December Marin Real Estate News

Bay Area Real Estate Sales.com Newsletter

December 2006

IN THIS ISSUE:

Marin Home Sales Statistics

Map Based Home Search Announced On Bay Area Real Estate Sales.Com

Bay Area Home Prices Decline, Sales At Five-Year Low

What Did Your Neighbors’ House Sell For?

Fed Holds Federal Funds Rate At 5.25 Percent

California Voters Concerned About State's Future

Best Mortgages In Today's Market

Most U.S. Housing Markets To Experience Sluggish Expansion In 2007

What Do Liz’s Clients Say?

Fast Facts

MARIN HOME SALES STATISTICS

These statistics show how many homes are available for sale in Marin, and of those how many are currently in contract (either pending or contingent. For the 3rd month in a row, the Marin overall real estate market is in a “Buyers Market.”

Although there are considerably less homes on the market this month as compared to last month, there are still more than the previous December (898 compared to 622 in December 2005), the percentage of homes in contract went up slightly (very slightly). My feeling is that many of the homes that did not sell have been pulled from the market, anticipating the slower months during the holiday season, or to possibly restart the Days on Market clock for that house trying to regenerate interest. As I predicted from last month, many homes have been pulled from the market during the typically slower Holiday months.

Homes priced from $500,000 to $999,999 are actually on the verge of being in a Balanced Market this month. The highest priced homes, (Over $4M are still in an Extreme Buyers Market, I interpret this to means that the “less expensive” homes (if there is such a thing in Marin) are finally selling at a faster clip, which is probably influenced by Feds stabilizing influence on the interest rates.

Like last month, Larkspur is still in a Strong Sellers Market, where 47% of all listed Larkspur homes are in contract. If you want to sell your Larkspur home, this is the time! Corte Madera and Greenbrae are in a Balanced Market; Belvedere, Fairfax, Kentfield, Mill Valley, Novato, san Anselmo, San Rafael and Tiburon are all in a “Buyers Market.” Ross and Sausalito are all in a “Strong Buyers” Market.

Days on Market (DOM): The Average DOM actually decreased this month– 78 days – A lot of this reflects that a lot of listed homes were pulled for the holidays. This means that it is taking an average of 2.5 months for houses to go into a PENDING status. A note of clarity: This does NOT mean when the house goes into contract (as it is still in a contingent state). The DOM clicker is stopped when all contingencies are removed, which is not entirely accurate at tracking how long it takes to get a house into contract. For example, a seller may have a house go into contract just 1 or 2 weeks after it is first listed, but with a long contingency period (say 45 days). This would mean that the DOM would show almost 2 months for that house to sell, whereas it was generally off the market after only a few weeks.

And for those of you who do read these stats, I’d love to know that you find the information useful! It actually takes me quite a lot of time to track, compile and post the data each month – and I’d love to know that it is being utilized! Send me an email to let me know you like getting it!

I’m always searching for ways to bring my clients and readers more local real estate statistics. I’m pleased to announce the launch of my new stats service: http://www.sfmarin.com/stats/lizmccarthy.php There are a lot of great stats here for your viewing pleasure. Once you click on the above link, be sure to mouse over the text near the top that says “Marin Statistics”. You can drill down the stats by year, month and by City. Enjoy. I’d love to hear your feed back if you like this new service!

If you know of anyone who would like to receive this monthly newsletter or is thinking of either buying or selling a home please let me know. I’d love your referrals!

MARIN HOME SALES STATISTICS - BY CITY AS OF 12/15/06
City	Total	Active	Number in Contract***	Percent in Contract*	Type of Market* (See Key)
Belvedere	22	17	5	23%	Buyers
Corte Madera	38	26	12	32%	Balanced
Fairfax	23	18	5	22%	Buyers
Greenbrae	24	16	8	33%	Balanced
Kentfield	20	14	6	30%	Buyers
Larkspur	17	9	8	47%	Strong Sellers
Mill Valley	89	65	24	27%	Buyers
Novato	238	179	59	25%	Buyers
Ross	15	12	3	20%	Strong Buyers
San Anselmo	48	36	12	25%	Buyers
San Rafael	208	152	56	27%	Buyers
Sausalito	47	41	6	13%	Strong Buyers
Tiburon	60	47	13	22%	Buyers
Others	49	37	12	24%	Buyers
Total Marin 12/15/06	898	669	229	25.5%	Buyers
Total Marin 11/16/06	1,197	902	295	24.64%	Buyers
Total Marin 10/15/06	1,401	1,095	306	21.84%	Buyers
Total Marin 9/15/06	1,395	1,127	268	19.21%	Strong Buyers
Total Marin 8/18/06	1,346	1,029	317	23.55%	Buyers
Total Marin 7/13/06	1392	1077	315	22.63%	Buyers
Total Marin 6/16/06	1323	959	364	27.51%	Buyers
Total Marin 5/18/06	1,177	817	360	31%	Balanced
Total Marin 4/10/06	977	629	348	36%	Sellers
Total Marin 3/15/06	894	597	297	33%	Balanced
Total Marin 2/20/06	782	520	262	34%	Balanced
Total Marin 1/8/06	611	449	162	19%	Strong Buyers
Total Marin 12/23/05	622	504	118	15%	Strong Buyers
Total Marin 11/27/05	961	655	306	32%	Balanced
Total Marin 10/14/05	1,086	730	356	33%	Balanced
Total Marin 9/11/105	1,012	651	361	36%	Sellers
Total Marin 7/15/05	1,030	616	414	40%	Sellers
Total Marin 5/25/05	940	503	437	46%	Strong Sellers

MARIN HOME SALES STATISTICS - BY PRICE RANGE AS OF 12/15/06
Price	Total	Active	Number in Contract***	Percent in Contract*	Type of Market* (See Key)
$100,000-$499,999	107	86	21	20%	Strong Buyers
$500,000-$749,999	231	162	69	30%	Buyers
$750,000-$999,999	195	136	59	30%	Buyers
$1,000,000-$1,499,999	148	111	37	25%	Buyers
$1,500,000-$1,999,999	74	60	14	19%	Strong Buyers
$2,000,000-$2,499,999	40	30	10	25%	Buyers
$2,500,000-$2,999,999	23	16	7	30%	Buyers
$3,000,000-$3,999,999	38	30	8	21%	Buyers
Over $4,000,000	42	38	4	10%	Extreme Buyers
Total Marin 12/15/06	898	669	229	26%	Buyers

DAYS ON MARKET (DOM)**
Date	Average	Median	Maximum
Nov	78	62	442

*Key to market type:
0% - 10% of Homes in Escrow: Extreme Buyers	36% - 45% of Homes in Escrow: Sellers
11% - 20% of Homes in Escrow: Strong Buyers	46% - 55% of Homes in Escrow: Strong Sellers
21% - 30% of Homes in Escrow: Buyers	56% - 100% of Homes in Escrow: Extreme Sellers
31% - 35% of Homes in Escrow: Balanced Market

**Based on information from Bay Area Real Estate Information Services, Inc. (BAREIS). Information has not been verified, is not guaranteed, and is subject to change and is based on one period of time.”

***Includes all: Sale Pending & Contingent properties

FREE…..You can search for Marin listings directly on BayAreaRealEstateSales.com: Search for Homes

MAP BASED HOME SEARCH ANNOUNCED ON BAY AREA REAL ESTATE SALES.COM

We’ve added a new map based home search on BayAreaRealEstateSales.com This will allow you to search in any particular area via map, narrow down the specific homes that are available in that area. You can then view specific home sale details like pictures, square footage and price. I hope you like this new feature – be sure to give me any feedback!

http://www.realbird.com/MyRealBird.aspx?id=F3C3C1B5&p=ms&msc=BAREIS&scale=90&rb_f=0

BAY AREA HOME PRICES DECLINE, SALES AT FIVE-YEAR LOW

DQnews.com

La Jolla, CA.----Bay Area home prices dipped below year-ago levels in November for the second time in three months as sales held steady at a five-year low, a real estate information service reported.

The median price paid for a home in the nine-county Bay Area was $616,000 in November. That was 0.3 percent higher than $614,000 in October but down 1.4 percent from $625,000 in November last year, according to DataQuick Information Systems.

Last month's year-over-year decline was the steepest since prices fell 2.1 percent in February 2002. In September this year the median fell 0.8 percent from last year, marking the first annual decline since March 2002, when prices declined 1.3 percent. In October this year the median went positive slightly, up 0.5 percent from a year ago.

Last month's median was 4.3 percent below the $644,000 June peak. Much of the drop is seasonal: summer buyers pay around 3 percent more for their homes than those who purchase between November and February.

"Right now it looks like the Bay Area market is settling in on a price level that could last until spring. What happens after that depends on broader economic factors including interest rates, job growth and household incomes. As prices stabilize and sellers get real about asking prices, a lot of the fence-sitters will jump in. We could see a moderate increase in sales counts," said Marshall Prentice, DataQuick president.

A total of 7,204 new and resale houses and condos sold in the Bay Area last month. That was down 9.7 percent from 7,979 sales in October, and down 25.9 percent from 9,717 in November last year. A decline from October to November is normal for the season.

Last month's sales count was the lowest for any November since 2001, when 6,644 homes sold. Since 1988, November sales have ranged from 5,579 in 1994 to 10,897 in 2004. The average is 7,725.

DataQuick, a subsidiary of Vancouver-based MacDonald Dettwiler and Associates, monitors real estate activity nationwide and provides information to consumers, educational institutions, public agencies, lending institutions, title companies and industry analysts.

The typical monthly mortgage payment that Bay Area buyers committed themselves to paying was $2,865 last month. That was down from $2,901 in October, and down from $2,921 for November a year ago. It peaked in June at $3,183. Adjusted for inflation, mortgage payments are 12.9 percent higher than they were at the peak of the prior cycle in early 1990.

