East Bay Real Estate

The first two months of 2008 have seen a dramatic change in real estate sales for the San Ramon Valley and the Lamorinda corridor!

No matter what the media is saying about the demise of real estate values and sales it continues to always be a local experience! (Review my past posting on this topic.) Remember…”if it bleeds it reads!” The media is out of business if there are not dramatic headlines that sells advertising. The reality is that the San Ramon Valley and the Lamorinda areas of the East Bay have had dramatic increases in opened escrows in the first two months of 2008!

It is still a Buyers market with a large inventory of listings. However, there has been a sharp turnaround this year with Buyers taking advantage of the very attractive interest rates and a Federal government that cannot let the national real estate markets faulter because of needing their economic horsepower to continue the growth of the economy. The two geographic pockets in the East Bay that are mentioned above have been the stars in real estate sales this year. Prices are still not rising but as the listing inventory is decreased you will see a continued stabilization of the prices to the point of them beginning to rise in the second quarter. (Jim’s prediction.)

The eastern and western fringes of the East Bay continue to be a challenge with large numbers of short sales and foreclosures still the norm of the market. It is a great time for investors to snap up properties at bargain basement prices. But, don’t expect that same experience in the San Ramon Valley or Lamorinda. Mind you, there are still some bargains in these two areas, but that is not typical. The bargains are homes that were over leveraged with crazy mortgage schemes that are not backfiring on the consumers.

We do our homework everyday regarding statistics and what the facts are regarding our real estate market areas. So, if you are wanting a look at reality instead of the media, give me a buzz and lets talk. Until next time…your East Bay lifestyle dective remains on duty.

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Jim Walberg and Ann Marie Nugent received the

Platinum Award For The success of their company this week!

Atlanta, Georgia:  This week Jim and Ann Marie, operating partners of The Bay Area Team, were at the international convention of Keller Williams Realty in Atlanta, Georgia, participating in their mastermind conference with 8,500 other Realtors.  At the conference’s awards banquet, Jim and Ann Marie were honored with the company’s Platinum Award for the 2007 successes of their team.  This award is given to the top 1% of Realtors in North America and the Territories.  Their dedication to non-stop customer service and just plain hard work as Realtors allowed them to achieve this accomplishment.

In addition, to the awards banquet, there were three days of idea sharing among top Realtors with a focus on internet marketing.  Jim and Ann Marie’s results from their EastBayRealEstate.com blog site / website was an example that was used to exemplify what can be done to connect with a worldwide audience searching for the “San Francisco Bay Area experience” that are awaiting anyone who wants to discover the quality of life offered in this magical region.  For further information contact them today.
 
 

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North American real estate conference and idea sharing is this week.

One of the country’s largest real estate idea sharing conference is this week in Atlanta, Georgia. Keller Williams Realty calls it their “Family Reunion”. There will be thousands of Realtors participating in education sessions, business and marketing networking, and their 2007 annual awards celebration. Of all the conferences I attend each year for continuing education, this is the one that is jam-packed with the latest internet and business tools for Realtors. (Keller Williams Realty is currently the fourth largest and fastest growing real estate company in North America.)

In addition, there will be a separate session for Realtors who are focused on the luxury real estate markets and those focused on the international real estate opportunities being fueled by the “Baby Boomer” explosion into second and third residences. (Fractional deeded ownership is the hot product in this category of residences.) The luxury and international real estate markets are almost all marketed through the internet. It has been unbelievable to see the results that have been created by those Realtors committed to internet marketing and blog sites for these niche real estate markets.

(Again, if you have read some of my latest blog postings you understand that the current mortgage meltdown is not affecting the luxury or international real estate sales. These two markets are not concerned about mortgage rates or down payments. They have the cash and the connections for any mortgages that may be required to purchase these two categories of real estate sales.)

Gary Keller, co-founder of Keller Williams Realty, will be giving his annual address regarding the national market predications for 2008. After his address there will be a question and answer period for the media to clarify any questions they have with his predictions. (Remember, real estate is always a local business with local trends. The national trends do not connect to each of the local markets in America. The national trends are a summary of the local trends.)

Seth Godin, New York times best selling author is the keynote speaker at the conference. His latest book, The Dip, is #5 on the New York Times best seller list, and focuses on what you can do to power through tough times and low points, and how superstars set themselves apart from the pack by escaping dead ends quickly, while staying focused and motivated when it really counts. Godin has changed the way people think about marketing, change and work. His irrepressible speaking style and no-holds-barred blog have helped him create a large following around the world.

