Market Updates and Commentary No comments yet

Would you Believe a New Tax Credit up to $10,000 for California Homebuyers?

By on March 29th, 2010

Videos by Russ Boyd are syndicated across the internet by

Who would have thought, a new Homebuyer Tax Credit for California homebuyers has been signed by the governor.

Last Monday the California State Legislature passed Assembly Bill 183 which will provide $200 million in homebuyer tax credits for California homebuyers.

The bill is part of a package of four bills, passed at the request of the Governor, designed to help stimulate the economy and create jobs.  The bill allocates $100 million for qualified first time home buyers of existing homes and $100 million for purchasers of new, or previously unoccupied, homes. To be eligible, homebuyers must close escrow on a qualified principal residence between May 1, 2010 and December, 31, 2010, or have executed an enforceable contract on or before December 31, 2010 and close escrow on before August 1, 2011.  This credit is equal to the lesser of 5% of the purchase price or $10,000, taken in equal installments over three consecutive years.

Keep in mind that the bill imposes a statewide limit of $200 million on the total tax credit allowed. Once the total has been allocated tax credits will no longer be allowed.  It is necessary to file a “certification” with the Franchise Tax Board to reserve a credit. Under AB 183 purchasers will be required to live in the home as their principal residence for at least two years or forfeit the credit, or in other words, repay it to the state. The details are available on our website, www.aboutbayareahomes.com, under Quick Links.

If you or someone you know is thinking about buying a home, this is valuable information. For details I recommend you contact your REALTOR® or a qualified tax advisor. I am always available to answer your questions or discuss your concerns. Simply text, call (650 325 7877) or email me (russ@brokerruss.com)  for a prompt response.

Now, more than ever buyers and sellers will benefit from the advice and guidance that an experienced REALTOR® can provide. If you are in the San Francisco Bay Area, I invite you to take a look at our Resource Center, www.AboutBayAreaHomes.com. There you will find links for active home listings, including bank owned and short sales, home loan information, market activity reports, home seller strategies, staging and decorating, a suite of 19 calculators, plus my book, “Let’s Make a Deal, The Insiders Guide to Buying and Selling Real Estate” and more. Of course I am always available to discuss your real estate or mortgage related questions or concerns, just call, text or email me for a prompt response.

Russ Boyd and his team professionally assist buyers, sellers and homeowners in the Peninsula Communities of the San Francisco Bay Area. They serve clients in San Mateo, San Francisco, Santa Clara, Alameda and Contra Costa counties. Licensed as a Real Estate Broker by the California Department of Real Estate, 01264240.

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Market Updates and Commentary No comments yet

Deutsche Bank: ‘Home Equity’ Rises by $1.1 Trillion

By on March 23rd, 2010

Videos by Russ Boyd are syndicated across the internet by

             

 

Remember back in 2006?  Those were the days of multiple offers and rising home prices.  Well, we are now into the third year of the “burst bubble” recovery.  I confess, we bought our current home in 2006. And of course, it’s no news that its value today is much less than what we paid for it.  Over the years, I’ve learned to accept the fact that things that go up someday come down and things that are down someday go up.

Actually, we don’t pay much attention to the current value of our home.  We’re happy where we live and life goes on.  At least that’s how I felt until I was this headline “Deutsche Bank: ‘Home Equity’ Rises by $1.1 Trillion”

Now that caught my attention.  According to the report, over the past 12 months (that means all of 2009) homeowners have seen the paper value of their homes rise by $1.1 trillion.  What! values have risen by $1.1 trillion…the report continued, this is the first year-over-year increase in four years…. maybe I should check recent sales in my neighborhood, I thought.

Deutsche Bank analysts write that the “upshot” is that household buying power in the first quarter “will show a meaningful improvement relative to recent history.” Basing its estimate on figures compiled by the Federal Reserve, Deutsche Bank says home equity grew by $540 billion and $420 billion in the second and third quarters of last year, respectively, and less slowly in the fourth quarter and that adds up to over $1 trillion.  Even though the Deutsche Bank report seems somewhat bullish on home values, some in the housing and mortgage markets fear that when the government halts its Mortgage Backed Securities buying program on March 31 that rates could rise on 30-year fixed-rate loans.  Add the expiration of the $8000 Federal Tax Credit and we could see a slow down in the current momentum in the housing market.  And concerns remain on delinquencies and possibly more foreclosures if both employment and values do not improve over the next two quarters.

