
The Lyons Tri Valley Real Estate Report
Summer 2012
The Real Estate recovery of 2012
Our local real estate recovery started in the Spring of 2011 and it is continuing, strongly, through 2012. Fueled by record low interest rates, a recovering local economy, and years of pent up buyer demand, local houses are selling fast and home prices are on the rise!
First time home buyers are buying homes as soon as they hit the market, using record low interest rates and low cost FHA loans.
Investors are buying also– seeking a better rate of return on investment money than they can get in the current stock market.
In all of our East Bay cities there is a lack of available home inventory for 2012. In short, there are very few homes for buyers to look at, or purchase.
Check our website for information on short sales. http://www.tomlyons.com/The- Short-Sale-Guru-2011-2012
Who’s buying houses?
Local Real Estate in Recovery
Throughout the East Bay Area the real estate market is recovering. Home prices, depressed since 2006 are starting to go up. Available inventory is almost non-existent. Buyer demand is strong due to attractive home financing options and pent up demand.
How home prices go up and down.
Prices on houses (as well as prices on just about everything) go up and down based on the economic principles of supply and demand. High supply coupled with low demand means lower prices; high demand coupled with low supply means an increase in prices. In real estate practice a seller’s market is defined as less than 3 months of available inventory. Illustrating with numbers means; if you have an available supply of 200 homes at any given time in a particular city and if 100 homes per month go into contract and sell, then you have a 2 months supply of homes – prices go up. If you have an available supply of 500 homes and 100 sell in a given month, then you have a 5 months supply of homes and prices go down.
During the bad years from 2007-2011 most of our East Bay cities had an available supply anywhere from 12- 18 months – prices went down (as we all know) big time.
However, inventory statistics have changed drastically in 2012.
Record low interest rates now make it more attractive, financially, to own a home than to rent one. Add the income tax benefits of home ownership to that as well.
The truth about real estate investing for 2012.
It’s no secret that the stock market has been going sideways for the past couple of years; which means that not many are making money in stock investing.
This is probably the main reason why investors are out there purchasing investment real estate. In many instances a real estate investor can make an ROI (return on investment) of 7-9% on real estate investing in single family homes and condos. Plus, with home prices on the rise again, house appreciation over the coming years offers investors more peace of mind .... And profits.
For more info please check out our real estate investment pages on our website.
http://www .tomlyons.com/Investor-Guide-to-Real- Estate
If you need to sell your home, consider giving me a call. We will list and sell your home for a 1.5% listing fee!
These stats show a staggering lack of house inventory with most of our East Bay cities having less than 1⁄2 month supply available. There is strong buyer demand; plus a lack of available inventory to purchase. There are virtually no homes for buyers to look at and purchase – multiple offer situations on just about every house – house prices are going up big time in 2012.
Bear in mind that the news media reports on home sales nearly 90 days after escrow closes; by the end of this year all of our local news reporting agencies will be reporting how well home prices fared in 2012.
Many are already reporting that homes prices are going up in our entire East Bay area. The laws of real estate prices explain in detail how house prices work-
http://www.tomlyons.com/The-laws-of-real-estate- prices
First Time Homebuyer Information
Record low interest rates now make homeownership very affordable. In most cases it now makes more sense for families to own a home, rather than to rent one.
Here is the link to do your own analysis on this.
http://www .tomlyons.com/Rent- versus-own-analysis-2011-2012
Home ownership still offers wonderful income tax breaks, at the federal and state level. Summarizing, here in California, at a purchase price of approximately $350.000 a family would save approximately $5,000.00 each year from federal and state income taxes. Here is that info.
http://www .tomlyons.com/Tax- breaks-for-first-time-home-buyers
The lack of available inventory hinders the home buying process. If you plan to buy prepare yourself for a couple of months of looking before you find your dream home. The following link helps those of you who plan to buy their first home.
http://www .tomlyons.com/First- Time-Buyer-for-2012
For more information please contact our office.
Tom Lyons
Real estate expertise
20+ years of local experience 925-216-1105
realestate@tomlyons.com
www .tomlyons.com
http://www.pleasantonweekly.com/news/show _story.php?id=9488&e=y
Rebounding prices on local real estate sales!
Listed just above is one of the many recent news articles on the rebounding prices on local real estate sales.
Short sales still around for a while.
Though the numbers of short sale transactions are on the decline, many sellers still need to short sale their homes. Since home prices, during “The Great Recession” rolled back to 2002-2003 levels, anyone purchasing a home since then, even if they put a 20% down payment on it, are likely to be upside down on the mortgage. If you are considering a short sale, please go to http://www.tomlyons.com/Short-sales-for- sellers Or to ... http://www.tomlyons.com/How-to-qualify- for-a-HAFA-short-sale-2012
Tom Lyons
Real Estate Expertise 925-216-1105 realestate@tomlyons.com
List and sell your home for a 1.5% listing fee!
Buyers can still get great deals on short sale homes!
The window of opportunity to purchase real estate at below market level prices is closing rapidly, meaning that since home prices are rising, the good real estate deals out there are getting tougher to find.
Short sales still offer a buyer to purchase local real estate at good prices.
For more information please go to this link on our website.
http://www .tomlyons.com/Why-owning-your-own- home-is-so-important
If you need to sell your home we will list and sell it for a 1.5% listing fee.
The local MLS board – Bay East board of realtors also publishes statistics about the improving housing market in our area. Here is the link.
http://www .bayeast.org/buysell_housingstats.html
The Lyons Tri Valley Real Estate Report goes out to approximately 1100 people. To opt out from receiving this report simply drop me a line at realestate@tomlyons.com
Thank you for taking the time to read!
Serving the real estate needs of important clients, such as yourself, since 1991.
Email Tom at realestate@tomlyons.com

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