What Buyers Don't Want

This is pretty much what buyers want in the Gilroy area. Tell us what you don't want in your next home.

Home for Sale - 7471 Miller Avenue, Gilroy

Why Home Sales Slipped in March

By Gino Blefari, President & CEO, Intero Real Estate Services, Inc.

If you've been following housing market news this year, you may have been surprised by the latest home sales numbers to come out this week. Sales of existing homes stalled at 4.92 million, dropping 0.6% in March from February.

But what about this hot spring we've all been anticipating? What about the great recovery and growth period we're supposed to see in 2013? What's going on here?

The problem is lack of homes. There's plenty of demand from buyers, but just not enough to choose from on the market.

Some areas are experiencing multiple bids, which can frustrate buyers after they've been outbid a handful of times and turn them away.

And in some cases, we see sellers being affected as well. For those in tight markets, they may not feel confident enough to list their homes until they know for sure they'll be able to find a new one to move into.

Despite the decline in March sales from February, home sales were still 10.3% higher than the same month a year ago, marking the 21st consecutive month of year-over-year increases. That's good news, and a good indicator of how the market is trending in the big picture.

Demand is still strong, according to the National Association of Realtors, which reported buyer traffic is 25% above a year ago. But the drop in available homes has put upward pressure on prices. And some buyers are getting frustrated and priced out.

The national median home price was $184,300 in March, 11.8% higher than a year ago. The increase was the highest gain since November 2005.

Total housing inventory was up 1.6% to 1.93% homes for sale, representing a 4.7-month supply at the current pace. For-sale inventory was 16.8% below what it was a year ago, showing how lack of supply is truly impacting the pace of sales and overall market activity.

What happens next?

At the rate things are going, we can likely expect more price increases, driven by continued tight markets with some increases in new home building to balance supply.

At some point, prices will reach a tipping point where more sellers are able to sell because values will meet their needs.

Until then, buyers need patience and the ability to act fast; sellers need motivation or the right price points to get out from an underwater mortgage. We have an interesting second half of the year ahead!

How To Prepare Your Home For The Photo Shoot

You’ve heard it before, you only have one chance to make a first impression. A prospective buyers 1st, 2nd and sometimes 3rd impression of your home is online, so the photos taken of your home really set the tone for your sale. The photos need to rock and should always showcase your home in the best light possible. No matter how picture perfect your house might look to you, you should consider the following tips before having your home photographed:



Home Exterior – walk across the street to your neighbor’s house and take a look at your home. Do you like what you see?

1. Remove cars from the driveway, front of house and garage.
2. Hide recycling and trash receptacles, garden tools and hoses.
3. Have lawn cut, mulched and add flowers if weather permits; remove dead anything.
4. Have windows washed and remove screens if possible.
5. Power wash walkways, patios, siding if necessary.
6. Neatly arrange patio furniture, uncover barbecue so scene is set.

Home Interior – take your time and go room to room to enhance the look and feel of each room.

1. Replace all burned out light bulbs.
2. Clean and neaten all closets including removal of all items from the floor.
3. Set the scene in each room by arranging furniture and accessories; remove excess (you may need a stager) to make rooms look open and large. Remember less is more!
4. Have carpets cleaned and/or stretched if needed. Replace capret if needed.
5. Touch up paint.
6. Remove excess art and photos, but not all. You are living in the house after all!
7. Clean off counters in kitchen and baths; add fresh looking towel sets to bathrooms.
8. Make sure all beds are made, clothing and personal items are put away neatly.

What have you noticed at open houses you have visited? What did you notice that left you with a negative feeling? Be sure to take care of that in your own home.

5 Reasons Selling A Home Now Makes Sense

Many California homeowners are currently waiting to put their home on the market. The thought process usually involves traditional thinking that everything always looks best when the grass is green and flowers are in bloom. A home will surely be easier to sell if that is the case.

This is true, but your competition will also be using the same logic. Every year people wait until Spring to put their homes on the market. All at once there will be an influx hitting the MLS. In Gilroy there are compelling reasons why now is the time to get your home ready sooner rather than later. Here are five reasons why you should list your Gilroy home for sale now:

1. Home Inventory at Record Lows - The inventory of homes for sale in the area have dropped substantially over the last six months. The number of homes for sale in most communities has fallen to lows we have not seen for many years. When home inventory levels drop home prices tend to rise, and that has certainly been the case in Gilroy. This becomes even more prevalent in a popular neighborhood where buyer competition is high. Many times there are bidding wars. We have already started to see this trend on homes hitting the market now.
2. Demand is Up - Contrary to what some people may think there are lots of buyers out in the market place right now looking for a home to buy, and having their financing all lined up and ready to place. Some are first time buyers who are looking for a place to build some equity. There are others who see an opportunity to move up in the market as home prices have dropped substantially since the market peak in 2005.
3. Renting vs. Buying - The cost of renting versus buying a home has become the same and in some cases it is actually less expensive to buy a home. Rents in many areas have steadily increased over the last five years while home prices have dropped. If you factor in the potential benefits of building equity and some tax breaks with home ownership, you can see why it makes sense.
4. Interest Rates Going Up - Interest rates are at record lows at the moment and most economists predict they won’t stay that way for too much longer. While interest rates are not predicted to move up dramatically, every time they inch up a half a point they can knock out a percentage of first time home buyers out of the market. The first time buyers fuel the rest of the market like dominoes.
5. New Construction Coming Back - Builders are starting to get back into the fray. When builders are actively building homes it becomes harder for some who are selling their used homes to compete. There are many that will jump at the chance to have a shiny new home with all the bells and whistles customized to their specific needs.

Bonus Reason to List Now - If you’re one of the many homeowners who are hanging on with a negative ownership position, where you owe more than your property is currently worth, and don’t know where to turn, this is your best opportunity to move on. Short sales are being negotiated with lenders in far shorter timeframes than in the past, and lenders are recognizing that action needs to be taken. If you have exhausted all your options and your finances are drained, it’s time to move on.
In summary, if there are no time constraints on your part you should consider moving up your timeframe for putting your home up for sale. Our Gilroy market is extremely hot. Morgan Hill is the same, and Hollister is very close behind. Get ahead of the Summer competition and list your home for sale today. Contact Team Patereau to talk about the right price and the right time to sell your home. 

The Science of Which Day to Debut Your Home for Sale

By Gino Blefari, President & CEO, Intero Real Estate Services, Inc.

Any good real estate agent knows that listing and selling your home can be a science. From finding just the right price point to attract offers to staging and curb appeal, there are many details that when strung together meticulously can add up to a smooth transaction in which your house sells at the best price point in the shortest period of time.

With all of that in mind, a good question on sellers’ minds often is, “What is the right day of the week to list?”

It’s a valid question because many years of experience shows us time and again that a listing tends to grab the majority of attention on the day it debuts. The Wall Street Journal recently ran a story citing Redfin research that found that Friday apparently is the best day to list your home. How did they come up with that? They found that listing a home on a Friday versus a Sunday, which they found was the worst day to debut, could mean a difference of nearly $5,000 on a $500,000 house.

They also found that homes listed on Fridays sold in an average 81 days – the fastest of any other day of the week in their sample.

Why is that?

It almost seems counter-intuitive to say that debuting on a Sunday is the worst day. After all, Sunday is the day when most buyers are out viewing homes and visiting open houses.

But in reality, Sunday listings tend to sit around a few days before buyers start setting up their home tours for the following weekend. (Because by the time Sunday comes around, they’ve already put their viewing schedules together.)

Fridays are better because anyone planning Sunday tours is likely either starting or finishing up their list of homes late Friday or Saturday. And any new listings are going to pop up on their radar right away.

What’s the key take away from this info?

Well, first off always remember that every market is different and fluid.

For buyers in competitive markets, it’s a good reminder to not overlook those Sunday listings. Have your agent run through the MLS before you start your tour to see if something new came on the market. It may be worth tacking on a tour on Monday if you can squeeze it in.

For sellers, while the notion of the best day to list is interesting, it’s important to remember that there are many other factors that affect your sale price and time it takes to close. It’s more important to price right and have your home in the best shape possible when you hit the MLS. No theory on which day works better is going to help you if you don’t have these two things right.

Once you have those down, it doesn’t hurt to ask your agent for insight on which day has worked the best in your current market.

Contact Team Patereau for their insight. Rick and Susan will help you with which day to list, as well as every step of your real estate transaction.

5 Reasons Selling A Home Now Makes Sense

Many home owners are currently waiting until Spring to put their home on the market. Their thinking goes along the lines that everything always looks best when the grass is green and flowers are in bloom. A home will surely be easier to sell if that is the case.

Every year many homeowners wait until Spring to list their home. Here in Gilroy, Spring comes earlier than other areas. With the rains that have greened up our hillsides, now is the time to get your home listed. Here are 5 reasons you should list your home for sale NOW!

Home Inventory at Record Lows
The inventory of homes for sale throughout California have dropped substantially over the last six months. The number of homes for sale in most communities has fallen to lows we have not seen for many years. When home inventory levels drop, home prices tend to rise. This will become even more prevalent in a more desirable neighborhood where buyer competition is normally high. There are more than likely going to be bidding wars on every home listed.

Demand is Up
Contrary to what some people may think there are lots of buyers out in the market place right now looking for a home. Some are first time buyers who are looking for a place to build some equity. There are others who see an opportunity to “move up” in the market as home prices have dropped substantially since the market peak in 2005.