No doubt we are likely to continue to see bumps in this road to recovery. The tax credit expires next month and interest rates will slowly begin to rise. If ever there was a need for guidance from an expert real estate agent, it is now.

I am always available to answer your questions or discuss your concerns. Simply text, call (650 325 7877) or email me (russ@brokerruss.com)  for a prompt response.

Now, more than ever buyers and sellers will benefit from the advice and guidance that an experienced REALTOR® can provide. If you are in the San Francisco Bay Area, I invite you to take a look at our Resource Center, www.AboutBayAreaHomes.com. There you will find links for active home listings, including bank owned and short sales, home loan information,  market activity reports, home seller strategies, staging and decorating, a suite of 19 calculators, plus my book, “Let’s Make a Deal, The Insiders Guide to Buying and Selling Real Estate” and more. Of course I am always available to discuss your real estate or mortgage related questions or concerns, just call, text or email me for a prompt response.

Russ Boyd and his team professionally assist buyers, sellers and homeowners in the Peninsula Communities of the San Francisco Bay Area. They serve clients in San Mateo, San Francisco, Santa Clara, Alameda and Contra Costa counties. Licensed as a Real Estate Broker by the California Department of Real Estate, 01264240.

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Market Updates and Commentary No comments yet

HAFA (Home Affordable Foreclosure Alternative) is coming to town!

By on March 15th, 2010

Videos by Russ Boyd are syndicated across the internet by

As I reported in a recent post, up until now, short sales have had a high rate of failure, leading to frustration by buyers, distressed sellers, real estate agents and escrow officers. HAFA (Home Affordable Foreclosure Alternative) is a new federal program which becomes effective April 10, 2010. The intent of the new guideline is to streamline the process and create incentives for short sale transactions for lenders and borrowers through 12/31/12. Whether you are a homeowner, home buyer or home seller, this program may impact on you!

Yes, even if you are a current homeowner that is not experiencing financial distress you may be affected. Here’s how; as can be seen here, homes that have been foreclosed on and are now bank owned receive a sale price, on average, some 20% below that of a successful short sale. What homes sell for in your neighborhood directly impacts the value of your home. The fact that short sale sellers typically stay in their home until escrow closes limits the negative affect of foreclosed homes that become vacant.

As a homebuyer you are impacted because of the high failure rate and length of time short sales have been experiencing. In the first time buyer price range short sale listings represent the highest percentage of homes for sale, however, most buyers learn quickly to limit their search to bank owned or traditional market listings, thus ignoring half or more of the available homes for sale. The expected outcome of the new guidelines, which become effective April 5, 2010, is to align the short sale process with more traditional sales.

And of course, all this will benefit the seller experiencing financial hardship. Hopefully, the failure rate will go down and the process will become more predictable.

So, lenders have until April 5th to implement the HAFA guidelines and if it provides the intended benefit, it’s a win-win for all.

For those that are interested, I’ve posted an outline of the new guidelines under Quick Links on our website, www.aboutbayareahomes.com.

I am always available to answer your questions or discuss your concerns. Simply text, call (650 325 7877) or email me (russ@brokerruss.com)  for a prompt response.

Now, more than ever buyers and sellers will benefit from the advice and guidance that an experienced REALTOR® can provide. If you are in the San Francisco Bay Area, I invite you to take a look at our Resource Center, www.AboutBayAreaHomes.com. There you will find links for active home listings, including bank owned and short sales, home loan information, market activity reports, home seller strategies, staging and decorating, a suite of 19 calculators, plus my book, “Let’s Make a Deal, The Insiders Guide to Buying and Selling Real Estate” and more. Of course I am always available to discuss your real estate or mortgage related questions or concerns, just call, text or email me for a prompt response.

Russ Boyd and his team professionally assist buyers, sellers and homeowners in the Peninsula Communities of the San Francisco Bay Area. They serve clients in San Mateo, San Francisco, Santa Clara, Alameda and Contra Costa counties. Licensed as a Real Estate Broker by the California Department of Real Estate, 01264240.

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Market Updates and Commentary No comments yet

Is 2010 the Year of the Short Sale?

