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!

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Related posts:

1. Recap of 2010 Real Estate Market & FORECAST For 2011!
2. Interest Rates & Market Update
3. South Livermore Market Activity (September 2010)

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)

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Related posts:

1. Forecast for 2012!
2. Market Update! (June 2010)
3. Tri-Valley Market Update! (July/August 2010)

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Related posts:

1. Your Neighborhood Market Activity (Pleasanton/”The Meadows”)
2. Your Neighborhood Market Activity! (South Livermore)
3. South Livermore Market Activity (September 2010)

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Related posts:

1. Market Update! (June 2010)
2. Interest Rates & Market Update
3. Tri-Valley Market Update! (July/August 2010)

(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

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Related posts:

1. Current Mortgage Rates are Low!
2. (February 2010) Mortgage Update!
3. Market Update/Rates are still Good! (May 2010)

Rates as of (January 6, 2010)
on 30 year fixed.   4.875% 1 points
5-1 Arm 30 year term 4.25% 1 point
5-1 Arm 30 Year High Balance 4.75%, loans between 417K-$729K
30 year High balance  5.25% 1 points.

-Rate Information Provided By:

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

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Related posts:

1. (March 2010) Mortgage Rates!
2. (February 2010) Mortgage Update!
3. Market Update/Rates are still Good! (May 2010)

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.

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Related posts:

1. Market Update/Rates are still Good! (May 2010)
2. Market Update! (June 2010)
3. Recap of 2010 Real Estate Market & FORECAST For 2011!

Cindy and I are experiencing a surge of activity in sales of investment properties. Most of the buying is taking place in the Tracy and Brentwood areas. The reason for this is that with the prices of these homes having fallen, they now make sense again as rentals. Also, with the number of foreclosures and short sales in these cities, the demand for homes to rent has increased. The rental market is very robust, and a “break even” is now a realistic goal for investors again.

 We will continue to keep you informed of the market activity in these areas, and to let you know about the investment opportunities that are available. As always, we believe in the long term viability of Real Estate as an investment. We see the investor activity in the Tracy and Brentwood areas as an indicator that a new floor is being established with regards to pricing. Since markets build back up from the bottom, we feel (in these areas) that the prices are as low as they are likely to go. If you have any interest in exploring these opportunities, or you have any questions, please give us a call. We would be happy to spend some time discussing this topic with you.

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Related posts:

1. Tri-Valley Market Conditions