2010 East Bay Real Estate Update: Smart Sellers Are On The Market NOW!

If you are a Buyer have you noticed that there are not many houses currently on the market in the East Bay?  Inventory is at one of it’s lowest levels in the last twelve months.  And, those houses that are on the market are not that spectacular.  What typically happens in the yearly real estate cycles is that January has one of the lowest months of inventory, AND there are many Buyers who want to buy homes.  In addition, there are several other factors that are highly motivating Buyers – buyer tax incentives until April 30th, and the expectation of mortgage interest rates rising all the way through 2010.  The Buyers are absolutely correct regarding those buying factors!  SO…if I was a Seller,  knowing what I know about real estate trends and the 2010 market,  I would get my home ready for sale right NOW! The best prepared homes that are in turn key condition, and are priced at current market rates will get the highest prices that will be achieved in 2010!

An additional factor for home Buyers are the changes that will be announced tomorrow.  At some point the Buyers are going to slow down their thirst from cheap homes because it is getting more difficult to qualify for loans.  FHA home loans have created new ways to create revenue to the government agency.  Here are the latest changes for Buyers wanting an FHA home loan;

  • The 3.5% down payment is still in effect.
  • Mortgage insurance costs are increasing from 1.75% to 2.25%.
  • Credit scores – FICO, will be at a minimum of 580.
  • Seller concessions will be reduced from 6% to 3%.
  • FHA will report lender performance ranking to assist Buyers in their selection of loans.

In addition, Sellers will be feeling the effects of the increase in Short Sales and bank foreclosures in the $1 million+ price range for 12 months or more.  The trend of $1 million+ slice of the market is upward and is projected to continue.  This will dramatically influence the appraisers who must sign their names to their value report to banks as to what a home is actually worth.

SO…if you are a Seller, get your home on the market as fast as you can.  As the year unfolds, I, Jim Walberg, predicts that the highest prices for closed escrows in the East Bay will be April and May.  That means that those closed escrows have to be opened in late February, March and early April.

About Jim Walberg

“Connecting extraordinary properties with extraordinary lives!”
+1 888.415.8326

Jim Walberg has been a business owner and Realtor in the San Francisco Bay Area since 1972. His local knowledge and global reach insures the extraordinary results our clients experience. He is proud to connect our San Francisco Bay Area clientele with our international real estate network which is unequaled in professionalism and integrity. His global network of the world's most respected real estate firms ensures that your property will be properly represented to the most discerning clientele. Our daily task is to carefully plan and perfectly execute the local, national and global exposure our available properties need and deserve.

Walberg's results speak for themselves. Since 2005 we have been contacted by customers from 62 countries who are either seeking properties in the San Francisco Bay Area or who need assistance with their global real estate searches. His list of clients include; corporate executives, professional athletes, real estate developers and your next door neighbor. He is standing ready to serve any property needs within the San Francisco Bay Area, and those of our global network.

Comments

  1. Hi Jim,

    Thanks for always telling it like it is.

    Jonas

Trackbacks

  1. [...] of you know that the first time and second time homebuyer tax credit that the Feds have in place ends next month, April 30th!   If you are thinking of buying a home in 2010 that is $800,000 or below,  the time to act is [...]

  2. [...] “crowd” of similar homes currently on the market. Remember in my recent posting that Smart Sellers are on the market NOW!,  well, time is running out for Bay Area Buyers to continue getting the best buys.  Interest [...]

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