Danville, California
Observations and information of interest to home buyers and sellers in San Ramon, Danville and surrounding areas in Contra Costa's San Ramon Valley. Real estate market updates, happening's and reviews of local area restaurants.
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Feb. 7, 2008
Proposed legislation that could save you money.
Over the last few days, CNBC as well as many other financial news sources have published articles suggesting that the White House and Congress are no longer questioning whether or not to increase the conforming loan limits, but rather for how long. As of right now, it is almost certain that conforming loan limits in high-cost areas will increase between 150-175% (from the current $417,000 to as much as $729,750). As I write this, the bill has passed through the House of Representatives and is on it's way to the Senate, for the final stamp of approval.
How would this benefit you?
As an example, based on today's mortgage rates, you could save up to 1.00%, in comparison to today's Jumbo loan rates! The current debate is whether this increase will be temporary for one year, two years, or be permanent. The final decision may not come until March; however, I wanted to share this important news with you now because it could provide you an incredible opportunity, especially with the recent drop in rates.
Recent rate cuts from the Fed
Interest Rates are at the lowest they have been in years. Last week, the Federal Reserve made an historic 0.75% point cut, followed by an additional .50% this past week. That's 1.25% in 8 days!
The people who will benefit the most when this legislation passes are those who owe more than $417,000 on their current mortgage and those looking to purchase a new home or investment property in California. Once the new conforming limits go into effect, I anticipate the housing market heat up, the stock market to improve, and there will be a huge refinance boom. Be prepared and plan ahead. Banks are going to be overwhelmed. The turn time's from application to close could become anywhere from 30 to 45 days.
Plan ahead
If you are planning to take advantage of the pending higher conforming loan limits and the historically low interest rates, I highly suggest you start getting your paperwork ready now. I will be happy to arrange for a complimentary mortgage evaluation from one of my trusted loan specialists to see how much money you will save as a result of this legislation.
Please start getting together the following items if you plan on refinancing or purchasing soon:
- Pay Stubs (most recent, 1 full month)
- W2's (most recent, 2 years)
- Bank Statements (most recent, 2 months, all account)
- Retirement and Portfolio Statements (most recent, 2 months, all accounts)
- If you are self-employed: Federal Tax Returns (most recent, 2 years)
Jan. 25, 2008
At last it looks like we have a good chance of seeing more movement in the California real estate market this year.
Earlier this week, Governor Schwarzenegger put his support behind the proposition to increase the conforming loan limits to $625,000 for California home loans in a letter to President Bush. Yesterday, Bush announced his support of increasing the conforming loan amount to $625,000 as part of his $150 billion stimulus package. The expectation is that the Stimulus Bill will be fast-tracked through Congress as early as next week and this will quickly be followed by Senate approval.
This means that the conforming limit for California home loans could be increased to $625,000 as soon as next month.
The effect on many potential home buyers as a result of this increase will be significant. First of all, it should create impetus among first-time home buyers who will now be able to afford to get into the home ownership market. And remember that interest rates are still trending downwards which helps everybody.
This will create a knock-on effect as people who are planning to trade up to larger homes will now have a much improved chance of finding a buyer for their existing home more quickly.
Even without this significant change, I have been predicting that homes in Danville, San Ramon and surrounding areas in the San Ramon Valley and Lamorinda would maintain their existing value through 2008 and I also expected to see days on market remain at their present levels. In other words, a static year for real estate in Central Contra Costa County. Now, I expect to see much increased activity, starting with the mid-priced segment of the market (single family homes under $1 million) then spreading to lower and higher priced segments.
Will we see prices increase? Probably not until the excess inventory has been taken up but that could happen fairly quickly, after all, we are coming into Spring which is traditionally the busiest time of year for home sales. Certainly by the time we get through the Summer, I would expect to see at least a modest increase (say at the rate of 5% per year).
Whatever happens now, this has got to be the best possible news for the real estate market in the San Ramon Valley.
Dec. 21, 2007
As we come to the end of a year it is always interesting to look back and review the past 12 months.
Well what a year it was for real estate! Already declining market values were hammered further by the sub-prime fall-out and foreclosures were rife in areas where we never expected to see them. Many short sales as well. Even as we move in to 2008 it is hard to predict if home values have bottomed out or if they still have further to go. Regardless, there are some extremely good real estate buys out there. If I were in a position to buy, I would not hesitate. Rates are good and only a fool plans to buy at the bottom of the market as you can only see the bottom after you have passed it.
From a personal perspective, I had a good 2007. I achieved my targets (just) and I plan to move to bigger and better things in 2008. I also decided to make a change of broker and I am now affiliated with J Rockcliff Realtors, a relatively new name in San Ramon Valley real estate although hardly a new company. J Rockcliff was formed when Jeff Sposito, East Bay Regional Vice President of Intero Real Estate Services bought out all of the East Bay offices owned by Intero Real Estate Services, renaming them J Rockcliff Realtors. This was in March of this year and already J Rockcliff is recognized as the premier East Bay real estate broker.
So 2007 is almost over and soon we will enter a new year. I wish all of my readers a wonderful Holiday season and a prosperous and healthy 2008.
Sep. 24, 2007
Well the Fed cut the Fed funds and
the discount rate. Since the Fed funds rate dropped .5%, so
does the Prime rate. That means equity lines drop .5% at the
first of the month.
So existing homeowners who have, or
who plan to have, equity lines should be well
pleased.
It has been interesting listening to
the comments made by potential home buyers (and sellers) in recent
weeks, particularly just before the above rate cuts. Many were of
the opinion that because "everybody" knew that the Fed was going to
reduce rates, mortgage rates would also go down, thus
stimulating the housing market.
In reality, first mortgage
rates went down the day of the announcement, but in the last three
days they have now risen above their pre-rate cut levels. The
reason is the fear of inflation and the devaluing of the dollars
versus other world currencies. The currency issue can also be
inflationary.
Now longer term, we probably can
look to lower rates but as for now, the market continues as
before.
Speaking as an agent, my main
observation is that homes that are priced right and prepared and
presented professionally will always be the fastest to sell in any
market. It's not Rocket Science folks!
Sep. 24, 2006
It is good to see The Industry supporting an additional level of professionalism. (not that tough or tough enough, but the right idea)
Tougher rules for real estate agents become law
Silicon Valley/San Jose Business Journal - 2:50 PM PDT Friday
Future real estate agents will need more classroom education before they can pursue a license under a bill signed into law Friday by Gov. Arnold Schwarzenegger.
The governor signed AB 2429, which requires prospective agents to complete all three Department of Real Estate-mandated courses before they can take the license examination. The measure, which is supported by the real estate industry, takes effect October 2007.
Under the old rules, a real estate agent had to complete a Real Estate Principles class at a community college or career college and then pass the state's real estate exam, a process that can take as little as a few months. The agent then would receive a conditional license and was required to take two additional classes within 18 months to retain it.
"There has been quite an influx of new agents into the marketplace over the past several years which has eroded the quality of service, the level of services and the professionalism in the industry," said Alex Creel, chief lobbyist for California Association of Realtors, which sponsored the legislation.
"AB 2429 will increase the foundational knowledge of sales licensees entering the profession and prevent ill-equipped licensees from engaging in licensed activity," said CAR president Vince Malta in a prepared statement.
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