Archive for the ‘Santa Clara County’ Category

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Intero Insider: Housing News a Mixed Bag

By Gino Blefari | August 3rd, 2010 0 Comments

The best way to sum up housing market news right now is: the data show things are improving, but remain at not-so-great levels. Sorry to break it to you this way, but at least there are some positives.

Let’s dig in:

  • New home sales were up 23.6 percent in June, according to Census Bureau statistics. And while this was a great increase from May, the rate was 16.7 percent below the level in June 2009.
  • Also, home prices rose in May, according to the latest S&P/Case-Shiller 10-city and 20-city home prices indexes. Prices in the 10-city index increased 1.2 percent and prices in the 20-city index increased 1.3 percent. Compared with a year earlier, the 10-city index rose 5.4 percent and the 20-city reading increased 4.6 percent.
  • Existing home sales slowed 5.1 percent in June from May, according to figures reported by the National Association of Realtors. It was the second month of decline for existing sales, which many say was partly due to the expiration of the housing tax credit (contracts had to be in place by April 30 to qualify). But the June sales figures were up 9.8 percent from June 2009. NAR also said the inventories were up and prices were stable.

Now, the fun part: what does all this mean?

Well, first let’s not overlook the fact that there are indeed sales happening. So even if you’re of the “sky is falling” mind, you can’t deny that people are still buying and selling homes.

Second, we all pretty much knew that home sales would dip in the months after the tax credit expired. While the tax credit may not have created transactions out of thin air, it certainly put a fire under a great number of buyers to move quickly. Now the market doesn’t have those buyers who, under normal circumstances, may have bought in the summer instead of the spring.

Third, the fact that prices held steady and showed some increase is a good sign.

The reality here is that the housing market moves on. Life events will continue to drive transactions. Sure, times are tough for home sellers and those of us who work in this industry. But we at Intero actually see these times as a great opportunity to succeed. There are some great deals out there for today’s buyers and investors. Borrowing conditions are fantastic for those who qualify.

These are times when innovation really does stand out and make a difference.

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Move over Los Gatos – Morgan Hill: Quaint – Yet Progressive

By Ralph Chellino | February 26th, 2010 1 Comment

3rdstreet250Over the next five years downtown Morgan Hill will be undergoing significant changes to become more vibrant and active – to serve as the true hub of our community.  The Morgan Hill Redevelopment Agency will invest $40 million in downtown to improve parking, lighting, landscaping, infrastructure (water/sewer/utility undergrounding), and expand public art and cultural activities.

The first major project is the Third Street Promenade.  Over the last four months, Third Street has been transformed into a pedestrian-friendly thoroughfare between Monterey and Depot Streets, featuring:

  • wide sidewalks
  • decorative street furniture & art
  • pedestrian scaled lighting
  • street trees and landscaping.

It is envisioned that Third Street will become a place where Morgan Hill residents and those in surrounding communities will want to come to for dining, shopping, mingling, relaxing and enjoyment of outdoor entertainment.

What? Los Gatos without the traffic and congestion?  Come visit us and see for yourself!

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Hot or Not? Silicon Valley Market Trends

By Dawn Thomas | September 25th, 2009 0 Comments

Hot or not?  How is the real estate market these days in Silicon Valley?  Here’s the latest snapshot for the West Valley.

One closely monitored real estate measure is a market’s “inventory” – the number of months it would take to sell everything that is currently on the market.    The “heat” of a real estate market is often described as:

  • Cold – 6 or more months of inventory (a “buyer’s market)
  • Neutral – 3 to 6 months of inventory  (a “balanced” market)
  • Hot – less than 3 months of inventory (a “seller’s” market)

Based on these definitions – it looks like the market is warming up in Silicon Valley!

Silicon Valley Market Snapshot (as of September 1, 2009)


City
# Active
on Market
 #
Pending
Sales		 #
Closed
Sales		 Months
Supply
(Inventory)		 Average
Sales
Price		 Sales Price vs.
List Price
(%)
Santa Clara 76 128 56 1.12 $609,054 98%
San Jose 1110 1997 605 1.17 $540,550 96%
Sunnyvale 107 98 66 1.60 $708,832 96%
Cupertino 105 52 37 2.19 $1,161,895 95%
Campbell 119 79 37 2.16 $670,612 96%
Willow Glen 184 119 55 2.45 $769,212 92%
Mountain View 60 39 20 1.88 $879,950 95%
Palo Alto 91 54 29 2.07 $1,483,068 91%
Los Altos 78 32 27 2.36 $1,787,086 92%
Saratoga 143 41 31 4.33 $1,598,459 94%
Los Gatos 188 48 33 5.22 $1,431,736 87%
Los Altos Hills 65 17 4 4.33 $2,238,750 96%

Santa Clara County Totals

2398

2987

1043

1.52

$703,160

95%

Call us for a more detailed analysis of real estate market conditions in your neighborhood in Silicon Valley!

