Considering selling your home? Countertops create the sizzle in the kitchen and many other areas both inside and outside the home. Check out my recent interview with HomeLight regarding the various
Bubble Talk Starting As We Near 2006 Peak Prices
Dated: September 1 2016
Another great summer for East Bay real estate sales with 5,034 sold properties between June 1, 2016 and Aug 31, 2016 (Contra Costa & Alameda County) . However, total sales volume in both counties dipped by 41% due to lower number of available properties for sale which is on going trend locally and nationally. Last year during the same time frame 8,510 properties sold. Nationally we are near 2006 peak prices and the chatter about a real estate bubble has started to creep into many real estate articles. Locally we have eclipsed the peak prices in many cities. However, most would agree that we are in a very different lending world than we were back in 2006 when the market peaked. Back then loans were provided with little to no documentation. Stated loans were very popular and became known as liar loans. Now regulations have tightened, credit standards are more strict and down payments on purchases are generally 20% or more. We are seeing 10% and even 3.5% down payments for very well qualified buyers. The main argument against being in a bubble is the equity in properties is far greater than it was during the 2006 time frame. The average home now has 44% equity compared to 25% back then. That leaves quite a bit of room for softness in the market before most homeowners would be be facing negative equity positions on their homes.
The low rate environment continues and even at today's prices makes home buying a compelling proposition over renting. 30 year loans are still available under 4% which is a great opportunity to lock in long term money and control your housing spend in the long run. Fall and Winter markets are just around the corner and we expect the market inventory situation to remain the same with lower than average inventory levels. However, good news is many buyers step away from the market during this time of year so this could be a great opportunity for buyers to find the home of their dreams with a bit less competition. Keep an eye out for the right property and be sure you keep an updated pre approval with your lender so you are ready to write an offer when the perfect home comes along.
Have a safe and happy Labor Day weekend!
Sincerely,Kevin & Naomi Kieffer Team Leaders for the EastBayPro Team of Keller Williams Realty
Our team received the quadruple platinum award 2015 for exceeding $70M in sales volume. We would be delighted to put our track record to work for you. Please call us anytime. You can click any of the links below to view active listings in any of the cities listed.You can reach our team members at 925-304-6346 - Kevin R Kieffer, Broker Associate - Team Leader for Keller Williams Realty's EastBayPro Team - Our team members include Naomi T Kieffer, Matt Rubenstein, David P Johnson, Heather Gowdy, Scott Maher, Rochelle Maher, Nina Kasper-White & Ken Wilson - Please call and "Let Us Exceed Your Expectations". Our team services the following key bay area cities: Walnut Creek, Pleasant Hill, Martinez, Alamo, Lafayette, San Ramon, Danville, Orinda, Moraga, Concord, Brentwood, Oakland, Fremont, Pleasanton, Dublin, Livermore, Hayward & Castro Valley
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