Real Estate Articles

On the November 4th ballot, Redwood City citizens will be asked to approve or oppose Measure W. Measure W seeks to amend the City’s charter to require a 2/3rds supermajority approval for new development in certain designated areas. As written, it could also require existing private homeowners to solicit a citywide vote for simple room additions and renovations of their homes. Ultimately, it would allow a small minority veto power over future development supported by a majority of Redwood City residents.

The San Mateo County Association of REALTORS®, as the leading advocate for homeowners and the voice of real estate in San Mateo County, strongly opposes this measure. SAMCAR believes these burdensome requirements pose a tremendous infringement upon private property rights, the preservation of which is a core mission of our Association. Further, we believe there is a potentially negative impact upon the value of these homes, should this ballot measure pass.

In demonstrating our commitment to this principle, REALTORS® throughout the state have contributed significant financial resources to defeat this measure, totaling approximately $50,000. In the Bay Area, the following associations have contributed funds to this effort: SAMCAR; the Silicon Valley Association of REALTORS®; the Santa Clara Association of REALTORS®; and the West Contra Costa Association of REALTORS®. In a tremendous show of statewide opposition to this ballot measure, contributions have also been received from REALTOR® associations outside of the Bay Area, including: the Sacramento Association of REALTORS®; the Inland Gateway Association of REALTORS®; and the San Diego Association of REALTORS®. A significant financial contribution was made also by the California Association of REALTORS® Issues Mobilization Political Action Committee.

SAMCAR believes Measure W will take responsible land use planning and development out of the hands of a responsible City Council and the majority of Redwood City citizens, and place that responsibility into the hands of a minority. It will infringe upon the private property rights of homeowners and could ultimately affect the value of their homes. We strongly encourage a “NO” vote on Measure W.

For more information about Measure W, please visit www.votenomeasurew.com.

There has been a lot in the news recently about the government takeover of government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac. What does this mean for the real estate market?

These GSEs guarantee more than 40 percent of the nation’s mortgages and own or guarantee more than $5 trillion worth of mortgages, so assuring their continued operation is crucial in the current economic environment.

The government’s actions were aimed to restore confidence and bring stability and continued liquidity to the nation’s mortgage market. Interest rates came down immediately after the takeover, and it is likely that this will keep them low for some to come. Buyers benefit from lower rates, and sellers benefit from the increased demand created by buyers entering the market.

According to Lawrence Yun, Chief Economist for the National Association of REALTORS®, there is much to be done, to ensure the security of these GSEs and the mortgage market across the country. He notes, “Over the long term, after the time-out phase of government activism, we need to ensure continuous flow of capital into the mortgage market to help consumers. The restructuring of Fannie and Freddie must meet this important criterion. The final restructuring will need to combine many innovative ideas.” This includes:

? Counter-cyclical mortgage intervention, which loosens the liquidity spigot in times of need and tightens when the housing market heats up
? Covered bond market - which is the European way of funding mortgages
? Sound underwriting standards to assure a sustainable, healthy housing market (it is in no one's interest to have an unprepared homebuyer that ultimately leads to a foreclosure)
? Clearly separating out the public and private mission of the Fannie/Freddie or new entities. A model of private profits for the shareholders and losses for the taxpayers does not pass any common sense test.

In the meantime, with lower interest rates and increased demand, the time is right to buy a home in San Mateo County, which remains a robust, stable real estate market. In August, there were 588 new listings, bringing the current inventory to 1772. There were a total of 376 closed transactions that month. The median sales price was $795,000.

According to the California Association of REALTORS® (C.A.R.), home sales increased 43.4 percent in July in California, compared with the same period a year ago, while the median price of an existing home fell 40.3 percent.

“Sales improved significantly in July 2008 and remained above the 400,000 level for the third consecutive month,” said C.A.R. President William E. Brown. “Deeply-discounted, distressed sales continue to drive volume in many regions of the state. July was also the first full month during which the effects of higher $729,000 conforming loan limits likely had an impact on closed sales.”

