With the overdue push to preserve our environment, green building has come to the forefront.  Iris evaluates the choices for a  functional and green floor.  Elaine White

Ask An Expert—SJ Mercury News
By Iris Harrell

Question:
I’d like a green-friendly floor, but there are so many options that claim to be green!  Bamboo, cork, reclaimed wood – what should I select?
 
Answer:
Choosing new flooring material is highly influenced by the function or activity that occurs in the room. In a bathroom, where moisture occurs from bathing and showering, the flooring choices I recommend are typically ceramic, stone or porcelain tile, Marmoleum or Amtico. All of these low maintenance products can withstand more moisture than bamboo, cork or hardwood flooring and low maintenance is one part of the “green equation” (note: extra green points are obtained if the material is manufactured and shipped within 500 miles of your home). If you’re wondering, Marmoleum is green because it biodegrades over time and ceramic tile can degrade if broken up. Some ceramic or glass tiles have recycled content in them. As for Amtico, it is extremely durable and is often used in hospitals and high-traffic areas. It doesn’t biodegrade well, but its long life somewhat compensates for that. Amtico and Marmoleum come in sheet goods and various tile sizes that can be designed in interesting patterns. Amtico and Marmoleum are kinder on the joints than stone or ceramic if you are on your feet for long periods.
 
If you are reflooring a public area of your home and want the warmth of wood, bamboo is a great green choice. Prefinished bamboo can be installed as a “floating floor” system over a thin foam cushion. Standing on a floating floor is a little easier on your back. If you need to match an existing oak floor that is visible from the room you are reflooring, I would recommend selecting a wood species to match the other visible floor, as continuity of materials makes the home feel bigger.
 
In my own home, I just refinished a 15-year old floating hardwood floor, rather than tossing it into a landfill. The old floor was an engineered hardwood – the hardwood itself is less than ¼” thick with an attached, less expensive plywood substrate. Engineered flooring requires less forest devastation of slow-growing trees, and “reduce, re-use, recycle” is one of the main mantras of “being green.” By refinishing the existing flooring and staining it a more timeless color, I did not have to purchase new material and I avoided additional waste going into the landfill.
 
Purchasing reclaimed hardwood for flooring is another green practice in obtaining a new floor. Reclaimed floors are truly beautiful.
 
Cork flooring is “farmed” off the tree every 9 years and the cork oak tree can live for 200 – 500 years. Cork flooring is durable and resilient. Cork comes in many tile shapes or planks and can be installed over a concrete slab floor if you seal the concrete floor properly. You can also buy cork preinstalled on a plywood substrate and these boards interlock with each other like other floating floor systems. 
 
Be mindful that any floating floor system will expand and contract during the year. A 5/8” baseboard installed atop the floating floor, will hide the necessary expansion gap.
 
To see green flooring choices firsthand, visit Build it Green’s East Bay Green Home Tour on June 1st.  Additionally, you can visit Greenfair Silicon Valley at the San Jose Convention Center on June 7th and 8th.

Linda Lunsman, a veteran mortgage broker, reminds us that these are still turbulent times for the mortgage market but that there is a small (postage stamp sized, actually) opportunity for savings in the next couple of weeks.  Elaine White

