Belmont Housing Review – February 2011

Once again if we are lulled into believing the raw numbers Belmont’s median home price shot up 14.7% over last February and an unbelievable 23% since just last month—unbelievable being the operative word.

Belmont Home Sales February 2011

(click on the picture to see a larger image). * Yes. Those are Mardi Gras colors…

In fact the median home price in Belmont was $917,500 in February 2011 while last February it was $800,000 and just last month it was $745,000.

But being the spoiler I am I have to report that the size homes which sold last February were only 1640 square feet in size and this February they were 2,030—24% or 390 square feet larger.

We can play around with some fuzzy math and arrive at several conclusions which all point to the fact that year over year prices have actually declined.

A home which is 23% larger yet only costs me 14.7% more seems too good to be true. Part of the inequity has to do with the issue that land remains a constant, which makes any approximation of value just that. Looking at it from several different ways one can safely arrive at a price decline of around 8.3% year-over-year.

SALES

And that perhaps is why home sale in Belmont are up 20%–well, 12 sales this year compared to 10 last year is only two more sales but hey, we have to offer full disclosure right?

In February of 2010 four of those Belmont homes lowered their asking price by on average $28,760 but this February three sellers slashed their asking price by on average $62,000.

Six homes sold for on average $51,000 less than there asking price last year while only four did so this year—for the exact same amount.

Each year two of the homes sold right at the seller’s asking price while last year two sold for more—on average $53,000 and this year six sold for on average $15,000 more.

DOM

The time it took to sell your home dropped dramatically over last year. Several factors are in play here. First there were more homes to choose from this year which helped buyers come to a decision more quickly. Both years there were many hangover listings from the previous December which carried with them the dreaded DOM stigma but this year we sold a few more of them than last year.

% Received.

The amount the seller received of their asking price 98.7% remained unchanged from last year but was up 1.4% over last month.

On an insider note, 13 of the 19 homes pending sale in Belmont right now are scheduled to close this month and we personally know that of the 19, several will be closing well over the asking price thanks to multiple offers. Yes, the word buyers hate to hear has raised its ugly head again due to the low inventory of homes to buy.

If you are considering selling your Belmont home, right now’s a pretty good time according to the activity we’ve seen.

 

Best Belmont Home of the Week 3.1.2011

Each week we try and give a nod to a deserving home we saw on Tuesday’s REALTOR tour.

We try and choose homes which are new on the market and are priced well for what they offer. To be exact, by "well" we mean these homes will probably not be around for a weekend open house, unless the seller holds out for multiple offers.

Sometimes the homes are bank owned and other times they are homes which have been meticulously cared for. We might even throw in a home which is just really cool but we’ll let you know if we think it’s well priced or not.

So today we acknowledge 932 Anita Avenue in Belmont presented by Coldwell Banker.

What makes this home stand out is the value—and it’s a nice home. Good area, some view, large yard, updated interior, cul-de-sac location and best of all priced at $1,088,000. There are probably agents who would have taken that listing for $100,000 more but we believe this home is spot on and should move quickly.

As always if you see a home–this one or any other that you’d like more information on–we’re here to help and just a phone call or email away.

 

View All Photos    Virtual Tour    Display Map

  

  

932 ANITA AV, Belmont 94002 (Belmont)
Beds: 4 beds  Baths Full/Partial: 2|1 baths 

$1,088,000  MLS: 81108426
DOM: 4   

  Anita

Property Overview 

 

Area:

Belmont Country Club Etc. (Area 362)

Beds, Baths:

4, 2|1

Age:

36 years

  

SqFt:

2,620

Lot:

15,000 sq ft

  

 

Pricing/Dates 

List :

$1,088,000

 

02/25/2011

Original :

$1,088,000

 

02/25/2011

OffMktDate:

      

Active

 

 

 

Remarks 

Gorgeous remodel – Don't miss! Open floor plan and soaring ceilings. Each room flows into the next; perfect for entertaining. Move in ready, remodeled bathrooms, fabulous gourmet kitchen/FR, beautiful wood floors, master suite on main level, lrg two car garage, huge lot. Great location; end of cul-de-sac, near shopping, restaurants, Caltrain, and #1 Central Elementary.

