We saw over 1100 sales during second quarter this year.  We are seeing multiple offers more today and prices have crept up once again.  The Median Price throughout the County was a whopping $902,025!  Don’t let these numbers confuse you because we are still see a huge number of distressed properties coming on the market.  The number of short sales being listed, or houses for sale that likely could sell short of what is owed if they don’t get their price, has increased significantly.  Some of the statistics being bantered about for San Mateo County is that there are, or will be, over 4000 homes under water.  We aren’t a big County and that number is amazing to me.  Let me add one word of caution, we are not seeing a lot of REO’s, or Bank Owned properties on the market today in San Mateo County.  We saw them in pockets, but not spread all over the County so don’t expect to see bargains because they won’t be there.  Even Short Sales are generally priced pretty competitively today.

Look again at the chart above and look specifically at the first group of columns on the left that give the number of homes sold Q2-10 versus Q2-09 and the percentage of change to get a better feel of the changes.  Both Burlingame and San Mateo saw a 25% increase in sales.  Hillsborough saw a 16% increase and Foster City a 15% increase.

Did you miss good buys by waiting?  Yes, you missed the bottom of the market, but there are still some fantastic buys out there and we have loans at historic lows that keep the costs of home ownership lower than they have been since the 1950’s.  If  you want to buy now, there is a great selection of houses to look at and we, are able to give you a lot of data to help you compare one property to another.  This is where a good Realtor comes in to the process, folks.  You can do a lot of research online yourself, but you still need a good Realtor to guide you through the data.  That’s where Alex and Lenore come in to the equation.  We’re here to help you find your next home.

©2010 San Mateo Real Estate News. All Rights Reserved.

This may be the last year Foster City sets of fireworks on the Peninsula.  The annual tradition doesn’t come free for the city and due to budget cuts, the dirty little phrase we’re getting used to hearing every day, this too may end.  It’s really unfortunate since the cost of the fireworks are being underwritten by a local business.  Bravo to them!  But there are some major corporations sitting in Foster City that could easily pick up the expenses of the Foster City Police Department and Public Works, estimated at $80,000 in future years.  Wouldn’t this be a great public service?  Let them have banners around town, and really promote it. With fireworks shows  being dropped from other city budgets – San Mateo used to have one at Bay Meadows Race Track and Redwood City stopped theirs, the only other Peninsula fireworks is in Mountain View and one has to pay to see them up close.

The 4th of July is, and always has been, a big deal in Foster City.  It starts with Island United Church’s Pancake Breakfast from 8:30-11:30 AM and moves to the Family Parade  at 11 AM and the Stars and Stripes Dog Show at 2 PM in the Amphitheater.  The music begins in the Amphitheater at 11:45 AM and continues until the fireworks start at 9:25 PM.  You can have a fun-filled day from breakfast through dinner.  The Foster City Lions Club offers great BBQ for lunch and an early dinner.

Come early, spread out your blankets and chairs, and find the best spot for the day.  Because of the lawn, only blankets may be used – no tarps allowed.  Right now it looks like we’ll have great weather on the 4th, but that too can change so be prepared just in case the fog comes in and makes it a cold night.

If you want to see the fireworks continue in Foster City in 2011 and you work for a major employer calling Foster City home, why don’t you suggest to them that it would be a fabulous public service to sponsor them next year?  It might take a grass roots effort to see them continue, so let’s start the ball rolling now.  There really is no other place in the Bay Area that allows one to see fireworks on the water from small boats.  It’s great fun being out there with others moving around to find the best views and then making sure you aren’t in a collision!  I sure hate seeing this go away.

If you live in Foster City, please urge the City Counsel and the major corporations to do something and save Foster City’s 4th of July.

©2010 San Mateo Real Estate News. All Rights Reserved.

©2010 San Mateo Real Estate News. All Rights Reserved.

Single family homes in San Mateo have held their own in pricing this past week.  The Median price for everything sold was $699,000.  There were 211 houses listed in the MLS showing an average of 124 days for these homes on the market.  The most expensive house listed was for $2,795,000 and the least expensive was $349,900.  At that least expensive price you can buy a house instead of a condo!  Of course, this property needs work but never the less it’s a house on its own lot.  Last week the median house had 3 bedrooms and 2 baths, was about 61 years old and is about 1500 square feet in size.  San Mateo lots generally run between 4500 and 6500 square feet in size.

Okay, I hear you say to me, what does that mean for me?  I’m a first time buyer and what does this mean and why should I care?  First time buyers can get a choice of either an FHA loan – meaning you can put down as little as 3 1/2% down and finance the rest – or – get traditional financing with 20% down.  We are beginning to hear about other financing programs coming back, so if you are serious about buying a house talk to your lender about the options you might have.

