Author Archives: Sophia Niu

Dear Friends,

I hope you and your families are continuing to stay well. 7 new properties came on the market this week and they are included below. We are now seeing properties being priced closer to seller expectations.

As you may know, the State of California and Alameda County have deemed Realtor services as Essential. We are allowed to show only vacant homes in-person when we are not able to do it virtually. For owner occupied homes, we have to rely on photos/videos provided by the Seller.

If you are interested in finding out more information about how our business is conducted in a safe manner or if you are curious about these homes or the many properties on the “off-market” let me know.

Stay well,
Sophia

FAQs

How are mortgage rates?

This week, rates for a 30 year fixed Conventional loan with 20% down were around 3.25%.

What’s on the market today in Alameda?

5 new listings (on the market under 7 days)
19 Active listings (on the market for 7+ days)

• 5 properties have been on the market for 7-14 days
• 4 properties have been on the market for 20-30 days
• 5 properties have been on the market for 31-40 days
• 5 properties have been on the market for more than 40 days

How do things compare to last year?

As we compare things to how they were this time last year, the sharpest contrast is the number of properties sold. 7 properties that closed escrow (6 for over list price and just 1 for under list price). During this same week last year, 12 properties closed in Alameda (8 over list price, 2 at list price and 2 under the list price).

What do you think will happen to housing market in the next few months?

My friend Jay Voorhees, of JVM lending, is someone I trust when it comes to forecasting. Here’s what he anticipates will happen. Points #1 and #2 are happening now. #3 and #4 are his predictions for when things move towards normal.

1. Flexible Sellers: Sellers who need to sell are suddenly much more flexible, so it seems that there are deals to be had for qualified buyers.
2. Low Conforming Rates: Conforming and FHA interest rates are at all-time record lows so it is a great time to lock in a super low rate.
3. Demographics: I blog about the coming “boom” in housing relatively often. This is b/c the demographics will not change no matter what happens to our economy. The number of household formations will vastly exceed the number of new homes coming on the market, so prices will have to rise at some point b/c demand will significantly exceed supply.
4. Inflation: We have not seen inflation for years and will not for several months. But, as Rich Karlgaard (from Forbes) pointed out in this recent column, when the Fed creates $4 trillion of new money out of thin air (like they just did), inflation seems all but inevitable at some point. And one of the best inflation hedges around is residential real estate.

Jay’s thoughts and projections are interesting. The shift that has started in the housing market will continue to change the landscape of buying and selling. How and when we will rebound is something still too soon to tell.

Friends, have a great week. To those celebrating Passover or Easter, have a wonderful holiday!

Sophia

Dear Friends,

With the Shelter in Place order, Realtors are understandably prohibited from holding Open Houses and Brokers Tours. I will endeavor to keep you updated on what’s on the market each week. Let’s continue to observe how the housing market reacts to the effects of the COVID-19 crisis.

The health and well-being of my community is my highest priority. Please stay well, stay safe and stay home.

~Sophia

FAQs

How much market activity has there been in the last 2 weeks?

There has definitely been a slow down of new properties to hit the market, but many of these properties are showing up on the “off market”. If you are interested in know about these, please respond to this message. Some sellers are making available videos that will allow me to show these to you virtually.

     Market Activity 3/15/2020-4/3/2020 in Alameda

• 13 new listings
• 1 Back on the Market
• 13 Properties went Pending
• 15 Properties Sold
• 3 Withdrawn
• 5 Cancelled

Compared with this same time last year, the activity is definitely less this year. For example, this time last year there were 25 Properties Sold between 3/15/19-4/3/19 vs. 15 Properties Sold this year.

How are prices holding up since the SIP order?
While some properties are selling at or above seller expectations, others are seeing 10-15% less than they expected.

What are mortgage servicers doing to help those who are experiencing hardship at this time?
Companies are offering Forebearance programs. I advise calling your mortgage servicer to find out the details and possible penalties. Here’s a great reference I got from a lender friend:

• Who Qualifies for Forbearances? Anyone suffering financial hardship b/c of the COVID-19 crisis. Some servicers will take the borrower’s word but many will request “proof” of some sort. Borrowers who are not in financial peril should be careful about claiming they are, as they risk fraud charges.