By on March 6th, 2010

Videos by Russ Boyd are syndicated across the internet by

Last week I attended an invitation only audio conference that included panelists from Bank of America, Wells Fargo Bank and Freddie Mac. Based on my experience with representing clients in short sales last year, the idea 2010 will be “the year of the short sale” did not sound like the “good news”.

I’m sure that most buyers, sellers, escrow officers and agents involved in short sales transactions last year would concur…the track record is dismal, with an unofficial fall out rate at 80 to 90 percent of short sales transactions.

Short sale properties are most often purchased by first-time homebuyers. Currently, mortgage servicer approval on offers for short sale properties can take several months, making these transactions difficult for current homeowners who often need to conduct not one, but two, transactions in quick succession. In contrast, first-time homebuyers more often have flexibility around the timing of short sale closings.  According to the panelists, effective April 5, 2010, the new Treasury Department guidelines contained in the Home Affordable Foreclosure Alternatives Program (HAFA) will go a long way to alleviate the challenges that have made short sales difficult and frustrating.

As can be seen here, short sales have become the largest category of distressed property transactions, accounting for well over a third of these transactions, according to the latest Campbell/Inside Mortgage Finance Monthly Survey of Real Estate Market Conditions.

Short sales have become a preferred means of resolving mortgages in default, both for large lenders and for the government agencies supporting lenders’ efforts. Short sales typically result in lower lender losses and houses left in more saleable condition. Moreover, sellers that agree to a short sale can often buy another house with mortgage financing after only two years. For borrowers going though the foreclosure process, mortgage financing can be unavailable for a period of five to seven years.

While this varies somewhat county by county, my experience is that short sales or bank owned homes represent a high percentage of homes for sale in the $500,000 price range and below.

Bank owned and short sales require a high level of expertise. I am always available to answer your questions or discuss your concerns. Simply text, call (650 325 7877) or email me (russ@brokerruss.com)  for a prompt response.

Now, more than ever buyers and sellers will benefit from the advice and guidance that an experienced REALTOR® can provide. If you are in the San Francisco Bay Area, I invite you to take a look at our Resource Center, www.AboutBayAreaHomes.com. There you will find links for active home listings, including bank owned and short sales, home loan information, market activity reports, home seller strategies, staging and decorating, a suite of 19 calculators, plus my book, “Let’s Make a Deal, The Insiders Guide to Buying and Selling Real Estate” and more. Of course I am always available to discuss your real estate or mortgage related questions or concerns, just call, text or email me for a prompt response.

Russ Boyd and his team professionally assist buyers, sellers and homeowners in the Peninsula Communities of the San Francisco Bay Area. They serve clients in San Mateo, San Francisco, Santa Clara, Alameda and Contra Costa counties. Licensed as a Real Estate Broker by the California Department of Real Estate, 01264240.

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Market Updates and Commentary No comments yet

It May be Time to Consider an ARM Loan

By on March 1st, 2010

Videos by Russ Boyd are uploaded to Youtube, MetaCafe, Veoh, Vimeo and Yahoo Video by

Remember back in mid 2007, just before the housing bubble burst?  At that time most buyers and borrowers opted of ARM loans with a fixed rate period, typically 3, 5 or 7 years.  Conforming fixed rates were in the high 6’s at that time and 1 year fixed ARM loans were in the mid 5’s without a “teaser” rate.   The rate and payment difference made a lot of sense for many buyers and homeowners in the high priced bay area.  Gone are teaser rates, option ARM loans with negative amortization and the entire sub prime mortgage industry.

Over the past two years the fed has done everything possible to bring mortgage rates down and now conforming fixed rate loans hover in the 5% range.  Bringing fixed rates down also brought about what is called an “inverted yield curve”.  That’s when long term rates are lower than short term rates.  As you can see here, the yield curve inverted in late 2008 and mid 2009.  At other times during the past two years ARM loans didn’t make sense relative low cost fixed loans.

 But all that’s soon to change.  The period between 2005 and 2007 reflects a more traditional spread between fixed rates and various ARM loans.  You can see here the spread between fixed rates and ARM’s has been increasing since 12/08 and we may be entering a time where it may be worth your while to consider an ARM loan. When the rates were comparable a fixed rate loan makes the most sense, but with rates beginning to creep up ARM rates can have a healthy edge.

