Coastal Real Estate and Lifestyles

This week’s San Mateo County coastal market activity is picking up; however most offers being presented are not creating jubilant sellers.  Sellers want to sell their homes in this peak selling season and buyers are hoping to get a “bargain” while faced with the uncertainty and confusion about which way the market will shift in the next several months, notes CB-Half Moon Bay’s Office Broker/Manager Robert Ross.  Even when buyers find the right home or property, concern with overpaying is on their minds.  Similarly, sellers are concerned that they’ve set or reduced their list price too low.  Inventory levels show Half Moon Bay in a Buyer’s Market in Feb 2008 with 7 months of inventory.  January 2008 was at 8 months.  As of now…we’re trending toward a balanced market.

Buyers are working to mitigate their short and long term risks by choosing properties carefully and trying to understand the current financial environment, while at the same time remembering why they are home shopping in the first place - realization of long term benefits and lifestyle goals.

Don’t ask me why these things come into my head.  Lately, when I think of the current big-picture real estate environment - one day it’s doom and gloom and the next it’s an incredible opportunity - I can’t help comparing it to Mavericks, Half Moon Bay’s celebrity waves.

Some highlights are:

1. They are both formidable.  Intimidating and overwhelming or tremendous and awesome?

2. They both demand respect.

3. Research before you jump into either one.

4. To get what you want you must move quickly.  Mavericks competitors have 24 hours notice.  Home buyers need to be ready emotionally and financially.  Many people want the same thing; if you’re not ready, it will go to someone who is.

5. More and more people are watching both of these unfolding phenomena.

6. If you’re new at EITHER one, don’t go in alone.

There’s more wave action going on in real estate.  It’s called the online real estate wave…the real estate bloggers* are the ones NOW paddling into the biggest industry waves and helping their clients grab hold and lead them into the future of real estate information, transparency, and opportunity.  What a ride!

*Blog networks I’m already involved in:

Homescopes

WCRblogs

As many of you already know, the “Coastside” section of my site is broken down into lots of local topics of interest, including neighborhoods.  I just finished, well finished enough to get online for you, the Moss Beach neighborhoods page!  Expect updates and embellishments as I move forward with my site.

Back to Moss Beach…I thought a fun way to introduce this page would be to create an “family outing day” in Moss Beach, whether you live here or are passing through.

First you have to pack the beach bag - water, sunscreen, sunglasses, hat, sweater or jacket if needed for layering, day pack, snacks, camera, and towels & talc to wipe off sandy feet.  If you bring the dog, don’t forget the extra towels and water.  Water sandals will be handy.

A visit to the Fitzgerald Marine Reserve is a must for a day trip to Moss Beach.  Once at Fitzgerald Reserve parking lot, take a short hike down to the tidepools.  At low tide, which you want to check, you will be treated to all kinds of beautiful sea life.  The Friends of Fitzgerald Marine Reserve website will give you all the specifics you need to know to plan the best visit for your family or group.  After you’ve explored for a bit, you can set out your picnic lunch on the beach.  Then head over to the bluffs and walk through the cypress trees.  All ages will enjoy this, the younger ones will love to play hide ‘n seek and there’s plenty of room to run and explore. 

Head over to Moss Beach Park across the highway at Virginia St. on the east side if you have kids in tow.  If you know the history behind this terrific community asset, you will be even more impressed.  It sure didn’t look like this when I brought my kids there back in the early 90’s.  If you didn’t pack lunch, you could head over to local favorite El Gran Amigo to grab some of the best burritos around.

Of course, if Dad takes charge of the activities and wants to give mom a real treat, she can just walk over to Studio Eight-18 for a rejuvenating massage (but you have to call Scott first to get booked - although new to the Coastside, his calendar is beginning to fill).  Then on to a fun dinner at either HMB Brewing Co., Barbara’s Fish Trap (here’s some Yelp reviews), or Sam’s Chowder House in El Granada.  The dog will be welcome at these places if you eat on the patios.

