Posts Tagged ‘sales’

Santa Clara Valley Real Estate Report – March 2012

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– Mortgage Debt Relief Act to Expire at end of year.

– The median price for homes was up 4.4% year-over-year in February.

– The number of properties owned by the banks was down 15.6% year-over-year.

Once upon a time, when a homeowner did a short sale, the IRS counted the difference between what the bank took and what the homeowner owed as income. Not much incentive there for sellers.

In 2007, the federal government enacted the MDRA that allows qualified taxpayers to exclude that “income”.

The law will end December 31st.  You must close the short sale by then.

Other qualifications include:
· Good for up to $2,000,000 in forgiven debt.

· Only works for principal homes.

· The tax rule can be applied to debt used to refinance your home, provided the principal balance of the old mortgage, immediately before the refinancing, would have qualified.

See “The Mortgage Forgiveness Debt Relief Act and Debt Cancellation” for additional information. Use this link: http://tinyurl.com/5pe43f.

If you are upside down and are having problems making your payments, it’s time to do something. It’s going to take a long time before an upside down property becomes positive.

FEBRUARY MARKET STATISTICS
For fifteen months the median price for single- family, re-sale homes has been lower than the year before. But, in February, the median price was up 4% year-over-year.

Even better, the average price was up 11.9% compared to last February, reflecting that more $1MM+ homes are selling.

Home sales were down 3.4% year-over-year. Condo sales were down year-over-year by 3.9%.

The median price for condos was up 5.1% compared to last February.

Inventory of both homes and condos continues to be weak. Home inventory was down 23.3% compared to last February: 1,389 homes actively listed. Condo inventory was down 70.8% year- over-year.Pending home sales were up 22.9% year-over- year. Condo pending sales were up 12.8% year- over-year.

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Santa Clara Valley Real Estate Report – January/February 2012

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HIGHLIGHTS

– Facebook IPO to goose Silicon Valley real estate this fall.

– Zynga IPO will add buyers to the area near the end of May.

– The number of properties owned by the banks was down 14.7% year-over-year.

The Facebook IPO is expected to mint about 1,000 new millionaires, most of whom live in apartments or small houses in Silicon Valley.

Shares are expected to start trading sometime this spring. SEC rules prohibit employees to sell shares until six months after the shares start trading.
So, expect home buying to pick up in the fall.

If you are a seller, you may want to wait until then.

If you are a buyer, you may want to buy before then.

ABC News spoke of rumors that speculators were buying property near Facebook’s headquarters, hoping to flip it later.

While Facebook is the elephant in the room, LinkedIn went public last May and vested employees were able to sell their stock at the end of November.

Zynga is another local company that went public last year, December. Their employees can start selling stock the end of May.

JANUARY MARKET STATISTICS
Sale of single-family, re-sale homes started the year in a slump. The 556 sales were the lowest monthly total since February 2008. Home sales were down 35.9% from December. Year-over-year, home sales were off 13.1%.

Condo sales were off 38.3% from December, but were up 1.8% year-over-year.

The median price for homes was down 8.5% year- over-year. This is the fifteenth month in a row the median price for homes has been lower than the year before.

The median price for condos was up 1.8% compared to last January.

Inventory of both homes and condos continues to be weak. Home inventory was down 31.1% compared to last January: 1,382 homes actively listed. Condo inventory was down 46.2% year- over-year.

Pending sales of homes rose slightly from December, but were off 6.8% year-over-year.

Condo pending sales were up 1.8% year-over- year.

Please remember, while statistics are nice, they will not determine the price you pay or get for a property. That will come down to you and the buyer or seller.

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Santa Clara Valley Real Estate Report – Dec 2011

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HIGHLIGHTS

– Sales up, prices down in 2011.

– California Association of REALTORS® forecast for 2012.

– The number of properties owned by the banks was down 15.5% year-over-year.

Single-family, re-sales home sales were up 0.5% last year.

Unfortunately, after a nice gain in 2010, prices were down. The median price for homes dropped 5.3% and the average price was off 1%.

