Arn Cenedella

Archive for the 'San Carlos Real Estate' Category

San Carlos to enter into negotiations with Silverstone for Wheeler Plaza Development

San Carlos announces:

On Monday, February 9, 2009, the City Council directed staff to begin negotiations with Silverstone Communities to enter into an agreement with the City. Once the agreement is completed and approved by the City Council, Silverstone Communities will develop designs and plans to redevelop Wheeler Plaza and to partner with the City on an extensive public participation process on this site.Wheeler Plaza is located one block west of El Camino Real, immediately southwest of the intersection of San Carlos Avenue and Laurel Street and includes a parking lot and 2 adjacent parcels – a retail building on one side, and a six-unit rental housing development on the other.

Silverstone Communities recently has built a large condominium development on El Camino Real in Los Altos called Peninsula Real.

Good news for Investors – Fannie Mae rule change

Until today, Fannie Mae had a rule that they would not buy mortgages from borrowers who had five or more real estate loans – or perhaps more accurately stated – mortgages from borrows that had loans on five or more properties.

Fannie Mae changed this rule today:

Per Fannie Mae announcement 09-02:

Multiple Mortgages to the Same Borrower
To support prudent lending for housing investment, Fannie Mae is changing our current limit of four financed properties per borrower. We will allow five to ten financed properties per borrower, with certain eligibility and underwriting requirements, including a 720 minimum credit score and 70-75% maximum LTV/CLTV/HCLTV (depending on the transaction and property type). The requirements apply to any loan being delivered to Fannie Mae, regardless of whether Fannie Mae is the investor on the borrower’s other mortgages.

I have recently written several posts stating my belief this is a great market for first-time buyers or for first-time investors.

This Fannie Mae rule change will make it easier for investors to make additional real estate investments.

Due to price decreases and interest rate decreases, invesotrs can now buy property in certain areas of the San Francisco Peninsula with 20% down and have a break-even cash flow. This was impossible two years ago.

In more expensive areas, the numbers are also better than they were two years ago but will require 30% to 35% down.

I have contacts with real estate brokers throughout the country – Dallas, Raleigh, Austin, Phoenix, Indianapolis, Sacramento, San Diego, and the Bid Island. If you are looking for wloer downpayments with greater cash flow, these areas are worth a look.

And do not forget, you can use 401(K) and IRA funds to purchase real estate so if you are tired of stock market gyrations, this is an option to consider.

What does Zillow Q4 2008 report say about the local market?

During my 31 years in the real estate business selling properties up and down the San Francisco Peninsula, I am often asked what is so special about Menlo Park or Palo Alto or Los Altos?

Why are homes more expensive in these areas compared to San Carlos (my home for the past 23 years), Redwood City, Belmont, and Mountain View?

The data below taken from Zillows Q4 2008 reports for the San Francisco MSA and the San Jose MSA may give an answer.

On a quarter Q4 to quarter Q3 comparision:
Menlo Park home values up 1.2%
Palo Alto home values down -0.4%
Los Altos home values down -2.9%
while Mt. View is -7.1%, East Palo Alto is -16.7%, Redwood City is -8.4%, San Carlos is -7.3%, and Belmont is -9.4%.

The year to year data is similar Menlo Park up slightly, Palo Alto and Los Altos down slightly, and the other cities down a fair amount ranging from -4.9% to -37.3%.

As I have told my clients “when times are tough, the more desirable markets hold up better”.

But for those doomsayers out there, please note for EVERY CITY except East Palo Alto, the 5 year and 10 year annualized change are ALL POSITIVE. So even after two fairly tough years, home values in these San Francisco mid peninsula cities has gone up over the past 5 to 10 years.

Average increases over 10 years at about 6% per annum. East Palo Alto had a 10 year annualized increase of 5.3%.

A $500,000 property purchased in any of these cities 10 years ago – on average – would be worth $909,000 today.

Say this property was purchased with 20% down or $100,000 10 years ago, the current equity of $509,000 would represent a 17.67% return on the downpayment. This is a “broadbrush” calculation for illustration purposes.

Of course, if the market should continue down for another year or two, the 5 and 10 year annualized returns would be reduced. But I think this data does show the strenght of our local market in the worst economic conditions most of us have ever seen in our lifetimes.

The media often uses Zillow data to paint a bleak picture of the real estate market.
Using Zillow’s own data, I believe one can make reasonable arguments that our market is doing pretty good all things considered.

If there are any stock market guys out there, I would be interested to see 5 and 10 year annualized stock market returns after the current collapse.

Consider real estate in your retirement accounts. Want to learn more, just let me know.

What is happening in the San Carlos real estate market?

Where is the San Carlos real estate market headed? The next month or so should be telling.

The median list price in San Carlos increased slightly to $1,195,000.

Average price per square foot in San Carlos dropped to $559.

Average days on market increased to 106.

58% of the listings in San Carlos have a price reduction.

The current market action index for San Carlos is 15 – below 30 is considered a buyers’ market.

Below you will find chart showing market action index by price range over the past 6 months.

The price range is broken down into 4 quartiles:

Highest has median price of $1,574,500

2nd highest has median price of $1,299,000

3rd highest has median price of $1,074,950

Lowest has a median price range of $685,000

It is interesting to note that the strongest area of the market appears to be in the lowest price range of homes found in San Carlos, with the highest price range appearing to be the weakest.

All price ranges are still a strong buyer’s market.

I would interpet the strength of the lower price ranges to indicate buyers are taking this opportunity to buy homes on San Carlos – to get in the door so to speak.