Indicators of market distress are still at a moderate level. Financing with adjustable-rate mortgages is flat. Foreclosure activity is rising but is still within the normal range. Down payment sizes are stable, as are flipping rates and non-owner occupied buying activity, DataQuick reported.

All Homes	No Sold Nov-05	No Sold Nov-06	Pct. Chg	Median Nov-05	Median Nov-06	Pct. Chg
Alameda	2,009	1,441	-28.3%	$587K	$581K	-1.0%
Contra Costa	1,961	1,406	-28.3%	$589K	$562K	-4.6%
Marin	361	268	-25.8%	$809K	$841K	4.0%
Napa	183	125	-31.7%	$605K	$596K	-1.5%
San Francisco	594	441	-25.8%	$749K	$754K	0.7%
San Mateo	756	581	-23.1%	$733K	$726K	-1.0%
Santa Clara	2,394	1,846	-22.9%	$653K	$665K	1.8%
Solano	774	565	-27.0%	$490K	$446K	-9.0%
Sonoma	685	531	-22.5%	$574K	$530K	-7.7%
Bay Area	9,717	7,204	-25.9%	$625K	$616K	-1.4%

DataQuick Information Systems, www.DQNews.com

WHAT DID YOUR NEIGHBORS’ HOUSE SELL FOR?

The Neighborhood Homes Sold listing is a weekly reader feature of the Sunday San Francisco Chronicle and is provided by California REsource, a title abstracting company. The data posted here is typically months after the property officially sold. This is the public data available in the published tax records. The home addresses, sales price, number of bedrooms, square footage and the year the homes were built are based on information supplied from Bay Area counties' property transaction records which, in some cases, may not be complete.

Neither The Chronicle nor California REsource guarantees the completeness or accuracy of the information. Questions or requests for additional information should be directed to Cal Resource

Click on the following links to see what price homes sold for in your neighborhood:

November 26, 2006: http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2006/11/26/REHS_marin.txt

December 3rd 2006: http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2006/12/03/REHS_marin.txt

December 10th, 2006: http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2006/12/10/REHS_marin.txt

Previous editions of Neighborhood Homes Sold

FREE…..You can search for Marin listings directly on BayAreaRealEstateSales.com: Search for Homes

FED HOLDS FEDERAL FUNDS RATE AT 5.25 PERCENT

December 12, 2006 The Federal Reserve's Open Market Committee this week announced it would maintain the target for the federal funds rate at 5.25 percent. This is the fourth consecutive month the committee opted not to raise the target rate, which increased from 1 percent to 5.25 percent between June 2004 and July 2006. The federal funds target rate is the interest rate charged by banks when they borrow funds "overnight" from each other.

Citing the cooling housing market as a factor for the slower economic growth, the Fed also reported higher levels of inflation. "However, inflation pressures seem likely to moderate over time, reflecting reduced impetus from energy prices, contained inflation expectations, and the cumulative effects of monetary policy actions and other factors restraining aggregate demand," the Fed said in a prepared statement.

The Fed also indicated the possibility of future interest rate increases, acknowledging that "some inflation risks remain. The extent and timing of any additional firming that may be needed to address these risks will depend on the evolution of the outlook for both inflation and economic growth, as implied by incoming information."

CALIFORNIA VOTERS CONCERNED ABOUT STATE'S FUTURE

Voters in the Golden State last month approved the largest bond package in state history because they are concerned about California's future, according to a recent post-election survey conducted by the Public Policy Institute of California. While 53 percent of those surveyed indicated they believe the state is headed in the right direction, up from 23 percent in 2005, voters are not completely satisfied. A majority of voters view the $37.3 billion infrastructure bonds package, which authorized spending for highway rehabilitation projects, state housing initiatives, flood protection, and levee repair, to be a "down payment rather than mission accomplished," according to PPIC Survey Director Mark Baldassare. Voters do not believe state funding for such projects is adequate, and 51 percent of voters believe California will be a worse place to live twenty years from now than it is today, according to the survey.

Despite Californians' concerns about the state's condition in coming years, voters also recognized the renewed relationship between Governor Schwarzenegger and the state legislature. Thirty percent of voters said November's election made them feel better about California politics, up from 21 percent in 2005. Additionally, 53 percent approve the way the governor and state legislature are working together.

Source: PPIC.org http://www.ppic.org/main/pressrelease.asp?i=659

FREE…..You can search for Marin listings directly on BayAreaRealEstateSales.com: Search for Homes

MOST U.S. HOUSING MARKETS TO EXPERIENCE SLUGGISH EXPANSION IN 2007

A gradual increase in existing home sales is expected throughout 75 percent of the country in 2007, while the remaining areas will continue to see a slowdown during the first part of the year, according to NAR's year-end forecast. National existing home sales are anticipated to reach 6.40 million in 2007, down 1 percent from this year's expected 6.47 million. With rising construction costs and lower levels of builder activity, the Association projects a larger decline in new home sales, which are forecasted to fall 9.4 percent to 957,000 next year. Median home prices for both existing and new homes are expected to register slight increases in the coming year, forecasted at $224,700 and $241,700, respectively.

"Buyers, especially first-time buyers, with the combined benefits of seller flexibility and an unexpected drop in mortgage interest rates, have a window of opportunity," said NAR Chief Economist David Lereah. "These conditions will persist in many areas until early spring when inventory supplies are likely to become more balanced."

Source: Realtor.org

FREE…..You can search for Marin listings directly on BayAreaRealEstateSales.com: Search for Homes

BEST MORTGAGES IN TODAY'S MARKET

By: Jack Guttentag

"Are some types of mortgages priced better for the borrower than others?"

If you qualify for prime lending terms, there isn't much reason to select an adjustable-rate mortgage (ARM) in the current market. For most such borrowers, the temporary rate benefit in the early years is too small to justify the risk of higher rates later on.

This is a consequence of what has been referred to as a "flattening of the (bond) yield curve." The yield curve is a graph that shows, at any given time, how the yield varies with the period to maturity. A flat yield curve means that yields on long-term bonds are not much higher than those on short-term notes.

Bond markets affect mortgage markets, and vice versa, because a large part of all new mortgages are converted into mortgage-backed securities (MBSs), which investors view as close substitutes for government securities and high-quality corporate bonds. Developments in the MBS market, in turn, are immediately reflected in the primary mortgage market where individual borrowers obtain their loans.

When the bond yield curve flattens, the mortgage yield curve facing borrowers flattens as well. This means a marked reduction in the rate differences between fixed-rate mortgages (FRMs) and ARMs. It also means smaller rate differences between FRMs with different terms.

I did my own online rate survey on Oct. 8. It covered what loan originators call a "cream-puff" loan -- one with no complications. It was a no-cash refinance for $320,000 on a single-family property used as permanent residence and valued at $400,000, to a borrower with good credit who can fully document an adequate income. I used the 30-year fixed-rate mortgage as the base, and measured rate differences with other mortgage types when points and other loan fees were the same.

The most interesting result was that the rate on the 30-year FRM was only .25 percent higher than that on a 3/1 ARM -- for example, 6 percent compared with 5.75 percent. The lower rate on this ARM holds for three years, after which it is adjusted on an annual schedule.

More likely than not, the rate on this ARM will increase at the first adjustment. The new rate will be the value of the rate index at that time plus a margin, which remains the same over the life of the loan. We don't know what the index will be in three years, but we know that right now it is about 5.25 percent, and a competitive margin is about 2.25 percent. This means that if the market doesn't change over the next three years, the new rate on the ARM will be about 7.5 percent. A .25 percent rate difference for three years hardly seems like adequate compensation for the additional risk.

Since the 3/1 ARM is not a good choice, the same conclusion holds for 5/1, 7/1 and 10/1 ARMs on which the initial rates hold for five, seven and 10 years, respectively. The rate advantage over the 30-year FRM, if any, is smaller than .25 percent.

Among FRMs with different terms, rate differences are much smaller than in years past. The 15-year and 10-year FRMs are priced only about .3 percent and .4 percent, respectively, below the rate on a 30-year. The shorter term FRMs remain the better deal, but the reward for borrowers who can afford the higher payments is smaller than it used to be.

The 40-year FRM, in contrast, is priced at about .4 percent above the 30 and is a poor deal. Borrowers who need a payment below the one on a standard 30-year would do better with the interest-only version of the 30. It is priced only about .1 percent above the standard 30 and carries a lower payment than the 40.

These observations don't apply to subprime borrowers, most of whom will continue to obtain ARMs because they will be offered nothing else. The most common subprime ARM is the 2/1 (the initial rate holds for two years), which will typically have margins of 5 percent or more and carry a penalty for early prepayment.

Another category of borrowers unaffected by recent market changes are those fixated on getting the lowest initial payments available in the market. They will continue to select option ARMs on which the payments don't cover the interest in the early years. Option ARMs carry margins 1 percent to 1.5 percent above those on other ARMs because lenders view the default risk as higher.

Of course, what to the lender is a high risk of default and loss, to the borrower is a high risk of losing the house. Most borrowers who take option ARMs make the minimum payment, which leads inevitably to payment increases down the road that may be too large for the borrower to handle.

FREE…..You can search for Marin listings directly on BayAreaRealEstateSales.com: Search for Homes

WHAT DO LIZ’S CLIENTS SAY?

“In essence I had a thoroughly enjoyable, professional and gratifying experience with a person who eventually became a friend. You were clearly interested in my personal life as it applied to the type of home I would be happy in. Even after seeing the house I ultimately bought, you were patient enough to show me additional homes so that I would be comfortable with my decision.

