The Engels Real Estate» Advice & Tips

Forecast for 2012!

Cindy — Thu, 26 Jan 2012 19:31:58 +0000

This time of year provides just the right moment to take a brief look at the year past, and a thoughtful look forward to where we envision the Real Estate market will move.

This past year we experienced seemingly contradictory and sometimes confusing sales activity. On the one hand, prices, depending on your city and neighborhood, continued to fall. This was due, in part, to the effect of foreclosures, bank owned properties and short sales. Also contributing to lower home values was the general economic slowdown and tightening credit by the lending institutions.

At the same time we have seen what appears to be increased demand for homes listed in the medium price range. Rapid rates of sales are not unusual for properties listed at $600,000 and lower.

Very few homes are available and that is the reason demand seems high in those price ranges. There are still steady stream of bank owned foreclosures coming to the market, but not the huge number which are controlled by the” Big Banks” all hitting the market at one time, which we imagined might happen.

The price bracket of upper tier properties, sales activity is not very robust. For example, in Livermore, in the price bracket of $800,000 to $1,000,000 there are currently 24 homes currently listed for sale, which is double the number of homes, (12) “Pending and Sold” in the prior 3 month period. At the price bracket above, $1,000,000 to $1,200,000 there are 5 for sale and 1 pending and 1 sold in the same time period.

It is worth noting that statewide we are one of the healthiest real estate markets. So while we are still somewhat anemic, we are better off than most other California regions.

As to 2012, we know more “distressed” properties will be offered for sale by the banks and individuals who own them. This will continue to hold prices down. The salesman in me would like to be more optimistic, but the reality is that I do not expect home values to rise in 2012. Long term, this is still a great place to buy and own real estate. It is an asset that we all can look forward to performing very well over time. For 2012 though ¬- looks like another year pretty much like the one we just had!

Please, for our opinions of your specific real estate situations, just call or e-mail Cindy or me. We look forward to seeing you in the New Year!

Recap of 2010 Real Estate Market & FORECAST For 2011!

Cindy — Tue, 18 Jan 2011 23:13:45 +0000

RECAP OF THE 2010 REAL ESTATE MARKET & FORECAST FOR 2011

As I do each year, I am writing to recap the 2010 real estate market and to forecast what is coming in 2011.

In regard to 2010, the sales activity in the Tri Valley reflected the increased number of “distressed properties”, that is “short sales” and bank owned properties. However, Pleasanton for example, has experienced less of an impact by these categories of sales than most California communities. I believe this is due, at least in part, to the diversity of employment opportunities afforded by living at the hub of the 580/680 corridor. We enjoy a manageable commute to several different job centers and the work force which resides here is spread out among many diverse companies and industries so the employment, or unemployment, numbers have not been as negative as some of the surrounding counties. While we have certainly not escaped entirely the loss of real estate values, we have not taken as big a hit as many, [most], other areas. I can hear many of you saying, “I lost $200,000 in value of my home and you want me to feel good that it is not $300,000.00”, in a word YES! The number of homes for sale is seasonally and historically low, [135 currently on the market in Pleasanton for example], at this writing. With 77 homes currently “pending” that translates to less than a 2 month inventory. That is a very robust rate of sale, and one that most other cities would envy. The statistics vary somewhat in Dublin due to the large number of new homes which came to market at or just before the peak. Livermore is “in between” Dublin and Pleasanton, relative to the impact of the effect of the housing turn down.

Looking forward to 2011, my crystal ball is saying that barring any rapid or steep increase in the mortgage interest rates, or excessive release of homes by the banks which now own them, 2011 should be a stable and active real estate market in the Tri Valley.

What does that mean to you? If you are moving up, great time to do so. If you are buying your first home, or an investment property, also a good decision, prices and interest rates will most likely go up, so why would you wait? If you are moving down, “right sizing” is becoming a meaningful segment of the market. The very first wave of baby boomers reach age 65 this January, one story homes are in demand!

If I seem to be optimistic, it is because I am! I can hear the snow plows all over the Midwest clearing the driveways of thousands of people packing up and heading for California. Here, in spite of all the budget problems of the state and local municipalities, is where a lot of people want to live. Our resorts, beaches, mountains, and vineyard destinations as well as our technological and educational institutions, are the envy of many less blessed states and countries. People want to visit and live in California. Our real estate is still a very sought after and prized asset. If you own some of this real estate, be glad and thankful, if you don’t buy some, it will serve you well in the long run!

I have, as always, been brief. If you would like more specific data, please let us hear from you, we welcome your input.

Sincerely,

Joel Engel

Be sure to check out our new “blog”, www.trivalley365.com!! The website will offer daily highlights of the Tri-Valley businesses, restaurants, arts and entertainment and fun things to do in our beautiful area of Northern California.