If the lower price ranges continue to firm up, that will bode well for the overall market.

The sellers of these homes, once their home is sold, presumably will buy a move-up house.

Did you know you can buy real estate with your 401(k) or IRA funds?

With real estate values down, there are excellent buys in real estate for long-term investment – both here on the San Francisco Peninsula and elsewhere in the country. I have developed experienced real estate contacts in other areas of the country like Sacramento, San Diego, Phoenix, Dallas/Ft. Worth, Kansas City, Raleigh, NC, and elsewhere.

There are solid long-term investment opportunities available on the San Francisco Peninsula.

Would you prefer to have greater control over your retirement funds?

Would you prefer to invest your retirement funds in real estate – a tangible asset that people need for shelter?

Yes, real estate values in most areas of the country are down.
But I would submit that stock portfolios are down even more.

If you would like more information on investment opportunities and/or purchasing real estate with your 401(K) or retirement funds, please contact me for a FREE 50 page Q&A about self-directed IRA real estate investing.

I am happy to meet with you for a NO OBLIGATION consultation and explanation of the process.

San Carlos first-time home buyers – Opportunity Knocks!

I believe the current market provides an excellent opportunity for first-time buyers to purchase a home in a desirable mid-peninsula community. As a first-time buyer, the combination of low low interest rates and lower prices make a purchase at this time worthy of serious consideration. While it may be true that we are not at the bottom of the market, perhaps prices will drop another 5% or so. But over the long term, the present time is a buying opportunity.

For a first-time buyer – purchasing a home now provides a place to live – that they control – in an area they wish to live and raise their family- and the possibility of investment returns in the future.

For example, consider……

1983 Belle Ave., San Carlos is located in desirable Howard Park area of San Carlos – not far from Burton Park and Christmas Tree Lane aka Eucalyptuus and downtown San Carlos – not to mention close to St Charles, Brittan Acres, and Central Middle School. Current list price is $769,000 – down from its original list of $839,000. This home might of had a market value of $850,000 2 years ago. Property is listed with George Chopoff ReMax .

2 bedrooms 1 bath 1,070sf on a 5,000sf lot. Charming home – nice condition – good lot.

Let’s look at the numbers. These calculations are for illustration purposes and are accurate for the purpose of this post. A lender should be contacted for exact financing info including APR and a CPA should be consulted to determine tax savings in your individual case.

First-time owner occupant buyer:

$769,000 less 10% down ($76,900) leaves $692,100 loan.

$692,100 loan at 5.5% 30 year fixed including MMI has a $3,929 payment.

Add in $770 for property taxes and $75 for home insurance.

Total monthly payment is $4,775. Income (before tax) needed to qualify is roughly $13,640 per month.

So a couple making a combined gross income of $163,000 ($82,000 each) can buy this house.

Tax savings due to interest and property tax deductions assuming a 25% combined federal and state bracket result in tax savings of about $1,380 per month – leaving an after tax cost (rent equivalent) of $3,400 per month. Certainly, this will be an increase in the rent most people pay prior to buying. I would esitmate current rental value of this house at $2,400 per month. I could say the cost of owning this house is approx. $1,000 per month or $12,000 per year.

$12,000 is 1.56% of the total cost of the house.

So if the property appreciates even 2% a year over the next 7 to 10 years; a buyer would still be “ahead of the game”.

In addition to possible financial gain, an owner receives the emotional benefits of controlling their shelter – being able to fix the house up in a manner most appealing to them.

Even lower priced homes – east of el camino – can be found below $600,000.

So if you want to home a home in San Carlos, this is a good time to try.

As a 23 year resident of San Carlos, I can assure you it as the Chamber of Commerce says San Carlos is ”The City of Good Living”.

Follow me at www.twitter.com/SanCarlosCA for real-time listing updates sent right to your phone.

New Listings in Palo Alto, Menlo Park, and San Carlos

New Palo Alto listings within last 10 days

New Menlo Park listings within past 10 days

New San Carlos listings within past 10 days

Just let me know if you need further information on any of these properties or wish to personally view the homes.

San Carlos Condo/Townhouse 2008 Year in Review

56 condominiums in San Carlos, Californnia sold in 2008.

Average list price was $624,412 and average sales price was $609,113.

This represents a 97.55% sales price to list price ratio.

Average sales price per square foot was $484.

Average days on market – list to contract date was 65 days.

Here is a list of all condominiums and townhouse sold in San Carlos in 2008:

New mixed-use condominium project coming to downtown San Carlos

The project at 1001 Laurel San Carlos is nearing completion.

90 residential units plus retail space plus fitness center and interior courtyard.

Underground parking.

Units will range from 1 bedroom 1 bath to 3 bedroom 3 bath.

4 story building.

The burning question I have is what will the pricing be?

Only time will tell. Stay tuned and I will keep you posted.

As a 22 year resident of San Carlos, it is a great town and I believe 1001 Laurel will be a nice addition to our ever-more bustling downtown.

Plus it is right down the street from my favorite place to get a margarita – The Catina – try the pomegranite (sp?) margaritas!

San Carlos Tour January 13, 2009

San Carlos Tour is a little slim this week.

I expect more new listings each week moving forward.

Single family homes

$1,145,000 – 117 CRESTVIEW DR

$798,500 – 1116 CEDAR ST

Condominiums and townhouses

$529,000 – 3319 LA MESA DR UNIT 4

$638,000 – 402 PORTOFINO DR UNIT 3

Just let me know if you would like to see any of these properties.