Open House 12/15/13
Follow us as we show you the San Francisco East Bay market trends, statistics, price changes and sales numbers for Alameda & Contra Costa Counties.
Many of the housing markets that were hit hard during the housing bust from 2007 until 2011, especially in California, have bounced back quickly to where they were in 2005 and 2006.
However, other sites in the East Coast or Midwest have had a slower move towards recovery with still sluggish sales and low increase in values.
Though multiple economic factors are at work, appraisal-industry experts believe they have isolated a crucial and perhaps surprising answer: Real-estate markets rebound much faster in areas where state law permits foreclosures to proceed quickly, moving homes with defaulted loans into new owners’ hands expeditiously, rather than allowing them to sit and deteriorate, tied up in court procedures for years.
Prices of foreclosed homes in such areas typically are depressed and negatively affect values of neighboring properties, but they don’t remain so for lengthy periods because investors and other buyers swoop in and return them to residential use rapidly.
For More information on this, please visit the article written in Seattle Times.
The 3rd Quarter Zillow Real Estate Market Report was released today. Nationwide, home values have increased 1.2% from 2nd Quarter, 2013 and 6.4% year over year. The national median home price is now at $163,000. In the San Francisco MSA (metropolitan statistical area), the median home price sits at $629,100 with 25% price appreciation from 3rd Quarter 2012. This is still about 11% from the peak of the market which occurred in January, 2006. Foreclosures continue to decline and only made up 6.4% of all sales. Average Rents in the Bay Area sit at $2,567 which is a year over year increase of 3.2%.
What does this mean for the East Bay??
I looked at a few of the major markets in the East Bay using Zillow's data and found:
Overall, a great showing from 3rd Quarter 2012 to 3rd Quarter 2013! You can read the full Zillow 3rd Quarter, 2013 Market Report here
The amount of underwater homes continues to decrease at the fastest rate in the past two years during the 3rd quarter of 2013. This continues to be great news for the bay area. An additional $42,000 homes in the 3rd quarter of 2013 have emerged from the red into the black in the East Bay, Peninsula and South Bay. This indicates that housing recovery in the Bay Area continues to improve as more people have positive equity in their homes over the past two years. See the full story
Great story about the value that Mortgage Brokers (like our sister office HP Investments, Inc ) bring to the table. One of the main differences between using a Mortgage Broker and using a bank is that the YSP, or Yield Spread Premium, that is paid on a loan belongs to the borrower when using a mortgage broker. Mortgage Brokers use the YSP to pay borrowers' closing costs and if there is extra YSP after paying closing costs, to reduce the principal balance on the borrowers loan. When a borrower uses a bank the premium, called SRP (Service Release Premimum) is not disclosed on the HUD-1 (settlement statement) and is paid to the bank, not the borrower.
Another huge reason to use a Mortgage Broker is that they are usually approved with many lenders and can deliver the best rate at the time to the borrower. HP Investments, Inc uses a tool called Loansifter to compare all of their approved lenders on every loan scenario run, so that they can deliver the best interest rate available at the time to their clients.
Click Here to see the NAMB (National Association of Mortgage Brokers) Governmental Affairs story by Kenneth R. Harney about how Mortgage Brokers use YSP to credit their clients
Good article on single family home starts rising while multi-family real estate housing starts starting to wane. Building of Single Family Homes will ease inventory shortage and might be a great investment. You can see the full article on AOL Real Estate
East Bay inventory levels continue to rise from August 2012 to August 2013 in the Alameda and Contra Costa Counties of California. San Leandro homes for sale listings increase 33%, Newark inventory up 88% and Union City was up 58%.
Real Estate sales in the East Bay, however, were down from August 2012 to August 2013 mostly because of lower inventory levels. Real Estate sales in the Casto Valley were unchanged while San Leandro was down 29% and San Lorenzo down 14%. The Tri-Valley are experience stronger sales growth with San Ramon leading with 46%, Livermore with 26% and Dublin at 11% year over year sales growth.
The Detached home report for August of 2013. Inventory is still in fairly short supply. Each city is showing about 1 month of inventory based on current home sales for August 2013. The average days on market is under 30 with Dublin leading the pack at 21 as the average days on market needed to sell a detached, single family home.
Overall, August sales took a small dip compared with July numbers in many markets, some markets were about the same as July and then there was Pleasanton where 74 homes were sold in August compared with 58 in July.
Read the report in detail. Areas covered are: Alameda, Castro Valley, Danville, Dublin, Fremont, Hayward, Livermore, Newark, Pleasanton, San Leandro, San Lorenzo, San Ramon and Union City.