How Will Changes in New Construction Affect Buyers and Sellers?

Changes in new construction could have a pretty significant impact on the real estate market. I’ll go over what to expect today.

Selling in the East Bay area? Get a free home value report

Purchasing in the East Bay area? Get full MLS access

How are changes in new home construction going to affect the market? 

If you look at the chart above, you’ll see what builders are expecting in 2017 compared to what they actually faced in 2016. This year one of their biggest concerns is building material prices. 

If you’re looking to buy new construction, be prepared for an uptick in prices.

The reason for this is that the United States has a softwood lumber agreement with Canada and they are at a stalemate in negotiations pertaining to unfair import practices for lumber. Until that gets resolved, we are likely to see much higher prices for lumber and other building materials. In fact, from February 3rd to February 10th, the framing lumber composite price rose from $366 to $391, which is the largest weekly price jump since August of 2003. 

When the builders have to take on these costs, they have to pass it on to the consumer. So, if you are looking to purchase a new construction home, you’ll want to keep in mind that prices of new construction homes will likely be going up. If you’re a seller, the uptick in new construction prices could bode well for you too, as that might increase the value and demand for your home. 

If you have any questions, please don’t hesitate to give me a call or send me an email. I look forward to hearing from you!

How the Baby Boomer Generation Affects the Real Estate Market

Selling in the East Bay area?  Get a free home value report

 Purchasing in the East Bay area? Get full MLS access

All of the baby boomers are looking to retire. Where are they going? How will their moves impact you and your home value?

First, it’s important to know that many more people are retiring today than they were 10 years ago. Ten years ago, 2.2 million people turned 65 each year. That number has surged to 3.5 million retirees this year, and by 2025, 4.2 million people will be retiring each year. A lot of retirees are cashing out on their home equity, and there are a few different things they are doing.

For example, many baby boomers are moving to downtown areas where it’s easier to walk to different restaurants and entertainment centers. Some are also looking for post-retirement employment, so it’s important for them to live closer to those areas. Walnut Creek is a popular destination for baby boomers right now.

"Downtown areas, like Walnut Creek, are popular destinations for baby boomers."

Still, a lot of those people who move downtown only rent a home for a couple of years. They’re not sure where they’re going, but they do want to be downtown and by popular amenities for awhile before they move out of the area.

Of course, others are moving to be closer to their kids. Still, more are following typical migration patterns to El Dorado Hills, Folsom, Texas, Phoenix, or Tucson. Many retirees who sell in the East Bay move to one of those places.

If you have any questions, give me a call or send me an email. I would be happy to help you!

Is There a Housing Bubble Ahead for San Ramon?

Selling in the East Bay area?  Get a free home value report

 Purchasing in the East Bay area? Get full MLS access

Is there a bubble coming to the East Bay real estate market? You may have heard something about this in newspaper headlines. Today, we'll share our opinion with you.

Prices increase, sometimes by as much as 25%. Now, we're at the peak of the market. However, loans given out to buyers with little equity caused the last housing bubble. When you could buy a home for up to 3% down, it was easy to walk away from the property if you got into trouble. At that point, you didn't invest too much in it.

Between 2013 and 2015, prices increased quite a bit. Many investors bought properties on the East Bay. Those buyers gained equity over the last year or two. We refer to these as low-risk properties.

Since many people have put 20% down to buy their homes, they have more equity and more protection. They're not going to walk away from the property because they have truly invested in it.

We do still have 0% down VA loans and 3% down FHA loans, but those are typically available for properties priced below $700,000. If these homeowners run into some kind of hardship, it is easier for them to walk away from the property. That being said, in our current market we will have many buyers interested in snatching up that property.

On the higher end of the market, if people default on properties over $2 million, that doesn't really impact anyone other than the homeowner and the bank that financed the property.

Ultimately, we will see slower growth, but no bubble. There is a huge demand for East Bay housing and no reason to worry about a bubble.

If you have any questions for us, give us a call or send us an email. We look forward to hearing from you!

It's Going to Take Longer to Buy a Home in the East Bay

Selling in the East Bay area?  Get a free home value report

 Purchasing in the East Bay area? Get full MLS access

The CFPB implemented TRID, or the TILA-RESPA Integrated Disclosure, on October 3rd. TRID extends the period of time the buyer has to read the closing documents during a real estate transaction.

Agents will be required to write out a contract for at least 45 days. In total, there is a six-day period for the transaction to be completed. The seller has two days to send the documents over to the buyer. The buyer has three days to review, and then the last day is reserved for closing.

Your closing disclosure will change. The HUD settlement statement will still be present, but it will look different than before. The breakdown is going to be more finite, so it may cause some confusion when these changes are first implemented. We recommend that agents call the title company if you have any questions, rather than trying to answer them yourself.

The biggest thing that the buyer needs to be aware of is that transactions will take longer to close. They will be given more information that they need to look at before they can close the transaction, so it will take a little longer. The good news is the extended time frame gives you more time to ask questions and understand exactly what is going on.

If you have any questions about this major development, please don't hesitate to contact us. If you need to get out of your home quickly, some of our lenders do have loan programs available that aren't subject to TRID regulations.

We look forward to speaking with you!

How Do Significant Changes in the East Bay Market Affect You?