However, it was after we selected the house that I truly benefited from your business skills. The negotiation process, the drafting of the contract, related correspondence and handling the all the details was accomplished with thorough competence and professionalism. The entire experience was thoroughly enjoyable. I truly appreciate how difficult buying a home can be. Yet you handled each obstacle thrown our way by the sellers’ agent, the sellers and the bank with calm assurance and you resolved each issue to my complete satisfaction.

I will be happy to recommend you to all my friends and colleagues who may be buying a house in the future. “

-F Konigsberg

If you would like to have Liz help you sell your Marin home or help you in finding a home, or you know of someone that could benefit from her services, just send her an email:

liz@BayAreaRealEstateSales.com

“High-Touch through High-Tech”: Did you know that Liz McCarthy is ePro Internet Certified by the National Association of Realtors and that 70 percent of home buyers today use the internet in their home search? Why are you still working with a Realtor who isn’t a technology expert?

What this means to you:

Home Buyers: Liz is an expert in helping save you time by using the internet, email and other technology resources to help save your valuable time and money. She knows how busy you are!

Home Sellers: Liz will hire a professional photographer and market your home extensively on the internet: a personal property website (see http://www.417greenfield.com/ or http://www.50milland.com/ for samples), she will post your home on over 50 websites.

FAST FACTS

Marin median price – Nov, 06: $841,000 (Oct, 06: $844,000) [Source: DQNews.com]

Calif. median home price – October 06 $548,680 (September 06: $553,550) [Source: C.A.R.]

Calif. highest median home price Oct 06: Santa Barbara So. Coast $1,115,000 (Aug: $1,025,000) [Source: C.A.R.]

Calif. lowest median home price by C.A.R. region Sep 06: High Desert $328,650 (Oct 06 $329,040) [Source: C.A.R.]

Calif. First-time Buyer Affordability Index - Third Quarter 06: 24 percent [Source: C.A.R.]

Mortgage rates - week ending 12/14/06: (Source: Freddie Mac)

• 30-yr. fixed: 6.12%; Fees/points: 0.4%
• 15-yr. fixed: 5.86%; Fees/points: 0.5%
• 1-yr. adjustable: 5.43%; Fees/points: 0.7%

FREE…..You can search for Marin listings directly on BayAreaRealEstateSales.com: Search for Homes

Be sure to check out all the other great content & features of my website:

http://www.bayarearealestatesales.com/

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The Bay Area Real Estate Newsletter is provided to you by:

Liz McCarthy

Real Estate Broker, e-PRO certified

Liz@BayAreaRealEstateSales.com

415-250-4929

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November 2006 Marin Real Estate Newsletter

MARIN HOME SALES STATISTICS

These statistics show how many homes are available for sale in Marin, and of those how many are currently in contract (either pending or contingent. For the 2nd month in a row, the Marin overall real estate market is in a “Buyers Market.”

Although there are fewer homes on the market this month as compared to last month (approx 200 less), the percentage of homes in contract went up slightly. My feeling is that many of the homes that did not sell have been pulled from the market, anticipating the slower months during the holiday season, or to possibly restart the Days on Market clock for that house trying to regenerate interest. It will be interesting to watch what happens over the next 2 months, which history has shown are typically a slow time for real estate sales.

Unlike last 3 month’s where homes priced under $500,000 were sitting on the market longer and are were in a “Strong Buyers” , all homes priced under $3,000,000 are in a Buyers Market, and homes priced from $750,000 to $999,999 are very close to a Balanced Market. The highest priced homes, (Over $3M are still in Strong Buyers Market, and homes over $4 Million are in an Extreme Buyers Market, where only 4% of them are in contract). I interpret this to means that the “less expensive” homes (if there is such a thing in Marin) are finally selling at a faster clip, which is probably influenced by Feds stabilizing influence on the interest rates.

Like last month, Larkspur is still in a Seller’s Market, in fact, it’s moved into a Strong Sellers Market, where 55% of all listed Larkspur homes are in contract. If you want to sell your Larkspur home, this is the time! Kentfield and San Anselmo are in a Balanced Market; Corte Madera Mill Valley, Novato, San Rafael are all in a “Buyers Market.” Belvedere, Fairfax, Greenbrae, Ross, Sausalito and Tiburon are all in a “Strong Buyers” Market. Ross, which has been in an “Extreme Buyers” market for many months heated up to move into a Strong Buyers Market (on the verge of a Buyers Market).

Days on Market (DOM): The Average DOM continues to increase by 10 days from September – 85 days for September - This means that it is taking an average of 2.5 months for houses to go into a PENDING status. A note of clarity. This does NOT mean when the house goes into contract (as it is still in a contingent state). The DOM clicker is stopped when all contingencies are removed, which is not entirely accurate at tracking how long it takes to get a house into contract. For example, a seller may have a house go into contract just 1 or 2 weeks after it is first listed, but with a long contingency period (say 45 days). This would mean that the DOM would show almost 2 months for that house to sell, whereas it was generally off the market after only a few weeks.

And for those of you who do read these stats, I’d love to know that you find the information useful! It actually takes me quite a lot of time to track, compile and post the data each month – and I’d love to know that it is being utilized! Send me an email to let me know you like getting it!
Click here to view November Stats

FREE…..You can search for Marin listings directly on BayAreaRealEstateSales.com: Search for homes

IS THE MARIN REAL ESTATE MARKET A BUBBLE ABOUT TO BURST?
Can you believe the Real Estate Headlines?
By: Liz McCarthy

In this month’s newsletter I am including a few real estate news stories spouting headlines like: “Home Sales Plunge” and “Prices Flat” which compare the number of home sales and the average sales price for the overall Bay Area, which show home prices are flat when compared to last year. BUT if you look at the following chart, you’ll actually see that Marin, Santa Clara and Alameda have all had small price increases when compared to October 2005. Marin shows 3.3% price increase although there were 27% less homes sold. So yes, the number of homes sold have dropped, but our overall prices went up slightly. On the other hand, comparing this September from September 2005, prices were 3% lower. Home prices are tee-tottering up and down from month to month.

What does this mean to you?

Is it time to finally buy that new home new home and/or sell your current home? Should you continue renting? When trying to decide, look at the overall statistics, do your research, read news stories but then actually drill down into the local data for your county and neighborhood. How long has the house been on the market? Has it had a lot of price reductions? Why isn’t it selling? If a house has just been listed, make sure that your Realtor helps you research the house to see if maybe it had been previously listed. And if you find the perfect house that fits for you, don’t let the headlines scare you, now is the time to buy it, as that house may not exist next month as it’s likely that others will think it’s perfect also.

If you are looking to sell, it’s extremely important to price your home correctly. Buyers are looking for turn-key homes that are in move-in condition. So if the home you are looking to sell needs work, make sure it’s priced appropriately. Price your home for THIS year’s market, not last year’s. Prices have overall remained flat from last year, but keep in mind that buyers are much choosier.

NEW MARIN REAL ESTATE STATS!

I’m always searching for ways to bring my clients and readers more local real estate statistics. I’m pleased to announce the launch of my new stats service: New Stats Link There are a lot of great stats here for your viewing pleasure. Once you click on the above link, be sure to mouse over the text near the top that says “Marin Statistics”. You can drill down the stats by year, month and by City. Enjoy. I’d love to hear your feed back if you like this new service!

WHAT DID YOUR NEIGHBORS’ HOUSE SELL FOR?

The Neighborhood Homes Sold listing is a weekly reader feature of the Sunday San Francisco Chronicle and is provided by California REsource, a title abstracting company. The home addresses, sales price, number of bedrooms, square footage and the year the homes were built are based on information supplied from Bay Area counties' property transaction records which, in some cases, may not be complete.

Neither The Chronicle nor California REsource guarantees the completeness or accuracy of the information. Questions or requests for additional information should be directed to Cal Resource at

Click on the following links to see what price homes sold for in your neighborhood:

November 5th, 2006: November 5th
November 11th 2006: November 11th

FREE…..You can search for Marin listings directly on BayAreaRealEstateSales.com: Search for homes

NEW POLL FINDS CONSUMERS STILL CONFIDENT OF HOME VALUES

Majority Still See Housing as Strong Investment
National Association of Home Builders - November 13, 2006 - Americans remain highly confident about the nation’s housing prospects, with more than four out of five home owners expecting the value of their home to appreciate over the next five years and nearly seven out of 10 calling it their most valuable investment, according to results from a new nationwide survey.

“The poll clearly debunks the more sensational media reports speculating on the demise of the housing market,” said David Pressly, president of the National Association of Home Builders (NAHB) and a home builder from Statesville, N.C. “It is interesting to note that other polls conducted by major news organizations have come up with similar results, indicating that despite the current housing market downturn Americans resoundingly believe that buying a home is the best investment they can ever make.”

The survey of 2,000 households, including more than 1,750 registered voters, was conducted by RT Strategies between Oct. 26-29.
The polling found that 81 percent of home owners believe that the value of their homes will rise over the next five years. Only 13 percent felt their home would fall in value, while 4 percent expected no change and 3 percent were unsure.

In addition, 69 percent of the respondents listed their home as their most valuable investment. By contrast, this was followed by 401(k) and other retirement accounts, with just 11 percent of those polled citing this as their top investment.

Looking ahead, NAHB said the housing market is poised for solid and sustained growth in the future. “We are in the midst of an inevitable adjustment following the housing boom of 2004-2005 when housing market activity soared to unsustainable levels,” said NAHB Chief Economist David Seiders. “Housing demand should stabilize in short order and the downward adjustment to housing production should run its course by mid-2007. The market that emerges from this correction will display good balance between supply and demand and move to a healthy and sustainable trend based on solid underlying fundamentals.”

