1.) Demand Is High

Homes are selling at the fastest pace since November 2009 when the market spiked in response to the home buyer tax credit. The most recent Existing Home Sales Report by the National Association of Realtors (NAR) showed that monthly sales increased 9.7% over the same month last year. Total sales have been above year-ago levels for 22 consecutive months. There are buyers out there right now (buyer traffic is 31 percent stronger than a year ago) and they are serious about purchasing.

2.) Supply Is Beginning to Increase

Total housing inventory last month rose 11.9% to 2.16 million homes for sale. This represents a 5.2-month supply at the current sales pace, compared with 4.3 months in January. Many expect inventory to continue to rise as more sellers escape the shackles of negative equity. Selling now while demand is high and before supply increases may garner you your best price.

3.) New Construction Is Coming Back

Over the last several years, most homeowners selling their home did not have to compete with a new construction project around the block. As the market is recovering, more and more builders are jumping back in. These ‘shiny’ new homes will again become competition as they are an attractive alternative for many purchasers.

4.) Interest Rates Are Rising

According to Freddie Mac’s Primary Mortgage Market Survey, interest rates for a 30-year mortgage have shot up to 3.98% which represents a jump of more than ½ point since the beginning of the year. Even those trying to be the voice of reason on this issue are projecting higher rates. For example, Polyana da Costa, senior mortgage analyst at Bankrate.com said:

“Rates are unlikely to keep going up so quickly and should remain below 5%.”

Whether you are moving up or moving down, your housing expense will be more a year from now if a mortgage is necessary to purchase your next home.

5.) It’s Time to Move On with Your Life

Look at the reason you are thinking about selling and decide whether it is worth waiting. Is the possibility of a few extra dollars more important than being with family; more important than your health; more important than having the freedom to go on with your life the way you think you should?

You already know the answers to the questions we just asked. You have the power to take back control of your situation by putting the house on the market today. The time may have come for you and your family to move on and start living the life you desire. That is what is truly important.

Find Out the Current Value of Your Home:

Listing courtesy of my good buddy Dave Toledo with Prudential CA Realty.

With the closing of May, Livermore is holding value quite well. We actually hit a median price of $550k back in March, then bumped up to $578K in April, now back to $550k. Would you like to take a guess where prices will be at the conclusion of June? Take your best shot!

At any rate. What does $550k buy you in Livermore? My buddy at Prudential Realty, Dave Toledo, just listed a new property on 846 Seminole Drive at $525k. It’s a 4 Bedroom, 3 Bath, 1,848 square foot house. Currently, the average list price to sale price ratio is about 104%…which brings you quite close to that magical $550k value.

Here’s what’s been happening in Livermore this past year.
As you can see, we’ve seen a pretty good uptick in home values the past 12 months. The main reason(s)? Low inventory and low interest rates. But alas, Times They are a Changin. We’re starting to see more homes come to market (marginally). More significantly, interest rates are on the march.

What do you think about this market? Let me know! Got a Question? Ask me!

In the meantime, here’s a smattering of homes for sale in Livermore priced between $500k-$600k

Showing properties 1 - 10 of 14. See more Real estate in the city of Livermore.
(all data current as of 6/20/2013)

From March 2012 to March 2013, there has been a 37.5% increase in the median sale price of a single family home! The average time on market has dropped during the same time period from 64 DOM (days on market) to only 21.

Why are we see this significant change in market activity? There are 2 primary reasons: Record low interest rates and low housing inventory.

This being said, in just the past few weeks, we have seen a noticeable uptick in new listings hitting the market. Generally, as we head into summer, we see a larger quantity of homes hitting the market, as this is when families begin planning their move or upgrading to a larger home. Much easier for a family to move in the summer when children are out of school. However, with the increased inventory, we will see an increased appetite for housing, as those families need to find their replacement homes.

