Last night, the Meeses hosted a Pre-Auction Martini Party at their house. Parents of students at Greenbrook Elementary School are holding their annual auction to raise money for school projects.

The theme of the auction is James Bond,so Ginny Mees decided to serve martinis "shaken not stirred." The guests stirred things up quite a bit, the auction has raised over $25K a week before the main event.

I managed to get Ian Barlett from Diversified Capital off to a quiet corner to give us his thoughts on what we can expect in the mortgage industry the next few months.

Here are a couple shots of the event:

Yesterday saw mortgage interest rates hit a 25 year low – for about 3 hours! As the day played out, there were a total of four major adjustments in rates according to Mike Tacconi of CMG Mortgage Services and past president of the California Association Mortgage Brokers  (CAMB).

This morning, rates had adjusted twice by 10am and we will probably end the day with at least one more. All of this in response to the Asian financial markets, the recent Fed interest rate cut, the recession worries, the job market report, and the possibility of of more legislative support for the mortgage industry.

What’s the significance of all of this for home buyers? It’s a roller coaster world out there. Home buyers in the Danville, San Ramon, Walnut Creek, Alamo, Dublin and Pleasanton areas will benefit from establishing a working relationship with a professional Realtor and Lender.

It’s a buyer’s market in the East Bay of California and all of this excitement and recession concern is helping to turn a so-so buyer’s market into a hot buyer’s market.

The key to this market for buyers and sellers is not the price of the home, but the monthly payment. Buying down the interest rate is something we are seeing more and more of. It’s often a better solution for the home buyer and the seller.

Talk it over with your lender and agent. The time to get into this buyer’s market is now – you will be reading more and more online and offline about the improvement in conditions for buyers. 

We’ll be seeing more and more headlines in the next few weeks around recession concerns. Funny how this seems to happen quite often just before an election. If I was a conspiracy nut, I’d be having a field day.

The concerns about inflation, a recession and the media play/hype/exposure that wll result will actually improve things for home buyers. All of these factors will most likely result in further downward pressures on housing prices and an increasing slowdown in home sales.

It should be interesting to watch the local trends for the next few weeks.

For the home buyer with secure employment and good credit, this will be a fantastic time to make a deal of a lifetime on a home – even first-time buyers (maybe especially first-time buyers).

Consider these factors:

• Interest rates will drop further as the Fed tries to stimulate the economy
• Rents are on the rise (see last weeks Sunday paper)
• Home Prices are falling
• First-time buyer programs have money, but the number of applicants is falling

While the pessimists moan and groan, the optimists will be able to make deals that lead to future laments of – woulda, coulda, shoulda – from those that want a risk free life.

There’s little risk in obtaining a mortgage you can afford. Base your mortgage on a worse case scenario of what you can afford.

Move up buyers feeling stuck by current market conditions should concentrate on the buy-end savings and not the sell-end price.

People looking to buy real estate, that new home or condo are about to enter the zone – that time home buyers dream of, the sweet spot of buying.

Beleaguered homesellers, having suffered through the continuing housing price slump of 2007 are begining to reset their home prices. Every Realtor we have talked to has been singing the same Price Tune to their clients and the clients are beginning to hum along.

We are starting to see inventory return to the local real estate markets after the holiday slowdown and the seasonal end-of-year pattern of withdrawal. Many of the homes have seen some additional paint, landscaping or other sprucing up. But, the main thing is the price is coming down as sellers hope to catch the active Spring sales cycle.

The time is right for the serious buyer to enter the market. Buyers should give serious consideration to getting pre-approved NOT pre-qualified. Pre-approved means the underwriter has looked you over and is willing to underwrite your loan. This is one of the best moves a buyer can make to strengthen their negotiating position.

NEW HOME BUYERS – If you are considering the purchase of new construction STOP and consider this very carefully – use a professional Realtor. Many buyers think they will get a better deal, without using a Realtor, but more often than not it is just the opposite.

Find a Realtor that has experience in new home sales like our Tracey Harper who worked for 8 years with one of the major builders in the East Bay. Tracey was the sales manager for several large developments and she and other agents with similar backgrounds will tell you they can probably save you even more than the best deal you can make on your own.

Buyers do not have to worry about the agent commission because it is paid by the builder. Some buyers think the builder will pass that savings on to them. Ask any real estate agent – builders are calling us day and night to let us know they are lowering prices and raising what they are willing to pay us to bring them buyers.

Buyers looking for the best choice and the best price need to get in the game now.

There remains some misunderstanding about the current market. Some have been comparing it to the down market of the early 90’s, but that market was driven by a down economy not insane lending practices. Don’t bank on a big downturn in the local economy, the East Bay is one of the most dynamic and healthy economies in the nation at present.

Now is the time to buy.

Here's the latest on foreclosures and real estate trending in Walnut Creek, CA

In general, you might say, that the Walnut Creek real estate market has something for everyone. You want doom and gloom, you can find a pocket or two of doom and gloom in Walnut Creek. You want clear skies and smooth sailing – well, now you're asking too much, but there are some neighborhood pockets where Chicken Little would feel out of place.