According to an article recently posted by Andrew Taylor (AP), there is good news about the extension of the First Time Home Buyers Federal Tax Credit. I’m looking forward to more clarity regarding the exact qualifications. I interpret this to refer to clients already in contract by the cut-off date of April 30, 2010, having an extended period of time (September 30, 2010) to close escrow. That is great news for those who have been in contract for months purchasing a short sale property! Comments are welcomed; more news to come.

Pleasanton Real Estate is my specialty and I particularly pay close attention to Shadow Cliff Homes as I am an original owner and resident of the neighborhood. We have seen some very difficult times and are by no means on our way to smooth sailing, but there is some bright news. The chart below shows history from 2008 through today.

This chart is evidence of one neighborhood in Pleasanton, CA but I can surely tell you, activity and multiple offers are the norm in many parts of Pleasanton. In working with my buyers recently we made an offer on a home priced around $675,000. There were 9 offers on the property after only a few days on the market and shortly thereafter, we offered on a property that came on the market on a Thursday and by Saturday afternoon was already pending and also had multiple offers. Rates are low, inventory is low and sellers are seeing good prices for their homes.

If you’d like this kind of detail on another neighborhood, I’d be happy to provide it.

Shadow Cliff continues to be a great place to live. If you’d like further details about this report, please don’t hesitate to ask.

Jan – April 2010

At current, there are 7 “active” foreclosed properties available ranging from $334,900 to $2,100,000 located in the Ruby Hill community. The smallest of the 7-available properties was recently used as a business location near downtown.

Based on the pattern of the last 12-months, I suspect these properties will be pending within a matter of days. For homebuyers thinking of purchasing, the best advice to take heed…get pre approved by your lender of choice because in this market, once you fnd the property, acting quickly and wisely with the professional you feel most secure with is your best strategy.

• 86-Single Family Homes priced from the low of $399,000 up to the high of $8,888,888
• 15-Condos priced from the low of $170,000 up to the high of $395,000
• 14-Town Homes from the low of $189,000 up to the high of $468,000

The shortage of homes available on the market continues to be the trend. We are beginning to see a trickling of Bank Owned (aka, REO, Foreclosed) properties come to the market; one being in the Shadow Cliff neighborhood of Pleasanton, located on Whitney Drive.

 The First Time Home Buyer Tax Credit is still in affect until April 2010 and FHA loans continue to be accessible allowing for down payment Requirements (as low as 3.5%).

If you’ve been on the fence about selling, this is most definitely a good time to make a move. The market is begging for more properties!

For specific questions or housing information, please feel free to contact me direclty.

When deciding who you’d like to put your trust in, here are a few questions you can ask:

Are you a Realtor®? A new buyer may not even know the difference between a Realtor® and an Agent.  Realtors® adhere to a strict code of ethics and pay an annual fee to belong to their local & state association.  They are kept abreast of issues as they arise via CAR® (California Association of Realtors). Wouldn’t you like someone who adheres to a strict code of ethics and is continually learning about new challenges for buyers and sellers? Agents that do not belong to their local association are not allowed to call themselves Realtors®.  Did you know that?

Do you have any Designations?  Designations are earned by Realtors® that exceed the minimum standards required to pass the California real estate license exam. It is actually quite easy to cram for a test and pass, but it is another thing altogether to continually be studying and working the business from all angles.  It is both costly and time consuming for the Realtor® to earn Designations.  If you work with someone with Designations, you know they are committed to excellence.

 What kind of experience do you have?  It might help you to know how long your potential agent has been in the business. It is not necessarily a bad thing if they are new to the industry as long as they have a good mentor working alongside them.

In most cases, your gut instinct will not lead you wrong. My mom’s favorite phrase, “You Can’t Fool Mother Nature”, meaning that the feeling you get in your gut when something feels wrong will rarely lead you astray, is a valid barometer for you to check.   

When you feel you’ve found the right professional for you, PLEASE be loyal to them. It is so very frustrating in this business to work diligently with your buyers only to find that they are “two timing” you, or worse.  Working with multiple agents, and not committing to one is NOT in your best interest as a buyer.  Please remember that it is time, effort and expense on the part of the professional representing you to locate properties, drive you around town and spend numerous hours with you and then learn you are not loyal to them.  You may or may not be asked to sign a Buyer Representation Agreement. Either way, please be honest with the professional you choose and let them know if at any time you are dissatisfied.

As an original owner, I purchased my home in Shadow Cliff in 1988 and at the time had no children. Since then of course things have changed and have a daughter now in college and my son still at Amador High School. Many know Pleasanton is well known for its educational system and thus many people want to move here.  Shadow Cliff is a wonderful community and very friendly.

Recently my clients closed escrow on a home in Tracy, CA,  a bank owned property. The warranty plan was put in place. About 3 weeks after their move-in date, the water heater began to leak from the bottom of the unit. They called the home warranty company, the water heater was replaced (approx. $900 value) and the client only had to pay $50 out of pocket. I know they are glad to have the warranty in place and told me they may even renew it next year.

 ”Mortgage backs or (MBS) have taken a roller coaster ride the last week and a half; as they go down, rates go up. This negative movement seems unprecedented and beyond the word ‘volatile’. Trying to advise clients as to whether to lock or float has been very difficult.  Large downward movements have been followed by small corrections and then another large downward move” Kurt explained to me. 

 He further went on to say that “Bill Gross, the President of Pimco said earlier this week that the appetite for bonds and MBS is dwindling and we should see higher and higher rates. With China and other foreign countries not buying our treasuries and our government really becoming the only buyer of our own home grown debt, which creates more debt, it seems his outlook is very accurate”.

 Kurt believes the treasury and the Fed have backed off from their position of targeting an interest rate. He said, “Last year and then Secretary Paulson stated that the treasury would target an interest rate of 4.5%. After 2.5 months and much government intervention, they were able to achieve that. Now it doesn’t seem that is their goal, so free market is now in play and more government interaction will lead to more fear of inflation”. In the opinion of Kurt Kessler, rates will go from 5.5% to high 6%’s and low 7%’s (depending on loan type, size and credit score) in the next quarter.

 He also believes, the demand of money is also increasing due to the affordability of properties and that is truly the light at the end of the tunnel. “The 2 things that we know will hold true,” Kurt told me, “is the first-time homebuyers will do very well in this market and secondly, FHA and VA loans will continue to be the product of choice”.

If you’ve been on the fence about interest rates, would like to get pre-qualified or would like to ask some of your own questions, I welcome you to contact Kurt directly. The path to home ownership is still very attainable.