For the first time since June of 2009, the number of active residential listings in Santa Clara County has topped the number of pending residential listings.  Currently in the county there are 3139 active and 2896 pending single family homes and there are 1260 active and 1217 pending condo/townhouses.  Considering the currently amazing low interest rates available for mortgages, and you’ve got a bright outlook for buyers!

In our south county area, Morgan Hill has 182 active and 124 pending single family homes and 17 active and 42 pending condo/townhouses.  San Martin has 28 active and 10 pending single family homes.  And Gilroy has 144 active and 195 pending single family homes along with 5 active and 15 pending condo/townhouses.

“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

1. The applicant applies for a building permit and all penalty fees are waived;
2. The Building Inspector performs a preliminary inspection of the property to determine the scope of the work, and if plans will be required;
3. As-built plans are submitted, if deemed necessary;
4. 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.”

Priced at $2,595,000 

For more information, contact me at 408-892-9015 or Sold@GretchenMerrick.com

Also see:  www.2220LiberataDrive.com

         (Click on thumbnail picture to enlarge)

·         Grand front entrance with sweeping staircases and panoramic views ·         Soaring ceilings throughout home·         Gracious living room and dining room designed for lavish entertaining

·         Large designer kitchen includes slab granite counters and island, custom alder cabinets, stainless steel built-in refrigerator, three stainless steel ovens plus microwave oven, two sinks, central vacuum “crumb catcher”, and a spacious, bright breakfast nook ·         Kitchen adjoins large family room with a wood burning fireplace, wired for flat screen tv above, built-in alder bookcases and cabinetry, wet bar with wine refrigerator

·         Large master retreat includes a wet bar with refrigerator, fireplace and lovely views ·         The master bathroom features lighted crown molding, a large walk-in marble shower, jetted bathtub, two sink areas, huge walk-in closet with complete laundry room (in addition to downstairs laundry room)

·         Richly appointed office features built-in alder bookshelves, desks and cabinetry ·         Downstairs second family room may be used as an entertainment/media room and contains a beverage center, built-in shelving, wall niches ·         Four additional large bedrooms each with an adjoining bathroom and spacious walk-in closets with built-in shelving and all with breathtaking views ·         550 bottle wine cellar with lovely trompe l’oeil wall paintings ·         Rich mahogany flooring throughout much of the home ·         Communications closet for easy access to:  smart cable run to every room, monitored alarm system (fire and security), telephone system, TV system, stereo system, closed-circuit tv camera ·         Dramatic backyard courtyard perfect for entertaining ·         Built-in barbecue and beverage center with sink and refrigerator ·         Putting green for perfecting your putting skills ·         Terraced entertaining areas featuring a roomy spa at the top with commanding views of the valley and mountains beyond

·         106 installed low voltage landscape lights throughout property ·         Area for future guest house·         Rock retaining walls and low maintenance plantings and grassy areas ·         Hundreds of trees recently planted on the property ·         Numerous amenities throughout the home include high ceilings, crown molding, antique bronze hardware, custom drywall texturing, wall niches, built-in storage ·         Water is treated by a $10,000 commercial water conditioning system (Beatron Water Filter and Conditioner) ·         Security camera placed on the exterior of the home and accessible from the internet and recorded ·         The home features 3 distinct heating and cooling zones with 3 heaters and 3 air conditioners ·         Three 5000 gallon tanks are located on the property for house use, irrigation and fire safety sprinklers. Annual water costs very low. ·         Two laundry rooms·         Central vacuum system ·         The estate is located on a gated, private road which leads to only three residences.  The home is 1200 feet to Main Avenue. ·         Easy access to Highway 101, yet still very private

Other real estate companies like to profess that they are more qualified to sell luxury real estate, but actions speak louder than words.

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

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!

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.

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.

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.

President Obama is expected to sign the congress-passed bill extending and expanding the Federal Tax Credit for First-time Home Buyers. 

The changes, among other things, are aimed at encouraging so-called “move-up buyers” to sell their first homes and buy a larger or more expensive place. Under additional provisions in the bill, taxpayers can claim the credit on purchases completed in 2010 on their 2009 income tax returns. The bill maintains the provision that home buyers do not have to repay the credit provided the home remains their primary residence for 36 months after purchase, and waives this requirement for active duty military personnel who move due to a military order.