At least 3 counties had their best January in 5 years or more

For the Bay Area as a whole, sales rose 6.8%.

The President of the Santa Clara County Association of REALTORS noted that “We have multiple offers on almost every sale in the lower part of the market,” said Barbara Lymberis. “If people are thinking we haven’t hit bottom, they’re wrong.”

A first time homebuyer inSan Josewas quoted to say, “Every day something new comes on the market; we go to make an offer and there’s already other people making offers,” she said. “If we’re not on it within an hour, there’s already been people making offers on it.”

Here are the median single family home prices for each county

Santa Clara        $468,500

San Mateo          $527,500

Alameda             $325,000

Contra Costa      $245,000

BAY AREA:        $350,000

According to DataQuick, distressed sales account for about 50% of all sales activity across the 10 county bay area region.

Overall, Bay Area prices were between flat to down 2-3% when compared to January 2011.

Santa Cruz County Average Home Price Chart

In Santa Cruz County, according to the MLS 106 homes sold with an average price of $455,491 during January 2012, compared to 94 sales in January 2011 with an average price of $502,331.      I prefer to look at quarterly price trends, versus monthly statistics, just because the differences month to month can be so erratic.

Click here if you’d like an estimate of your home value.

Sources: MLSListings.com

http://www.mercurynews.com/business/ci_19980646?source=email

Fun things to do in Santa Cruz

 February 25^th – Saturday – the 31^st annual Clam Chowder Cook Off

Tastings start at 1 pm at the Santa Cruz Boardwalk, featuring 70+ cooking teams; winners announced at 4 pm    Attendance is free, but a Ballot and Tasting Kit cost $9    www.beachboardwalk.com/clamchowder

Feb 26^th – Sunday   Blue Chevrolet at Henflings in Ben Lomond – starts at 9 pm  http://www.henflings.net/

March 2^nd – Friday 6:30  – 8 PM Scotts Valley Satellite features

       Local Underwater Photographer and Author Marc Shargel   http://www.thesatelliteinc.com/about/events/

March 3^rd Crab Feed - Boulder Creek Volunteer Fire Department Annual Fundraiser

Saturday 6pm at the BC Firehouse on HWY 9       Make your reservation: there will only be 200 tickets sold!     $45 tickets sold only in advance – call extension 338-7222 extension 29

March 10^th:     Saturday Street fair in downtown Boulder Creek

March 17^th – Saturday – St. Patrick’s Day

       Joes Bar in Boulder Creek:    Acoustic Shadows  http://joesbc.com/

March 23 – Friday – 7 p.m. FELTON Satellite     Permaculture Film Series – “Ecologically Sound Living by Designs for Health”     Transition San Lorenzo Valley presents its latest film http://www.thesatelliteinc.com/about/events/

March 25^th – Sunday – Celebration of Jim Morrison & the Doors by WILD CHILD

7pm, $20 in advance or at the door      http://www.donquixotesmusic.info/

Red Pearl Chinese – locals get 10% off on Mondays when they mention the Boulder Creek Events Flier

Boulder Creek Brewery – Live Bluegrass Thursdays and Sunday nights -http://www.facebook.com/bouldercreekbrewery

Call/text/e-mail me to post your upcoming events anywhere in the Santa Cruz Mountains

Click here to get help finding your dream home near Santa Cruz!

       showing the 3^rd gain in the last 4 months, while inventory shrinks

The average home price in the Western Region fell just 2% year over year.    The median price of a single family home across the nation was $154,400, down 2.6% from January 2011.    

Inventory, or the number of homes sitting unsold on the market, shrank to just over 6 months.   This is a key indicator, since a market balanced between and equal number of buyers and sellers tends to hover around 6 months supply.       Inventory is down 20% from a year ago.

All cash sales have steadily accounted for 31% of sales.   There are a lot of investors moving their cash into real estate, picking up rental properties and vacation homes.

Foreclosures accounted for 22% of January sales.

