information. They are happy to review loan arrangements, and provide information and quotations without obligation. There is such a thing as a free lunch after all. Try out their services. It could be very beneficial.

Experienced REALTORS can help ensure that transactions remain on track and on time. By keeping abreast of the transaction details, they can provide early warnings about potential problems and help preserve options for buyers and sellers. Based on their experience and expertise, REALTORS can be sources of useful information and advice. The current lending situation will work itself out in time, but until then successful buyers and sellers will benefit greatly from timely information and prudent action.

Blessings, Victoria Wells 415-464-3380 direct

Http://www.marinbesthomes.com

You see we already had a black cat names Salem and a black and white miniature Pomeranian names Baby, who's been with us for over three years. I have five kids and Baby was my sixth child. It took over two years to be able to leave Baby home alone. She cried and barked and created so much commotion that I was not able to leave her home alone and was forced to bring her with me everywhere. I eventually bribed her with treats so many times that she agreed to stay home alone in exchange for treats. 

Now  I wasn't particularly excited about acquiring another dog. This meant I would be the one to take care of this one just as I always did with everything and everyone. My daughter's argument for having another dog, was that other pets bonded with me and she needed her own dog to bond only with her. My argument against it was that they bond with me because I take care of them. To make a long story short, she won and we Got Missy! I did not have a choice, not with my daughter. Guess who takes care of Missy now?

Well Missy turned out to be a perfect marketing and advertising pet; she a client magnet. She very small and sort of gets lost in the house and I don't have a heart to live her behind. I end up bringing her with me every place I go. You might ask where is my daughter to take care of her new puppy? You see, she is thirteen; she is either at school, visiting family, at camp, socializing and simply out somewhere she can not bring Missy with her. What was she thinking when she was going to bond with a new pet? My daughter feels that I can bring Missy with me. Her new argument is that I am self employed REALTOR, I go places and basically Missy can come along. true, Missy  has extremely friendly and loving personality. She easily fits in a bag we bought for her ; so she comes with me to the open houses, to preview homes and to brokers' open. She is an excellent traveler companion. The best part is Missy  makes me smile every time I look at her. Actually she puts everyone at ease and gets everyone to smile. She comes in her own bag and we bring her to the restaurants, movies, museums  and places dogs usually aren't welcome. No one knows there is dog in the bag if we zipper it.

The best part is when I bring Missy to Sunday's public open, the clients come in and there is an instant connection, she puts them at ease and creates a friendly atmosphere. When I am asked about Missy, I tell them that she is my daughter's dog but very few people believe me. The grand plan is that when my daughter leaves for college in five years, Missy will go with her. Frankly, I will believe it when I see it. I expect another argument from my daughter against bringing Missy to college, I am sure of it.  So go ahead, get a puppy; your life will change forever!

Http://www.marinbesrhomes.com

Thank for visiting and reading my blog. Namaste.

HOLDING STEADY

The Northern California housing market continues to see median prices rise as sales decline, a sure sign that the top end of the market is keeping itself healthy with cash. The fact that medians are holding steady or increasing year-to-date is proof of the strong desire to live, work and play in the region. Read on.

Statistics

Statewide: The median resale price of a single-family detached home in California for June was $594,260, an increase of about 3% over June 2006 and essentially flat for the month. Unsold resale inventory represented a 10.1-month supply, compared to 6.1 months for the same period a year ago. Median number of days till sale was 52 in June, up from 46 for June 2006.

Bay Area: June median price, at $842,600, is down a little over 1% for the month but still up over 5% for the year; sales are basically flat for the month and down about 21% for the year. San Francisco County median is a remarkable $930,000, almost 5% shy of last month’s record; sales are down 21% year-over-year. Santa Clara County median of $865,000 is flat for the month and up almost 6% for the year; sales are down 1.5% for the month and 18% for the year. Santa Cruz County sales activity rebounded 10% since May, the best showing this month, but is down 22% year-over-year and medians are essentially flat. Monterey Country and region medians are respectable, a little better than level, for both the month and year; sales activity is down 29% for the region and 36% for the County. Sonoma County’s median is 2.4% lower than last year’s, with sales down about 21%. Finally, San Benito County’s median is holding steady while sales are down over 30% for the month and over 60% for the year.

Interest Rates*: Thirty-year fixed at 6.87%, 15-year fixed at 6.51% and 5/1 ARM at 6.09%. Now, just as a year ago, the question is one of keeping the economy warm, but not letting it overheat and slip into inflation. The New York Times recently commented, almost wistfully, that at a time like this the famously opaque Mr. Greenspan would have been juggling rates to stimulate the economy, but the oddly laconic Mr. Bernanke may hold the line and let market forces do their best – or worst. After such a long period of a steady Fed funds rate, even a cut from 5.25% to 5% might have symbolic value far beyond its actual impact.

Inventory: In most areas, inventory is not an issue – although there are pockets throughout the Greater Bay Area – San Francisco and Peninsula communities included – that could always enjoy more supply.

Overall Assessment: Seize the day! If you are selling your home, be sure to paint, polish and stage to your hearts content; if you are in the market to buy, remember that you may only have these choices once in a decade. Mortgages are more expensive and (alas) more difficult to get than we wish they were; but a clear shot at your dream house may be worth the bother of a refi down the line. Northern California is one of the world’s best places to live and not much could change that.

*Area interest rates are reported to be as follows:

Sacramento/Tahoe, San Francisco Bay Area and Silicon Valley regions: Princeton Capital reports that as of August 1, 2007, the 30-year fixed with one point is 6.750%, the 15-year fixed with one point is 6.500% and the 5/1 ARM with one point is 6.250%, on non-conforming loans of $500,000.

Have a Great Summer!

VICTORIA WELLS BROKER/ REALTOR®

415-464-3380 direct 415-710-4090 mobile

vawells@comcast.net please visit: www.marinbesthomes.com