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

Related posts:

1. Market Update! (June 2010)
2. Interest Rates & Market Update
3. Market Update/Rates are still Good! (May 2010)

Your Neighborhood Real Estate Market Update! (Pleasanton/”The Meadows” & Expanding Area) June 2010
ACTIVE Address Listing Price SqFt Bed Bath DOM Royalton Ct. $675,000 1941 3 3 5 Mendenhall Ct. $689,000 1586 3 2.5 20 Chippendale Ct. $714,900 2600 3 2.5 214 W Las Positas Blvd. $719,000 1941 4 3 25 Fairlands Dr. $724,950 2540 4 3 67 Cheshire Ct. $725,000 2150 4 2.5 40 Ascot Ct. $725,000 2144 4 2.5 54 Churchill Dr. $759,950 2572 5 2.5 32 PENDING Address Listing Price SqFt Bed Bath DOM Staples Ranch Dr. $599,000 1588 3 2.5 11 Ballantyne Dr. $699,950 2142 4 2.5 35 W Las Positas Blvd. $649,000 1721 4 2 12 Vermont Pl. $650,000 1881 3 2 20 W Las Positas Blvd. $680,000 1941 4 3 5 Byron Ct. $699,000 1933 3 2 3 Kirkcaldy St. $719,000 1802 4 2 14 Ballantyne Dr. $759,000 2464 4 2.5 10 Suffolk Way $749,950 2071 3 3 33 SOLD Address Listing Price Sold Price SqFt Bed Bath DOM 3768 Pimlico Dr. $698,000 $695,000 2369 4 3 29 3319 Guthrie Ct. $799,950 $795,000 2464 4 2.5 10 Share and Enjoy:

Related posts:

1. Your Neighborhood Market Activity! (South Livermore)
2. Tri-Valley Market Update! (July/August 2010)
3. (February 2010) Mortgage Update!

Your Neighborhood Real Estate Market Update! (South Livermore & Expanding Area) July 2010
ACTIVE Address Listing Price SqFt Bed Bath DOM Rosewood Ct. $745,000 2821 3 3 1 Faltings Ct. $780,000 3687 4 4 13 San Minete Dr. $842,900 3619 4 3.5 18 Vine Court $848,000 2980 3 3 36 Grape Leaf Ln. $849,950 3575 4 3.5 39 Traviso Cir. $850,000 3573 5 3.5 55 Calibria Ct. $889,900 3732 4 3.5 19 Vetta Dr. $919,950 3837 5 5 60 Campo Ct. $959,000 3532 5 4.5 32 Wood Hollow Dr. $985,000 3345 5 3 11 Vintage Ln. $1,225,000 5012 5 4.5 65 Saratoga Ct. $1,475,000 4479 4 4.5 132 PENDING (22 in all of South Livermore) Address Listing Price SqFt Bed Bath DOM Bertolli Dr. $875,000 3776 5 4.5 20 Lexington Way $878,000 3491 6 4.5 26 Old Oak Rd. $899,000 2874 3 2.5 26 Bertolli Dr. $899,950 3527 4 3.5 9 Talinga Dr. $909,000 4156 4 3.5 12 Louvre Ln. $979,000 2850 4 2.5 22 Lusitana Dr. $999,000 5000 6 5.5 7 Talinga Dr. $1,100,000 4400 5 4.5 1 Belmont Ct. $1,420,000 5051 6 5.5 13 SOLD Address Listing Price Sold Price SqFt Bed Bath 2681 Rivers Bnd Cir. $742,978 $742,978 1858 3 2.5 176 Prato Way $757,105 $778,000 3325 5 3 309 Old Oak Rd. $830,000 $830,000 2850 4 3.5 2701 Vernazza Dr. $879,000 $844,000 2800 4 2.5 2996 Danielle Ln. $1,250,000 $1,210,000 4479 5 4.5 Share and Enjoy:

Related posts:

1. Your Neighborhood Market Activity (Pleasanton/”The Meadows”)
2. Market Update! (June 2010)
3. Tri-Valley Market Update! (July/August 2010)

Realizing your home is one of the largest investments you will ever make, we believe keeping you informed about current market trends and values is one of the greatest services we can provide. Should you have any questions regarding any of the information contained herein, or would like to discuss the value of your property, please don’t hesitate to call us for a No Charge Consultation.

Right now the housing inventory is low!

This Graph represents homes for sale vs. homes sold over this past year in South Livermore. May 2010 shows that the demand for homes in our area is up! (Clarus Market Metrics)

Current Interest Rates are Fabulous!

30 Year Fixed:  4.59%            15 Year Fixed:  4.08%

(Rates based on $417,000 loan amount.  APR’s based on 1% origination.  Rates & APR’s subject to change.)

Related posts:

1. Tri-Valley Market Update! (July/August 2010)
2. Market Update/Rates are still Good! (May 2010)
3. September 2009 Market Update

Related posts:

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

Related posts:

1. Tri-Valley Market Update! (July/August 2010)
2. Market Update/Rates are still Good! (May 2010)
3. Market Update! (June 2010)

Let’s say, as a prospective home buyer, you venture out today, to shop for and purchase a home.  You are expecting to make a great deal, right? With all the articles you’ve read and all the news you’ve heard you will have abundant choices and negotiate terms which will bring the seller to tears!

Not so fast. It depends on where you are looking, and what you are looking for. Let’s say, for example, you are in the 680 corridor and Pleasanton seems to be a good fit for the criteria you desire…commute to work, schools, shopping, all the amenities a community offers which you deem important, are there. So, let’s see what your choices are, in a city of over 75,000 people, Pleasanton has over 26,000 homes. Sounds like you’ll have quite a selection of homes to consider.

Maybe…

Suppose your budget is between 700k-800k and you want 4 bedrooms + 2.5 baths.

As of this writing, there are 183 detached homes for sale in Pleasanton, of those 63 are priced over 1.5 million and 20 are over 1.0 million. That leaves 100 in all other price ranges to consider.

Of the 100, 20 are less than 1400 sq.ft. which you reject as “too small”!

So in your price range of 700k-800k and wanting 4 bedrooms + 2.5 baths and, oh yes, your wife prefers newer than 17 years old, you have exactly 1 home to view. (that one, as it turns out is very close to a major freeway).

In truth then you are now in a very strong seller’s market and when one home does come available, you will probably have to compete with other buyers hoping to find a similar property.

This is not exactly the “buyers market” which the media told you to expect.

Don’t give up, there’s always the chance your wife will settle for a 30 or 40 year old home and you will have a few more to choose from…

Related posts:

1. Pricing a home for sale: More of an art than a science
2. Market Update/Rates are still Good! (May 2010)
3. September 2009 Market Update

The analysis indicated market value of their home to be around $950k (price per square foot, condition and location).
 
STOP! Not so fast!
 
During that same week, I had represented a buyer on a purchase of “new construction”.

I had submitted offers to several different builders in behalf of my buyers.  The result was an acceptance on a beautiful new home with $1000’s given in concessions and an accepted price well under the builder’s published price! (even included all the model furniture in the home!)

A point to keep in mind here….builders often do not publish their sales data (not available on any internet site boasting to have the accurate information to assess home value).

In conclusion, the market value of my seller’s property would be inaccurate if only the published sales data is reviewed.

Maybe that is why we see some homes sitting on the market “for sale” for a very long time?

Related posts:

1. Over-pricing vs. Under-pricing
2. Short Sale Approved!
3. September 2009 Market Update