Berkeley/Oakland Real Estate Market Explodes

About two months ago, I wrote a blog saying the Berkeley/Oakland real estate market had started off with a bang.  Well, the bang has become an explosion!  Nearly everything coming on the market is now getting multiple offers … and going over asking price.  Some points in fact: Properties in Oakland that have sold in the last month are selling on average for 2.4% over asking.  In Berkeley, it’s crazy.  Properties in Berkeley are selling on average for 12% over asking!

Not only that, but the average sale price for this last month is way above what we had in April: In Oakland, the average sale price for the last month was $462,404 versus April’s $312,710.  In Berkeley, the average sale price is now $749,025 versus $635,066.  (This is a relatively small time period, yet the direction is definitely up.)

The reason is twofold: Not that many properties have come on the market this spring.  And tons of Buyers who have been waiting for years have now jumped off the sidelines and are ready to buy.  So there are fewer houses than there are Buyers.  This is likely due to the even lower interest rates, which are now around 3.8%!

So if you’re a Buyer, what should you do?  You may want to follow the advice of Today’s Show real estate guru Barbara Corcoran: “Get your hands on a house NOW before it runs away from you.”   Rather than wait for prices to die down, she says, “Adjust your expectations about what you can buy.  Otherwise, you’ll just be chasing prices as they go up.  And it’s going to get worse before it gets better.”

So put your head down and get ready to play the bid game.  You’re not going to avoid it.  And as for Sellers.  After 5 years, NOW IS YOUR TIME. 

For a consultation about how to be competitive … and win… in this market, give me a call: 510-847-2409.

FEATURED BERKELEY/OAKLAND HOME OF THE WEEK

For more information on this and other Berkeley/Oakland homes for sale, please click here.

Barbara Reynolds, your East Bay real estate specialist

Originally posted on my Berkeley/Oakland real estate blog here: http://activerain.com/blogsview/3257461/berkeley-oakland-real-estate-market-explodes.

The Oakland Sewer Mess for Home Sellers

Nothing is easy in Oakland.  And the recently enacted Oakland Sewer Ordinance is no exception.  Actually, it is not Oakland’s doing.  It stems from an EPA suit where each city is required to develop a plan for repairing and operating all sewer pipes in their city.

The Oakland Sewer Ordinance, which is administered by East Bay MUD, went into effect January 17, 2012.  It requires that any person selling an Oakland property or conducting a remodeling project of over $100,000 enacted after January 17 must obtain a “Compliance Certificate” from EBMUD.  (Presently, this is a cumbersome process best left to the plumber doing the work.)

Since most homes in Oakland have old clay sewer lines, that means the sewer line (also called the sewer lateral) must be replaced.  Similar ordinances have already gone into effect in Berkeley, Alameda, Albany, El Cerrito and Piedmont.  Unfortunately, in Oakland’s case, it requires the sewer be replaced to the middle of the street, which costs more than the other communities.  Most sewer replacements in Oakland are running upwards of $5000.

In the case of selling your Oakland house, it usually means either replacing the sewer … or getting the Buyer to agree to do it within six months and ponying up a $4500 deposit. That’s a big chunk of change for most Oakland Buyers to handle on top of a downpayment.  So it’s likely most Sellers will be doing their sewers when they put the house on the East Bay market.

Despite that, the silver lining in all of this is we will have cleaner ground water – due to less leaching of sewer water into the soil.  So remember that when you’re plunking down your $5000.

For more information on Oakland sewer compliance or home sales in your Oakland neighborhood, give me a call at 510-847-2409 or visit my website at www.BarbaraReynolds.com.

Barbara Reynolds, your East Bay real estate specialist

Originally posted on my Berkeley-Oakland real estate blog here: http://31642ee.activerain.com/post/3124632/the-oakland-sewer-mess-for-home-sellers.

Multiple Offers Abound in Berkeley/Oakland Real Estate. Happy Spring!

The 2012 home buying season in Berkeley/Oakland has started off with a bang… as in on your marks, get set, GO!

There are more Buyers ready to buy.  And more Buyers offering on the same house … as in “Multiple Offers.”  While a lot of real estate agents are bemoaning the lack of “inventory” or homes for sale, there actually have been more homes sold or go into contract in both Berkeley and Oakland since the first of this year – compared to last year.

Fortunately for Sellers, more active Buyers translates into a turnaround in prices compared to last year.  A quick look at Berkeley home sale stats, for instance, shows the average sale price in Berkeley to be $635,066, or 4.5% above the asking price.  Compare this to last year – when the sold price was $620,988, or slightly under the asking price.

Average Oakland sale prices are up slightly over the same period last year ($312,710 versus $305,169). Sale prices are just slightly below (less than 1%) the asking prices.  If anything, this shows a stabilizing housing market for Oakland.

So hallelujah!  The tide has turned.  Spring has indeed begun.

The photo above is of a listing of mine in Berkeley that just recently got five offers and went a fair amount over asking!

To check out my other listings or homes for sale, go to www.BarbaraReynolds.com.

Barbara Reynolds, your East Bay real estate specialist

Originally posted on my East Bay real estate blog here: http://31642ee.activerain.com/post/3069585/multiple-offers-abound-in-berkeley-oakland-real-estate-happy-spring-.

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-.