Sylvia Seufferlein Blog

Summer Wrap Up

Fri, 26 Aug 2011 00:00:00 -0700

Summer Wrap Up

We are truly fortunate to live and work in what seems like a beacon of light. Silicon Valley's housing market continues to improve and stand alone vs. the rest of the nation. Our current level of housing inventory is at an all-time low and it seems buyer demand is only increasing, putting continued upward pressure on prices. Residential rents continue to rise substantially, and have skyrocketed up +12.6% in Q2. Looking ahead into Fall, we expect housing demand to continue due to record-low mortgage rates, employment hiring, investing and relocating to beautiful Silicon Valley.

Market Snapshot:

JUST LISTED + Sereno Group Market Dynamic Snapshot

Mon, 11 Apr 2011 00:00:00 -0700

Santa Clara and San Mateo County Highlights

With recent reports in the media discussing the dip in national real estate prices, it's important to remember that it's just that: national level data and cannot always be tied to the specific Bay Area markets. The problem with looking at data on a national level is that it's just too general; real estate has always been and will continue to be driven by local forces. There has been misleading information published in the Mercury News indicating a Silicon Valley home slump, but in all reality our prices remain flat and stable. Depending on which day of the week the media decides to pull the information, the outcome and analysis will be different. In our day-to-day business practice, we look at specific neighborhood trends and housing types when discussing the overall climate, and this is the information we pass onto you.

In Silicon Valley, we are making slow but noticeable progress. Entrepreneurship is alive and well, and consumer confidence continues to rise (spending jumped 0.7% in February). There is a lot of pent up buyer demand in the housing market - we saw more multiple offers in the month February then in all of 2010. The high-end and off-market/exclusive inventory has come back with prices slowly rebounding to support the sales. Over the next few months we will begin to see how much of the pent-up demand comes to fruition during the traditional spring-summer home-buying season. Our sense is that we could see sales jump significantly from today's levels if the economic outlook improves and interest rates remain at these historic lows. On the employment front, the Silicon Valley area had the second most jobs added for California during the last year (140,000), according to figures from the U.S. Bureau of Labor Statistics, and this trend continues into 2011 paving the way for more hiring and investing. GDP is slightly higher than it was at this time last year and consumer spending looks stronger, so people are willing to deploy capital and replenish inventories.

We are starting to see the lowest days on market for housing inventories in areas like Palo Alto and Cupertino than we have in the last three years. Currently, we have 1.6 months supply of inventory in Cupertino with 18 days on market, and a fairly competitive pricing landscape. A property in prime Cupertino just listed last week with 4 bedrooms, 3 bathrooms, 2,100sf and nicely re-modeled for $1,378,000 sold the weekend it came on with 5 offers and slightly over asking price. This was of course a matter of the property itself, and was most closely tied to pricing and perceived value for the buyers.

Santa Clara & San Mateo County Highlights:

The Median Home Price in Santa Clara County declined slightly -1% from $480,000 in January 2011 to $475,000 at the end of February 2011. Looking at specific markets, in Palo Alto the median price for single-family homes increased +8% from February 2010 to February 2011, to $1,674,000. In addition, the average days on market for Palo Alto dropped to 37 days from 72 in February as inventory began to move quickly.

In San Mateo County, Median single-family home price increased +5.2% in February to $605,000 from $575,000 in February 2011.

Supply & Demand: The number of for-sale properties in SCC is currently down -18.1%. While we've seen the number of properties in contract decline in February from the numbers in January, but the year over year numbers are up 39%, indicating healthy growth in the local market. We had 1,631 pending sales in February 2011 vs. 1,173 in February 2010. In SMC, the number of under contract properties is up +1.6%, and the sold/closed escrows up +4.4%.

We currently have a 2.4 months supply of inventory in Santa Clara County and 3.2 in San Mateo. This is a 2-year low for both counties, and is one marker that should be given particular attention to as this is being met with increasing buyer demand in a variety of price ranges. Days on market continues to decline for both counties, and is now at 70 days for SCC and SMC.

