Home Prices Bottoming – Good Deals Everywhere

As the Assessor of Contra Costa County since 1995 and a student of the real estate market of the East Bay since 1971, I’ve never felt more compelled and stronger about advising anyone and everyone who ever thought about getting into real estate to do it now. – Gus Kramer

Kramer says that real estate values may continue to slide a bit in Contra Costa County through 2008, but now is the time to be actively engaged in the buying process. “You are never going to find it more affordable than today,” says Kramer.

Kramer tells a story of a friend who bought a home in Brentwood CA in October of 2007 for $530K. This same home was selling in August of 2005 for $890K. In March of this year a home on the same street was listed at $395K.

“We haven’t seen values this low since sometime between 1998 and 2000,” says Kramer.

Time to Invest in East Bay Real Estate

Buying a house for under $300K with today’s interest rates and soaring rental rates at a premium due to foreclosures creates positive cash flow opportunities – very rare for California real estate in the last 20 years.

Homes at the low end of the market are going to see the fastest appreciation when the market comes back. Antioch, Brentwood, San Ramon, Walnut Creek and Martinez are just a few of the Contra Costa communities with current low housing prices that are attractive to first-time buyers.

The final word from Gus Kramer – “I feel so strongly about the market going up that if you buy property in the next year and it doesn’t appreciate, I promise you, I will not raise your taxes.”

Here is a snapshot of local Real Estate inventory in Contra Costa and Alameda Counties.

The table represents aggregated values based on MLS data for the specified date.

Home values in East Contra Costa County are being affected by high foreclosure rates. This is affecting median and average list prices for the entire county. The I-680 Corridor continues to weather the downturn in the housing market better than much of the country.

Real estate is always a local business. To get more specific information on local communities request our FREE Real Estate Local Market Details.

San Francisco Bay Area Foreclosure Statistics

East Bay Area - South Bay Area

REOs (bank owned properties) and properties going into pre-foreclosure (NODs) continue to rise across the country, California and the Greater San Francisco Bay Area.

Banks and local real estate agents are reporting multiple offers on bank owned properties throughout the Bay Area. 

In the East Bay, Contra Costa County continues to lead in the number of properties entering foreclosure and being returned to the bank.

In Contra Costa County, the communities of Antioch, Pittsburgh, Oakley, and Brentwood continue to see increasing transaction activity as buyers looking for good deals and investors buy up REOs.

Alameda and Santa Clara Counties show a dip in foreclosures for June.

In San Francisco Count, the foreclosure figures are the lowest in the Bay area - almost a tenth of other Bay Area counties.

This is the time to buy a Bay Area home or to invest in East bay real estate. Convergent downward forces on home prices are most likely at their maximum right now. 

We may see further price erosion in some areas, but increases in interest rates will likely negate any savings realized by a further drop in price.

Additionally, buyer's negotiating power is peaking. Any improvement in any area will begin to erode the buyer's side of the negotiating table.

If you have an interest in foreclosures or bank owned properties in the East Bay communities of Alamo, Antioch, Brentwood, Concord, Danville, Dublin, San Ramon, Pleasanton, or Walnut Creek, CA - contact Craig (925) 984-4910.

Mortgage orphans is a term used to describe homeowners with mortgages that no longer have a mortgage broker or loan officer due to their lending institution going out of business. There are a lot of mortgage orphans these days. The most recent deluge of orphans is a result of the IndyMac Bank takeover by the FDIC.

Last Tuesday, I attended the Contra Costa Realtors in Motion meeting at Concord Centre. IndyMac Bank was this month’s sponsor of the CCRIM. A representative of IndyMac Bank told the group – though IndyMac is leaving the traditional mortgage business, IndyMac is strong and remains a big player is certificate of deposits. I guess the upper echelons of the corporate structure weren’t sharing the depth of the troubles with their employees. This is often the case. It’s sad to see people put into these types of situations.

I ran into one of IndyMac’s former agents yesterday. He used to be part of their retail lending division in San Ramon, CA. I asked him what he was going to do and what he thought of the current situation.

He told me that he started looking for other options several months ago. He also told me that in his opinion the big banks taking over the lion’s share of the mortgage business is not good for consumers.

“The big lending institutions are top heavy with expensive level after level of management. The consumer winds up footing the bill for all of those salaries and the mortgage business does not really need or require all of that structure.”

I was also informed that there is a group trying to buy IndyMac’s former retail lending group. He did not feel that this was going to be a good thing either. My sense was because of the group involved in the takeover attempt.

Many homeowners' relationship with their lender or mortgage broker is a fleeting affair when it should be a long-term relationship. Finding a good lender or mortgage broker and consulting with them regularly like you would your financial advisor or CPA is a good thing.

If you find yourself in the position of being orphaned, pick up the phone and start the process of finding a lending professional that can help keep you abreast of what all the changes in the industry mean to you as a homeowner.

Selling Real Estate Takes more than a Sign, MLS, or Trulia

Don’t get me wrong. These three are important elements, but many agents ignore the value of the local Realtor marketing associations meetings and the networking that goes on there.

The other critical element that is often overlooked is – BUZZZZZZZZZZZZ.

There is a lot of real estate for sell these days in the TriValley area. Inventory in most local markets like Danville and San Ramon continues to climb. Walnut Creek is taking a bit of a dip and Dublin – well, Dublin CA continues to amaze me this year.

We have a new listing in Concord CA on Treat Blvd. This is an exceptional house, but the challenge is that the house is priced at the high end of the Concord real estate market. No matter what community or neighborhood you explore, you can find “the highest priced” home in the area. This is only logical – some house has to represent the highest price point in the area.

The trick to selling the highest priced home in any area is –the cream of the crop better be just that. And this house at 3661 Treat Boulevard in Concord is.

I say that with no reservation. This house was built according to standards that only an owner would implement. No builder is going to construct these days with 2×6 studs, and beef up the joists and subfloor to the degree this home has. And the walls were constructed in a factory to make sure they were all true. You should see the pictures of the trucks, wall panels and cranes putting the structure together.

In addition to the construction, the limestone, the woodwork, all of the details just blow you away.. So how do you create buzz on a house like this?

Well, I called my friend Holly Beck at the Balloonman and told her I needed two balloon bouquets – one plain vanilla and one spectacular. The point I wanted to make in my presentation to Contra Costa Realtors in Motion was that this house at 3661 Treat is to other Concord million dollar homes like the wow balloons are to the plain ones. You have to come see this house to believe it.

It must have worked, we have an interested party taking a serious look.

Now, I’m not crediting the balloons or my presentation – I’m really crediting the value of Realtors networking with Realtors and it’s sad to say that the vast majority of real estate agents in the 680 Corridor don’t seem to find value in the marketing meetings.

In this challenging market, if I was a seller, I wouldn’t deal with an agent that wasn’t covering all of the bases.

BTW, the postcard invitations for the Wine & Cheese tour on Thursday are in the mail to a targeted list of over 200 qualified move up buyers in the Concord area. I’m talking – all the bases.