Short sales tallied up 13% of total January sales.   One of my short sale listings just went into escrow after getting 4 all cash offers over asking price.   3 of the 4 buyers wanted to live there themselves.

To read more, turn to http://www.realtor.org/press_room/news_releases/2012/02/ehs_jan

After months of negotiations, 5 major banks settled charges of fraudulently signing foreclosure documents by agreeing to pay $25 Billion dollars out to homeowners and people who lost their homes to foreclosure over the next 3 years.     Further lawsuits and actions from investors and the federal government still loom against many lenders.

Under this agreement, $12 Billion is guaranteed to go to California.

Nationwide, $17 Billion is allocated towards homeowners who are currently behind on their payments in the form of loan modifications and principal reductions.

Another $3 Billion is allocated to homeowners who are underwater and have been unable to refinance their homes,

Sadly, only $1.5 Billion has been allocated to help the people who lost their homes to foreclosure between 2008 and 2011.     $2,000 is expected to be paid out to some 750,000 borrowers.    In my opinion this is a pittance and poorly addresses the point of the charges made against the banks.   The banks admitted there were situations where uninformed people signed hundreds of thousands of false documents to accomplish foreclosure when the original loan documents had been lost.

Click here to learn how to begin getting your benefits.    Or, contact MC.

Read the original article at Reuters: http://www.reuters.com/article/2012/02/09/us-usa-economy-idUSTRE7BM0AB20120209?feedType=nl&feedName=ustopnewsearly

Although there are financial incentives for them to accomplish more during the 1^st year, the actual terms of the settlement allow the banks 3 years to pay out the money.

As more people find jobs, consumer confidence will increase.    Employment, in my opinion, is one of the key factors that can lend strength to the housing market, so I’ve been watching this closely.   While I don’t see any point in talking about weekly numbers announced, the four week moving average looks good when the new claims for unemployment insurance fall to the lowest level seen since April 2008.

The US has created more than 200,000 new jobs for the last 2 months in a row – and our unemployment rate in January fell to a 3 year low of 8.3%.

During the last quarter of 2011, the economy grew overall at a 2.8% pace, which is respectable.    We’re not out of the woods – there are still a staggering 23 million people without work.   Read more at Reuters: http://www.reuters.com/article/2012/02/09/us-usa-economy-idUSTRE7BM0AB20120209?feedType=nl&feedName=ustopnewsearly

Meanwhile, the stock market is up about 7% so far this year.    Since about 20% of home buyers in this market are investors; this is indirectly another good sign for housing.

Amazingly, the weekly average 30 year mortgage interest rate last week was below 3.75%!    http://actvra.in/sG6

Finally, 2/3 of Californians have an optimistic outlook – believing their own financial situation will improve during 2012.    Since  our state is equivalent to the 8^th largest country in the world, this is significant.     The San Francisco Bay Area and Silicon Valley Areas are the most optimistic about the future (versus southern Californians where economic conditions are worse.)      http://www.reuters.com/article/2012/02/09/us-usa-economy-california-idUSTRE8180JP20120209

Traditionally, the Santa Cruz real estate market follows the Silicon Valley.

February 14^th – Valentines Day – this coming Tuesday – no time to cook? Take your loved one for a Valentines’ Dinner – 4pm to 10pm at Boulder Creek’s legendary Scopazzi’s Restaurant 338-6441  http://www.scopazzisrestaurant.com/

February 18^th – Windy Hill – Bluegrass at Joe’s Bar – These guys are next scheduled for venues like Freight and Salvage in Berkeley, Amnesia in San Francisco.    338-3417   http://www.facebook.com/pages/Joes-Bar/132408613439331?ref=ts&sk=wall

February 19th – SLV Water District History - 3pm at the Senior Center in Ben Lomond  Admission/Donation $5 per family – details 338-8382 – sponsored by Terry Vierra of Century 21 Showcase REALTORS.

