The Lyons Tri Valley Real Estate Report |
Fall 2012 Tom Lyons – Real Estate Expertise realestate@tomlyons.com 925-216-1105 |
Our local real estate market continues to recover and grow stronger through the Summer and Fall of 2012. Home prices continue to appreciate locally, in many cases home prices are going up more than most of us realize. For details please click here.
http://ycharts.com/indicators/case_shil ler_home_price_index_san_francisco
Throughout our Tri Valley area lower price ranges are doing better than higher price ranges. Homes under $500K are currently appreciating approximately 10-15% annually, while prices on homes over $1,000,000 are remaining flat, or not appreciating at all.
The number of foreclosures to hit the market is way down in 2012. The number of short sales is down as well. Available homes for sale here locally are at record lows. To summarize, there are few homes for buyers to purchase.
Lower price ranges appreciating more quickly.
Role of The Federal Reserve Bank - 2012
On September 12, 2012 the Federal Reserve Bank announced a new round of mortgage programs designed to keep mortgage, and interest rates low, until the FED feels that the national economy is at full employment and firing on all cylinders. Quantitative easing is what it is called by the Feds. What does that mean for local real estate here in the Tri Valley Area? It means that interest rates will stay low, which means increased buyer demand for houses for the foreseeable future. This will continue to fuel our local real estate prices. It means that our local real estate environment will continue to improve through 2012 and 2013.
Tom Lyons
Real Estate Expertise 925-216-1105 realestate@tomlyons.com
List and sell your home for a 1.5% listing fee!
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
Underwater homeowners? Do you have a home that you would like to short sale? NO FEES , FOR A HOMEOWNER, WHATSOEVER, TO DO A SHORT SALE. THE BANK PAYS ALL FEES, IF APPROVED.
A great short sale blog to read:
http://activerain.com/blogs/elizabethweintraub
Banks would rather you short sale your home as banks do not want to take your home back in foreclosure. Please click here for details.
Did you know? That investors are purchasing many homes in the Tri Valley Area in 2012? Prices are low, an investors ROI (Return on Investment) is so good that it makes sense for many to invest. Click here for info: http://www.zillow.com/blog/2012-01-13/what-is- a-good-real-estate-investment/ |
Short sales still around for a while! Short sales will be around for 2013, though their numbers are declining. Fewer short sales are good news to homeowners, as many of our homes have had values set by the short sales over the past few years. Fewer short sales are not such good news for buyers, as the number of “good real estate deals” will decline with fewer short sale homes on the market. If you are an underwater homeowner and if you are considering a short sale, did you know that in many cases your bank will pay you as much as $5,000.00 to move? And that if you are behind on your mortgage payments that the bank would much rather you short sale your home than foreclose on your house? Simply stated, banks are not in the business of selling homes, they are in the business of making loans, so banks do not want to take back homes in foreclosure, they would much rather have homeowners complete a short sale. Please click here for more details. |
Tom Lyons
Real Estate Expertise 925-216-1105 realestate@tomlyons.com
List and sell your home for a 1.5% listing fee!
Where is the available house inventory?? Posted September 2012.
Inventory levels on available homes in our Tri Valley Area are almost non-existent in the Fall of 2012.
There are 84 available homes in Livermore, 88 in Pleasanton, and only 68 available homes in Dublin. (This includes single family homes and condos.) Considering all the buyers that are out their purchasing homes right now, these available figures are extremely low. There are a couple of reasons why there are so few homes available for sale.
-
Record low interest rates have many homeowners refinancing. Mortgage payments are so affordable that it makes little sense, to many, to sell. So in “The New Economy”, post recession, many homeowners are simply choosing to stay put and not move.
-
House prices have dropped to 2002-2003 levels. So many simply do not have the equity in their homes to move elsewhere. Again, another consequence of “The New Economy” brought on by the recession.
-
Much of this will change over the next few years as house prices start to appreciate once again.
Did you know? House prices are appreciating in 2012. In the lower price ranges in the Tri Valley .... Which is approx. $300-$500K house prices will probably rise 10-15% in 2012! Higher prices ranges are not appreciating as fast. |
What happened to all the bank owned foreclosures? For the past few years we have been reading and hearing about all the foreclosures and all the “Shadow Inventory” which was this huge back log of foreclosed home that was going to glut the market and drive home prices down further. What happened? Well, this glut of house inventory never really happened in our area. True, the banks took back record amount of homes in foreclosure, but here is a fact that is seldom discussed or published. Banks sold record amounts of REO’s to investors in what is called “Bulk REO Sales”, where investors, of LLC’s, will purchase blocks of several hundred (or more) homes from the bank for pennies on the dollar. Major banks took thousands of homes off their books this way. The investors then either fixed up and flipped these homes for profit, or they turned them into rental homes, for which there is a very strong demand. For more info on this please click: |
Comments(1)