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Wednesday, December 28, 2011
New Listing at 14 Josefa Way in Santa Cruz!
Tuesday, December 13, 2011
U.S. Farmers Reclaim Land From Developers
Five years into a brutal national housing downturn, raw land destined for residential development has fallen so far in value that thousands of acres across the country are being used again for agriculture.
During the fast-moving days of the housing boom, real-estate speculators in California, Arizona, Florida and other states paid top dollar to buy land from farmers and convert it from citrus groves and cotton fields to potential subdivisions.
Now, with crop prices soaring and housing in a deep slump, the economics of land investment have turned upside down. Farmers and investors are buying land that had been slated for development and using it for agriculture. And they are paying a small fraction of what housing developers paid for the same land before the recession.
The trend, if it continues, could represent a historic shift away from development in the far reaches of metropolitan areas. These properties had fueled much of the housing industry's bubble last decade.
In September, the Vanderweys, an Arizona dairy farming family, paid $8 million for a 760-acre alfalfa and cotton field that had fallen into foreclosure in Buckeye, Ariz., about 30 miles west of Phoenix. That same parcel, called Liberty Farm, had been sold to real-estate speculators in 2005 for $40.8 million. The Vanderweys want to plant hay.
"These prices are becoming the new normal," said Nick Vanderwey, one of four brothers who purchased the farmland. "Everything in this area is coming back into farmers' hands."
Nationwide, residential land values in the U.S. have fallen nearly 70% since peaking in the second quarter of 2006, according to a recent report by the Lincoln Institute of Land Policy, a Cambridge, Mass., think tank. Meanwhile, the value of U.S. cropland (excluding Alaska and Hawaii) rose close to 20% between 2007 and 2011, according to the U.S. Department of Agriculture.
The demand for farmland is being fueled by rising prices for everything from corn to cotton. Net farm income is forecast to climb 31% in 2011 to $103.6 billion, its highest level on an inflation-adjusted basis since 1973, according to the USDA.
"Right now, people are working that land for whatever value it has, which usually means they're farming it or selling it to farmers," said Vernon Crowder, an economist with Rabobank International, a major U.S. agricultural lender based in the Netherlands.
These changing dynamics have turned farmers into land speculators and beneficiaries of the housing bust—sometimes buying back the same land they had sold earlier.
![[LAND_p1]](http://si.wsj.net/public/resources/images/P1-BD375_LAND_p_NS_20111113171507.jpg)
Consider the England family, which recently repurchased 430 acres of cotton fields in Eloy, Ariz. In 2004, the Englands had paid $731,000 for the parcel about 65 miles southeast of Phoenix. The family then flipped the property in 2009 to a Milwaukee-based apartment builder for $8.6 million. Two months ago, the family, which had been leasing the land to grow cotton, bought back the farm out of foreclosure for $1.75 million.
"It was a pretty good deal," said Don England Jr., as he rode his tractor around the property one day recently.
Putting residential land back under the plow reflects a major demographic shift. Since World War II, development has spread out from cities to suburbs and then to fringe areas known as exurbs. During the housing boom, builders poured hundreds of millions of dollars into land in the exurbs, where they built quick-and-easy tract homes and sold them to first-time buyers willing to commute long distances to employment centers. The strategy worked as long as gasoline was cheap and jobs plentiful.
Now, with gas prices above $3.40 a gallon, unemployment hovering around 9% and home values sinking, demand for new exurban houses has largely evaporated.
"There's no foreseeable market for that housing in the future," said Christopher Leinberger, a visiting fellow at the Brookings Institution who has written about land-pricing trends.
Between 2000 and 2007, the amount of land used for farms fell by two million to four million acres a year, according to USDA surveys. But since 2007, the conversion rate has slowed and the amount of land being farmed has held steady at 920 million acres.
Values of land once slated for housing also have fallen sharply in the Midwest, which didn't see the same big run-up in prices as California, Nevada and Arizona.
In late May, a group of corn and soybean farmers bought 650 acres near Manteno, Ill., about 50 miles south of Chicago, that had fallen into foreclosure after the developer who owned it filed for bankruptcy. The land originally was purchased for $15,000 to $20,000 an acre for housing for Chicago-area commuters, according to brokers involved in the deal. It was sold by a bank this year to the farmers for $8,000 an acre.
