Bad News/Good News

We'll start with the bad news...You probably heard that homes sales in July were at the lowest levels in 15 years and took the largest drop ever. I'm not surprised at this since we had one of our worst months in Bodega Bay with a whopping five sales.

Nationally, this drop is being blamed on the phase-out of the $8000 tax credit. Personally, I saw little impact of that credit here on the Coast so I don't think it had anything to do with anything here (except for the potential psychological effects on buyers) since an $8000 credit on a million dollar home is hardly a motivating factor.

That said, we did have some positive news in California as a whole. While the nation saw some scary numbers, California actually saw a 10% increase in the median price, although the number of sales dropped significantly. We've seen increases for nine consecutive months - a nice streak in this unstable and unpredictable market...

Fast Facts from CAR

Home affordability remains high as prices drop and interest rates hover in the 4's...


Calif. median home price: June 2010: $311,950 (Source: C.A.R.)

Calif. highest median home price by C.A.R. region June 2010: Santa Barbara So. Coast $914,760 (Source: C.A.R.)

Calif. lowest median home price by C.A.R. region June 2010: High Desert $125,620 (Source: C.A.R.)

Calif. First-time Buyer Affordability Index - First quarter 2010: 66 percent (Source: C.A.R.)

Mortgage rates: Week ending 7/29/2010 30-yr. fixed: 4.54 Fees/points: 0.7% 15-yr. fixed: 4% Fees/points: 0.7% 1-yr. adjustable: 3.64% Fees/points: 0.7% (Source: Freddie Mac)

Supervisor Efren Carrillo to Visit Bodega Bay

When: Wednesday, August 18 at 5:30
Where: Bodega Bay Fire Station - 510 S. Highway 1
More Info: (707) 565-3760

Supervisor Efren Carrillo is hosting this meeting to provide an opportunity for the public to receive an update on county issues and raise any issues of concern. The format will be informal and allow for the greatest amount of dialogue. Members of the community are encouraged to attend.

Click here for a flyer:

Market Summary for July 2010

The numbers are in for July and they aren't impressive. We've had little movement in the median price over the last year with little ups & downs along the way - this month is one of those downs. A big contributor to this decrease in price is the lack of activity we've seen during the early summer months. We don't generally see the predictable periods that many places experience (lots of activity in late Spring/early Summer) but momentum seemed to be headed that way. It didn't continue and we can only hope for an active Fall & Winter in 2010.

That said, interest rates are still at or near historic lows and money seems to be loosening up a bit as banks get caught up after the foreclosure onslaught. I guess they need to get back to the business of lending money again. It's a great time to buy.

If you have any questions or comments, don't hesitate to call or email via my new contact information:
Artisan Sotheby's International Realty
(707) 481-8474 or steve@coastalagent.com

Here's a new and improved version of the market report.

Fannie & Freddie Threaten SoCo Energy Independence Program

The 18-month old program that allows homeowners increase the efficiency of their home (like high efficiency heaters, solar panels, insulation, etc.) and finance the cost through the County is being threatened by the agency that oversees Fannie Mae and Freddie Mac.

In my opinion, this organization misunderstands the program and potential benefits that these organizations may realize should they fully support it.

Although the cost of the improvements is attached to (and paid back through) the annual property taxes, the increased value of the home should more than cover any increased risk of foreclosure. Spreading the cost of the improvements over a 20-year period helps minimize that risk and reduces the cost of ownership through lower energy bills. And that's the whole point, isn't it?

Here's an article from NPR that summarizes the current situation.

A quick update on the market...

Following a strong Month in May, June took a step back with only five homes placed in escrow - compared to 17 last month. Nine homes closed escrow in June at a median price of $575,000 and nearly half were bank-owned or short sales.

That said, the number of REO's appears to be dwindling which could lead to some more stability. We've held a very steady median price over the last 12 months and I'd expect that to continue.

In addition, we're seeing continued near-record lows on interest rates - even for jumbo loans - and inventories are higher, but not out of our normal range.

I'll have a full report on July's numbers around the first of August.

Coast to Get New Verizon Wireless Tower

Verizon Wireless is installing a new tower at 5827 Sierra Grande Drive in Sereno del Mar, approximately five miles north of the town of Bodega Bay. Placement of the county-permitted 40 foot high pole will happen this month.

The cell site is meant to cover the area between Carmet and Sereno del Mar and parts of Highway One.

Heidi Flato, Public Relations Officer for Verizon Wireless Northern California and Nevada Region, said, “Our goal is to provide the best possible wireless voice and data service for our customers.”

“We are trying to improve service in the West County, parts of which are currently un-served.”

Click here for the Press Democrat blog post