The first thing to ask yourself is what your future plans are.  Do you plan to expand your family any time soon? Or, do you only plan to live in the area a few years or maybe you work for a company that relocates you often.  If you answer yes to any of these questions an ARM with a fixed period may make smart financial sense.   For example, today, a 5 year fixed ARM is a full percentage point below a fixed rate. At today’s rates, the difference in interest paid over five years on a $400,000 loan would nearly $15,000.

Rates are still low and a fixed rate loan is very appealing, however, as the low rate market shifts, other loan products may be worth considering.

I am always available to discuss your concerns or answer your questions about real estate or mortgage loans, just text, call (650 325 7877) or email me for a prompt response.

Now, more than ever buyers and sellers will benefit from the advice and guidance that an experienced REALTOR® can provide. If you are in the San Francisco Bay Area, I invite you to take a look at our Resource Center, www.AboutBayAreaHomes.com. There you will find links for active home listings, including bank owned and short sales, home loan information,  market activity reports, home seller strategies, staging and decorating, a suite of 19 calculators, plus my book, “Let’s Make a Deal, The Insiders Guide to Buying and Selling Real Estate” and more. Of course I am always available to discuss your real estate or mortgage related questions or concerns, just call, text or email me for a prompt response.

Russ Boyd and his team professionally assist buyers, sellers and homeowners in the Peninsula Communities of the San Francisco Bay Area. They serve clients in San Mateo, San Francisco, Santa Clara, Alameda and Contra Costa counties. Licensed as a Real Estate Broker by the California Department of Real Estate, 01264240.

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Market Updates and Commentary No comments yet

Jumbo Loans-The Missing Piece of the Puzzle

By on February 22nd, 2010

Videos by Russ Boyd are uploaded to Youtube, MetaCafe, Veoh, Vimeo and Yahoo Video by

While it’s quite clear that there has been steady market improvement during the past year, there is still a missing piece of the puzzle for homes priced above $1,000,000.

Now let me be clear, there are some large lenders that have been coming back into the Jumbo Loan market (above $729750 in the Bay Area), however pricing and strict guidelines including a minimum of 20% down, make it difficult for buyers. And if buyers are having a tough time buying, then sellers will have a tough time selling.

Immediately after the mortgage melt down of 2007 the market for Jumbo loans virtually vanished….. the markets became risk adverse, essentially eliminating the secondary market for the resale of  jumbo loans. In other words, if a lender were to make jumbo loans they would have to hold it in their own portfolio and at the time, banks didn’t have much interest in holding loans with a stigma of high risk.


This graph depicts the “rate spread” between conforming and jumbo loans. During the past two years the spread between conforming loans and jumbo loans grew from an “historical” .375%, to well over 1.50%. That spread began to narrow in late 2009 as some large banks like Bank of America, Wells Fargo and Citi cautiously re-entered the jumbo market.

The lack of a secondary market for jumbo loans has a lot to do with the drop in the median price of homes….if the average buyer finds jumbo loans difficult and expensive with high down payment requirements they tend to stay out of the million dollar plus home market.

Take a look here at how the number of Jumbo Loans has decreased since mid 2007.

On the supply side, only those buyers that must sell put their home on the market and on the demand side there are fewer buyers, so the number of high end sales has dimished.

The fed is the secondary market for conforming loans. Whether the fed continues to fuel the secondary market for conforming loans after March 2010 remains to be seen. In my opinion, real stability won’t return to the housing market until the capital markets regain confidence in the housing sector without support from the fed. As market confidence grows, we should see investment capital return and a secondary market for conforming and jumbo loans reestablished.

A viable secondary market for both loan segments is vital to the overall health and vitality of the housing market.

As can be seen in the latest Bay Area Market Activities Reports, Bay Area housing inventory is at a low point. There is strong competition for well presented homes priced to the market in the bay area. Since there is a limited supply of above million dollar priced homes on the market, sellers are well advised to price strategically and do all recommended pre listing improvements including staging.  Homes that are presented to sell at an attractive price bring in buyers and multiple offers are being seen even in the higher price ranges.

Buying or selling a home is serious business. In these complex times, I am always available to answer your questions or discuss you concerns.  Simply call, text or email me for a prompt response.

