California’s Unsold Inventory Index (UII), a closely watched index indicating the number of months needed to deplete the supply of homes on the market at the current sales rate, declined to 3.8 months in December, the lowest level in five years, according to the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.). By comparison, the UII for existing, single-family homes stood at 5.6 months in December 2008.

MAKING SENSE OF THE STORY FOR CONSUMERS

Some economists believe that California’s housing inventory is artificially low because many discretionary sellers—homeowners who do not have to sell their homes—are waiting on the sidelines until home prices rise. Others believe there are more foreclosures to come, as unemployment in the state continues to rise. However, C.A.R. predicts that foreclosures will remain flat in 2010 compared with 2009, as lenders are listing properties for sale at a more metered pace.

California’s housing market has shown signs of stabilization since early last year. Sales of existing, single-family homes bottomed out in August 2007, and the median home price reached its trough in February 2009.

In December, the median price of an existing, single-family home rose to $306,820, an 8.4 percent rise year-over-year, the second consecutive year-over-year increase, and the 10th straight month-over-month increase, according to C.A.R.’s December sales and price report.

With affordability near-historic highs, low interest rates, and home buyer tax credits, many properties in California are receiving multiple offers and sparking bidding wars. Home buyers who find themselves in bidding wars should work closely with their REALTOR® to ensure they are crafting realistic offers that are more likely to be accepted by the seller.

From Jan. 28, 2010 Market Matters

Reprinted with permission of the California Association of Realtors

We love to keep you updated on recent real estate activity in Mission Valley. The sale on 379 Carmelia closed — sales price $780,000. The home at 350 Carmelita is back on the market at $820,000. This is a short sale.

Click here to see our January 2010 Mission Valley Update. Highlights this month are 39861 San Moreno Court, which sold for $920,000, and some tips on keeping your heating bill under control this winter.

For many home sellers in Fremont, a significant portion of their home’s value is based in the school attendance area. If you live in the Mission schools and are planning on selling, you probably already know that the schools are your home’s biggest draw. Potential buyers who want their kids to go to Mission San Jose High School are willing to pay significantly more for a home.

We often think of home selling season as being the spring and summer. However, when the schools are a big part of your home’s draw, you might want to consider school registration time when deciding when to put your house on the market. Though it’s only January, Fremont Unified is already registering children for the 2010-2011 school year. Families looking to move into the Mission attendance area will need to move sooner rather than later in order to get their children enrolled in their school of choice.

This means that if you are considering selling before the new school year, don’t wait until May to put that sign up in your yard. The buyers are already looking, so don’t miss out by waiting.

Here’s our neighborhood newsletter from December 2009, showing you the market activity in the area. Click here to read it.

During his State of the State address, Governor Schwarzenegger yesterday announced his 2010 proposals for California. Included in the proposals is a recommendation to set aside $200 million for a new round of $10,000 state tax credits for first-time home buyers. The proposal expands upon the initial $10,000 state tax credit by including both new and existing homes. Last year’s tax credit applied only to new homes.

The tax credit could be combined with the recently extended and expanded federal tax credit for home buyers.

From January 6, 2010 C.A.R. Newsline

Reprinted with permission of the California Association of Realtors