Provided to you Exclusively By Linda Lunsman
Linda Lunsman
Princeton Capital
800 El Camino Real 3rd Floor
Menlo Park, CA 94025
Office: 650-566-5358
Fax: 408-335-1144
Email: lindalunsman@princetoncap.com
For the week of Apr 21, 2008 — Vol. 6, Issue 17  
Last Week in Review    “THERE IS NOTHING WRONG WITH CHANGE, AS LONG AS IT IS IN THE RIGHT DIRECTION.” ~ Winston Churchill. And there were some big changes indeed for Bonds and home loan rates last week - but not necessarily all in the “right direction”. For most of the week, Bond prices were pummeled lower, causing home loan rates to rise - and even after a Friday afternoon rally, home loan rates worsened by about .25% for the week overall.One silver lining…some of the abuse that Bonds took was at the hands of somewhat positive economic news. Remember that positive or strong economic news tends to benefit Stocks, which in turn can pull money out of Bonds - which causes Bond prices to worsen and home loan rates to rise. So when news hit of a far better than forecast Retail Sales Report and much better than expected earnings reports from giants like Google, the financial markets responded by flowing money over into Stocks, and right out of Bonds, causing home loan rates to rise.Also hurting Bonds was inflation chatter during speeches made by several Federal Reserve Presidents, who vocalized their concerns over the persistence of inflation in the current economy. Additionally, the Producer Price Index showed wholesale inflation to be climbing higher, thanks to record high oil prices and a seventeen-year high on food prices. Because inflation erodes the value of the fixed return provided by a Bond, the scent of inflation in the air always causes Bond prices to decline, and as a result, home loan rates will rise.Even though Bond prices ended the week lower than they began, it is still a good time to take advantage of historically lower home loan rates before rising inflation continues to push rates higher. If you, or a friend, family member, neighbor or coworker needs advice on the latest changes in the market, please feel free to get in touch.

ANOTHER KIND OF CHANGE IS COMING SOON, AS POSTAGE RATES WILL INCREASE ON MAY 12. BUT BELIEVE IT OR NOT…THE POSTAL SERVICE IS ACTUALLY OFFERING SOME PRICE REDUCTIONS TOO! GET THE WHOLE STORY - AND LEARN HOW YOU MIGHT SAVE SOME CHANGE - IN THIS WEEK’S MORTGAGE MARKET VIEW.
Forecast for the Week  
After last week’s barrage of economic news, the calendar will quiet down this coming week. However, we will get a good look at the housing market via the Existing Home Sales Report on Wednesday, and the New Home Sales Report on Thursday - as well as a read on Durable Goods Orders.

What are those “durable goods” anyways? Simply put, they are items that are durable, or made to last longer than three years, such as cars, furniture, electronics, appliances, business equipment, games, cameras, etc. This report shows a good measure of consumer and business consumption and buying behavior, and depending on the health of the report, could bring some activity to the volatile financial markets.

As you can see in the chart below, Bond prices ended the week with a move higher from a “floor of support” at the 200-day Moving Average…but are now headed back towards an overhead “ceiling of resistance” which could stop their progress higher. Remember that when Bond prices move higher, home loan rates move lower…and vice versa. If the news of the coming week isn’t Bond-friendly enough to help them bash their way through the overhead ceiling, Bond prices and home loan rates may worsen once again.

Chart: Fannie Mae 5.5% Mortgage Bond (Friday Apr 18, 2008)
The Mortgage Market View… 

A PENNY FOR YOUR THOUGHTS

Starting May 12th, it’ll cost you one extra little penny to mail someone your thoughts. That’s right…the US Postal Service is getting ready to make some price changes, and the biggest change for most consumers will be a price increase for First Class stamps from 41c to 42c.

The news isn’t all bad, though. That’s because for the first time in the history of the US Postal Service, the new pricing structure will include online price reductions, rebates, commercial volume and contract prices, as well as several other new incentives. The heat must be on the USPS to be competitive in pricing, as according to Postmaster General John Potter: “These innovative pricing incentives will make our products more attractive to all shippers, especially small businesses. We’re pricing our products to sell in today’s competitive shipping market.”

The information below can help you plan for your postal expenses - and figure out a few ways that you can save - starting next month.

