Fewer first-time buyers

The New York Times reports fewer first-time buyers in the market than previously...

A survey by the NATIONAL ASSOCIATION OF REALTORS® found that only 31 percent of their sales were to first-time buyers. Normally, first-time buyers represent closer to 40 percent of the market.

Read the full story   With less inventory at the entry level as well as low inventory levels overall this trend may continue until there is sufficient supply. If the banks release more of the "shadow inventory" purported, by some, to be in existence then buyers at all levels may see some relief, however I wouldn't hold my breath given the large bulk sales that the government (FHFA) and private investors are negotiating.   Buyer's in this market need to make strong offers to be competitive, have extreme patience as multiple offers have become the norm in the entry level, have their pre-approval documentation and verification of funds to close available to submit with an offer,and have their agent find out if there are any seller preference that would give them an advantage when crafting their offer.    

Affordable Monterey County

For those of us who live in and love the Monterey Peninsula "affordable" would probably not be the first word we would use to describe the cost of real estate, or anything else for that matter.  However, Monterey County came in at 50% affordable in a recent study.   If one takes into account the reach of Monterey County from Prunedale/N. County down as far as King City/Gonzales/Soledad and encompassing Salinas Valley to the East one can start to get a bigger picture and appreciate that there are pockets of true affordability in Monterey County.

A little history lesson

3.8% Medicare Tax - Get the Facts

Misinformation about the 3.8 percent Medicare tax continues to be circulated

Recent information provided by the California Association of Realtors (CAR) helps clarify the tax implications:

Beginning in 2013, the much-publicized 3.8 percent Medicare tax on unearned-taxable income will go into effect. While the application of this tax will utilize a complex formula, what is important to remember is:

• It is applicable to households in the top two tax brackets (individuals with an income above $200,000 or $250,000 for married couples),

• Applicable only on taxable unearned income, such as capital gains, interest, dividends and rents,

• Capital gains exemption for principal residences ($250,000 for individuals and $500,000 for married couples) is not affected, and

• Please contact your tax professional if you believe the new tax will impact you.

For more information click here

Start your engines..............Sellers

 

 

 

California home prices near 4-year high

California home sale prices came close to a 4-year high in July, with the pace of sales year-over-year growing for the fourth month in a row, the CALIFORNIA ASSOCIATION OF REALTORS® reported.

Making sense of the story.....

• The median home price in July for an existing single-family home was $333,860 last month, up 4.2 percent from $320,540 in June and nearly 13 percent from a year ago, when the median home price in California was $296,160.

• July’s median home price was the highest since August 2008, when it was $352,730. July also marked the fifth consecutive month that the median price increased month-over-month and year-over-year.
• Sales in July rose to an annualized pace of 529,230 homes, an increase of 15.3 percent compared with last July.
• California’s housing inventory was nearly flat in July, with the index of existing, single-family homes at 3.4 months compared with 3.5 months in June. However, July’s inventory was down from a revised 5.6-month supply in July 2011. The index indicates the number of months needed to sell the supply of homes on the market at the current sales rate. A 7-month inventory is considered normal.

Shortage "Oh My"

San Francisco Chronicle .... read more 


Shortage of California homes up for sale

After years of having too many homes and not enough buyers, real estate agents in California now have the opposite problem – too many buyers and not enough homes for sale.

Making sense of the story

• The CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) reported Monday that its statewide inventory of unsold homes index for existing, single-family detached homes fell to 3.2 months in August from 3.5 months in July and 5.2 months in August 2011.


• The index reflects the number of months needed to sell the supply of homes on the market at the current sales rate. A six- to seven-month supply is considered normal. When the number goes higher, inventory is plentiful and it’s considered a buyer’s market. When the number goes lower, the advantage goes to the seller.

• Declining inventory helps explain why the statewide median price of an existing, single-family detached home rose to $343,820 in August, up 3 percent from July and up 15.5 percent from August 2011, according to C.A.R.

• Nationwide, the inventory of homes for sale also has declined. In July, there was a 6.4-month supply of homes compared with 9.3 months in July 2011. The current number is in line with the long-term average, according to the NATIONAL ASSOCIATION OF REALTORS®. However, NAR also acknowledges there are “acute shortages” in places such as California, Arizona, Nevada, and parts of Florida.