The market is up from the first of the year and up from the bottom of 2009.  Traditionally real estate markets in San Mateo County are pretty sluggish around the new year since people are thinking about  other things – the holidays and spending money in other places.  2010 was no exception if you look at the lovely Altos Research chart above this.  The market started to take off in February and really got hot in March.  All of you first time buyers trying to hitch your wagon to the federal program giving up to $8000 back in tax credits were out there bidding against each other.  We saw lots and lots of multiple offers.  The Federal program is gone but there is a nice California program that will be around for a couple of months.  Once the money is gone, the program is gone.  It’s a $10,000 tax credit spread over two years.  I’ll write a bit more about this soon.

The Market Action Index is a nifty measurement exclusive to Altos Research, the company we subscribe to for our research on the local markets.  It tells us how the market is doing for San Mateo.  They say San Mateo is still a strong buyer’s market.  They give it a Market Index of 19.4.  The line going across the chart sits at 30 where we see the balance tip to a Seller’s Market.  It’s moving up towards a more balanced market but with over 200 properties to select in San Mateo buyers have lots to choose from.

We know the San Mateo market.  We sell this market and look at the homes all of the time.  If you are considering purchasing a home here, let us help you make an educated choice.  We can be reached by email or phone.  Our contact information is on the right side of this post.  If we’re online, you can reach us live by clicking on the Contact Us button.  Alex and Lenore are experienced full time Realtors here to help you.

©2010 San Mateo Real Estate News. All Rights Reserved.

Foster City is celebrating on Sunday with a day of great activities.  If you are looking for something to do with the family head to Foster City and learn something new to help the environment and perhaps for your own family as well.  It takes one person at a time to make a difference in our world.  Why don’t you start on Sunday?

©2010 San Mateo Real Estate News. All Rights Reserved.

It’s that time of year again and if you have a young one and want to find a local Easter Egg Hunt, you’re in luck.  I think I’ve found almost everyone of them in San Mateo County and if you’re willing to head south I have a few for you in Santa Clara County, too. Most of them are Easter weekend, but a few are this coming weekend if you are busy around Easter.

Start the Fun this Saturday, March 27th

In South San Francisco head over to Orange Memorial Park, on Orange Avenue by 10 AM where there will be two egg hunts taking place.  One just for Pre-Schoolers 3-5 years old and the second one for Elementary children  6-8 years old.  Bring your own basket.  While you’re there tell the South San Francisco Women’s Club thank you for sponsoring the event.  Questions?  Call 650-829-3800.

San Bruno is hosting their 31th Annual Easter Egg and Pancake Breakfast in San Bruno City Park.  It starts at 9 AM and runs until 11 AM.  The hunts begin at 10 AM.  Call 650-616-7180 for more information.

If you don’t mind driving down to Los Gatos, there’s a hunt on the front lawn of Los Gatos High School between 10 AM and 1 PM.  There will be a carnival taking place as well and tickets will be for sale during the egg hunts.  The hunts are free and held by age groups.  10:15 AM – under 2; 10:45 AM – 2-3 years; 11:30 AM – 4-5 years; Noon – 6-7 years; 12:30 PM – 8-10 years.

Now Hop to April 3rd for more….

Burlingame’s Annual Lion’s Club Easter Egg Hunt and Pancake Breakfast starts early. Breakfast is served between 7:30 AM to 11 AM and costs $6 for adults and $3 for children.  The egg hunt begins at 9 AM, and again at 11 AM.  Be sure to have your baskets with you and you can call 650-348-0799 for more details.

Belmont is hosting their hunt at Twin Pines Meadow off of Ralston.  Be there at 9 AM SHARP.  It’s a free event for 3-10 year olds and all will get eggs, candy and other surprises.  Bring your own basket and thank the Belmont Park & Recreation Department to hosting this event.

If you prefer warmer weather for your egg hunting, then Los Altos is where you’ll want to go.  They’re hunt begins at 10AM at State and  2nd.  This is for 1-10 year olds and bring your own basket.  It’s a free event in downtown Los Altos.

Menlo Park’s egg hunt is held at Burgess Park between 10 AM and Noon.  This is a joint venture with the Menlo Park Firefighters Association and the Easter Bunny arrives on an antique fire truck.  This is for children 8 and younger.  Bring your own basket for the eggs.

Hiller Aviation Museum in San Carlos is bringing in the Bunny on a Helicopter and your children can greet the Bunny at 10:30 AM.  The Bunny will be giving out eggs to all children there and face painting will be offered by the Magic Princesses.

