OUR MARKET

STATE OF OUR REAL ESTATE MARKET

The Pine Mountain Lake/Groveland/Greeley Hill/Foothill Area’s have been in decline for the past three years plus. Prices stopped climbing in July of 2005, went down for the next several months and appeared to level off in Spring of 2006. Prices again started down after Summer of 2006, and continue to drop. Inventories are dropping, not so much due to sales as to listings expiring and not being renewed or properties being withdrawn from the market. Regardless of the cause, the closer demand gets to availability, the more prices will stabilize or begin to climb.

Pine Mountain Lake, in summer of 2005, had about 60 homes and 30 lots on the market. After sales slowed, inventories climbed to approximately 180 homes and 100 lots. Today we have 138 homes and 98 lots available in Pine Mountain Lake. Inventories of available properties have gone from about two weeks supply to over twelve months supply. With only 19 recorded sales of homes in Pine Mountain Lake since the first of the year you can clearly see how the market has changed.

BUYER'S MARKET

It is definitely a buyers' market. At the present time sellers are considering any and all offers, just happy to have a conversation going with a prospective buyer. So if you are looking to relocate, or make a long term investment, now is a good time to be a buyer.

SELLING

If you find yourself needing to sell your home or property, then pricing is the key to moving it. In an expanding market you can over price a property and wait for the market to meet your price. Conversely in a falling market you must price below market. The old adage “you can’t catch a falling market from above” really applies. Current median home price ($286,500) is still ahead of 2004 ($277,000), but well behind 2005s high ($346,000). Days on the market average 236.

FORECAST

Where do we think the market is heading? It will continue down through 2008 and into 2009. The negativity of the media and forclosures are the driving force right now. What we can look forward to: Baby Boomers are retiring and wanting to escape the hustle and bustle of the Bay Area. Vacation homes are still in demand and with the ability to work from home via computer we are attracting more and more families who choose to live and raise their families in our lovely area. This will create demand which should keep pace with supply. Our property is most likely very close to the bottom right now.




STANDARD REAL ESTATE PRACTICES OF HETCH HETCHY ASSOCIATION OF REALTORS


Each real estate area has some practices which are standard or normal for their association. Although you can negotiate anything you want in a contract it is handy to know what the norm is for a given area. I will expand on this for our association, but again, none of these norms are mandated.

1. Escrow Fees are split 50/50.
2. Title Insurance is split 50/50.
3. Home Owners Association Transfer and Document Fees split 50/50.
4. Property Taxes are pro-rated. (You only pay for the time you own the property)
5. County Transfer Tax, $1.10 per Thousand, Seller Pays.
6. All Inspections paid by Buyer. (Pest, Home, Septic, Roof, Well, Etc.)
7. Seller usually pays for section one pest work, buyer pays for section two.
8. Transfer Fee For Water and Sewer - Buyer Pays.
9. Natural Hazard Zone Disclosure Report - Seller Pays.
10. Smoke Detector, Water Heater, Other mandatory minimum government retrofit standards - Seller Pays.

As a general rule if something benefits the buyer, then the buyer pays. (Such as most inspections). If something benefits the property (repair, mandatory minimum government requirements, etc.) then the seller pays. To understand and know what to expect can lead to a smoother and less stressful contract negotiations.

Two items which any buyer or seller might wish to consider are a Home Insurance Policy and a Risk Management Policy:
THE HOME INSURANCE POLICY can cover the new owner for unexpected and necessary repair during the first year of ownership. Peoples life styles tend to put different stresses on things and it is not uncommon for things to break that first year.
THE RISK MANAGEMENT POLICY helps to protect buyers and sellers from disputes that may arise due to real estate transactions. At the present time, Coldwell Banker Mountain Leisure Properties is the only real estate agency in the Pine Mountain Lake/Groveland area to offer this essential protection.