San Jose Real Estate * REALTOR ® * Richard Gonzalez

Click Player to see video

Sales activity lighter than 2009

Santana Row area neighborhoods continue to show lower activity after the homebuyer tax credit expired in April. Buyers continue to pay list price on homes sold in these neighborhoods but the activity has been half of 2009 levels. In 2009 there were 114 sales compared to 54 in May – July 2010.

Conventional is king

Conventional sales were the predominant financing method used to purchase homes following the same pattern of 2009. FHA continues to be in the least used or accepted financing method by sellers when reviewing offers. Buyers should consider conventional loan products to increase their chances of getting an accepted offer.

Median rises in 2010

2010 median sales prices was $610,000 compared to $533,500 in 2010. Buyers also had more negotiating power in 2009 to 97% of original list. 2010 buyers are having to pay slightly more to 102% of original list making it 5% more expensive to buy a home in these neighborhoods.

Yosemite – John Muir Trail 2010

This blog post is meant to be more of a confession instead of  your usual market update. It’s meant to be my re-commitment to providing news, views, and market information after a two month hiatus.

What did I do and where was I?

Good question, the best way to describe it is that we all go through our own valleys and mine was mostly focused on the business at hand and accomplishing some personal and physical goals. Blogging has been a joy but it does come with it’s challenges. To meet those challenges I spent time climbing Half Dome, reading, and praying.

Written Values

Perhaps the most challenging for me is consistency. Consistency comes from committing to my values. I know what my values are and I live my values every day. Until now the one thing I didn’t have was a list of written values and here is a compressed version of  my list. (Still is and will always be a work in progress)

Why am I sharing this?

Ben Franklin had a written list of values from an early age and look at his impact on this country. You see I love my career in the real estate industry but it will mean nothing to me if I can’t look back and know that I made a difference in someones life.

We live in a “i” society and as such I choose to forgo doing the popular things and instead doing the things that are right.  It was during my recent trip into the Yosemite back country that I really felt I was going down the right path spiritually, emotionally, physically, as a father, and in my business.

The higher you climb in life and push through those challenges the more you are rewarded.

Book Recommendation: The 10 Natural Laws of Successful Time and Life Management – Proven Strategies for Increased Inner Peace – Hyrum W. Smith

California took a bold step today in helping those homeowners in default by allowing taxes owed to the state to be forgiven through 2012.

As mentioned in my blog a few days ago and now the Governor says he will sign the bill as reported by the Sacramento Bee.

“Primarily, the bill affects people who had debt forgiven as they lost homes in foreclosures, short sales and deeds in lieu of foreclosure last year – and through 2012 now. Also affected: those who got loan modifications that cut the amount they owe the bank.”

Read more: http://www.sacbee.com/2010/04/09/2666095/california-wont-tax-forgiven-home.html#ixzz0kdhKy8yh

Incredible as it may seem the $8,000 Federal tax credit can be combined in April 2010 for a credit up to $1,800 as a result of the recent California legislation.

Window of opportunity

• Open to home buyers in the state of California.
• Must be in contract before May 1st 2010
• Must close between May 1st and June 30th 2010
• Non-First time home buyers will still be eligible to receive up to $16,500

“The new California law applies to certain purchases that close escrow on or after May 1, 2010 (see Cal. Rev. & Tax Code section 17059.1(a)(4)).  California law generally allows buyers of never-occupied properties to reserve their credits before closing escrow, but buyers seeking to combine the federal and state tax credits will not be able to satisfy the timing requirements for such reservations (see Cal. Rev. & Tax Code section 17059.1(c)(1)(A)).  Other terms and restrictions apply to both tax credits.”

~ California Association of REALTORS Legal Department

I uploaded the latest sales data to youtube. Please take a moment to watch this three minute video.

January 2010 sales data for Santa Clara County.