Closed escrow sales of existing, single-family detached homes in California totaled 489,080 in July at a seasonally adjusted annualized rate, according to information collected by C.A.R. from more than 90 local REALTOR® associations statewide. Statewide home resale activity increased 43.4 percent from the revised 341,130 sales pace recorded in July 2007. Sales in July 2008 increased 15.3 percent compared with the previous month.

Locally, San Mateo County’s housing market showed positive trends in the month of July. In July 2008, the number of closed escrow sales of existing, single-family detached homes was 428, an increase from the 376 transactions in June 2008, and 380 in July of 2007.

The median price of an existing, single-family detached home in California during July 2008 was $350,760, a 40.3 percent decrease from the revised $587,560 median for July 2007, C.A.R. reported. The July 2008 median price fell 4.5 percent compared with June’s revised $367,130 median price.

In San Mateo County, the median home price fell from $890,000 in June 2008 to $800,000 in July.

San Mateo County’s July home sales statistics demonstrate that sales are up! According to the latest statistics provided by MLSListings, Inc., There were 639 new listings in July, which brought the current inventory to 1883 homes on the market. In that same month, there were 428 transactions closed, with a home’s average days on the market at 43.

In a recently released report, the California Association of REALTORS® (C.A.R.), notes that across the state, home sales increased 43.4 percent in July, compared with the same period a year ago, while the median price of an existing home fell 40.3 percent.

"Sales improved significantly in July 2008 and remained above the 400,000 level for the third consecutive month," said C.A.R. President William E. Brown. "Deeply-discounted, distressed sales continue to drive volume in many regions of the state. July also was the first full month during which the effects of higher $729,000 conforming loan limits likely had an impact on closed sales.”

Closed escrow sales of existing, single-family detached homes in California totaled 489,080 in July at a seasonally adjusted annualized rate, according to information collected by C.A.R. from more than 90 local REALTOR® associations statewide. Statewide home resale activity increased 43.4 percent from the revised 341,130 sales pace recorded in July 2007. Sales in July 2008 increased 15.3 percent compared with the previous month.

The statewide sales figure represents what the total number of homes sold during 2008 would be if sales maintained the July pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.

The median price of an existing, single-family detached home in California during July 2008 was $350,760, a 40.3 percent decrease from the revised $587,560 median for July 2007, C.A.R. reported. The July 2008 median price fell 4.5 percent compared with June’s revised $367,130 median price.

San Mateo County REALTORS® are committed not only to helping you buy and sell your home, but to also creating a vibrant, thriving community. Members of the San Mateo County Association of REALTORS® (SAMCAR) have upheld a long tradition of making monetary donations and contributions of their time to enhance the quality of life of San Mateo County residents.

A major part of that effort is the creation of the San Mateo County Association of REALTORS® Foundation. The Foundation’s mission is to assist individuals within the San Mateo County community in enhancing their quality of life through financial programs, education, and housing-related initiatives and activities. The Foundation is a separate 501(c)3 Public Benefit Corporation, funded through the generous contributions of its REALTOR® and Affiliate members, and friends.

Since its inception, the Foundation has focused its charitable efforts towards organizations and programs that strive to make San Mateo County a more livable, affordable and thriving community. Through its work, the Foundation makes significant financial contributions that have enabled many of our San Mateo County citizens to finance a down payment on their first home, make their mortgage payments, and receive the education needed to make a sound investment in their financial stability and future through homeownership.

Edgar Tulcanaza, Chair of the Foundation notes, “Our members are excited about giving back to the community. We look forward to working with other organizations to increase the opportunities available to citizens of San Mateo County.”

Homeownership is said to bring about substantial social benefits for families and communities as a whole. Thus, the SAMCAR Foundation’s primary goal is to help ensure that everyone in San Mateo County is able to achieve the American Dream of owning a home. Our REALTOR® members and Affiliates are proud to contribute to this important and worthy endeavor.

For more information about the San Mateo County Association of REALTORS® Foundation, please visit our web site at www.samcar.org.