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San Jose Makes Effort to Become Completely Energy Independent

By Theresa Wellman | September 8th, 2009 0 Comments

San Jose Councilman talks about San Jose’s plans for becoming energy independent.

Led by Mayor Chuck Reed, San Jose, CA is working toward a 15-year plan to Go Green and become energy independent with the design to also grow the local economy in the process. The unique plan is focused on three main elements: Clean Tech Innovation, Sustainability, and Green Mobility.

San Jose’s Green Vision includes:

1. increasing trail connectivity for alternate transportation

2. converting all public fleet vehicles to alternate fuel

3. planting 100,000 new trees

4. converting all street lights to zero-emission lighting

5. recycling or reusing 100% of our waste water.

6. getting 100% of it’s power from renewable sources

7. divert waste from our landfills

8. adopt a plan for sustainable development

One key challenge the mayor set forth, is for local solar companies to come up with creative financing so San Jose residents can install photovoltaic systems on their homes. The intention is obvious; to help the local businesses grow and decrease energy consumption in San Jose’s neighborhoods. The mayor even put solar cells on his own home just this past month.

Local students at Santa Clara University and California College of the Arts are creating excitement about green and sustainable building too by building their very own Refract House, a Zero-Energy Home. It is obvious this topic is on the top of the minds of tomorrow’s leaders, so it is great to see our local leadership today making goals and progress toward a green and more sustainable future as well.

Green is not just a fad, it’s a new way of living that we are seeing more and more apparent in the homes we sell in Silicon Valley. Energy consumption and sustainable materials are a concern for many of my clients and friends and family.

To learn more about green living in a home you are looking to buy or sell, talk to a certified EcoBroker.

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Shadow Inventory of Foreclosed Homes-Fact or Fiction?

By Russ Boyd | August 28th, 2009 0 Comments

You may have heard media stories of a so called “shadow inventory” of foreclosed homes that banks are holding off the market. According to a story in the San Francisco Chronicle, Rick Sharga, vice president of RealtyTrac, which compiles nationwide statistics on foreclosures said, “We believe there are in the neighborhood of 600,000 properties nationwide that banks have repossessed but not put on the market.” He went on to say, “California probably represents 80,000 of those homes.”
The story suggests that there will soon be a torrent of bank owned homes flooding the market. I’m not here to second guess the data reported in the Chronicle article or the data compiled by RealtyTrac, however, I continually marvel at how media stories differ from everyday life experience. In the Bay Area, the inventory of homes for sale has been decreasing for many months and at the same time the number of sales has increased as has the median price.
According to bay area sales activity, in San Mateo County, the median price is up for the seventh month in a row, the number of homes for sale is down 25% from one year ago and the number of days on the market average down to its lowest point since September of ‘08.
In Santa Clara County, the median price is up for the sixth month in a row, the number of homes for sale is down 40% from one year ago and the number of days on the market average is down to its lowest point since March.
For Alameda County, the median price is trending up since the low in March, the number of homes for sale is down 49% from one year ago and the number of days on the market is down to its lowest point in a year.
In Contra Costa County, the median price is up for the sixth month in a row, the number of homes for sale is down 51% from one year ago and the number of days on the market is at its lowest point in a year.
A basic market fundamental is supply and demand. Keep in mind that a market in balance is considered a six month supply of homes for sale. For the four counties above, the highest is San Mateo County with 2.75 month of inventory and the low is Contra Costa County with 1.75%.
Shadow inventory or not, I can confidentially report that there is every indication that what we need in the Bay Area is more inventory. Multiple offers are common and, although qualifying for a loan takes, well, qualifications, there appear to be plenty of qualified buyers eager to buy in the Bay Area.

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Intero lists Sunset Magazine’s Dream Kitchen of the West home

By Teressa Francis | August 17th, 2009 1 Comment

dream-kitchen1Newly-built home in San Jose’s Rose Garden neighborhood showcases the best in Western and green living

We are excited to announced that Intero was chosen as the listing brokerage for Sunset magazine’s 2009 Dream Kitchen of the West home. The home, located in the Rose Garden neighborhood of San Jose, was built by DeMattei Construction, a leading builder of fine homes in Silicon Valley including five Sunset Magazine Idea Houses. The dream kitchen was designed by famous New York City and San Francisco designer/architect Cass Calder Smith.

The creation of the Dream Kitchen of the West was documented on a special section of the Sunset magazine website located at http://dreamkitchen.sunset.com. The completed kitchen will be featured in the October issue of Sunset Magazine.