Property Features 

Familyroom
Family Room Kitchen

Informal Dining Area
Eat in Kitchen

Formal Dining Area
Living Rm/Dining Rm Combo

Pool Options
    - -

Garage/Parking
2 Car Garage
 

 

 
 

 

 
 

 

 

How to Pay Less Property Tax By Carrying Your Tax Base

If you’ve thought of moving but are frightened at the prospect of your property taxes increasing we have a few propositions for you—60, 90 and 110. You may already be aware of these but we have some new information which might make them more attractive.

Most homeowner’s are keenly aware that buying a new home means having their property tax base increased to 1% of the purchase price. For those of you who have owned a home for many years this alone can make a move financially impossible; for many, it means they couldn’t afford to buy the home they already own.

A BRIEF HISTORY

Proposition 60 enacted into law in 1986 allowed for the one-time transfer of your current home’s tax base to a replacement property of equal or lesser value after the age of 55 of either spouse, providing that the replacement property was located within the same county.

Proposition 90 passed by the legislature in 1989 allowed counties to voluntarily extend the transfer into their county to all 58 California Counties.

Proposition 110 passed in 1996 extends this relief to permanently disabled people, whether 55 or not.

The problem for most people wishing to benefit from this tax base transfer is they are limited to moving within the county in which they currently reside, or moving to one of only a handful of reciprocal counties (Alameda, Los Angeles, Orange, San Diego, Ventura, San Mateo, and Santa Clara).

Fortunately, another very desirable county in the Sierra foothills was added to the list—El Dorado. Their legislature passed a resolution into law on December 10th 2009 taking effect February 15th of 2010 allowing anyone in the 58 California counties to transfer their tax base to El Dorado County.

There are rules you must follow or your transfer will be denied so before you consider a move you will want to read several of the helpful publications which exist, and/or consult with your tax or legal advisor. The State Board of Equalization offers some easy to understand  “Question and Answer” publications as well as a pdf containing many test case scenarios.

If you’ve been holding back on making a move to retain your home’s current tax base it’s nice to know you now have some great options. And if you’re not familiar with this Gold Rush era county, you owe it to yourself to check it out.

There are many cities within El Dorado County which offer a great quality with life. Located around Folsom Lake with its endless water activities, El Dorado County extends all of the way to South Lake Tahoe. The many towns in between including Placerville,  offer affordable housing options—from award winning retirement communities to cities catering to the first time buyer and neighborhoods that rival homes the Peninsula has to offer—including Hillsborough—all at a fraction of what it costs to live in the Bay Area.

Visit the on-line version of this newsletter at MorganHomes.com and use the underlined links in this article to read more.  If you are not comfortable with the internet, simply give us a call and we’ll mail you out some more information.

 

Disclaimer:

Drew & Christine Morgan are REALTORS/NOTARY PUBLIC in Belmont, CA. with more than 20 years experience in helping sellers and buyers in their community. They may be reached at (650) 508.1441.

The information contained in this article is educational and intended for informational purposes only. It does not constitute real estate, tax or legal advice, nor does it substitute for advice specific to your situation. Always consult an appropriate professional familiar with your scenario.

 

Can San Mateo Survive a Tidal Wave?

San Mateo County Market Snapshot–Are We Treading Water?   

Those of you who follow our market updates know we put our hometown, Belmont, under a market microscope every month to get a glimpse as to where the market appears to be headed.

Of course that really is living in a Petri dish when it comes to the real estate market as a whole.

Real estate is very local—what goes on in even one part of a city could be entirely different from another. That said eventually positive market trends trickle down and negative ones up.

As evidence of this phenomenon one can go back and look at our charts from 2007 when Palo Alto was still doing famously yet Daly City may as well have slid into the ocean (many homeowners probably wish it had).

 

Today we visit the numbers—year over year—for San Mateo County as a whole, hoping to see some trends that will give us an inkling as to where consumer sentiment is, as reflected in sales, median price, etc.