The 33rd Annual Eggstravaganza is going to take place in San Mateo. It’s a full day of fun for the family.  Pancake breakfast begins at 9 AM until 11.  $7 for adults and $4 for children sponsored by the San Mateo Sunrise Rotary.  Art and games run from 9 AM to 1 PM.  The hunts start at 9:30 and continue to 1 PM.  Along with all of this you’ll get entertainment and can watch or participate in a Community Parade at 10:30.  It all takes place at Central Park, El Camino and 5th Avenue.  (Even if you don’t have children, it’s great fun watching them running around the fields)

Pacifica has a hunt on Saturday at 10am at Frontierland.

And in Redwood City got over to the Malibu Grand Prix. Registration is from 10 – 11 and hunt starts at 11:15.

San Francisco has a hunt at India Basin starting at 11 AM. It’s the India Basin Annual Spring Hunt.  Bring your own basket.

Egg Hunts on Easter Sunday

Foster City’s Lions Club hosts the annual Easter Egg hunt held at Leo Ryan Park on the corner of East Hillsdale Blvd and Shell Blvd.  It begins at 2 PM and is free.  Just remember to bring the empty basket.  The Easter Bunny will be there ready for your camera. In fact, be sure you have your camera with you any time you take your children to one of these events. It is so cute to watch the children running around the grass and something you don’t ever want to miss!

San Francisco’s 19th Annual Spring Celebration and Easter Parade on Union Street between Gough and Fillmore is a great family activity.  Running between 10 AM and  5PM there are be many things for children of all ages.

If you know of an Easter Egg Hunt that I’ve missed in San Mateo County or for that matter, in Santa Clara County,  please let me know so I can add it here.

©2010 San Mateo Real Estate News. All Rights Reserved.

Somebody’s Gonna Take it In the Shorts…and It’s NOT the Bank!

Short Sale! Short Sale!  Read all about it!

Next to “Location, location, location”, “Short Sale” is the single most often used phrase in real estate today.  (Or, at least, it seems so to me.)  But, do brokers and agents really know how to advise a Seller about all the risks and liabilities a Short Sale can expose them to?  Should the Agent (either know or advise)?

The Short End of the Stick – What is a “Short Sale”?

A Short Sale is a transaction where one or more Banks receive less than the amount owed on a loan in exchange for a release of the Mortgage (or Deed of Trust) which secured the repayment obligation.

Notice what a “Short Sale” isn’t:  A Short Sale is NOT a release of the underlying obligation. It is only a release of the Mortgage or Deed of Trust which secured the obligation.

So, while most Sellers think that a Short Sale will leave the Bank holding the bag on the amount of the unpaid mortgage debt, that is not the case.  The “obligation” remains. Only the “security” is released.

Many Sellers believe that the Bank has to eat the difference between the payoff amount in escrow and the loan balance, without the ability to go after the Seller/borrower for that difference.  Again, not so.  At least, not always.

The Long and Short of It

In California, we have several consumer protection laws, several of which apply to this very situation.

One of these is called the “One Action Rule”. This means that the Bank can come after the borrower on only one of any number of possible ways.  The two most popular are: 1) a Judicial Foreclosure, and 2) a Non-Judicial Foreclosure.  In the first, the Bank can (and often does) get a “Deficiency Judgement”.  This is a judgement for more than the property is worth.  The Bank discovers just how big that judgement will be after it sells the property at a Sheriff’s auction.  Whatever amount is left over to be paid to the Bank is the amount of the Deficiency.

The bad news for a Bank is that to get this deficiency judgement, the Bank has to go through the entire court process (which can take 18 months, and cost upwards of $100,000). AND the borrower has the right to repay the judgment amount for one year afer the court’s ruling and get the property back!  (That’s called the redemption right, and prevents the Bank from re-selling that property for the entire year.)

The second option is a non-judicial foreclosure.  That’s when the Trustee sells the property to the highest bidder at a public auction.  The Trustee is the “3rd party” named in a Deed of Trust (or a person authorized pursuant to a power of sale in a Mortgage) who gives all the required notices of default and sale, and holds the auction.

If there is a deficiency in the amount owed as compared to the amount paid at a foreclosure sale, then the Bank loses the right to go after the borrower for that deficiency. How come?  Well, a non-judicial foreclosure is quick (4-6 months, generally) and cheap.  A lot cheaper than a court proceeding.  Because the Bank can select this faster, cheaper remedy, it loses the benefits of a deficiency.

Unless (there’s always an unless, hun?) it’s a Bank in second position.

