Posted tagged ‘UC Merced’

Merced makes the Top 10!

June 23, 2011

Source: Zillow

Inman News,  a leading source of real estate news for industry professionals and consumers,  recently reported that Zillow, a real estate marketplace that compiles information on homes for sale, homes for rent, and homes not currently on the market,  has identified the top 10 hottest markets for real estate investors in the country.

7 of the 10 markets are in California.  The #1 market is Merced.  According to Loren Gonella, Broker of Coldwell Banker Gonella Realty, “UC Merced Students are having a profound effect on the rental market.  Beginning last year and significantly increasing this year, students have been renting housing in N. Merced. At the present moment, the inventory of available housing in N. Merced has decreased dramatically.”

Students indicate that renting off campus is significantly less expensive than on-campus housing.  The increased demand for rentals has resulting in rental amounts increasing in the N. Merced Area.

To read the full article on Inman News click here.

Students Soak Up Summer Vacancies

August 16, 2010

According to UC Merced, there are approximately 1,450 more students starting this fall semester as compared to last fall semester. UC Merced also indicated that the dorms are filled and there are over 400 additional students on the waiting list. More than likely these students will have to find housing in the community. The overall effect will be absorption of units, thus decreasing the vacancies in the area. As the vacancy factor decreases, rental rates will continue to stabilize and will increase. Investors should definitely take note and continue to invest in both single family and multi-family residences.

Rental Property Inventory Update

July 23, 2010

For several months now, the Central Valley has had very small number of properties for sale. Now, it appears that this trend is also beginning to affect rental properties.

According to our Property Management Department, Gonella Realty Property Management – out of 30 single family residences available for rent, there has been an application for, or a holding deposit on all but 3 properties. This indicates a tremendous surge in demand for rentals and we believe that rental prices, which have been steadily rising, will continue to increase.

So, if you’ve been thinking about buying a rental property, but are wondering if you will be able to find a tenant, the answer is more than likely to be ABSOLUTELY!


Gonella Realty Updates Military Officers Association of America

July 19, 2010

On Saturday, July 17, 2010, Loren Gonella spoke before the Military Officers Association of America, Yosemite Chapter in Merced, CA.  Loren spoke about what created the massive increase in housing prices and the over-building that occurred during the real estate boom, as well as where the  real estate market is today, and the future of real estate.

3 things led up to the real estate boom:

1)      Speculative fervor due to the coming of UC Merced

2)      Many out of town builders coming into the area (due to the speculative fervor due to the coming of UC Merced) and then paying too much for land

3)      Cheap credit led to no-documentation-stated-income loans—a person would walk into a lending office and say “I earn $20,000 per month” and the income would never get verified—the lender would just take the person’s word.

These factors contributed to a speculative fervor that caused prices to increase by 25-35% per year in 2003, 2004, 2005.

The market peaked in the 3rd quarter of 2005 at a median sale price of $350,000.  Home values started to fall in 2006 and have dropped almost 70% since the peak.  Today, home values are starting to increase—home values are up from June 2009-June 2010 with an increase of 14%.

We believe that values have bottomed out and will continue to increase.  In fact, there are more buyers than sellers, which have created an inventory shortage.

So where is the real estate market going from here?

We believe that the market is starting to transition from short sales and foreclosures to more traditional sellers.  Also, new home construction is starting to make a comeback, in part due to the fact that the City of Merced is working on reducing new construction fees.

To summarize, we told the Military Officers Association of America, Yosemite Chapter that the market has appeared to bottom out, prices are increasing, and homes are selling!

IT’S UP! IT’S UP! IT’S UP!

June 28, 2010

Review of the last 12 months

The Median Sales Price for the Merced/Atwater area has risen 22% in the last 12 months–from $100,000 in May 2009 to $122,000 in May 2010!  The market appears to have bottomed out and since January of this year is steadily moving up. The average days on market has decreased from 60 days in May 2009 to 47 days in May 2010.

If you have been hearing people say that there is nothing on the market–they’re right.  Inventory has dropped to 2.3 months (meaning if the rate of sales continues and no new inventory is introduced, the current inventory will be completely exhausted in 2.3 months).

Many people have been asking: “Is is a great time to buy?” –  The answer is YES

Many people have also been asking: “Is is a great time to sell?” –  The answer is YES

Why is it a great time to buy?

  • The Median Sales Price is down to $122,000 from $350,000 – a reduction of 65% from the peak in the 3rd quarter of 2005.
  • Interest rates are at historic lows.
  • The Local Affordability Index is at 90% – which means that 90% of the local population can afford to buy the average priced home.  (At the peak in 2005 only 12% of the population could afford to buy the average priced home)

Why is it a great time to sell?

  • With affordability up and interest rates down, there are many, many, many buyers actively looking in the market.
  • With very low inventory, there is the perfect combination of low supply and high demand – which produces quick sales, and many times offers are above the asking price.

March 5, 2010

March 5, 2010

The following is a reprint courtesy of Gonella Rentals Market Update (originally posted 1-29-10):

We at Gonella Property Management have been working diligently to accommodate the needs of the Merced community. Our staff has been assisting our customer base by showing as many properties as we can and taking as many steps as possible to get housing for people when it is needed the most. We have not seen a downturn in our customer base, even with upheaval of the holiday season. Many of our clients include new property owners, families and students.

Most of our clients of the past three months have been families that have suffered the unfortunate impact of foreclosure. Thankfully our fully staffed office is in the position to assist as many individuals/ families as we can. At this time rental homes have been the main driving force for our office. We have several apartments available and we believe that market activity will be picking up in the coming months. Typically January is a slow month for rentals February sees more activity.

Properties Rented


Featured Apartment

257 Brookdale Drive – 2 bedroom/1 bath

$600.00 Rent & $600.00 Deposit

(G Street, turn onto Brookdale) 750sf new carpet throughout,  Living

room, kitchen,central heating and air, laundry hook-ups,

No Pets, Fridge included!!!

FIRST MONTH FREE WITH A 6 MONTH LEASE!!!


Select the links to view view more listings or to print a rental application!