Here’s what I found for Morgan Hill:  Morgan Hill’s average home sale price peaked in September, 2006 at $1,091,144.  The average sale price for the year of 2006 was $945,240.  The average sold home price in 2007 didn’t dip too drastically, but did fall 5% to $901,582.  Our most recent data for 2008 through the third quarter shows an average sale price of $767,900.

For Morgan Hill, that is a total drop in average home sale prices from the year of 2006 to the end of the third quarter in 2008 of 19%.

And for Gilroy, the statistics look a little gloomier:  Gilroy’s average home sale price peaked in the year 2006 with an overall average sale price for single family homes of $800,620 for that year.  The average sale price for a Gilroy home in 2007 barely moved from the previous year and was $796,676.  But through the third quarter of this year, the average sale price for 2008 is $565,278.

For Gilroy, that is a total drop in average home sale prices from the year of 2006 to the end of the third quarter in 2008 of 30%.

Gilroy has been particularly hard hit with foreclosures and short sales and those “distressed” listings seem to be what is selling there, so of course, that will drag down the average sale price for the city.  If you live in Gilroy and you want to know how much your home may be worth now, don’t just automatically take 30% off what you think your house was worth in 2006.  Each house is still valued individually and there are many factors that make up its worth.  Call me for a thorough, in-depth market analysis if you are considering selling your home.

QUICK UPDATE:

The units sold in October 2008 v. October 2007 were up 57%. Most of that activity happened in homes under $500k, short sales and REO (Real Estate Owned by the bank after foreclosure or how you would want to call it “Real estate Opportunity”) In addition, the 1 million plus range seems to be moving better than the deep-freeze we were in from October 10 to the end of October. During the last 5 weeks buyers are buying 1 million dollar plus homes at a faster rate than in September - October. It’s a great opportunity to upgrade from smaller homes which lost relatively less to larger, more expensive home.

WHAT IT TAKES TO SELL IN THIS MARKET:

Price and condition of the home become even more critical than in the past. Homes that are still selling are either priced more aggressively or upgraded and in good Condition. The homes that are priced well and remodeled are attracting the most attention and getting sold faster.

Of course location is of utmost importance. Being in a good school area improves the saleability of the house immensely.

WHO IS BUYING TODAY?

Relocation Folks; First Time Homebuyers; Investors in anticipation for appreciation for under 400K market; Move-up Buyers making a lateral move; Folks that have been sitting on the sidelines for a few years; Folks at all price points that have been pushed out of the market by multiple offers over the last 4-5 years

Investors:

If you are planning to buy a short sale, check with your real estate lawyer. There are too many law suits going around due to innocent mistakes or not knowing the laws and regulations.

QUICK RATE UPDATE: please note, the actual rate that you can get depends on your credit history and down payment amount.

30 Year Conventional 6.000% @ 0 pts up to $417,000

30 Yr Agency Jumbo 6.375% @ 0 pts up to $729,750

5/1 ARM Super Jumbo 6.125% @ 0 pts up to $4M

One place where I have a captured audience is my morning exercise boot camp class.  Real estate topics often come up there and I’ve been able to educate my fellow boot campers on short sales, foreclosures, loan modifications, as well as some of the screaming good deals that are on the market right now.  I try not to bore them too much or make any of them run the other way when they see me coming.  As a matter of fact, much of the time I’m gulping for air and can’t speak because I need that oxygen to just keep my lungs from exploding!

We’re a small group of women and have gotten to know each other in the wee hours of the morning as we do our push-ups, squats and lunges.  I really can’t think of a better way to start the day than boot camp.  Our boot camp is put on by a small company, AlaVie, that hosts boot camps in several Bay Area locations.  For me, exercising outside in the fresh air is the way to go.  I find going to the gym claustrophobic after becoming a boot camp regular.

So don’t be afraid to ask me about the real estate market - and if I gasp for air, I’m either doing crunches or it may be because I find the topic so exciting!

 

1. Decide what you can afford. Generally, you can afford a home equal in value to between two and three times your gross income.

2. Develop your home wish list. Then, prioritize the features on your list.

3. Select where you want to live. Compile a list of three or four neighborhoods you’d like to live in, taking into account items such as schools, recreational facilities, area expansion plans, and safety.

4. Start saving. Do you have enough money saved to qualify for a mortgage and cover your down payment?  Ideally, you should have 20 percent of the purchase price saved as a down payment. Also, don’t forget to factor in closing costs. Closing costs — including taxes, attorney’s fee, and transfer fees — average between 2 and 7 percent of the home price.