Short Man Complex

If the first position Bank forecloses, what about the second holder? It didn’t even get a chance to do a non-judicial foreclosure! (Well, it could have, but why – especially if the property value is so underwater that even the first lender won’t recover all its money?) If the second lienholder chooses to, it can file a lawsuit for breach of contract (after all, the loan was a contract to repay…) against the borrower for the amount the Bank lost on that second loan.  And, it can wait as long as four years to do so. Ouch!!

We’re not done yet.  Remember, California is a consumer protection state, it has rules that benefit the borrower.  If the loans being foreclosed upon were “purchase money” loans (i.e. the loans used to buy the property in the first place), and if the borrower lived in the property at the time of purchase, and it was a 1-4 unit building, the California is at the rescue.

In addition to the “one action rule”, California has a  ”security only rule” which requires the Banks to go after the property – and ONLY the property – when it is foreclosed on a purchase money, owner occupied, 1-4 unit property.

And that second position lender?  Well, they are just out of luck.  There is no “sold out junior creditor” status for them on a residential, owner occupied, purchase money loan.

Life’s Too Short

Adding insult to injury, after having had to sell the property in a Short Sale, many borrower/sellers are given an end of the year surprise: a 1099 from the Bank for the debt “forgiven” or “canceled.”  This “COD” (cancellation of debt) is treated as ordinary income by the IRS. so, while a Seller might have gotten out of a deficiency judgment because it didn’t go through foreclosure, it might not get out of a huge tax bill!

And don’t forget, anti-deficiency rules don’t apply in certain circumstances, like waste or intentional fraud. You need to give the financial documents you gave the Bank when you applied for your loan.  What if they don’t match?

The seriousness of a Short Sale can’t be minimized.  If you think you need to sell “short” you must have a Realtor who is trained in short sales.  They need to have a SFR or CDPE certification in order to show you that they are experienced in these sales.  You also must be prepared to consult a real estate attorney who understands short sales as well as an accountant to make sure you are doing everything correctly.  You shouldn’t enter into a short sale without a team of experts helping you.  As you just read, it could cost you dearly years after you thought you had cleared that mine field.

The Wilkas Group is here to help you.  We are certified Short Sales Realtors.

You can reach Christopher Hanson,  with the Hanson Law Firm, at 510-521-9181. www.HansonLawFirm.com

©2010 San Mateo Real Estate News. All Rights Reserved.

Let’s look at the activity in this area for the past 6 months.  There are 6 properties for sale today, 6 that are pending close, and there were 7 sold between mid-August 2009 and today.  The market has heated up and prices have come up, too.  Last year we saw a few short sales and a few foreclosures which is why the prices were low, but not so today.

Another way to look at things is through these charts of the Median For Sale versus Median Sold between January 2009 and January 2010.  Typical for year end, we saw nothing sold but the market has heated up today and prices have held pretty well, too.

The Wilkas Group has helped many people buy and sell in these two condo developments.  If you’re interested in buying or need to sell here, give us a call or click the “Contact Us” button and we’ll be happy to answer any of your questions.  These condos offer the largest bang for the buck in the San Mateo-Foster City area.  We know this area very well and can give you the advise you need today.

©2010 San Mateo Real Estate News. All Rights Reserved.

If you are in the market to buy a house you are keenly aware that we’re not seeing a lot of bank owned properties any longer but mostly short sales.  We anticipate this will be the case for all of 2010.  According the Prudential California Realty’s research division, where this chart comes from, San Mateo County saw rising home prices because the bank owned properties from north county and south county were depleted in 2008.

The County saw 1038 single family houses change hands during the 4th Quarter of last year, which was about 4% less then in Q3, but up 21% for 2008.  That’s good news for  you and for us.  The Median sales price for the entire county was $851,543 in Q4, and was 12% above 2008’s Q4 median price of $758,067.

We saw a robust market everywhere but Daly City and East Palo Alto.  As we begin to see more distressed luxury homes come on the market this year, we should see increases in sales there as well.  These markets are Portola Valley, Hillsborough, Atherton, Woodside and Burlingame.

We think home prices are stabilizing.  We are beginning to see multiple offers on properties due to low inventory, not low prices.  Short Sales will be the norm, and these take time.  If you are entering the real estate market for the first time, be patient, and understand the you will be competing with investors with cash.  You will need Realtor’s who understand how to operate in this kind of environment.  The Wilkas Group has the experience, the knowledge, and patience to help you find your new home.  Pop us an email using the button “contact us” on the left side of this page.  We’re here to serve.

©2010 San Mateo Real Estate News. All Rights Reserved.

©2010 San Mateo Real Estate News. All Rights Reserved.