Alameda Snapshot: View from the Top

A view of the Park Street Bridge from the top of the Parking Garage.

Much better to see this in a larger version

Close to Shopping

I live just two blocks off Park Street and love the proximity to shopping, restaurants and the Theater, living this close to the business district is a real lifestyle that I enjoy enormously.

So if you are like me and appreciate this lifestyle boy is there is a deal for you that entered the market this week. Not only is it close to shopping, transportation and is a stones throw to a coffee shop it is listed for under $200,000 and is currently the lowest listing on the Island.

Now the catch! You will be living basically behind the Marketplace, 1629 Foley, backs up to the former car dealership building with the backyard sharing the building wall. If you do not know where Foley is the street is one block east of Park Street, and runs between Buena Vista and Tilden Way. The property is adjacent to a parking lot that belonged to the Chevy dealer.

This one bedroom, one bathroom, 756 square foot home obviously has some challenges as you read the description.

Agent Description: Small bungalow, big rehab, on commercially zoned side of the street, behind the Alameda Marketplace. Seller will not carry paper. Sold strictly 'as is'. Buyer to verify zoning, use, lot line for easement, ability to close financially w/any offer.

My translation is the place needs a lot of work, it small and we can not guarantee how you can use the property. We need money and will not negotiate on any repairs or concessions. If you think that this is something you are interested in check with the City Planning Department on the zoning.

The most interesting thing to me about the listing is the price. On December 3, 2008 Post, I wrote about 715 Schiller that was listed for $299,500 and is a two bedroom one bathroom 856 square foot Spanish Bungalow. That was under $300,000, so to see a home now available for under $200,000 two months later is amazing. The next closes priced home is 609 Haight for $397,000.

I think that this property is a special case, but a very interesting anomaly in the market. For those who are renting this could be a bargain if you are handy. I looked at the online photos and saw a couple of nice features, like built-ins and big backyard. It also has a lot of down side, like the cyclone fence that borders the parking lot next door or no front yard landscaping. But for a mortgage payment around $900 per month, it may be worth the trade off for some.

Besides, it close to shopping.

Millions, Billion, Trillions . . .Oh My

Yesterday, the Senate passed as part of the stimulus bill a $15,000 tax credit if home shoppers buy within the next year. As that was going on, in a separately action, Treasury Secretary Timothy Geithner outlined plans for spending much of the $350 billion in financial bailout money recently cleared by Congress, and the Federal Reserve announced it would commit up to $1 trillion to make loans more widely available to consumers.

All these actions are suppose to get buyers off the fence to complete a purchase, free up the credit markets and make money available for mortgages. So here is what you need to know about all three actions.

The tax credit in the Senate's version of the plan sweetened the current $7,500 homebuyer tax credit provision (that is basically a loan), doubling it to $15,000 or 10% of the home's purchase price (whichever is lower) in Alameda every buyer would get the full credit with the current inventory. The big difference is this credit applies to all buyers - not just those purchasing their first homes.

Here are the bullet points of the Senate Plan:

• No income limit
• The credit does not have to be paid back
• The tax credit is also non-refundable, this means, if your tax obligation is less than the credit, you only receive an amount equal to your tax bill, no more
• The Senate credit is good for one year following its enactment
• No retroactive feature. Homebuyers who make purchases before the credit takes effect cannot claim it.
• Buyers must live in the home for two years or forfeit the credit.

The National Association of Realtors estimated the Senate measure will attract an additional one million buyers who would otherwise have remained on the sidelines. "Consumers will view the tax credit as they do lower home prices," said Lawrence Yun, NAR's chief economist. "And more people will qualify [for buying homes]."

My personal belief is the Senate version will not survive when they confer with the House and come up with a compromise plan.

The financial stability plan will include a comprehensive housing program that will provide $50 billion for foreclosure prevention programs. Secretary Geithner released details of the new financial stability plan, a successor to the much maligned Troubled Asset Relief Program (TARP). The main purpose of the new TARP Plan is to prevent more foreclosures, decrease interest rates and find a place for toxic mortgages. (The video is a little TARP humor)

To drive down mortgage rates, Geithner also alluded to a possible expansion of a $600 billion Federal Reserve program that purchases mortgage backed securities and debt issued by Fannie Mae, Freddie Mac and Ginnie Mae.

The final piece is a $1 trillion program aimed at stimulating lending to consumers and businesses. The program expands on a $200 billion to lend money to investors to purchase securities backed by debt such as credit cards and auto, student and small business loans. The goal is open up all credit.

It is way to early to know what the impact will be, especially since the Senate version of the tax credit still needs to survive its current form, but if all three programs move forward we could see buyers jump back in to buying mode. Exactly what the Obama administration wants. Till then we will have to wait and see what happens.