New Prices as of May 12

Consistent with The Postal Accountability and Enhancement Act, the average increase of the prices is at or below the rate of inflation as measured by the Consumer Price Index. Here’s what the new pricing will be:

First-Class Mail letter 1 oz. = 42c (current price = 41c)
First-Class Mail letter 2 oz. = 59c (current price = 58c)
Postcard = 27c (current price = 26c)
Certified Mail = $2.70 (current price = $2.65)
First-Class Mail International to Canada and Mexico 1 oz. = 72c (current price = 69c)
First-Class Mail International to all other countries 1 oz. = 94c (current price = 90c)

Ways to Save…

Forever Stamps — Last year, the US Postal Service introduced Forever Stamps… and this is your chance to reap the rewards! You can purchase Forever Stamps prior to May 12 at the lower 41c rate, and then use them even after the price change. Forever Stamps are widely available through Post Offices, Contract Postal Units, consignment locations, Automated Postage Centers, and The Postal Store®. To help meet increased demand before the price change, the US Postal Service plans to have 5 Billion Forever Stamps in stock. So you shouldn’t have any problems getting your hands on them.

In addition to Forever Stamps, the US Postal Service is introducing all new ways to help you save, including the following new incentives:

Express Mail — With the new “zone-based pricing system,” you’ll pay less when you send a letter to a nearby destination using Express Mail. You can also save 3 percent when you purchase Express Mail online or through a corporate account. Finally, additional price reductions are available if you ship quarterly minimums.

Priority Mail — The new pricing structure includes a provision to help you save an average of 3.5 percent when you use electronic postage or meet other requirements.

Parcel Select — Large- and medium-size shippers will receive pricing and volume incentives under the “last mile” delivery provision.

Parcel Return Service — A new weight-based pricing system will result in significant price reductions for the return shipping of lighter packages.

You can learn more about the new pricing structure at www.usps.com/prices, and you can purchase Forever Stamps at your local Post Office or online at The Postal Store®.
The Week’s Economic Indicator Calendar   
Remember, as a general rule, weaker than expected economic data is good for rates, while positive data causes rates to rise.

Economic Calendar for the Week of April 21 – April 25
Date ET Economic Report  For Estimate Actual Prior Impact
Wed. April 23 10:00 Existing Home Sales Mar 4.95M   5.03M Moderate
Wed. April 23 10:30 Crude Inventories 4/19 NA   -2356K Moderate
Thu. April 24 08:30 Durable Goods Orders Mar 0.1%   -1.7% Moderate
Thu. April 24 08:30 Jobless Claims (Initial) 4/19 375K   372K Moderate
Thu. April 24 10:00 New Home Sales Mar 585K   590K Moderate
Fri. April 25 10:00 Consumer Sentiment Index (UoM) Apr 64.2   63.2 Moderate 
The material contained in this newsletter has been prepared by an independent third-party provider. The content is provided for use by real estate, financial services and other professionals only and is not intended for consumer distribution. The material provided is for informational and educational purposes only and should not be construed as investment and/or mortgage advice. Although the material is deemed to be accurate and reliable, there is no guarantee it is not without errors.

In this week’s message to local agents, Rick talks about the strong buyer preference for homes which are “turnkey.” On the San Francisco Peninsula, we continue to see multiple offers on homes which are well priced and well prepared.  I recently closed a home sale on a Mountain View property where the home was sold in 5 days over the asking price while the home next door continues to sit on the market.  Preparation and pricing are the key.  Buyers respond to quality and value when they see them.  Elaine

 Coldwell Banker Weekly Market Watch
April 7-13

I read with interest this week an article entitled “Real Estate Agents Say Worst Has Past.”http://www.wkjk.com/script/headline_newsmanager_alt.php?id=661660&pagecontent=NationalNews&feed_id=59

The article reinforced much of what I’ve been saying over the last few weeks:  while the first quarter data says “no end in sight,” we are beginning to see major strides within the real estate market in harder-hit areas across the country. 

