East Bay Real Estate

Jim Walberg had the Nissan GT-R show up at his house last week!

OK, so, you remember my article late last year about the San Francisco Auto Show at the Moscone Center when the Nissan GT-R road ready race car was unveiled by Wally Burchfield - the Western U.S. Vice President for Nissan.  Well, Wally showed up at my house last week and asked if I would like to go for a ride.  I let him know that I was about to sit down for dinner, and maybe we could go for a ride the next day.  He said, “No, I think you will want to go for a ride right now because I drove up to your house with the Nissan GT-R and I would like to have you enjoy a test drive.”  So, dinner was immediately postponed.  In spite of oil prices people are standing in BIG lines to buy this car!

I walked out to my driveway and I was blown away that this amazing race car that Nissan has now built for consumers was sitting right in front of my house.  You need to promise not to tell the police, but I suggested we drive out to Highland Road, off Camino Tassajara and see what it could do on this road of curves and bumps.  Oh, my gosh, what a ride we had.  The GT-R never had it’s rear end loosen up, it never left the road in spite of the bumps, and we never got out of 4^th gear with two more gears to go.  Wally let me know that the car actually tops out at 198 MPH, and goes from 0 to 60 in 3.2 seconds!  Holy Moly, what a car they have built for the road!!!

Wally had the car because of the annual Z Rally that was at Blackhawk Plaza.  He parked it at the Blackhawk Car Museum for the day and then brought it out for the Z Rally - sponsored by Z Owners Of Northern California.  So, I stopped by the Z Rally on Saturday, took some photos and spoke with several of the ZONC members - Stuart and Sandra Gates, and Lee Woolfolk, to see what their impressions were of the race car that is now available for street driving - at a minimum cost of $70,000 with only 2,000 being sold in the U.S this year.  Because of the small amount of cars being delivered to the U.S. the price is rising over the $100,000 mark.  Wally took some of them for test drives.  Here is one of the quotes of the passengers - Lee Woolfolk, “Hi Wally, I was very impressed by the way the GTR launched when the accelerator petal is floored.  The rear tires gave a little hint of wheel spin and we were off. The computer does a fantastic job of channeling the excess power to the front wheels. Stuart and I both drive Twin Turbo 300 ZX’s, mine is modified with slightly larger turbo’s and when they come on boost I get instant wheel spin in the lower gears making it harder to control. This car seems so much easier to drive at the limit and anywhere in between.  Handling and engine info is in a league all its own. Very impressive car and well worth the money. Nissan scored a home run! Now how can I put one in my garage!!!

Wally also gave me the marketing memo on the GT-R, “Nissan created the all-new Nissan GT-R, which offers advanced high performance for secure and enjoyable driving by minimizing the effects of climatic, road condition or driving technique limitations. The Nissan GT-R offers ultimate performance for virtually every driving situation - whether it be the Nurburgring circuit, to snow, rain or urban areas - all manageable by the GT-R driver through advanced technology and driving dynamics.

“The Nissan GT-R’s unique characteristics are instilled not just in the vehicle’s design, but also through a specialized production process. Carbon fiber, aluminum and steel components are assembled with a special high-precision process, which includes a series of vibration tests. Engines and transmissions are assembled by a single craftsman in a “clean room” environment and upon completion, every GT-R undergoes a battery of comprehensive tests to ensure the proper operation of all vehicle components.”

You also may remember that Wally was the one that gave me the scoop on the Nissan Rogue that came out last year.  It is so fun to have clients who are involved in fun companies.  Nissan is on a roll with it’s amazing high performance, fuel efficient, and just plain fun cars.  Check out your local Nissan dealers for more information.

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Ilya Moshensky is one of the finest real estate photographers that I have met!

I first met Ilya at the Luxury Real Estate conference in Del Mar, California several months ago.  He seemed to be everywhere during the conference taking photos of the participants and various events.  I final asked one of the Luxury Real Estate staff people who was this guy!  She smiled and said that he is the finest photographer they had found for capturing the essence of luxury real estate homes and estates.  I began some homework after the conference to see some examples of this work since we always need a top photographer’s services for the luxury properties we represent - both in the San Francisco Bay Area and the Caribbean.  Boy, was I impressed with what I discovered.

My experience is that Ilya’s Photography sets one of the highest standards for quality in the industry with over 30 years of experience. Ilya is the principal photographer of Ilya’s Photography, and he has enjoyed a lifelong passion his work with the camera.  His reputation for excellence has spread both in the U.S. and internationally.  Ilya has shot luxury estates in France, Spain, Switzerland, Costa Rica, Miami, Chicago, the Seattle area, plus many other locations in the States and the world.  After checking out his work, my next question was, “How much does this type of quality photography cost for shooting a luxury home or estate?”  Well, I discovered that he has VERY competitive rates that are negotiated flat-rate prices for any project.  He is even willing to offer long-term budgeted photo-shoot contracts.  His flat-rate policy is greatly appreciated within our industry because it is THE rate no matter how much time it takes to complete the project.  Again, I don’t think you will find a better value for your marketing dollar if you decide on Ilya’s photo services.

 In further discussions with the staff at Luxury Real Estate their consensus was that Ilya consistently produces quality work and can make a home or an estate look amazing.  They said he has the ability to capture on digital film the best aspects of the luxury property.  As promised, I am always on the look out for the best professional services I can find, whether it is a photographer or a painter.  It takes a “village” to sell and buy a home - from the preparation of the marketing program to the signing of the closing documents, hiring a professional real estate company is critical.  Until next time….fair winds!

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No matter what you may think, home pricing will change because of the length of one’s commute with today’s oil prices - $4+ a gallon for the first time in history!  There is an OIL CRISIS!

