Realtor News

**This just in from the California Assoiciation of Realtors**

FED TO ESTABLISH NEW OVERSIGHT PANEL OF SUBPRIME LENDERS

The Federal Reserve Board (FRB) announced July 17 the launch of a new pilot program aimed at strengthening federal and state oversight of subprime mortgage lender practices, as well as the brokers who originate these loans.

The collaborative state/federal program, slated to begin in 2008, will include oversight from the Board of Governors of the Federal Reserve System, the Office of Thrift Supervision, The Federal Trade Commission, and state agencies represented by the Conference of State Bank Supervisors and the American Association of Residential Mortgage Regulators.

According to the FRB, the oversight committee members will conduct regular, targeted compliance reviews of selected non-depository lenders with significant subprime mortgage operations, share information with one another about their reviews and investigations, and make joint recommendations for corrections.

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!

Hungry?

Well, our own vegetable gardens may not be producing anything edible yet (I should only speak for myself here), but fortunately someone has been thoughtful enough to grow some food for us so we don't starve, and it's out there at a local farmer's market, ready for our frying pans. Really, there is no good reason to buy a flavorless, mealy tomato from a giant food mart when you can find a place to buy fresh, locally grown food any day of the week, close to home. Besides fresh veggies, you will often find a variety of other goodies: hot prepped meals, local artisans & live entertainment; call a friend and make a date! -And just when I thought I'd have to compile the list of resources myself, I discovered this list, from SF Gate, an online version of The San Francisco Chronicle. Use this list to find a farmer's market near you.

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