Nipomo, CA Real Estate Market Report, 12/11: High Activity for REOs, Short Sales, Lower Priced Homes
Nipomo continues to be behind the curve for improvement, but there has been some interesting action in lower-priced homes, REOs, and short sales. I’ve been showing these properties recently, and have discovered that many will get multiple offers and be in escrow (or what passes for escrow with a short sale) within a couple of weeks. Of course, many will fall out. But I was surprised to discover that my clients were not able to make offers on most of the homes they looked at because they were already contingent. If you look at the stats below, however, this does not show up. Inventory is up to 8 months (definliety a buyers’ market), prices are down somewhat overall (though improved from September to October), and home sales dropped off in October. Still, inexpensive homes that need work seem to be snapped up fast.
San Luis Obispo Real Estate Market Report, 12/11: Normalization
As you can see, inventory jumped a bit in October, but still is way below what it was a year ago. Lower-priced homes are beginning to see good sales and some multiple offers. Investors are coming back into the market, and most people seem to realize that we are not going to see lower interest rates than we have now, for years if ever.
Average price per square foot is up as well, and there was a strong increase in the price asked/price sold for ratio. We were not hit as hard by the falling market as other areas in CA (or even in the county), so we have a smaller, somewhat slower recovery (less to recover from). It looks like the buyers’ market is beginning to fade and normalization is slowly occurring.
Arroyo Grande, CA Real Estate Market Report, 12/11: Stagnant
Arroyo Grande is stagnant right now. Prices are drifting downward (bumping along the bottom, as a colleague says), inventory is still rather high (indicating more of a buyers’ market), and average sold price has dropped quite a bit. It seems that there is still a lot of inventory to be absorbed, and sellers still are not pricing their homes to move. It may be another six months before this South County community picks up in sales and inventories drop.
Open House: 1447 Descanso, San Luis Obispo, Sunday Nov. 13, 1-4 PM
Stop by and see this lovely 3 bedroom, 2 bath, 1388 s.f. home. with wood-burning fireplace, private yard spaces, and great location near shopping and Laguna Jr. High. Built in 1977, this home has been extensively updated with new paint, carpet, and appliances. There’s lots of parking plus a two-car detached garage. This is a SFR, but in a planned unit development. Monthly maintenance fee is $137.00 and includes common area maintenance.
All this for only $365,000!
Come by tomorrow, take your time, and enjoy the visit!
Poised for a Turnaround? San Luis Obispo City Sales Improve
The pot has been bubbling for awhile, and we are beginning to see the results. Sales are up, year over year, by 52% since August 2010, and in the same time period the price dropped only 1.8%. Most interesting, inventory has dropped to a 4.2 month level. Conditions are beginning to move toward a sellers’ market in SLO city proper.
We were not hit as hard as other areas in the county, when the market began its precipitous drop, but these figures are good news nonetheless.
Is the Buyers’ Market Over in San Luis Obispo?
First, let’s define some terms. A seller’s market is when the supply of available homes for sale drops to 5 months or less–meaning that the current stock would all be sold in that time frame. A buyer’s market exists when there is a glut of available homes (typically 6 months or more). Buyers have their choice, and can drive a harder bargain.
As prices continue to slowly drop, and as interest rates also drop to historic lows, we are seeing home sales rise in SLO County, and at this point we are almost into the traditional territory for a seller’s market. Today, the inventory stands at 5.1 months. Investors are being lured into the market by low interest rates and falling home prices, and so are families looking for a new home.
It looks to us as if we have hit bottom and are bumping along that floor . . . and will be, for the next few months. What this means for buyers is that bargains are being snatched up faster, and multiple offers are becoming more and more common. For potential sellers, this is a great time to take the leap and put your home on the market. Well-prepared houses, priced right, are selling fast.
It Was A Beautiful Day in the Neighborhood
We held our first neighborhood garage sale last weekend, in the Spanish Oaks/Arbors area of San Luis Obispo, and it was a great success. The neighbors loved it, and we had a great time introducing ourselves in the area. We sent around postcards in advance, advertising the date, and offered ads in Craigslist and the Tribune free. Folks who called in got their items featured in the ads, and got free maps and food treats the morning of the event.
We created maps of the homes on the “sale trail” and gave a stack to each participating family. Best of all, we dropped off hot coffee and pastries to all the families who had signed up ahead of time. The food was the hit of the morning; who can turn down a cinnamon bun and hot coffee? Of course, we also put up signs at the main entrances to the area.
The next day, we called all the participants and asked for feedback. Everyone agreed that it had been a success; one family collected over $230 for the Lymphoma and Leukemia Society. The food was much appreciated . . . everybody mentioned how much they liked it. That will definitely be a feature of the next sale!
We so much enjoyed meeting our neighbors the day of the sale, and seeing what everyone had up for sale. Best of all, when I was in the supermarket a few days later, I ran into one of the participants, who recognized me immediately and told me how much fun she had had. We’ll see you next time . . . look for your invitation in the mail!
You can’t afford NOT to invest in several of these remodeling projects! Not only will they return all or nearly all of their cost, the increase curb appeal and perceived value inside the home as well. Surprisingly, the two best returns come from the two least expensive jobs: Adding a new front door and replacing your old garage door with a new one.
PROJECT COST RESALE VALUE COST RECOUPED
Entry door replacement (steel) $1,520 $1,701 111.9%
Garage door replacement $1,609 $1,647 102.4%
Deck addition $14,124 $13,500 95.6%
Window replacement $14,077 $12,977 92.2%
(All figures are for Los Angeles, 2010-2011, courtesy of Remodeling magazine.)
