We remember how the holiday was like when we were children, and how it was when we had our family and spent the holiday with our children – In our case Linda with her boys and parents and I with my son and daughter and with my parents, as Linda and I didn’t join our two families together until our children were well into their late teens. We reflect on the holidays we spent in Connecticut, and Lake Tahoe, as well as holidays with our grandson, and holidays with our adult children. Good memories all.

We hope that many of you are also able to spend some time in reflection during the holidays remembering the good times of past holidays.

In addition to thinking about our family, Linda and I also remember all of the friends we have all around this great country of ours, and hope that each and every one of them is in good health, and able to be with family and friends during the holiday season. We thank you for your friendship.

May you and yours have a very Merry Christmas, and a Happy and Health New Year.

Doug and Linda

According to a recent RealtyTrac blog post, the metropolitan areas with the highest numbers of short sales in the 2^nd quarter of 2011 were:

1.Los Angeles
2. Phoenix
3. Cape Coral – Fort Myers, Florida
4. Oxnard – Thousand Oaks – Ventura, California
5. Reno – Sparks, Nevada
6. San Francisco
7. San Jose
8. Portland
9. Atlanta
10. Milwaukee

My colleague responded to him by saying “Pigs are not flying . . . yet!”

While the national media is certainly proclaiming a buyer’s market, that news has not yet filtered down to our local market.

Historically, a buyer’s market begins when inventory crosses over the 6 month supply mark.

We are currently way under that mark, meaning we are still in a seller’s market. However, that doesn’t mean that sellers get to ask whatever they want for their homes. In reality, prices slipped for a good part of 2011 but in classic supply-vs.-demand form, recent declines in inventory are beginning to push values up once again, and in some cases we are seeing multiple offers.

Average list price is down 9.6% in 2011 vs. 2010. Average sold price is down 3.4% 2011 vs. 2010. Inventory of homes for sale is down 21.8% 2011 vs. 2010 Months supply of inventory is down from 5 months in 2010 to 3.1 months in 2011, a drop of 37.8%.

Buyer or seller, it doesn’t matter. There are sellers out there with good properties, priced properly, available to purchase and there are good, qualified buyers out there looking for a property to buy.

Historically, home values in a normal market tend to appreciate by 2-5 percent annually.

Congratulations to the 8 brothers and sisters of the Ernst Family Trust on the sale of your family home in Pleasant Hill. I was pleased that we were able to sell it with only one day marketing time. The young couple that bought it is looking forward adding their own family traditions to this wonderful property.

For 2013, a modest 3% – 4% gain should be seen.

The reason for this shift is the price-to-income ratio. Houses are affordable again. After soaring to about 4 to 1 during the early 2000’s, the ratio of median home price to median household income is new well below its long-term average of 3-to-1. Super-low interest rates will also help fuel this shift.

Foreclosure numbers will start to level off, though with 3 ½ million properties either already in foreclosure or soon to be in foreclosure, this will take a bit longer.

Sales will creep up to 5.5 million in 2012, an increase of 4% over the most recent low, his this year.

Another interesting factor . . . Demand from abroad will help The Canadians are buying in Phoenix; the Brazilians, investing in Miami and the Chinese are investing in Las Vegas, California and NYC. These foreign investors all feel that there is good value to be found where the declines have been the greatest.

U.S. investors are also diving into the market, sensing opportunity in a rental market heated up be crowds of former homeowners . . . many of them foreclosed on. . . and would be owners waiting to see if prices will go lower.

THE MARKET AT A GLANCE

CURRENT INTEREST RATES