Now, more than ever buyers and sellers will benefit from the advice and guidance that an experienced REALTOR® can provide. If you are in the San Francisco Bay Area, I invite you to take a look at our Resource Center, www.AboutBayAreaHomes.com. There you will find links for active home listings, including bank owned and short sales, home loan information, market activity reports, home seller strategies, staging and decorating, a suite of 19 calculators, plus my book, “Let’s Make a Deal, The Insiders Guide to Buying and Selling Real Estate” and more. Of course I am always available to discuss your real estate or mortgage related questions or concerns, just call, text or email me for a prompt response.

Russ Boyd and his team professionally assist buyers, sellers and homeowners in the Peninsula Communities of the San Francisco Bay Area. They serve clients in San Mateo, San Francisco, Santa Clara, Alameda and Contra Costa counties. Licensed as a Real Estate Broker by the California Department of Real Estate, 01264240.

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Market Updates and Commentary No comments yet

Are you a Ready, Willing and Able Home Buyer?

By on February 16th, 2010

Videos by Russ Boyd are uploaded to Youtube, MetaCafe, Veoh, Vimeo and Yahoo Video by

We often hear the question, “is this a good time to buy”. It occurs to me that what is really being asked is, “are prices going to go down further?” We know that buyers have been blessed with low mortgage interest rates and the first time homebuyer tax credit, which was recently expanded to include “move up” buyers.  We have heard so many times in the last 12 months that now is a great time to buy. But is this true?  So when is the right time to buy?

In my opinion, the right answer is that the best time to buy a home is when you are ready, willing and able to buy.

Let’s examine those three points:

1. To determine if you are “ready”, ask yourself why are you considering buying a home? Is it reasonable to think you will be able to live in your home at least five years? Have you explored the pros and cons? Homeownership is a huge responsibility that fortunately has many rewards, not the least is that you will be building equity for your future.

2. Are you “willing” to take on the responsibility of homeownership? Like all things worth having, homes require maintence and attention. A side benefit is that you can bring your own “sense of style” to your home. You can own the experience.

3. A prime consideration is your ability to buy. Are you planning to move on or are you willing to stay put? How is your job and income stability? What about down payment, credit and ability to make the payments? All this and more makes up your ability to buy.

If you decided that you are ready, willing and able, what about market conditions?

Let’s start with interest rates; during the past two years, buyers have been very fortunate with low interest rates in the high 4′s to mid 5′s and the first time home buyers tax credit, which expires at the end of April.

The Federal Reserve implemented a plan to help keep mortgage interest rates low. It was a way to keep fears out of the market and stimulate the economy. That was the original plan. What is the plan now?  If we are to believe what we hear from Washington, this plan will come to a halt by the end of March.

Another market condition is housing inventory. Available inventory has been shrinking over the past year as investors and first time buyers purchased low priced bank owned and short sale homes. So what does it all mean?  It means you have to be ready, willing and able. In other words, committed to the process.

So is time running out? Of course not, whther the market is contracting or expending, whether rates are up or down, people  buy homes. Whether to buy or not should come with careful consideration and planning. And part of this planning should include real estate and mortgage professionals. You should not just buy because you could get a tax credit or because mortgage rates are low, you should buy a home because it makes sense as an investment, it provides the kind of shelter you want for you and your family and it brings enjoyment to your life.

If you are waiting for rates or prices to drop further or are hoping for another extension of the tax credit, let’s face it, you may be “able” but are you really “ready and “willing”?

Buying or selling a home is serious business. In these complex times, I am always available to answer your questions or discuss you concerns.  Simply call, text or email me for a prompt response.

Now, more than ever buyers and sellers will benefit from the advice and guidance that an experienced REALTOR® can provide. If you are in the San Francisco Bay Area, I invite you to take a look at our Resource Center, www.AboutBayAreaHomes.com. There you will find links for active home listings, including bank owned and short sales, home loan information, market activity reports, home seller strategies, staging and decorating, a suite of 19 calculators, plus my book, “Let’s Make a Deal, The Insiders Guide to Buying and Selling Real Estate” and more. Of course I am always available to discuss your real estate or mortgage related questions or concerns, just call, text or email me for a prompt response.

