| Bay Area Breeze |
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Disclaimer: Bay Area Breeze and its contents, are the recollections, thoughts and opinions of Loretta McClellan, REALTOR®, SRES®, GREEN, in blog form, meant to be a resource for area residents, and those relocating to or visiting the San Francisco Bay Area. The comments within are not paid endorsements, but personal observations of the author. 30 March 2010: CA Homebuyer Tax Credit Extended 5/1/10 to 12/31/10! $200 million in funds available for new or existing homes! $10,000 tax credit or 5% of purchase price! First come, first served for these funds! Click here for more information.
18 December 2009: Reflection on 2009--Looking Toward 2010 May this Holiday Season fill your homes and hearts with joy, and may the New Year bring you health, happiness and many opportunities! 23 November 2009: Fannie Mae and Freddie Mac Maximum Loan Limits The news in the media over the last two weeks has largely been about the potential benefits of the new expanded and extended home buyer tax credit which opens the doors for existing homeowners to take advantage of a $6,500 tax credit. There have certainly been quite a few articles regarding the tax credit over the last two weeks. I did come across an interesting article on Reuters.com which stated, “Up to 400,000 people bought a home for the first time due to the credit, boosting first-time buyers to a record 47 percent of sales over the past year, the National Association of Realtors has said. With the help of the credit, existing home sales will rise 2 percent this year and 13.6 in 2010, the group estimates.”
7 November 2009: Additional Tax Credit Information--Comprehensive 7 October 2009: 31 August 2009: "Summer was not Sleepy for Sales" Generally speaking, the Bay Area real estate market has seen a bit of a bounce this summer with sales increasing in all categories—from the entry level homes and condos to the high-end market. National figures showed June with an 11% increase in home sales and the Bay Area seemed to share that trend with July sales up 15% over July 2008. As the number of sold units continues an upward trend, price recovery is a bit of a mixed bag depending on the area. The entry level median price is increasing in all counties, due to very little supply against a healthy demand. The just-under, just-over $1M mark seems to be holding its own, with a few multiple offers out there for the right property in a sought-after community. The higher end properties over $2M have, in the past 30 days, seen more activity than at any time this year, but price remains a critical factor as to which properties seeing this activity actually go into contract. It seems the higher the price-point, the more critical it is for a very attractive list price. Sellers who are selling are very realistic about marketing price, and Buyers who are buying are recognizing good value when they see it, and are taking action swiftly. For cash buyers or those with large down payments, this could be a great time to pick up a bargain in the luxury home market. This week the National Association of Realtors released its monthly existing home sales report (http://www.realtor.org/press_room/news_releases/2009/08/strong_uptrend?LID=RONav0021) noting “For the first time in five years, existing-home sales have increased for four months in a row, according to the National Association of Realtors®.” The report went on to note, “Existing home sales – including single-family, townhomes, condominiums and co-ops – rose 7.2 percent to a seasonally adjusted rate of 5.24 million units in July from a level of 4.89 million in June, and are 5.0 percent above the 4.99 million-unit pace in July 2008. The last time sales rose for four consecutive months was in June 2004, and the last time sales were higher than a year earlier was November 2005.” Lawrence Yun, NAR chief economist, said he was encouraged. “The housing market has decisively turned for the better. A combination of first-time buyers taking advantage of the housing stimulus tax credit and greatly improved affordability conditions are contributing to higher sales,” he said. Ultimately these are all very positive signs for our market and are a strong sign that we are moving in the right direction towards a housing recovery. A few other interesting articles of note for the week: Home Prices On An Upswing In The Second Quarter Of 2009 According To The S&P/Case-Shiller Home Price Indices; Case-Shiller Now let’s take a look at this week in real estate: · East Bay—Berkeley reports some buyers are still not prepared to compete in a multiple offer situation and may not believe this market until they've lost out on a few properties. Castro Valley reports there is very limited inventory in our local market right now. We had nine homes on Brokers tour during the course of this week, and Agents are hungry for homes to sell. We had a few properties that hit the market this week and went pending in a matter of days. Multiples, multiples, multiples. There is an increase in the number of buyers calling our office looking for agents to help them buy. We have gotten a lot more floor activity in the past week, despite the drop off in activity due to kids going back to school. Danville reports all market activity is strong. Lack of inventory is holding down sales. Prices at the bottom are firm - prices at the top are still correcting. Oakland reported we had three nice sales averaging $2 million for the week. One of them was the property that we had marketed for a year and a half. The buyer came to an open house (we had over 100 groups through) and bought it all cash for over $2 million dollars and a very quick close. Everyone feels there is momentum in the market. We had more open houses last