Condo sales in the county were up 12.2% over 2010.

The median price for condos dropped 13%.

THE CALIFORNIA ASSOCIATION OF REALTORS®
expects the median home price to increase 1.7% in 2012. They forecast sales to increase by 1%.

“2012 will be another transition year for the California housing market, as the continued uncertainty about the U.S. financial system, job growth, and the stability of the overall economy remain in the forefront for all market participants,” said C.A.R. Vice President and Chief Economist Leslie Appleton-Young.

“An improvement in job growth, consumer spending, and corresponding gains in housing are essential to a broader recovery in the economy, but would-be buyers will remain cautious as they weigh these myriad uncertainties against the clear opportunities presented by today’s very affordable housing market.

“The most likely scenario is for the modest recovery to continue, and this should push sales up slightly next year by 1 percent and maintain levels that are significantly higher than those recorded during the depths of the housing downturn.

“The wild cards for 2012 are many, including federal, fiscal, monetary, and housing policies; the contentious political climate during an election year; and the strength of the U.S. economic recovery,” said Appleton-Young.

DECEMBER MARKET STATISTICS
Sale of single-family, re-sale homes ended the year on a high not, up 8% in December from November. Year-over-year, home sales were off 3.6%.

Condo sales were up 10.5% from November, and were up 12.5% year-over-year.

The median price for homes was down 4.5% year- over-year. This is the fourteenth month in a row the median price for homes has been lower than the year before.

The median price for condos was off 11.3% compared to last December.

Inventory of both homes and condos continues to be weak, which should be good for prices. Home inventory was down 28.5% compared to last December: 1,452 homes actively listed. Condo inventory was down 48.2% year-over-year.

Please remember, while statistics are nice, they will not determine the price you pay or get for a property. That will come down to you and the buyer or seller.

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Santa Clara Valley Real Estate Report – Nov/Dec 2011

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HIGHLIGHTS

– Pending sales up 9.2% year-over-year, nationwide.

– Notices of default dropped in October.

– The number of properties owned by the banks was down 14.4% year-over-year.

Pending sales were up 10.4% in October compared to September, and up 9.2% year-over- year, according to the National Association of REALTORS®.

Lawrence Yun, NAR chief economist, said improved contract activity is a hopeful sign. “Home sales have been plodding along at a sub-par level while interest rates are hovering at record lows and there is a pent-up demand from buyers who normally would have entered the market in recent years. We hope this is indicates more buyers are taking advantage of the excellent affordability conditions,” he said.

“Many consumers are recognizing that home buyers in the past two years have had one of the lowest default rates in history. Moreover, continued inventory declines are another healthy sign for the housing market,” Yun added.

“Although contract signings are up, not all contracts lead to closings. Many potential home buyers inadvertently hurt their credit scores and chances of getting a mortgage through easily averted actions, such as cancelling an old credit line while taking on a new one,” Yun said. “Such actions could unwittingly prevent buyers from obtaining a mortgage if their credit score is close the margins of qualifying, or they might get a loan but with less favorable terms.”

NAR encourages consumers to be aware of their credit score and actions which could hurt or enhance it.

http://houselogic.com, the association’s consumer website devoted to all aspects of homeownership, offers tips for improving credit scores at http://tinyurl.com/27czzgb.

MARKET STATISTICS
Sale of single-family, re-sale homes fell 4.8% in November from October. Year-over-year, home sales were off 5.9%. Year-to-date, home sales are flat.

Condo sales were off 2.5% from October, but were up 26.9% year-over-year. Year-to-date, condo sales are up 12.3%.

The median price for homes was down 5.1% year- over-year. This is the thirteenth month in a row the median price for homes has been lower than the year before.

The median price for condos was off 12.5% compared to last November.

Inventory of both homes and condos continues to be weak, which should be good for prices. Home inventory was down 28.9% compared to last November: 1,672 homes actively listed. Condo inventory was down 46.1% year-over-year.

Please remember, while statistics are nice, they will not determine the price you pay or get for a property. That will come down to you and the buyer or seller.

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