I remember back at the first of the year, we were encouraging sellers that the time was ripe for putting the house on the market, having it staged and priced right. We were writing post after post encouraging buyers to get off the fence and get the home they wanted.

At that time, many sellers were still thinking they could get 2005 or early 2006 prices for their houses. Many were holding on to a home appraisal or a market analysis that was out of date in reality, but not in their minds.

Buyers, at the first of the year, were convinced that prices would drop and interest rates would come down more.

Everybody was doing their best to "hold out for more."

And then the subprime meltdown…

If you look at the graphs on our MLS Trends page which we update every Friday, what do we see??? 

What we see is that the best market we have had, so far this year, was in mid-February to mid-March. That's where the active listings and the pending sales converged to their closest point in the last year.

We are now encouraging sellers to "get it in escrow" by the end of July or be willing to own it into the fourth quarter or longer. The question every seller wrestles with - what's best for me, lowering the price, or paying to hold it for another 3 to 6 months?

As for buyers -

• First Time Buyers - oh the deals that are available! You need a good agent and mortgage broker.
• Move Up Buyers - you may not find better leverage than exists now for years to come. Lose the hang-up on best price for your existing home and think leverage, leverage, leverage!!!

San Ramon, CA Mayor H. Abram Wilson addressed the Realtors Marketing Associatation this morning.

The mayor pointed out that San Ramon, CA has a balnaced budget and a 45% reserve. He and the City Council run the city as a business and do not look to the citizens of our community as a bottomless source of additional dollars.

Mayor Wilson commented on the upcoming (July 1) conversion of the local police force to all San Ramon city employees. This should save the city about $500K a year even after adding six additional officers. There were 148 applicants to fill 58 officer positions and the city feels they took the cream of the crop.

The new badge designed for the police force has the number 1 on it to represent the citizens of San Ramon. The Mayor emphasized that he, the City Council and the police force are servants of the community and that the citizens come first.

The city is considering subsidized housing for police officers out in the Dougherty Valley as a means to establish more of a “police as neighbors” presence in that area.

Speaking of the Dougherty Valley, Mayor Wilson said that he opposes any light rail into the area.

San Ramon rents grounds from the local schools for $1 a year. The city maintains the grounds and after 3pm, when school is out, the parks and playgrounds are open for public use. It’s one of the reasons that San Ramon made the 100 Best Cities for Youth list.

Mayor Wilson spent a good part of his time presenting the status of the new City Center plans to the attendees. The Realtors Marketing Association represents real estate professionals in San Ramon, Danville, and Alamo, CA. This group is very interested in the topics presented by the Mayor and we thank him for taking the time.

New California Laws effective 7/1/07

These New Driving Fines for 2007 are a Hoax. you may have received an email or two reflecting the following:

1. Carpool lane - 1st time $1068.50 starting 7/1/07 (The $271 posted n the highway is old). Don't do it again because 2nd time is going to bedouble. 3rd time triple, and 4th time license suspended.

2. Incorrect lane change - $380. Don't cross the lane on solid lines or intersections.

3. Block intersection - $485

4. Driving on the shoulder - $450

5. Cell phone use must be "hands free" while driving. Ticket is $285. Cell phone use in the construction zone. - Double.

6. Passengers over 18 not in their seatbelts - both passengers and drivers get tickets .

7. Speeders can only drive 3 miles above the limit.

8. DUI = JAIL (Stays on your driving record for 10 years!)

Traditionally, the sales season for housing in the East Bay area peaks about this time of year. August usually witnesses a sharp decline in activity.

What this means to sellers: You need to be in escrow by the end of July. If your property is still on the market in August, you will most likely be caught in a situation of too many competing homes for too few buyers.

Now is the time to reduce the price to make it happen.

Home owners in Contra Costa County are receiving notices from the tax assessor that reflect a drop in home valuation. How often does this happen? Not very often!

This is another reflection of the real estate market correction. If you are thinking of selling to move up to a bigger or newer home – do not fall into the trap of thinking you need to squeeze every dollar possible out of your existing property.

The bigger financial impact will be getting the best deal possible on your new purchase. In this value conscious market – you can’t have both.

If your home has been on the market for 30 days with no offers – the market is rejecting your price point. All of the marketing exposure in the world is not going to turn the situation around.

The first 15 days a home is on the market is the best window of opportunity for selling a home. If there is no interest in the first 15 days – something needs correction.

If your home is just sitting there with no action and you need to sell it to get on with life – now is the time to take action.

This past week has been a lesson in priorities. Last Thursday, I took Craig and Tracey to the Oakland airport for an early flight to Denver. They were off to a wedding in Aspen.

By 8am, I was at the Blackhawk Country Club for the Realtors Marketing Association meeting. Each year the Blackhawk Country Club in Danville, CA hosts the RMA. Blackhawk CC provides a complimentary breakfast for all attendees and they use the opportunity to update us on what is happening at Blackhawk.

About halfway through the presentation, I received a call from a dear friend from the emrgency room at San Ramon Regional Medical Center. Since that time, I have been going to the hospital twice a day, feeding the cats and trying to stay on top of all of The Harper Team business, while my brother and sister-in-law were rubbing elbows with the rich and famous.

It’s going to take another day or two before things return to some semblance of normal.