Berkeley

Oakland

Alameda

TIME TO JUMP OFF THE FENCE.

BUY A HOUSE NOW!

February 2011

In the words of the Today Show’s real estate guru, Barbara Corcoran, “we’re in a confused real estate market right now.”  One minute, we hear sales are up.  The next month , they’re down.  So it’s no wonder so many Home Buyers and Sellers are anxiously waiting … on the fence … for a “Buy” or “Sell” sign. 

According to Corcoran,  for a lot of people, the only real Buy sign for real estate will be when everyone else is buying and they have to overbid.  Then they’ll feel safe.  But if you’re one who’d like to take   advantage of the downturn in both prices and interest rates of the last 3 years in real estate,  the Buy — or “Trade Up”  sign is definitely NOW.  Even Corcoran herself says. “Do Not Wait!”  Her reasoning, the real estate market is very slow to unwind, but very quick to recover once it starts.  Interest rates are as low as they’ll get … in fact, at 5%,  at least 25% less than they were 5 years ago when prices were flying high. 

Besides some signs of consumer optimism picking up, there are also these comparisons for the last year in the East Bay Real Estate:  Berkeley’s average home sold price for the last 3 months of 2010 was $655,172 vs. $641,954 for last year. A modest 2% increase, but still in the right direction.  Alameda’s was $573,902 vs. $570,712.  And Oakland’s was $377,093 vs. $311,789.  A whopping 20%!    In the entire near East Bay, average home prices are up 17.6% from last year.  That’s not to say the price of individual houses are up by that, but this is indicative of market shift from the bargain basement to a more normal market.  

If  you’re entertaining the thought of moving to bigger house, or buying investment property, now would be a great time to get together and go over options.  Call me in my office:  510-847-2409. 

"HOME SALES TUMBLE 22%"

WHAT A GREAT TIME TO BUY!

September 2010

No kidding.  When you see that "throw in the towel" headline, that's a buy sign.  But before you think I've been on the MLS too long, let's look at the other signs.  What we're seeing is the end of the tax credit bubble.  And we are bumping along the bottom of the real estate market of the last 3 years.  Actually, in terms of prices, we're up from the bottom.  With median prices for the last 4 months in Oakland, at $290,000 vs. $188,000 for the same period last year.  The median price in Berkeley for the same period is at $665,200 vs. $605,000 a year ago. 

In other words, we're seeing fewer bargain basement sales and yes, fewer sales overall than last year.  So, there are 2 ways to look at this:  "The sky is falling," in the words of Chicken Little, or we'll continue to bump along until all of a sudden someone starts hiring.  If you believe, as I do, someone will start hiring in the next 6 months, get your mortgages lined up and start buying while the market is still soft. 

That's because, with buyers waiting on the side lines, interest rates are below all historic levels -- below 4.5% as we speak.  And when someone starts hiring, the real estate market will reverse course quickly ... and interest rates even faster, faster than you can say, "I want to make an offer."  That will quickly add 18% to 20% to the cost of buying a house. 

Right now, the downside risk is minimal.  The upside opportunity is the best of 15 years.  As has been said, "the darkest hour is just before dawn."  BUY NOW! 

JULY 2010.  BUY A HOUSE.  SAVE 15%!

LIMITED TIME ONLY

Really. 

If you think you missed the bargains of last year, put your regrets away.  And thank your lucky stars that the economy is still sluggish.  That’s why interest rates are the best they’ve been in over 39 years!  Otherwise known as a once in a lifetime opportunity... this is you chance to lock in the bargain basement of interest rates, now around 4.5% for a 30 year fixed conventional loan.

It simply means this:  it will cost you 15% less to buy a house right now versus the end of 2008 when were having the Filenes Basement of real estate.

Follow these figures.  At the end of 2008, interest rates were hovering around 6%.  So on a conventional loan of $415,000, you payment would have been $2,490.  Now, on that same loan amount, your payment would be $2,104.  A savings of $386, or over 15%!

So whether you’re thinking about a different house, your first house, even investment property, or refinancing, don’t wait.  March directly to your mortgage broker – or give me a call for a recommendation.  Because housing prices have pretty much hit their bottom, in fact in many cases, are up from the bottom. 

As the economy improves and confidence starts to spread, interest rates will definitely go up – a lot.  That means the cost of buying a house will go up significantly -- even if housing prices stay the same.  And actually, once the economy improves, housing prices  will also gradually start to appreciate again.

May, 2010.  Ride “em Cowgirl!

If you look out at the real estate horizon, the market is definitely better than it was a year ago.  Just a little wilder.  Sales are up.  Prices are up – on anything below $500,000.  In fact, in the near East Bay (Oakland, Berkeley, Alameda, San Leandro to Richmond), there’s only a 2 month supply of homes, which we haven’t seen since 2006/2007.

If you look a little closer, that’s where the herds separate.  The bulk (like 82%) of properties selling are below $500,000.  That’s also the part of the market getting multiple offers and big overbids.  Interestingly, most of those are listed 50% below what they sold for in 2006/2007.  

Compare that to the midmarket, where prices haven’t declined as much, but where also multiple offers are less frequent – except Berkeley and Rockridge.  And the $1 million and over market depends on the area, with Berkeley and Rockridge picking up.  Banks are putting us all through hoops with many new requirements.  Interest rates are slated to rise in the next 6 months.

So whether you’re buying or selling, now is a better time than waiting.  Interest rates are still hovering around 5%, and there’s still a state tax credit for new buyers.  

If you’d like to take advantage of the “discount” prices these days, or you want to make the most of this market as a seller, just give us a call (510-847-2409) or fill out the form below.
We look forward to seeing you!

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