HOME SALES PLUNGE, PRICES FLAT
SFGate.com

November 16, 2006 October sales down 24 percent from 2005; new houses costing less in many counties. The Bay Area home market continued to seek equilibrium in October, as prices stayed flat and the number of homes sold hovered at five-year lows, according to a report released Wednesday.

The median price for all homes in the nine-county region, including resale homes, condos and new homes, remained at $614,000 -- the same as in October 2005. A total of 7,979 residential properties changed hands, down 24.1 percent from the 10,508 sold during the same month last year, according to DataQuick Information Systems, a real estate reporting service. It was the lowest number of October sales recorded since 2001.

Most residences sold are existing single-family homes. In that category, 5,328 homes were sold, down 23.8 percent from the same month last year. The median price edged up 1.4 percent to $653,000 from $644,000 in October 2005.
"Basically it was just a hold-steady month," said DataQuick analyst Andrew LePage.

"We had a huge shift this year in the supply of homes for sale and the level of demand. It's clear there's less demand. Many buyers who are out there and interested are on the sidelines waiting to see if prices will fall more." Those buyers who do plunge in are finding that the market is still competitive, but no longer the frenzied free-for-all that characterized the price run-up.

Julie Davidson Rocherolle and husband Narendra, both technology executives, have been looking for a house in Mill Valley for about a year. Early on, they got caught up in bidding wars and "had our heart broken twice," with unsuccessful offers, she said. Rocherolle said the calmer market helped them finally land a three-bedroom home, which they closed on last week.

"We'd been patiently waiting for a year and things were nutty for the first nine months of that," she said. "Within the past six weeks, we felt that sellers were a little more nervous. We noticed that more-expensive homes were staying on the market for longer."

The couple, who are first-time home buyers, were up against just one other bidder this time. They ended up paying 5 percent over the asking price for their home, which sold for more than $1 million. Marin County's median price was $915,000 in October, up from $914,000, or just 0.1 percent, since October 2005.

Resale condos paralleled the trend of resale homes throughout the Bay Area. The median price declined 0.2 percent to $489,000. The number of sales fell 29.9 percent to 1,416 from 2,019 a year ago.

Peter Susskind recently experienced the San Francisco condo market from both sides. As a seller, he accepted an offer for his one-bedroom Potrero Hill condo just below his asking price. It sold for $495,000, $4,000 shy of what he had asked. "I have bought and sold properties in this country for 25 years," said Susskind, who is from England. "After a month or so, properties get stale and the agents don't want to bring their clients around. They're waiting for the price to drop. It was a very good offer and it came before I had to start thinking about dropping the price."

But as a buyer, Susskind still had to compete against other bidders. He wound up paying $740,000 for a three-bedroom condo, also in Potrero Hill, that was listed for $699,000. He is in the process of closing. "I've been watching closely for the last year, and while things have certainly cooled down a bit, prices are really not going down very much at all," he said.

New homes, which include condos, condo conversions and detached homes, experienced the biggest price decline, down 7.9 percent for the Bay Area as a whole.

In Contra Costa County, even though the number of new homes sold bounced up 9.5 percent to 472, the median price fell 20.5 percent, to $570,000. New-home prices in San Mateo, Napa, Solano and Sonoma counties also suffered double-digit declines.
DataQuick's LePage said he sees Sonoma and Napa counties as the most vulnerable to price erosion, although because they are small markets, it's harder to extrapolate from the numbers. Sonoma's resale home price was down 5 percent for October, the fourth month in a row it has sunk.

But overall, the Bay Area seems to be as steady as one could expect in a down market.

"We still don't see anything that says the Bay Area market is tanking," LePage said. "We see a lot that suggests it is flattening out. Some (areas) will see erosion in value, but so far it has been modest."

BAY AREA HOME SALES SLOW, PRICES FLAT
DQNews.com

November 15, 2006 La Jolla, CA.----Bay Area home sales held steady at a five-year low in October as buyers and sellers circled each other in a game of wait-and-see. Prices remained flat, a real estate information service reported.

A total of 7,979 new and resale houses and condos were sold in the nine-county region in October. That was up 0.9 percent from 7,907 for the month before, and down 24.1 percent from 10,508 for October last year, according to DataQuick Information Systems.
Last month's sales count was the lowest for any October since 2001 when 7,867 homes were sold. An average October has 8,445 sales in DataQuick's statistics, which go back to 1988. The range is from 5,767 in 1994 to 11,728 in 2003.

"The market is in the midst of its post-frenzy rebalancing phase. The sky is probably not falling, as some have predicted. But there will be those who bought near or at the peak, and who could find themselves in financial trouble if they need to sell and move sooner than they had planned," said Marshall Prentice, DataQuick president.

The median price paid for a Bay Area home was $614,000 last month, up 0.5 percent from September's $611,000, and unchanged from October last year. The median hovered around $630,000 last spring and early summer, and spiked to $644,000 in June before coming down.

DataQuick, a subsidiary of Vancouver-based MacDonald Dettwiler and Associates, monitors real estate activity nationwide and provides information to consumers, educational institutions, public agencies, lending institutions, title companies and industry analysts.

The typical monthly mortgage payment that Bay Area buyers committed themselves to paying was $2,901 last month. That was down from $2,924 in September, and up from $2,876 for October a year ago. It peaked in June at $3,183. Adjusted for inflation, mortgage payments are 14 percent higher than they were at the peak of the prior cycle fourteen years ago.

Indicators of market distress are still at a moderate level. Financing with adjustable-rate mortgages is flat. Foreclosure activity is rising but is still below average. Down payment sizes are stable, as are flipping rates and non-owner occupied buying activity, DataQuick reported.

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HOW TO FIND A REAL ESTATE BARGAIN
By: Dian Hymer

Everybody wants a bargain. Last year, good real estate deals were few and far between. This was due to the fact that inventories of homes for sale were at record low levels. And, there was an abundance of buyers, all looking for the same thing.

Today in most areas, buyers have the luxury of choice. So, there's less of a chance you'll overpay because you have to outbid another buyer. However, even though there is a lot to choose from, this doesn't mean that it will be easier to buy a property at a bargain price.

One reason is that most sellers aren't desperate to sell. Just because the market has changed doesn't mean that sellers are slashing their prices dramatically. Many listings that have price reductions were overpriced to begin with.

Another factor is that there is usually little consistency in pricing. Some listings are well-priced, others are overpriced, and then there is the occasional listing that is actually priced below market value.

nother complicating factor is variability. Unless you're looking at listings in a single tract development, where each house is a cookie cutter of the others, you'll find disparities in age, condition, size and amenities. Each of these variables has an affect on market value.

HOUSE HUNTING TIP: In order to find a good deal, you need to be able to identify a fairly priced property when you see it. This requires intimate knowledge of home values in the area.

A good real estate agent can help you to develop this product knowledge. But, there is no substitute for doing your own due diligence--driving the area, researching the local economy, viewing listings online and visiting open houses. This gives you the confidence you need to make an educated decision about what constitutes a good deal.

Even though the pace of the home sale market has slowed, you may have to make a snap decision or risk losing out on a great buy. Many home sellers price their homes too high for the market. They usually sit for a while before the sellers realize the house can't sell without reducing their price.

But sellers who understand the market and have a pressing need to speed the process along will price their properties at or under market value. If you aren't up on current market values, you could let a good deal slip by because you didn't act quickly enough.

Part of buying at the right price is being there when the well-priced listings come on the market. Don't wait until a Sunday open house to see a new listing if your agent thinks it will sell quickly.

It's possible to create a good deal. One way is to research the listings that have been on the market a while without any offers.

Find out why they haven't sold. If there isn't anything wrong except the price, ask the listing agent why the seller is selling and whether there's any flexibility in the price. Sellers who have a real reason for selling, like a divorce, death in the family or job transfer, will soften on price in time.

Be sure to find out the amount of the outstanding loans secured against the property. If the sellers are mortgaged to the hilt, you might want to move on and negotiate with a seller who has a strong equity position in the property. Even if he sells for less than he'd hoped, he'll at least sell for a profit.

THE CLOSING: Steer clear of listings that aren't selling because they have an incurable defect, like a location on a busy street. You may be able to negotiate a bargain price, but you'll also have to discount your price when you resell the property.

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UNCOVERING TRUE COST OF INTEREST-ONLY REAL ESTATE LOANS
By: Jack Guttentag

Q: "You have stated that interest-only loans cost more, but how much more?"

A: Quite a lot, actually, but it tends to be obscured.

Interest-only (IO) is an option available on some loans that allows the borrower to pay only interest--no principal--for some years, usually five or 10. After the IO period is over, the payment will increase by the amount required to pay off the loan over the period remaining to term.

Borrowers pay for the option. Because of the delay in reducing the loan balance, lenders view IO loans as riskier than loans that begin amortizing immediately. Naturally, they charge for this risk. Between two loans that are identical except that one has an IO option, that one will be priced higher.

Unfortunately, this fact is often obscured. Loan officers and mortgage brokers have a bad habit of comparing the prices of adjustable-rate mortgages (ARMs) that have IO options with fixed-rate mortgages (FRMs) that don't. Since ARMs have lower prices than FRMs, this creates a false impression that the IO is associated with lower prices, when just the opposite is the case.

I recently compared the wholesale prices of 30-year FRMs with and without IO options in a variety of market niches. Wholesale prices are those quoted by major lenders to mortgage brokers and small lenders. They become retail prices after the brokers and small lenders add their markup. All prices assume the borrower has good credit and puts 20 percent down.

Wholesale prices are better than retail prices for checking the price differences between different types of mortgages. Wholesale price quotes are competitive because they are directed at brokers and small lenders who constantly compare one price with another. Retail price quotes, in contrast, include much "noise" because markups vary widely and quoted prices are not always dependable. For example, when borrowers report to me that they were offered the same price for an IO as for a non-IO, I know the loan provider cut the markup on the IO (or perhaps raised the markup on the non-IO) in order to close the deal.