In fact, in the areas that were hardest hit over the last two years (i.e. parts of the East Bay and in Sonoma County), we are seeing a lot more activity, largely in part due to the increase in REOs.  In fact, Castro Valley this week is reporting that offers are becoming increasingly competitive and multiple offers are once again on the rise.  Nearby Walnut Creek reports that REO listings in Pittsburg and Antioch are getting multiple offers and our North Bay neighbor Petaluma reports that multiple offers are becoming the norm with the office reporting six multiple offers this week alone.  As you’ve heard me say in recent sales meetings, I am anxious to see the outlying markets have success, as they need to see increased sales activity before our local “fence-sitters” will gain more confidence.

All but two offices report increasing or steady activity, with nine offices noting a healthy increase.  In fact, Silicon Valley reported this week the highest amount of sales of condos and townhouses since June 2007.  And even more impressive is that they saw the most single family home sales since the first week of August 2005. 

In our more affluent markets like San Mateo County, San Francisco and Marin, we are definitely seeing a strong shift in activity.  Listings in prime Westside in Burlingame and San Mateo are still in demand and are selling quickly in the $1.7 million plus category.  Our Van Ness office reports a fluency in the $2 million plus range. Possibly the biggest challenge for these markets continues to be a lack of inventory.  San Mateo County and San Francisco are still in dire need of good, well-showing properties that will attract more buyers.  The buyers are out there – they are just waiting for that perfect home.

There are many buyers out there right now who are ready to act but are weary – believing the media hype that prices will go down.  We need to explain to these buyers the potential impact of waiting, including the probability of increased interest rates, increased competition and the ultimate sacrifice, losing a house that they love. 

My message to sellers is the same: remain competitive.  Many buyers are looking for the perfect combination of value and livability.  If the home doesn’t show well from the beginning, a large portion of buyers will move on to the next one that does.  I’ll close with a quote from the above-mentioned article:

“…Among those drawn by the lower prices and mortgage rates are Kristen Werner, a 30-year old attorney for an insurance company, and her 32-year-old husband James, who said they are now looking seriously for their first home after a lull of several years. A pre-approved mortgage and the fact that they don’t have a home to sell should smooth the process, and the volume of unsold homes where they are looking — on Long Island, in the New York suburbs — means they are more likely to find a house they want. But, in a caution for sellers, the Werners are coming in with expectations of a bargain.  

 ”We need something that’s in move-in condition — I’m not Martha Stewart and my husband’s not Bob Vila,” Kristen Werner said.”

Rick Turley
President, San Francisco/Peninsula
Coldwell Banker Residential Brokerage
tel 415.437.4505
rturley@cbnorcal.com

Trends in counter tops change as do most home features.  Granite, which used to be an very high end upgrade, has become more of a commodity item with off shore manufacturing and modular installation helping to lower the price.  Corian, which is also a pricey choice, is not a favorite with buyers.  In the article below, Iris addresses the practicality of various types of counters in keeping the kitchen clean and fuctional.  Elaine White

Ask An Expert—SJ Mercury News

By Iris Harrell

Q: I’ve heard lots of different opinions about the cleanliness of kitchen countertops and their life span. So, given proper cleaning, which is the most hygienic that will last the longest?

A: Almost all countertops I have ever seen in kitchens, except for wooden chopping blocks, have eternally long life spans. Formica laminate is going to last as long as you are willing to live with it. The only failure of that counter occurs when a hot pot has scorched it or an undermounted sink with a little strip of Formica is used to face the circumference of the sink counter, which was a 50’s idea that should have never been allowed in the first place. Tile counters also have an incredibly long lifespan. There may be cracks in the tile and 100 stains in the grout, but the tile will last as long as you are willing to live with it.

Proper cleaning for Formica and tile countertops commonly used in kitchens varies. Laminate counters should not have an abrasive cleaner used. Tile grout needs some kind of bleaching product to keep the grout clean enough to feel comfortable enough to use it.