We’re also seeing increased inventory due to homes rising above the ‘under water’ line. When a homeowner owes more than there home is worth, it makes it very difficult to sell, or only possible to sell as a short-sale. As prices increase, the market is self-correcting the problem of value, allowing these homeowners to sell their homes without distress and actually return a profit. Much better on the psyche to sell when there is positive worth!

My outlook through the summer is a slight continued uptick in the appreciation in home values, but not rocket-roaring up to the moon appreciation as we’ve experienced in the last 12 months.

Questions About the Value of Your Home?

Are you a property owner, landlord, tenant or property manager? Then listen up! There are a few new laws that just became effective on January 1, 2013.

Yup, this page is rather boring, but the information provided can help you minimize risk, liability and save you a boatload of money!

Landlord Must Disclose Notice of Default to Prospective Tenants: Every landlord who offers for rent a residential property containing one-to-four units must disclose in writing to any prospective tenant the receipt of a notice of default that has not been rescinded. This disclosure must be made before executing a lease agreement. If a landlord violates this law, the tenant can elect to void the lease and recover one month’s rent or twice the amount of actual damages, whichever is greater, plus all prepaid rent. If the lease is not voided and the foreclosure sale has not occurred, the tenant may deduct one month’s rent from future amounts owed. The written disclosure notice as provided by statute must be in English, Spanish, Chinese, Tagalog, Vietnamese, and Korean. A property manager will not be held liable for failing to provide the written disclosure notice unless the landlord has given the property manager written instructions to deliver the written disclosure to the tenant. This law will expire on January 1, 2018. Senate Bill 1191.

Landlord May Dispose Abandoned Personal Property Less Than $700: The total resale value of personal property left behind by a tenant after termination of a tenancy that the landlord must sell at a public auction (rather than dispose of or retain for his or her own use), has been increased from $300 to $700, if certain procedures are followed. This law, however, also prohibits a landlord from assessing any storage cost if the tenant reclaims personal property within 2 days of vacating the premises. The statutory notices of Right to Reclaim Abandoned Property have been revised to reflect these changes. Furthermore, a landlord’s notices of termination of tenancy and pre-move out inspection must contain specified language that former tenants may reclaim abandoned personal property left on the premises, subject to certain conditions. Assembly Bill 2303.

Tenant Entitled to a 90-Day Notice to Terminate After Foreclosure: A month-to-month tenant in possession of a rental housing unit at the time the property is foreclosed must be given a 90-day written notice to terminate under California law. For a fixed-term residential lease, the tenant can generally remain until the end of the lease term, and all rights and obligations under the lease shall survive foreclosure, including the tenant’s obligation to pay rent. However, the landlord can give a 90-day written notice to terminate a fixed-term lease after foreclosure under any of the following four circumstances: (1) the purchaser or successor-in-interest will occupy the property as a primary residence; (2) the tenant is the borrower or the borrower’s child, spouse, or parent; (3) the lease was not the result of an arms’ length transaction; or (4) the lease requires rent that is substantially below fair market rent (except if under rent control or government subsidy). The purchaser or successor-in-interest bears the burden of proving that one of the four exceptions has been met. This law does not apply if a borrower stays in the property as a tenant, subtenant, or occupant, or if the property is subject to just cause rent control. This law will expire on December 31, 2019. This new California law is similar, but not identical, to the 90-day termination notice requirement under the federal Protecting Tenants at Foreclosure Act (12 U.S.C. § 5201, et seq.) (as extended by the Dodd-Frank Wall Street Reform and Consumer Protection Act), which is set to expire on December 31, 2014. Assembly Bill 2610.

Are you a property owner, looking for a property management firm that will help keep you legally compliant and also get you the best return on your investment with the least amount of stress? Look no further, you’re at the right place: CPB Property Management.

We’ve survived the Mayan calendar apocalypse.

We’ve even made it past the “Fiscal Cliff.”

