California Real Estate No Longer California Dreaming
February 1, 2010
“Locally the median price has dropped about $100,000 in 2007 and is expected to drop another $100,000 in 2008,” said the central coast California realtor, “but we are in better shape than many areas.”
Not too many years back realtors were knocking on doors trying to find listings because property values were shooting up. It was reminiscent of Tokyo real estate in the 1990’s, a time when any fool could make money in real estate.
In January California home foreclosures equaled the number of sales, a daunting figure if there ever was one.
For a while the getting was good and any investment today would be worth more tomorrow. In that kind of environment sub prime lending — lending to the marginally credit worthy — began to flourish. Even the lower paid and unskilled could jump on the real estate boom and improve their net worth and equity by signing on the sub prime dotted line.
Call it greed, flipping, speculation, gambling or just bad business; call it any of those things but it has led to the worst housing crisis California has faced. The crisis is particularly bad in California’s interior. Upscale coastal areas such as Santa Cruz, Carmel, and Monterey have had a steep decline in housing values but because of the demographics and desirability, the decline has not been as severe and is not expected to last as long.
“We only have about a nine month inventory which is not bad,” said one Scotts Valley realtor, “some places like Miami have over a three year inventory which means that it will take years for that market to recover. Part of that is we are in a ‘no growth’ area so there isn’t a great influx of new homes on the market. We’re lucky.”
That is because the most desirable areas have very few first time home buyers. The upwardly mobile real estate treadmill is particularly hard when the median home price exceeds $700,000. Many of these “outside” buyers do not need financing.
Upwardly mobile locals are not buying up homes in Pacific Grove and Capitola. Non-locals from other parts of the United States and foreigners make up the bulk of home buyers. And as such, the demographics and “look and feel” have changed. No longer is Santa Cruz the hippie haven for artists; all the starving artists couldn’t afford to starve anymore and have moved out. What was once the bastion of far left liberal thinking is now slowly turning into a techie “Arnold Republican” free zone.
In towns like Watsonville and Stockton banks and construction companies are bringing in buses for foreclosed housing auctions. Rumors are rampant about cheap homes and rumors fuel speculation; what home buyer wouldn’t like a 50% discount?
“But buyer beware” said one realtor, “the truth is both the banks and construction companies are sending in their own ‘dummy bidders’ to drive up the auction price.”
“They know what they want to get for the house and they drive up the bidding to get to that price. The banks and construction companies can’t lose: they either get their price or don’t. They are not going to take it on the chin…at least just yet.”
Part of the boom in the interior was caused by Bay Area commuters looking for more affordable housing that they could pay for with high paying Bay Area jobs. But as gas approaches $4 a gallon commute costs have skyrocketed. So the poor commuter is not only seeing their home equity plummet but their commuting costs are constantly going up. For many Bay Area commuters, buying in Tracy or Merced was a big mistake.
Even many of the Latino immigrants have decided the American Dream is no longer for them. Most can tell of a cousin or brother that signed on the subprime dotted line and then walked away when they could not afford a $3800 a month mortgage.
Many of these immigrants are now saving up and planning to return and buy property in Mexico, which in many areas of Mexico is affordable if one earns U.S. dollars. Mexico is the next real estate boom. The California real estate industry itself is in a transition as it is going through a decline, consolidation and subsequent “shake out.”
“The hobby and part time realtors have closed up shop and gone back to what they were doing before the boom,” said one Aptos realtor, “some are getting bought up by the bigger players who are better positioned to weather this storm.”
We’ll see how this plays out. Just remember it has taken Tokyo a good decade for the real estate market to correct itself. It’s just not clear if California actually has a decade to make that correction.
Jack Deal is the owner of JD Deal Business Consulting, Salinas and Santa Cruz, CA. Related articles may be found at http://www.jddeal.com/blog/real_estate and http://www.freeandinquiringmind.typepad.com
Article Source: http://EzineArticles.com/?expert=Jack_Deal
David Lyng Presents…the Scotts Valley area
February 1, 2010
Take an online tour through the town of Scotts Valley, California with host Romney Dunbar.