Granite slabs are easier to keep clean, as there are no grout lines. Granite however needs to be resealed every few years, depending on how much heavy duty use it gets. Granite can have hot pots on it without hurting the surface. Greener choices for SLAB LIKE counters are Silestone and Caesarstone. These products are made from quartz, have the advantages of granite, but Silestone in particular never needs to be sealed and has a microban in it that protects the homeowner against the possibility of germs. These two products are fabricated by stone slab fabricators.

The most hygienic counter is probably stainless steel, which is why so many commercial kitchens have this as their choice. It is probably one of the most expensive counter products you can buy and lasts forever.

The counter that requires the most diligence in cleaning is butcher block. The chances of someone cutting raw meat on it or not cleaning dirt that has been absorbed into the counter is very high. Butcher block has lots of positives for the busy chef, but needs to be very carefully controlled and monitored in its usage. I prefer a separate movable chopping block for safety regarding cleanliness.

Corian® and similar plastic products have been widely used in kitchens and are seamless after installation. So keeping this counter clean is easy, however, hot pots cannot be placed on this type of counter. If Corian does inadvertently get scorched, it too can be repaired in place, although the “match” color dye lot may be a little off. Corian sinks installed with Corian counters eliminate any possibility of crevices where dirt may collect.

We have only discussed function here. Aesthetics also need to be considered in your choice of countertops, as they are a very strong visible element in your kitchen. Choose a counter you can live with for a long time, cleans easily, and one you would love to look at and work on every day for many years to come. It will probably be a very long time before your counter gets changed!

In meeting first time parents-to-be, I find that they are unaware of all of the changes in their lifestyle which must occur to keep their child safe.  There are the obvious issues to be addressed like ponds and swimming pools  but Iris talks about some of the more subtle changes that can make life better for the whole family.  Elaine

A new baby in the family can cause a great deal of anxiety for expectant parents, especially when it comes to home space issues and safety. Most times, moving is not an option so changes to the existing house must be made—and usually in a relatively short period of time.

Below are some tips gathered from what we have quickly done for other clients in this situation:
1. Temporarily convert a large master bedroom walk-in closet into the baby’s sleeping quarters. A pocket door allows the baby’s new quarters to be dark and quiet when needed, but still close enough for you to know when the baby needs you. While the far away guest room may seem like an option, it needs to be available for the off-duty parent to sleep without hearing the baby cry.
2. The family room and kitchen become the heart of activity even more when baby arrives. For safety, consider semi-permanently closing off an old fireplace by capping the chimney, sealing the masonry, checking the step flashing and then sheet rocking over the fireplace mouth so the baby cannot crawl into it. If the hearth is raised, consider taking it back down to floor level or having a wood cover built over it that can be removed later should the house be sold or should the baby-safety issue fade as the child gets older.
3. If and when you find a few adult hours together, you may not want to be amid a floor covered in children’s toys, blankets, etc. so built-ins for the family room are a popular option. Additionally, you may even want to have guests over occasionally, so a place to put the many things away quickly is important.
4. Converting an exterior door into a window in a bedroom that is to become the baby’s room has often been a request. This is so the parents can sleep well, not worrying about someone breaking into that room or it being extremely drafty.
5. Removing the sliding glass door on the tub and installing a shower curtain is a common alteration in bathrooms. Bathing is a frequent and often lengthy activity when rubber duckies are part of the bathing scene!
6. The laundry room will be in perpetual use, so make sure you have a strong long-lasting washer and dryer, as well as a counter area for folding and sorting if at all possible. This counter or folding table can sometimes double as the diaper changing area as well.
7. If you have old carpet where baby will be, it’s strongly advised that you get new carpet that is safe in toxicity with no out-gassing.
8. If you are in a multi-story house, stairs, railings and landings are big safety issues. Clear, hard plastic that is sturdily attached to the railing, and a baby gate that is impenetrable are the keys to reducing stress about falls.
9. Finish materials need to be all low- or no-VOC. This includes paints, stains, sealers, glues and carpeting.

Finally, count on the baby arriving earlier than you had planned. It always happens that way when you need to get the house ready!