On a home purchase mortgage of $300,000, I found a wholesale rate difference greater than 0.375 percent. On a purchase for investment, the rate difference was almost 0.625 percent. On a cash-out refinance covering an owner-occupied home where neither income nor assets are documented (called "NINA"), the rate difference was almost 0.875 percent. And on the same loan covering an investment property, the rate difference exceeded 1 percent. Similar differences arise on ARMs.

The increasing rate differences reflect the way in which risk factors reinforce each other. Lenders view IO as riskier on mortgages that are already risky, because, for example, they are cash-out, or on investment properties, or involved minimal documentation, and so they charge more for the option on those types of loans.

Take An IO to Pay Down a Second Mortgage More Rapidly?

Q: If you take a combination first and second mortgage, wouldn't it save money if you made the first mortgage IO and used the cash-flow saving to pay down the higher-rate second?

A: If the rate on the first was the same with and without IO, you would indeed save money by taking the IO on the first and applying the payment saving to a more rapid reduction of the balance on a higher-rate second. Assuming the rate on the first is higher with than without the IO, however, which is the case, the savings from paying down the high-rate second mortgage tend to be offset by the higher interest payments on the first. Where you come out is not clear.

To get a handle on it, I constructed a little spreadsheet. The spreadsheet showed that a strategy of using the cash flow saving on an IO first mortgage to accelerate the pay-down of a high-rate second was not promising. You had to stick with it for some years before you could possibly end up ahead. Further, even over a long period, it will only work if you pay a rate no more than 0.125 percent higher for the IO as opposed to the non-IO version of the first mortgage, and only if the second mortgage rate is at least 2.5 percent higher than the rate on the IO first. These conditions are not likely to arise very often.

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WHAT DO LIZ’S CLIENTS SAY?

“In essence I had a thoroughly enjoyable, professional and gratifying experience with a person who eventually became a friend. You were clearly interested in my personal life as it applied to the type of home I would be happy in. Even after seeing the house I ultimately bought, you were patient enough to show me additional homes so that I would be comfortable with my decision.

However, it was after we selected the house that I truly benefited from your business skills. The negotiation process, the drafting of the contract, related correspondence and handling the all the details was accomplished with thorough competence and professionalism. The entire experience was thoroughly enjoyable. I truly appreciate how difficult buying a home can be. Yet you handled each obstacle thrown our way by the sellers’ agent, the sellers and the bank with calm assurance and you resolved each issue to my complete satisfaction.

I will be happy to recommend you to all my friends and colleagues who may be buying a house in the future. “
-F Konigsberg

If you would like to have Liz help you sell your Marin home or help you in finding a home, or you know of someone that could benefit from her services, just send her an email:

liz@BayAreaRealEstateSales.com

“High-Touch through High-Tech”: Did you know that Liz McCarthy is ePro Internet Certified by the National Association of Realtors and that 70 percent of home buyers today use the internet in their home search? Why are you still working with a Realtor who isn’t a technology expert?

What this means to you:

Home Buyers: Liz is an expert in helping save you time by using the internet, email and other technology resources to help save your valuable time and money. She knows how busy you are!

Home Sellers: Liz will hire a professional photographer and market your home extensively on the internet: a personal property website (see www.417Greenfield.com or www.50milland.com for samples), she will post your home on over 50 websites.

FAST FACTS

Marin median price – Oct, 06: $844,000 (Source: DQNews.com)
Calif. median home price – September 06 $553,550 (August 06: $576,360) (Source: C.A.R.)
Calif. highest median home price by C.A.R. region Sep 06: Santa Barbara So. Coast $1,025,000 (Aug: $1,190,000) (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region Sep 06: High Desert $329,040 (Sept 06 $ 332,900) (Source: C.A.R.)
Calif. First-time Buyer Affordability Index - Second Quarter 06: 23 percent (Source: C.A.R.)

Mortgage rates - week ending 11/9/06: (Source: Freddie Mac)
• 30-yr. fixed: 6.33%; Fees/points: 0.6%
• 15-yr. fixed: 6.04%; Fees/points: 0.6%
• 1-yr. adjustable: 5.55%; Fees/points: 0.8%

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www.BayAreaRealEstateSales.com

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The Bay Area Real Estate Newsletter is provided to you by:

Liz McCarthy
Real Estate Broker, e-PRO certified
Liz@BayAreaRealEstateSales.com
415-250-4929

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October 2006 Marin Real Estate Newsletter

MARIN HOME SALES STATISTICS

The best way to describe the current Marin Real Estate Marketing is “interesting.” 2 weeks ago I know of a great San Anselmo property that went into contract just 4 days after it was put on the market for well over asking. This was a great family house in a popular neighborhood. What does the future look like? I feel that homes that are priced correctly, in desirable neighborhoods, in move-in condition are still selling quickly. Homes that are priced for last year’s market (over-priced), that are not in optimum selling condition or that have major drawbacks are sitting on the market.

These statistics show how many homes are available for sale in Marin, and of those how many are currently in contract (either pending or contingent). Last month the Marin market place had moved into a “Strong Buyers” market, but this month it has moved slightly back into a “Buyers Market.”

For the 3rd month in a row, homes priced under $500,000 continue to sit on the market longer and are still in a “Strong Buyers” Market whereas homes priced from $500,000 to $1,499,000 are in a “Buyers Market.”

It’s hard to believe but one Marin town has heated up into a Seller’s Market – this means that it’s becoming harder to find a home to purchase in the town of Larkspur. Corte Madera, Greenbrae, Kentfield, Novato and San Rafael are all in a “Buyers Market.” Fairfax, Mill Valley, San Anselmo, Tiburon and Sausalito are all in a “Strong Buyers” Market. Belvedere and Ross are in an “Extreme Buyers” market.

Days on Market (DOM): The Average DOM continues to increase slightly – 78 days for September - This means that it is taking an average of 2.5 months for houses to go into a PENDING status. A note of clarity. This does NOT mean when the house goes into contract (as it is still in a contingent state). The DOM clicker is stopped when all contingencies are removed, which is not entirely accurate at tracking how long it takes to get a house into contract. For example, a seller may have a house go into contract just 1 or 2 weeks after it is first listed, but with a long contingency period (say 45 days). This would mean that the DOM would show almost 2 months for that house to sell, whereas it was generally off the market after only a few weeks.

And for those of you who do read these stats, I’d love to know that you find the information useful! It actually takes me quite a lot of time to track, compile and post the data each month – and I’d love to know that it is being utilized! Send me an email to let me know you like getting it!
If you know of anyone who would like to receive this monthly newsletter or is thinking of either buying or selling a home please let me know. I’d love your referrals!

October Stats

*Key to market type:
0% - 10% of Homes in Escrow: Extreme Buyers
36% - 45% of Homes in Escrow: Sellers
11% - 20% of Homes in Escrow: Strong Buyers
46% - 55% of Homes in Escrow: Strong Sellers
21% - 30% of Homes in Escrow: Buyers
56% - 100% of Homes in Escrow: Extreme Sellers
31% - 35% of Homes in Escrow: Balanced Market

**Based on information from Bay Area Real Estate Information Services, Inc. (BAREIS). Information has not been verified, is not guaranteed, and is subject to change and is based on one period of time.”
***Includes all: Sale Pending & Contingent properties

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WHAT DID YOUR NEIGHBORS’ HOUSE SELL FOR?

The Neighborhood Homes Sold listing is a weekly reader feature of the Sunday San Francisco Chronicle and is provided by California REsource, a title abstracting company. The home addresses, sales price, number of bedrooms, square footage and the year the homes were built are based on information supplied from Bay Area counties' property transaction records which, in some cases, may not be complete. Neither The Chronicle nor California REsource guarantees the completeness or accuracy of the information. Questions or requests for additional information should be directed to Cal Resource at

Click on the following link to see what price homes sold for in your neighborhood:

View home sales

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PENDING HOME SALES INDICATE STEADY MARKET IN COMING MONTHS

The housing market will continue to stabilize in the months ahead, according to NAR's most recent Pending Homes Sales Index (PHSI). In August, the PHSI stood at 110.1, up 4.3 percent from the previous month and down 14.1 percent from August 2005. The index gauges home sales activity for upcoming months based on the number of transactions that have signed contracts but are not yet closed. A PHSI of 100 or more generally indicates a high level of homes sales activity."Our sense is that home sales may have reached a low in August -- the Pending Home Sales Index shows home sales should be fairly stable over the next two months, although a minor decline is possible," said NAR Chief Economist David Lereah. "With fewer new listings coming on the market, we should be able to draw down the inventory supply early next year to the point where home prices will rise, but at a slower pace than historic norms."The PHSI declined across the nation in August compared with the readings a year ago. On a regional basis, the PHSI was highest in the South, where it declined 9.4 percent to 126.8. In the West, the index fell 16.9 percent to 112.7. The PHSI also declined in the Northeast and Midwest regions, falling to 95.4 and 93.8, respectively.

CHANGING RENTAL LAWS MAY AFFECT YOU

60-Day Notice to Terminate Revived: Beginning January 1, 2007, a residential landlord must generally give a 60-day notice to terminate a month-to-month tenant. However, a 30-day notice to terminate is permissible if any tenant or resident has lived in the property for less than one year, or if the landlord has sold the property in the manner specified by the law. The 60-day notice does not apply to fixed-term leases (e.g. a one-year lease). It also does not apply if it is the tenant, not the landlord, who terminates a month-to-month agreement, in which case the tenant may give merely a 30-day notice. To comport with this new law, C.A.R. will release a new standard form 60-day notice of termination which will also set forth the requirements for the 30-day exception when landlords sell their properties. This law will sunset on December 31, 2009. Source: Assembly Bill No. 1169

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FIVE THINGS YOU MUST KNOW TO PROTECT YOUR FAMILY
By: Michelle C. Lerman

1. IF YOU HAVE MINOR CHILDREN, YOU NEED A WILL. Through a will, you can nominate a guardian for your minor children. Choosing a guardian should be a carefully reasoned decision made by you, the parents. If you were to die without a will, a court would appoint the guardian for your children.