February 25^th – Flea Market at Junction park – hosted by Boulder Creek Parks and Recreation District 338-4144

ALL MONTH:

SHOP LOCAL BC Hardware- say Hi to Doug andAnnMarie – featuring a February sale on Stanley Shop Vac ($17.95) – 338-3866

Great coffee, baked goods and bagels at Jenna Sues / Dessert First 338-7008 http://www.facebook.com/pages/Jenna-Sues-Cafe/110143085713000?sk=info

Winter clearance sale at Plumline Vintage – boots, sweaters and more 338-2701 http://www.facebook.com/PLUMLINEVINTAGE?sk=info

BC Liquors – where the prices are good, the wine selection is awesome, and the clerks provide off beat humor  338-6448

Boulder Creek Brewery – Live BluegrassThursdays and Sunday nights - http://www.facebook.com/bouldercreekbrewery

Crab Feed – Boulder Creek Volunteer Fire Department Annual Fundraiser

March 3^rd at 6pm at the BC Firehouse on HWY 9

Hurry to make your reservation: there will only be 200 tickets sold!

$45 tickets sold only in advance – call extension 338-7222 extension 29

The Fire Department is right across Hwy 9 from Johnnie’s Market

Boulder Creek in the Santa Cruz Mountains, CA

If you’d like to live in this wonderful small town, click here: Boulder-Creek-Homes.com

2011 –year in review

62 homes sold in Ben Lomond during 2011.   The average home sales price was $378,905, taking an average of 2 months on the market prior to going into escrow.    The discount between the list price and eventual sale price was 3.7% overall.    The average home price fell about 10% compared to 2010.

The highest priced home sold for $821,000 – this was a 4 bedroom, 3 bath home on 25 acres – a traditional sale between people.

The lowest priced home sold for $77,000 – it was a shack deemed uninhabitable by the county, on just under an acre along the San LorenzoRiver, sold by JP Morgan Chase.

Ben Lomond Home sold by MC Dwyer

Above is a custom hilltop home I helped my sellers through a short sale in Ben Lomond

2010 –year in review

42 homes sold in Ben Lomond during 2010.    The average home sales price was $421,672, taking an average of 2 1/2 months on the market prior to going into escrow.    The discount between the list price and eventual sale price was just over 2 % overall.

In 2010, the highest priced home sold for $875,000: described as “a funky old farmhouse” on 27 acres.

The lowest priced home sold for $60,000 – this was a red-tagged property high in the mountains along Love Creek without power.

Why did prices fall in 2011?    In Ben Lomond the number of higher end homes – those selling for more than $500,000 – was fairly stable between 2010 (10) to 12 in 2011.    On the other hand, in the affordable and fixer-upper home segment,  21 homes sold in 2011 for less than $300,000, more than 3 times the number (just 6) that sold in that price range in 2010.

50% of all sales (31 houses) were distressed sales in 2011 –  homes that were either foreclosures or short sales, quite similar to  2010, when 54% (22) were distressed residential transactions..     All but 5 of the homes which sold in the affordable segment in 2011 were distressed sales.    It’s my feeling that Ben Lomond prices fell due to the mix of homes that actually sold as much as anything else.      Most buyer activity lately has come from first time buyers, investors, and those seeking vacation homes

To find out what your Ben Lomond home is worth now, click here.

Source: MLS Listings.com, Single Family Residences, data compiled by MC Dwyer

2011 –year in review

63 homes sold in Felton during 2011.   The average home price fell about 23% when compared to 2010.   The average home sales price was $328,643, taking an average of just over 3 months (101 days) on the market prior to going into escrow.    The discount between the list price and eventual sale price was 4% overall.

The highest priced home sold for $736,861 – this was a bank owned 5 bedroom, 3 bath home on 22+ acres.

The lowest priced home sold for $44,000 – it was a tiny, bank owned, burned down home on Highway 9.

