You really need to look at the year before to see how the market performed – and from the statistics, we can see the median home price, county-wide, is actually down 33.5% in April of 2009 compared to a year ago. … Honestly, I am mystified how people can take a few anecdotes, completely ignore the state of the economy and the housing market as a whole, and now herald, with strident authority, that we are now at the bottom of the market and THIS, TODAY is the time to buy, or you will miss out on the chance of a lifetime. … Well, that’s not true – short sales can also occur at those prices, and some people who have had their homes a long, long time may have enough equity in them to compete with all the REOs and short sales. … Personally, I think it’s going to put increased pressure on the bottom of the market, as many people who were looking at buying a lower-priced “starter” home may now be thinking of stretching to go for one of these “premium” foreclosures which I expect we’ll be seeing.
real estate industry
The Housing Crash guy says: A landlords’ rule of thumb is that a house price should be a maximum of 15 times the annual rent for that place, yet in coastal areas, houses are still selling for 30 times annual rent I think he’s got a good point there – which goes to underscore my belief that prices in Watsonville are actually very reasonable at the moment. … Looking over the ads on Craig’s List, it’s safe to say that a 3 bedroom, 2 bathroom house would rent for about $2,400 a month in Santa Cruz, assuming it was in a not-so-great location. … Let’s look at the payment for a $500,000 house – but let’s assume you’re putting down a reasonable 10% instead of the FHA minimum of 3.5% – so you’d have a $450,000 loan, again at about 5.75% because with only 10% down, you’d still need to pay mortgage insurance. … Let’s say you’re in a tax bracket of 25%, and you can figure you’d save about $640/month in federal and state taxes, bringing your effective monthly after-tax payment to about $2,519 per month, or just about $120 more than renting.
Happy New Year! I hope everyone had a safe and sane New Year’s Eve, and I hope that as I type this on January 2nd, most of you are taking the day off to spend on vacation, or with friends and family. We’ll all get back to the grindstone soon enough, but I think that […]
However, the Preamble does says Realtor® members should: eliminate practices which may damage the public or which might discredit or bring dishonor to the real estate profession Do you think that maybe, some members of the public were damaged by making unsupportable claims such as the ones I mentioned above? It looks to me like making such claims is not a violation of the Standards of Practice and therefore no action could be taken against Realtors for making such statements, however, telling your client these kinds of things clearly goes against the spirit of the Code of Ethics as set forth in the Preamble. … However, this creates something of a paradox – the fact that it’s easy to become a Realtor, anyone can join so long as they are a real estate licensee – yet, per the code of Ethics: The services which REALTORS ® provide to their clients and customers shall conform to the standards of practice and competence which are reasonably expected in the specific real estate disciplines in which they engage; specifically, residential real estate brokerage… … Of course, another brutal truth is, most Realtors have no day-to-day business – they have week-to-week, or month-to-month: there just are not enough transactions to go around which can support a Realtor community as large as we have here in Santa Cruz, even considering our recently diminished numbers.
It’s time once again to play the game – when is the housing market going to recover? The Santa Cruz Sentinel is taking another stab at it:
…Robert Kleinhenz, deputy chief economist for the California Association of Realtors, forecasts a turnaround next spring. … I had a bunch more stuff I wanted to talk about, but it’s 11:33 PM and I still have lots more “real” work to do tonight before hitting the hay and gettin’ back at it tomorrow morning bright and early.
And it’s no surprise, either, that Flat Rate Realty closed an office – these discount brokerages do good when times are fat, but when times get lean, it’s hard to discount your services like that on a regular basis. What’s kind of a surprise is that Cenutry 21 Showcase closed its office right there at Highway 9 and Graham Hill Road – that’s Ronnie Trubek’s office, for heaven’s sake!
… Another interesting tidbit in that article is that there are 1,209 Realtors at the Santa Cruz Association of Realtors – that’s down from a year ago figure of 1,300. … But, we can’t forget the Watsonville Association of Realtors – not quite sure how many Realtors they have, but I thought it was like 600.