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.

The Glass is Half Full

Are we there yet?  Amid all the dim outlooks for Berkeley-Oakland real estate and the economy in recent days, there’s definitely a positive way to look at it … something on the order of the old saying, “The darkest hour is just before dawn.”

According to the highly respected Case-Schiller index of real estate prices, prices are now at 2002 levels – even in the East Bay.  Obviously, with mortgage interest rates at their lowest point in decades, that is a great buying opportunity.  If, that is, you believe the slide in real estate prices is almost over.

According to noted Bay Area real estate economist, Carol Rodini, the worst is likely over in Bay Area real estate for several reasons.

1. There is strong job growth in Northern California propelled by the Internet, which Rodini calls the most important invention of our time.  The most stressed Berkeley-Oakland real estate market is the mid-market ($600,000 — $1.2 million) because loans are hard to get.  The new mortgage loan limits for jumbo conforming loans will be reduced to $625,000, effective in October, which will affect that market even more.  Below that, the real estate market is quite active.  Above that, home buyers typically have enough cash and assets to overcome the loan situation.

2. Rents in the Bay Area are going up significantly, which will make owning a home more affordable, relatively speaking.

3. The immediate Bay Area (SF, near East Bay, Peninsula and Marin) has a finite supply of housing.  As demand increases, so will the prices, since the supply can’t.  All that said, Rodini doesn’t expect large leaps in real estate prices in the next five years.  She says real estate prices may go up 3% per year.  But, as she points out, “that’s better than the 1% you get from the bank.”

If you’re ready to make a move, or want a market update on your home, just give me a call at 510-847-2409.  It’s always great to hear from you!

Barbara Reynolds, your East Bay real estate specialist

Originally posted on my blog here: http://31642ee.activerain.com/post/2485762/the-glass-is-half-full.