“We list many extraordinary and unique properties in Silicon Valley, but it is a true privilege to bring this home to market,” said Gino Blefari, CEO of Intero Real Estate Services. “Exceeding the expectations of our clients is always first and foremost. Intero’s out of the box approach to marketing our listings adds to our level of sales success.”

The 3,200 square foot home features five bedrooms and four baths. Constructed with green building standards in mind, this home features: HEPA filtration, cathedralized insulation, bamboo counters, recycled glass tiles and Low-E Anderson windows throughout.

The Intero listing agents are Leslie Heinrichs, Ian Humphries and Valerie Mein. More information on the Sunset Dream Kitchen of the West home can be found on their website.

Take a video tour of the completed Dream Kitchen of the West with builder Mark De Mattei.

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The Value of Fixer Uppers

By Steve Ricketts | August 5th, 2009 0 Comments

All home buyers are looking for value, and to most this means getting the largest home for the lowest price. For many buyers this translates into purchasing the renowned ‘fixer-upper’.

So what exactly qualifies a home as a ‘fixer-upper?’

There’s a wide range of subjective credentials, as some homes may only need new paint and carpet, while others may need more extensive repairs to their foundation, roof, plumbing, or electrical systems, etc.

While on your search for the right home, remember to be realistic on accomplishing the repairs – who will do it? Will it be you, or will you be hiring a contractor? Estimate how much the repairs will cost with, and without, professional help. Does it make your purchase worth it? If you have to hire an expensive outside contractor you may not see the potential value of buying the home in the first place.

If you choose to buy a home requiring repair it is especially important to work with a licensed REALTOR, due to so many potentially expensive issues you may be confronted with. Your agent will walk you through the details of the property and termite inspections, and help guide your decision-making process based on your own ability to repair the home.

Your REALTOR should also be able to recommend the best vendors in your area, based on their past experience and company recommendations, in case you need further help on your project, or even just some quality advice. Choosing the wrong people to help repair your home can be very costly in both time and money.

Once escrow has closed, and keys are in your hand the fun begins! With the economy as it stands today many home owners with fixer-uppers are turning to “sweat equity”, or do-it-yourself repairs, to enhance their home value.

You will find savvy home owners doing most of the work themselves with friends and family lending a hand. A method of making the project more pleasurable and less of a chore for your invited helpers is to make a party out of it! Offer pizza, drinks, music, etc. to motivate your crew. Offer out-of-town friends and relatives the chance to be your first few guests in your new home. Or, make this a great excuse to call old friends you haven’t seen in awhile. Make your home improvement projects a community effort.

You will be amazed when you are finished. Not only have you repaired and remodeled your new home, you will probably find that you have also built stronger relationships with family and friends.

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SHORT SALE vs. REO: Buyer “Thunderdome” Part 1

By William Chea | August 4th, 2009 0 Comments

For today’s buyer, the Short Sale and REO – real estate owned property – transactions are the market heavyweights.

Let’s go a few rounds weighing the pros and cons to see how they compare!

Round 1 – Pricing (REO comes out swings and lands a quick over-hand right – perhaps)

The biggest and most powerful draw the REO property has on buyers is typically lower pricing when compared to other homes on the market.  In San Jose lower prices have enticed so many buyers that, for the first time since 2005, there are more pending sales than active listings.  However, there is no Tyson-like knockout because with lower prices comes competitive bidding which drives the price up to where the deal is, in many cases, not so hot.   Case in point, we recently listed an REO on E. Duane Avenue in Sunnyvale and within 48 hours had 18 offers!

Round One goes to: The REO

Round 2 – Timeframe (Smelling blood, the REO goes for the knockout with a devastating left uppercut to the body!)

A huge complaint about the Short Sale is the uncertainty of outcome and the time frame – they take too long!  There are Pending Short Sales right now that have been waiting for lender approval for over 9 months!  The majority of REO offers can be ratified within 7 days and closed in 30 days.  This gives the REO a huge advantage. Short Sale’s knees are a little wobbly at this point but somehow manage to stay upright. Why? Thankfully many major lenders have finally recognized the value of the short sale and are beginning to streamline the approval process.  In the case of Wachovia Bank in Santa Clara County they are pioneering a program where the short sale approvals happen at the local level.  They have staff that actually discuss and assess the situation with the homeowner. Their approval turnaround time – from offer submission to final approval - can be as timely as 5 to 10 days. In general, private parties are typically more nimble in their ability to respond and make decisions related to the transaction – far less “bureaucracy” in this process. Short Sale survives REO’s early barrage and is saved by the bell!