(Image from www.realestateclipart.com)

Tri-Valley Market Update! (July/August 2010)

Cindy — Fri, 30 Jul 2010 20:21:14 +0000

THE ENGEL TIMES (July/August 2010)

WHERE DO WE GO FROM HERE?

The Real Estate Market in the Near Term:

Our take on it is that it all depends on…jobs.

Affordability is the driving force impacting home prices right now. If in the East Bay’s economic future, employers start hiring, (and paying competitive salaries), then demand for homes will continue and strengthen.

Having to forecast based on current conditions, our expectation is that values will stay pretty much where they are now, with a possibility of lowering somewhat further. We are currently transferring ownership at mid-2002 price points.

Depressed sales are accounting for:

SHORT SALES REOS [BANK OWNED]

LIVERMORE 27.83% 18.26%

PLEASANTON 13.82% 5.69%

Please contact us for any specific data you may require as to your particular situation and location.

CURRENT INTEREST RATES

Conforming (up to $417,000)

15 year fixed

3.875% at zero points

4.00% at no cost

30 year fixed

4.3750% at zero points

4.5% at no cost

Rate Information (as of 7/16/10) Provided By:

Rusty Anderson
Emery Financial, Inc.

rusty@emeryfinancial.com

OUR BLOG

Please visit our Blog www.TheEngels.com for Current Listings, Market Activity in Your Neighborhood, Interest Rates, and Valuable Market Updates!

Become a Fan on Facebook! http://www.facebook.com/EngelRealEstate

BACK TO SCHOOL!

As we start thinking about Fall and Back to School, here are some resources that you may find valuable!

For School Scores (Academic Performance Index Scores):

(Pleasanton) http://www.pleasanton.k12.ca.us/PublicInformation/PressReleases.cfm

(Livermore) http://www.livermoreschools.com/cms/page_view?d=x&piid=&vpid=1228578823365

(Other Areas) http://www.cde.ca.gov/ta/ac/ap/

For School Boundaries:

(Pleasanton) http://www.pleasanton.k12.ca.us/educationalservices/pupilservices/AttendanceArea.cfm

(Livermore) http://www.livermoreschools.com/cms/page_view?d=x&piid=&vpid=1228578823332

(March 2010) Mortgage Rates!

Joel — Tue, 02 Mar 2010 18:17:54 +0000

(March 2010) Mortgage Rates!

Rates are still good!!

5% 30 year fixed.
5-1 Arm as low as 3.875%
And Jumbo 30 year fixed at 5.50%

Rate Update, Thanks to:

Staci M. Fraser
Home Mortgage Consultant
Stagecoach Priority Certified
Wells Fargo Home Mortgage
MAC A0327-011
5075 Hopyard Rd. Ste 200
Pleasanton, CA 94588
925.251.4307 Tel
925.321.0744 Cell
866.512.6975 eFax

(February 2010) Mortgage Update!

Cindy — Tue, 02 Feb 2010 18:41:49 +0000

(February 2010) Mortgage Rates!

Conforming Rates:                    APR’s:
0 Points

30 yr fixed - 4.875                   4.96
15 yr fixed - 4.250                    4.33
10/1 ARM -   4.500                    4.59
7/1 ARM -     4.125                    4.21
5/1 ARM -     3.750                    3.83

High Balance Conforming Rates up to $729,750:
0 Points
                        Rates:                    APR’s:
30 Yr Fixed -   5.125                    5.21
15 yr fixed -    4.500                    4.59
5/1 ARM -       4.250                    4.33

Rates & APR’s based on $417,000 loan amount & 0 points. Rates, fees & guidelines are subject to change without notice.

Rate Information Provided By:

Lori Smith

Certified Mortgage Planner (RPM)

925-461-6959

lsmith@rpm-mtg.com

30 W. Neal Street #105

Pleasanton, Ca. 94566

R.E License #01125965

The Engels (Good time to Buy? Sell? )

Joel — Wed, 16 Dec 2009 00:29:27 +0000

As lifetime members (third generation) of our community, the Engel Team, Joel & Cindy, would like to introduce themselves!

Joel and I have been full-time Residential Realtors in the Tri Valley area for 22+ years. We have an excellent understanding of the local builders and the communities. This experience and knowledge speak to our years of success in the Real Estate Industry.
As Broker/Owners of Engel Real Estate, and our association with Prudential California Realty, we have over the years put a team together to handle all aspects of transacting Real Estate efficiently. We have personally transacted over 1000 residential sales in the Valley!