SALES

New Listings

Current Inventory

Closed Sales

Average DOM

Average Sales Price

Median Sales Price

% LP Rec'd

Total $ Vol

 2011   545

1400

233

74

786,509

587,500

96.48

182,470,145
               

2010   484

1156

229

82

840,235

650,000

97.17

192,413,866

2009   530

1452

163

74

683,900

553,750

97.20

110,791,806

 

 

              

It’s easy to see that the ripples of consumer uncertainty could easily capsize the boat of recovery if the tides of low interest rates come in too fast. Cast-of-gilligans-island

Sales are certainly better than the low of 2009 and remain steady as they did in our Belmont example. But as in the Belmont report the median price showed a decline in home values since last January. That’s not necessarily a bad thing, especially if you are a potential home buyer and it doesn’t mean values are still dropping, just that they did drop year over year.

Interest rates are going up, and have done so rapidly in the last few months—around ¾ of a point. That hurts the ability for people to qualify for a home and with less demand there’s a potential for prices to decrease further.

But as we cautioned ourselves, we are comparing 2010–a year of government sponsored tax rebates to 2011 without. Let's see if our minnow of a recovery can weather the storm without a life raft.

Thanks for checking back in with us. 

*Data San Mateo County MLS.

Disclaimer: This information is for entertainment purposes only and includes no legal, accounting or real estate advice nor is this response in tended to be specific to your situation-consult a specialist for your specific situation.

 

 

Belmont Home Prices Decline Further

We’re only one month into 2011 and already things are interesting.

Belmont home sales in January 2011 remained brisk. There were twelve homes which closed escrow in January, one more than last year but eight more than in 2009.

It appears a small trend has developed indicating January 2009, as suspected, was the low point for real estate.


 Glass But we aren’t out of the woods yet. Depending on who’s talking to you—a glass half full or half empty person—we’re either headed into a slow recovery or its lull in the action before a double dip. Never mind the glass is completely empty person—they’ll always be waiting for the “right time” to buy a home yet never do.

The definition of a double dip is when things get worse than they were at the trough of a business cycle. Considering how bad things were at one point in this last cycle, we find that implausible—that the state of affairs could get worse but hey, we don’t read tea leaves either. Of course that’s not to say things can't remain in a state of unsteadiness for years to come.

Within this recovery there will undoubtedly be micro swings in prices and sales which are highly dependent on consumer confidence, and of course interest rates. The media will predictably pounce on these blips on the radar screen—stay tuned.

January bel 2011

Click on the chart to see a full-sized version. And yes, those are Green Bay colors…

NEW LISTINGS

The number of new listings for Belmont in January 2011 stood at 24—six more than in 2010. The inventory levels for these same periods were 38 for 2011 and 35 for 2010.  The more interesting stat is the months of inventory—how long it would take to sell all of the homes at the current pace and inventory levels—a ratio if you will.

In January of 2009 it stood at over 10 months, and the last two January’s have seen that fall to just around 3 months. On a national level the country would be thrilled to see those numbers—the nation is hovering around the 11 month levels—six months defines a stable market.

Why then did prices still fall? Simple. Consumer confidence remains weak.

Sales are on the rise because sellers have become realistic about their home’s value, not because demand has increased. The months of inventory has remained low because many sellers aren't selling their homes. In Belmont, when inventory levels reach more than 50 homes for sale we experience a buyers’ market. Yet with inventory levels currently at 38 homes for sale, why then is it not a seller’s market?

Well the short answer is it is and it isn’t. Seller’s are managing to create a faux seller’s market by listing homes low and creating a bidding war, and keeping inventory levels low (no it’s not a conspiracy it’s just that a lot of sellers either can’t sell or won’t until prices go back up). The truth is buyers can be pickier in some instances; but with inventory levels this low it means it may take a long time to find the home they want.

Did Sellers get their Asking Price?

In January 2011 five of the 12 sellers lowered their asking price by on average $43,000 in order to attract a buyer. In 2010 that number was four sellers for an average of $65,000. Here’s the kicker—in 2010 all 11 homes sold for under the seller’s asking price; for on average $50,000 less, while in 2011 only seven homes sold for less than asking and only $30K (we threw out the one that was ridiculously off base).

