Archive for August, 2007

U.S. real estate transaction costs among lowest

Thursday, August 23rd, 2007

With the high cost of housing in Marin, real estate transaction fees can be particularly pricey. We often hear Marin buyers and sellers gripe about high transaction costs, and frankly, who can blame them? Well, for all you whiners out there, there’s a new report out that may ease your pain a little.

A recent study by the Organization of Economic Co-operation and Development (OECD) rates real estate transaction costs in the United States among the lowest in the world. The report shows that U.S. real estate transaction costs represent 9.07 percent of property values, compared to Korea, which has the highest rates at 22.08 percent.

Housing transaction costs in the OECD >> [Global Property Guide]

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Marin scores high on STAR tests

Thursday, August 16th, 2007

The 2007 STAR test results were released Wednesday and Marin students did not disappoint. As usual, Marin kids scored much higher than the state average.

This year, the Ross School led the way with all 42 seventh-graders hitting the 100-percent mark. However, results were mixed with disappointing scores from blacks and Latino students.

> From the Marin IJ…

Marin County students scored much higher than the state average on STAR test results released Wednesday, but local Latino, black and English-language learning students continued to struggle.

In Marin, 68 percent of all students are proficient in English, compared with 43 percent across the state. For math, 70 percent of Marin students are proficient, compared with 51 percent across the state.

However, Marin is experiencing the same problems as the rest of the state when factoring in race and students learning English. Marin blacks, Latinos and students considered English-language learners scored above the state average, but the scores were much closer and lag far behind those of white students. Read More >>

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Marin median home price slips below $1MM

Wednesday, August 15th, 2007

Today, the Marin IJ reported that the Marin median home price has fallen back below the $1MM mark. According to the IJ, the median price presently stands at $950,000, down from June’s $1,125,000. While our numbers differ slightly, it does appear that the record-breaking run over the last several months has indeed ended.

Despite the drop, Marin remains one of the strongest housing markets in the U.S. The median is still 3% higher than last year and sales remain robust.

> From the Marin IJ…

Marin’s median single-family home price fell back to $950,000 last month, still higher than this time last year, but below last month’s record $1.125 million.

“The median has bounced around a little bit,” said Valerie Castellana, president of the Marin Association of Realtors. “The homes at the higher end definitely drove the median up in the spring and again when it hit it (the $1 million mark) in June. With the lending crises or problems, the buyers that are struggling a bit are at the lower end of the market.”

The total number of Marin homes sold last month – just over 300 – was nearly identical to July 2006, when the median price for single-family homes hit $900,000. Read More >>

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What do higher rates mean for Marin housing?

Saturday, August 11th, 2007

Over the last few weeks we’ve seen mortgage rates rise radically. Wells Fargo raised interest rates on its 30-year fixed jumbo to 8% last week and pressure continues this week as fears of the ‘mortgage meltdown’ has spread to the financial markets. So, what do higher rates mean for the Marin housing market?

While there’s no denying that the cost of housing has gotten a bit pricier for now, higher interest rates probably won’t have much impact in Marin. Marin easily has the highest prices statewide and, as a result, atypical buying patterns. The big difference is that Marin households have much greater purchasing power and higher rates don’t mean all that much. With ample assets, down-payment dollars and income levels, the typical Marin buyer will make do.

Clearly, there is going to be some effect on the Marin housing market, but it will likely be minor compared with other counties. With so much uncertainty in the mortgage market, we’ll just have to wait and see. It will depend mostly on how long the credit crunch lasts.

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Posted in Marin Real Estate, Mortgage Trends | No Comments »

Mortgage rates rise

Tuesday, August 7th, 2007

The cost of financing an expensive home in the U.S. is climbing. Wells Fargo, one of the nation’s biggest lenders, raised the interest rate on its 30-year fixed jumbo (loans of more than $417K) to 8% last week and other lenders quickly followed. Many believe the implications for high-priced markets, like Marin, may be more serious as they account for the majority of the jumbo loans.

CNNMoney reports on the rate jump and its potential effect on the nation’s priciest housing markets.

> From CNNMoney…

Don’t look now but the cost of financing a home purchase in some of the nation’s priciest areas just got more expensive.

Wells Fargo, one of the nation’s biggest mortgage lenders, raised the interest rates on it 30-year, fixed-rate, non-conforming (AKA jumbo) loan to 8 percent last week, up from 6.875 percent. Other lenders followed suit and more are likely to join them. Read More >>

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Posted in Marin Real Estate, Mortgage Trends | No Comments »

Market Summary | July 2007

Thursday, August 2nd, 2007

The Marin housing market took a slight turn in July. The median price dipped to $970,000, down from $1,155,000. This ends the record-breaking streak experienced over the last several months. Still, July was a 3% increase from 2006.

Here’s a quick snapshot from the MDH Newsletter with a summary of the market trends for July…

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