Landmark north Berkeley property up for sale

Jan 27th, 2010
by Tracey Taylor.

Berkeleyside.com

Anyone wanting to get their hands on an architecturally distinctive property in Berkeley — and with $3,680,000 in their pockets — is in luck with the recent arrival on the market of this multi-unit complex on Codornices Road.

Designed by Henry Gutterson in 1924, the nine units are across the way from Bernard Maybeck’s Rose Walk. Four two-story duplexes face a garden. A separate cottage with a large deck faces Codornices Road near Rose Garden. Together they were designed as an integrated urban community bordering a public pedestrian path.

Because the buildings are landmarked, property tax relief is available for the buyer who takes them on. The listing is with Berkeley Hills Realty. For details and a photo gallery visit the Rose Walk Complex website.

Henry Gutterson graduated from UC Berkeley’s School of Architecture in 1905 and attended the Ecole des Beaux-Arts in Paris. His major projects include houses in St. Francis Woods, San Francisco and the school building for the First Church of Christ, Scientist in Berkeley. He also designed several homes in Berkeley and worked with Bernard Maybeck on the Principia College Library in Illinois.

Click here to Contact Arlene Baxter, the Rose Walk listing agent.

Some Home Buyers Can't Afford to Wait for the Spring Market

An article by Matt Carter in today's Inman News titled, FHA hiking premiums this spring, details FHA changes and mentions two other events which could impact our Spring real estate market.

The Federal Housing Administration won't raise the 3.5 percent minimum down payment requirement for mortgages it guarantees as long as borrowers have FICO scores of 580 or better.

Beginning early this summer, however, borrowers with credit scores below 580 will be required to make down payments of at least 10 percent in order to participate in FHA's mortgage insurance program.

This spring, the Obama administration also plans to raise the upfront mortgage insurance premiums paid by all FHA borrowers to 2.25 percent, up from 1.75 percent now.

The increase -- some of which may later be shifted to annual premium payments -- will help build FHA capital reserves back to statutory minimums and bring back private lending, FHA Commissioner David Stevens said today.

Mr. Carter goes on to mention two other events that could have an impact on home sales

The Federal Reserve will wind down a $1.25 trillion program at the end of March that's helped keep mortgage rates low, and the recently expanded homebuyer tax credit expires for buyers not under contract by April 30 and closing by June 30 (see story).

Although the changes may affect a small percentage of individual buyers, Berkeley Hills Realty retains faith in our local market; a market which has remained stronger than the national averages. This belief will continue to be supported by the high number of cash buyers in the bay area (see story). In addition, Carter quotes NAR Chief Economist Lawrence Yun as stating that he does not expect the "modest tightening" announced today will stall the housing market recovery, given that interest rates remain near historic lows and that the homebuyer tax credit will remain in effect during the first half of the year.

"Any tightening will knock some would-be buyers out of the potential pool," Yun said. "But at the same time, any lax underwriting or FHA insolvency can have more significant future negative ramifications for the housing market."

Useful links:
U.S. Department of Housing and Urban Development Press Release: FHA Announces Policy Changes to Address Risk and Strengthen Finances
Berkeley Hills Realty website
Berkeley Hills Realty tools for home buyers
Berkeley Hills Realty agents

Curbing Lawn Lust

From the National Association of Realtor's Green REsource Council

A lush green lawn has long been prized in the American culture and routinely regarded as a selling point among real estate practitioners.

But such lawn lust is getting a second look by those committed to sustainability.

After all, that green carpet has serious environmental consequences when you consider the resources it devours and the chemical it emits in order for it to flourish. Those include water and gas and pesticides and herbicides that eventually run off and pollute waterways and disturb the aquatic ecosystem. Such chemicals also aren't healthy for adults, kids or pets.

"Unless your shiny green lawn can thrive without supplemental irrigation, gas-powered mowing, fertilizer and without spraying, that lawn of yours is leaving a pretty dirty footprint," comments Billy Goodnick, a Santa Barbara, Calif.-based landscape architect, educator and the writer behind Fine Gardening magazine's Cool Green Gardens blog.

Those are among the reasons that groups like the Lawn Reform Coalition (www.lawnreform.org) and the Sustainable Sites Initiative (www.sustainablesites.org) have emerged to promote more sustainable landscapes.