Iris Harrell

At a recent open house in Menlo Park’s Willows neighborhood, I found many visitors (generally neighbors) suggesting that the price would have been higher a year ago.  In fact, this area of Menlo Park has not experienced lower prices.  The home I was marketing had been priced based upon the comparable sales.  It was held open on Saturday and Sunday before being toured by the real estate agents. There were approximately 80 groups of people who attended the open houses that weekend with about 6 couples coming on both days.  The realtor’s tour was on Tuesday.  On Wednesday, there were three offers with the sale price going much higher than list.  There is a great deal of pent up demand and buyers in our marketplace appreciate quality homes which are not overpriced.   Elaine White

Coldwell Banker Weekly Market Watch

Week ending February 17, 2008

Economic news was sketchy again this week, with housing-related headlines continuing to point out the scary negatives.  Fortunately, we continue to see a surprising amount of interest from buyers who are deciding to take the plunge.  Really, the deals that are out there are getting to be irresistible, and with mortgage rates starting to creep back up (though still at near historic lows) buyers are recognizing that now really just may be the best time to buy. 

Sales are increasing in all price ranges in many areas, and it is perhaps the passing of the economic stimulus package that is spurring these buyers into bringing their checkbooks with them when they’re looking at properties.  Buyers are also being properly educated by the real estate industry and doing their research – not just being scared by skewed headlines.  Now they’re jumping in while the deals are out there.  We are also starting to see homes that have been on the market for quite awhile starting to get multiple offers and selling.  First time buyers are also finding affordable, desirable homes in lower price ranges and through REO sales – and they’re buying them.  It is not uncommon now to see multiple offers on REO’s.

 In San Francisco, as in other parts of the Bay Area, the high-end market remains particularly strong with homes well over the $1 million mark in high demand.  The were 15 offers on a two-unit building in San Francisco Lake Street neighborhood, and popular homes in desirable neighborhoods are back to seeing buyers letters, agent interviews and selling prices “way over” the listing.  A Burlingame property had seven offers and sold for $125,000 over the listing price.  A San Mateo home sold for $3 million without even being put on the MLS.  Parts of the Peninsula keep seeing this phenomenon occurring, as are other areas.  It’s worth keeping in mind that many of these off-market sales aren’t included in sales figures collected and reported by the media.  Everything isn’t as bleak as some would have us believe.

 Open houses continue to be surprisingly busy in almost all areas, even during a traditionally slower holiday weekend.  We held more than 480 homes open last week and saw groups in the double digits in all price ranges viewing them.  A new listing in Novato had 30 groups through it, and multiple properties in Petaluma saw groups ranging in size from 25 to 65 in attendance.  Exceptional activity was also reported from Berkeley, Castro Valley, San Francisco, Redwood City, Danville, Walnut Creek and San Rafael.

Buyers and sellers who choose to succeed now have an unprecedented opportunity to do so.  In today’s market, Buyers and Sellers need their agent’s  professional guidance more than ever.

 Rick 

Maximizing the return on the sale of your home requires thought about updating consistent with the needs and wants of today’s buyers.  As with fashion, the features valued by today’s buyers change as time goes on.  The San Jose Mercury News in its feature article on Saturday, December 8th, explored "What buyers want and don’t want" and addressed some of the hot fashions of days gone by which have cooled for today’s buyer.  There are the obvious changes which relate to technical function like fuse boxes being replaced by circuit breakers.  The capacity of electrical panels has been increased over the years to cover the increased needs of modern homes.  A ranch style home in Menlo Park or Los Altos built in the 1950’s typically had about one-half of the capacity featured in homes built today.  The more subjective changes relate to colors that are in vogue, counter styles, space allocation and amenities.