Duration : 0:5:57
Making Money in Today’s Real Estate Market
January 27, 2010
The real estate bubble may have burst, but the fact remains that real estate is still an attractive investment. You just have to be able to look at the advantages that are presented in the down economy.
Some say that the real estate market is in a depression. Others call it a recession. Others are in complete denial. The third parties are usually those in politics or real estate agents. Anyone who is trying to sell a home knows it is bad out there. But the good news is that as bad as it is for sellers, it is a great market for buyers.
Anyone who has money to invest should invest part of it in real estate. There are three different reasons for this: The interest rates are rock bottom and not likely to get any lower, the housing prices are lower than ever and the market will eventually rebound. You can still make money today in real estate; you just have to look at the property as a long term investment instead of the quick buck.
The days of flipping real estate properties that are accumulating so fast in value that you cannot keep up with them are gone for now. They will most likely return, but not for a while. Now you have to work with what you have which is a real estate market in which there are a lot more sellers than buyers. This puts the buyer in the driver’s seat.
Along with the fact that it is a buyers market, you can also work with the fact that the mortgage rates are lower than ever. So you have an opportunity to buy low because the market is saturated with homes for sale and not enough buyers as well as an opportunity to get a good loan package because the rates are low and lenders are dying to make loans so that they can stay in business.
If you have money to spend on real estate, you are in a great situation today in the real estate market. Look at the real estate investment as a long term investment instead of a short, get rich quick scheme. You can make money when the bubble begins to grow again, and it will. The real estate market goes up and down like the stock market. It will rebound.
You can make money today in real estate but you have to make smart choices. Purchase property in areas where the housing prices have remained stable. Also look at the growth in your area. Where is the next boom likely to hit? This is speculation, but if you track trends in the real estate market and do a little bit of a study, you can see the next area where developers will likely target. This is a good place to buy real estate, even if it is just a vacant lot.
Real estate is usually always a good investment, especially if you plan to live in the property. However, it should be looked upon as a good long term investment and not a way to get rich quick.
Heather Seitz
http://www.articlesbase.com/business-ideas-articles/making-money-in-todays-real-estate-market-428349.html
How Real Estate Preconstruction Can Be A Great Profit Maker
January 16, 2010
If you are interested in buying real estate there are many ways that you can go about doing this.
(there is a free ebook, that shows you how you can make $50,000 per deal from preconstruction for you to download at the bottom of this page)
Not only can you buy new homes, but there are also other options available such as rental and commercial properties.
But even on top of all those options, there is still one that you may have forgotten about.
Have you ever heard of preconstruction real estate? If not, you should look into what this sector of the industry has to offer.
When it comes down to it you may be able to make a lot of money off of preconstruction real estate, or simply find a home that suits your every need.
The good thing about preconstruction real estate is that it is not hard to understand.
Generally speaking, preconstruction real estate is pretty much exactly what it sounds like. This is real estate that you can buy before it is ever built.
In other words, instead of buying a home that is already standing, you will pay for something that is still in the preconstruction stage.
While this may not seem like a good idea to you, there are a lot of people in today’s real estate world who are moving in this direction.
No matter if you are an investor or simply looking for a new home you may be able to benefit from what preconstruction real estate has to offer.
The first thing to know about preconstruction real estate is that it is not as widely available as homes that are already standing. The reason for this is that the number of built homes far outnumbers the ones that are going up.
But with that being said, developers are always looking to build new plans of homes so that they can make their money as well.
This is where you come into play and find preconstruction real estate that is for sale.
The best way to locate these properties is to search the real estate section in your local paper. This will give you information on a number of different preconstruction real estate sales in your area.
The biggest advantage of preconstruction real estate is that you will have the ability to buy a home that has yet to be lived in.
This works to your advantage because you can be ensured that the home is in perfect working condition when you move in.
This benefit is what draws so many people towards preconstruction real estate year in and year out.
All in all, preconstruction real estate is a great option to consider if you are in the market.