weekend than previous weekends and they are well attended · Monterey County—The steady beat of listings and escrows continues the Monterey Peninsula. We are seeing sales in all price ranges, except the very top over $10 million and those are slow even in the best of times. One third of our new escrows last week were for properties priced between $1.2 million and $1.9 million. We see sales in that $1-2 million range really picking up of late. · North Bay—San Rafael reported cash is king when it comes to winning the multiple offer game in the entry level market. Nearby Southern Marin reported every deal requires heavy negotiating and seller concessions and last minute delays in removing loan contingencies. Sebastopol noted open houses remain well attended. Every escrow has its own special demands, lender conditions, low appraisals, and Agents on the other side that won't play nice. Santa Rosa noted REO listings are starting to appear in increasing numbers. A noticeable increase in open escrows from $500,000-$900,000. · Peninsula—Burlingame noted that activity has picked up a lot, many buyers are getting involved in multiple offers and are beginning to understand that the market has changed and they need to step up to the plate when that perfect property comes along. Half Moon Bay reported activity has picked up on the coast as seller's are pricing their properties to sell within one or two weeks, along with the moving of some stagnate listings requiring many counter offers. Menlo Park Santa Cruz Avenue reported two homes sold last week with multiple offers however neither went over the list price. Open houses were busy averaging 20-25 groups. Palo Alto reported Inventory is slow to come on the market. Listings and sales are seasonally slow. Looking forward to a brisk after Labor Day market. San Mateo reported there has been some more intense movement in the $1.2-1.5 range - Hooray!!! · San Francisco—The Lombard office reported a slow week except for the entry level and REO markets which remain hot, with multiple offers, including a surprising number of all cash. Major price reductions on the upper-end bringing mixed results. More hints of a listing surge post Labor Day. The Market Street office reported lots of activity the last two weeks. Back-up offers being elevated, properties that have been on the market for a while getting into contract, and buyers who want to get in to a home before prices go up and be assured of their $8,000first-time home buyer credit. There has been more activity than a normal August with fewer agents in the office taking time off. · Santa Cruz County—In last four months, the median price in the county has risen 23% or about $100,000 which is a very good sign. Prices are still down about 14% from where they were a year ago at this time but it is definitely going in the right direction. Inventory levels are down from a year ago with a 5.5 month supply of single family homes on the market as compared to 8.5 month supply in July/August of last year. Overall, there is improvement which is wonderful! · Silicon Valley—San Jose Almaden reported a hot low end market continues to fuel sales. Highest sale last week was $550,000. Two-thirds of the sales were under $300,000! The Willow Glen office reported we are seeing a lot more multiple offers on our listings. Saratoga reported our Previews (luxury end) market is still slow. REOs and short sales still dominate the market; however there is a slow steady increase in our office's average sales price. I think this is due to a much healthier market in the $750,000 to $2,000,000 range. · South County—Sale prices are exceeding list prices on sales under $400K due to lack of inventory. On REO listings it is typical to have 5-10 multiple offers in that price range. Contingency time frames are usually shortened to strengthen the offer. Short sale listings are increasing with back up offers in place. Open houses are well attended and floor calls have been on the rise! Morgan Hill reported the market remains unchanged for the past several weeks. There is great demand for entry level homes--multiple offers happen and then there is just one successful buyer. 6 August 2009: "Exclusive Virtual Tour Offered" 10 July 2009: "Seniors Real Estate Specialist"
Coldwell Banker has partnered with Habitat for Humanity. If you have used cell phones and haven’t found a place to safely dispose of them, please look no further. Please take your used cell phones to your local Coldwell Banker office. Both the Los Gatos-South and Los Gatos-North Coldwell Banker offices will receive them. If you have any questions, please feel free to contact me. For more information about the GREEN real estate services I provide my clients, please click here to view my GREEN page or click here for my GREEN Resources page on my website.
8 April 2009: "4/19/09 Coldwell Banker Annual Spring Mountain Property Tour"
Visiting Filoli at any time of year is a visual treat, but especially in the Spring. Tulips in pots, as well as emerging from the soil are a sight to behold. Pinks, purples, yellows, peach and orange...the estate is awash in vibrant color, ushering in the excitment of Spring. Park benches are strategically placed for visitors to sit back and take in the beauty and splendor of the grounds. During the Spring season, take patience along with you to capture a photograph without any other person in it, as many visitors frequent the estate during the initial blooming season. By planning your visit and checking with the filoli.org website blooming schedule, visitors can ensure they will witness the blooms they choose. I guess I got lucky, as I visited this past week and saw a plethora of wisteria, tulips, cherry blossoms, and still was able to catch some daffodils and camelias in bloom.