Do you know what else survived into 2013? The Mortgage Forgiveness Debt Relief Act of 2007. Despite Congress’ best efforts to screw up our economy, they did manage to put this Debt Relief Act back on life support…at least for one more year.

Stay tuned for the up coming Debt Ceiling Crisis and ensuing debate. Hopefully we won’t have a repeat from 2011.

If you would like to know how you personally can take advantage of this tax break, just send me a note through the form below or give me a call at 510-270-2201.

No one needs to go through foreclosure. There is a better way.

But really, what is this fiscal cliff? What impact will it have on us? What effect will it have on YOU?

The folks over at Saxo Capital Markets produced this infographic, which I’ve broken down into slides. This should help simplify things…perhaps even an economist will get it. ; )

This is a real estate blog, so we best be talking about the cliff’s implications upon the real estate market. Two things come immediately to mind: The Mortgage Interest Deduction and the Housing Recovery.

Congress, as part of their negotiations on avoiding the fiscal cliff, has made direct references to “closing loopholes’ and “limiting deductions” as a way to raise revenues. Clearly, the mortgage interest deduction is high on this list of revenue enhancers.

Losing the mortgage interest deduction will disproportionately affect the middle class because a larger proportion of the middle class takes the deduction. In California, 89% of those who took the mortgage interest deduction earned less than $200,000. Losing the deduction would cost the average California taxpayer over $3,900!

Now let’s look at the other piece of the puzzle. Here we are, a solid year or two into a housing recovery. The market seems to have bottomed out in 2010 and we’ve seen some unbelievable market strength this year. More and more homeowners are now rising up above the waterline, no longer under water on their home mortgages! We can all thank the affordability index with that factor. That index is made up of low interest rates, coupled with tax breaks for homeowners (think mortgage and tax deductions).

Keep in mind, this is not a new ‘partisan’ tax break for home owners. The key concept of the interest deduction on loans actually began a hundred years ago! There can be no question that the US Housing market is a major driver of economic growth and stability in our country.

If it ain’t broke, don’t fix it!

Messing with the formula that’s keeping our fragile economy afloat is absolutely crazy. If congress eliminates or significantly kneecaps this mortgage interest deduction, then we can kiss our housing recovery goodbye.

If you’d like to take action and actively protect your money, then pick up the phone and call your congressman. Call (202) 224-3121. The Capitol switchboard operator will help you identify your particular member of congress and connect you to them.

In the meantime, enjoy your holidays and make it a very Happy and safe New Year! ; )

Do I really need to add more verbiage to this article? Probably not. The chart speaks for itself. But I’m going to chat it up anyways. Buckle up.

Your home affordability factor is directly driven by mortgage interest rates. Basically, when interest rates rise by 1%, your purchasing power falls by about 10%. Since we haven’t really seen interest rates in quite some time, this concept may be foreign to you.

Let me put it conversely. When interest rates DROP by 1%, your purchase power increases by about 10%. That’s amazing.

Let’s breathe some life into this equation. You meet with your lender today, and get pre-approved for a $500,000 home loan. Cool. From the chart above, that’s going to cost you about $2,000/month (today is 12/12/12, and the going rate is 3.2%). While you go out shopping for homes, you notice that there aren’t too many available. So the process is getting stretched out. Finally, you find a home, get into contract, and it’s time to get your loan finalized. Problem: interest rates have slowly crept up by 1 percent. You think, no problem! it’s only 1 percent higher…we’re still at historic lows.

Houston, we’ve got a problem. That extra 1 percent bump in interest rate just knocked $50,000 dollars off of your approval! You can no longer afford that home, as the loan payment has gone from $2,000/mo up to $2,200/mo. Ouch. Unless you get a 10% raise from your boss, this is going to be a no-go.

Now take another look at the above chart. Remember what the charts looked like that led up to the housing bubble (see chart to the right)? Home prices going up, up and away? They look eerily similar. And as we know, all good things come to end. Or at least, they stop being as good as they were before.

