Very interesting to hear the official predictions on real estate, only to have them WRONG!  Well, in this review of the National Association of Realtors predictions, it is found that they typically underestimate what will happen in our housing markets.  So what will happen in 2006 when it is quoted that (from NY Times Real Estate Blog http://walkthrough.nytimes.com/?p=244)

"So now the NAR economists are predicting that in 2006 existing-home sales will ease by 4.4 percent to 6.79 million. Judging by their track record, this can only mean one of two things. This year will break all records, or we are in for a sharp decline. – DAMON DARLIN"

Only time will tell of course, but so far just this January it has been extraordinary for my business personally and that of our office.  The sky is not falling. We live in one of the best places to live on earth - the San Francisco Bay Area - Contra Costa county is one of the best for work, schools, recreation, arts , shopping and dining.  They simply aren't building any or enough homes to keep up with our demand in the central part of our county.  Demand often exceeds supply and will likely continue to do so here this year.   Sure we may normalize a bit, maybe it won't be so frantic come spring, but let's wait and see.  Check back and I will post monthly recaps so you can see what the housing market is doing here.   I will be starting a new monthly series of the "Myers' Market Minutes" where I will provide you monthly housing statistics and you can judge for yourself what is going on .  For specific neighborhood information, contact me at catherine@diablovalley.net. or visit www.DiabloValley.net

WOW, but I bet you guessed that was true.  Everyone knows someone who's a Real Estate agent.  Did you know there is a difference between a licensee and a "REALTOR?"  Not all licensee's are REALTOR's.   A REALTOR is held to a much higher standard.  I've seen people use their Uncle Jimmy once, but not usually a second time.  There is a difference in what services and level of professionalism you will receive.  A full time professional REALTOR works in the industry on a daily basis, has a running track record of success, has a proven marketing plan and the practical expertise you need to get the best results in a changing market.  Check out the article in the Contra Costa Times today:

http://www.contracostatimes.com/mld/cctimes/classifieds/real_estate/13741527.htm

The professional will be standing when the dust settles.  Those who entered the market during the hottest times who felt it was an easy buck will perish as the market changes.

From the article:

"Thanks to the housing boom during the past few years, about one in 75 Californians is now a licensed real estate agent, more than ever before, according to the department that issues the licenses.

Rising interest rates, however, will cause home sales statewide to fall by an estimated 2 percent in 2006, according to a forecast issued earlier this month by the California Association of Realtors........."

"We are anticipating a shakeout in the industry in the next few years," said Leslie Appleton-Young, chief economist for the California Association of Realtors. "There just aren't enough homes to sell in California."

http://www.contracostatimes.com/mld/cctimes/classifieds/real_estate/13741527.htm

In an effort to help people reduce the threat of identity theft, members of the local chapter of NAPO (National Association of Professional Organizers is holding a shred-a-thon in San Ramon this Saturday, January 28th, 2006.  The local NAPO folks have teamed up with a shredding company and local office supply stores to help the public shred their personal documents - for free! Up to three boxes per person will be accepted. 

I know a wonderful local professional organizer and will provide her name below.  But also visit www.NAPO.net for resources and help in organizing your space and your life. 

Hiring a professional organizer can be the first step to restoring order for many people.  In their offices, in their homes - even their cars!   I have helped my clients hire an organizer, either to help with clutter control to move out, or to start fresh in their new home.  They can help set up systems and can provide a system that will actually work for you.

For Contra Costa call:

Mary Lynne Murray
It's About Time Organizing Consultants
925.933.9737
Toll Free: 877.933.9737
www.MaryLynneMurray.com
mlm@MaryLynneMurray.com

Contra Costa Average Rent - Rental market information

If you've thought about a major home improvement project, you've probably done your research on colors, styles, contractors and financing.  But have you really looked at what type of return of your investment you may realize?  Remodeling Magazine's annual Cost vs. Value Report is in and profiles 15 major remodeling projects and gives you the actual percentage, as national averages, you will recoup as payback on your investment.  From bathrooms, siding and kitchens to roof replacements, second story additions and new windows - you'll find what you may expect to get back when you sell your property with its new improvements.  The actual cost vs. value report is copyrighted, but you can see it yourself here at Remodeling Magazine's website by clicking here.

One idea before taking on a large remodeling project is to consult with your real estate professional.  They will be able to tell you what they're seeing insofar as payback on these projects in the homes they sell and help people buy.  They can also provide advice in what not to do. For example, if your home is badly in need of carpet and windows, is it worth remodeling that bathroom?  Is it best to put your money in one area? Or spread it around and do a little of a few things?   See Remodeling Magazine online

In Contra Costa, people love remodeled bathrooms, kitchens, new flooring, new windows, fresh paint and a new roof.  Updating your old doors to the newer paneled interior doors, refinishing your hardwood flooring, getting new paint and hardware for your kitchen and baths, can also be some easy ways to perk up the appearance of your home.  Most real estate professionals either have a knack for staging properties themselves, or will provide you a consultation with a qualified professional designer or stager.  Their advice can be invaluable.  But, do get advice before you take on a project when the thought of selling is also in your mind.  People don't gravitate toward stark white homes anymore, earth tones are in.  Get the advice from the people IN the market everyday.

