Sylvia Brugman Pacific Grove CA Real Estate Blog

Why Sit On The Fence…????

Sylvia Brugman — Wed, 13 Jul 2011 22:31:07 +0000

Why not live in your own home? Why this is the right time to buy a home on the Monterey Peninsula; Pacific Grove, Monterey,Carmel, Carmel Valley or Pebble Beach.

1) Homes are more affordable. Prices have come down anywhere between 28%-45%

2) Rates are historically low. We keep hearing about how rates will start creeping up, but so far..not really. I have a quote in front of me for 30 year fixed conforming, no points 4.625%. Not bad.

3) Timing is right. The conforming loan limits will be reduced on Oct.1, 2011. This will reduce both the affordability and availability of many home buyers.

4) Homeownership is still the American Dream for nearly 9 out of 10 Americans.

5) Financing IS available for buyers with stated income, at least 3.5% down payment and a good credit score

How about frozen yogurt

Sylvia Brugman — Sat, 11 Jun 2011 17:24:35 +0000

Thanks all for commenting on my “coffee shop” blog. It is important to support our local merchants! Yesterday I spoke to a granddad and later met a dad, both local and both spend a considerable amount of time with their (grand)kids, about places to take them for dessert. Neither of them was aware of MYO! That is THE place to take kids (as excuse to go yourself I might add). MYO is a self serve frozen yogurt shop, flavors include cappuccino, Orange Julius, cheesecake supreme, to name just a few. Toppings are plentiful, cookie dough, mochi, nuts, fresh fruit, Swedish fish and as you can imagine tons more. 2 locations on the MontereyPeninsula; 685 Cannery Row and 491 Alvarado, Monterey.

Enjoy

The Sky Is Not Falling

Sylvia Brugman — Thu, 09 Jun 2011 00:09:38 +0000

So many of us giggled nervously as we thankfully avoided the end of the world a couple of weeks ago. But judging by the continued “end of the world” type coverage the Case-Schiller housing study got this week, maybe we are nearing the end.

Yes. I am joking, but I am amazed at the attention this report gets. It covers 20 markets, yes only 20, and that is just one of its many flaws. Yet many consider it “the be-all-and-end-all” economic indicator that defines our entire national housing picture. As we know, all real estate is local, and it is unfortunate that the reporting on a 20-city “national” index can have such a jarring impact on otherwise rational people.

Look at some of the headlines the other day:

“Home prices at lowest point since 2006 bust”

“Home values continue downward churn”

“No relief in sight’ for falling home prices”

And even in paradise – Maui- the front page headline in the paper screamed “Crash Spreads.” And Maui isn’t one of the 20 markets. In fact the nearest market covered is San Diego, a mere 2500 miles away!

Shawn Daly, an agent with Coldwell Banker Residential Brokerage in Evanston, Illinois, had to calm down two skittish buyers this week.

One, who is currently working in Iraq, had initially placed on offer of $450,000 on a lakefront Chicago condo. The sellers countered with a price of $525,000. But after seeing Case-Schiller inspired headlines on the web, Shawn’s client emailed him to ask that he lower his offering price by $50,000. Shawn explained that the sellers did not agree with his first offer so if he went lower he wouldn’t get the home. The buyer calmed down and agreed.

Shawn correctly pointed that the Case-Schiller Home Price Indices are meaningless to individual buyers who are looking at specific houses, on specific streets, in specific neighborhoods.

Then yesterday, Shawn met another client for a tour of potential homes. They hardly said hello without telling Shawn they were more nervous than ever after seeing the report on the news.

You have a right to be nervous, but I can’t say this enough. Now is the smartest time in my 36 years in real estate to buy a home if you have the lifestyle reason, financial stability and viability to do so.

And it’s all about “Triple I…P”. Inventory, Interest rates, Incentives and Pricing. Start with inventory, because most communities have seen a rise in the amount of homes on the market, you have more choices. Interest rates for mortgages remain at near-historic lows and have actually trended down over the last 7 weeks, with Freddie Mac reporting 30-year fixed rates now averaging 4.55%. Incentives are the tax advantages to home ownership. And of course, there are prices. Prices are down from mid-decade highs, but in many, many markets are showing stability, slight declines or even increases. Home affordability remains near record levels and the price-to-value proposition in most markets is extremely compelling.

If you are interested in buying a home, you owe it to yourself to contact a real estate agent in the community you are interested in.

Don’t just take my word for it. Do your homework.

You might just be surprised that the end of the world isn’t here yet … at least until next month’s report.

OK, I didn’t write this, but I do agree, so….

Best Coffee Shops in Pacific Grove

Sylvia Brugman — Mon, 06 Jun 2011 20:41:00 +0000

One of the first questions I get when clients or friends and family visit Pacific Grove is where to find the best coffee shops. Well, of course people have different tastes . Here are my favorites:

The Works, 667 Lighthouse, for best chai, best latte, drip coffee and place to meet your friends. B’s Coffee House, Country Club Gate, for strongest cup of coffee. Juice and Java, 599 Lighthouse, for best smoothies. Lighthouse Coffee Co, 570 Lighthouse, for best mini biscotti’s.

Let me know if you have any other suggestions, in the meantime enjoy!

