Berkeley Hills and Thousand Oaks Home Prices – Yin and Yang

Interestingly, although home prices in the Thousand Oaks neighborhood of Berkeley are typically above those of the Berkeley Hills, in the last six months, they have reversed themselves a bit.  Enough so that the average sale price in Thousand Oaks is a bit below that of Berkeley Hills.  (Basically Thousand Oaks is the 94707 zip code, Berkeley Hills is the 94708 zip code.)

Specifically, the average home price for Thousand Oaks over the last six months was $762,232 (when you take out a $2.5M sale, which was an aberration).  This compares to $795,282 for the same time last year, or a small drop of about 4% for average home prices.  Home prices for the Berkeley Hills averaged $786,808 for the last six months, versus $761,554 the same time last year, or a slight bump up of 3.3%.  These Berkeley home price stats may also be due to the fact that the number of sales in Thousand Oaks were also down for the last six months, compared to a year ago.  Berkeley Hills sales were even.

Looking behind these numbers, rather than fewer Buyers, it actually means fewer Sellers selling… since almost everything listed in Thousand Oaks sells.  It’s true, Sellers who have higher priced homes have been holding out in general, waiting and hoping that prices will move higher (which may be a little like waiting for Godot). 

Nevertheless, this year, the Berkeley real estate market feels like it’s off to a healthy start.  Buyers right now seem to be out in droves with very few homes to view.  A case in point: A home I listed at 1061 Cragmont – a fixer — has over 50 requests for disclosure packets as we speak.  (Check it out at www.BarbaraReynolds.com.)

So if you’d like to take advantage of the pre-spring rush market, give me a call at 510-847-2409 and we can develop a strategy. 

Barbara Reynolds, your East Bay real estate specialist  

Originally posted on my Berkeley-Oakland Real Estate blog here: http://activerain.com/blogsview/2875800/berkeley-hills-and-thousand-oaks-home-prices-yin-and-yang.

East Bay Real Estate. Signs of an Early Spring.

Last year, real estate prices in most Berkeley/Oakland neighborhoods dipped again by about 5%.  This is very likely the result of continued high unemployment in the East Bay, an increasing number of short sales and overall cautiousness on the part of Buyers.  This year, however, there are signs of an Early Spring in real estate in the East Bay(as in better times ahead.)

More Buyers seem to be coming out of hibernation – perhaps with the fear that the deflated prices won’t last forever and extra low interest rates are now hovering around 4%.  Stagers, painters and inspectors are getting booked weeks in advance – a sign more people are buying and getting ready to list. 

According to a recent article in the SF Chronicle, this is backed up by economists of Bay Area California who expect “moderate growth” in the local economy.  Not that we’re going to come roaring back – except in high tech – which is booming.  Many expect the technology boom to spread to other areas of the economy.  And, in fact, UCLA Anderson forecasts call for East Bay job growth of 2.2% this year (even higher than San Francisco’s 1.4%). 

As for real estate prices, experts expect them to remain relatively flat – not down – as foreclosures and short sales decrease.  My own view is that real estate prices in the East Bay will start to increase since all economic signs are pointing to increased demand.   Not that things will all of a sudden boom, but that we will witness a gradual and early opening of “spring growth.” 

If you’d like to take advantage of the early spring in East Bay real estate, just give me a call on my cell phone: 510-847-2409.

Barbara Reynolds, your East Bay real estate specialist

Originally posted on my East Bay real estate blog here: http://berkeley-oaklandrealestate.com/post/2778996/east-bay-real-estate-signs-of-an-early-spring-.

Twinkling Lights on the Real Estate Horizon

Financial guru Peter Lynch of Fidelity Magellan fame used to say that the way to pick a winning stock was to walk around your neighborhood stores and see what was selling.  The same could be said for Berkeley/Oakland real estate.  Amid the gloom of hard times and increasing foreclosures, there are some bright spots on the East Bay real estate horizon…signs of optimism among the “folks.”

