Fun with Numbers

Even though there are sporadic reports that median home prices inched up slightly in April compared to March, generally median sales prices have been down across the board for some time.

The median sales price is the price point where half the homes sold for more and half sold for less. One of the problems with "median" is that it's often thought to be an indicator of overall value of homes. But in our current market, most of the activity has shifted to lower priced homes. In some parts of the larger Bay area, these sales are dominated by foreclosures.

In Marin county, here's a little graph that shows this change:

This year so far there are almost 20% more properties selling in the below $1million range than was the case in any of the previous four years.

I like to think of "median" as more of an indicator of where the action is. There are better measures of value.

New Listing Coming Soon ...

• A Glen Park beauty that can be used as a single family home (which is how the current owner used it), two TICs (eligible for fast-track condo conversion), or an investment property with two rentable apartments without the new owner having to make any changes.
• One of the prime features that makes this property special is a flat side yard that's big enough to let you indulge your yen for gardening, provide a fun and safe places for the kids play on the newly sodded lawn, relax on the patio, and entertain.
• The top floor has two bedrooms, bath, remodeled kitchen, formal dining room, formal living room, breakfast room arranged around a center atrium. There's a one-car garage for this unit.
• The lower floor has two bedrooms, two baths, and remodeled kitchen open to the living area. This unit has direct access to the side yard.

Search for Open House Listings at the Source

The San Francisco Association of Realtors has created a new web site that provides public access to all listings in the MLS that have open house dates/times scheduled.

You can search by area, price, type of property, number of bedrooms etc.

Bookmark this site for future use!

First-time Home Buyer's Credit Explained

Here's a summary of the tax credit for first-time home buyers passed by congress earlier this year:

Who Qualifies?
First-time home buyers who purchase homes
between January 1, 2009 and December 1, 2009. To qualify as a “first-time
home buyer” the purchaser or his/her spouse may not have owned a residence
during the three years prior to the purchase.
Which Properties Are Eligible?
The 2009 First-Time Home Buyer Tax Credit may be applied to primary residences, including: single-family homes, condos, townhomes, and co-ops.
How Much Will the Credit Be?
The maximum allowable credit for home buyers is $8,000. Each home buyer’s tax credit is determined by two factors:
>>The price of the home—the credit is equal to 10% of the purchase price of the home, up to $8,000.
>>The buyer's income—single buyers with incomes up to $75,000 and married couples with incomes up to $150,000—may receive the maximum tax credit.
If the Buyer(s)’ Income Exceeds These Limits, Can He/She Still Get a Credit?
Yes, some buyers may still be eligible for the credit.The credit
decreases for buyers who earn between $75,000 and $95,000 for single buyers and
between $150,000 and $170,000 for home buyers filing jointly. The amount of the
tax credit decreases as his/her income approaches the maximum limit. Home buyers
earning more than the maximum qualifying income—over $95,000 for singles and
over $170,000 for couples are not eligible for the credit.
Will the Tax Credit Need to Be Repaid?
No. The buyer does not need to repay the tax
credit, if he/she occupies the home for three years or more. However, if the
property is sold during the three-year period, the credit will be recouped on
the sale.

Click here for a document published by the National Association of Realtors® with more details.

Some good news on the mortgage front

Conforming loan limits are now up to $729,750.

With a good credit rating and 20% down, loans are available with 4.875% interest rates (1 point original fee).

... and some not-so-hopeful news

... yet there are still plenty of signs that it will be a while before signs of recovery begin impacting most folks:

Census Bureau reports residential mover rate lowest on record

The U.S. Census Bureau recently reported that the national mover rate declined from 13.2 percent in 2007 to 11.9 percent in 2008, the lowest rate since the bureau began tracking these data in 1948. In 2008, 35.2 million people one year and older
changed residences in the U.S. within the past year, representing a decrease
from 38.7 million in 2007 and the smallest number of residents to move since
1962, according to the report.

Some Hopeful Signs ... April Consumer Confidence Jumps

As reported by the California Association of Realtors:

Consumer confidence rose more than 12 points in April to 39.2 (1985=100),
compared with 26.9 in March, according to a recent Conference Board report. The
Board’s Present Situation Index increased to 23.7 in April from 21.9 for the
previous month, while its Expectations Index jumped more than 19 points to 49.5
in April compared with 30.2 in March."Consumer confidence rose in April to its
highest reading in 2009, driven primarily by a significant improvement in the
short-term outlook,” said Lynn Franco, director of The Conference Board Consumer
Research Center. “The Present Situation Index posted a moderate gain, a sign
that conditions have not deteriorated further, and may even moderately improve,
in the second quarter. The sharp increase in the Expectations Index suggests
that consumers believe the economy is nearing a bottom, however, this Index
still remains well below levels associated with strong economic growth."
Consumers' short-term outlook improved significantly in April. Those
anticipating business conditions will worsen over the next six months declined
to 25.3 percent from 37.8 percent, according to the report, while those
expecting conditions to improve increased to 15.6 percent from 9.6 percent in
March.