2. IF YOU OWN A HOME, CONSIDER A LIVING TRUST. You can eliminate the time and expense of probate by holding assets in a living trust. A family in California owning a home worth $500,000 and has no other assets will likely have to pay statutory probate fees of about $13,000. If the home were put into a living trust, the probate fees would be zero. However, in some circumstances, probate offers important benefits such as the guidance and involvement of the probate judge. Further, even if avoiding probate were an important goal, a living trust is not the only vehicle for avoiding probate.

3. DETERMINE THE TYPE OF LIVING TRUST YOU WANT. Beware of trust mills that prepare one-size-fits-all living trusts. The most critical part of the estate planning process is the initial conference to determine whether you need a living trust and if so the type of trust you need. If your estate will likely be subject to estate tax, then an ABC Trust (3 sub-trusts are funded after the first spouse’s death) or a Multi-generational Trust (assets are kept in trust for your children/grandchildren) may be appropriate. If, however, with the increasing estate tax “exclusion”, your estate likely will not be subject to estate tax, then an ABC Trust might result in increased expenses and income tax liability. In addition to discussing the type of trust, during the consultations with your estate planning attorney, you will want to discuss other issues: the benefits of a testamentary “separate share” versus “sprinkling” trust for your children, the factors to consider in choosing a successor trustee, and assuming you need an ABC Trust, the different types of formula clauses. An estate planning specialist who drafts a customized living trust after a thorough consultation and careful review of the issues will surely charge more than the trust mill who prepares a cookie-cutter trust (meaning a generic form trust that is not customized to your particular circumstances), but the benefits, including your peace of mind, will outweigh the added expense.

4. HOLDING ASSETS AS JOINT TENANTS ONLY DELAYS PROBATE WHERE HOLDING ASSETS IN A LIVING TRUST AVOIDS PROBATE. Holding title to property as joint tenants delays probate, but does not avoid probate. Holding property as joint tenants has disadvantages: unmarried individuals may be increasing their potential estate tax liability, and a married couple may loose the benefits of the full step- up in tax basis upon the first spouse’s death, resulting in higher income taxes. At a minimum, if you are married and you do not have a living trust, consider holding title as “husband and wife as community property with rights of survivorship” as an alternative to “joint tenants”.

5. CONFIRM THAT YOU’VE NAMED BENEFICIARIES FOR YOUR IRA, 401K AND LIFE INSURANCE. Review your beneficiary designations carefully, and confirm that your designations comply with the current law. If you have young children, consider having your living trust as the beneficiary of your life insurance so that the insurance proceeds can stay in the trust until your children are older and more able to manage the proceeds.

Michelle Lerman practices exclusively in estate planning, probate and trust administration. In 1993, she and her husband, Jeffrey H. Lerman, founded their firm, now called Lerman Law Partners, LLP, which has offices in Los Angeles and San Rafael. In addition to estate planning, the firm has expertise in business, real estate, litigation and finance. Visit their website at http://www.lermanlaw.com/

FREE…..You can search for Marin listings directly on BayAreaRealEstateSales.com: Search for Homes

REMODELING PROJECTS TRY HOMEOWNERS' PATIENCE, FINANCES
By Arrol Gellner

There are three project ideas I hear from homeowners again and again -- probably because at first glance they seem like dirt-cheap ways to add space. Alas, all three are far from being the slam-dunks people think they are. They go something like this:
"We just want to move this wall out a couple feet." This idea usually reflects the hope that a modest addition will translate into modest cost. Actually, the opposite is true. Expanding a room by 2 feet or 10 feet hardly changes the labor involved because all the complications found in the larger addition -- tying into existing roofs, extending utilities, matching existing finishes, and the like -- are found in the small one as well. The actual savings due to the reduced area of floor, walls and roof is trivial. What's more, since you gain only a pitiful number of square feet for all this trouble, your cost per square foot goes sky high.Moral: If you're going to bother adding on, add the maximum area that circumstances, budget and reason will allow. Small additions do not make for small costs.

"We want to go up a story." On the face of it, adding upward instead of outward seems to make sense. The foundation is already done, right? Not necessarily. In most cases, foundations built to support a one-story house are not adequate to support two stories. In the past, building departments have let this problem slide -- which is why you see so many older additions of this kind -- but not anymore. Nowadays, adding a second story often requires foundation reinforcement or even total replacement, neither of which are minor propositions.

Adding a story also means you'll need to carve out an area of at least 3 feet by 11 feet (but probably more) for a staircase, hopefully in a spot that makes sense in terms of circulation. Often, this requires sacrificing a downstairs bedroom, which instantly wipes out the gain of one of the bedrooms you're presumably adding upstairs. Lastly, depending on the character (and the characters) of your neighborhood, you may risk riling up your neighbors by adding a looming second floor and potentially cutting off their views or sunlight or both. In the past, this was their tough luck, but today, it's more likely to be yours.

The upshot: If you've got nowhere else to go but up, so be it, but adding outward is generally an easier, cheaper and less disruptive way to gain space.

"We want to raise the house and put a story underneath." Usually, folks with this idea are already planning to replace their foundation for one reason or another, so they figure it's a great chance to double the size of their house in one fell swoop. As you might guess, though, this project has all the headaches of adding a second story and then some. The same staircase problem applies, but now there's also the additional yet frequently overlooked challenge of getting from the sidewalk up to your front door -- which, you'll recall, is now way, way up in the air. If you're concerned about resale value, it's also worth noting that houses with bedrooms beneath the main living area are less popular with buyers than those with more conventional arrangements. This isn't to say that these three approaches aren't worth considering. If the inherent problems are anticipated and properly dealt with, any one of them can yield a perfectly good project.

Still, if there's space available, building a right-sized addition at ground level is usually cheaper and easier.

PREPARING FOR A DISASTER, A MAR PUBLIC SERVICE PROGRAM - OCT. 25

Invite your clients, friends, neighbors, etc. to this valuable program from 6:30 p.m. to 7:30 p.m. at the Marin Association of Realtors (MAR) offices. Learn how to prepare your home, your office and your car for a disaster, and how the Marin Medical Reserve Corps will be deployed in the event of a disaster. This free program will be conducted by Brian Waterbury, former division chief of the San Rafael Fire Department and former coordinator of San Rafael's Disaster Area Response Team (DART) program. Space is limited to 60. Call MAR at 415-507-1000 today to reserve your seat. For more information, "click here" to access the MAR Web site; after log-in select "Preparing for a Disaster".

FREE…..You can search for Marin listings directly on BayAreaRealEstateSales.com: Search for Homes

WHAT DO LIZ’S CLIENTS SAY?

“David and I still talk about the incredible website you created to help showcase our home on Greenfield Avenue. We know the website helped create the tremendous interest we had in our home which resulted in the eleven offers and bidding war. It also demonstrated just one of the many ways you provided us with excellent client service.”
-D&D Henzyl

If you would like to have Liz help you sell your Marin home or help you in finding a home, or you know of someone that could benefit from her services, just send her an email:

liz@BayAreaRealEstateSales.com

“High-Touch through High-Tech”: Did you know that Liz McCarthy is ePro Internet Certified by the National Association of Realtors and that 70 percent of home buyers today use the internet in their home search? Why are you still working with a Realtor who isn’t a technology expert?

What this means to you:

Home Buyers: Liz is an expert in helping save you time by using the internet, email and other technology resources to help save your valuable time and money. She knows how busy you are!

Home Sellers: Liz will market your home extensively on the internet: a personal property website (see http://www.417greenfield.com/ or http://www.50milland.com/ for samples), she will post your home on over 50 websites.

FAST FACTS

Marin median price – Sept 25, 06: $827,500 (Source: SFGate)
Calif. median home price - August 06: $576,360 (July 06: $ 567,360) (Source: C.A.R.)
Calif. highest median home price by C.A.R. region Aug 06: Santa Barbara So. Coast $1,190,000 (July: $1,075,000) (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region Aug 06: High Desert 332,900 (July 06 $ 333,330) (Source: C.A.R.)
Calif. First-time Buyer Affordability Index - Second Quarter 06: 23 percent (Source: C.A.R.)

Mortgage rates - week ending 10/05/06: (Source: Freddie Mac)
· 30-yr. fixed: 6.3%; Fees/points: 0.3%
· 15-yr. fixed: 5.98%; Fees/points: 0.4%
· 1-yr. adjustable: 5.46%; Fees/points: 0.7%

FREE…..You can search for Marin listings directly on BayAreaRealEstateSales.com: Search for Homes

Be sure to check out all the other great content & features of my website:
http://www.bayarearealestatesales.com/

View the newsletter archives

The Bay Area Real Estate Newsletter is provided to you by:

Liz McCarthy
Real Estate Broker, e-PRO certified
Liz@BayAreaRealEstateSales.com
415-250-4929

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September 2006 Marin Real Estate Newsletter

Bay Area Real Estate Sales.com Newsletter
September 2006
IN THIS ISSUE:

Marin Home Sales Statistics
Marin Housing Market Shifts To Buyers
Bay Area Home Sales Decline, Prices Level Off
NAR: Contrary To Many Reports, There Is Not A ‘National Housing Bubble
Cooling Real Estate Market Presents Challenge For Sellers
Large Insurer Requests Rate Decrease For Homeowner's Insurance
Adjustable-Rate Mortgage Activity At Lowest Level Since October 2003
What Do Liz’s Clients Say?
Fast Facts


MARIN HOME SALES STATISTICS

To view the actual stats for September 2006, click here: Marin Home Sales Statistics

The overall Marin home sales market continues to cool according to the following statistics.