The Lawn Reform Coalition, for instance, includes gardening and environmental advocates from across the country who have joined forces to promote change in the American lawn. "The Lawn Reform Coalition wants people to rethink the idea that every home needs a sprawling, unimaginative patch of green," says Goodnick, a coalition member. "We’re working to quiet the siren song of the ‘perfect’ lawn and providing practical resources for creating beautiful, low-maintenance, environmentally-friendly landscapes."

And the Sustainable Sites Initiative has developed a performance benchmarking system for sustainable landscapes after recognizing that green building rating systems offer excellent tools for new and existing buildings, but relatively little for things beyond a building’s skin.

The group is a partnership of the American Society of Landscape Architects, the Lady Bird Johnson Wildflower Center at The University of Texas at Austin and the United States Botanic Garden, and its rating system applies to numerous environments, including retail centers, subdivisions, corporate campuses and single-family homes.

A question that may emerge is, "So what? What do lawns have to do with green housing."

A lot.

"You can’t call a home 'green' if it’s surrounded by a sink-hole of resource-greedy, nature-fouling lawn. A truly green lawn is one that doesn’t require a lot of inputs, like potable water and fossil fuels, and doesn’t produce waste or polluted run-off," says Goodnick.

If you or your clients are considering a lawn replacement or want to transition to a more sustainable landscape, resources and information abound.

Goodnick offers four paths to address lawn reform. They are:
1. Eliminate all turf and replace it with useful improvements, like lounging areas, paths, rain gardens or orchards.
2. Convert from resource-greedy varieties of grass to locally-adapted species, like buffalo grass or native sedges. Most use fifty percent less water and require less fertilizer and care than traditional grasses.
3. Keep lawn space just for recreation, and if you absolutely need a lawn, shrink it to save water, time and money and to reduce its environmental impacts.
4. Grow food. Although vegetables require about as much water as a typical lawn, the return on your efforts is immeasurably superior.

Additional sources of information include:
Berkeley Hills Realty has agents who specialize in green real estate as well as a collection of eco-friendly resources on the Green House page.
The EPA's GreenScapes program provides environmentally-friendly landscaping solutions to preserve natural resources and prevent pollution.
Calculate the resources a lawn is consuming
Safelawns.org offers a series of videos on everything from aerating the lawn to composting, mulching and weed control

C.A.R. H.A.F. Mortgage Protection Program Extended

EXTENDED INTO 2010!
Due to the popularity of this program, the qualifying period has been extended to December 31, 2010 or when allocated funds have depleted, whichever occurs first.

On April 2, 2009 the Housing Affordability Fund launched a new program designed to provide peace of mind to first-time buyers who are hesitant to enter the housing market due to concerns about potential job loss, and subsequently being unable to meet their monthly mortgage obligations. Qualifying buyers can receive up to $1,500 a month for up to six months in the event of job loss, a qualified co-buyer can also receive a $750 benefit for up to six months to help pay the mortgage.

TO QUALIFY FOR THE MORTGAGE PROTECTION PROGRAM APPLICANTS MUST:
· Be a first-time home buyer – someone who has not owned property in the last three years
(includes co-buyer).
· Open escrow April 2, 2009, or later, and close on or before December 31, 2010
(purchase agreement cannot be dated before April 2, 2009)
· Use a California REALTOR® in the transaction (fee for referral does not qualify)
· Purchase the property in California
· Be a W-2 employee (cannot be self-employed)

YOUR REALTOR® CAN PRE-QUALIFY YOU FOR THE MORTGAGE PROTECTION PROGRAM!
Due to the demand for the program, CAR has created a pre-qualification process that will ensure you get a policy if you meet the program qualifications and closes escrow before December 31, 2010.
Just ask your agent for an application and have he/she submit it with a copy of the qualifying executed purchase agreement – your file will be approved pending the receipt of the HUD-1 Closing statement indicating the close of escrow for your buyer.

Click here to meet a qualified Berkeley Hills Realty Agent.

· Download the Revised MPP Application followed by a list of Frequently Asked Questions.
( This must be submitted by an active California REALTOR® )
· Click here to review cynoSure Financial, Inc.'s program Terms & Conditions and
sample welcome packet.

