Out with the old and in with the New! This is a phrase that has been used time after time. As we move out of 2007 and into 2008, we hope to see some calm in the storm. We have had a “wild” ride with the mortgage crisis, housing market decline and stock market decline, but interest rates still remain among the lowest in years past.
Real Estate markets just like stock markets will have cyclical movements. Factors that drive these changes are interest rates, supply and demand and our economy. Inventories in some areas have dropped in the 3rd quarter due to the Holidays. These inventories will increase as we move into first quarter of 2008.
Most people will wait to list their home until March, but I have found that buyers start to come back out in January/Feb. If you are thinking of making a move and selling, don’t wait for the supply of homes to increase, which will increase your competition. Call me now to discuss a plan to help you achieve your goals for the up coming year.
On the upside, Interest Rates are projected to remain stable or possibly move slightly lower. Lending underwriting standards have become more restrictive and a mortgage bail out bill offers homeowners tax breaks on forgiven debt on mortgage refinances or foreclosure work-out programs. This will keep volume of sales and prices slightly down but it will be a good time to buy. With the passage of the Mortgage Forgiveness Debt Relief Act of 2007, eligible taxpayers do not have to pay federal income tax on debt forgiven for loans secured by a qualified principal residence and for some it will be a good time to sell. If you know of someone who may need more information about this and how this may help them please give me a call.
According to California Association of Realtors:
Home sales decreased 36.2 percent in November in California compared with the same period a year ago, while the median price of an existing home fell 11.9 percent, C.A.R. reported Dec. 21.“While it is normal for sales to decline at this time of year, regional sales fell more steeply than usual because of the ongoing liquidity crunch and tighter underwriting standards,” said C.A.R. President William E. Brown.
Closed escrow sales of existing, single-family detached homes in California totaled 287,600 in November at a seasonally adjusted annualized rate. Statewide home resale activity decreased 36.2 percent from the 450,930 sales pace recorded in November 2006.The median price of an existing, single-family detached home in California during November 2007 was $488,640, an 11.9 percent decrease from the revised $554,500 median for November 2006, C.A.R. reported. The November 2007 median price fell 1.7 percent compared with October’s $497,110 median price.In summary, 2008 may continue to be soft for sales and the Real Estate climate is not the best it has ever been but homeownership has always been a solid investment and it always will be. I will be watching the market on a daily basis and will be available to you anytime you want to discuss your specific needs. I am looking forward to 2008 and I look forward to working with you.
Oh by the way, Hometown GMAC Real Estate was voted “Best of Pleasanton”.
CALIFORNIA HOME SALE PRICE MEDIANS BY COUNTY AND CITY
Reporting resale single family residences and condos as well as new homes
% Change is from the same month last year
City #Sold Nov 07 Nov 06 Change 06-07
Dublin 20 $ 557,750 $ 662,500 -15.81%
Livermore 48 $ 537,000 $ 589,500 – 8.91%
Pleasanton 39 $ 715,000 $ 700,000 2.14%
Danville 62 $1,021,000 $ 975,000 4.72%
San Ramon 105 $ 797,500 $ 800,000 -0.31%