Renting vs. Buying
In this area, the monthly payments on a purchased home are very close to the same as renting when tax benefits are considered. Rents here have steadily increased while home prices have dropped. Home ownership makes complete sense if a down payment can be attained.

Interest Rates Going Up
Interest rates have begun to inch up from their historic lows, and predictions are that they will continue the slow upward movement.

New Construction Coming Back
In Gilroy builders are starting to get back into the fray. When builders are actively building homes it becomes harder for some who are selling their used homes to compete. There are many that will jump at the chance to have a shiny new home with all the bells and whistles customized to their specific needs. When new construction is limited, previously owned homes are all that there is for buyers to consider.

As you can see, if there are no time constraints on your part you should consider moving up your time frame for putting your home up for sale. All the conditions are optimum for sellers to get the most they possibly can from a March sale. As always, Team Patereau would like the opportunity to discuss listing your home. We will help you every step of the way. Contact us today!

Intero Real Estate Services Finds the Luxury Market Hot Through the Winter

Here’s a press release from our Intero corporate office about our high-end luxury listings and how we handle them. Call Team Patereau about your luxury property. We’re trained and ready!

Multiple luxury homes sold over the holidays through Intero Real Estate’s luxury division.
CUPERTINO, CALIFORNIA (January 27, 2013) –The holidays are traditionally a quiet time for buyers and sellers of luxury homes, but Intero Real Estate Services found different this season closing on several Prestigio listings recently. Intero’s luxury property marketing program, Intero Prestigio has been in effect since last March and has definitely seen much success in its first year. “Case in point, year over year through November, Intero registered an increase of 73% of listings sold over $1.5M, the entry level to tier 1 of the Prestigio program,” says Alain Pinel, Senior Vice President/General Manager Intero Prestigio international. “It’s been a strong year for the luxury market and we’re looking forward to 2013 being even better,” says Gino Blefari, President and CEO of Intero Real Estate Services. “The Prestigio program has helped us to make our mark in the high-end.”

Four of the most notable homes sold included 16350 Matilija Drive. Located in Los Gatos, the property is a modern architectural masterpiece. Sold for $6,500,000, the home includes a breathtaking view of San Jose to San Francisco through its floor to ceiling windows.

The second home, listed by Cathy Jackson of Intero’s Los Gatos office and Karen Black of Intero’s Willow Glen office, sold for $6,000,000. 221 Jackson Street located in Los Gatos is approximately 10,700 square feet of Mediterranean charm on a 1.7 acre lot. The property includes an electronically gated entrance, 3 car garage, wine cellar, exercise room, mahogany paneled library, and cabana.
The third property at 1171 Ruth Drive was also listed by Cathy Jackson of Intero’s Los Gatos office alongside Kris Myers of Intero’s Willow Glen office. The property which is located in San Jose’s extremely desirable Willow Glen neighborhood sold for $1,550,000. Custom built, the home is full of exquisite details including beautiful flooring, high ceilings, and extensive molding with quality finishes.

The fourth home of mention closed in the beginning of January to kick start 2013. 388 Marich Way located in Los Altos sold for $2,416,000 by Dominic Nicoli of the Intero Los Altos office. This custom Mediterranean style home was built in 2005 with every detail considered. A 5 bedroom, 4.5 bathroom home with approximately 4,345 square feet on an approximate 10,200 square foot lot, features an enchanting courtyard, beautiful marble staircase, gourmet kitchen, luxurious master retreat and three courtyard terraces.

When asked about her experience with the Prestigio program, Cathy Jackson states, “It’s quite amazing what [agents] can take advantage of through the Prestigio program. The broad marketing plan, which includes extensive international exposure, was definitely a factor in our ability to sell quickly. Having everything outlined from the beginning helped to keep our clients in the loop regarding what marketing was taking place when. Intero agents are lucky to have this unique program to take advantage of.”

To see more homes like these and learn more about Intero Prestigio visit www.interoprestigio.com.

Thanks for a Great Open House!

Just wanted to publicly thank all the people who came out to our Open House this week-end. We were open both Saturday and Sunday and were very busy. On Saturday we had 33 groups visit on their own, and 10 agents who brought clients. On Sunday we had 20 groups and 6 agents with clients. That’s a lot of exposure for the property. Enjoyed talking to everyone who came, and a great big thanks to our Sellers who had their house in tip-top showing condition.
We are going to hold the house open again on Saturday, February 2nd. We’ll be there from 1:00 to 4:00. After that we will be looking at offers on Monday, February 4th. Hope you get a chance to see this great house.

New Listing: 1223 Pappani Drive, Gilroy

 

Wonderful, well-kept single family home in Gilroy. Come and see it this week-end with Open House both Saturday and Sunday from 1:00-4:00.

It’s time to get your property on the market