Persimmon Pudding

Courtesy of Barbara Conheim, Berkeley Hills Realty

1 cup pureed persimmons
2 teaspoons baking soda
1/4 pound butter (or margarine) at room temperature
1 1/2 cups sugar or 1 cup honey
2 eggs
2 teaspoons vanilla
1 teaspoon lemon juice
2 tablespoons rum (or brandy, or milk)
1 cup flour
1 teaspoon cinnamon
1/4 teaspoon salt
1/2-1 cup chopped nuts
1 cup raisins

Put persimmon puree in small bowl. Stir in baking soda (mixture will stiffen). Set aside. (The following steps may be performed in a food processor). Cream butter and sugar in mixing bowl. Add eggs, vanilla, lemon juice and rum; beat well. Add flour, cinnamon and salt; stir to blend. Add persimmon mixture; beat until well mixed. Stir in nuts and raisins. Grease the inside of a two quart mold. (A Coffee can may be used.) Place the mold on a rack in a deep baking pan or pot. Add water to the baking pan or pot until it is halfway up the mold. Remove mold and fill with pudding mixture. Close mold with well fitting lid or seal tightly with foil. Bring water to boil over medium heat. Immerse the mold the mold in boiling water and cover. Steam for 2 to 2 1/2 hours, test with toothpick. Remove mold from baking pan or pot, place on a rack to cool. With blunt knife or suitable implement, free pudding from mold and turn onto serving plate.

Note: This recipe appears in From Our Home to Yours, A Collection of Favorite Recipes
from the Berkeley Association of Realtors. The cookbook is available for purchase from the Berkeley Association of Realtors at a cost of $15.

Cash Buyers Flood the East Bay Luxury Home Market

At a recent Berkeley Hills Realty office meeting, the buzz was about a flood of cash buyers in our marketplace. Grapevine scenarios aside, we wanted to take a closer look at the actual data. After reviewing data for all of the homes listed over $1,000,000 (which have closed escrow within the last three months) we discovered a remarkably high percentage were all cash buyers. Below is a table which includes the researched sales.*

Through a search of tax records we were able to determine which homes had a recorded first deed of trust, which evidences a loan on the property. All recorded loans were noted. For the properties which did not have recorded loans, we contacted the listing agents directly to confirm that the offer was presented as "all cash." Our research confirmed that of the 42 homes listed in Oakland and Berkeley, 13 were presented with all cash offers. 31% of the buyers paid all cash. Nearly one in three homes in this demographic is selling to an all cash buyer. Many others had down payments that were greater than half the sale price.

Many of the homes received offers within the first weeks of marketing. As a result, some homes sold for more than their asking price. Buyers have returned, but they are not relying on government incentives to do it. The Economic and Housing Stimulus plans have not helped the upper end of our market. First time buyer tax credits and FHA backed conforming loan programs most often do not apply to homes sold over one million dollars. Currently, jumbo loans are more difficult to obtain and often have undesirable terms. There is nothing in the current bailout that supports the luxury real estate market. Cash has stepped into this void.

Local Realtors are still reflecting on the effect the influx of cash offers will have on property values in the area. Some sellers are willing to significantly discount the price of their property for the benefits of a sure thing and a quick close of escrow. In multiple offer situations, often an "all cash" offer is accepted even though it is not the highest offer the seller has received. Many believe cash is keeping neighborhood values artificially low.

Others feel that cash transactions help support property values because the post-mortgage-meltdown loan process often diminishes value. Banks are exceedingly cautious and our unique housing stock is difficult to appraise. Appraisers have trouble finding comparable homes which fit the lenders confined criteria. Buyers often renegotiate the contract price to reflect the lender's low appraisal.

Pending sales are up 20% over last year in the national market (see our last post.) More inventory is expected as the recession begins to create its own wave of foreclosures in the upper end, a market which had been the least affected by the original mortgage crash. In balance, any mix of buyers will help our housing recovery as faith in the market is restored and more homes exchange hands.