Russ Boyd and his team professionally assist buyers, sellers and homeowners in the Peninsula Communities of the San Francisco Bay Area. They serve clients in San Mateo, San Francisco, Santa Clara, Alameda and Contra Costa counties. Licensed as a Real Estate Broker by the California Department of Real Estate, 01264240.

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Market Updates and Commentary No comments yet

Let’s Make a Deal-Washington Style

By on February 9th, 2010

Videos by Russ Boyd are uploaded to Youtube, MetaCafe, Veoh, Vimeo and Yahoo Video by


 

We’ve all seen examples of what looks like a “sweetheart” government deal that benefits Wall Street at the expense of Main Street, right? 

Well have I got a story for you….a deal made by the FDIC when it sold the assets of failed  Indy Mac Bank to One West Bank in March 2009.  

You’ve got to see this five minute video that explains not only how One West Bank is “banking” money that is coming from the US Treasury and has a deal with absolutely no risk. 

After watching the video, I’m sure you will agree that this is a government gone wild with our money.  I’ve sent a copy of this to my Congressional Representative and if you feel like I do that Washington has total disregard for the tax payer, please do the same.

In these complex times, I am always available to answer your questions or discuss you concerns.  Simply call, text or email me for a prompt response.

Now, more than ever buyers and sellers will benefit from the advice and guidance that an experienced REALTOR® can provide. If you are in the San Francisco Bay Area, I invite you to take a look at our Resource Center, www.AboutBayAreaHomes.com. There you will find links for active home listings, including bank owned and short sales, home loan information,  market activity reports, home seller strategies, staging and decorating, a suite of 19 calculators, plus my book, “Let’s Make a Deal, The Insiders Guide to Buying and Selling Real Estate” and more. Of course I am always available to discuss your real estate or mortgage related questions or concerns, just call, text or email me for a prompt response.

Russ Boyd and his team professionally assist buyers, sellers and homeowners in the Peninsula Communities of the San Francisco Bay Area. They serve clients in San Mateo, San Francisco, Santa Clara, Alameda and Contra Costa counties. Licensed as a Real Estate Broker by the California Department of Real Estate, 01264240.

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Market Updates and Commentary No comments yet

Onward and Upward for Bay Area Real Estate

By on February 4th, 2010

Videos by Russ Boyd are uploaded to Youtube, MetaCafe, Veoh, Vimeo and Yahoo Video by

The number of sales of new and existing single-family houses and condominiums increased13.6 percent increase in December from a year ago said a report released MDA DataQuick. Last month’s median sales price for the nine-county Bay Area represented a 15.2 percent gain from $330,000 in December 2008 to $380,000 in December 2009.


Continuing the encouraging news over the past few months, December was the third month in row where there was a year-to-year price gain in the region following 22 months of year-to-year price drops.

The rising prices can be traced to competition among buyers for a diminishing pool of bank owned homes, plus low rates and the Federal Tax Credit.

For now foreclosures are becoming a smaller part of the resale market, accounting for 32.3 percent of existing homes sales last month in the Bay Area. That’s down from 48.3 percent in December 2008 and a peak of 52 percent hit last February.

Still, some observers have expressed concerns that loan modifications programs are only delaying the foreclosure process and that more bargain-priced foreclosures that are in the pipeline could push prices down.

There were bigger year-to-year gains in the number of homes sold in more expensive parts of the Bay Area such as San Mateo County, Santa Clara County and San Francisco. But in Alameda County there was small gain in sales while Contra Costa County saw a drop in sales.

As our Bay Area Activity Reports confirm, Alameda County, had a 4 percent increase in home sales from a year ago while the median sales price of $360,000 represented a 6.5 percent gain. In Contra Costa County, the median sales price of $287,500 was a 13.9 percent gain. In San Mateo County, home sales increased 47% and the median sales price of $586,500 is a 9.2 percent gain.

Competition for lower-priced homes is helping to push upthe median price in all bay area counties.

At the lower end, investors and first time home buyers seeking to take advantage of the federal income tax break are the primary buyers

There are increases in notices of defaults and foreclosures in the high-end million-dollar plus market. That’s called the tail of the dragon. In a recovering market, the high end is the last to drop and the last to recover.

John Walsh, MDA DataQuick president said “the market appears to be improving but normal is not here yet.  Sales distribution is still lopsided towards lower-cost homes, driven by tax incentives and distress activity.”