"The primary thing that was driving development here was people's desire and willingness to get out of the city," said Dean Retherford, the broker who negotiated the sale. "But development is over. It's done…It'll be 15-20 years before this land is developed."
Last year in California, Paul Singh, who grows nut trees and grapes used for raisins, paid $27,600 an acre, or a total of $9 million, for 326 acres in Hanford in the San Joaquin Valley, one of the nation's largest farming regions.
A few years earlier, the land had been purchased for $82,800 an acre by Ennis Homes Inc. of Porterville, Calif. It envisioned a development called Villagio, with nearly 1,500 homes along with a shopping center. Ennis filed for bankruptcy in 2010 due to falling land values.
Mr. Singh plans to plant a wine-grape vineyard on the property and grow walnuts. He expects to net $800,000 to $1 million a year, roughly a 10% return on his land investment.
"Right now, it's as good as it gets. All the crops are doing really well," Mr. Singh said. "Why would any farmer sell right now? Everyone's making so much money."
Whelan, Robbie. "U.S. Farmers Reclaim Land From Developers - WSJ.com." Business News & Financial News - The Wall Street Journal - Wsj.com.
Thursday, December 08, 2011
FOR IMMEDIATE RELEASE
Contact: Frank Murphy-Keller Williams Realty
831-457-5550
Frank Murphy attends invitation-only
luxury real estate conclave
“Leaders in Luxury 2011” draws top luxury real estate professionals
Santa Cruz, CA. December 2011 – From across North America, top real estate professionals working in the upscale residential market converged in mid-November at The Ritz Carlton Laguna Niguel Hotel in Orange County (CA) at The Institute for Luxury Home Marketing’s annual Leaders in Luxury (LIL) conference where they discussed strategies for better serving buyers and sellers in today’s luxury home market.
According to Frank Murphy, an agent with Keller Williams Realty, the exclusive event was an invitation-only educational and networking opportunity for real estate professionals who handle million and multi-million dollar homes and estates. “This prestigious conference provides cutting-edge information on what’s happening in the luxury market segment, offers insights on best practices in the business, and creates valuable networking opportunities,” said Murphy.
“Leaders in Luxury registration is limited to professionals in the luxury home niche,” said Laurie Moore-Moore, Founder of The Institute for Luxury Home Marketing, the event host. “This gives LIL attendees the opportunity to build an exclusive network of contacts focused on the upscale residential industry while sharing with the best in the business. Since competency is the key to working successfully with the luxury buyer and seller,” added Moore-Moore, “LIL is designed to provide attendees with important knowledge and insights, giving them a competitive edge in meeting the needs of the affluent.”
Murphy considers attendance at Leaders in Luxury to be essential for success in today’s marketplace. “Attending the Leaders in Luxury event is an investment for my clients,” said Murphy. “With the current real estate market, I have to be proactive to stay on top of the market conditions. By networking with the best in the business, sharing ideas, and learning about the latest trends and outlooks, I can help my affluent clients find success where others are finding challenges.”
Keynote speakers included David Michonski, author of the new book, “Power Marketing for Luxury Real Estate” and Catherine Marcus of Sotheby’s International Real Estate, who was involved in the record-setting $100 million residential sale earlier this year in California’s Silicon Valley.
The Leaders in Luxury conference is an annual event. For information, visit www.LeadersinLuxury.com or contact The Institute for Luxury Home Marketing at 214-485-3000.
About The Institute for Luxury Home Marketing (ILHM)
The Institute trains real estate professionals who work in the luxury home market internationally and awards the Certified Luxury Home Marketing Specialist (CLHMS) designation which is the official designation for many North American real estate brands. Find information on live and online training at www.LuxuryHomeMarketing.com or phone 214-485-3000.