So prices are up right? Nope. Sellers are just more sensible.

The median price for a Belmont home in 2011 was $745,000—down from $850,000 in 2010 and the size homes selling in 2011 were a smaller which compounds the difference.

The median size home sold in 2011 was 106 square feet larger than in 2010. This means that even if the median price was unchanged, the size home you could buy for the same money increased 6%. Now let’s factor in the $50,000 median price decline which adds another 5.8% drop in value and you’re looking at almost 12% price decline year over year.

If you are a buyer you need to know that any potential savings you might reap by waiting to see if values decline further could easily be wiped out by an increase in interest rates. Now’s not a bad time to consider getting off the fence…

 

* Data extracted from the San Mateo County MLS

Disclaimer: This information is for entertainment purposes only and includes no legal, accounting or real estate advice nor is this response in tended to be specific to your situation-consult a specialist for your specific situation.


 

Public announcement regarding health care for children

From the Department of Insurance:

Act Before March 1st to get Lower Premiums for the Health Care Your Children May Need!!

Important Enrollment Window Closing Soon

If your children are uninsured, there are new options to get them covered, but it's important to act now!
Visit finder.healthcare.gov to search for coverage options. 

Individual Insurance

With many employers cutting back on health insurance, more Californians may need to shop directly with an insurance company or insurance agent for child or family coverage. This "individual market" insurance can be expensive, but keeping some important rules in mind may help:

  • No More Denials for "Pre-Existing Conditions"
    Because of the new federal health care law, all children must be offered health coverage if they apply. Insurance companies can no longer deny kids coverage because of a "pre-existing condition" like asthma or diabetes.
  • Apply Before March 1st to Avoid Much Higher Costs
    If you wait and apply after the "open enrollment period" ends on March 1st, you could face much higher premium costs since there are no limits on premiums outside the open enrollment period. After March 1st, the next "open enrollment period" is the month your child was born. For example, if your child's birthday is August 8th, you can apply during the entire month of August, without facing significantly higher premiums. (There are other open enrollment periods based on changes in family circumstances such as a birth, divorce, job loss, or loss of public coverage.)
  • Keep Your Children Insured to Avoid Higher Costs
    You may face a significant penalty premium increase (20 percent) if you let your child's coverage end and then apply again, so keep your children insured.
  • You Have Protections if Your Child is Denied Coverage
    Remember, the health care law means that no child should be denied insurance for health reasons. If your child is denied coverage for any reason, call the state health insurance hotline at 1-888-466-2219.

Affordable Insurance Options: Healthy Families and Medi-Cal

Boy using inhalerIf a private insurance plan is unaffordable, don't give up. With the recession hitting California families hard, low-cost or no-cost insurance from Healthy Families and Medi-Cal keep millions of California kids healthy. Your child may qualify if your family income is up to roughly $46,000 annually (for a family of three – higher for larger families). For more information call 1-877-KIDS NOW or visit www.100percentcampaign.org/needinsurance/.

Your Job

If you have health coverage through your job, it is not affected by this open enrollment period and you should check with your employer to see if your child can join your health plan too.

 

Belmont Youth Hits Power Pole on Mezes

  Belmont
 
 

BELMONT POLICE DEPARTMENT

PRESS RELEASE

Pursuant to California Government Code § 6254(f)

____________________________________________________________________________________ 

Type of Incident:   Non-Injury Traffic Collision Knocks out Power       Case #: 1102-0002

 

Location:  2000 Blk Mezes Ave, Belmont                                                Date: 2/1/11    Time:  0845hrs

____________________________________________________________________________________

EVENT

A pick-up truck collided with a utility pole this morning, knocking out electrical service to a Belmont neighborhood.  There were no injuries, but approx. 200 customers lost power as a result of the collision. The cause of the collision is under investigation, but the following is known at this time.

 

At approx. 8:45am, a Chevrolet pick-up driven by a 17-year old Belmont youth, was westbound in the 2000 block of Mezes Ave, when the vehicle collided with a utility pole.  The pole broke in half as a result of the impact, bringing down live power lines onto the street.  Belmont Police, Belmont-San Carlos Fire and PG&E crews responded to the scene and secured the lines.  The driver was not injured and no other vehicles were involved. 