You might as well look into what this sector of the real estate industry has to offer. You may find out that this is the perfect option for you.
This has often been one of the most profitable ways to deal in real estate.
Geri Mason
http://www.articlesbase.com/real-estate-articles/how-real-estate-preconstruction-can-be-a-great-profit-maker-96668.html
240 Bethany Dr Scotts Valley CA 95066
January 15, 2010
http://homesite.obeo.com/562675?refURL=youtube
Contact: Diana Mercer
David Lyng Real Estate Capitola
(831) 234-1346
diana@isellsantacruz.com
for more information about this home.
Wonderful Sunny Home in Scotts Valley!
Great 2 story home in sunny Scotts Valley. Walking distance to school & park. Home is sunny & bright. The great room has glass sliders to private decks & lovely gardens. Cathedral ceilings, bamboo and Pergo type floors. The kitchen is spacious with tile counters, breakfast bar & adjoining living room. Master suite is sweet with the master bath with custom tile floors, separate shower & tub! Perfect for relaxing in your tub! Deck living and front gardens. 2 car garage & more! Come visit me!
Duration : 0:2:10
Recession not over in Scotts Valley California USA
January 14, 2010
commercial real estate and small businesses SME getting hit very hard Jack D. Deal Business Development
Duration : 0:0:40
Real Estate Leads 101: it Takes Time!
December 22, 2009
Online lead generation companies are a huge source of real estate leads for Realtors and a great resource to help grow an agent’s business. However, many lead generation companies are constantly slammed by agents who have used the service and had little, if any success with the real estate leads provided. In my experience, this dissatisfaction often comes because the agent has unrealistic expectations of the service and little to no knowledge on how to develop a good follow up campaign with their real estate leads.
The first thing you need to realize as an agent is that lead generation services aren’t magic listing trees. Typically you shouldn’t expect to get listing after listing from a service. Most services work on the following basis: they provide online marketing in the agent’s specific area, the natural result of which is homeowners in need of information filling out lead contact forms. This contact form is sent to the agent in the area, and that is their “lead.”
So what does this mean exactly? W ell, it means the real estate leads provided will be people with different types of real estate needs and in different stages of the process. If an agent signs up for a service for a 3 month contract and expect a listing within the first month, they are likely to be disappointed. Immediate listings with real estate leads DO happen, but they aren’t the norm.
Realty Times analyzed more than one million real estate leads captured and cultivated online and then compared them to public records of home sales from across the country. They found that only about 7.3% of consumers sold their home within 3 months of filling out a lead form, but the percentage grew to 22% after 12 months and to over 40% after 28 months. This means that purchasing real estate leads online is a LONG TERM investment, not an immediate source of money. Real estate leads generated online MUST be aggressively followed up with to convert them to clients!
Therefore, as a real estate agent, you must look at lead generation services in the same light as other marketing endeavors. When you implement direct mailing campaigns and send out information several times a year to 5,000 homes, do you expect to get 5,000 listings within the year? No. Direct mailings are more likely to result in accumulation of real estate leads over the next year or two which you then must nurture into clients looking to buy or sell.
There are typically four types of real estate leads received by online lead generation companies: buyers, sellers, refinancers and fakers. Buyers may be in different stages of the process, as may sellers, so you may have to follow up for 2 years before actually getting their business, or you may have a listing within 3 months. It depends on where the consumer themselves are at in the process. Obviously buyers have a great potential – you may be able to sell one of your listings to them and if they need someone to list their current home, you’ve got a double whammy of a lead. Same goes with a seller looking to list – maybe they’ll be interested in purchasing one of the homes you already have listed, and if not, perhaps they’ll still consider you for a buyer’s agent to represent them when they purchase a new home. Again, a double whammy of a lead.
Just because the seller isn’t going to sell for 2.5 years doesn’t mean you should drop them – on the contrary, you now have 2.5 years to get a leg up on the competition by working closely and sending the lead any information to make their real estate process easier. It all comes down to an agent’s sales ability – lead generation services can get your foot in the door, but it’s up to you to sell yourself to your real estate leads.
