Tri-Valley Market Conditions

Dear Friends,

With the extremely volatile state of the current real estate market, it seems wise to contact you and share our view of the local market conditions. The Tri-valley is, like many other Bay Area communities unique, and what is true in one of those areas may or may not be true here. We do however share in the effects of some of the forces which influence all markets such as the cost of borrowing money, consumer confidence, and the affordability of our homes relative to incomes.

Within the Tri-Valley, there are also differences from one town to another. For instance there are currently 183 single family detached homes for sale in Pleasanton, while in neighboring Livermore there are 387 of those dwellings for sale. So in the two cities of roughly equivalent size, Livermore has twice the inventory of Pleasanton. It is noteworthy that the two cities combined have approximately 50,000 households so 550 homes on the market does not constitute an over supply of homes available for sale. While there has been some deterioration in home values, this area has not experienced the drop in prices seen by the towns to the north and east such as Tracy and Brentwood for example. While the number of homes sold has fallen from the peak,[2005], we sill have the desirability of our neighborhoods attracting people to this area. Many people still want to purchase a home here and enjoy the benefits, the schools,the parks and recreational amenities which come with living and working in this environment.

It is true that some of the “bank owned’ properties and “short sales” are starting to become more numerous and will have some effect on the comparable sales as we move through 2008. We are going through a period of price corrections, downward from the peak of two to three years ago. However if you purchased a home in say 1999,that home is still worth easily twice the amount you paid then. Real Estate cycles, like all investments go through highs and lows, Long term no investment is as secure, provides as many benefits and performs as well as real estate. We need to take a step back and view the market with a broader perspective and celebrate our good fortune

Cindy and I do a great deal of consulting and counseling with our clients in addition to listing and selling homes and investment properties. If you have any questions at all about your particular and specific real estate situation please call and we will gladly share our combined knowledge and experience with you. In this time of rapidly changing conditions we will do our best to keep you informed with the latest information to best assist your real estate decisions. Thank you for your continued support and friendship.

Sincerely,
Joel and Cindy