 

PG&E crews will be working throughout the day to erect a new utility pole and restore service to the neighborhood.  It is anticipated that electrical service will be restored by this evening.

 

 

###

 

  

 

 

  

 

 

 

 

 

By:  Lieutenant Patrick Halleran                                                      Authorized By:  Captain Dan DeSmidt

Date:  2/1/11    Time:  1500hrs                                                         Date:  2/1/11    Time:  1500hrs

Publish

 

Best Home of the Week – 1-25-11

Even though we had a normal week with no holidays, and the list of homes to tour this Tuesday was as thick as a phone book for a small town, there really weren't and stand-outs in Belmont. Don't get us wrong there were some nice homes but it appears as though sellers think the market rebounded over the holiday and priced their homes in the stratosphere.

We chose this home in San Carlos because it's reasonably priced, in apparently good condition and is located on a coveted street in the White Oaks.

If you'd like to see this home, be sure and give us a call (650) 508-1441

Picture1

Property Overview

 

125 BELVEDERE AV

San Carlos (San Carlos) 94070

Detached Single Family (Class 1)

Beds, Baths:

3, 2|0

SqFt:

1,430

Lot:

4,600 sq ft

Yr Built / Age:

1946 / 65 years

Assoc Fee:

  

List Price:

$979,000

 

 

Extensively remodeled home ideally situated on a quiet street in the White Oaks neighborhood. Tastefully upgraded & remodeled 2 story home offering 3 bedrooms, 2 baths, plus a bonus room. Hardwood floors. Lovely large granite kitchen with ample counter space, all new stainless steel appliances and breakfast nook. Living room with a large window. Bonus rm on main level opens to level back yard

Best Home of the Week – 1-18-2011

Whenever a holiday falls on a Monday, many homes are not toured on our usual Tuesday tour day. Simply put they miss the tour sheet since the deadline is moved to the Friday preceding the holiday, instead of the usual Monday deadline.

So there weren’t a lot of homes to choose from but we did find this home in Redwood Shores which stood apart from the rest for the value it offers.

   

  

   
Redwood Shores 94065 (Redwood Shores)
$840,000 Beds: 3 beds Baths: 3|0 baths		  
DOM: 4   MLS: 81101788 
Property Overview
Redwood Shores (Redwood Shores) 94065
Detached Single Family (Class 1)
Beds, Baths: 3, 3|0
SqFt: 1,520
Lot: 2,828 sq ft
Yr Built / Age: 1998 / 13 years
Assoc Fee: $166
List Price: $840,000
Sale Price:  
Sale Date:  
COE Date:  
Remarks
Open Sunday 1/23 2-4PM. 13 yr old. High ceiling, fireplace & TV niche. Surround sound ready. Gleaming pecan hardwood floors downstairs. Separate dining room next to open kitchen w/ breakfast bar, Corian counters & ample maple cabinets. 1 br 1 ba down. Low maintenance garden. Roomy landing upstairs-home office space. 2 spacious master suites upstairs. Walk to playground, lagoon, new RWS school
Schools/Districts
Elem: - -/ Belmont-Redwood Shores Elementary
Middle: - -
High: - -/ Sequoia Union High
Property Features
Familyroom
No Family Room

Informal Dining Area
Breakfast Bar

Formal Dining Area
Separate Dining Room

Other Rooms
Utility Room

Bedroom Descriptions
2 or More Master Suites

Shower And Tub
2 or More Showers over Tubs

Shower
1 Stall Shower

Other Areas
Laundry Area – Inside

 Amenities
Cable TV Available
Double Pane Windows
Gas Hookup in Kitchen
High Ceilings
Satellite Dish

Fireplace Location
Fireplace in Living Room

Floor Covering(S)
Hardwood
Linoleum or Vinyl
Tile
Wall to Wall Carpeting

Energy Features
    - -

 Listing Includes
1 Dishwasher
1 Refrigerator
Disposal
Microwave Oven
Window Coverings