Why did prices fall so dramatically?    In my opinion, the main reason is that the number of higher end homes – those selling for more than $500,000 – shrank from 14 in 2010 to only 5 in 2011.    On the other hand, in the affordable and fixer-upper home segment, 28 homes sold in 2011 for less than $300,000, nearly 3 times the number (just 10) that sold in that price range in 2010.

63% of all sales (40 houses) were distressed sales in 2011 –  homes that were either foreclosures or short sales.     All but 2 of the affordable segment were distressed sales – just two were normal, owner occupied sales.    This is in contrast to 2010, when 47% (28) were distressed residential transactions.

In conclusion, prices fell due to the mix of homes that actually sold as much as anything else.        Most buyer activity is either first time buyers or investors.

What I am seeing is that many people who might be trying to move up into a bigger home, or downsize into a smaller home, are waiting for the market to recover before they put their home on the market.    A few people are able to rent out their homes, and taking advantage of low interest rates to buy a second home that suits them better.

If you would like to find out what your home is worth now, click here

Wall Mural in Felton

2010 –year in review

In 2010, 60 homes sold in Felton.   The average home sales price was $427,195, taking an average of 80 days on the market prior to going into escrow.       The eventual sales price was an average discount of 2.2% off the list price.

The highest priced home sold for $795,000 – a lovely owner occupied 4 bedroom, 3 ½ bath home on about 3 ½ acres.

The lowest priced home sold for $97,000 – a small 1 bedroom, bank owned cabin.

Source: MLSListings.com, Single Family Dwellings

MC Dwyer, copyright 2012

For example, a first time home buyer buying a Santa Cruz County home for $250,000

A Boulder Creek Home sold by Century 21 Showcase REALTORS

might be able to deduct $20,000 or more – and this deduction comes right off of your gross income.     So if your household income was $70,000 – almost all taxable, in this example, your taxable income falls to $50,000.    I’m not licensed to offer tax advice, but this is like the government paying you back, instead of you paying them.

Here’s a great article you can read: or, if this stuff makes your eyes roll back into your head, just contact me and we’ll go over it together.

http://www.360financialliteracy.org/Topics/Home-Ownership/Buying-a-Home/Tax-Advantages-of-Homeownership

Have you noticed that the price of food is going up?    It is no secret gas prices are way up too.   But, the government excludes food and energy from their “core inflation” calculations.   Rents are going up too.      So, while the government says inflation is low due to the fact the economy is growing slowly, these higher energy costs are working their way into the cost of virtually everything we buy.

The Federal Reserve’s primary goal right now is to stimulate the economy by keeping interest rates low, and they are not paying much attention to inflation.   Consequently, mortgage interest rates are the lowest they’ve been in generations – hovering around the 4% mark for a 30 year loan.

But soon after the economy begins to recover, the government is going to have to come to terms with inflation…and interest rates will go up then.   When interest rates go up, businesses borrowing costs go up, and they pass that right on to all of us.    When there’s inflation, home prices go up too.   Home ownership as a hedge against inflation isn’t getting much attention now, but I bet it will in the next few years.

Combine the inflation hedge aspect of home ownership with low prices and tax benefits, to see if this feels like an opportunity to lock in an affordable home for your family.     My latest buyers often discover their mortgage payments are cheaper than rent.    With prices so low, this is a great time to be a buyer.   But, the process of getting a loan can be challenging.   Just let me know if you’d like help getting pre-approved for a loan.

Click here if you’d like help finding your dream home.

M.C. Dwyer, Copyright 2012

Boulder Creek – one of Sunset Magazine’s “Favorite Places to Move to”

per their recent issue.

Sunset calls Boulder Creek “absurdly rural,” with ample open space for hiking, biking and horses.

Not surprisingly, they list my hometown as a dream place to move to  - for those seeking a slower-paced life.

Having lived all over the Bay Area, working downtown in the San Francisco Financial district high-rises for many years, I couldn’t agree more!

Click here for the Sunset Article

Are you new to town?    Please share your stories about how relocating here feels to you!

Click here for help finding your dream home in Boulder Creek…