The San Mateo County Association of REALTORS® (SAMCAR) indicates that sales of existing homes are showing signs improvement. In recent quarters there has been a drop in the median home price. In the first quarter, the median price was $900,000; in the second quarter, it was $872,500. However, SAMCAR strongly believes that by all indicators, the drop in market prices will soon end, triggering a rise in demand, with supply remaining stable.

In previous years, real estate agents faced record low transaction volume. The San Mateo County market saw a low of 152 closed single-family home transactions in January of 2008. Since then, closed transaction volume has increased each month, with 212 in February; 274 in March; 346 in April; 356 in May; and 375 in June, 2008.

For more statistical information regarding sales homes throughout San Mateo County, please visit SAMCAR’s web site at: http://www.samcar.org/index.cfm/sales_statistics.htm.

The San Mateo County Association of REALTORS® (SAMCAR) hosted its annual Charity Golf Tournament on Monday, July 21, 2008. The event was held at the Peninsula Golf & Country Club in San Mateo. A dinner and live auction, featuring San Mateo County Supervisor Jerry Hill as the auctioneer, followed the conclusion of the tournament. A number of community leaders and local legislators, including San Mateo Mayor Carole Groom, participated in the day’s events.

Since 2002, the Tournament has raised approximately $160,000. Previous recipients of the tournament proceeds include the San Mateo County Housing Endowment and Regional Trust (HEART), HIP Housing, Habitat for Humanity, and the Shelter Network. This year, the Tournament raised just over $14,000.

The proceeds from this annual event are raised on behalf of the San Mateo County Association of REALTORS® Foundation, an autonomous 501(c)3 Public Benefit Corporation. The SAMCAR Foundation is committed to the welfare and prosperity of San Mateo County, and through its contributions and member involvement, strives to help create livable, productive and enriched communities. All funds raised are donated throughout the County to organizations and programs focused upon these same goals, with particular emphasis upon those that work to provide more affordable housing opportunities.

Philip Tedesco, SAMCAR’s Chief Executive Officer notes, “This is a wonderful annual event for SAMCAR REALTORS® to get out of the office, network with each other, and most importantly, enjoy their day knowing that proceeds from their activities will directly benefit the San Mateo County community.”

The San Mateo County Association of REALTORS® (SAMCAR) will host its Annual Charity Golf Tournament on Monday, July 21, 2008. The tournament will be held at the Peninsula Golf & Country Club, followed by dinner and a live auction. A number of local legislators and community leaders will participate in the day’s events.

The proceeds from this annual event benefit the San Mateo County Association of REALTORS® Foundation, an autonomous 501(c)3 Public Benefit Corporation. The SAMCAR Foundation is committed to the welfare and prosperity of San Mateo County, and through its contributions and member involvement, strives to help create livable, productive and enriched communities. All funds raised are donated throughout the County to organizations and programs focused upon these same goals, with particular emphasis upon those that work to provide more affordable housing opportunities.

Since 2002, the Tournament has raised approximately $160,000. Previous recipients of the tournament proceeds include the San Mateo County Housing Endowment and Regional Trust (HEART), HIP Housing, Habitat for Humanity, and the Shelter Network.

Philip Tedesco, SAMCAR’s Chief Executive Officer notes, “This is a wonderful opportunity for SAMCAR REALTORS® to get out of the office, network with each other, and most importantly, enjoy their day knowing that proceeds from their activities will directly benefit the San Mateo County community.”

SAMCAR also supports US troops

In addition to the charitable contributions made to the community in San Mateo County, SAMCAR is also pleased to announce its 3rd Annual Support the Troops program. Over the past three months, one of SAMCAR’s main charitable efforts, spearheaded by its Affiliate members, has been to raise funds through direct donations from the membership.

All funds raised are being used to purchase goods and supplies that will be sent to fellow citizens who are voluntarily putting themselves in harms way throughout the world. To date, close to $5,000 has been raised and the care packages are being prepared to ship to various military bases abroad.