There’s a certain energy on College Avenue outside my office that wasn’t there last year.  Home buyers seem more ready to “buy” than to just get a “deal.”  More houses in our area are getting multiple offers.

And lo and behold, recent stats are starting to signal a turn themselves.  As Jim Cramer of “Mad Money” fame pointed out the other day on the Today Show, auto sales are up.  The stock market is up.  And just recently, starts of apartment complex building were up.  Even the number of homes selling was up 4% over last year. 

The best news is… housing puts people back to work.  And that should be enough to bring some light in all our lives.

Happy Holidays.  Happy New Year, one and all.

Barbara Reynolds, your East Bay real estate specialist

Originally posted on my Berkeley/Oakland real estate blog here: http://activerain.com/blogsview/2666344/twinkling-lights-on-the-real-estate-horizon.

The Real Estate Market Will Improve in 2012…Gradually

“The real estate market will improve in 2012…gradually.”  So says Lawrence Yun, Chief Economist of the National Association of REALTORS®, at a recent conference.

According to Yun, tight mortgage credit conditions and consumer confidence have been holding us back.  Nevertheless, he said, there is a pent-up demand for housing that can’t go unsatisfied forever.  The gradual increase in real estate sales will track the gradual increase in GDP (Gross Domestic Product), which is expected to come in at 1.8% this year and grow to 2.2% next year.

Interest rates are expected to rise slightly, according to Yun.  From their present all time lows of 4%, they will likely reach 4.5% by mid-2012.

Ok, real estate is slowly starting to turn the corner.  We won’t be having a blow out party, but we’re making the turn.  We see stabilizing evidence in the Berkeley/Oakland market, which is indicative of a market bottom.  For instance, since June of this year, the average sold price in Berkeley was $680,853 (or $407 per square foot).  That compares to last year’s $679,531 (or $430 per square foot).  The difference in price per square foot is more likely a difference in size of houses being sold.  In Oakland, the average price since June of this year was $343,606, with a 28% increase in number of sales.  The average price per square foot was $212.  That’s higher than last year’s $363,054 average price and $196 per square foot. 

The moral of the story given is that house prices likely won’t be declining, but interest rates…and the cost of buying a house…will be going up.  If you are thinking about buying a home or trading up and you can get a mortgage – this is the closest thing you’ll get to a “buy” signal.

If you’d like to explore your possibilities for buying a home in Berkeley/Oakland, just call me on my cell phone:  510-847-2409.

Barbara Reynolds, your East Bay real estate specialist

Originally posted on my Barbara Reynolds, Buyer’s Agent blog here: http://activerain.com/blogsview/2615367/the-real-estate-market-will-improve-in-2012-gradually.

The Berkeley Counter Culture is Alive and Well … in Real Estate

The recent news from the National Association of REALTORS® sounded a pessimistic note amid our struggling real estate recovery.  Pending home sales in the U.S. fell 4.6% last month from August levels.  Of course, Berkeley being Berkeley, we are not following national traditions – even in real estate.  In fact, in the last quarter (ended September 30), half of all sales in Berkeley had multiple offers and sold over asking!

Secondly, in representing a Buyer recently who was trying to buy a house in Elmwood/Claremont, I was in a bidding war with eight others.  The house ultimately sold $150,000 above asking.  While prices are not back to the high times of 2007, it does portend increasing sale prices in the Elmwood/Claremont neighborhood of Berkeley.  In fact, upon further examination, price per square foot in the Elmwood/Claremont neighborhood is up over 7% from last year. 

This is one of the first strong healthy signs I’ve seen in the last four years in these parts.  You might consider this a “leading indicator” of sorts for Berkeley … and the East Bay real estate in general.  For, while the rest of the country still seems to be stuck in the doldrums, Berkeley seems to be marching to its own drum … and a decidedly different beat. 

If you have any questions on Elmwood/Claremont or Berkeley/Oakland real estate, just call me on my cell phone: 510-847-2409. 

