City of Morgan Hill Offers Amnesty for Add-ons and Upgrades
Date: Sunday June 20, 2010Posted in: real estate, Morgan Hill
Good news for those of you who have done unpermitted work to your property! The City of Morgan Hill is offering an opportunity to those of you who decided to go ahead and do the work - and worry about the permit later. For the next two years, until June 30, 2012, you can make sure that your unpermitted work meets life and safety compliance without having to pay any penalty fees for work already done. As stated in the City of Morgan Hill’s website:
“Overview
In an attempt to assist property owners in securing retroactive permits for work that has already been performed, a temporary Building Permit Amnesty Program has been implemented. The program will allow property owners that have constructed room additions, remodels, or performed other work that would otherwise require a building permit, to apply for the appropriate permits without paying penalties. The primary objective is to achieve code compliance for life and safety aspects of the code, and therefore reduce liability and increase safety for property owners and/or tenants. This program will only be in effect until June 30, 2012.
Fees
All current applicable permit and impact fees would still be due; however, the penalties would be waived–which could mean hundreds or even thousands of dollars in savings.
Process
- The applicant applies for a building permit and all penalty fees are waived;
- The Building Inspector performs a preliminary inspection of the property to determine the scope of the work, and if plans will be required;
- As-built plans are submitted, if deemed necessary;
- If the inspector determines that the unpermitted work will comply with current applicable codes, permit fees are paid, an active building permit is issued to the property owner, and a final inspection takes place.
Codes and Regulations
It will be necessary for the unpermitted construction to comply with all current codes. In cases where there has been extreme divergence from zoning and building codes, the illegal construction will not be permitted. In this situation, the property owner will be required to restore the structure and/or site to its previous condition.”
amnesty program building permit City of Morgan Hill code compliance Morgan Hill property property owner real estate room additions
Pristine Morgan Hill Listing Sold In One Day
Date: Tuesday March 30, 2010Posted in: Sellers, real estate, Morgan Hill
I put a beautiful new listing on the market last Thursday, March 25th. We received an offer for over the asking price of $859,000 the next evening, and had a ratified contract by Saturday. Whew! I haven’t seen a listing in that price range sell that quickly in a long time. It just reinforced what I had told my sellers, this is a GREAT time to put your home on the market! Inventory is extremely low right now and there are plenty of buyers out there looking and wanting to take advantage of the low interest rates and buyer tax incentives.
This is a five bedroom, three full bathroom home with 3176 square feet living area. The lot size is 12,196 square feet with the majority of the square footage in the backyard since this is a cul-de-sac lot. The home was built in 1988 and has many charming features.
The home is pristine and well-cared for. With a large, park-like backyard this home offers a wonderful, private area for entertaining. The pool and spa are enhanced with the rock waterfall. There is a corner of the yard for growing vegetables and many fruit trees as well as other flowering trees and redwoods.
The remodeled kitchen features slab granite, custom cabinetry, stainless appliances, a wet bar with a wine refrigerator and large tile flooring throughout the kitchen and adjoining family room. The huge master suite has a large sitting area and walk-in closet. There are a total of five bedrooms and one bedroom is on the ground floor with a nearby full bathroom.
This light and airy home shows extremely well and so buyers were quick to place their offer on it. Another example of a well-cared for home, priced at market value, receiving what these sellers were hoping for: a quick, above asking price offer!
To see a virtual tour of this property, click on this link: http://www.3cim.com/3cim/tour.do?method=viewTour&id=1269276194078&view=3
buyers homes listings months of inventory Morgan Hill prices pricing real estate residences sales Santa Clara County sellers sellers marketMorgan Hill Seller’s Market?
Date: Wednesday March 3, 2010Posted in: real estate, Morgan Hill, seller's market
What a difference a year makes! A year ago many residences sat languishing on the market while buyers were waiting on the sidelines. Fast forward to the present day: large numbers of well-qualified, motivated buyers are combing the sparse south Santa Clara County real estate inventory and now sellers are sitting on the sidelines! With the low real estate inventory in Morgan Hill and the rest of south Santa Clara County, is it a seller’s market? Let’s look at the data:
The first graph shows the number of residences for sale in Morgan Hill. As can be seen clearly, the number in the past few months has been quite low relative to the past two years. This data is backed up by the second graph which shows the months of inventory for active residential listings on the Morgan Hill real estate market. The months of inventory is the number of months it would take to sell all of the inventory currently on the market using current number of sales per month to determine this number.
With these two graphs in mind, sellers should feel confident in listing their homes in this current market. However, as with any market, pricing is the number one factor in whether your home will sell and how quickly it will sell.
The third graph shows the average sale price for single family residences in Morgan Hill over the past two years. Although it does look like prices have inched up over the past few months, sellers should beware asking exhorbitant prices for their homes - if they are serious about selling their home.
