South County Real Estate Today

Buyers Tax Credit Extended!

Gretchen Merrick — Fri, 06 Nov 2009 21:09:25 +0000

President Obama is expected to sign the congress-passed bill extending and expanding the Federal Tax Credit for First-time Home Buyers. The tax credit will be extended through April 30, 2010, with a 60-day extension if a binding contract is in place prior to the deadline. First-time home buyers will continue to receive a tax credit of up to $8,000, while existing homeowners who are purchasing a new primary residence will receive a reduced credit of up to $6,500. Existing homeowners will be eligible for the $6,500 if they have lived in their current residences for at least five years. The bill also will increase the qualifying income limits from $75,000 for single tax filers and $150,000 for joint filers, to $125,000 and $225,000, respectively. The purchase price of the home is capped at $800,000.

The changes, among other things, are aimed at encouraging so-called “move-up buyers” to sell their first homes and buy a larger or more expensive place. Under additional provisions in the bill, taxpayers can claim the credit on purchases completed in 2010 on their 2009 income tax returns. The bill maintains the provision that home buyers do not have to repay the credit provided the home remains their primary residence for 36 months after purchase, and waives this requirement for active duty military personnel who move due to a military order.

Keeping Your Home

Gretchen Merrick — Sun, 11 Oct 2009 21:57:27 +0000

Many homeowners are faced with dire decisions today regarding keeping their homes through these difficult economic times. There are several options available to financially troubled homeowners who wish to keep their homes. According to Mark L. Strombotne, who practices real estate law in the Bay Area, these options include:

1. Refinance - Federal Homeowner Affordability Refinance Program

Fannie Mae or Freddie Mac loans
Owner occupied 1-4 units, primary residence
Amount owed on 1st mortgage does not exceed 125% of fair market value
Not delinquent on mortgage payments
Acceptable mortgage history
Ability to pay

2. Loan Modification - Federal Homeowner Affordability and Stability Plan

Program will reduce interest rate or lengthen loan term to lower debt-to-income ratio to 31% for 5 years. A participating lender may elect to reduce the interest rate on a loan down to a 2% minimum. If the borrower’s debt-to-income ratio is still above 31%, the next step for the lender is to increase the amortization period up to 40 years. If the borrower’s debt-to-income ratio is still more than 31% then the lender must forbear (defer) principal. A lender may always elect to forgive principal rather than lower the interest rate, extend the amortization, or forbear on the principal balance. However, loan servicers are not required to offer permanent principal reducions.

Owner occupied 1-4 units, primary residence
Applies to 1st deed of trust
Monthly PITI is more than 31% of monthly gross income
Borrower has experienced significant decline in income and can’t pay
Loan originated before 1/1/2009
Loan is less than $729,000
Loan is held by a participating lender

3. Forbearance Agreement - must be in writing and signed by lender

4. Rent the home

5. Equity Share

6. Bankruptcy - Chapter 13 (reorganization plan)

26 Million Underwater Homeowners

Gretchen Merrick — Tue, 06 Oct 2009 20:51:59 +0000

Mark L. Strombotne, who practices real estate law in San Jose, spoke at our weekly office meeting this morning. Mr. Strombotne gave us some very insightful, up-to-the-minute information on strategies for financially troubled homeowners. He stated that nearly half of the nation’s 52 million mortgage borrowers will have negative equity by the end of the first quarter of 2011, up from the 14 million at the end of this year’s first quarter, according to estimates in an August 5, 2009 report by Deutsche Bank.

With so many borrowers underwater - or owing more on their home than it’s worth - the risk is high that they’ll default and their homes will go into foreclosure. Moody’s Economy.com estimates that 17.5 million mortgage borrowers will be underwater by early 2010.

What’s Happening to Sales Prices in South County?

Gretchen Merrick — Mon, 28 Sep 2009 23:04:07 +0000

What’s been the trend in sales prices for south Santa Clara County real estate? I’ll break it down by city looking at detached single family residences:

Morgan Hill median Sold Prices, down 31% August ‘08 vs. August ‘09:

Gilroy median Sold Prices August ‘08 vs. August ‘09 down 9%:

San Martin median Sold Prices, down 58% August ‘08 vs. August ‘09:

Taste of Morgan Hill Event This Weekend!

Gretchen Merrick — Wed, 23 Sep 2009 20:43:43 +0000

Mosey on down to Morgan Hill’s charming downtown to experience the annual Taste of Morgan Hill Festival this weekend, September 26 - 27, 2009. The Chamber of Commerce organizes an excellent array of enticing activities and nibbles that draw people back year after year.

