And We Think California Prices are High!

Someone sent me an email featuring this house...really a historic hallway.
It's 9 1/2 feet wide and 42 feet long and is billed as the narrowest house in New York City. But there's nothing small about its asking price: $2.7 million.
Located at 75 1/2 Bedford St. in Greenwich Village, the red brick building was built in 1873, sandwiched between 75 and 77 Bedford.
It's famous for other reasons, too. Corcoran real estate broker Alex Nicholas says anthropologist Margaret Mead and poet Edna St. Vincent Millay once called it home.
The three-story structure boasts plenty of light with large windows in the front and back, and a skylight.
The current owner bought it in 2000 for $1.6 million.
Nicholas says it's a place for someone who wants a little history.

Some Really Useful Websites

My friend Lynn Gross-Cerf who runs Organization...and More shared these helpful sites from Better Homes and Gardens Magazine, and I wanted to pass them on to you. I'm sure that you are familiar with many of these, but some are new:

Novadebt.org – budgeting
Mint.com – tracking were your money is spent
Restaurant.com – discount dining coupons
Entertainment.com – discount dining coupon book
Gasbuddy.com – find the cheapest gas prices
Redplum.com – food shopping coupons
SmartSource.com – food shopping coupons
BHG.com/features/living-green – tips on using home made cleaning products
Insurance.com – check your insurance coverage
Pearbudget.com – simple budget for kids
JustThrive.com – money management tools for kids
Pillbot.com – prescription cost comparison
PharmacyChecker.com – prescription cost comparison
DealNews.com – comparison shop
Pricegrabber.com – comparison shop
Gazaro.com – electronics
Pricespider.com – electronics
Shopittome.com – clothing, bags and shoe deals
PromotionalCodes.com – manufacturer discounts
Freeshipping.org – shipping offers and codes
Prepaidreviews.com – compare phones and plans
Energystar.gov/taxcredits – tax credit for purchasing energy efficient items
Priceline.com – hotels
CheapCheapCheap.com – hotels
Craigslist.org – virtual garage sale
Freecycle.org – free stuff

Mid priced Homes in Sunnyvale

A reader commented on yesterday's post, asking about homes in the $750,000 to $1 million range in Sunnyvale. Because of the extremely low inventory (see my post dated August 17) this has been a very active market. Open houses are very well attended, and all but overpriced...or underloved...houses are moving quickly, often with multiple offers. I've noticed sold signs sprouting even on busy streets such as Remington, a sure sign of a recovering market. Of course, schools continue to be a factor in desirability and value, and condition and location are always important, but low interest rates are keeping buyers out there, and we're not seeing many short sales or bank owned properties in that price range, especially in Sunnyvale.

Real Estate and the Stock Market

Rick Turley, our San Francisco Bay Area President of Coldwell Banker, had some great insights to share about the effect of the stock market's jump on higher end real estate.
Here are some highlights.
Some high-end Sellers may be saying no to potential contracts on their home as they think by waiting another four to six months (thanks to the stock market’s recent gains) they may get more for their homes. Of course every home is unique and each market is very local, but by and large, the higher end of housing probably won’t follow this reasoning. First, what we know is that in a “normal” market (of which this market is anything but), the average lag time between the two is 18 months (not four to six months). It’s also important to point out that we probably aren’t out of the woods as it relates to the volatility in the stock market and overall health of our economy. Many analysts are suggesting that our recovery may be “W” shaped rather than “V” so we could be looking at more challenges ahead.
Focusing less on the stock market and more on the level of supply and demand in the particular market and neighborhood will most likely be more helpful. In most markets, the upper-tier price point remains relatively soft; in some cases offers can be few and far between, and may be worth a second look. A few examples: In San Mateo and Santa Clara counties, there’s currently less than a month and a half’s supply of inventory for homes under $750,000. For homes over $3M, there is a 13 month supply. In San Francisco, for homes under $1M – there is a 2 months supply of inventory. For homes over $3M, a 14 month supply. That’s not to say buyers should be throwing out unrealistic offers and expecting them to be accepted. The real story here is that across the board we’re seeing very favorable increases in interest and in buyer activity. Sellers may want to consider taking advantage of that interest…before the typical seasonal slowdown.
For those who focus on the stock market daily, it is probably a better indicator for the economy as a whole rather than a predictor of where real estate is headed. With the DOW closing Thursday at just over 9,300, it doesn’t suggest home values will rise in a direct correlation, but it may mean that the recession is subsiding which would be good news for us all.

Citizen Involvement

I've been called for jury duty next week, and I can't get an answer form the Superior Court phone message or from their website. Maybe a live person on Monday morning can tell me what to do. My juror number is fairly high, so a call-in on Monday should be OK.
I'm also very interested in the hotly contested upcoming city council elections on November 3 in Cupertino and Sunnyvale. SILVAR (Silicon County Association of Realtors) will host a candidates forum for its members at a couple of its upcoming district tour meetings to hear what they have to say. We'll also be interviewing candidates in these cities who want to be considered for endorsement by the SILVAR PAC. The endorsements are expected to be released by mid-September, and since I'm a member of the PAC committee this year, my input will count.

Modifying a Loan

A couple of posts ago, I wrote about the difficulty a homeowner was having in modifying a loan on his house. Here are some tips from an attorney with the National Consumer Law Center in Boston for borrowers experiencing difficulties and frustration getting through to their loan servicer when trying to obtain a loan modification, and dealing with these loan servicers when they do.

*Consumers should keep detailed written records of every contact they have with their servicer, including logs of phone calls and copies of written correspondence.
*If the servicer makes a promise, such as crediting a payment, modifying the loan, or stopping a foreclosure sale, for example, the homeowner must get it in writing.
*When seeking a loan modification, consumers should send a request in writing asking the servicer who owns the mortgage loan. Some banks and investors have policies on which loans they will modify.
*Consumers should beware of servicers advising them to stop making payments because they have applied for a loan modification. Instead, homeowners should continue making payments for as long as possible, even if they can't make the payment in full. Otherwise, the loan will accrue more interest, and will cost more in the long run.
*Borrowers who feel they cannot resolve their problem or those who think their servicer may be violating their rights are advised to contact a non-profit housing counselor or seek legal help. Housing counselors can help negotiate a loan modification for free.
*Consumers can visit the Treasury’s homeowners Web site to find out if they qualify for a loan modification under the Obama administration’s Making Home Affordable program.

Birthday Weekend is Over...Back to Work

I've been meaning to write about the intriguing statistics we heard at the Realtors' tour meeting last week. Listings for sale in Santa Clara County are half what they were a year ago, down to 3577 from 7039! Sales of distressed properties (bank owned) in the county were so active that they outnumbered listings nearly 3 to 1.
Inventory in our local district, Sunnyvale, Cupertino and Santa Clara, is way down also. Available Cupertino single family homes have not been this low...125... since February of this year, and at that time weekly sales were 24 out of that number. Last week, pending sales were 84! Sunnyvale listings were at 121, even lower than February's 128, and pending sales were at 103, as compared to 57 in February. Santa Clara listings were about half February's number, and sales last week actually outnumbered listings, 133 to 87.
Still, in the higher end, we’ve seen cases of five to 10 percent list price reductions in properties that haven’t moved, and a final and acceptable offer coming in a little below that. That’s not to say buyers should throw out ridiculous numbers. Parts of the Bay Area have held their value better than most of the entire country. While it may take longer to get the buyer and seller to agree to terms, transactions are happening, and with open minds on both sides, we are beginning to see more positive movement for all.