• How Do I Obtain a Forbearance? Borrowers need to contact their servicer and apply for it. They should not simply stop making payments.

• Do I Have to Pay Back Missed Payments? Yes – without a doubt. Some servicers will want all of the missed payments repaid as soon as the forbearance ends; some will want to restructure entire loans; and some will want to set up repayment over a period of months. Servicers will most likely try to work out the repayment system when borrowers apply for forbearances.

• Does It Matter What Type of Mortgage I Have? Yes. Forbearances will be easier to obtain for conforming (Fannie/Freddie), FHA and VA loans. Jumbo and non-QM borrowers, however, will have a more difficult time obtaining forbearances b/c the government does not have as much influence over those channels.
  How Will a Forbearance Affect My Credit? If borrowers obtain a formal approval for a forbearance, it should not affect their credit. If borrowers just stop making payments, however, without getting an approval from their servicer, it will likely impact their credit – severely. There is a caveat here too: while credit reports will not show late payments when borrowers get their forbearances approved, future lenders will be able to see if a borrower obtained a forbearance in many cases, and that could affect credit decisions. This is something we saw with loan modifications after the 2008 crisis.

• Should I Go Through With My Purchase or Refinance If I Am Likely to Seek a Forbearance? Absolutely not. Not only will it be extremely difficult for borrowers to obtain a formal forbearance approval for a recently funded loan, missing payments on newly funded loans put the originating lender in extreme financial peril.

Allowable Realtor Duties

In the last 2 weeks, allowable Realtors’ duties have changed. We have now been deemed (as of 3/31/20) an essential service however many restrictions still thankfully apply.

• No Open Houses, No Broker Tours
• If at all possible, showings should be done Virtually.
• If a virtual showing is not feasible, entrance into a property may be made under the following conditions: by appointment with no more than two visitors at a time residing within the same household or living unit and one individual showing the unit (except that in-person visits are not allowed when the occupant is still residing in the residence). This has been defined by the Counties as allowing entrance into the property only if it is vacant.

The health and safety of my community is my highest priority. My advice to both buyers and sellers right now is to wait, if at all possible. Because showings are still mostly virtual, sellers will not be able to fully market their homes. For buyers, there are many delays to be expected for transactions while inspectors, appraisers and lenders have less bandwidth and availability. If the home is occupied by either seller or tenant, in-person showings are still prohibited.

With this in mind, I know that there are buyers and sellers, even now, who still need to move forward with their individual real estate needs. Let’s talk if you find yourself in this category.

As always, if there is anything I can do to be of service let me know.

Be well,
Sophia

I wanted to give you an update on how things have been in the Real Estate Industry this last week. Like many other businesses, ours has been significantly limited as Realtors are unable to:

-meet with clients face to face
-show properties (unless virtually)
-host open houses
-conduct visual inspections

The official order for us to eliminate our face-to-face activities came from Governor Newsom and the California Department of Real Estate late last week. I have been relieved that our governing bodies have mandated all of us to be safe and responsible community members.

Transactions are still continuing to go through, albeit, slowly. Lenders are experiencing some delays with appraisals and rates are understandably fluctuating as global markets are experiencing much uncertainty. Virtual showings are certainly possible but I am not sure how many buyers will want to commit to purchasing a property without having actually set foot in it.

My job, until the shelter-in-place order is lifted, is to:

-keep you posted on the latest activity in the market
-answer any questions you may have about buying and selling at this time or when things go back to a more normal pace

Time will tell what the housing market will do in the coming weeks and months. I will continue to monitor the activity of the housing market and report them to you. If you are a recipient of Real Scout (a service that will keep you posted on the housing inventory), you will be updated on the latest activity. If you would like to start receiving Real Scout, feel free to respond to this message.

As always, if there is anything I can do to be of service let me know.

Be well and stay safe,
Sophia