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

How to rent your home from Fannie Mae

C.A.R. Mortgage Update

Fannie Mae last week announced a new Deed for Lease™ program. The new program allows borrowers to voluntarily transfer their property back to the lender and then lease back the house at market rate. The lease period is for up to 12 months, with month-to-month contract extensions after that period. The program is designed for borrowers who do not qualify for or have not been able to obtain other loan-workout solutions, such as loan modifications.

To participate in the program, borrowers must live in the home as their primary residence and must be released from any subordinate liens on the property. Tenants of borrowers in this circumstance also may be eligible for leases under the program. Borrowers or tenants interested in a lease must be able to document that the new market rental rate is no more than 31 percent of their gross income.

Homeowners thinking of participating in the Deed for Lease™ program should visit Fannie Mae’s loan look-up web site at http://loanlookup.fanniemae.com/loanlookup/ to see whether their loan is owned or guaranteed by Fannie. Mortgages backed by the Federal Housing Administration and other government agencies are not eligible for the Deed for Lease ™ program.

To read the full story, please click here:
http://blogs.wsj.com/developments/2009/11/06/qa-how-to-rent-your-home-from-fannie-mae/

To view additional articles, about new home loans, loan modifications, or mortgage refinances, please visit the following:

Housing plan reaches 1 in 5 borrowers

Fewer banks tightened lending standards last quarter, Federal Reserve says

Rates on 30-year loans remain below 5 percent

Home Buyer Tax Credit Extended

Following the Senate’s favorable vote yesterday, the U.S. House of Representatives just voted 403 to 12 to extend the home buyer tax credit, expanding the parameters to include existing homeowners and not just first-time buyers. We expect President Obama to sign the legislation in short order.

As it now stands, the federal tax credit will be extended through April 30, 2010, with a 60-day extension if a binding contract is in place prior to the deadline. First-time home buyers will continue to be eligible for a tax credit of up to $8,000, while existing homeowners will be eligible for a reduced credit of up to $6,500. To qualify for the $6,500 credit, existing homeowners must have lived in their current residences for at least five years. The bill also increases the qualifying income limits from $75,000 for single tax filers and $150,000 for joint filers to $125,000 and $225,000, respectively. The purchase price of the home is capped at $800,000 in both instances.

Under additional provisions included in the bill, taxpayers can claim the credit on purchases completed in 2010 on their 2009 income tax returns. The legislation maintains the provision that home buyers do not have to repay the credit provided the home remains their primary residence for 36 months after purchase, and waives this requirement for active duty military personnel who move due to a military order.

Nationwide, more than 1.4 million first-time home buyers were given the opportunity to become homeowners as a result of the Federal Tax Credit for First-time Home Buyers. We expect that number to increase dramatically in the months ahead with this new legislation in place.

James Liptak
2009 President
CALIFORNIA ASSOCIATION OF REALTORS®

City of El Cerrito Street Repairs Conflict with Stege Sewer Lateral Ordinance

Thanks to voter approval of Measure A: the El Cerrito Pothole Repair, Local Street Improvement and Maintenance Measure, the City of El Cerrito is in process of much needed repair to its city streets. However, with improvements underway, real estate agents have noticed a conflict with an existing Sewer Lateral Ordinance.

El Cerrito (along with Kensington and part of Richmond) is included in the "Stege Sanitary District." In 2005, the District revised its Sewer Lateral and Compliance Policy, and now requires property owners to obtain a “Certificate of Compliance” upon the sale of property, prior to the close of escrow. Base on the the ordinance's definition of a lateral, compliance includes the connection to the main sewer. The main sewer in El Cerrtio often lies in the center of the newly paved streets.

According to Suzanne Iarla, Public Information Specialist for the City of El Cerrito, "this is a multi-agency issue." In short, the Stege Sanitary District would like home owners to comply with their 2005 ordinance, and the City of El Cerrito Public Works Department would like to maintain the integrity of the newly refurbished city streets.

Stege's official stance:

Because the City places a moratorium on recently paved streets that prohibits digging through new pavement for up to five years, a potential conflict exists between the City’s moratorium and Stege’s requirement to have a sewer lateral inspected and repaired (if necessary) before a house is sold.

If you have any existing sanitary sewer lateral problems or plan to sell your house in the next five years, now is the time for you to do a sewer lateral inspection and any necessary repair/replacement work before the street is resurfaced.

I spoke today with Rex Delizo, from the Engineering Department at Stege. His office would prefer that homeowners get proactive and repair the sewer laterals before the city street crews arrive. Barring such cooperation, he outlined three basic options for compliance in instances where the city's moratorium takes effect:

1. Video the sewer lateral and if the portion in the street passes, you can make all needed repairs to the line on the subject property.
2. If the street section is in disrepair, you can opt to do the accessible portion now, and agree to complete the remaining section in the street once the moratorium has passed.
3. Talk to Stege about new techniques which allow for full replacement and compliance without disrupting the newly resurfaced street.
   

For more information contact:

Stege Sanitary District
7500 Schmidt Lane
El Cerrito, CA 94530-0537
(510) 524-4668 Office
(510) 524-4697 Fax
(510) 524-4667 24-hour

City of El Cerrito Public Works
10890 San Pablo Avenue
El Cerrito, CA 94530-2323
(510) 215-4300 Office
(510) 215-4319 Fax