Also, as part of the Family Reunion in Atlanta this week there will be acknowledgements of Realtors in the United States who have given back to their communities in very significant ways. It is always a special inspirational breakfast that is held to honor these professionals who live their lives with “service above self” as part of their core personal and business values. Keller Williams Realty’s statement to the Realtors who have chosen to be a part of their international company is, “Building careers worth having, businesses worth owning, and lives worth living.” These are not common value states coming from corporate America. From my experience with this company, they are walking the talk regarding this important company mission statement. I will be attending this conference and will report back on topics that will be of interest to the East Bay real estate communities. Until next time…

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President Bush is still searching for an improvement of his legacy…this may be IT!

Today the Congress sent President Bush the real estate economic stimulus package. This is BIG! This morning the Realtors Marketing Association had our State legislator, Guy Houston, share with us his views of not only the importance of this bill, but several other very important legislative measures that need to be passed as soon as possible for Californians. I will give you more information about his comments later in this article. Below is the email I received from the California Association of Realtors regarding the stimulus package passed today.

The Senate version expands rebate checks for seniors and disabled veterans and includes the same increases to the conforming loan limits for both GSE and FHA found in the House stimulus package. The House just passed the Senate version of the bill and it will now be sent to the White House. The President is expected to sign the legislation by the end of the week, ahead of the Congressional self-appointed deadline of February 15^th. The increase in the conforming loan limits will last through 2008, but C.A.R. and NAR continue to lobby for FHA and GSE reform, making these increases permanent.

The U.S. House of Representatives passed a stimulus package last week that raised the FHA and conforming loan limits to as high as $729,750 in high-cost areas. By increasing the loan limits, borrowers will see immediate relief with new liquidity in the mortgage market and the nation will see an additional 300,000 home sales. Research shows that an increase in the FHA limit would enable an additional 138,000 Americans to purchase homes, and 200,000 families to refinance their homes safely and affordably.

Additionally, raising Fannie Mae and Freddie Mac’s (GSEs) conforming loan limit will provide immediate relief to borrowers and alleviate downward pressure on current housing markets. For instance, increasing the GSE loan limit could result in more than 300,000 additional home sales and strengthen current home prices by 2-3%.

The critical role that GSEs play in providing liquidity to the mortgage market has never been more evident than it is today. The national subprime meltdown has had a dramatic impact on both the cost and availability of mortgages in many markets. Since August 2007, the interest rates for jumbo borrowers have been more than 1 percentage point higher than conforming loans, which can cost homeowners up to $400 month in higher interest payments.

Guy Houston’s additional comments today focused on the bill he is sponsoring in the California legislature that will allow consumers to more easily deal with their lenders as they work through the real mortgage crisis that is actually ruining families throughout the State. He also addressed the bill that he sponsored that requires builders that pile on additional fees to new homes to have those fees be spent within the community where they are charged. The California Association of Realtors was not pleased with his bill because they viewed it as a tax. But, today he again explained that it is the first time that the State has mandated developers to spend any money they collect from these fees within the community collected from. Until this bill was passed the developer could spend that money anywhere they wanted. The Realtors Marketing Association has Mr. Houston speak each year giving us an update on what is happening with legislation that impacts real estate. He again did a great job of keeping all of us informed today.

I will keep you posted as to any new developments with any legislative issues that impact our East Bay real estate community. Until next time…

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The Lazarex Foundation is creating treatment opportunities TODAY!

Miracles are happening everyday for cancer victims because of the Lazarex Foundation and their commitment to find ways for treatments after most doctors have given up on them. Last July, Ann Marie and I ran into Steve Haworth at Piatti’s in Danville for a glass of wine. During our conversation, Steve asked us if we would be his guest at an event at the Blackhawk Museum where he was to be the auctioneer for a big fundraiser. We agreed to join him, not knowing anything about the event or the organization that was to benefit from the auction. (Steve has literally raised millions of dollars for charitable organizations around the State as one of the best auctioneers you will ever see in action.)

We arrived at the event and learned it was benefiting the Lazarex Foundation. What a night! It was not only extremely moving, but one that raised over $300,000 because of Steve Haworth’s skills as an auctioneer to support cancer treatments for cancer patients who have failed with conventional medicine. They are providing access to new and promising treatments, such as Rexin-G which is being developed for FDA approval through Epeius Biotechnologies Corporation. During the event they introduced a young man, Ian, who was able to participate in the Rexin-G treatment program after being told there was no hope left with any conventional treatments. He walked into the event, went on stage and told his remarkable story of the effect this treatment had on saving his life.