These statistics show how many homes are available for sale in Marin, and of those how many are currently in contract (either pending or contingent). For the last 3 months the Marin Real Estate Market was in a “Buyers Market”, and this month for the first time, the overall Market is in a “Strong Buyers” category (which means that only 11%-20% of all available homes for sale are in contract.*

Interestingly enough, homes again priced under $500,000 are sitting on the market longer and are currently in a “Strong Buyers” Market whereas homes priced from $500,000 to 999,000 are in a “Buyers Market”. Again, like last month I find it very interesting to note that homes priced from $2,500,000 to $2,999,999 are in a “Balanced Market!” To me, this seems to mean that buyers in the higher end of the Marin real estate market are not affected as much by the increase in interest rates, as they are more likely to be making their home purchases with more cash as compared to mortgages.

This month, every town in Marin is in some type of “Buyers Market”, whereas last month Larkspur and Mill Valley, were both in a “Balanced Market.”

Days on Market (DOM) and price changes when sold: The Average DOM for August is 74 days (only 1 day longer than last month’s 73 days for July) and the Median is 58. This means that it is taking an average of 2 months for houses to go into a PENDING status. A note of clarity here. This does NOT mean when the house goes into contract (as it is still in a contingent state). The DOM clicker is stopped when all contingencies are removed, which is not entirely accurate at tracking how long it takes to get a house into contract. For example, a seller may have a house go into contract just 1 or 2 weeks after it is first listed, but with a long contingency period (say 45 days). This would mean that the DOM would show almost 2 months for that house to sell, whereas it was generally off the market after only a few weeks.

I’ve decided to no longer track the Sold price changes as compared to the original list price based on DOM. The reason for this is that I’ve just discovered that our MLS system’s way of calculating these stats are not really accurate. Their stats show very little price drop even over time (around 5%), BUT these price changes only reflect the price SOLD compared to the last price change that was made NOT the original list price!!! So basically, overall the price drops are not accurately reflected in these comps. I will list them (based on our MLS way of calculating them) this month, but will no longer track the data.

And for those of you who do read these stats, I’d love to know that you find the information useful! It actually takes me quite a lot of time to track, compile and post the data each month – and I’d love to know that it is being utilized! Send me an email to let me know you like getting it!
If you know of anyone who would like to receive this monthly newsletter or is thinking of either buying or selling a home please let me know. I’d love your referrals!

MARIN HOUSING MARKET SHIFTS TO BUYERS
By Carla Bova, Marin IJ 9/21/06

Marin's median home price edged up last month, although sales volume fell from a year earlier. The median price of a single-family home in August was $920,000, up from $900,000 in July, and the same as August 2005. Single-family sales totaled 277, up from 204 in July but down from 297 in August 2005.

Total home sales, including condominiums, were down 13 percent from last year, mirroring a trend throughout the Bay Area where sales were down from 18 percent in San Mateo County to about 47 percent in Napa County, according to DataQuick Information Systems, a La Jolla-based real estate information service. Marin condo sales were up from 60 in July to 70 last month, but that figure was down 36.4 percent from 110 units sold in August 2005.

Stephen Levy, director of the Palo Alto-based Center for the Continuing Study of the California Economy, said the data suggest Marin is participating in the housing slowdown that is occurring in the Bay Area and statewide. "So far the major trend is the sharp decrease in sales activity but I expect that prices, which are leveling off now, will decline over the next year," Levy said. "I think we are at the beginning of the slowdown in the housing market in terms of prices.

"The reason we are toward the beginning of a slowdown in prices is that it usually takes several months before sellers realize they are going to need to cut the price to sell," Levy said. "Over time what starts out as leveling in price can turn into a decline in price."

The Marin median condo price dropped to $546,500 last month, down from $575,000 last year and down from $555,000 in July.

Pacific Union broker Barry Crotty said condo prices fell because many first-time homebuyers are priced out of the market. "Condo buyers are tied much closer to the rise and fall of interest rates and that has a direct effect on their ability to purchase," Crotty said.
He said that while the number of single-family home sales fell compared with last year, the increase in sales from July indicates a shift in the market.

"We definitely had a falling off in the summertime and the numbers suggest in August we are coming out of that dip," Crotty said. "People feel confident that there is not a bubble about to burst, that the economy is going well, interest rates are coming down and it is a good time to buy housing and that is what happened in August. "It is a much more attractive market for buyers with decent interest rates, the ability to negotiate more on price and terms and more properties to choose from."

There are more sellers than buyers lately, Levy noted. "Buyers see stories in the news which are correct about the market slowing so they feel they can be more selective and aggressive," Levy said.

Valerie Castellana, president-elect of the Marin Association of Realtors, said buyers "have a lot more power to negotiate than they did a year ago - but sellers are definitely holding on to their pricing."

BAY AREA HOME SALES DECLINE, PRICES LEVEL OFF
DataQuick - La Jolla, CA.---- September 20, 2006

Home sales in the Bay Area declined again last month as prices continued to level off, a real estate information service reported.
A total of 9,128 new and resale houses and condos were sold in the nine-county region last month. That was up 14.9 percent from 7,941 for July, and down 24.9 percent from 12,154 for August last year, according to DataQuick Information Systems.

Last month was the slowest August since 1997 when 9,080 homes were sold. DataQuick's statistics go back to 1988: the slowest August was in 1992 with 6,326 sales, the strongest was in 2003 with 12,488. The average August sales count since 1988 is 9,530.
"Several things are going on. Many homes are being offered for sale at unrealistically high prices as sellers try to game the peak of the market. Buyers appear to be taking a wait-and-see approach as sellers get real with their asking prices. The market seems to be going into a lull, until this all shakes out. It does appear that the strong appreciation of the recent past is leveling off," said Marshall Prentice, DataQuick president.

The median price paid for a Bay Area home was $620,000 last month. That was down 1.1 percent from $627,000 in July, and up 0.2 percent from $619,000 for August a year ago. Last month's year-over- year increase was the lowest since March 2002 when the $381,000 median fell 1.3 percent.

The typical monthly mortgage payment that Bay Area buyers committed themselves to paying was $2,966 in August. That was down from $3,106 in July, and up from $2,761 for August a year ago. Adjusted for inflation.

Indicators of market distress are still largely absent. The use of adjustable-rate mortgages has decreased the last half year. Foreclosure rates are coming up from last year's low point, but are still below normal levels. Down payment sizes are stable and there have been no significant shifts in market mix, DataQuick reported.

DataQuick, a subsidiary of Vancouver-based MacDonald Dettwiler and Associates, monitors real estate activity nationwide and provides information to consumers, educational institutions, public agencies, lending institutions, title companies and industry analysts.

FREE…..You can search for Marin listings directly on BayAreaRealEstateSales.com: Search for Homes

NAR: CONTRARY TO MANY REPORTS, THERE IS NOT A ‘NATIONAL HOUSING BUBBLE
WASHINGTON (September 13, 2006) –

Housing prices are expected to continue to have a limited fall throughout 2006, according to testimony submitted by the National Association of Realtors® at today’s Senate Banking Committee hearing on the economy. In addition, NAR noted that the sellers’ market is transitioning to a buyers’ market, which can be healthy for some local economies.

“For the past five years, the housing market has been a steadfast leader in the U.S. economy,” Thomas M. Stevens, president of NAR, told the Senate Subcommittee on Housing and Transportation and the Senate Subcommittee on Economic Policy. “After five years of outstanding growth, the housing market is undergoing a period of adjustment and becoming more and more of a balanced market between buyers and sellers,” said Stevens.

Stevens said that with the falling demand and increased supply, home prices still realized slight appreciation though it was less than 1 percent, where over the past few years homes were appreciating at double-digit rates. “While recent developments raise concern, it is important to remember that the housing market varies significantly across the country,” said Stevens. One-third of the country (by population) is still seeing rising home prices, including Alaska, New Mexico, Vermont and many states in the South, excluding Florida. States that experienced the greatest increases in home prices in recent years are experiencing significantly lower sales, such as Arizona, California, Florida, Nevada and Virginia.

“Contrary to many reports, there is not a ‘national housing bubble,’” said Stevens. “We were seeing home prices and mortgage debt servicing cost-to-income ratios increase to unhealthy levels in some housing markets, which precipitate an adjustment.” Also contributing to the cooling housing market is an increase in mortgage rates of nearly one point, speculative investors pulling back and first-time buyers being priced out of the market.

Adjustments to the housing market are not unique and can often times be necessary, said Stevens. In addition to the rapid appreciation of years past, the rise in mortgage rates affects a homebuyer’s ability to finance and purchase a home. “Pressure is being felt in the housing market due to rising mortgage rates,” said Stevens. “With rising interest rates, homebuyers have become exhausted financially which explains why sales have tumbled in higher-priced regions of the country.”

NAR forecasts a drop in home sales of around 8 percent in 2006, followed by another 2 percent decline in 2007. These numbers are based on the stabilizing of mortgage rates and modest expansion of the economy. Also predicted is that home price growth will be minimal—less than 3 percent in 2006 and 2007. However, NAR warns that a significant shift in interest rates or a change in the economy would change this forecast. NAR notes that a soft landing is possible under the right circumstances and affordable mortgage financing is an important component in achieving this.

“Because the housing market strongly supports the economy and drives consumer spending, it is imperative that the Congress adopt policies that encourage homeownership and make purchasing a home obtainable for the millions of families who desire to own a home of their own. NAR stands ready to work with Congress to continue to open the door to the American dream of homeownership,” said Stevens.