Inventory will gradually increase over the next months in Morgan Hill. But for those sellers currently on the market with a well-priced listing — enjoy your opportunity to choose from the multiple offers you are quickly receiving!
buyers homes listings months of inventory Morgan Hill prices pricing real estate residences sales Santa Clara County sellers sellers marketPercentage of Distressed Sales in South County
Date: Sunday January 24, 2010Posted in: real estate, short sales, Morgan Hill, San Martin, Gilroy, foreclosure, bank-owned
Diane Kawell, an award-winning Realtor in the Tacoma/Seattle area of Washington, mentioned in a comment on my previous post that 44% of all residential real estate sales in her area were distressed sales, i.e. sold listings that are short sales or bank-owned REOs. This made me curious about what the numbers are in our south Santa Clara County area.
I looked at each community of Morgan Hill, Gilroy and San Martin separately for single family home and condo/townhouse listings sold on the MLS within the past 365 days. Here is what I found:
Morgan Hill: total sales = 444, distressed sales = 231, percentage distressed = 52%
Gilroy: total sales = 659, distressed sales = 491, percentage distressed = 75%
San Martin: total sales = 36, distressed sales = 23, percentage distressed = 64%
I was somewhat surprised at the large percentage numbers. Buyers are buying “the deals” and the price discounts on distressed properties are very attractive. I suppose that I should have been expecting these large percentages. When I look back at the real estate properties that I sold within the past 365 days, 55% of those properties were either short sales or REOs.
condo townhouse distressed properties distressed sales gilroy mls morgan hill percentages price discounts realtor real estate properties real estate sales residential real estate residential real estate sales santa clara county san martin single family south santa clara south santa clara countyShopping for South Santa Clara County Real Estate?
Date: Saturday January 23, 2010Posted in: real estate, Morgan Hill, San Martin, Gilroy, housing inventory
In between rainstorms, you may want to do a little house shopping today. How is the current residential real estate market doing in the towns of Morgan Hill, San Martin and Gilroy? Let’s look at single family residence listings and condo/townhouse listings as of today and compare it to one year ago.
Morgan Hill: January 2010: Active listings - 128, Pending listings - 118, versus January 2009: Active listings - 275, Pending listings - 68
Gilroy: January 2010: Active listings - 113, Pending listings - 196, versus January 2009: Active listings - 385, Pending listings - 152
San Martin: January 2010: Active listings - 23, Pending listings - 18, versus January 2009: Active listings - 44, Pending listings - 11
In the cases of Morgan Hill and Gilroy, inventory is far below half the amount of what it was one year ago. San Martin is right about at half.
An overall graph showing the current inventory of all of the three south county communities over a two-year time frame is shown below. The listing numbers include both single family residences and condominium/townhouses. South Santa Clara County inventory peaked during May of 2008 at 901 total active listings as compared to today with a total of 264 active listings. Wow.
Also in the graph below you can also see the nose-dive of the median price of listings. The graph only depicts single family residence median prices which were $702,450 in January of 2009 and currently are $445,000. Days on Market has remained steady ranging between 98 to 150 days during this two-year period.
As I have mentioned in many of my previous blog posts, the high Pending listings number is indicative of the large number of pending short sale listings in our area. These listings remain at pending status for many months while the short sale lenders determine whether they’ll give short sale approval.
Multi-million Dollar Real Estate Sales
Date: Tuesday December 8, 2009Posted in: real estate, Morgan Hill, sales
Two high-priced properties went under contract in South County last week. 16367 Reynolds Drive in Morgan Hill, priced at $2,995,000, is a spectaular single-story home located on a prestigious street in the Paradise Valley area of Morgan Hill.
This 5125 square foot home is located on 1.8 beautifully landscaped acres and has 4 bedrooms and 4 bathrooms. A gorgeous kitchen is situated in the midst of all the activity. The family room boasts open hand-hewed ceiling beams. The huge master suite features a fireplace and retreat. The library, wine room and pool table room with wet bar create several spaces for entertaining and relaxing. The backyard also features areas for entertaining including an expansive outdoor dining pavilion with wood fireplace, pizza oven and kitchen. There are formal gardens, along with a custom pool and spa. The real slate roof is another high-end feature on this one-of-a-kind wonderful custom home.
15175 Sycamore Drive, Morgan Hill priced at $2,750,000, also sold last week. An equally spectacular property, this home is 6921 square feet located on 5 level acres and is in the Paradise Valley area of Morgan Hill as well.
This Tuscan inspired villa features all the amenities to be expected in this type of custom estate. The main home is 6300 square feet and includes 4 bedr00ms, 2 offices, 5 full baths, and 2 powder rooms. The detached pool house is 990+ square feet with a full kitchen and full bath. There is parking for 8 cars, a 580 square foot gym/game room with a 1/2 bathroom and a separate workshop.
