I’m excitedly watching as real estate’s selling season starts. Typically most sales are made from March - October and it will be interesting to see how the new season progresses. I will say, with cautious optimism, that we are seeing evidence in some markets that he bottom has been hit. What does that mean? Well, first we need to see sales volume, which plummeted in 2008, start increasing. Once balance is struck between incoming inventory and properties being sold (absorption rate which is current inventory divided by # of sales in previous month) and we see inventory of 3 months or less then we will start to see pressure on prices and the return of appreciation. In no way do I mean the “fake” appreciation we saw from 2004 - 2007 but slow, consistent appreciation.

Sales of distressed properties in the Bay Area have been the main source of the volume increase we are currently seeing.

In Marin, the $500,000 and under sector of the market is showing signs of stabilization. There are currently 176 active listings. 35 sold in February. 176/35 = 5 months inventory.

In the $500,000 to $999,999 market there are 395 active listings and 41 sold in February = 9.6 months inventory.

In the $1,000,000 to $1,999,999 market there are 260 actives and 10 sold in February = 26 months of inventory.

In the $2,000,000 and up market there are 165 listings and 2 sold in February = 82 months inventory.

Clearly, the only price range of properties moving closer to stabilization is the market under $500,000.

In the Bay Area where most of the home sales are financed with jumbo loans we have been hit hard by the lack of availability of jumbo loans. Is the high-end stagnant due to overpriced homes and/or the lack of jumbo loan availability? Hopefully, that will be answered as lenders move back into the jumbo loan market. Bank of America appears poised to start jumbo lending again.

All in all there are positive signs in the market that have not been present for well over a year. Let’s hope for more of them.

Another reminder to pre-order the Miller Brothers’ book cabout their experience making their first motion picture, “Touching Home” with Ed Harris. The story is fascinating, entertaining and inspiring. PLUS when you pre-order the book you get 2 free tickets to the big event at AT&T Park on June 6. It’ll be a blast! Check it out at:

http://inorintheway.com/ 

The book is only $17 and the shipping is free AND we get free tickets to the big event on June 6 a the AT&T  park. Let’s support these great young artists and have a “ball” at the park.

 When you register make sure you name us, Marin Realty Group, as how you heard about the book. The receipts from ordering online will be your admittance ticket to the park.

National loan modification guidelines were announced today as part of the “Making Home Affordable” program. The Obama administration’s two part program promises to help up to 9 million homeowners. One part of the plan is designed to encourage lenders to modify the loan terms for up to 4 million homeowners, and the second arm of the plan has a goal of refinance up to 5 million homeowners into more affordable fixed-rate loans. The loan modification program runs through 2012.

How do these programs work? For the modification program, borrowers will have to provide their most recent tax return and two pay stubs, as well as an “affidavit of financial hardship” to qualify. Borrowers are only allowed to have their loans modified once, and the program only applies for loans made on Jan. 1 2009, or earlier. Mortgages for single-family properties that are worth more than $729,750 are excluded, as are investment properties, second homes, and commercial properties. Lenders could reduce a borrower’s interest rate to as low as 2 percent for five years. Rates would then rise to about 5 percent until the mortgage is repaid.

Since many homeowners will not qualify for these programs companies providing loan modification services will likely be needed to help. If you want information about loan modifications, please contact me! There are a lot of scams out there so you need to be very careful. I can point you in a safe direction and also give you a free analysis to see if this is the best course of action for you BEFORE you give anyone money to modifiy your loans.

How will this affect you? Since the goverment modifications only lower rates for 5 years, if you want your loans modified then you should seriously consider contracting a law firm to handle negotiations for you so that you can get a permanent rate reduction. The cost of modification with the law firm I send my clients to costs 1% of the loan amount, less than the cost of refinancing. One does NOT need to be late on payments to modify a loan, and foreclosures can also be stopped with attorney involvement. This is a prime time to get bargains on real estate if you plan to build this type of investment portfolio. Since stock values continue to decline, moving your

 

The American Legion Hall on Magnolia Avenue (former home of the Sweetwater Station) in beautiful downtown Larkspur is available for lease.  The main hall is approximately 1,500 sq. ft. and accomodates up to 100 seated at tables or up to 214 seated or standing.  The hall connects to the bar /lounge room and is approximately 300 sq. ft. (10′x30′). 

Also available is the approx. 700 sq. ft. Club Room which is perfect for meetings, classes, seminars, etc. 

Contact Marin Realty Group for additional information, availability and rates. Lou La Gatta, Broker, lou@marinrealtygroup.com 415.927.4443 x322