Barbara Reynolds, your East Bay real estate specialist

Originally posted on my Berkeley-Oakland real estate blog here: http://31642ee.activerain.com/post/2595967/the-berkeley-counter-culture-is-alive-and-well-in-real-estate.

Short Sale Pain Relief

Take two aspirin and call me in six months.  Seriously, I remember a couple years ago, I was involved in a short sale from hell in the Oakland/Berkeley area.  It took six months and never closed.  The other agent had assured me she knew all about negotiating the short sale.  And she didn’t.  (Ultimately, I got it closed with a negotiator in two months.)  
 
Since then, I’ve adopted my own strategies with close to 100% success rate on short sales I take in the East Bay market.  (I don’t take all.)  With most short sales, I now use a negotiator on my team at no cost to the Seller.  The negotiator knows all the ins and outs and idiosyncrasies of the banks.  (Many times, it’s the way you enter the paperwork that determines if the short sale is accepted.) 

And the good news is that Short Sales seem to have become easier in the last six months.  I don’t know if it’s Sellers or banks throwing in the towel, but now most large banks are more streamlined in their process because they have so many. 

I’ve already gotten quite a few Sellers accepted by the HAFA program, which guarantees that the bank will not come after you for any deficiencies — as well as giving the Seller a $3,000 move out stipend.  (Not all loans qualify.)

So the good news for Sellers is it’s now much easier to do a Short Sale in the Oakland/Berkeley area … with fewer twists and turns.  And, even better, according to present FHA guidelines, you’ll be able to qualify for another mortgage within three years…. unlike a Foreclosure which takes a lot longer to reinstate yourself. 

The moral of the story…. if you’re facing Foreclosure, Short Sales are now easier if you use the right strategy … and the right Agent.

If you have questions on your individual situation, call me on my cell: 510-847-2409.

Barbara Reynolds, your East Bay real estate specialist

Originally posted on my Berkeley-Oakland Real Estate blog here: http://31642ee.activerain.com/post/2575550/short-sale-pain-relief.

The “Close to Coffee” Revolution in Real Estate

Time was when a prestige neighborhood in the Berkeley or Oakland hills was the destination of choice for people looking for a house.  Well, get out of your car and put on your walking shoes, because now the determining factor is becoming how “close to coffee” you are.  Or to put it another way, what’s your “Walk Score“? 
 
I was working with a young couple determined to buy their first house in Berkeley.  They have unilaterally eschewed the “Hills” as being too far away from everything.  And we are focused on homes within 10 blocks of coffee.  That would be the “flats” or bungalow neighborhoods of Berkeley, where houses and lots are smaller, neighbors … and coffee are closer.  (That translates into Walk Scores of 80’s and 90’s versus 40’s for the Berkeley Hills.)  I’ll bet Alfred Peet never knew he was starting a real estate revolution when he started the coffee revolution. 

Actually, my clients are not alone.  In fact, we bid on a house in the Elmwood area, close to coffee, shops and restaurants … and so did six others.  The home went about $150,000 over asking while similar sized houses in the Berkeley Hills, priced $300,000 less, are languishing.

It turns out being connected — not just electronically, but physically — is all important to this generation of Buyers – the Millenial’s and GEN X’s in their 20’s and 30’s.  They would rather have a more modest bungalow than an expansive home with a view … as long as they are close to coffee.  In this day and age, coffee … not the street you live on… determines how well connected you are.  And what price your house will sell for.

If you’d like to see what houses are for sale in the neighborhoods of Berkeley and Oakland, just give me a call:  510-847-2409. 

Barbara Reynolds, your East Bay real estate specialist

Originally posted on my Active Rain blog here: http://31642ee.activerain.com/post/2561774/the-close-to-coffee-revolution-in-real-estate-.

Buy a House Now, Save 12%

No kidding.  I had a reporter ask me the other day why now is a a good time to buy a house in the Bay Area.  In thinking about “real” reasons, here’s what I figured out.  In fact, you can save 12% if you do buy a house now.  Here’s how.  With interest rates at their all time rock bottom low of 4.01% (versus February of just this year when they were 5.06%), buying a house now would give you a savings of over 12% in your mortgage payment. 