These two high-priced real estate sales last week are remarkable in that there have only been two closed home sales during all of 2009 that were priced over $2 million.
gilroy high end home house Morgan Hill price pricing real estate residential residents San Martin soldMany homeowners are faced with dire decisions today regarding keeping their homes through these difficult economic times. There are several options available to financially troubled homeowners who wish to keep their homes. According to Mark L. Strombotne, who practices real estate law in the Bay Area, these options include:
1. Refinance - Federal Homeowner Affordability Refinance Program
- Fannie Mae or Freddie Mac loans
- Owner occupied 1-4 units, primary residence
- Amount owed on 1st mortgage does not exceed 125% of fair market value
- Not delinquent on mortgage payments
- Acceptable mortgage history
- Ability to pay
2. Loan Modification - Federal Homeowner Affordability and Stability Plan
Program will reduce interest rate or lengthen loan term to lower debt-to-income ratio to 31% for 5 years. A participating lender may elect to reduce the interest rate on a loan down to a 2% minimum. If the borrower’s debt-to-income ratio is still above 31%, the next step for the lender is to increase the amortization period up to 40 years. If the borrower’s debt-to-income ratio is still more than 31% then the lender must forbear (defer) principal. A lender may always elect to forgive principal rather than lower the interest rate, extend the amortization, or forbear on the principal balance. However, loan servicers are not required to offer permanent principal reducions.
- Owner occupied 1-4 units, primary residence
- Applies to 1st deed of trust
- Monthly PITI is more than 31% of monthly gross income
- Borrower has experienced significant decline in income and can’t pay
- Loan originated before 1/1/2009
- Loan is less than $729,000
- Loan is held by a participating lender
3. Forbearance Agreement - must be in writing and signed by lender
4. Rent the home
5. Equity Share
6. Bankruptcy - Chapter 13 (reorganization plan)
amortization period debt to income ratio fannie mae loan modification loan servicers26 Million Underwater Homeowners
Date: Tuesday October 6, 2009Posted in: real estate, foreclosures, short sales
Mark L. Strombotne, who practices real estate law in San Jose, spoke at our weekly office meeting this morning. Mr. Strombotne gave us some very insightful, up-to-the-minute information on strategies for financially troubled homeowners. He stated that nearly half of the nation’s 52 million mortgage borrowers will have negative equity by the end of the first quarter of 2011, up from the 14 million at the end of this year’s first quarter, according to estimates in an August 5, 2009 report by Deutsche Bank.
With so many borrowers underwater - or owing more on their home than it’s worth - the risk is high that they’ll default and their homes will go into foreclosure. Moody’s Economy.com estimates that 17.5 million mortgage borrowers will be underwater by early 2010.
default deutsche bank foreclosure homes mortgage borrowers negative equity real estate real estate law short saleWhat’s Happening to Sales Prices in South County?
Date: Monday September 28, 2009Posted in: real estate, Morgan Hill, San Martin, Gilroy, pricing, sale price
What’s been the trend in sales prices for south Santa Clara County real estate? I’ll break it down by city looking at detached single family residences:
Morgan Hill median Sold Prices, down 31% August ‘08 vs. August ‘09:
Gilroy median Sold Prices August ‘08 vs. August ‘09 down 9%:
San Martin median Sold Prices, down 58% August ‘08 vs. August ‘09:
South County Real Estate Sales Week of September 14 - 20, 2009
Date: Monday September 21, 2009Posted in: real estate, Morgan Hill, South Santa Clara County, San Martin, Gilroy, statistics
Sales remained steady in the south Santa Clara County towns of Morgan Hill, San Martin and Gilroy during the week of September 14 through September 20. There were 33 residences that went from active to pending status as compared to the previous week’s 31. This is down from the typical number of sales this summer when weekly sales numbered in the 40s. Of all the sales this past week, 29 were single family homes and 4 were townhouses/condominiums.
The highest priced listing sold last week was 1026 Llagas Road in Morgan Hill, a 4,893 s.f. bank-owned home on a 90,604 s.f. lot priced at $899,000. This home had been on the market for 44 days. 
The lowest priced listing sold last week was also a bank-owned condo at 7598 Monterey Street in Gilroy, a one bedroom/one bathroom priced at $78,900. This 3 year old property had been on the market for 54 days.
Seventy-three percent of the sales this week were priced under $500,000 and only 6% were above $800,000.
Of these sales, the list price ranges were:
Less than $200,000 = 5 sales (15% of total)
$200,000 - $500,000 = 19 sales (58% of total)
$500,000 - $800,000 = 7 sales (21% of total)
$800,000 - $1,200,000 = 2 sale (6% of total)
As of September 20, 2009, there are 287 residential (single family homes and condos) listings active on the market in Morgan Hill, San Martin and Gilroy. There are currently 378 pending residential listings. Therefore, 57% of the total listings are pending under contract as of this date. However, many of the pendings are short sales and therefore take a long time to close. This keeps our pending percentage up artificially high.
Only 15 residential real estate listings closed escrow during the past week in the south county towns of Morgan Hill, San Martin and Gilroy. If homes continued to sell at this rate it would take 19 weeks to sell all south county listings. Therefore, as of this past week, we have 4.8 months supply of inventory.
Tune in next week for an update on the number of sales in South Santa Clara County!
active gilroy home Homescopes listings Morgan Hill pending listings real estate real estate listings residential listings San Martin Santa Clara County single family sq ft