5. Get your credit in order. Obtain a copy of your credit report to make sure it is accurate and to correct any errors immediately. A credit report provides a history of your credit, bad debts, and any late payments.
6. Determine your mortgage qualifications. How large of mortgage do you qualify for? Also, explore different loan options — such as 30-year or 15-year fixed mortgages or ARMs — and decide what’s best for you.

7. Get preapproved. Organize all the documentation a lender will need to preapprove you for a loan. You might need W-2 forms, copies of at least one pay stub, account numbers, and copies of two to four months of bank or credit union statements.

8. Weigh other sources of help with a down payment. Do you qualify for any special mortgage or down payment assistance programs? Check with your state and local government on down payment assistance programs for first-time buyers. Or, if you have an IRA account, you can use the money you’ve saved to buy your fist home without paying a penalty for early withdrawal.

9. Calculate the costs of homeownership. This should include property taxes, insurance, maintenance and utilities, and association fees, if applicable.

10. Contact a REALTOR®. Find an experienced REALTOR® who can help guide you through the process.

Of these sales, the list price ranges were:

$200,000 - $500,000 = 20 sales (69% of total)

$500,000 - $800,000 = 6 sales (21% of total)

$800,000 - $1,200,000 = 2 sales (7% of total)

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

As of November 11, 2008, there are 730 residential listings active on the market in the Morgan Hill, San Martin, Gilroy area, and 216 pending residential listings.  Therefore, 23% of the listings are pending under contract as of this date.  This percentage is down slightly from the past few months.

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

Filmmakers from around the world will discuss their short films of 30 minutes or less that will be shown at various locations throughout Morgan Hill including the Cinelux cinema and the Community Playhouse. The keynote speaker will be Terry Windell, a 1974 Live Oak High School graduate who went on to work on movies including “E.T.,” “Poltergeist,” and “Ghostbusters.” Student films will also showcase local high school talent.

For tickets and more information, click on the link: www.poppyjasperfilmfest.org

Beyond this, I always hope that the sellers and buyers can briefly meet at the property shortly before close of escrow.  I have attended many of these meetings with my clients and it is very advantageous for the buyers to hear all of the seller’s tips regarding the care of the home and the property.  Sellers like these meetings also because if they have a prize rose bush, for example, that needs special care, this is an opportunity to give the special instructions to the buyers.  Then I recommend that the sellers never return to the property just in case that rose bush is replaced with a built-on barbecue….

I always give my buyers the necessary utility and media numbers they need to get everything up and running right away.  But in addition to this it’s nice if the sellers can leave the following for the buyers of their property:

• Owner’s manuals and warranties for appliances left in the house.
• Garage door opener.
• All sets of house and mailbox keys.
• Code to the security alarm and phone number of the monitoring service if not discontinued.
• Any personal property that the seller and buyer agree on such as paint, spare tiles, etc. that the buyer may need in the future.

Of these sales, the list price ranges were:

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

$200,000 - $500,000 = 21 sales (70% of total)

$500,000 - $800,000 = 5 sales (17% of total)

$800,000 - $1,200,000 = 2 sales (7% of total)

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

As of November 4, 2008, there are 732 residential listings active on the market in the Morgan Hill, San Martin, Gilroy area, and 231 pending residential listings.  Therefore, 24% of the listings are pending under contract as of this date.

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

Even though I should be putting together all the necessary data for a listing appointment that I have in Santa Cruz tomorrow with some long-time clients, I can’t take my mind off of the election going on today.  And I’ve procrastinated long enough today that results are coming in from the eastern states already.  This is the most exciting election I can ever remember, and it’s the first one that my daughter is old enough to vote in.  It warms my heart to see such a great voter turn-out.  I’m optimistic about the results too - and I don’t remember feeling that way about an election in a long time either!

Okay, back to work….Good thing I voted last week!

Twittering is as fun (or maybe more fun) than blogging.  You can give an update on “What are you doing?” in 140 characters or less, as often as you like.  You can form virtual friendships and, for me at least, learn the latest real estate news as perceived by fellow Realtors.

I’ve just recently become a member of the Twitterati and I’m not yet as addicted to Twitter as a lot of the people I’m following are.  But I’m looking forward to tweeting back and forth with my friend Harriet!

To follow me on Twitter, look for me under my Twitter id, which is the creatively conceived:  GretchenMerrick.