Given that every financial pundit expects interest rates to go back to 5% –if not 6% — within the next year or so, that means if you do buy a Bay Area house now, you would be able to lock in a payment that’s 12% less than if you waited.  This would be similar to getting an automatic price appreciation of 12% — something unheard of in these times.  At the very least, it protects you from any downturn in prices, although most believe that Bay Area prices are already at or very close to bottom.

To walk through the numbers for your situation … or to get answers to your questions on real estate or your mortgage, just give me a call: 510-847-2409.  It’s always good to hear from you.

Barbara Reynolds, your East Bay real estate specialist

Originally posted on my Berkeley-Oakland Real Estate blog here: http://31642ee.activerain.com/post/2540642/buy-a-house-now-save-12-.

Berkeley/Oakland Real Estate Update: The “New Normal”

If you read the headlines these days, it’s hard to figure out what’s happening in real estate: ”Home Prices Plummet,” “Mortgage Rates at All Time Lows.”  That may be true, depending on where you’re coming from.  But  according to Bay Area Real Estate Economist Carol Rodoni, the worst is over for the Bay Area.   And my “woman on the street” view bears this out.  In general, there’s more activity: more buyers are out looking and more buyers are ready to buy a Berkeley/Oakland home.  People are starting to think about trading up.  There is a sort of cautious optimism, if you will.  And, interestingly enough, about 80% of my transactions this year have had multiple offers … and bids over asking.

Overall, prices are about the same as a year ago.  In Berkeley, the average sold price for the past three months is $678,917 vs. $691,633 a year ago.  This is only a 1 to 2% difference.  In Oakland, the average sold price was $381,168 vs. $354,370 a year ago…7.5% higher!  This likely reflects a changing mix of houses, since a lot of the bargain basement foreclosures of a year ago have been bought up.  All of this points to a stabilizing market, the “New Normal.”

The good news against all of this is that interest rates are even lower than they were, with a base rate now that is close to 4% for a conforming loan compared to 5% at the beginning of the year.  Buyers are starting to sense this won’t last, which is why we’re getting multiple offers.  So the moral of the story is, if you’re thinking of buying or trading up, don’t wait.  Buy now!

If you’d like to go over your options at this point … or have any questions on East Bay real estate or your mortgage, just give me a call at 510-847-2409.  It’s always good to hear from you.

Barbara Reynolds, your East Bay real estate specialist

Originally posted on my Active Rain blog here: http://31642ee.activerain.com/post/2526543/berkeley-oakland-real-estate-update-the-new-normal-.

Barbie Doll Helps Berkeley/Oakland Schools

This past Saturday marked the big day for the first annual McGuire Neighborhood Garage Sale in Berkeley and Oakland.  McGuire Real Estate provided all the signs, advertising, marker pens and supplies.  And over 40 homes opened their garages throughout Berkeley and Oakland – from Alvarado to Webster Street.  Never has it been more truly said, “One man’s junk is another man’s treasure.”

All locations had treasure hunters from all over the East Bay area scavenging through Barbie dolls, old toys, antiques, clothes and nick knacks.  Perhaps the biggest winners of all were the Berkeley and Oakland schools.  For every garage participating under the McGuire banner, McGuire Real Estate pledged a donation to the local Berkeley and Oakland schools. 

Next fall, plans are for bigger and better with hundreds of garages in Berkeley and Oakland participating.  So start putting aside all those toys, nick knacks, clothes and antiques for next September.  Just goes to show you, when it comes to supporting local schools, there is strength in numbers.  Thanks to all who participated.

For info on next year’s McGuire’s Annual Neighborhood Garage Sale, give me a call at 510-847-2409.

Barbara Reynolds, your East Bay real estate specialist

Originally published on my Active Rain blog here: http://31642ee.activerain.com/post/2516764/barbie-doll-helps-berkeley-oakland-schools.