The expected 40,000 to 50,000 visitors will get to partake in:

Fine arts and quality crafts
Delicious food from local restaurants
Award-winning wine and microbrew from local wineries and breweries
Fun rides and entertainment
Custom and Classic Car Show
Quilt Show in the Community Center

All of the above including three food courts, two live music stages and a great Kid Zone with rides, crafts and children’s entertainment. What is holding you back?!

The Taste of Morgan Hill is from 10 a.m. to 6 p.m. this Saturday and Sunday. Find the fun downtown on Monterey Road between Main Avenue and Dunne Avenue.

How South Santa Clara County Schools Performed

Gretchen Merrick — Tue, 22 Sep 2009 19:31:32 +0000

2009 Academic Performance Index (API) scores are now available. How did the Morgan Hill Unified and Gilroy Unified School Districts perform?

MORGAN HILL UNIFIED

Elementary School

Barrett 801
Burnett 723
Charter School 881
El Toro 763
Jackson 794
Los Paseos 808
Nordstrom 871
P.A.Walsh 731
Paradise Valley 870
San Martin/Gwinn 768

Junior high school

Britton 755
Martin Murphy 743

High school

Sobrato 770
Live Oak 719
Central Continuation 556

GILROY UNIFIED

Elementary School

Antonio Del Buono 767
El Roble 767
Eliot 780
Glen View 757
Las Animas 814
Luigi Aprea 857
Rod Kelly 766
Rucker 785

Middle school

Brownell 751
Solorsano 810
South Valley 738

High school

Gilroy High Not Available
Gilroy Early College Acad. 894
MACSA El Portal Leadership Academy 520
Mt. Madonna 531

Above information taken from the San Jose Mercury News 9/16/2009.

South County Real Estate Sales Week of September 14 - 20, 2009

Gretchen Merrick — Tue, 22 Sep 2009 01:05:57 +0000

Sales remained steady in the south Santa Clara County towns of Morgan Hill, San Martin and Gilroy during the week of September 14 through September 20. There were 33 residences that went from active to pending status as compared to the previous week’s 31. This is down from the typical number of sales this summer when weekly sales numbered in the 40s. Of all the sales this past week, 29 were single family homes and 4 were townhouses/condominiums.

The highest priced listing sold last week was 1026 Llagas Road in Morgan Hill, a 4,893 s.f. bank-owned home on a 90,604 s.f. lot priced at $899,000. This home had been on the market for 44 days.

The lowest priced listing sold last week was also a bank-owned condo at 7598 Monterey Street in Gilroy, a one bedroom/one bathroom priced at $78,900. This 3 year old property had been on the market for 54 days.

Seventy-three percent of the sales this week were priced under $500,000 and only 6% were above $800,000.

Of these sales, the list price ranges were:

Less than $200,000 = 5 sales (15% of total)

$200,000 - $500,000 = 19 sales (58% of total)

$500,000 - $800,000 = 7 sales (21% of total)

$800,000 - $1,200,000 = 2 sale (6% of total)

As of September 20, 2009, there are 287 residential (single family homes and condos) listings active on the market in Morgan Hill, San Martin and Gilroy. There are currently 378 pending residential listings. Therefore, 57% of the total listings are pending under contract as of this date. However, many of the pendings are short sales and therefore take a long time to close. This keeps our pending percentage up artificially high.

Only 15 residential real estate listings closed escrow during the past week in the south county towns of Morgan Hill, San Martin and Gilroy. If homes continued to sell at this rate it would take 19 weeks to sell all south county listings. Therefore, as of this past week, we have 4.8 months supply of inventory.

Tune in next week for an update on the number of sales in South Santa Clara County!

South County Real Estate Sales Week of September 9 - 13, 2009

Gretchen Merrick — Tue, 15 Sep 2009 00:57:54 +0000

Real estate sales numbered 31 in the south Santa Clara County towns of Morgan Hill, San Martin and Gilroy during the week of September 7th through 13th. There were 31 residences that went from active to pending status and the majority of these sales were in the low price ranges. Of all the sales this past week, 26 were single family homes and 5 condos a townhouses/condominiums. The highest priced listing sold last week was 1955 Killarney Court in the Eagle Ridge community Gilroy, a 4729 s.f. home on a 14,195 s.f. lot priced at $999,000. The lowest priced listing sold last week was at 1221 Juniper Drive #E in Gilroy, a 864 s.f. regular sale condo priced at $125,000. A whopping 84 percent of the sales this week were priced under $500,000 and only 3% were above $800,000.

