Keep your head on a swivel.  Football coaches tell that to their linebackers, field commanders tell that to their troops.  In this market, it pays to do the same whether you're a buyer or seller.  Here's why.

The lending market continues to be, mildly put, fluid.  Banks are changing rules and requirements so quickly that you need to be in constant touch with your loan agent.  With the first time buyer programs, requests for extra documentation at the last minute are not uncommon.  Deals are taking longer to close, putting rate locks in danger of expiring (as rates rise!).   Second appraisals are being ordered in "declining market" areas like my latest sale in of all places, Sonoma.

What's been your experience?

Best,

js

It was bound to happen.  And it's happening at the beginning of Summer.  Unsold home inventories are growing across the board. 

Not so dramatic that panic ensues, but enough that sellers should be mindful (as always) of picking the right price when going to market.  Be more invested in things that will help you sell faster and remove ambiquity from the transaction.  Clean your place up, ditch that ratty floor mat in the entry way, get everything you possibly can into storage or at the very least into the garage.  Get your pest control and property inspections done ahead of time so you know the true condition of the home.

Why? 

Sales stats (MLSListings) back to June of 2007 show a steady increase in housing inventory in San Mateo County along with a slight drop off in sales volume.  Days on market are also slightly increasing.

This is not to say that the cute three bedroom place in White Oaks won't get multiple offers or the well designed custom home with a view in the Emerald Hills price at $1.6 million won't find a buyer.  Just continue to be mindful of the detals.  If you're a seller, pick the right price and go a little overboard in preparing your home for the market.  If you are a buyer, don't expect bargains if you want an awesome place, and, if you don't want to save a few bucks on the way in, be open to that house with the slightly odd floorplan that could be cured by a creative remodel.

Good hunting.

js

So, what is the most frequently asked question of a Realtor?  Without a doubt it's "How's the market?".  And the usual answer is...well..."unusual".

The answer is HEAVILY dependent on the area you are speaking of.  REO properties in areas like East Palo Alto are getting a ton of attention, primarily because of their heavily discounted price points (buy a house for $250,000 on the Peninsula...what....did I hear you correctly?).  On the other hand, inventory in San Carlos has blossomed to over 60 listings, double what we had in the spring of '07.  Then reconcile that with the idea that I am representing clients in the purchase of a San Carlos home and there are multiple offers!

Like politics, all real estate is local.

Be good,

js

ps..enjoy this pic of scenary in the Pulgas Ridge area west of San Carlos.

Three Random thoughts...

 
Money is out there to lend but it’s not as easy to get.  Take special care in preparing  your financial picture for a purchase and, on the flip side, be diligent in assessing offer for your home such that the buyers can prove their own ability to get the loan they need

The national public psychology is that this is a ferocious buyers market.  True to a great extent though there are pockets, including parts of the Bay Area, that have shown some immunity.  As always, be very careful about pricing your home if you are going to market.  It's surprising what small increments in price are doing to keep some buyers on the sideline.

            
 The little fish are biting.  In outlying areas (Central Valley, Alameda County etc.) buying activity is picking up ever so slightly.  If you are an investor, now is the time to be looking as a bottom of sorts appears to be developing (IMHO).

 Be good,

js

Just a quick note about an interesting anomoly in our Peninsula market.  Foster City, home to some 28,000 residents, has been running along with only 12-15 single family home listings in the ENTIRE town for some time now.  Contrast that with San Carlos, with a similar population, where there are 50 or so homes on the market.
I have a new listing coming up shortly (4/2 on the narrow water) and it's made pricing a real challenge.   

Would be interested in your thoughts about Foster City and why the market is as it is....please write!

Best,

js

Yes, the market has changed.  Whoa nelly has it changed. 

A year ago it was multiple offers this and no contingencies that.  With the rare exception, that ain't happen' any more.  The mid-Peninsula is still holding up well (San Carlos, Burlingame, Palo Alto are good examples) and long term the Peninsula overall will fare well.

But, things have changed...

*  No longer can an overpriced listing hope for the market to catch up.
*  No longer can an odd floorplan, bad decorating, bad street, non-updated kitchen be overlooked
*  No longer can we assume that getting a loan is the same thing as last year.

OK, the sky isn't falling but you need to do your homework even more completely and work with a smart, full time realtor who understands these things.

Here's an example.  You hear a lot about foreclosures these days.  Are those deals?  How do you get one?  I happen to be involved in that market at the moment courtesy of a relationship with Wells Fargo PASREO.  My listing roster includes a duplex in Oakland and single family homes in the East Bay and East Palo Alto.  These are decidely different animals than buying a White Oaks (San Carlos) rancher or a Professorville (Palo Alto) contemporary.  Two years ago this kind of housing inventory wasn't even on people's minds.

Now it is.

Buying or selling, stay sharp and get some help.  These are interesting times.

Be good,

John

A new listing I have coming up in Foster City (4bd/2ba on the narrow water) is in crucial need of a new tar & gravel roof.  My client agreed to let me get three bids.  I immediately contacted three reputable firms (Hallmark, Izmirian and A& who dutifully produced estimates for the job.

Two points to make here. 

First, always, always try to get three bids.  You need the information and anything that confirms, or contrasts, allows you the opportunity to make a smart, informed decision.  And the lowest bid isn't necessarily the best, especially if they can't get to the job for a of couple months past your deadline!

Second, call your real estate professional for their opinion.  We're not roofing experts but depending on your situation, we may be able to help you understand how the decision you make (wood shingle vs. asphalt, tile vs. shingle, etc.) will effect resale value near or long term.

Three's a charm.  Invest the time.

Best,

js

REO's (Real Esate Owned) are homes owned by financial institutions after foreclosing on the former owners.  Are we seeing those on the Peninsula?  Yep, and we may see more.  Part of my listing inventory is made up of just such properties.

The real estate and mortgage market jitters are all around us and make no mistake, you don't have to look far.  East Palo Alto, parts of San Mateo and northern San Mateo county are familiar grounds for these real world examples of the excesses in home ownership avarice.  And until all the allied segments of the real estate market work things out, there will be pain to go around.

How long will that last?  At the most recent meeting of the San Jose Real Estate Investors Club (SJREI), a gentleman who "cries" the auctions for San Mateo County said that of the 30 most recent auctions he handled on a single day, only two of them sold.  The rest went back to the lenders, soon to be processed as REO sales by agents like me.

But you know what, the market will come back.  Cycles happen all the time and if you saw the data from back into the 70's, you'd see a stair step progression of appreciation not seen in many other places.

Everyone's situation is unique, but if you're a Peninsula homeowner, more than likely you'll be fine, especially if you don't have to sell.  If you are an investor, you should be getting ready to hunt.  REO's are good game.