The house itself is a true gem; its facade grand and its decor refined. Some may remember the tv show "Dynasty" was filmed there, along with several other films and tv shows. If you're looking for a place closeby to visit and be inspired, look no further than Filoli! Treat yourself to a beautiful place of remarkable elegance.
28 March 2009: “The ‘Glass is Half-Full’ Market Perspective”
10 March 2009: "One of the First in California" Being included in this first group of REALTORS® in California obtaining the NAR GREEN designation is a positive move forward for our industry; it demonstrates a growing dedication and commitment to green practices in real estate, which I am encouraged to see first-hand. I have practiced paperless, digital presentations and marketing materials for over 10 years. My commitment level is such that I have partnered with a technology provider to produce new technologies that minimize the ecological footprint, while enhancing the buyer and seller experience. As more responsible solutions escalate in the industry – particularly in the reduction of paper resource usage, and as acceptance of sustainable options grow amongst clientele, I look forward to an exponential increase in ecologically-responsible practices in real estate across the board. To read the press release click here. 20 February 2009: "Short Sales De-Mystified" “Short sales are when the lender allows a distressed property to be sold at a price lower than the homeowner’s mortgage indebtedness, with the difference forgiven,” says RISMEDIA. The article went on to report that a short sale “also typically allows the new purchaser to buy into the neighborhood at a substantial discount, much more in line with the property’s true, current market value. In other words, short sales facilitate efficient clearing of the market.” Short sales are quickly becoming the preferred choice when possible by lenders, in lieu of foreclosure. For sellers, short sales provide additional options. There is much information to be shared and several scenarios to consider for those seeking opportunities. For buyers – bottom line is that with a short sale, they have the opportunity to purchase more home than they previously could afford. I hope you find this information useful. If I may be of further assistance, please feel free to contact me.
4 February 2009: "FIRST in GREEN" On February 3-4, 2009, I was one of 33 REALTORS® attending the first-ever National Association of REALTORS® (NAR) GREEN Designation course in California, hosted by the Silicon Valley Association of REALTORS® (SILVAR). You can read the SILVAR article about it here. My commitment to broadening GoGREEN practices in my personal and professional life continues to escalate, as the real estate industry and the world embrace the benefits of ecological and sustainable responsibility. This has been my focus, long before "being green" was en vogue. How people are now getting "on board" with ecological responsibility doesn't matter, as the end result benefits us all. If it's a trend that motivates people, that's ok. Something rather than nothing of a commitment to ecological responsibility is better in this situation. It's mostly a personal decision at this point. In the future, government and business will establish more GREEN practices that will set the tone for the masses. We can all be part of the solution. As I mention on my GREEN web page, measuring "green-ness" is subjective, just as determining what is "good art" is subjective. I have consistently worked paperless for presentations and marcom for over 15 years. That's a lot of paper saved. I know there is always room for improvement. For instance, I'm considering my next vehicle and researching options. I look forward to a wider range of choices. To be part of the process of always moving forward in improvement of our ecological footprint, sustainability and environmental responsibility is the key. I have a green conscience, meaning, I think before I act, and think of how it will affect the environment. It allows for creative thinking. When there are solutions that can improve the industry that also limit the use of limited resources, it is a move forward to "greener pastures." 30 January 2009: “Is it Los Gatos or Las Gatus?" I'm a San Jose native, and grew up in the West San Jose/Campbell/Saratoga/Los Gatos area. Not too long ago, I had something shipped to my home that taught me that I actually have a regional accent. I normally spell out my city to vendors for shipping, but just spoke the city name this one time, without spelling it out loud. I got the package and the ship-to address was "Las Gatus, California." I laughed out loud. Is my dialect that distinctive? I hardly thought so, and then it dawned on me about a time I lived in the Boston area and met someone also native of San Jose – from my home turf. He said he was from "San Ozay." I immediately noticed that all my life I've been pronouncing two of my local stomping grounds characteristically regional: San Ozay, instead of San José, and Las Gatus, instead of Los Gatos – the correct, Spanish pronunciations. I got A’s in my two years of Spanish language at Campbell High School, and did well in Mr. Allen’s class, and yet, I don’t pronounce these two town/city names correctly in Spanish, as others do that aren’t originally from the Los Gatos/Campbell area. Do I sound “local,” or would Mr. Allen now flunk me in Spanish? Take note the next time you pronounce San Jose or Los Gatos. If you grew up here, chances are you say “San Ozay” and “Las Gatus.” 