Often real estate agents complain the loudest about getting real estate leads of people looking to refinance or get a home equity loan. “These aren’t real estate leads, I’m not a broker, what am I supposed to do with this lead, it’s worthless,” they say. That is absolutely FALSE and the wrong way to look at these leads. First off, any real estate agent worth their salt should have a close working relationship with one or more mortgage brokers to refer these type of leads on to. In the spirit of reciprocation, the mortgage broker should be referring buyers and sellers back to you!
Even before you refer the refi lead to a broker, you need to do some work on your own. Talk to the lead, get to know them and their situation, educate them in anyway possible on refinancing as opposed to buying or selling. Sometimes these leads can be converted to listings, depending on what their situation is and what path makes more sense for them. Even if they do wind up going to your mortgage broker, that’s still one more homeowner out there that knows your name and how willing to help you were – they may wind up needing you a few years from now or referring their family and friends to you. You never really know what could come of your real estate leads unless you try.
Last but not least, we have the fake real estate leads – people who fill out information forms but give not ONE good piece of contact info. A lead that has a fake name, number, email and property address is admittedly, a bad lead. There’s no way to contact the person and find out who they are. However as long as even ONE piece of information is correct (name, phone number, property address) then a little detective work with public records can help you get to the bottom of the lead. Agents who consider a lead bad just because it has a fake name will wind up missing out on MANY commission checks.
The best way to have success with real estate leads generated online is to have a strong follow up campaign. Give the lead service a chance to work for you, but be realistic – not all leads turn to listings and not all listings happen overnight. Patience and persistent and consistent follow up is the true path to success with real estate leads and online generation companies. It just takes time.
Ashley Lichty
http://www.articlesbase.com/marketing-articles/real-estate-leads-101-it-takes-time-137328.html
OFF MARKET – 109 Glenwood DR in Scotts Valley CA presented by Dan Doerksen & Debbie Lantis, Realtors
December 21, 2009
For more information contact:
Dan Doerksen or Debbie Lantis, Realtors
(831) 345-4893 or (831) 566-6260 debbie@debbielantis.com
dan@santacruzhomes101.com
A perfect storm is described as all the elements coming together at one time to create a storm beyond
belief. While this home has no sense of a storm, all the elements have come together to create a value that is beyond belief. Study the information and decide for yourself:
The home is within the Scotts Valley School district and is walking distance to both the Scotts
Valley High School and Vine Hill Elementary.
It is located on an oversized flag lot and very near to one of the best local markets in the area,
plus easy access to the freeway.
When it comes to well maintained homes this one tops the list. From the well manicured yard to
the attention to detail in every room of the home, you’ll be pleasantly surprised.
Not enough elements? Here are more features this home offers:
* 3 Bedroom/ 3 Bath
* Almost 2500 square feet of living space
* Wood Burning Fireplace with a beautiful wooden mantle
* Gourmet Kitchen with full pantry
* Breakfast Bar
* Double Paned Windows throughout
* Large Master Suite with walk in closet
* Master Bath with soaking tub and separate shower
* Above ground swimming pool with surrounding deck
* Lawn area in backyard
* Patio and BBQ area
So, come and enjoy superb schools, beautiful weather, and a fabulous home all in one setting.
Duration : 0:2:6
OFF MARKET – 5344 Scotts Valley Drive in Scotts Valley CA listed for sale by Lori Wantland, Realtor
December 19, 2009
For more information contact:
Jan Wagner & Lori Wantland, REALTORS®
(831) 423-6700
jansantacruz@cruzio.com
http://www.davidlyng.com
Duration : 0:1:54
Scotts Valley Real Estate
November 25, 2009
www.PeterVerbica.com. Scotts Valley Homes for Sale. Monterey Colonial estate with ocean view, next to putting green at Pasatiempo Golf Course. 5 Bedrooms, 7 Bathrooms. Separate office building garage & shop area.
Duration : 0:1:54