Sales Absorption & Percent of Properties Under Contract

Santa Clara County

February 2009: 1,022 or 11.2% of Total Properties UC
February 2010: 1,173 or 16.7%
February 2011: 1,631 or 25%
- In Palo Alto, 24% of all properties are UC with 1.4 Month's supply and 34 DOM
- In Los Altos, 20.% of all properties are UC with 2.2 MSI and 69 DOM
- In Mountain View, 22% of all properties are UC with 1.7 MSI and 31 DOM
- In Cupertino, 28% of all properties are UC with 1.6 MSI and 18 DOM

San Mateo County

February 2009: 321 or 11% of Total Properties UC
February 2010: 364 or 14%
February 2011: 549 or 21%

JUST LISTED

Artistic Loft Style Living in Atheron - 29 Almendral

This Modern three bedroom, two bath home has been stunningly and artistically rebuilt with the finest care, thought,and quality; large spacious rooms seamlessly blend into one another creating an expansive and serene atmosphere. The home is complete with charcoal bamboo floors throughout, skylights and french doors that bring natural light into the home. The kitchen has a five burner gas stove, wenge custom made cabinetry, double ovens and a microwave drawer. Breakfast bar and counter are made from Siles Stone from Spain honed to a perfect finish. Energy efficient updates include "green" lights (automatically turn off after 10 minutes), bamboo floors, and dual heating systems. There are large walk-in roman showers in both bathrooms, glass doors and a large square Japanese soaking tub in masterbath. With french doors leading to yard, it is a perfect home for indoor/outdoor entertaining. Offered for $1,795,000. Virtual Tour

· 3 bedrooms · 2 baths · Approximately 2,265 sf · Approximate lot size 6,750 sf ·1 car detached garage ·

An Enchanted Setting in Los Altos Hills - 10696 Mora Drive

Follow the brick walkway under wisteria covered trellises to an enchanted setting. This lovely California contemporary ranch is located on a quiet, private drive adjacent to Rancho San Antonio Preserve and is minutes to hiking trails, freeway access, Rancho San Antonio shopping center and Loyola Corners. With 4+ bedrooms, 3 and 1/2 bath and a 3 car attached garage, this home boasts spectacular views of the hills, open space and is an ideal setting for intimate gathering or large entertaining. It has a pool, living room with French doors overlooking lush landscape, great room with built-ins, floor to ceiling rock fireplace and windows viewing the pool area. It has a versatile floor plan with an apartment & kitchen. Offered for $2,550,000. Los Altos schools. Virtual Tour

· 4+ bedrooms · 3.5 baths · Approximately 3,584 sf · Approximate lot size 1.5 acres ·3 car attached garage ·

Earthquake Preparedness

In light of the recent disaster and tragic events in Japan, we have created a helpful Earthquake Preparedness Checklist which we strongly encourage you to review and put together for yourself and your family if you haven't already.

Our hearts and thoughts go out to all of those affected by the devastation.

Just Listed - Artistic Loft Style Living in Atherton

Tue, 05 Apr 2011 00:00:00 -0700

Just Listed - Artistic Loft Style Living in Atherton. We had a busy Broker's Tour this morning to preview and showcase the property to Realtors; over 35 agents attended (many whom remembered what this house used to look like before it was torn down to the studs and remarkably re-done). As mentioned in the flier below, this modern home has been stunningly and artistically rebuilt with the finest care, thought and quality; large spacious rooms seamlessly blend into one another creating an expansive and serene atmosphere. It boasts 3 bedrooms, 2 bath approx 2,265sf, with lot size 6,750sf. The list price is $1,795,000. See the virtual tour.

29 Almendral, Atherton - Flier

Living and Kitchen Area

Kitchen, Living and Dining

Family/Den View

Master Bedroom

Side Yard

Update on Downtown Los Altos Construction

Wed, 23 Mar 2011 00:00:00 -0700

The closure work at Third & State Streets will continue through next week. A concrete electrical cabinet found under the street has caused a delay in the project. The schedule adjustment will result in the start of the closure work at Second and State Streets to be pushed back until the week of April 4. This new start date is contingent on the weather and is subject to further adjustments.

February 2011 Market Dynamic Report

Thu, 24 Feb 2011 00:00:00 -0800

Santa Clara and San Mateo County Highlights

In January, we continued to see price variation in Silicon Valley and the Peninsula, with the overall Santa Clara and San Mateo county median home price declining -6% and -12%, respectively. This is largely driven by seasonality and we expect to see an uptick in prices in February. However, in January we saw multiple offers becoming more frequent. All-cash buyers and many investors came back into the market, targeting foreclosures, tear-downs and income producing property. Though there has been a recent spike in foreclosures, they are still below last year's levels.

While we are all still jittery from the market crash, we are cautiously optimistic with the buzz centered around job growth for Silicon Valley and what the tech, health, and energy industries will bring for the overall local economy. Consumer confidence has continued to rebound, increasing from 64.8 in January to 70.4 in February to date.

