The old adage ‘Buy Low - Sell High’ is a popular cue to wise investment practices. Invest when prices are down….and invest for the long term. This is not the market to ‘flip’ properties, needless to say. If you’re looking for values though, for the long run, it is time to seriously consider jumping back into real estate. Don’t wait, however. As history has proven, everything goes in cycles, and real estate is no exception.
Today’s inventory in the East Bay is flush with bargains - short sales, foreclosures and more affordable prices. Activity has increased in the lower price ranges as the investors are out there scooping up ‘bargain’ properties, and first time buyers once again have the luxury of more inventory to choose from. Competition is heating up for the ‘hot properties’, however. We are seeing more ‘multiple offers’ again these days. The banks are wanting to unload the properties and have seriously reduced the prices as a result. The investors are making offers, and sales prices (for a percentage of the properties) are even topping the asking price. Investors understand that homeowners who have lost their homes in short sales and foreclosures still need a place to live. Many of these newly displaced families were hurt by the drastic increase of their monthly payment on the adjustable loans. While their loan payment when up so drastically, their income did not. Most times these individuals are still great prospects as tenants, etc. As such, the rental market is thriving right now as well. Inventory is low, and prices are higher as a result.
It is interesting to note that most of the foreclosures, REO (real estate owned) and short sale properties on the market today in Pleasanton, Livermore and the Tri-Valley were originally purchased between 2006 and 2008. Many of these homes are newer. A good number of those owners pulled out equity from the property and put it right back into the home - banking on the rapid appreciation we enjoyed a few years back. As a result, some of the inventory is ‘turn key’ or close to it with new kitchens, pools, etc….Of course there are a good number of ‘contractor specials’ out there that have been left in total disrepair, but those are only a small percentage.
For even more drastic reductions in pricing and larger inventory, the Central Valley, Tracy, Modesto and and Mountain House have an unbelievable amount of
If you’ve been ‘on the fence’ about making a move, make the time to do a little homework. Check out our website, or www.realtor.com, for example, to see how far your money can go these days. Interest rates for 30-year mortgages are again at record lows. Keep in mind that the limit for conventional loans will be decreasing on January 1st, 2009, however, the change in pricing will only be affecting inventory in the higher price ranges.
For information on available inventory, foreclosure, short sales, REOs or possible avenues for you to pursue to avoid short sales or foreclosures, contact Bob & Deb Cilk at 925.487.8734.
Happy Holidays!