A Menlo Park or Los Altos ranch style home, the most commonly built design in the 1950’s, had a large living room, formal dining room and no family room. Closets and bathrooms were small and bedrooms were large. Many of the homes also had oak hardwood floors covered with carpeting, the hardwood apparently  necessary to qualify the homes for FHA financing.  Today’s buyers love hardwood floors and updating often just requires removal of old carpet and recoating or refinishing the floors.   Hardwood floors, however, were not included in the many Eichler homes found in  the Silicon  Valley. In the 1960’s Joseph Eichler designed homes throughout California, many of which we see throughout the San Francisco Peninsula especially in  Palo Alto, Sunnyvale, Mountain View .   These homes were designed with very open floor plans, high ceilings and an orientation of  the living areas to the outdoors.   While the modern styling of Eichler homes does not appeal to some buyers, the open floorplan incorporating the living room, dining room and kitchen is perfect for buyers looking for the "great room" concept combining the living areas to maximize their use.  Eichler homes featured slab foundations which require special handling for hardwood floor updates but are commonly found in Eichers today.

While formal living rooms and dining rooms are disappearing in the average sized home, bathrooms are larger and there are more of them.  The bathroom as a luxurious space where one can relax is a popular concept.  This trend for luxury  often means a reallocation of space in an older home or a complete addition to be able to have a large enough space for achieving the desired impact. The buyer need for more bathrooms in a home is often satisfied by adding a full masterbedroom suite to a 2 bedroom, 1 bath home or to a 3 bedroom, 2 bath home. 

Luxury finishes are also the rage in the kitchen where more buyers are seeking high end appliances and granite countertops.  The demand for granite has made it a commodity item available in modular form or at the local Home Depot or Lowes stores.  These finishes can be combined with modular cabinets to upgrade an old kitchen at a substantial savings over more custom installations.  These updates to prepare a home to go on the market can offer a seller a great return on the investment. 

To make the best return on your investment dollar, it is important to choose neutral colors.  While that cobalt blue tile might have been the rage in the 1980’s, it looks dated in 2007.  White cabinets and tile, however, are timeless and should be considered if one has an eye to reselling.  Natural stone is also timeless, but again neutral tones please the most people.

Housing trends like those in fashion are cyclical.  It seems unlikely, however, that we will see the return of small closets and bathrooms.  Homes change in response to how our living habits and values change.  Certainly, the greatest trend in our current thinking and in our current building is "green construction" which will provide us with the newest  "cool" home fashions for the future. Hopefully, green building will be a fad that sticks, like that basic black dress!,

We are in the traditionally "quiet" time of year.  Yet, I had three offers on my San Carlos listing after eleven days on the market.  Savy buyers are still at the house as soon as it comes on the market.  My San Carlos listing could not be seen before the Sunday open house and was swamped even though the realtors had not yet seen the house.  Preparation and proper pricing are still the key to a great result.  Elaine

Week of December 2, 2007

How many different economic reports came out this week?  It seems that every day, another dozen or so indices, studies, surveys and reports about the housing industry make the headlines.  Perhaps too many, as we are seeing many buyers finally decide not to listen to all of these numbers, and are instead getting financing approved, making offers, signing contracts and moving into the home of their dreams. 

We traditionally experience a slow down during the holidays, this time of year many home sellers are focused on selling their home before the New Year.  There is a lot of negotiating still going on out there and buyer activity continues to increase with a sense of urgency that may be attributable to a holiday decrease in inventory in many areas, and the desire to buy or sell before the end of the year. 

Many areas of the Peninsula continue to suffer from a shortage of inventory.  Burlingame and Woodside/Portola Valley also report an increase of off market listings – homes selling before they ever hit the MLS - especially in the $2-4 million range.  There’s a different story in northern San Mateo County, where more REO properties and short sales are showing up. In San Francisco, well-priced listings continue to garner multiple offers, and though our offices report a lot of negotiating and counteroffers, activity is robust for many properties.  Several offices have reported an increase in escrows falling out, and one office reported each fall out was quickly replaced with a new sale. 