Many of our clients call and inquire from time to time as to whether or not it is a good time to purchase or sell their property. We answer, as best we can, based on the type of market we are experiencing. Currently, of course, we are solidly in a “Buyers Market”, with local home values at a 2003-2004 level. It is a great time to buy especially if your expectation is to live in that home for at least the next 5 years or more. This does not necessarily mean that it is not a good time to sell. In a declining market, where home prices are falling, depending on your time horizon, it may indeed be a wise time to sell. For instance, if we look back to 2008-2009, we can see that in general, values declined about 10% in that year. If you are planning on selling within the next 5 years and you believe values will continue to drop for at least another year or so, then it may be wise to preserve your equity and sell now. Please call us with any questions about your specific situation!

Short Sales

Cindy — Wed, 16 Dec 2009 00:09:11 +0000

With the many changes in the market, we wanted to help to educate our clients and answer some frequently asked questions about short sales. If anyone you know has any questions about short sales, please contact us, as we have relationships with CPA’s and Attorneys who have the latest information. Since each transaction is unique, it is imperative that any person in this situation gather the best advice prior to moving ahead.

What is a short sale?

A short sale is when a lender accepts a discount on a mortgage to pay-off the loan to avoid a possible foreclosure auction or bankruptcy. The lender must approve the contract and terms of the discounted pay-off. Foe example: A homeowner facing foreclosure has an existing first mortgage of $700,000. A buyer writes an offer for $580,000, which is accepted by the lender as full payment for the loan.

What happens to the seller’s credit rating after a short sale?

What typically happens is that the loan will show as “paid” on their credit report, with a notation that says “settled for less than the original owed”, or something similar. It is more favorable for a homeowner to short sell their home than to have a foreclosure on their credit report.

Can an owner profit from a short sale?

The seller cannot profit, monetarily, from a pre-foreclosure short sale.

How do bankruptcies affect the possibility of a short sale?

Most mortgagors will not consider a short sale if the homeowner is in bankruptcy. This is because negotiating a short sale pay-off is considered collection activity, and collection activities are prohibited in bankruptcies.

How late in the foreclosure process can you start a short sale?

Try to allow a window of at least 90 days to effectuate a mortgage approved pre-foreclosure short sale.

For all other questions, leave us a note, or e-mail me at cindy.engel@comcast.net

Interest Rates & Market Update

Joel — Sun, 22 Nov 2009 05:36:23 +0000

(November 2009 Update)

Since home sales and home values are so closely tied to the cost of borrowing money, we thought we would focus some attention on current interest rates, along with the general Real Estate related topics we usually discuss.

The cost of borrowing money to finance home purchases are currently at very low rates. 30 year conforming, loan amounts of under $417,000 are below 5% and jumbo loans, above $417,000 are about 5 ¾%.

With these almost historically low rates, we would expect to see a frenzy of buying activity and in fact we are, in the entry level and first time buyer category. The Federal tax credit for first time buyers is set to expire in November. With the affordability of homes and the possible extension of the tax credit we will probably see these entry level home sales continue. However, with the lack of equity many of the traditional move-up buyers have all but disappeared.

Various economic reports assert that recovery to peak levels may take as long as 10 years. As we all assess our housing needs relative to family size, community services and commute distances, we may find that what we thought was a basic requirement may indeed be a luxury in the reality of today’s economic truths. More and more families are exploring the possibility of expanding and remodeling their existing property instead of replacing it with a newer/larger one.

Whether or not to expand/remodel or move to a replacement home is a traditionally difficult decision. If we as your trusted Real Estate Consultants can provide any assistance or information to that purpose, please contact Cindy or me at your convenience.

The Middle Man

Joel — Tue, 20 Jan 2009 04:27:29 +0000

There are many new companies that offer their service as “negotiators”. These companies for a fee (usually 1-2% commission) will negotiate directly with the lenders involved. Their claim is that they have experience and will stay in constant contact with the lender. Usually, they are employed by the listing agent. It is important to know if one of these companies are involved in the process. Many times it can be more complicated and you can end up with “too many cooks in the kitchen”!

Over-pricing vs. Under-pricing

Over-pricing vs. Under-pricing

Joel — Tue, 20 Jan 2009 04:14:12 +0000

When listing short sale property, a Realtor may start with an asking price that looks to be too high compared to the current market. This may be a part of a required process on the part of the lender involved. Many times the lender will require the home to be marketed for several weeks. If there is no interest, then lower the asking price. Continue to market the home at the new asking price for several weeks and, again if no offers, lower the asking price. This is a process continued until you have an offer to be considered. Now the lender has a history of pricing and marketing the home for maximum return. Sometimes when listing a short sale property, a Realtor may have an asking price that seems very low relative to the current market. This may be the over-anxious agent trying to get several offers going right away on the home. Until there is an offer received on the home, the lender will not begin to process a short sale.