Monterey Peninsula Market Update

Sylvia Brugman — Thu, 19 May 2011 19:41:13 +0000

For all the news we hear about this poor time in the real estate market, our Monterey area Coldwell Banker offices have been certainly busy the first months of this year. It’s a challenging market, yes, with all the tricky nuances of the short sales, particularly when we sometimes just can’t understand why the lender/investor will not sell a property at the true market value and the escrow cancels. Nevertheless, we are getting about half of the short sales to close, albeit after many months of dealing with the lender, and we are putting many “regular”—non-troubled—properties into escrow, too. Along the Monterey Peninsula, we are seeing buyers coming in from other areas who have wanted to own here for years thinking that they can now buy here, what with the lower prices and reasonable mortgage rates.

“In the News — Water…..”

Sylvia Brugman — Sun, 03 Apr 2011 00:12:52 +0000

Here’s what Coldwell Banker has learned in the past few days from the Monterey Water Management District and Cal-Am Water Co.:

1) There are still many unresolved issues concerning the issuance of water permits within the Monterey Peninsula Water Management District and with Cal-Am, who issues most of their water meters. In appr. 45 days (mid-May) there will be a joint meeting session between the California Water Resources Agency, Cal-Am and MPWMD to try to iron out many of these controversies

2) The MPWMD has posted, on their website, certain projects or areas that they feel will be exempt from any water moratorium. http://www.mpwmd.dst.ca.us/

I advise you to check out the website to what it means to you and your property in Pacific Grove or Monterey.

The Bottom Line To Rising Interest Rates

Sylvia Brugman — Fri, 04 Mar 2011 22:35:41 +0000

Are the historically low interest rates a thing of the past? What might an increase in rates do to buyers’ purchasing power in today’s market? These are questions we should be analyzing and answering for our clients as we continue to see upward pressure on rates.

Over the last few months we have watched as interest rates continued to rise. Moving from last year’s historic lows, where 30-year fixed rate mortgages hovered just under 4.5%, we have certainly seen a change in the tide. And while it’s important to point out that rates continue to remain at historic lows, it’s also just as important to make our clients aware that as rates rise, this will certainly affect their purchasing power when it comes time to buy their new home.

According to CNNMoney.com’s February 10, 2011 article, “Mortgage rates break 5%,” “The national average interest for a 30-year, fixed-rate mortgage surpassed 5% for the first time since May 2010, according to Freddie Mac’s Primary Mortgage Market Survey.”

We recently reached out to our friends at Princeton Capital to help us paint a picture as to how rises in interest rate—even seemingly small ones—can affect an individual’s purchasing power. What they found was that if the rates were at 4.5% on a $400,000 loan, the monthly payment (including principal, interest, taxes and insurance) was $2,641 and the individual’s annual income requirement needed to be at least $70,424. However, if rates rose 1.5% to 6%, the monthly payment jumped 12% to $3,012 and the annual income requirement also rose 12% to $80,330.

“We’ve seen the best,” said Brendon Riordan of Princeton Capital. “Rates bottomed out in 2010 and we watched them rise pretty significantly in December and January. We don’t anticipate them to go down, and by year’s end we may even see them hit the 6% mark.”

How to prepare your house for showings

Sylvia Brugman — Thu, 24 Feb 2011 22:32:22 +0000

Fully preparing your home for sale can make considerable difference in the time it takes to sell it. You can help eliminate buyer objections before they arise by making necessary repairs and improvements, some of which are suggested below.

Outdoors
__ Spruce up gardens and lawn; trim shrubbery and replace dead plants.
__ Yard and patio should be neat; outdoor furniture should be clean and in good shape.
__ Clean or paint your front door – remember first impressions last longest!
__ Manicure your front yard, driveway and entry – you can’t sell what you can’t see.

Exterior
__ Check that door numbers, mailbox, and exterior lighting are all in good repair.
__ Touch up with fresh paint as needed.
__ Inspect chimney for cracks or earthquake damage.
__ Repair loose trim, drainpipes and fencing.
__ Clean stains; clean window screens.

This is only the first part of the list. To view the complete list please go to my website

www.sylviabrugman.com.

Click on the “sellers” on top of my photo and find the Showing Checklist.

Market Update Monterey Peninsula February 22, 2011

Sylvia Brugman — Wed, 23 Feb 2011 21:21:34 +0000

Dear readers,

Maybe not every day, but I’d say 6 days a week I realize how lucky we are. Lucky to live on this beautiful peninsula. I passed a gentleman in Pebble Beach on one of my dog walks last week and he and I looked at each other, smiled and he said to me: “Isn’t this why we pay our mortgages every month?” You have to include this picture; we were walking by the Spanish Bay golf course, looking out over the blue waters of the Pacific Ocean, sun shining, whale spouts in abundance…

Anyway, I thought maybe you might be interested in a market update.

Pacific Grove

Active Homes: 77
Active Condos: 9

Since January 1, 2011: a very good start with 23 homes and 1 condo into escrow. In the same period 17 homes and 2 condo’s closed escrow.

Monterey

Active Homes: 79
Active Condos: 26

Since January 1, 2011: same excitement in the air, Monterey saw 25 homes open escrow and 10 condos. 19 Homes and 6 condos closed in these first weeks of the year.

Carmel

Active Homes: 149
Active Condos: 9

31 Homes pending, 5 condos since January 1, 2011. No closings this year so far.

Carmel Valley

Active Homes: 112
Active Condos: 17

25 Homes and 6 condos in escrow. 18 Homes closed this year, so did 6 condos.

The overall sentiment seems to be that if a property is priced right, the buyer(s) will present themselves.

Affordable staging tips

Sylvia Brugman — Sat, 15 Jan 2011 02:43:19 +0000

Click here to view the embedded video.