Have a great day in Moss Beach!

p.s.  If real estate is on your mind, there are currently 12 homes for sale in Moss Beach ranging in list price from $569,900 to $2,500,000.

Moss Beach welcomes you.  Don’t forget to visit the Moss Beach page.

3/22/08 update:  I just found this site “Half Moon Bay Memories & El Granada Observer”.  History buffs will enjoy knowing more about Moss Beach’s rich past from the reminiscing from a local lifetime resident.

Half Moon Bay 1998-2007 Single Family Home SALES graph:

Graph price range $450,000 to $1,150,000.

:

Half Moon Bay 2006-2007 Single Family Home SALES graph: 

Graph price range:  $920,000 to $1,120,000

2007 Median Sales Price - $957,000

3.5% Increase from 2006

2007 Average Sales Price - $1,127,763

6.3% Increase from 2006 

2006 - 121 closed sales

2007 - 97 closed sales

What does this mean moving forward?  As with everything on my site, this is my humble opinion unless quoted by someone else.  I do think you want interpretation of this stuff…

If you have owned your home four years or more, you will have some good equity built up - IF it hasn’t been used for non ROI-type expenses.  Some people have taken that equity and reinvested it to put it to work toward greater net worth.  2007 marked the lowest number of sales in HMB since 1998 (the highest year was 1999 with 196; 2006 had 121 and 2007 had 97 leaving a decrease in number of transactions by 25% from the prior year.  I believe the number of sales will continue to decrease and the market will remain sluggish overall as long liquidity in the lending markets continues to be constrained and the national/regional media continue to make headlines of these issues.  So, if you don’t HAVE to sell, I would wait.  If you do have to sell, you need a consultation with your real estate professional sooner rather than later.

That being said, two points here:  1) there are strong cash buyers out there and should be taken seriously; and 2) there are listed homes that are selling in record time.  These are the homes with location, presence and price.  If you’re in the market, you and your Buyer’s Agent need to be watching.

Here’s a few recent new Half Moon Bay listings that went into contract quickly recently:

400 Medio - 23 days

225 Miramontes - 20 days

730 LeMans - 2 days

(there are others in El Granada, Moss Beach and Montara)

Half Moon Bay Condos will be in a separate post.

Other cities will be posted in separately also.

More local statistics on my site’s Local Stats page.  These stats are best used as leading indicators.

Here’s an up-to-the-minute, as in this just happened, group blog networking story.  Another Coldwell Banker agent has been blogging on her own…working individually with Domus Consulting to get up and running with this whole blogging concept - along with the rest of us!

I get a note from Kevin over at Domus, aka 3 Oceans Real Estate, based out of Menlo Park, CA that this agent may be calling to discuss Homescopes.  Chris Molner and I ”met” on the phone today and I think she’s terrific!  I hope she joins our group as she will be a wonderful referral source for clients looking for a Burlingame CA area expert.  Meet her yourself at Front Door Blog.  Chris and I shared our stories and I learned that she is interested in developing her business to serve the senior market.

Oh, by the way, it turned out that we were both at the the February Women’s Council of Realtors(WCR) Breakfast and didn’t even know it.  Turns out both of us are on WCRBlogs, and we’re planning on officially meeting at the next WCR meeting in San Mateo later this month.

If you’ve gone to the San Mateo County Building & Planning website you’ve probably seen this announcement:

Remodels and new construction in our unincorporated communities of El Granada, Moss Beach and Montara will now need to follow eco-friendly guidelines based on the Build It Green point system.  This measure was passed by the San Mateo County Board of Supervisors with little fanfare.  An article written on 2/13/08 in the San Mateo County Times offers an opinion of its importance:

 “It is the most aggressive and far-ranging mandatory green building program in San Mateo County, also rivaling those adopted by San Diego, San Francisco and Marin counties. It was developed over the past seven months by a committee of builders, real estate agents and environmentalists, and passed by the Planning Commission in January.”