17 January 2009: “May Your HeART be Touched by Touch My HeART" I enjoy providing real estate service that offers clients what they expect, what they hope for, and service beyond their expectations... Going the extra mile is easy to do, because I truly enjoy what I do! I look forward to building upon my business in 2009, and launching new service offerings, to provide my clients the best in creative and innovative real estate. 20 December 2008: “Will 2009 Bring Positive Economic Attention?” Soon after the Fed announced the cut, U.S. 30-year mortgage rates dipped, too. According to Reuters.com’s December 16, 2008 US 30-Year Mortgage Rate Dips After Fed Cut, “The average interest rate on a 30-year fixed mortgage dipped to 5.01 percent on Tuesday, from 5.06 percent a day earlier, Zillow stated. A week ago, the rate was 5.29 percent.” There is much discussion that before long we will see mortgage rates at 4.5%, which could spur a great deal of positive attention for our industry. If the Treasury does in fact lower the rate, present homeowners who want to refinance would be able to do so at a historically low rate. According to the Wall Street Journal, “up to 34 million households would be able to do so, at an average monthly savings of $428—or a total reduction in mortgage payments of $174 billion. This is a permanent reduction in payments and is thus likely to spur appreciable increases in consumption.” 1 December 2008: “Holiday Wishes to You and Yours” 10 November 2008: “Nature’s Bounty" Living in the Bay Area offers such a bounty of fresh produce year-round, due to such ideal weather. It’s easy to take it for granted. When I lived in Maine, I would shop for produce and notice that so many things came from my home turf. Mushrooms from Morgan Hill, strawberries from Watsonville, garlic from Gilroy. By the time these veggie gems arrived in Maine, they were a bit worse for wear, even though I paid a premium price. I’m especially grateful for enjoying such close proximity to nature’s harvest and my extended family. For your holiday meal shopping, particularly for specialty items, I recommend: 30 October 2008: “Let the Rain Begin…” Rain has finally arrived in the Los Gatos Mountains today and downtown Los Gatos. Many leaves are falling. There’s also a lot of fog up on the Summit. It reminds me of the time in the early 80’s when it rained for months and the only time in my life when I did not like rain. We could use more rain like that now. I remember one really special trip driving over Highway 17 to Santa Cruz when my husband and I were dating, when it was foggy and almost surreal in its ethereal beauty. We drove in his Pontiac Fiero and this exceptionally-perfect fog was enveloping the car. Some may feel that fog invites auto accidents, but we were in this protective bubble of fog and expansive redwood trees. It was other-worldly. It’s one of the many reasons why I choose to live here, serve here, work here and play here. 22 October 2008: "Being Green is a Great Thing" Being green is a great thing. Working towards being green is a great start. Thinking that “being green doesn’t mean a thing,” is ignoring the great, big elephant in the room. Real Estate as an industry is traditionally a very paper-profuse profession. With contracts, disclosures, marketing materials, city and county records, escrow files, etc., there are many instances where paper is the expected medium in which to transact. Recently, there has been a shift in reducing paper consumption and the real estate industry is beginning to come around to the reality that there are alternatives. The National Association of Realtors (NAR) has recently introduced their “Green Realtor” designation. Not to be confused with the “Eco-Broker” designation, “Green Realtor” is a NAR-endorsed and supported designation. Meshing green practices in the industry, as well as in the home and building, this designation, and the emphasis on these modes in general, are being recognized as society embraces “being green” as en vogue. Long before this trendy behavior became socially acceptable, I was flattening aluminum cans in my West San Jose garage as an elementary school student and accompanying my mom with bags of cans to the recycle center. This was before curbside recycling and recycled plastics. When we had the water shortage in California in the late 1970s (or was it early ‘80s?), we were funneling rainwater from the downspouts and reusing the water where appropriate. Newspapers in printed form were the norm (this was before online publications – before “being online” even existed), and we packaged them in paper grocery bags and saved them for the Cub Scouts to pick up for their “Paper Drive” every year. They called it “conserving” back then; today the “wakeup call” is finally being heard and widely-recognized as vitally important to the preservation of our planet. I can thank my Mom, for instilling in me at a very young age the need to be environmentally-conscious. I’m not what others would call a “tree-hugger”, but I consider myself a green individual. I am very aware how my actions and business practices impact the environment on a daily basis. Because of this, I strive to eliminate paper use and offer paperless alternatives when and where possible in my business. As the industry becomes adept at paperless business practices, my green options will increase, to offer more environmentally-responsible solutions for my clients. I look forward to the day of a completely paperless real estate process. My conscience is pricked. I know that my actions have an impact on our world – daily – with far-reaching consequences now, and for future generations. Green is my favorite color. Let’s preserve. Let’s conserve, reuse and innovate. After all, we do live in Silicon Valley – the land of thinking outside the box. Just make sure that box… is reusable. 