Homey Things to Do When You Aren't Shopping for a Home...

First of all, HAPPY NEW YEAR! I know, I know; it's been a while since I've posted but I resolve to be here more often, I promise.

Here's a short list of things to do on Saturdays, because I know you are busy at open houses on Sundays... Not busy with open houses on Sundays? Call me and I will show you some properties myself.

MAKE CHEESE
Yes, you don't need huge kitchen skills to make a quickie ricotta at home. Follow this link and let me know how it turns out! By the way, you can substitute white vinegar for the lemon juice in his recipe.

LEARN TO KNIT
Come on, everyone's doing it; learn what the cool kids are so excited about. Here's a good link to a basic video to get you started. I also find that www.knittinghelp.com is a great site for continuing education.

TEACH YOUR DOG (AND YOURSELF) A USEFUL SKILL
Your dog wants to hang out with you. Your dog wants to go places with you. Walking your dog on a loose leash is more fun for both of you, and this skill makes it possible to carry a grocery bag and hold the leash at the same time. Imagine that! Here's how.

Have any ideas for my next list of homey things to do when you aren't shopping for a home? Email me.

This Week in Coldwell Banker Real Estate

From our Coldwell Banker president:

Berkeley/East Bay offices report that we were inundated with multiple offers this week and large turnouts at open houses. 75% of our deals this week saw multiple offers, any number from 2-8 on seller owned and 12-18 on bank owned. Cash is still king on many deals because of increasing anxiety about appraisals.

Castro Valley: we are seeing cash offers everywhere and one agent reports that she has been outbid from the last five offers she has written by all cash deals. The number of multiples in the low range markets has been in the range of 10-60 offers, to give you an idea as to the inventory shortage we are facing here in our micromarket. Agents are waiting for banks to release more REOs. One thing is certain, we are definitely a recovering market.

The Danville office reported the activity level is good but we need more inventory. Lots of buyers are jumping off the fence.

In Fremont the listing inventory is reducing.

The Livermore office reports: Our pending sales are up in the office and the overall market in the Tri-Valley area remains strong. Multiple offers are still the rage below $500,000.

The Pleasanton office reports homes under $450K are moving very fast with multiple offers.

KOHL'S Withdraws from Point Isabel!

UPDATE: Kohl's Withdraws Application for Store at Point Isabel

Kohl's has withdrawn its application for City Council approval, citing the general state of the economy. According to the developer, Oliver & Company, the company's revised sale projections do not justify the construction of a store at that site. Hopefully, the strong opposition from the community had something to do with it as well. Thanks to those who wrote e-mails and letters and showed up at the previous city meetings. This action means we do not need to show up at the Richmond City Council meeting on Feb. 17 after all. However, it's possible that the developer will try to have the area rezoned at a later date with a different tenant, so we need to remain vigilant. Word has it that a draft of Richmond's new General Plan will be available in a month. If it calls for any rezoning at Point Isabel, we'll need to send comments to City Hall. Watch for updates from PIDO (click on the Join Our Mailing List button at lower right if you're not already on our list; we won't share your information) and check our Web site (pido.org).

Bulb 101

Since everyone wonders what to do once their bulbs are finished flowering, I thought I'd post a little bulb primer.

From Ed Hume;

Q: How do you care for lilies, gladiolas, and irises after they have flowered, and is it the same as for tulips and daffodils?

A: Immediately after flower, I think it is a good idea to feed the foliage of all bulbs with 0-10-10 fertilizer. This helps build strength back into the bulbs, roots and tubers for the following year. If you live in the NW or other moderate climate areas, these bulbs can be left in the ground year-round. All you need to do is dig and divide them every few years, then replant them immediately if you wish. Iris and gladiolas need full sun, while lilies need a little shade for best and longest flowering.

From the Mouth of the Money Man: Interview Part 2

"...guidelines have been changing daily, and banks have been closing weekly."

How does it affect current sellers?

"If a seller is reviewing an offer with a buyer’s pre-approval, it is a good idea to get a second opinion from not only the realtor, but also a loan consultant. As for the buyers, they should call me (chuckles) to get a pre-approval. Sellers should always have the offers with a pre-approval double checked, especially if the offer is less than 10% down.”

Why is that?

“Because many programs that require less than 10% down payment that are no-income qualifying have disappeared in the last month.”

And what is a no income qualifier?

“A no income qualifier is when the lender doesn’t require income verifications such as w2’s, pay stubs or full tax returns.”

Why is it important for buyers to be pre-approved prior to writing an offer?

“Lender approval means a true pre-approval, not a “pre-qualification”. “Pre-qualified” means nothing has been verified, “lender approved” means income and assets have been verified and the loan is pre-approved, the only condition is to find the house and have it appraised.”

Should buyers be afraid to be buying in a market like this?

“Absolutely not. Conforming loans (under $417K) are aggressively priced, and current values are perfect for buyers."

A Weekly Update from My Boss

Here's what Larry Klapow of Coldwell Banker has to say:

Coldwell Banker Weekly Market Watch

July 29, 2007

An island of good news appeared this week in a sea of negative media regarding weakness in the housing market. The National Association of Realtors' pending home sales index jumped five percent to 102.4 in June.

The index was created to be a more forward-looking snapshot on home sales than NAR's existing home sales report, which charts sales at the time of closing. The pending home sales index tracks when a sales agreement is signed, generally a month or two ahead of closing. The nationwide report is good news in that it indicates that home sales could see an increase in coming months.

In the Peninsula and San Francisco markets, the tighter inventory levels are creating pent-up demand among potential buyers. In Palo Alto, multiple offers on one property went up to 26. Another transaction closed in less than one week for a $16 million property. In San Francisco, a home in the West Portal area listed for $999,000 and received eight offers.