• Also constraining supply is the fact that so many homeowners are underwater – or owe more than their homes are worth – and unable to sell without taking a loss. As prices rise, more homes will increase in value, but it’s going to take time. Meanwhile, there are still a lot of homes that are not likely to come onto the market.

• At some point, the balance will tip, but it’s hard to predict when. When banks decide prices are high enough, they will start unloading houses they have been sitting on, according to the chief economist for Trulia.

 Have you ever wanted to get up close and personal with some of our sea life on the Monterey Peninsula? 
Try a kayak trip along Elkhorn Slough! 

A friend and I booked a tour last Saturday with Kayak Connection out of Moss Landing.  Our wonderful tour guide, Lauren was well educated and took us to see a group of white pelican, mama and baby otters and, of course, the harbor seals!  While there are very strict rules about us humans getting too close to the animals in the marine sanctuary there are no such rules that apply to the otters and other creatures. So we had some great photo opportunities.  We departed at 10 a.m. and spent 3 hours exploring, learning and enjoying these magnificent creatures in their natural habitat.  Thanks Lauren! Thanks Stephanie! 

Did you know.........

Stillwater Cove Pebble Beach

Monterey

Interesting statistics from California Assn. of Realtors

Investor's Paradise?
Demand for rentals continue and supplies are short

 ........ a recent WSJ report shows that rental rates were up in 74 of 82 the regions analyzed by REIS, Inc.  The Monterey peninsula is not much different.  With our typical shortage of inventory (and no prospects for increased inventory any time soon), and a strong rental market the savy investor can do quite well.  One caveat; we cannot typically charge the rental rates that one sees in the larger metropolitan areas due to a tenant pool of lower wage earners, students and short term military stationment.  However, with the right amenities and location a landlord can maintain a high occupancy rate and a good rate of return.

Carmel Valley Single Family Residential.  The days to sell is similar to last year and at about 3 months which is quite respectable.  Thesale to list price is increasing which may be a sign that things are normalizing in Carmel Valley.  

Great evening for practice surfing - Carmel Beach @ 13th.

Carmel Valley - with a Mediterranean climate, amble open space and a bourgeoning wine industry you may just think you've landed in heaven.  That is if warmth, recreation and vin rouge or blanc are high on your favorite things list.

Running West to East along County Route G16 or Carmel Valley Road you may not realize that you have transitioned between Carmel and Carmel Valley, in fact, many locals still debate where the rural community actually begins.  There is Welcome to Carmel Valley a sign at the "mouth of the valley" (the intersection of Hwy 1 and Route G16) but technically one is still in a Carmel zip code.  Six miles inland is Mid-Valley with a shopping area and one of few neighborhoods called Tierra Grande on the North side of Carmel Valley Road.  This is where the fog from the coast oftentimes ends it's migration inland so for the real sun lovers this, or further inland, is the ideal place to start their home search.



photograph by David Gubernick

 Another six miles inland one enters the charming Village area.  With a beautiful community park that hosts numerous events (Summer Fiesta, Easter Egg Hunt, Swim a Thon, Tree Lighting and Caroling), shops, restaurants and a growing number of wine tasting venues.  The Village is about a mile long so one can walk from end to end in 30 minutes, or so, however there are side roads and shops that one can wander through for hours.  Just before the Village is Garland Park.  Garland is a favorite local for dogs and their owners, horseback riders and hikers of all skill levels.  There are many trails with varying difficulty on over 3000 acres of open space. Garland also hosts an Earth Day event, Wildflower show and Star Gazing with telescopes at various times throught the year.

If you are looking for a charming, laid-back community with access to some of the worlds finest golf, tennis, wine, restaurants and quality of life you may just have to check out Carmel Valley. 

Awesomized photo

Counting the days!

Carmel European Style Retreat

Behind ivy walls you will find a hidden paradise with rose gardens, fruit trees and French doors opening to a wrap-around patio and large entertainment area including an outdoor fire pit. This remodeled classic Carmel charmer includes Cathedral ceilings, hardwood floors, and lots of natural light, Limestone floors and antique cabinets in the bathrooms. This is a tastefully remodeled home with a European flair.  Offered at $1,575,000

A walk in the park

garland park, carmel valley ca

Where are we going?

Active and Pending Sales - Carmel Valley CA  Past 1 year