11 October 2008: "A San Jose Native's Confession"Being a San Jose native, raised in West San Jose and nearly a life-long South Bay resident is a definite advantage in this competitive, real estate marketplace. A confession I must make, however, is that I’ve driven by the Winchester Mystery House (winchestermysteryhouse.com) – a San Jose icon and historical property – innumerable times, and have never been inside or toured this fabulous landmark. While many reference this remarkable example of Victorian architecture as the place to be on Halloween for its “Flashlight Tours,” I find it to be this nagging reminder, insistently prompting me, of “how can I call myself a San Jose native and have NOT seen this place?” The Winchester Mystery House is on Winchester Blvd., adjacent to Hwy. 280 and next to the Century Theaters. It was owned and built by the Winchester Rifle heiress, Sarah L. Winchester. Construction began in 1884 and ended in 1922 – a staggering 38 years of building! View the website for amazing facts, such as its 40 bedrooms, 40 staircases, 47 fireplaces and 5 or 6 kitchens! Better yet, go and see it! With this declaration of profound embarrassment, my goal is to view The Winchester Mystery House, so that I may hold my head high the next time someone asks me about this favorite tourist attraction. I probably won’t view it at night, because I want to fully appreciate the ornamental and architectural details in the daylight. Winchester Mystery House ►Question: Have any other San Jose natives not toured the Winchester Mystery House? I’m curious. Feedback is appreciated.
To blog, or not to blog in real estate…that is the question – and while you’re at it, why call it a blog? I choose to call it something more substantial than a blog (a.k.a. "web log" abbreviated), perhaps similar to the name of a newspaper column or masthead/name. I’m going to call it “Bay Area Breeze”, as in “shooting the breeze,” or musings, but musings with specific direction. No rambling-on here. While some in real estate feel that if you’re writing an ongoing dialogue with people, you’re not busy with active sales in real estate and not proving your success; I beg to differ. If you provide valuable information (and value is relative, I realize) – valuable information to at least some, particularly in the community, then you’re providing a service, and being service-oriented is the best kind of success! Service is our middle name in the real estate profession, isn’t it? For me, it's a life-long, personal and professional ethic. My market is primarily the Los Gatos, Los Gatos Mountains to Santa Cruz corridor, Saratoga, Monte Sereno, Campbell and San Jose area. I chose this area to market for the important reasons of I grew up here and I know the area well. I was born in San Jose and lived in a tiny, little enclave of West San Jose, surrounded by Campbell and Saratoga, whose street abutted the Campbell border. I attended Campbell High School for my freshman and sophomore years until it closed (Go Buccaneers!), then finished up the last two and graduated from Prospect High School in Saratoga (where I was Editor my senior year of "The Panther Prints"). Most of my friends lived in Los Gatos and Saratoga and I spent my free time perusing downtown Los Gatos, hiking in the Los Gatos Mountains and hanging out at the beach in Santa Cruz. This was – and is – my playground. Enough about me – this is supposed to be valuable to others, right? I mention my upbringing to preface the primary purpose of today’s statement of value: having lived here most of my life, I wish to share of some of the gems of this multifaceted area – the “hidden treasures” and not-so-hidden qualities of the San Francisco Bay area, to perhaps present an idea or place to visit, restaurant to try, etc. to perhaps, provide service to my community. Today, let’s keep it fairly local. Some of you may remember a great restaurant in downtown Los Gatos: The Charthouse. It used to have this coveted table in the tower that you had to book well in advance and was known for its great steak and fish. It was housed in this elegant Victorian with period details – "The Grand Dame" on North Santa Cruz Avenue. Today, this Victorian is now the home of Trevese (trevese.com) – a restaurant that I highly recommend for special occasions, or for those that choose to dine regularly at a restaurant serving artistic, culinary flair, and service that is impeccable. The exterior is every bit of what you would expect a Victorian to exude architecturally. The interior is now quite metropolitan and extols class. Every meal that I have enjoyed there is a symphony of flavor to savor, as well as a masterpiece to look at presentation-wise. I have personally met the head chef/owner, and he and his staff know their craft and know what customers are in need of: to enjoy delectable cuisine in a stellar setting, prepared and served by those that enjoy and perfect their profession. Trevese
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4 April 2009: “Splendor in the Blooms at Filoli Mansion”
For those that truly enjoy gardening, Filoli offers many classes and opportunities to volunteer. A cafe' is on the premises with pre-made sandwiches and delectable desserts. Hallways adorned with spectacular examples of fine art inspired by the estate, as well as a garden shop and historical information are there for those intrigued by the history of the estate. 
