Update from Morgan Hill’s City Manager
Date: Saturday July 26, 2008Posted in: housing inventory, City of Morgan Hill, affordable housing
Morgan Hill’s City Manager, Ed Tewes, spoke at our South County Realtor Association meeting last week regarding current issues being considered in the city. He first spoke about the Affordable Housing Initiative Measure that is slated to be on the November 4, 2008 ballot. Morgan Hill has had voter-approved growth control since 1977. Developers must compete for building permits. The competition provides incentives to developers via a point system to provide certain items to their proposed development in order to get enough points to be awarded building permits. One of the incentives is to include Below Market Rate residences.
The initiative would do away with this incentive and leave affordable housing development to non-profit companies. At this time, it is up in the air as to whether the initiative will appear on November’s ballot because Morgan Hill’s city government has asked the Santa Clara County Superior Court to review the initiative which, the city says, will make it impossible for the city to abide by state housing laws.
Another topic that the City Manager discussed at our meeting is the downtown plan. It is the city’s goal to create a more active environment downtown with people living, working and recreating in the downtown core. The City Council is considering placing a measure on this Fall’s ballot amending its growth control law to bring 500 residential units to the downtown.
The downtown geographical area is from Main Avenue to Dunne Avenue, north to south, and from Butterfield Boulevard to Del Monte Avenue, east to west. In addition to this core area, the amendment would also include the shopping center where the old Albertsons grocery store was and the neighborhood adjacent to the Britton School area.
The last topic that the City Manager briefly touched on was the 2% Utility Users’ Tax that will also be placed on the November ballot. The money collected from this tax will go into the General Fund but will be used to expand the police department by 9 1/2 positions. It is estimated that this will cost each home $10 per month.
Mr. Tewes does an excellent job of keeping the South County Realtors Association informed and we very much appreciate the time he gives us.
Should We Sell or Buy First?
Date: Tuesday July 22, 2008Posted in: multiple offers, home, buyer's market, housing market, seller's market
I often have clients ask, “Should we find the house we want to buy prior to listing our house on the market?” And the answer depends on what the real estate market is doing. For example, we currently have a buyer’s market with a large number of homes listed. So, instead of jumping into a purchase that is contingent on the sale of the buyer’s home, it is much better to sell the home first. This is because it could take many months and possible price reductions until the home is sold. Not only will there still be a good supply of homes available for sale when the home is sold, but the person who has already sold their home has much more leverage in the negotiation process in their next purchase.
Now consider the seller’s market we had a few years ago. There were few homes available for purchase and those that came on the market were often sold very quickly with multiple offers. In that kind of market, it’s advisable to find a desirable, affordable house and put in an offer that gives you time to attract a good offer on your current house.
Also keep in mind that if you’re selling high, you’re probably buying high and if you’re selling low, you’re buying low. Don’t try too hard to time the market when you are buying and selling in the same type of real estate market.
South Santa Clara County Real Estate Statistics
Date: Tuesday July 8, 2008Posted in: real estate market, price, real estate, Morgan Hill, South Santa Clara County, San Martin, Gilroy, statistics, housing market, pricing, average price, housing inventory
Well, there is good news to report here in the South County - finally! In Morgan Hill, San Martin and Gilroy, the number of active listings is down from last month, sales are up and average sale prices have inched up as well. Looks like we’re in the middle of the summer buying season and buyers are seeing deals too good to pass up!
In those three Santa Clara County cities, the current inventory of single family homes was down to 889 at the end of June as compared to 908 at the end of May. Still high, but at least it is going in the correct direction. And the big news is that there were 95 sales in June which is quite a jump from May’s paltry 57! The average sale price in the south county for June was $702,810 versus $674,717 in May. The only number that didn’t go in the direction wished for is cumulative days on market, or CDOM. This rose to 121 days in June from 118 days in May.
From the volume of sales that have occurred already this month, I think July will be a great month as well here in the South County!