Wednesday, October 26, 2011
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Monday, October 10, 2011
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| Happy Fall! The Hunter’s Moon is coming! The Hunter’s Moon—also known as blood moon or sanguine moon—is the first full moon after the Harvest Moon, which is the full moon nearest the autumnal equinox. The Hunter’s Moon will reach the crest of its full phase tomorrow, Tuesday, October 11, at precisely 10:06 p.m. EDT, 9:06 p.m. CDT, 8:06 p.m. MDT, and 7:06 p.m. PDT. Here is a link to our October e-Newsletter Don't miss this month's cover story: "MARKET VALUE - Why The Market (Not Sellers) Determines The Sale Price Of Your Home" Visit our October E-Newsletter online now by clicking the URL above. Then turn to Pages 2, 3, and 4 for more timely articles of interest to today's sellers, buyers and homeowners.
Tap Our Expertise Even if you're not ready to buy or sell a home right now, we would be happy to keep you up-to-date on developments in the real estate industry, mortgage financing and our local market. Simply reply to this e-mail or give us a call! We hope you enjoy this monthly electronic newsletter. Please forward the link above to a friend who would also appreciate the information. If you have any comments, please e-mail them to us. Or, if you would like answers to your specific real estate questions, we'd be happy to help!
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Friday, October 07, 2011
North Coast Comfort
Old 2,300+ foot barn may have served Coast Dairies. Two homes expanded from original farm structures. "Milk Room" has upstairs bedroom, bath & loft with lovely views of flat garden area. "Big House" has kitchen/great room, funky deck, nice yard, 2 bedrooms, newer bath. Extra "Creek Cabin" for solitude, art studio. On Laguna Creek at Hwy. 1. Must contact listing agent for info and showings.
www.5998Laguna.com
Tuesday, September 27, 2011
Build Your Dream Home
Views, privacy and quiet are the key attributes describing this property. Much of the pre-development work is completed. New well, septic perc test, & preliminary soils investigations done. Preliminary plans for a barn, second unit and main house all in various stages of completion. Take off from here or design your own view home.
www.1050wilderfield.com
Wednesday, September 21, 2011
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Wednesday, September 14, 2011
Only single level home in Moore Creek Estates. Truly a turnkey gem. New kitchen, baths, floors, paint, grounds, all since 2008. Leaving area. Our loss is your gain! Idyllic setting and 10,000+ foot parcel with dozens of mature fruit trees, gentle terracing, great sun and good privacy. Mature plantings incl. 6 citrus, 2 kiwi groups, 8 apples, 2 pears, loquat, berries and raised bed veggies.
Check out photos and more information at: www.302MooreCreek.com
Check out photos and more information at: www.302MooreCreek.com
Tuesday, August 23, 2011
Vehicle Registration Update
Vehicle owners with registration renewal dates between July 1, 2011 and December 31, 2011 are being provided a 30-day grace period from the expiration date before late payment penalties are imposed NOTE: The billing notice has not been adjusted to reflect the grace period. Instead, a special insert included with the billing notice indicates that penalties will not be imposed until the 31st day after the expiration date. At that point in time, the penalties are calculated at the regular penalty rate of 60%.
Fee changes include:
· Vehicle License Fee rate decreased from 1.15% to 0.65%, and,
· A $12 increase in the registration fee (from $34 to $46).
Customers are encouraged to utilize the renewal by mail or online Internet renewal program to renew their registration. These alternative service delivery options will automatically waive late fees for first 30 days after expiration date. New registration cards and stickers will be issued as quickly as possible. NOTE: If customers were unaware of the 30-day grace period and included penalty fees in their mailed payment that are not due, DMV will automatically refund the overpayment. Please allow 3-4 weeks for the refund to be processed.
Law enforcement is aware and will not cite vehicles until the first day of the second month after the vehicle registration expires. For example: A vehicle with a registration expiration date of July 10th would not be cited for delinquent registration prior to September 1, 2011
http://www.dmv.ca.gov/pubs/newsrel/newsrel11/julyrenewals.htmFederal Tax Rules Regarding the Sale of Your Home
Last year’s IRS bulletin “Selling Your Home” for use in preparing your 2010 tax return includes a worksheet for calculating your home’s cost basis, used in determining the size of your gain on the sale of your home. It also describes the criteria used to qualify your home sale for exclusion from your taxable income.
Please follow this link to the IRS publication 523 “Selling Your Home” posted on the IRS site
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