Jim Walberg

East Bay Real Estate: Some Housing Recovery Solutions!

If I was in charge of making the decisions as to how our Bay Area housing industry could speed up its recovery it would be much different than what the Feds and the Banks are currently doing.  The challenge is some Bay Area communities are recovering much faster than others – Silicon Valley being one of them.  The East County of the Bay Area will take five or more years to work out of homes that are underwater.

Remember, all markets are local. It is amazing that we have the lowest home prices in most of our communities since the early 2000’s,  the lowest mortgage rates in 40+ years – under 4%, and the lowest January inventory of homes for sale in my memory!  AND, Buyers are still sitting on the sidelines not taking advantage of this perfect storm.  What a great time to buy instead of rent!  However, some buyers still believe prices will come down further in 2012.  Some are not able to secure a mortgage.  And, some believe that it makes more sense to rent than to buy for the next several years. Read more

Jim Walberg

East Bay Real Estate: 2012 Real Estate Predictions

My predictions for 2012 are now ready for your review.  And we will review how my predictions for 2011 turned out now that we are able to be ‘Monday morning quarterbacks’.   Last year’s predictions were;  #1 – Jobs = Unemployment;   #2 – Bank Foreclosure Delays;  #3 – Our Federal Government;  #4 – Interest Rates and Mortgage Loan Criteria.  So, how did I do on my 2011 predictions?

2011 Results: Unemployment has taken a turn for the better.   We are not out of the woods yet, however the unemployment rate is going in the correct direction – down;  Bank foreclosures were delayed last year, however not as much as predicted.  Short Sales increased in 2011 and Bank Owned REO sales decreased;  The Fed’s continued as a dysfunctional aspect of our economy in 2011, both from a legislative standpoint and from just not having many options to stimulate the economy;  We were completely wrong on the interest rate prediction of being in the 6% by the end of the year.  Mortgage interest rates ended the year even lower than when the year started – 4%! Read more

Jim Walberg

The Tobin Clark Estate: David Adler – Architect’s Crown Jewel of San Francisco Estates

The Tobin Clark Estate was considered one of architect David Adler’s finest works during the height of his stunning career.  He was designing homes during what is still called the era of “the great American house”, between 1911 to 1949.   In the 1920s, Mrs. Celia Tobin Clark, an heiress to the Hibernia Bank fortune, commissioned David Adler to create a Cotswold Tudor Mansion on a secluded hilltop of some four hundred acres just south of San Francisco.  Her husband was the owner of the Montana Mining Company. The Tudor – Costwold influence is present in the exterior, but the interior is an amazing array of styles.  And, it somehow all works.  I am sure he had a unforgettable time designing the home in the exclusive San Francisco Bay Area community of Hillsborough. At one time, the 35,000-square-foot home rested upon 400 acres.  It now is situated on the remaining secluded six acres of the original estate. Read more

Jim Walberg

Tobin Clark Estate: Historic Tobin Clark Estate Host to Presidents and World Leaders

For more than sixty years, the Tobin Clark Estate,  Hillsborough Mansion with the unassuming name “House-on-Hill” has been cited as one of the most spectacular private residences ever created in the San Francisco Bay Area in its fine antique English style.  And, it has been the host to every U.S. president since Richard Nixon.  Some of the world leaders that have stayed at the Tobin Clark Estate since 1990 are, Presidents Richard Nixon, Gerald Ford, Ronald Reagan, and George H.W. Bush, as well as King Hussein and former British Prime Minister Margaret Thatcher. Read more

Jim Walberg

East Bay Real Estate: Jobs Update – Underwater = Not Moving!

Jobs, Jobs, Jobs continue to replace Location, Location, Location in the world of East Bay real estate.  However, with the job market finally improving in the Bay Area and looking very good for 2012 the challenge is for people whose home is underwater and are unable to move to where the jobs are booming.   We are fortunate in the Bay Area that our unemployment is almost 3% lower than our State – 9.6%.  And, our percentage of homes underwater in the Bay Area is only 12%, compared to San Diego that has 28% of their homes underwater.  Still this issue is making it harder for Bay Area homeowners to relocate for work.  The Wharton School study has determined that about 30% of homeowners who are underwater as less likely to move compared to those who are renting or have equity in their home.  FEAR is still a big factor today. Read more