This new requirement applies to all new residential projects AND residential remodels of 50 percent or greater AND commercial and industrial buildings of 3,000 square feet or more.  Per Section 1402 of the Ordinance, “50% remodel means any additions, alterations or repairs within any 12-month period that exceeds 50% of the value of the existing building or structure.”  Visit the San Mateo County Building & Planning site for a copy of the entire Green Building Ordinance passed on February 26, 2008.  To reach the County Building & Planning Department by phone, call 650-363-4161.  If you are doing a minor remodel, this wouldn’t apply, but it might be worth a call to confirm.

I just found the GreenHomeGuide which is full of great ideas.  This site can help you find professionals and consultants through their Green Home Directory.  They also invite you to become a part of their directory so others can locate an expert in this area.

Locals I found on this directory were Moroso Construction (Pacifica), Tranquil Spaces Design Group (Pacifica).  There were many, however, throughout the “Bay Area” link.  I know we’ve got some great local green resources.  I’ll create a resource list for readers and clients as I get more info from Coastside builders, designers and landscapers.  I’ve noticed some in the local papers and magazines, but might be worth gathering together with new building guidelines in place.

Are you watching for opportunities?  In my opinion, those willing to put in some sweat equity on less than move-in-ready homes could reap rewards if planning to keep the property for at least 5 years.  The new loan options that will ease borrowing for a home purchase in our area may allow some to get into the market that previously thought they could not due to perhaps high prices, less than perfect credit, demand, etc.  This update of the Economic Stimulus Package of 2008, in a nutshell is as follows:

1. The limit was increased for the amount of FHA-backed loans.  The Federal Home Administration offers an insurance product.  FHA loans took a back seat to the subprime loan products of the early 2000’s for borrowers with minimal down payments, partly because the limit was so low and partly because there was an extra fee for the insurance.   FHA loans, up until now, had a low maximum allowable insured limits, severely limiting its usefulness in high priced markets such as ours.  However, this increase to $729,500 is a substantial jump and is available - currently - until 12/31/08.  This is meant to ease the worries of investors by attempting to reduce the risk of loans with government security.  Not all mortgage brokers can offer FHA loans.  Ask your preferred Mortgage Broker if they are approved to do FHA loans.  Our in-house lender, Princeton Capital representative Susan O’Driscoll, can offer them and gave me a list of several key points for those who may consider an FHA backed loan.  A few highlights:

• OK for any buyer, not just first time buyers.

• Princeton can underwrite, draw the documents, and fund the loan.

• FHA does not count 401K loans in debt ratios.

• NOT FICO (credit score) driven.

• FHA loans are assumable to qualified buyers.

• Owner occupied only and moves into the home within 60 days.

• 100% gift allowed for down-payment and closing costs.

2. Fannie Mae and Freddie Mac loans (known as “conforming loans” with a limit of $417K) now have a temporary increased limit of $729,000 in San Mateo County, including other California counties.  Other County limits may be different.  Up until now, borrowers were looking at getting a First and a Second (Seconds meaning Jumbo loans) to get into homes here unless they were move-up buyers with a lot of equity for a large down payment.  This article from Forbes sums it up and gives figures on which markets will be “…the biggest real estate winners”…

“It also reduces consumer interest rates. Loans above Fannie and Freddie’s limit are known as “jumbo” loans, and because they aren’t backed by the government, these riskier loans carry higher interest rates. Under the limit increase in the stimulus package, loans that are recategorized from jumbos to conforming loans (54% in San Jose, 44% in San Francisco, 17% in New York) will carry lower interest rates. For potential buyers, this makes home buying more affordable…”

As an aside, I have to say that I couldn’t help but think about the Forbes article Title using the word “winners” in it.  Where there are winners, there are also losers.  We know who the losers are and this reality saddens me.  Those who left insufficient funds in their property-bank, or those who took a risk with one of the negative amortization or other ill-fitting loans - didn’t project the loan’s affordability as it adjusted and now find that they can’t afford those monthly payments -are feeling loss right now.