Round Two goes to: The REO

Round 3 – Disclosures (The Short sale has its Balboa moment…queue the horns)

As an REO listing agent myself, it amazes me that buyers and/or their agents sometimes don’t get it – There are LIMITED SELLER disclosures in a REO transaction. The seller is an institution – they have never lived at the property.  They have never seen the property, much less know its history. Apart from the Natural Hazard Disclosures and a few mandatory disclosures, you have no idea what has happened to or around the home. This is where the Short Sale has a HUGE advantage. The seller most likely occupied the property and has a legal obligation to disclose everything they know to a potential buyer. Out of nowhere, Short Sale regains his legs and starts landing body punches to REO!

Round goes to: The Short Sale

This match is just heating up! Come back for Part 2 and see who will win.

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South County a Hidden Gem for Families

By Ralph Chellino | July 27th, 2009 0 Comments

As a resident of South County (Morgan Hill, San Martin, and Gilroy, California) since 1974, I have witnessed first hand the growth and development that we have become proud to be a part of. In 1974, the populations of Morgan Hill and Gilroy combined did not exceed 15,000 residents. Today controlled growth initiatives have seen both communities gently and tastefully expand to approximately 34,000 in Morgan Hill and 42,000 in Gilroy. Pastoral surroundings compliment our great schools, numerous parks, and exceptional recreation facilities making Morgan Hill and Gilroy family “havens”. Statistics embellish the family “canvas”:

As of July 21, 2009 MLS reports 304 active listings in South County (Area 1) of which 137 are listed under the very affordable price point of $700,000. Buyers must be alerted to the most current trends because the market has heated up suggesting the plausibility that we have reached the bottom of this very deep recessionary period.

Some Intero statistics of interest include:

  • Listings this month compared to this month last year are up 33%
  • Sales are up 21%
  • July 2009 enjoys a 50% increase in closed escrows over this time last year. Active listings have declined and pending sales have increased over the last 60 days illustrating more market activity.
  • Lending guidelines are beginning for the first time in eighteen months to relax a little allowing more borrowers to qualify for loans under 6% APR. FHA conforming loans allow buyers to purchase their homes with as little as 3.5% down.

What does all of this mean? In my thirty-year real estate career I cannot remember a better buying opportunity in South County than right now.

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If There Ever Was a Time to Buy, This Is It!

By Russ Boyd | July 25th, 2009 0 Comments

Five Reasons Why Now is the Perfect Time to Buy-

  1. Low Mortgage rates – Bankrate.com recently reported, that mortgage rates are at their lowest point ever in their survey taking history. They have been conducting rate surveys since September 1985. The national average for a 30-year fixed rate mortgage is very near 5%. This is great news for buyers.  If you read or listen to the news, you will see that refinancing has increased dramatically.  Why do you think this is? Any further rate drops are likely to be minimal.  One thing that you can count on, when rates begin to rise, they go up much faster then they go down.  The current interest rates alone, is a really good reason to consider purchasing a home.
  2. Housing Prices –  Everyone knows that housing prices are down in most regions.  Do you think prices are going to continue to decline?  Perhaps, but most of the decrease is now reflected in today’s prices.  The number of sales and median prices have been rising steadily in the Bay Area since the first of the year. Multiple offers have become very common in the lower price range.  See for yourself at BayAreaMarketMetrics.com.  Now you have two good reasons to buy.
  3. Seller Motivation –  Due to the current market conditions, it is pretty easy to identify motivated sellers.  In many instances, you can easily find a motivated seller by looking at the property description. Look for keywords such as: “motivated seller,” “make an offer,” or “must sell.”  Be sure your agent is on the lookout for consistent price reductions. If you like the property and the seller is motivated, then you should seriously consider making an offer.  If you don’t, chances are someone else will and you will have missed your opportunity.  Don’t let that happen to you.
  4. Tax Advantages –  Current tax law allows homeowners to deduct interest paid on mortgages and the amount of paid property taxes. If you are paying rent, you do not qualify for these deductions. The Federal and California State governments are also offering incentives.  The most widely publicized are the Federal $8,000 first time home buyer tax credit and the California $10,000 tax credit for a new home purchase. This makes a great opportunity even more incredible.  For find out if you qualify for one or both of these home buyer tax credits, check with your Realtor®.
  5. Timing – You must have heard the expression “buy low and sell high,” right? It might even be your mantra. As with any investment, it is ideal to purchase when prices are low rather than at their peak. However, if you are waiting to purchase a home because you believe prices will continue to drop, you will likely miss out of an ideal opportunity. The time to “buy low” is right now. Once everyone comes to the realization that prices may already be at their lowest point, then you can rest assured that buyers will jump in and start buying. In the lower price range multiple offers are becoming more common.  Remember, the best deals will be the first target.

Now you know, this is a great time to buy a house.  There is plenty of inventory, interest rates are low, house prices are down, sellers are motivated, you can take a tax deduction and you may qualify for up to  $18,000 in tax credits. The timing is perfect. You have nothing to lose and so much to gain.

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