In the last month there have been four solds and six pending properties in Atherton. Highest sale over 9 million. Menlo Park has six properties currently pending with a list price over 2 million and Palo Alto four over 2 million list.
It seems activity is picking up in the stagnant high-end market in the Mid-Peninsula. More showings and more interest overall. One of the groups showing considerable interest are builders. The fact that builders are more optimistic demonstrating a belief in a future ascending market is an indication that, perhaps, this market has bottomed. In many instances the builder already has an end-user. Helping things along is the willingness of banks to open their doors to more non-conforming jumbo loans. There is no secondary market for these jumbo loans so banks are even more demanding in the qualifying process. Be prepared to go through a gut- wrenching, lengthy,’ open every aspect of your life’ process.
To be sure much inventory is still sitting on the market with price reductions a common occurance but clearly a stiring of the leaves and a wind in the high-end real estate air.
Speaking of inventory, Leslie Appelton Young, Vice President and Chief Economist for CAR (California Association of Real Estate) said in herspeach to members earlier this year that California would experience a housing shortage in 5 to 10 years. I find this completely believable since new construction is down 83% since 2004 and new permits just a trickle.
For those seeking to buy a fixer upper you need to know about the Federal Housing Administration (FHA) 203K renovation loans. These loans are perfect for a bargain hunter who has spotted a fixer-upper or a foreclosure in need of immediate repair, or a buyer who has found a home that would be ideal if only there were a third bedroom and a second bathroom.
The renovation loan provides the money to both purchase the home and finance the home’s renovation. With one loan, there is only one application, one set of fees, one closing and one monthly payment. At closing, the house is paid for, and the repair money is put into a trustee account for disbursement as repairs are completed. Improvements can include anything that adds value to the home, such as a room addition, new carpeting, landscaping, plumbing, roofing or a new kitchen. The loan can also be used for energy-efficiency improvements that qualify for tax credits* under the new stimulus package.
Another great advantage of a renovation loan is that it provides borrowers a loan based on the increased property value after renovation. But that’s not the only financial upside. The required down payment on a renovation loan can be as low as 3.5%. As a tax deductible first mortgage, the renovation loan will usually feature a lower interest rate than a second mortgage and improvement costs can be spread over the term of the loan. The loan can also provide financing for up to six months of mortgage payments if the house is not occupied during construction.
Just knowing about our renovation loans may make the vital difference on whether to purchase or not. Give me a call for more information on who is offering these loans
*Always consult your tax advisor for tax information and advice.
In the last month there have been four solds and six pending properties in Atherton. Highest sale over 9 million. Menlo Park has six properties currently pending with a list price over 2 million and Palo Alto four over 2 million list.