Considering that our more than 500 homes held open last week saw a surprising amount of traffic in most areas, it could be that those buyers who are unable to move into to the City or the Peninsula communities are starting to look in areas with more available inventory and a wider selection. In the Tri-Valley area, higher inventory is starting to level off while pending sales have remained relatively steady. Walnut Creek notes an increase in the number of entry level and mid-range priced homes sold. A small Richmond home and a Berkeley property each received nine offers.

In the mortgage arena, the media continues to hammer us with bad news. Since when is needing documentation, a decent credit score and perhaps a down payment a bad thing? The lenders are attempting to get back to where we once were and clean up years of sloppy practices. This is not a liquidity crisis that the media would like to make it out to be. The fact is that the fundamentals of the housing market are still strong. Interest rates are still low and we have a decent economy and job market. The stock market took a haircut last week but is still very strong when you look at the whole year. In the upscale sector there continues to be great demand. For the starter and median price ranges, the market and buyers are going to need to adjust to new lending standards. If you are a seller in this sector now, get the price right the first time or reduce if needed because we will be dealing with media shock and an adjustment period for a while.

Berkeley's Gourmet Ghetto on YouTube

Berkeley may be known for its political activism, historically significant architecture and year-round gorgeous weather, but I've always felt the world should also know about our serious foodie leanings.

I've discovered a little gem on YouTube that proves someone else feels the same way. We are now on the YouTube map with a short video all about the excellent restaurants just outside my office door. Dangerously close, I say. We all know about Alice Waters' revolutionary kitchen at Chez Panisse, but consider as an alternative a slice of pizza from the Cheese Board Collective. Best enjoyed on the grass median in the middle of the road in front of the collective, this is the true food of the gods and a real North Berkeley neighborhood experience.

We Want Richmond View!

Just a quick note about what's happening in Richmond View this week: the home at 1826 Ralston Ave is receiving 7 offers today. Is the market cooling off? Not there. This property gained alot of attention in the past few weeks because it was a classic mid-century design in need of easy updating, and everyone loves a moderately priced easy fixer.

How to explain other moderatly priced properties in easy move-in condition lingering on the market? This is where the market feels unpredictable.

True Love!

I attended a wedding reception yesterday and today I'm feeling all warm and lovey-dovey because of it. This party was held outdoors at Kennedy Grove in Contra Costa County. Pretty pretty pretty! It was part potluck picnic, part catered lunch, plus there was croquet and petanque to keep us entertained.

I'm thinking about other ideal places one could get married, celebrate a marriage, or propose a marriage outdoors around the East Bay... so many! Stuck for ideas? Here are few:

Wildcat Canyon (anywhere on a hiking trail would be a sweet proposal moment)
Berkeley Marina (all-purpose group picnic facilities with a view of S.F. Bay, hotel for out-of-town guests)
The Brazilian Room at Tilden Park (big lawn, a little fancy; a popular wedding spot)
Temescal Beach House (at the lake!)

Any other ideas for us? Feel free to contribute yours!

Anyway, Back to Real Estate Updates

Another bit of weekly wisdom from our Coldwell Banker President:

Perhaps the long Memorial Day weekend gave both buyers and sellers the opportunity to reconsider their standoff positions. Sellers are starting to price realistically, and buyers are starting to write more reasonable offers, as evidenced by the fact that sales activity increased significantly during the week in most areas.

We held almost 400 homes open during the week and, while the lower-than-normal attendance level was anticipated, the conference rooms of most offices were busily engaged in negotiation and the closing of deals.

Still, the Bay Area market continues to be predictably unpredictable. In most areas, it is neighborhoods, schools, locations and streets that are generating the interest and buyer activity more so than the actual homes themselves. Berkeley, Oakland and El Cerrito saw multiple offers on homes in all price points. The Mission San Jose area of Fremont saw 10 offers on a listing that sold for 10% over list price. In San Francisco, two properties in the Sunset district received 11 and 22 offers respectively. An open house held over the holiday weekend by our Livermore office had 80 people through and sold with multiple offers after being on the market for six days. In Kentwood, a $3.95 million listing closed for $5 million after nine offers. Condition, price and presentation are, of course, crucial to a timely sale, however they are less important in highly desirable areas, or if the buyer perceives value.

In most areas we are still dealing with a split market. The high end is performing quite well while the first time home price ranges prove to be more challenging. You have heard it many times before but it is up to price and condition. Your property needs to be the best price in it’s class and show well also. Buyers in the entry level price range are definitely bargain shopping. As the old saying goes, if you want the property to sell fast, make it easy to buy. Instead of just using price reductions, you may want to look at offering other terms like closing cost assistance to make the property more attractive to buyers. As we start to move toward summer and schools let out, it will be interesting to see if this brings more buyers to the market. The economy looks strong and a recent report shows unemployment at very low levels. It takes jobs and increasing wages to keep prices moving up over time. The California affordability index sits at 25%, up from a recent 14%. This is due to price decreases in outlying areas but good news none the less.

Of the offices reporting, listing inventory remained steady for 16, increased for five and decreased for eight. Sales activity remained steady for 9 offices. It increased for 13 offices, and decreased in only seven.

Larry Klapow
President
San Francisco Bay Area

Calgon Take Me Away!

Have spring fever; will (dream of) travel... Tired of working when it seems like everyone else is on an extended Palm Springs sabatical? This is a real estate agent's busiest time of the year so I'm making hay while the sun shines, but people, just look at this weather! I know I can't be the only one who dreams of taking a wee vacation from my home and staying somewhere else in the same town, just overnight if nesessary... so look what I have for you dreamers! Bed and Breakfast sources for the weary. This list will also come in handy for those of you locals with visiting family or friends who would be more comfortable in their own temporary nest.