 I am a non-stop student as to what is happening within the local and global economies. I am reading or I am on the internet everyday regarding world wide economic issues.  (I do have a booboo on my head from a sailing accident.) They impact all aspects of real estate - from the Golden Gate to the Caribbean. What happens in London DOES effect what happens in the East Bay Real Estate market.  One of the economists that I read each week is Bob Doll from BlackRock.  They are a premier provider of global investment advisory services. Bob writes a weekly perspective as to his take on current economic events.  Here are some of his thoughts last week that focus on the impact of oil prices.  Some of you will ignore this article because of the word “economist” next to Mr. Doll’s name, but it does have some good stuff in it.

 Bob Doll - BlackRock: ( Mr. Doll is also the Global Chief Executive Officer For Equities, and was the President and Chief Investment Officer of Merrill Lynch Investment Managers.  BlackRock has $1.36 trillion in assets under management as of 3/30/08.)

The surge in oil prices comes at a bad time for the U.S. and world economies.  Consumer spending is already stretched, the housing market remains weak nationally, and the employment picture continues to soften.  High oil prices will no doubt detract from overall economic growth, but we would also note that aggressive monetary and fiscal stimuli should provide some offset.  Our overall forecast for the economy calls for continued weak, but positive growth.  The labor market remains under pressure, but unemployment claims have not increased as much as they typically would prior to a recession, and remain consistent with modestly positive economic growth levels.

To us, the critical oil-related issue is whether higher prices will trigger other inflationary problems, chiefly, accelerating wage growth.  To date, there has been no evidence of that, which is one of the reasons we maintain our belief that inflation will behave itself.  Headline inflation ( which includes energy and food prices ) continues to be boosted by surging commodity prices, yet core consumer inflation ( which excludes energy and food prices ) remains tame and labor costs have been easing.  Looking ahead, we expect that the weak economy could cause inflation pressures to moderate and that headline numbers could come back down to core levels.  The long-term case for higher oil prices is still intact.  Rising demand in China and other developing markets such as India, coupled with shrinking global supply, means that the ear of cheap oil is, unfortunately, over.  We do, however, continue to believe that oil is due for a near - term correction or consolidation.

Putting this all together, we believe that energy prices will correct at some point, that the the U.S. economy will slowly heat over the next 12 months and that inflation will eventually drift lower.  Ironically, a muddling economy is probably the best environment for stocks at present.  Slow growth will prevent inflation from becoming a problem, while also keeping the economy out of deflationary territory.  Markets are benefiting from some other tailwinds as well.  Earnings estimates, continue to fall for financial companies, but non-financial earnings remain sound.  Valuations remain attractive, and there is still a great deal of cash on the side lines that should eventually move back into the world markets.  Our view remains that the S&P 500 low of 1,270 (touched a couple of months ago) marked the bottom for the current cycle, but we also believe tha the S&P hit a temporary ceiling of 1,425 before last week (roughly corresponding to a Dow Jones level of 13,000).  At some point, we believe the positive factors we described will allow markets to break through these levels, but predicting exactly when that will happen is, of course, an impossibility.

After a minute or two of reading Mr. Doll’s economic thoughts, remember that the East Bay real estate markets are STRONG, and interest rates are GREAT!  We may be seeing higher housing prices closer to employment centers like Bishop Ranch and Hacienda Business Park.  Let me know your comments on the experience you are having with current economic conditions where you live.  Until next time.

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Jim Walberg reminds us that hunger doesn’t take a Summer vacation!

The Summer months are the most critical time for food needs in the Bay Area.  Click on Summer Food Drive TODAY, and go shopping for those less fortunate than you.  With kids about to get out of school for the Summer, there will be thousands of them who will not have a meal because of not being in school.  The Food Bank is the one at the front lines of providing these meals to our needy kids.

According to the Nation wide report on hunger and food insecurity from The Center on Hunger and Poverty entitled, “Hunger and Food Insecurity in the Fifty States: 1998-2000.” California has grown to be the 5th largest economy in the world and yet, in spite of our amazing agricultural abundance, over a million people are hungry and 5 million live in fear of hunger.  In fact, California ranks as the 15th worst state for food insecurity with hunger by the US Department of Agriculture. California is actually above the national average in percentage of households living under these conditions.

About half of food stamp eligible people in California DO NOT receive food stamps. In fact, in the last five years the number of food stamp participants dropped 40% from over 3 million to less than 2 million.  Three million children in California are eligible to receive free or reduced priced school meals, and though the National School Lunch Program feeds many of them, 70% of these children do not receive school breakfast. About 2 million children receive free or reduced price school lunches but during the Summer,  less than half received lunch.

FACT: In Contra Costa and Solano counties more and more retired or disabled people on fixed incomes are being forced to choose between food, rent, medical care, or prescription drugs.

FACT: 33 percent of the people receiving emergency food in Contra Costa and Solano counties are children and 21.4 percent are over 50 years old.

FACT: While the Federal Poverty Level is $20,650 for a family of four, a startling 65.9 percent have incomes under $15,000, while 73.1 percent of the clients of emergency food programs have an income less than 130% of poverty.

FACT: 78.5 percent of families who use emergency food programs in Contra Costa and Solano counties report that the food they bought just didn’t last and 41 percent of adults reported they did not eat for a whole day because there wasn’t enough money to buy food.

FACT: 26.4 percent of residents using emergency food services in Contra Costa and Solano counties are homeless, or in shelters or transitional housing.

Today is the day to make a difference in the lives of those less fortunate in the Bay Area.  Again, all you have to do is click on Summer Food Drive.  No excuses,  just do it.  Thanks for your kind assistance during this time of great need.  Until next time…

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