More than 420 homes were held open last week, and most areas reported a high level of activity and interest.  While there may be fewer showings around the holidays, a  higher percentage of Buyers looking at property in December are more motivated and serious about buying than at other times of the year.  It’s not the best time to “test the market” for a Seller, but for those homeowners who are taking savvy professional advice on pricing and condition, they may have a better opportunity with fewer homes to compete with.

Rick Turley
President, San Francisco/Peninsula
Coldwell Banker Residential Brokerage

As a baby boomer who moved from my two story home in Vintage Oaks to a ranch style home in West Menlo Park,  I can really see the value in building which allows for "Aging in Place."  Iris offers ways to help 60 be the new 40.  Elaine

Most of us grow to love our homes. Time and age change our comfort levels and physical abilities, but that doesn’t mean we must abandon our homes. It simply means we need to ‘enlighten’ our homes to new realities through modification and remodeling projects.

“There are so many simple ways to adjust the home so that it is easier to live in as you grow older,” said Zakian. “It’s smart to prepare for the changes ahead so that you are always feeling content and free in your home.”

Iris Harrell

Last week, the Federal Reserve lowered the federal funds rate by one quarter point bringing the rate to 4.5%.  The Prime Rate is now down to 7.5% which benefits those with business loans, home equity lines and consumer loans.  By comparison, the 30 year fixed home mortgage rate bounced around last week before settling at about where it was when the week started.  Federal Reserve Governor Frederic Mishkin has said that the rate cut was aimed at reducing econmic risks and that the rate cut can be taken back if necessary to prevent inflation.  Hopefully, the rate cut will work as intended to stabilize the shaky markets.  Elaine

Weekly Market Watch

Week of October 28, 2007

These are actual news headlines culled from various sources over the past two weeks: “Does the Drop in Housing Prices Mean It’s Time to Buy?”, “Buying a House Now isn’t a Bad Choice for Everyone,”  “Housing Economists Expect Market Turnaround to Begin in 2008,” “Investors Find Silver Lining in Real Estate Market,” and my personal favorite from the San Jose Mercury News Real Estate Blog, “For Avid House Hunters, the Season Starts Today.”

Motivated buyers are buying and motivated sellers are selling.  And all before the Feds made their rate cut on Halloween!  Attractive Berkeley and Oakland Hills properties are still getting multiple offers.  A $900,000+ listing on the Alamo/Walnut Creek border sold in one day.  A San Ramon listing priced at $1,425,000 sold in less than one week. Greenbrae is reporting solid activity, some multiple offer situations and steady movement of higher end properties.  Pending sales are on the increase in Pleasanton and well-priced Santa Rosa homes are seeing multiple offer situations.  Burlingame, Half Moon Bay and Menlo Park are reporting exceptional open house activity. Burlingame noted that homes in solid middle price points were experiencing anywhere from 20 to 75 groups of visitors.  Palo Alto is noting an “all time low of – 29 listings on MLS in Palo Alto.” San Francisco reports that supply and demand are “quite balanced.”  It’s important for our hesitant buyers to be reminded that the upper end of the market remains strong.  This week alone, our City offices reported a home closed at over $15M, and two new sales at $5M, while the Woodside office reported a new sale at $7+M.  

More than 565 homes were held open last week, and sales activity was reportedly increasing or steady by a vast majority of the offices.
 
It’s getting busy out there!  Our patchwork quilt of a real estate market continues to be sewn together from dozens of micro-markets, but many of them are seeing marked improvement in what is a traditionally slower time of year.  Even the headlines are beginning to agree that buyers are well-advised to lock in a lower home price now while the variety remains, grab a low mortgage interest rate from a reputable lender and establish roots in their neighborhood of choice.  Now may be the best time to buy.
 
Rick Turley
President, San Francisco/Peninsula
Coldwell Banker Residential Brokerage
tel 415.437.4505
rturley@cbnorcal.com