Jim Walberg

The Tobin Clark Estate: A Once In A Lifetime Opportunity For $29 Million

The Tobin Clark Estate: Maybe once in a lifetime one is able to acquire a true architectural masterpiece.  That opportunity has just arrived in Hillsborough, California. For more than sixty years, the Hillsborough Mansion with the unassuming name “House-on-Hill” has been cited as one of the most spectacular private residences ever created in its fine antique English style.  In the 1920s, Celia Tobin Clark, an heiress to the Hibernia Bank fortune, commissioned architect David Adler to create a Cotswold Tudor Mansion on a secluded hilltop of some 400 acres just south of San Francisco.  Full-grown trees were transplanted from as far away as the Monterey Peninsula, rose terraces and formal courtyards were laid out amid the oak groves and lawns, and multiple-trunk olive trees were pruned to dip low over matching reflecting pools set in a stone terrace. Completely by hand, an architectural treasure was built. Read more

Jim Walberg

East Bay Real Estate: Rent vs. Buy? BUY NOW!

Never before the last 15 years has it been less expensive to buy a home versus renting a home!  There are two reasons;  1) Rents have risen so dramatically the past two years because of so many people needing to rent a home because they either can’t afford to purchase a home, or they have lost their home. Landlords have been making a killing!  2) Home prices in the East Bay have been adjusted backwards to almost 2002 pricing.  AND, mortgage interest rates are at a 40 year low – around 4%!

To give you an idea of why today’s interest rates are such a key factor in today’s home buying equation, notice how much of a mortgage you are able to get today compared to 1991 for a $1,700 monthly payment.  With 1991 mortgage interest rates you could secure a $200,000 home loan.  With today’s mortgage interest rates you are able to secure a home loan for $350,000!  Do you now see the home buying power of a 4% interest rate in 2011?  And, it is expected we will have low mortgage rates for up to two more years. Read more

Jim Walberg

East Bay Real Estate: Paying It Forward During The Holidays!

The phrase we are focusing on during the Christmas and Holiday Season is, “To whom much is given, much is required!”  I believe that all of us want to give back to the needs of our local communities.  What we have noticed is that most people don’t know where to start, so it gets complicated, and then nothing happens.  Well, you are in luck, I am going to provide you two easy opportunities to make a difference in the lives of people in the East that are less fortunate than any of us.

CONTRA COSTA FOOD BANK: Because of the economic mess the past four years, there are many more families that are on the edge collapse.  The Food Bank has good from serving 70,000 meals a month to 120,000 a month!  Their resources are stretched to the maximum, sometimes going day to day.  Amazingly, the most important food they distribute to families is Peanut Butter – the #1 source of protein for many families!  What they most need are checks.  Because of their relationship with the grocery store industry, they are able to purchase $6.00 of food for every $1.00 that is donated.  WOW!  What an impact a $50 donation can make in the lives of those who need food. Read more

Jim Walberg

East Bay Real Estate: National Survey Results – FEAR Still Influencing Real Estate!

Fear about home values ranks higher than fear of natural disasters and fire.  As you have noticed fear is even determining the daily results of the stock markets.  In fact, there has not been a time in the past 50 years where the fear-factor has been so high in our country.  Koski Research completed a national survey of 1000+ homeowners with not so surprising results.  Almost half of the homeowners surveyed no longer view owning a home as the American Dream.  The conclusion is that declining home values over the past four years has undermined the confidence of homeowners.   And, don’t forget, FEAR = False Evidence Appearing Real.

NOTE: As I outline more of the survey results it is important to remember that ALL real estate is local. The San Francisco Bay Area is made up of many micro-markets, each of them are performing differently than the other.  So, remember, a National homeowners survey may have no connection to the real estate results happening in your neighborhood.  Our experience is the there has never been a better time to buy a home in the Bay Area.  Interest rates are at record lows and home prices are bargains compared to five years ago. Read more

Jim Walberg

East Bay Real Estate: Home Value Estimate Websites Creating False Expectations!

Have you ever checked out your home’s estimated value on Zillow.com, Trulia.com,  Homes.com and many others?  Have you been shocked by what one of these sites estimates as to your home’s current value?  My guess is your answer is YES.  And, millions of other visitors are having the same reaction.  The challenge you are having as a home seller is that potential Buyers for your home are also using these websites to determine what to offer as a purchase price for your home, and most of the time the estimated values are wrong.

And, no matter if these estimated home values are correct or not, over 100 million monthly visitors are going to these sites to search for home values.  None of the 100 million visitors may notice the posted disclaimers that each of these websites post which state,  “Estimated home values are just that—an estimate. We urge home-price hunters to consult appraisers or real estate agents to refine the actual results.” The fact is that these disclaimers are not easy to find, AND potential home buyers are using them for their purchase negotiations. Read more

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