Selling in the East Bay area?  Get a free home value report

 Purchasing in the East Bay area? Get full MLS access

Today, I want to briefly touch on some of the significant changes we've seen here in the East Bay real estate market. How do they affect you as a buyer or seller?

In the last two to three months, things have changed quite a bit. Not long ago, buyers were receiving multiple offers on their homes and getting offers above list price!

While it's still a seller's market, we're not seeing a crazy, fast-moving market like we were a few months back. Homes may stay on the market for weeks at a time now, and if a home is priced over a million dollars, it could take 30-45 days to sell.

These current conditions are great news for buyers, who should really consider making their move now. Homes are sitting on the market a bit longer and price reductions are more common than they have been, so now is a good time to take advantage of the market. In short, it's a great time to get a property at a fantastic value.

These conditions won't last too long. If the early winter months of 2016 are anything like we've seen in the past, inventory will decline rapidly and demand will skyrocket. This will lead to short market times and multiple offer situations that will last through spring and summer, much like we saw this year.

With interest rates slated to rise next year and another busy market in the forecast, now is an ideal time to buy a home if you are absolutely ready to do so. If you're not sure and would like to talk it over, please don't hesitate to reach out to us. We're always available to help you with your real estate needs!

How to Accurately Price Your Home in Today's Market

The East Bay real estate market is diverse with both buyers and investors alike seeking a variety of different properties. As a prospective seller, you can find out the market value of your property with a free home value report right here, or if you're looking to purchase in the East Bay click here for full MLS access. Always feel free to reach out to us for any questions regarding the current market conditions, or the value of your property at 925-855-3432. 

As you probably know, the market is ever-changing. Conditions are unpredictable and often shift monthly. A perfect example of how quickly things can change is the East Bay community of San Ramon. Here are some trends that have developed in only 7 days:

• 10 new listings.
• 8 sold properties.
• 9 properties with price reductions.

The reason we've seen 9 price reductions in the last week alone is that there are far fewer buyers now than there were over the last 6 months. In addition, we've seen more properties come on the market, which has compounded the problem.

If you are thinking of selling your home in the next 5 months or so, you need to make sure your real estate agent is looking closely at comps. If you price your home like people have over the last last few months - when there were multiple offer situations and a lot of eager buyers - it may be stuck on the market for a long time. 

The right price for today's market is not what it was a month ago. You need to price your home to the market and  prepare it for sale so you can sell it quickly and at the maximum possible value. A real estate professional can help you with that. If you have any questions about market values or the best way to properly prepare your home to be sold, give us a call or shoot us an email. We would love to assist you.

Quick Market Update for East Bay

The East Bay real estate market is diverse with both buyers and investors alike seeking a variety of different properties. As a prospective seller, you can find out the market value of your property with a free home value report right here, or if you're looking to purchase in the East Bay click here for full MLS access. Always feel free to reach out to us for any questions regarding the current market conditions, or the value of your property at 925-855-3432.

This week, we share what we know about market changes in East Bay over the last 12 months. We've seen most homes in our area appreciate by as much as 15-20%. This is good news if you are considering selling your home. Your home value has likely increased in value over the last year, making now an opportune time to put it on the market. If you'd like more details about the appreciation we've seen lately, or what conditions are like in your specific neighborhood, give us a call or shoot us an email and we will help you make the right real estate decisions at the right time.

2014 East Bay Real Estate Market Projections

The East Bay real estate market is diverse with both buyers and investors alike seeking a variety of different properties. As a prospective seller, you can find out the market value of your property with a Free Home Value Report Right Here, or if you're looking to purchase in the East Bay Click Here for Full MLS Access. Always feel free to reach out to us for any questions regarding the current market conditions, or the value of your property at 925-855-3432.

Welcome to My New Real Estate Video Blog!

To find out where the East Bay market is headed in 2014, it is best to begin by looking at the past 12-15 months. At the beginning of 2013, home prices bottomed out which in turn attracted cash-paying investors to compete with first-time and move-up home buyers. This was most apparent in the $600,000 and below price range – we saw multiple offers within days and multiple offers that exceed asking price.
 

This heavy competition forced out non-cash paying buyers and home prices continued to soar. This continued until fall and winter of 2013. Inventory levels remained low as well as available buyers. Once investors realized that there were no longer any “deals” and prices were too high to invest, the market began to slow.
Fast forwarding to 2014, most economists have settled on three reasons for why prices will continue to rise:
 

1.    Improved job market
2.    Millennial generation buying homes
3.    Strong mortgage availability
 

2014 is proving to be another great year for the East Bay real estate market. Every year, hundreds of experts compile the Home Price Expectation Survey. The results are in for 2014 and the data shows that most economists feel that home prices will increase by an average of 4.5%!
 
Looking to the Future.

It is safe to say that due to the demand and lack of availability in housing in the East Bay market, appreciation could exceed the national average of 4.5%. Economists also believe that over the next five years, we will experience an average of 4% appreciation year-over-year. I also expect our local market to stay hot over the next few months – there is little inventory and we are still seeing multiple offer scenarios. Buyer demand will remain strong and people will begin listing their homes in May and June once school is out. This will stabilize the market as there will be a level amount of both buyers and sellers.
 
Let's Work Together!

If you have any questions in regards to buying, selling or investing, please feel free to reach out to us by phone and email. Thanks and stay tuned for the next “East Bay Real Estate Market Minute!”