FREE…..You can search for Marin listings directly on BayAreaRealEstateSales.com: Search for Homes

COOLING REAL ESTATE MARKET PRESENTS CHALLENGE FOR SELLERS
By Dian Hymer

The housing market has changed. There are fewer multiple offers. Negotiation is back in vogue. Listings, in general, are taking longer to sell. And some listings are not selling at all.
What are your options if your home is less desirable in the current marketplace than you'd hoped it would be?
One option is reduce your price. Another is to hold out for a while, hoping that the market improves to meet your price. In most cases, however, the latter option is unlikely to yield results. The robust housing market of the last several years appears to be taking a break. No one knows how long it will be before we see double-digit price appreciation again. Many experts believe it will be years. A third option, if there's no urgency to sell, is to rent the property for a time and sell at a later date. This might be worth considering. However, as with any scheme, there are pros and cons that should be evaluated carefully before making a decision.
On the positive side, a property that is, or will soon be, sitting empty will generate income. This income can help offset mortgage and property tax obligations and homeowner association dues for condo owners. Another plus is that you can buy time until the market improves.
On the other side, consider that the market in most places is still good. 2006 isn't expected to be as strong a year for homes sales as was 2005, which was the best year ever. However, David Lereah, chief economist for the National Association of Realtors, predicts that the 2006 home sales volume will be the third best ever.

A risk in renting now and selling in 2007 or later is that the home sale market might not be as good then as it is now. If interest rates rise considerably in the interim, it most certainly won't be better. A downturn in the general economy also wouldn't bode well for the housing market, particularly if accompanied by higher interest rates and oil prices.

HOME SELLER TIP: An important factor to consider is the tax implications of renting rather than selling. If you have owned and occupied the property as your primary residence for two of the last five years, you are entitled to a capital gain tax exemption. For a single individual, $250,000 of capital gain is tax-free. The exemption is $500,000 for a married couple who files jointly.

If you wait over three years to sell because of market conditions, you would lose this valuable exemption unless you move back in to the property, which might not be convenient or possible at that time. You could forgo the exemption and turn the property into a permanent rental for tax purposes. At some later date, you might do a 1031 exchange and trade this investment property for another, thereby deferring tax on the gain.

However, deferring gain on an investment property may not be as advantageous as taking the tax-free gain you can realize when you sell a personal residence. Be sure to consult with a knowledgeable tax adviser about the consequences of turning your single-family residence into a temporary or permanent rental.

Even if you do sell in time to preserve your capital gain tax exemption, you're likely to face additional expenses preparing your home for sale. Tenants usually don't care for a property as an owner would, so you should anticipate that repairs and renovations will be necessary.
THE CLOSING: When you take into account the cost of future renovations and staging, and the uncertainty of a future market, you might be better off lowering your asking price and selling now.

FREE…..You can search for Marin listings directly on BayAreaRealEstateSales.com: Search for Homes

LARGE INSURER REQUESTS RATE DECREASE FOR HOMEOWNER'S INSURANCE
For Release: September 6, 2006

Insurance Commissioner John Garamendi Announces State Farm’s Request for a 10.6 % Reduction in Rates – 1.2 Million California
Homeowners and Renters Will Benefit

SACRAMENTO – Insurance Commissioner John Garamendi today announced that State Farm Insurance has requested a 10.6% reduction in homeowners’ insurance rates, amounting to $123 million in savings for 1.2 million California homeowners and renters. The average policyholder would save $103 annually.
The rate reduction filing, which must be reviewed by the Department of Insurance before any approval is given, comes on the heels of the Commissioner’s June order requiring four major insurers to justify their rates. An earlier study by the Department determined that insurers have been paying far less in claims than they collect in premiums.

“This is good news for State Farm policyholders and for all California insurance consumers,” said Commissioner Garamendi. Noting that USAA sought a decrease earlier this year, the Commissioner said he expects even more savings for consumers. “As more large companies file for decreases, others will be forced to follow suit in order to compete.”

Wednesday’s announcement is in sharp contrast to Allstate’s announcement last week that it would seek a 12.2 percent increase in its homeowners insurance rates. In June, the Commissioner ordered Allstate, State Farm, Farmers Insurance and Safeco Insurance to justify their rates. The move was prompted by the Department study’s finding that four of the state’s largest homeowners’ insurers were paying far less than 50 cents of each premium dollar to settle policyholder claims. The four insurers account for 51% of the California homeowners’ insurance market.

The study, called “Lower Claims, Higher Profits: Where Do Your Premium Dollars Go?” disclosed the historically low loss ratios that the insurers have experienced over the past two years. For instance, in 2005 State Farm kept 62.4% of each premium dollar after making payments for claims; Allstate kept 59%; Farmers kept 62.3%; and Safeco kept 73.7%. In light of that extraordinarily low percentage of premium dollars used to settle policyholder claims, Commissioner Garamendi ordered the four insurers to provide data showing their current rates are not excessive.

“As Commissioner I want this industry to remain healthy and competitive in California,” said Commissioner Garamendi. “However, it is my duty to uphold the law that requires that insurance company profits not be excessive. I am determined to fulfill my responsibility, ensuring that premiums paid by California homeowners do not exceed what is necessary for insurers to pay claims and earn a reasonable profit.”

ADJUSTABLE-RATE MORTGAGE ACTIVITY AT LOWEST LEVEL SINCE OCTOBER 2003

WASHINGTON, D.C. (September 6, 2006) — The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending September 1. The Market Composite Index, a measure of mortgage loan application volume, was 566.3, an increase of 1.8 percent on a seasonally adjusted basis from 556.5 one week earlier. On an unadjusted basis, the Index increased 0.4 percent compared with the previous week but was down 26.1 percent compared with the same week one year earlier.

The seasonally-adjusted Purchase Index increased by 3.7 percent to 389.7 from 375.9 the previous week and the Refinance Index decreased by 0.9 percent to 1594.7 from 1609.2 one week earlier. Other seasonally adjusted index activity includes the Conventional Index, which increased by 1.5 percent to 838.7 from 826.7 the previous week, and the Government Index, which increased 5.8 percent to 112.1 from 106 the previous week.
The four week moving average for the seasonally-adjusted Market Index is up 0.6 percent to 561.4 from 558.1. The four week moving average is up 0.1 percent to 383.4 from 383.2 for the Purchase Index, while this average is up 1.2 percent to 1600 from 1580.8 for the Refinance Index.

The refinance share of mortgage activity decreased to 41.0 percent of total applications from 41.5 percent the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 26.2 percent of total applications from 26.8 percent the previous week. The ARM share is at its lowest level since October 2003.

FREE…..You can search for Marin listings directly on BayAreaRealEstateSales.com: Search for Homes

WHAT DO LIZ’S CLIENTS SAY?

“Liz proved to be much more than we ever expected from a real estate agent. Apart from providing us with the most up-to date listings, extraordinarily useful market data, and useful information regarding schools, neighborhoods, and the like, Liz served as our advisor and our advocate. With ease and grace, Liz navigated us through the process, always making a point of listening to our concerns, understanding our needs, and working within our limitations.

We especially appreciated Liz’s candor and her ability and willingness to articulate all the facts and issues that we should be considering. Obviously, we wanted to make the right decision for ourselves, but were not always certain that we were considering all of the important issues. Far from being pushy, Liz has a talent for understanding her clients and providing them with balanced, thoughtful advice. She helped us reach our own conclusions without pushing us in any specific direction.

We would recommend Liz McCarthy to any potential home buyer. Whether first-time buyers or experienced buyers, she will impress them all with her extremely hard work, dedication and professionalism. Whenever anyone tells us that they are thinking about buying in Marin, we immediately tell them that they we have the greatest real estate agent for them!”
-D&A Morris

If you would like to have Liz help you sell your Marin home or help you in finding a home, or you know of someone that could benefit from her services, just send her an email: mailto:Liz@BayAreaRealEstateSales.com?subject=Newsletter

“High-Touch through High-Tech”: Did you know that Liz McCarthy is ePro Internet Certified by the National Association of Realtors and that 70 percent of home buyers today use the internet in their home search? Why are you still working with a Realtor who isn’t a technology expert?

What this means to you...
Home Buyers: Liz is an expert in helping save you time by using the internet, email and other technology resources to help save your valuable time and money. She knows how busy you are!

Home Sellers: Liz will market your home extensively on the internet: a personal property website (see http://www.417greenfield.com/ or http://www.50milland.com/ for samples), she will post your home on over 50 websites.

FAST FACTS

Calif. median home price - July 06: $ 567,360 (Source: C.A.R.)
Calif. highest median home price by C.A.R. region July 06: Santa Barbara So. Coast $1,075,000 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region July 06: High Desert $ 333,330 (Source: C.A.R.)
Calif. First-time Buyer Affordability Index - Second Quarter 06:23 percent (Source: C.A.R.)

Mortgage rates - week ending 9/13/06: (Source: Freddie Mac)
· 30-yr. fixed: 6.47%; Fees/points: 0.4%
· 15-yr. fixed: 6.16%; Fees/points: 0.4%
· 1-yr. adjustable: 5.63%; Fees/points: 0.7%

FREE…..You can search for Marin listings directly on BayAreaRealEstateSales.com: Search for Homes

If you are thinking of selling your home, I would be more than happy to give you a free home evaluation. I also create property specific websites for all of my listings: visit: http://www.27rutherford.com/ for an example

Be sure to check out all the other great content & features of my website:
http://www.bayarearealestatesales.com/

View the newsletter archives

The Bay Area Real Estate Newsletter is provided to you by:

Liz McCarthy
Real Estate Broker, e-PRO certified
Liz@BayAreaRealEstateSales.com
415-250-4929 (cell)
Mill Valley, CA 94941