So, before interest rates start their ascent and before home prices rise beyond your reach, you owe it to yourself and family to explore the prospect of home ownership! Why pay your landlords mortgage. Pay for your own! Rent goes up nearly every year. When you buy a home with a 30-year loan, your first payment is exactly the same as your last! ; )

Here’s what to do now: and it’s not difficult at all: Contact a lender and tell him/her that you want to get pre-approved for a home loan. They’ll take it from there. Once your pre-approved, your next step: meet with a Realtor to start looking for your home! It’s more exciting that you can imagine. Stop watching House Hunters, and go do your OWN house hunting! (ok, you can watch House Hunters… it’s rather entertaining and informing).

Looking for a trustworthy lender who can you get the best deal? I don’t do loans, but I know some awesome loan agents that can. Just ask me!

Thinking of buying a home?

Not sure exactly where to begin?

We’re having a FREE step-by-step workshop!

We’ll take you through the homebuying process from start to finish, exploring real-life examples:

• Understand costs upfront, including expenses many people don’t think about
• Determine a price range that’s realistic and comfortable for you
• Get to know more about the real estate agent‘s role and responsibilities
• Learn what your credit score means and how it can impact your loan/home mortgage
• Identify paperwork you need for a smooth loan process

You’ll leave this workshop better prepared and ready to make owning your first home a reality!

Where:
CHASE Branch on South K Street
275 South K Street
Livermore, CA 94550

When: Wednesday, December 12th at 6pm.

Please RSVP to Michelle Elliott at 925-373-0835
or
Simply fill out the form below.
[contact-form-7]

Because, it will now be known as: Livermore Valley Premium Outlets!

Yup, the popular outlet mall was just acquired by the Simon Property Group. Looks like that top dollar temporary banner off of 580 will be vanishing soon. Incidentally, Simon also owns the Stoneridge Shopping Mall, just a few miles down the road. I think Simon now says: go shopping.

FYI: According to the Oakland Tribune, Livermore Outlet Mall’s grand opening extravaganza attracted roughly 350,000 visitors between last Thursday and Sunday.

That’s what you get when you jam 130 stores into a 512,000 square foot shopping center.

Looking to move closer to Livermore? Here are the 5 most recent listings to hit the market in Livermore:

Showing properties 1 - 5 of 76. See more Livermore.
(all data current as of 6/20/2013)

1. $305,000 : 1673 PASEO LAGUNA SECO, LIVERMORE
   
   3 beds, 2 full, 1 part baths

   Home size: 1,379 sq ft

   Lot size: 1,852 sqft

   Year built: 1991

   Parking spots: 2

   Days on market: 1
2. $499,000 : 1655 CALLE DEL REY, LIVERMORE
   
   3 beds, 3 full baths

   Home size: 1,752 sq ft

   Lot size: 2,857 sqft

   Year built: 1996

   Parking spots: 2

   Days on market: 1
3. $529,000 : 912 WAVERLY CMN, LIVERMORE
   
   3 beds, 2 full baths

   Home size: 1,733 sq ft

   Lot size: 4,219 sqft

   Year built: 1990

   Parking spots: 2

   Days on market: 1
4. $825,000 : 4154 SONIA ST, LIVERMORE
   
   5 beds, 3 full, 1 part baths

   Home size: 3,019 sq ft

   Lot size: 9,485 sqft

   Year built: 2006

   Parking spots: 2

   Days on market: 1
5. $599,950 : 6535 GREEN HILLS CT, LIVERMORE
   
   3 beds, 3 full baths

   Home size: 1,700 sq ft

   Lot size: 6,572 sqft

   Year built: 2000

   Parking spots: 2

   Days on market: 1

Listing information deemed reliable but not guaranteed. Read full disclaimer.

If you’re contemplating a short-sale, there are some additional tax implications you should be aware of as well.

Got a question about selling your home?
Would you like to know it’s value?