Garage/Parking
2 Car Garage
Attached

Lot Description
Level Lot

View
Neighborhood View

 Yards/Grounds
Patio
Sprinklers – Front
Sprinklers – Rear

Has Pool
No Pool

Pool Description
    - -

Pool Options
    - -

Style
    - -

Horse Property
No

Horse Property Description
    - -
Listed By Anna Ow, Coldwell Banker
Presented by Drew L. Morgan, RE/MAX Star Properties, dmorgan@morganhomes.com
** Information contained on this report is designed for accuracy but is not guaranteed **

 

 

Interested in this home? Why not give us a call. We here to answer any questions you have and help you on your way to home ownership. (650) 508-1441

 

 

Sales of Existing Homes Double in Belmont for December 2010.

For Belmont homeowners there appears to be some stability creeping into the market. Home sales were brisk this December—double what they were in 2009. Those of you who may remember the home buyer tax credit was due to end in November last year which pulled a lot of buyers from December sales into November—all across the country. Not so much in Belmont since the qualifying purchase price had to be less than $800,000. Nevertheless we went back to compare previous December sales and they normally fall in the area of 12 for the month of December. One has to go back to 2005 when the housing market was red hot to see sales figures this high.

These first two graphs illustrate the housing activity in Belmont for the Month of December 2010 and the year end averages for the entire year. Bel chart 1

 

 

 

Bel chrt 2 year end

If we run we run down the usual list of market indicators, across the board there are some positive signs for homeowners.

Belmont December 2010

*Highlighted homes were sold by Drew & Christine Morgan. Click on the graph for a full-sized image.

DOM

The time it took for a seller in Belmont to get a contract on their home was at 58, up only slightly from last year’s 50 and is pretty well mitigated with the doubling of sales.

PERCENT RECEIVED

Belmont sellers received 98.1% of their asking price in December 2010 as compared to 97.22 in December of 2009.

Half of the homes in December 2010 underwent price reductions for on average $58,000 before they sold. Last year 42% of sellers reduced their price by on average $69,000.

Of the 24 sales this last December two sold at the seller’s asking price, 16 sold for less than asking (by on average ($33,488), and six homes sold over the seller’s asking price by on average $17,183.

Homes which sold over asking did so on average in 26 days while homes which sold for less took more than 65 days to sell.*

MEDIAN SALE PRICE

If you’ve followed this blog for any length of time you’ve heard us talk about how deceiving the median price can be in any small sample size. Once again the median home price is a bit misleading as it has the median home price in Belmont in December of 2010 at $912,500. That’s $102,750 (12.7%) more than last year’s $809,750.

So the answer lies somewhere in the numbers but ferreting out a more accurate sense of value is difficult. The size homes which sold in 2009 were on average 277 square feet smaller than the homes which sold in December of 2010, which accounts for most of the perceived median price increase. It just so happens that the size home you could get this year was also around 13% larger than last year—effectively whipping out any gain.

Using the year-end totals helps even out some of the distortion inherent in median price figures as the graph above demonstrates. If you take an average of each month’s median home price in Belmont for 2009, the average median home price was $847,604 and for 2010 it was $908,159—an increase of 7.1%. The average size of the home which sold in the two periods also increased from 1730 in 2009 to 2000 in 2020, a 15.6% increase. So was there any home appreciation in Belmont in 2010? Probably not. It appeared that in the first quarter of 2010 homes might increase in value but as quarters two and three came to a close (immediately following the conclusion of the homebuyer incentive programs) it was clear that would not be the case. The fourth quarter managed to salvage some of the losses in the two previous quarters as you shall probably hear soon n the media.

If you are considering selling your home this year be sure and contact us for a valuation of your home. We are experts in selling peninsula properties and our record of selling every home we list for sale is unparalleled in our industry.

 Note: We throw out homes we know were re-listed or underwent huge price reductions only to sell for slightly higher than their greatly reduced price.

Disclaimer: The information contained in this newsletter is educational and intended for informational purposes only. It does not constitute real estate, tax or legal advice, nor does it substitute for advice specific to your situation. Always consult an appropriate professional familiar with your scenario.