Replacing your old wood door with an updated steel door that includes a dual-pane decorative glass panel and a new lockset will not only return all of your investment and then some, it will dramatically increase the appeal of your front entry and curb view. This could be a do-it-yourself project for a skilled homeowner, or you can have it professionally installed.
A garage door replacement is a job for a pro, but again it adds greatluy to the curb appeal of your home and pays you back better than 100% on your investment. Get rid of that creaky, heavy old wood door and upgrade it with a steel sectional door on nylon tracks. Reuse the opener motor to save on costs, unless it’s unreliable.
Adding a new wood deck (16′ by 20′) with a planter and bench, steps, and railing will come close to paying for itself and spice up your back or side yard. This is another project that a skilled homeowner can do to save money, but don’t skimp on materials. Consider using a material such as Trex to save on upkeep.
The vinyl window replacement is the most expensive project, but you will reap benefits from the day it is completed until your home is sold. Many people find the noise reduction factor is as important (if not more so) than the energy cost savings that insulated windows provide. This is a job for a pro, but the additional value right now and in the future is hard to overstate–not only cost savings and quiet, but appearance as well.
San Luis Obispo: Depending on the Kindness of Strangers
My husband and I live in San Luis Obispo, CA, which has been in the news quite a bit lately because of Dan Buettner’s book, Thrive, naming it the happiest city in the U.S. and among the happiest in the world. We heartily agree! And one of the attributes we love about SLO is the kindness and friendliness of its citizens.
My husband is temporarily wheelchair-bound (a topic for another post), and we had tickets to see a show at Cal Poly, San Luis Obispo’s campus of the state polytechnic university. We’d called ahead to ask about handicapped seating and were assured that it would be available. Great! Now to figure out where to park and how to get him into the theater.
On the afternoon of the show, we drove slowly around the area where the theater is located, without seeing any handicapped parking or any easy access to the building. I knew I was annoying other drivers, so I did my best to keep to the right and pull over as often as possible to let people drive by. At one of these moments, a woman pulled up behind us, got out, and asked if we were lost. No, we told her, but we are looking for an easy access point for the theater and nearby handicapped parking. “No problem,” she replied. “There is a small parking area behind the theater . . . I’ll show you where . . . and I will be sure that they hold a spot for you for this evening’s performance.” We were so grateful! I just wish we had gotten her name.
That evening, we were running late getting to the show. I finally made it to the designated parking area, only to find that the available spots were specially marked for theater deliveries only, and that parking there for any other reason would result in a big fine. I found a “roadie” with the touring company, who kindly showed me how to wheel my husband into the theater. I asked him about the price of a ticket for improper parking, and he told me it would be $35, and that the campus police were serious about enforcement. Since we were already late for the opening, and I had a distance to wheel my husband, I decided to take the risk.
The show was wonderful, and our special seats had indeed been reserved. We had great help from ushers, holding open the doors, showing us the short way out, etc. And when we finally arrived back at our car, I discovered that the “roadie” had hand-lettered a sign, placed on the windshield, that I had special permission to park in the “forbidden zone” and not to give me a ticket.
No wonder San Luis Obispo is the happiest place in the U.S.! People look out for their neighbors, and that makes everybody happy.
CA Unemployed to Get Help with Mortgage Payments
More than 42,000 laid-off California homeowners are about to get a break.
Starting Nov. 1, the Federal government will help them make mortgage payments while they look for another job. The U.S. Treasury Department has added $476.2 million to a $64 million state program that will pay jobless homeowners up to $1,500 a month. The funding sends Troubled Asset Relief Program funds originally designated to improve lender balance sheets to homeowners instead.
The powerfully upgraded $540 million program will help California’s struggling borrowers make up to six months of payments. Lenders will be asked to match the government contribution.
In a statement Wednesday, Steven Spears, executive director of the California Housing Finance Agency, said the cash will “prevent foreclosures that would otherwise devastate neighborhoods, communities and California’s economy.”
CalHFA will administer the program as the state’s affordable housing bank. In recent weeks the agency has received $1.1 billion in federal funds for states hit hardest by the housing crash. The money will subsidize mortgage payments, partially pay off mortgages, and help thousands of borrowers get up to date with payments.
“In this recession people have been out of work longer. So we wanted to do this,” Assistant Treasury Secretary Herb Allison said Wednesday during a media conference call.
The California program aims to help 19,000 unemployed borrowers make a few months of mortgage payments between its November launch and next July. Another 23,000 borrowers will receive help in the next two years, according to CalHFA estimates.
To qualify, homeowners must be out of work, eligible for unemployment benefits, and live in the home tied to the problem mortgage. They must be fewer than 90 days behind on mortgage payments and meet low- and moderate-income guidelines. Generally, that’s less than $70,000 for couples in El Dorado, Placer, Sacramento and Yolo counties, and less than $54,000 for couples in Yuba and Sutter counties.
But many who refinanced during the housing boom will find themselves ineligible. CalHFA said it is generally limiting aid to unemployed borrowers struggling with purchase loans. Though criticized for the exclusion, CalHFA officials said recently they can’t decide who “cashed out for a good reason and who didn’t.”
Wednesday’s $476.2 million allocation to California was the largest share of $2 billion awarded to 17 states. Altogether, CalHFA has received 29 percent of $4.1 billion in foreclosure prevention funds provided this summer to state housing finance agencies.
More information is available at the Keep Your Home website: www.keepyourhomecalifornia.com; or call (916) 373-2585.