Santa Clara & San Mateo Counties : January 2011

The Median Home Price in Santa Clara County declined from $499,000 in December 2010 to $468,000 at the end of January 2011. As mentioned above, this is a typical early year decline that we have seen from December/January in each of the past 3 years. January 2011's median is slightly lower than January 2010 ($475,000) but higher than January two years ago ($417,000). Based on increasing sales activity moving into higher price ranges, we anticipate reaching a two-year high in the median as we move further into 2011.

Similarly, San Mateo County Median declined from $600,000 in December 2010 to $525,000 at the end of January 2011. The median is lower than January of 2010 ($575,000) but slightly higher than January two years ago ($515,000).

Supply & Demand: The number of for sale properties in SCC is currently down -20.1%. Properties under contract are up slightly +2.3% in SCC and in SMC +10.4%. We would like to point out that year over year, the number of under contract properties are up significantly: in January of 2010 in SCC there were 1,007 properties under contract, and in January 2011 there were 1,585 pending sales at month's end! Sold/closed escrows are +2.4% in SCC and impressive +24.3% in SMC.

We are starting out 2011 with 2.3 months supply of inventory in Santa Clara County and 3.3 in San Mateo. This is a 2-year low for both counties, and is one marker that should be given particular attention to as this is being met with increasing buyer demand in a variety of price ranges. Days on market is hovering at 75+ day range in January which is typical for this time of year.

Sales Absorption & Percent of Properties Under Contract

Santa Clara County

January 2009: 977 or 10.4% of Total Properties UC
January 2010: 1,007 or 16.6%
January 2011: 1,585 or 26.7%
- In Palo Alto, 33.8% of all properties are UC with 1.7 Month's supply and 45 DOM
- In Los Altos, 20.7% of all properties are UC with 3.5 MSI and 56 DOM
- In Mountain View, 26% of all properties are UC with 2.3 MSI and 42 DOM

San Mateo County

January 2009: 312 or 11.2% of Total Properties UC
January 2010: 367 or 16.6%
January 2011: 483 or 20.5%

Neighborhood Watch

Los Altos

Every month we will begin to feature a neighborhood snapshot and highlights from around the Peninsula and Silicon Valley. This month we have an eye on Los Altos and the deep-rooted history that makes it such a beautiful place to live. Since incorporation in 1952, then-encompassing apricot and plum orchards, Los Altos has grown to a community of mostly single-family homes and tree-lined streets, with 7-square miles located in between Mountain View and Los Altos Hills. Known for it's excellent schools and neighborhoods, Los Altos supports seven commercial areas developed with small businesses, schools, libraries and churches, and close to 30,000 residents.

Old Los Altos, as the neighborhood is appropriately called because it was the original town, is defined by El Monte and Edith Avenue, Foothill Expressway, and what is now Los Altos Hills. A relatively small neighborhood, most of the lot-sizes are one-quarter acre, with houses built in diverse architectural styles dating as far back as the early 1900's. Prices in this neighborhood have remained stable over the past year: from 2009-2010 prices varied +/- 5% with the average home selling for $1.86M. There are currently 2 active properties on the market in Old Los Altos and no pending sales. In 2010, 8 homes sold in this neighborhood, the same number as in 2009. This sought after neighborhood is highly desirable because of the history, proximity to downtown, local parks and schools in the area.

Housing Finance Market Reform Update

On February 11, the Obama Administration released its plan for reforming America's Housing Finance Market. The proposal, which offers three options for handling the secondary mortgage market participants Fannie Mae and Freddie Mac (full privatization, a guarantee mechanism during crisis, and catastrophic re-insurance), also

proposes criteria that would foster increased down payments to 10%, lowering GSE and FHA loan limits, and raise the GSE's guarantee fees (g-fees) and FHA premiums significantly, in an effort to level the playing field and bring back the private sector. The National Association of Realtors recognizes that the existing system failed and that changes are needed to protect taxpayers from an open-ended bailout; however, they also believe that there must be a certain level of government participation to provide middle-class families access to afforable mortgages at all times and in all markets. To read the administration's report, please visit Realtor Government Affairs

IMPORTANT TAX DATES

Sun, 06 Sep 2009 00:00:00 -0700

July 1st - Beginning of fiscal year

August 31st - Unsecured deadline. A 10% penalty is added and a $35.00 collection fee

October - Treasure-Tax Collector mails out original secured property tax bill

November 1st - 1st installment of secured taxes is due and payable

December 10th- 1st Installment of secured taxes payment deadline. A 10% penalty is added as of 5:00pm*

January 1st - Tax lien date (affects the upcoming fiscal year)