In these complex times, I am always available to answer your questions or discuss you concerns.  Simply call, text or email me for a prompt response.

Now, more than ever buyers and sellers will benefit from the advice and guidance that an experienced REALTOR® can provide. If you are in the San Francisco Bay Area, I invite you to take a look at our Resource Center, www.AboutBayAreaHomes.com. There you will find links for active home listings, including bank owned and short sales, home loan information, market activity reports, home seller strategies, staging and decorating, a suite of 19 calculators, plus my book, “Let’s Make a Deal, The Insiders Guide to Buying and Selling Real Estate” and more. Of course I am always available to discuss your real estate or mortgage related questions or concerns, just call, text or email me for a prompt response.

Russ Boyd and his team professionally assist buyers, sellers and homeowners in the Peninsula Communities of the San Francisco Bay Area. They serve clients in San Mateo, San Francisco, Santa Clara, Alameda and Contra Costa counties. Licensed as a Real Estate Broker by the California Department of Real Estate, 01264240.

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Market Updates and Commentary No comments yet

Insiders Insight-Reporting on the Reports

By on January 29th, 2010

Videos by Russ Boyd are uploaded to Youtube, MetaCafe, Veoh, Vimeo and Yahoo Video by


Three news reports caught my eye in the past week that shed light on the state of the real estate market.

The California Association or Realtors ® reported that homes sales increased 1.7 percent in December in California compared with the same period a year ago, while the median price of an existing home rose 8.4 percent. Furthermore, for the second consecutive month, California’s median home price rose year-to-year in December, and had the largest year-to-year increase in more than three years. The state’s median price also remained above $300,000 for the second straight month. All this sales activity has led to a reduction of inventory, C.A.R.’s Unsold Inventory Index fell to 3.8 months in December, compared with 5.6 months in December 2008. As has been the case for much of the year, unsold housing inventory is between 2 and 3 months in the San Francisco Bay Area Counties. Statewide, three Bay Area cities, Los Altos, Palo Alto and Los Gatos and were in the top 10 for the highest median prices.


As can be seen here, according to recently released data in the latest Case-Shiller Home Price Index, all of the cities in the “20 City Composite” reading have improved for the past 10 months. The report revealed that four metropolitan areas including, the San Francisco Bay Area, reflected value gains in December and have shown monthly gains for over the past six months.


The third report that caught my attention was the November Federal Housing Finance Agency’s monthly House Price Index. According to the FHFA report, U.S. house prices rose 0.7 percent on a seasonally adjusted basis from October to November and for the 12 months ending in November, U.S. house prices rose 0.5 percent. I should point out that the FHFA monthly index is calculated using purchase prices of houses backed by mortgages that have been sold to or guaranteed by Fannie Mae or Freddie Mac. Also worth noting is that most homes being sold today are financed using conforming or high balance conforming loans.


The Pacific Region, which includes California, reported a year over year increase of 2.3 percent. As this graph indicates, the low point for home prices in the U.S hit bottom in November 2008.

A question that we are no longer asked is, “when will the market bottom?” It’s clear that was 12 to 14 months ago. The question for would be home buyers and home sellers is how to make the most in this market. While all these and other reports indicate an improving real estate market we still have a long way to go. In these complex times, I am always available to answer your questions or discuss you concerns.  Simply call, text or email me for a prompt response.

Now, more than ever buyers and sellers will benefit from the advice and guidance that an experienced REALTOR® can provide. If you are in the San Francisco Bay Area, I invite you to start at our Resource Center, www.AboutBayAreaHomes.com. There you will find links for active home listings, including bank owned and short sales, home loans, market activity reports, home seller strategies, staging and decorating, a suite of 19 calculators, plus my book, “Let’s Make a Deal, The insiders Guide to Buying and Selling Real Estate” and more. Of course I am always available to discuss your real estate or mortgage related questions or concerns, just call, text or email me for a prompt response.

Russ Boyd and his team professionally assist buyers, sellers and homeowners in the Peninsula Communities of the San Francisco Bay Area. They serve clients in San Mateo, San Francisco, Santa Clara, Alameda and Contra Costa counties. Licensed as a Real Estate Broker by the California Department of Real Estate, 01264240.

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