For more detail and to discuss our situation and options, call your preferred mortgage consultant or Susan O’Driscoll (see her link in my blogroll under Mortgage) to see if you are able to move forward with your home purchase plans.  This program, in combination with a good inventory (remember, inventory is higher than last year as shown in an earlier post) for buyers that we haven’t seen in a long time will create a perfect storm for some who choose to make the call to their preferred lending, real estate, and financial consultants.

It’s such a nice perk to have friends in other areas of the Bay who keep us in the loop about fun events that may not get a lot of mainstream publicity.  So, for you, my blog readers, here’s something for wine and architecture enthusiasts:

Pam Buda of Sonoma County informs us that this is the 30th Anniversary of the Russian River Wine Barrel Tasting Tour.  According to Pam’s post, WineCountryandHorses, this popular event has had to stretch to two weekends.  This coming weekend of March 8-9 is the second and final weekend of this year’s event.

If you’re a fan of California modern and mid-century modern architecture, colleague Sam Benson in Contra Costa County co-hosts the annual East Bay Eichler Faire in Walnut Creek this Saturday only, March 8th from 10 - 2.  Sam seems pretty knowledgeable about these types of homes which you will see if you visit his blog at RealEstate680, and has found many tradespeople who specialize in this home style and construction.  If you know someone who wants to know more about this type of architecture, enjoy a day in the East Bay for this free event.

Of course, if you’re going to stay or visit the Half Moon Bay Coastside, this is Opening Weekend for Half Moon Bay High School’s Spring Musical, Grease, as reported here by Coastsider. First show is this Friday, March 7th at 8 p.m.  Visit the above link to the Coastsider report for some great pictures and the full list of dates, times and locations to purchase tickets.

If none of these get you out of the house, you can also stop by my Open House at 620 Ruisseau Francais in Frenchman’s Creek this Sunday, March 8th from 1:30-4:30!  Thanks to CB colleagues the Bell/Fisher/Fowler team for inviting me to hold open this great home. (I took photo on 2/9/08.) p.s.  currently the lowest price 5br.3ba. on the market.  Contact me if you would like a showing or further information about it.

3/6/08 update:  I will also be holding Valerie Trenter’s co-listing at 286 3rd St., Montara, this Saturday 3/8/08 from 2-4.  This is the FIRST open house.  I toured this Tuesday…a darling home on huge lot, ocean views, single story.  Picture to come.  It will also be open Sunday 1:30-4:30 hosted by Listing Agent, Valerie Trenter.

Half Moon Bay overall inventory trend (for residential single family homes):

What this graph shows is that inventory for single family homes in Half Moon Bay is higher than a year ago, the inventory “peak” within the last year was last November 2007.  Inventory frequently drops toward the end of the year, but the latter part of 2007 was adjusting to the credit crisis and a correcting market - which we’re still doing…  Price adjustments are more common than a few years ago as sellers and agents work to price their homes “at market”.

FOR SALE in Arleta Park as of today, Sunday, March 2, 2008:

• 7 single family homes
• 1 townhouse
• 22 residential lots
• 1 commercial industrial (2 level acres with warehouse, etc.)

From my 2008 State of the Coastside Report: **

**Half Moon Bay 2007 Median Price Home Sale - $957,000

Arleta Park neighborhood 2007 Median Price Home Sale - $832,500

**Half Moon Bay 2007 Average Price Home Sale - $1,127,763

Arleta Park neighborhood 2007 Average Price Home Sale - $993,392

Contact me to receive a copy of the entire 8 page report covering Half Moon Bay, El Granada, Moss Beach and Montara by community.

Coastside real estate is very “location specific”.  Trends can be information but they are not the whole picture if you are ACTIVELY in the market.  In our office alone, 2 homes sold within hours of being listed last week.  Part of that may be heading into the spring buying time and/or the seller had the golden triangle (my phrase) of Location, Price, and Presentation.