January - Treasurer-Tax Collector mails delinquent notices for any unpaid 1st installment current secured taxes

February 1st - 2nd installment of secured taxes due and payble

April 10th - 2nd installment of secured taxes payment deadline. A 10% penalty plus a $10.00 cost is added as of 5:00pm*

May- Treasurer-Tax Collector mails delinquent notices for any unpaid 2nd installment current secured taxes

June 30th- End of fiscal year

July 1st - Delinquent accounts are transferred to delinquent tax roll (tax-defaulted property) and additional penalties added at 1.5% per month on any unpaid tax amounts, plus $15.00 redemption fee

* If a delinquent date falls on a weekend or a holiday, the delinquent date is the next business day. For more information log on to: www.co.sanmateo.ca.us

GOOD NEWS FOR HOUSING

Sat, 14 Feb 2009 00:00:00 -0800

Happy Valentines Day

Late last evening, the U.S. Senate passed the American Recovery and Reinvestment Act of 2009 by a 60 to 38 vote. Earlier today, the stimulus package passed the U.S. House of Representatives in a 246 to 183 vote. Today's votes followed several days of negotiations by the House, Senate, and White House, with the final tab for the stimulus bill coming in at $787.2 billion.

On the housing front, the good news is that the legislation resets the conforming loan limit cap at $729,750, up from $625,500. Numerous counties in California experienced a marked decrease in their conforming loan and FHA limits on Jan. 1, and the stimulus bill reinstates 2008 loan limits through Dec. 31, 2009. Santa Clara County is one of the counties that had their conforming loan limit reduced.

The bill also increases the first-time home buyer credit from $7,500 to $8,000, and removes the requirement that the credit be paid back if the buyer stays in the home for at least three years. It also extends the expiration date for the credit from July 1 to Dec. 1, 2009. Homebuyers must have purchased a home after Jan. 1, 2009, and before Dec. 1, 2009, to be eligible for the $8,000 credit.

We are seeing some exciting offer and sales activity that we have not seen for several months. Several lenders are also indicating that they are seeing signs of slight loosening on the lending guidelines which have been so restrictive for the past several months - hopeful positive signs.

Decline in Value

Wed, 11 Feb 2009 00:00:00 -0800

Recently Tracie Southerland of Opes Advisors has heard from some of her clients that they have received solicitations from private companies that are luring people to spend money to reduce their property taxes (a "Decline in Value" request). These companies cannot guarantee a reduction in property taxes to anyone. Additionally, it is not necessary to pay for these services as a Decline in Value request is FREE to any homeowner.

Below is a list of counties and links to their associated information on Decline in Value requests:

§ San Mateo
§ Santa Clara -Appeal applications must be filed between July 2 and September 15 with the Clerk of the Appeals Board
§ Santa Cruz
§ Marin
§ Contra Costa
§ San Francisco

Please call me if you feel your property has declined in value and I will see if I can provide you with data to support the decline.

GREEN TIP

Tue, 10 Feb 2009 00:00:00 -0800

If you wish to opt out of phone book delivery lists. Go to www.paperlesspetition.org and sign the Yellow Pages Paperless Petitioni and Official Opt-Out Registry

If everyone in the U.S. said "no thanks" to ATM receipts, it would save a roll of paper so long it could circle the equator fifteen times.

Turn off your power strips when they're not in use. The average American household continuously leaks about fifty watts of electricity. Eliminating that trickle would save $1 billion a year in wasted electricity.

Buy rechargeable batteries, you'll save money over the long term. A single rechargeable battery can replace up to one thousand single-use alkaline batteries over its lifetime. Americans throw out approximatley 179,000 tons of batteries per year.

Kill-a-Watt Electricity Usage Monitor (retails for approximately $30 from CableOrganizer.com or other online vendors). The unit's large LCD display counts consumption by the kilowatt-hour, the same as your local utility. You'll know if it's time for a new refrigerator or if that old air conditioner is cost-efficient. With minimal effort, you can probably reduce your home's energy consumption by 30 percent and reap significant cost savings.

Wash your clothes in cold water. By using cold water instead of warm, the average household can avoid emitting 1,281 pounds of carbon dioxide annually and save on energy bills.

Send an ecard-Paper cards often end up in landfills, so why not go with a loving ecard for your dad? This is definitely a more sustainable way to communicate your sentiments.

Use the library, or buy secondhand books. Consider sharing the ones you have with friends or donating them rather than throwing them away. About three billion new books are sold per year, requiring four hundred thousand trees to be chopped down.