Half Moon Bay may go bankrupt. Without city services, would real estate suddenly become much less desirable?
Maybe some city services will be at risk but not all of them. The county will not allow it. Half Moon Bay is a key component to our counties' infrastructure and is a work horse community that drives its economy. I have heard this directly from congressman, assembly members and other governmental officials.
Northern communities on the coast, such as El Granada, Moss Beach, and Montara are unincorporated, while property values are still close to the other parts of the Bay Area. These communities, however, are sometimes subject to assessments and there are a few currently.
In regards to desirabilty, according to one of my colleagues, who works for C-21 and writes occasionally for the Half Moon Bay Review, stated in a recent thread on the TalkAbout section of HMBREVIEW.COM "Its uncertain how many new people are going to want to move into a potentially bankrupt town that faces being dissolved if they lose." His keyword is UNCERTAIN...
The bottom line is that this lawsuit has been appealed and we just have to sit back and watch and hope that CURRENT (note that part of the reason we are confronting this issue is because of poor leadership in the past) city council, property owner and the respective lawyers NEGOTIATE.
Should the city go bankrupt, as REALTORS, we will most likely have to disclose it. But, in the meantime, we are not and we will just hope for the best and hope that this certain property owner gets what he wants...the opportunity to build.
For more dialogue, go to www.HMBREVIEW.com and click on TalkAbout. You can get a taste of the dialogue amongst citizens over here.
Cheers!
Wednesday, December 19, 2007
Friday, December 07, 2007
FEATURED LISTING
902 BEACH PARK BOULEVARD #135
$428,000
Welcome to popular Sand Harbor South. Enjoy this first floor one bedroom and one bathroom condominium. Maintained in excellent condition and recently painted this home offers a generous master bedroom with walk-in closet, spacious living and dining area with a cozy wood burning fireplace, and access to a private and enclosed patio. The kitchen has an expanded pantry area and full sized washer and dryer. The development offers many amenities, such as, a beautiful full sized pool and spa, clubhouse, and walking trails and pathways along Foster City´s waterways. Association fees are only $395 dollars a month which includes hot water, garbage, common areas and a professional management company, PML.
7 KEY POINTS ON WHY IT IS STILL OKAY TO BUY IN THE BAY AREA
1. 35% of the homes in the U.S. do NOT have a mortgage.
2. 94.88% of all loans ARE performing.
3. The foreclosure problem in this country is really a story of seven states.
4. The BIGGEST foreclosure problems are in Michigan, Ohio, and Indiana. These are manufacturing states that had horrible job losses. Since 2001, Michigan has lost 300,000 jobs. These states would have had problems no matter what the market condition happens to be.
5. The other four states, California, Florida, Nevada, and Arizona----experienced significant overbuilding. Twenty-five per of the foreclosures in these states are on properties that are held by investors who were speculating.
6. ONLY 25% of all mortgages are subprime, and of these 75% are performing.
7. In the other 43 states, foreclosures have fallen in 2007 from 2006.
(In California which is the predictor of what is to come in Florida, the following is being said……)
According to Leslie Young, chief economist for the California Assoc. of Realtors, (which mirrors what we are seeing here) that the areas being hardest hit in California are the outlying areas where there has been overbuilding. The resale market in California’s major markets continues to be strong. In fact, the closer you are to a metropolitan area, the better the sales are. In the million-dollar plus price range, there has been essentially no change from 2006 to 2007.
1. 35% of the homes in the U.S. do NOT have a mortgage.
2. 94.88% of all loans ARE performing.
3. The foreclosure problem in this country is really a story of seven states.
4. The BIGGEST foreclosure problems are in Michigan, Ohio, and Indiana. These are manufacturing states that had horrible job losses. Since 2001, Michigan has lost 300,000 jobs. These states would have had problems no matter what the market condition happens to be.
5. The other four states, California, Florida, Nevada, and Arizona----experienced significant overbuilding. Twenty-five per of the foreclosures in these states are on properties that are held by investors who were speculating.
6. ONLY 25% of all mortgages are subprime, and of these 75% are performing.
7. In the other 43 states, foreclosures have fallen in 2007 from 2006.
(In California which is the predictor of what is to come in Florida, the following is being said……)
According to Leslie Young, chief economist for the California Assoc. of Realtors, (which mirrors what we are seeing here) that the areas being hardest hit in California are the outlying areas where there has been overbuilding. The resale market in California’s major markets continues to be strong. In fact, the closer you are to a metropolitan area, the better the sales are. In the million-dollar plus price range, there has been essentially no change from 2006 to 2007.
Wednesday, December 05, 2007
HISTORICAL PERSPECTIVE ABOUT REAL ESTATE CYCLES
Here are some comments analysts have made in the past. We are in the 25th month of a current housing downtown. When you read the comments below just think about what would have happened if we would have listened. History often repeats itself and in this case, the media's projection of the real estate market sometimes misses the mark. And, remember to keep in mind the economic law of inflation.
"The goal of owning a home seems to be getting beyond the reach of more and more Americans. The typical new house today costs about $28,000." - Business Week - 1969
"The median price of a home today is approaching $50,000...housing experts predict price rises in the future won't be that great." - National Business - 1977
"The golden-age of risk free run-ups in home prices is gone." - Money Magazine - 1985
"A home is where the bad investment is" - San Francisco Examiner - 1996
Here are some comments analysts have made in the past. We are in the 25th month of a current housing downtown. When you read the comments below just think about what would have happened if we would have listened. History often repeats itself and in this case, the media's projection of the real estate market sometimes misses the mark. And, remember to keep in mind the economic law of inflation.
"The goal of owning a home seems to be getting beyond the reach of more and more Americans. The typical new house today costs about $28,000." - Business Week - 1969
"The median price of a home today is approaching $50,000...housing experts predict price rises in the future won't be that great." - National Business - 1977
"The golden-age of risk free run-ups in home prices is gone." - Money Magazine - 1985
"A home is where the bad investment is" - San Francisco Examiner - 1996
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