So, we enjoyed the evening and spent some money and did not give it much more thought, other than the work the Lazarex Foundation was doing seemed incredibly important to cancer patients. Fast forward….last month I learned that a dear friend of ours, Tami Keeler had joined the Foundation in a key administrative position, and they had opened their offices in Danville with Dana Dornsife as their president! Tami called me up last week and asked if I would join the founder, Dana Dornsife, and her at The Peasant & The Pear for lunch last Friday. I asked Tami, “Why me?” Tami replied that she knew I had a passion for service to others and maybe there would be some synergy opportunities discovered. So, I had lunch with them.

WOW! What a lunch was had. There are truly angels on earth and Dana Dornsife is one of them. You may remember one of my favorite phrases, “To whom much is given, much is required!” Dana and her husband, David Dornsife, are two people who “walk this talk” everyday! Below is a portion of a press release that is a specific example of their commitment to serving the needs of others. This $400,000 grant was awarded personally from David and Dana Dornsife!!!

SAN MARINO, CA - Epeius Biotechnologies Corporation announced today that the Company has been awarded a $400,000 grant by the Lazarex Cancer Foundation to expand and support ongoing cancer gene therapy clinical trials for advanced and metastatic pancreatic cancer. Rexin-G(TM) is the world’s first targeted injectible gene therapy vector to be approved for use in clinical trials in the USA and abroad. When injected intravenously, Rexin-G(TM) seeks out and destroys metastatic cancer, without the systemic toxicity generally associated with chemotherapy.

Please check out the links on this posting and see if there are ways you might want to get involved with this incredible organization. You can even call up Dana for a lunch. Or, if Tami ever calls you to schedule a lunch with Dana, say yes! It will change your life. Until next time…contact me if you would like more information about the information in this article!

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Since East Bay real estate is currently a Buyers market, become one NOW!

Here we are in the first week of February and there are still Sellers who are living in “pretend” that there has not been a price correction in the East Bay real estate market place. The price correction obviously varies from the Berkley side of the hills, Orinda to Pleasanton, central Contra Costa, southern Alameda county, and East county region. No matter what region it is, Buyers are the ones running the show this month. So, Sellers, pay attention! You need to become a Buyer ASAP! As long as you hang out as a Seller you will not be having the opportunities Buyers have today - unbelievable mortgage rates, a selection of great homes from which to chose, and awesome values!

Here is the dynamic that Sellers need to consider. In the hyper-appreciating market of 2003 to 2005, it was a Sellers market, and new price highs were set each month in almost all of East Bay real estate. The Sellers were “going to the bank”, however, once they sold their home, becoming a Buyer did not allow them the same advantages of being a Seller. Why? Because the price of the next home they were purchasing in the East Bay just appreciated another 2.5% since they sold their home. So, the Seller who just became a Buyer was now chasing a hyper-appreciating market and needed to pay top dollar for their next home, and typically they were in multiple offers with other very competitive Buyers who wanted the same home.

So, here we are today. The reason a Seller needs to become a Buyer immediately is because of the complete opposite market dynamic in the East Bay real estate environment. The Seller may not be happy about their eventual selling price, but once they get over current market realities, they will be in the drivers seat of this market as a Buyer. It is not a market that is hyper-appreciating. It is a market that has had over 18 months of price corrections, interest rates are at a three to four year low, and the government is working hard to create the needed mortgage money and debt assistance extremely favorable to California Buyers.

And, when I hear Buyers talking about waiting on their next purchases, “… until the market hits bottom”, my question back to them is, “What information sources are you using to determine when the market will hit bottom?” Almost 100% of the time they say they are using newspapers and the media to make that determination. You must be kidding! Remember, if it “bleeds it reads”! Here is the latest snap shot from DataQuick for January 2008, that provides the real stats on what is happening in each local real estate market;

• Current months of inventory are down 25% in most East Bay real estate markets compared to thirty days ago! This is a HUGE shift!
• The mini-markets continue with large variations between cities, with the San Ramon Valley at 7.04 months of inventory, and Lamorinda at 6.95 months of inventory. ( Months of inventory means how long would it take to sell the current number of homes for sale in a given city if no more listings came on the market.)
• Overall, for the twenty-six communities in the East Bay, there is 10.33 months of inventory which indicates it is still a very strong Buyer’s market, BUT it is starting to shift!

One other indicator to watch closely today is interest rates. As mortgage rates decline you will see an increase in sales, which will begin to stabilize home prices, which will begin a slow shift to a level playing field for both Buyers and Sellers. The window of opportunity for Buyers is starting to close before your very eyes. So, Sellers, become a Buyer ASAP and enjoy the buying experience of the current East Bay real estate markets. Until next time…your real estate and lifestyle detective remains on duty. I always welcome your comments and perspectives.

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