Of these sales, the list price ranges were:

Less than $200,000 = 5 sales (16% of total)

$200,000 - $500,000 = 21 sales (68% of total)

$500,000 - $800,000 = 4 sales (13% of total)

$800,000 - $1,200,000 = 1 sale (3% of total)

As of September 13, 2009, there are 289 residential (single family homes and condos) listings active on the market in Morgan Hill, San Martin and Gilroy. There are currently 376 pending residential listings. Therefore, 57% of the total listings are pending under contract as of this date. However, many of the pendings are short sales and therefore take a long time to close. This keeps our pending percentage up artificially high.

Thirteen residential real estate listings closed escrow during the past week in the south county towns of Morgan Hill, San Martin and Gilroy. If homes continued to sell at this rate it would take 22.2 weeks to sell all south county listings. Therefore, as of this past week, we have 5.5 months supply of inventory.

Tune in next week for an update on the number of sales in South Santa Clara County!

South County Real Estate Sales Week of August 24 - 30, 2009

Gretchen Merrick — Thu, 03 Sep 2009 15:56:10 +0000

Sales held steady this past week in the south Santa Clara County towns of Morgan Hill, San Martin and Gilroy. Last week there were 32 residences that went from active to pending status as compared to the previous week’s 33. Of all the sales this past week, 31 were single family homes and 1 was a condominium. The highest priced listing sold last week was 10748 Green Valley in Gilroy, a 3971 s.f. home on a 2.5 acres priced at $1,299,000. It had been on the market for 128 days. The lowest priced residence sold last week was a condo in Gilroy at 1221 Juniper Drive #E, a 864 s.f. home priced at $125,000. Only 50 percent of the sales this week were priced under $500,000 and 9% were above $800,000.

Of these sales, the list price ranges were:

Less than $200,000 = 6 sales (19% of total)

$200,000 - $500,000 = 10 sales (31% of total)

$500,000 - $800,000 = 13 sales (41% of total)

$800,000 - $1,200,000 = 2 sales (6% of total)

$1,200,000 - $2,000,000 = 1 sale (3% of total)

As of August 30, 2009, there are 282 residential (single family homes and condos) listings active on the market in Morgan Hill, San Martin and Gilroy. There are currently 367 pending residential listings. Therefore, 57% of the total listings are pending under contract as of this date. However, many of the pendings are short sales and therefore take a long time to close. This keeps our pending percentage up artificially high.

Twenty-four residential real estate listings closed escrow during the past week in the south county towns of Morgan Hill, San Martin and Gilroy. If homes continued to sell at this rate it would take 11.7 weeks to sell all south county listings. Therefore, as of this past week, we have 3 months supply of inventory.

Tune in next week for an update on the number of sales in South Santa Clara County!

South County Real Estate Sales Week of August 17 - 23, 2009

Gretchen Merrick — Tue, 25 Aug 2009 05:07:09 +0000

Real estate sales numbered 33 in the south Santa Clara County towns of Morgan Hill, San Martin and Gilroy during the week of August 17 through August 23. There were 33 residences that went from active to pending status. Of all the sales this past week, 32 were single family homes and 1 was a townhouses/condominiums. The highest priced listing sold last week was my listing at 1845 Silverwings Court in Morgan Hill, a 3200 s.f. home on a 15,246 s.f. lot priced at $1,025,000. This short sale home sold quickly in 24 days. The lowest priced listing sold last week was a home at 256 2nd Street in Gilroy, a 842 s.f. on 2100 s.f. lot priced at $134,500. Fifty-eight percent of the sales this week were priced under $500,000 and 9% were above $800,000.

Of these sales, the list price ranges were:

Less than $200,000 = 3 sales (9% of total)

$200,000 - $500,000 = 16 sales (49% of total)

$500,000 - $800,000 = 11 sales (33% of total)

$800,000 - $1,200,000 = 3 sales (9% of total)

As of August 23, 2009, there are 291 residential (single family homes and condos) listings active on the market in Morgan Hill, San Martin and Gilroy. There are currently 368 pending residential listings. Therefore, 56% of the total listings are pending under contract as of this date. However, many of the pendings are short sales and therefore take a long time to close. This keeps our pending percentage up artificially high.

Twenty-four residential real estate listings closed escrow during the past week in the south county towns of Morgan Hill, San Martin and Gilroy. If homes continued to sell at this rate it would take 12.1 weeks to sell all south county listings. Therefore, as of this past week, we have 3 months supply of inventory.

Tune in next week for an update on the number of sales in South Santa Clara County!