Address	Original Price	Sold Price	%	DOM
BERKELEY
1149 Euclid	$1,200,000	$1,080,000	90%	108
65 SOUTHAMPTON AVENUE	$1,295,000	$1,300,000	100%	9
3064 BUENA VISTA WAY	$1,249,000	$1,100,000	88%	40
634 WILDCAT CANYON RD	$1,150,000	$1,225,000	107%	15
649 CRESTON RD	$1,195,000	$1,178,500	99%	12
1062 SPRUCE ST	$1,265,000	$1,225,000	97%	14
1331 OXFORD ST	$1,090,000	$1,260,000	116%	16
1456 CAMPUS DR	$1,150,000	$1,025,000	89%	15
663 VINCENTE AVE	$1,075,000	$1,177,000	109%	9
715 THE ALAMEDA	$1,600,000	$1,492,500	93%	39
257 HILLCREST RD	$995,000	$1,070,000	108%	10
435 PANORAMIC WAY	$1,350,000	$1,169,000	87%	76
2914 PIEDMONT AVE.	$1,800,000	$1,544,000	86%	69
14 THE UPLANDS	$1,340,000	$1,147,000	86%	89
60 THE UPLANDS	$1,490,000	$1,450,000	97%	28
2970 AVALON AVENUE	$2,200,000	$2,100,000	95%	20
2900 GARBER ST	$1,075,000	$1,110,000	103%	18
OAKLAND
2098 LEIMERT BLVD	$1,295,000	$1,226,000	95%	13
984 LONGRIDGE RD	$1,250,000	$1,025,000	82%	107
1119 CLARENDON CRES	$1,195,000	$1,174,000	98%	20
1074 ASHMOUNT AVE	$1,325,000	$1,292,000	98%	16
408 EUCLID AVE	$929,000	$1,007,000	108%	9
5670 CASTLE DR	$2,750,000	$2,355,000	86%	354
6201 WESTWOOD WAY	$1,650,000	$1,465,000	89%	137
6407 GWIN CT	$1,849,000	$1,560,000	84%	137
6026 PINEWOOD RD	$1,250,000	$1,185,000	95%	93
5621 FLORENCE TER	$1,300,000	$1,250,000	96%	50
6070 MAZUELA DR	$1,375,000	$1,300,000	95%	13
631 MOUNTAIN BLVD	$1,049,000	$1,060,000	101%	1
1907 GASPAR DR	$1,080,000	$1,060,000	98%	11
9047 Broadway Terrace	$1,595,000	$1,595,000	100%	0
676 FLORENCE AVE	$1,199,000	$1,150,000	96%	38
5351 LAWTON AVE	$1,295,000	$1,200,000	93%	45
5341 GOLDEN GATE AVE	$1,625,000	$1,240,000	76%	55
5901 MANCHESTER DRIVE	$1,550,000	$1,460,000	94%	32
40 SONIA ST	$1,125,000	$1,062,000	94%	14
5336 SHAFTER AVE	$995,000	$1,110,000	112%	9
157 KIMBERLIN HEIGHTS DR	$1,395,168	$1,201,268	86%	108
13835 SKYLINE BLVD	$1,650,000	$1,425,000	86%	94
14280 SKYLINE BLVD	$1,195,000	$1,080,000	90%	52
5651 Colbourn	$1,199,000	$1,135,000	95%	48
614 ALVARADO RD	$1,495,000	$1,495,000	100%	13
Totals	$1,360,337	$1,280,125	95%	49

*Note: We have left the financial research off this chart to protect the privacy of the individuals involved. Data is pulled from the Multiple Listing Service. Berkeley Hills Realty may not have participated in the sale.

Editor's note: Luxury homes in Berkeley and Oakland are not unique in attracting cash buyers. A recent home located on Carleton in Berkeley received seven offers, five of which were all cash. This home was listed for $425,000.

Pending Home Sales Rise for Record Eight Straight Months

Pending home sales rose again, marking eight consecutive monthly gains – the longest streak since measurement began in 2001, according to the National Association of Realtors®. The Pending Home Sales Index rose 6.1 percent to 110.1 from a reading of 103.8 in August, and is 21.2 percent higher than September 2008 when it stood at 90.9. The gain from a year ago is the largest annual increase on record, and the index is at the highest level since December 2006 when it was 112.8. Lawrence Yun, NAR chief economist, said the momentum is understandable. “What we’re witnessing is a rush of first-time buyers trying to beat the expiration of the tax credit at the end of this month,” he said. “Home values will stabilize sooner rather than over-correcting. That, in turn, will mean wealth stabilization for the vast number of middle-class families and lay the foundation for a durable economic recovery.”

Read the Release