Photograph by Paul Myers

Many real estate agents find holidays a great time for home sales. Cheerful, lighted decor in the front yard can only help.

Holiday season a good time to buy

By Jean Newton

It's official. The financial experts are now describing the economy as a recession. While everything seems to be pointing downward, including a slight downturn in recent home sales statistics, there are some bright spots in the real estate market. Interest rates remain low, and this holiday season looks like a good time to buy.

"Some people say this time of year produces a holiday slowdown," said David Barca, vice president of Real Estate Services for zipRealty.com Inc. "Personally, I have always found November and December to be busier than expected. For instance, we had 12 requests to visit properties on Thanksgiving Day."

Heading into the holiday season this year is a bit different than past years since the Sept. 11 events have created a far-reaching impact on everything from consumer confidence to unemployment. According to a National Association of Realtors white paper on the economic consequences of the attack on America, housing activity will undergo a decline from record-setting levels during the previous year. Experts were already predicting a return to a more normal market after the dot-com bubble burst and the latest sales figures show numbers more in line with the pre-bubble market.

"Today's Bay Area market is actually pretty normal. The market in 1999 and 2000 was overly rambunctious. We expect the Bay Area market to stay on an even keel through the rest of the year and on into 2002," said Mike Ela, president of DataQuik, a company that monitors real estate activity nationwide and provides information to consumers, educational institutions, public agencies, lending institutions, title companies and industry analysts.

Data Quick statistics showed Bay Area median home prices on a small decline for the first time in six years with the median price at $366,000 in October, dropping by 0.9 percent from a year ago, when the median price was $369,000. The median peaked at $386,000 last March.

With a total of 7,867 new and resale houses and condos sold in a nine-county region in October, figures were up 9.2 percent for this September but down 19.6 percent from October of last year. However, the sales count in October was very close to a 7,825 average for all Octobers during the last 14 years.

Dr. David Leareah, chief economist for the National Association of Realtors, said, "Three weeks after the Sept. 11 attacks, some of our major brokers were reporting that sales had recovered to 95 percent of pre-attack levels. While we have some way to go before we reach record activity again, this demonstrates the strong demand and favorable affordability conditions that exist in today's housing market," he said. "Some of last month's recovery results from transitions that were postponed from September, and sales might ease a little in November, but they should fluctuate in a fairly narrow range through the first quarter of next year."

Unemployment and weakened consumer confidence have become key factors in the health of the economy and potentially could have a negative impact on home sales activity. But interest rates continue to be a bright spot with 30-year fixed mortgage interest rates averaging 6.62 percent during October 2001, down from 7.80 percent in October 2000, according to the Federal Home Loan Mortgage Corp. Adjustable mortgage interest rates averaged 5.28 percent in October 2001, compared to 7.23 percent in October 2000.

While retailers hold their breath to see if consumers will spend their money this season, Realtors are encouraging buyers to be confident about the real estate market. Some Realtors find the holiday season one of their busiest times during the year. Others are surprised by the current demand.

"I thought I would be slow, but I am extremely busy. I expect it will continue through the beginning of next year," said Margaret Lockwood with Coldwell Banker in Woodside.

One of the reasons this time of year is considered slow may be that many agents take time off themselves during the holidays. Additionally, sellers often think it's not a good time to open their homes. But, Barbara Roark with Campi Properties in Los Altos said, "I have historically found that with the slower home market during this period, there are still buyers out there. I think the smaller availability of inventory moves the homes that are difficult to sell, and the ones that are nice are still getting multiple offers. In addition, the homes for sale are usually decorated for the holidays and show so beautifully."

Nancy Adele Stuhr, a broker associate with Coldwell Banker in Los Altos, believes the holidays are "absolutely" a good time to sell. "Holiday buyers are particularly serious, committed and focused. Many people want to close escrow by the end of the year. This is an excellent time for move- up buyers looking for a larger home, and many investors buy at this time of year."

Since some uncertainty still exists with the economy, Realtor Leannah Hunt of Coldwell Banker in Palo Alto said, "Interest rates will only go up, so it is best for buyers to try and take advantage of the current rates. One never knows what the future may bring--so if sellers are motivated to sell--now is the time."

Coldwell Banker Toys for Tots Sponsor

Coldwell Banker offices will serve as official collection centers, Nov. 26 to Dec. 21, for the annual Toys for Tots campaign in conjunction with the United States Marine Corps.

Designed to provide holiday joy for needy children, this season marks the 15th year Coldwell Banker has participated in the collection and distribution of new, unwrapped toys.

"For many children, the magic of the holiday season is only a dream," said Avram Goldman, Coldwell Banker Northern California's president and chief operating officer. "With the community's help, we'll be able to provide the needy children of our community with a memorable holiday experience."

Residents can drop off new, unwrapped toys at the following Santa Clara county Coldwell Banker offices:

Los Gatos
325 Los Gatos-Saratoga Road
408.395.1500

Sunnyvale
761 E. El Camino Real
408.773.9292

Members of the United States Marine Corps Reserve will pick up the toys from each Coldwell banker collection center and deliver them to charitable organizations and social welfare agencies in the area.

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