Contact:

Catherine Myers 

Alain Pinel Realtors

925-683-2125

Website: www.DiabloValley.net

E-Mail:  Catherine@DiabloValley.net

Search the Contra Costa MLS for homes for sale by clicking here.

Tax relief for those over 55?

YES! It is true!  A fear I hear all the time are the folks who bought their home years ago, have a small property tax bill by today's standards and they want to move.  Since Proposition 13 passed, your property taxes can not be reassessed or largely increased except upon transfer of ownership (with some exceptions). 

So what happens when you sell your family home?  Perhaps you bought the home for $200,000 in the 1970's and are paying little more than $3,000 a year in taxes.   That same home could easily be worth in some communities here over 1 million dollars.  So what if you want to downsize? To a $800,000 golf course home? The new property taxes on that new home could be over $9,500 a year!  Who wants to think of doubling, tripling or quadrulpling their property taxes in their retirement? Especially when all that equity you built up could potentially buy you that retirement home outright?  Well there is a solution.

Proposition 60 exists to allow persons over 55 to buy a home of equal or lesser value and KEEP their existing property tax base. Only one spouse/owner must be over 55. The replacement property must be purchased or construction completed within 2 years of selling your original property.  There are two exceptions to buying a home of lesser value, which allow you to purchase a home of higher value:

"In general, "equal or lesser" than market value of a replacement dwelling has been defined as: 100% of market value of original property as of its date of sale if a replacement dwelling is purchased before an original property is sold; 105% of market value of original property as of its date of sale if a replacement dwelling is purchased within one year after the sale of an original property; 110% of market value of original property as of its date of sale if a replacement dwelling is purchased within two years after the sale of an original property."

So, if you buy a new home first, it must be equal or lesser. If you sell your home first, then buy... you may go up to 105% of the original property's value if the new property is purchased within 1 year and 110% of the market value, if the replacement property is purchased within 2 years.

Proposition 90 allows you to move to another county who participates in Prop 90 and allows prop 13 tax base transfers. Only 7 counties participate in Prop 90 at this point.  Those counties include Los Angeles, Ventura, Alameda, Santa Clara, Orange, San Mateo and San Diego. It does not matter what county you come from for Prop 90.  Contra Costa, Marin and Monterey are three Bay Area Counties who do NOT participate in Prop 90.

There  are rules and direction you MUST follow to be assured of this benefit, so call the county tax assessor office and visit their website for more information:  Contra Costa County Property Tax Assessor - Prop 60

Appreciation increases in Contra Costa. The numbers for appreciation of Contra Costa's median home prices are in for November 2005.  The following numbers will show the difference between November 2004 and November 2005. Housing bubble?  While there may be a bit of a lull, it isn't uncommon at this time of year.  The prices continue to soar, the sales however, are slowing.  BUT, as is usual for January, the market is bustling once again.  A home I've had on the market since Thanksgiving, got 2 offers in January and lots of other interest.  Another home I just listed a week ago, already got an offer.  Just wait til February/March - the market will be booming right on schedule.

• Antioch $505,000 - UP 19% from 11/04
• Brentwood $715,000 - UP 38%
• Concord $529,000 - UP 23.2%
• Danville $1,096,500 - UP 35.4%
• Martinez $545,000 - UP 27.5%
• Moraga $892,000 - UP 28.5%
• Pittsburg $460,000 - UP 20.7%
• Pleasant Hill $602,500 - UP 14.9%
• San Ramon $758,000 - UP 7.5%
• Walnut Creek $687,500 - UP 31%

If you want to move up, move down or retire here in Contra Costa, the best bet always seems to be to sell in late February/March when the inventory is still a bit low.  Then you're ready to buy as the inventory starts to increase in March/April.  We start to see multiple offers and a frenzied market just about every spring starting mid-April through June. So beat the rush, and start getting ready now.  It's not too soon to prepare.  You can get some prep work done, get a staging consultation, start packing.  If you live near open space, take some photos now to preserve the lush green of winter.

The Contra Costa Times printed an article a few days ago, relating an opinion that the housing market simply suffers a 'small leak,' and notes that the markets in danger of any downturn is mostly the central valley markets, see the article here :

Contra Costa Times - Housing  Bubble to Suffer Slow Leak

Since the dot-com boom of the late 1990s, most of the buzz in the economy has been about real estate and housing construction.

In light of the considerable doom and gloom about the future of the real estate industry (as expressed Wednesday by UCLA Anderson Forecast economist Chris Thornberg at the Contra Costa Business and Education Summit), the billion-dollar question is:

Are we soon going to experience a real estate meltdown similar to the dot-com bust of 2000?  See more

Give me a call if you'd like to get a market analysis of your home - get your home's value.  A right price analysis is important...and can also yield you some clues in how to enhance your home's value.

Catherine Myers, REALTOR
Alain Pinel Realtors

925-683-2125

www.DiabloValley.net

Search the MLS, homes for sale and get relocation information for Contra Costa County. I specialize in Walnut Creek, Concord, Lafayette, Pleasant Hill, Martinez, Alamo and Danville homes for sale.

(To be on my mailing list to be updated each month that new housing statistics come out, click here to contact me.)