Months of Inventory for Danville, San Ramon and Surrounding Communities

The Months of Inventory continues to decrease month after month.  June 2009 is 25% lower than May 2009 and one third the inventory of June 2008. 

Dublin has less than one month of inventory and San Ramon less than 2 months. 

Average Months of Inventory for 20 Bay Area Cities =  June 1.46, May 1.96, April 1.99, March 2.79 and June of last year 4.79. 

As has been the trend all year, the lower priced communities with significant numbers of distressed properties that were short sales or foreclosures have the lowest Months of Inventory because they had large numbers of pending sales. 

Months of Inventory definition:  The current number of active listings by community, area, or price range divided by the number of pending sales going back only 30 days.  This figure is a guide to how many months it will take to sell the current inventory if the current rate of pending sales over the last 30 days remains the same.

Our FREE In-Depth Real Estate Market Reports updated weekly, break data down by zip code and price point. These are the best "real time"sources of data you can get for your local market.

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More Banks Playing Ball with Loan Modifications

According to Rodney Kennedy, a loan modification agent in the East Bay, more homeowners are benefiting from loan modifications. "More banks are getting onboard with trying to help homeowners avoid foreclosure and stay in their homes."

I'm sure a great deal of this is because of the California Foreclosure Prevention Act, known as SB 1137. It was the first law in the nation to impose a foreclosure moratorium and encourage quality loan modifications. This legislation only applies to foreclosures on loans made between January 1, 2003 and December 31, 2007. It sunsets December 31, 2013.

The Act’s main components are:

• The lender must contact the borrower that is in default at least 30 days prior to initiating foreclosure proceedings in order to assess the borrower’s financial situation and explore options for the borrower to avoid foreclosure. The lender must also inform the homeowner that he or she has a right to an additional meeting that must be scheduled within 14 days, upon request. These requirements effectively increase the advance notice period for a California foreclosure sale from 110 days to 154 days.
• The lender must provide the borrower with the telephone number of a HUD certified counselor. The Act Authorizes the HUD certified counselor to represent the borrower in subsequent discussions with lenders regarding options to avoid foreclosure.
• The lender must maintain a toll-free number providing access to a live representative during business hours.
• The lender must provide any renters on the property with either a 60-day notice to quit or a new lease.
• An owner of a vacant property acquired through the foreclosure process must maintain the exterior of the property or be subject to a fine (by a local government entity) of up to $1,000 per day.

Our FREE In-Depth Real Estate Market Reports updated weekly, break data down by zip code and price point. These are the best "real time"sources of data you can get for your local market.

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Months of Inventory for Danville, SanRamon, Pleasanton, etc. 

The MLS numbers continue to decrease - Months of Inventory = February 5.31, March 2.79, April 1.99, May 1.96. 

Two years ago, May 2007, average months of inventory for Contra Costa & Alameda counties was 7.38. 

These figures continue to indicate that foreclosures and short sales for the most part still dominate the market in the lower priced communities.However

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California's Median Home Price Posts Gain, but Short Sales & Foreclosures Continue

The median price of a home in California rose for the second consecutive month in April (1.4%).The California Association of Realtors reports that inventories of homes priced under $500K shrank again, but sales of more expensive homes remains weaker.Tightened lending guidelines forjumbo loans continues to be the biggest limiting factor in high-end home sales. In markets like Danville, Blackhawk and areas of San Ramon, the challenges of jumbo loan financing continue to impact the local real estate markets.

For the entire state, April home sales represented a 49% increase over a year ago. Leslie Appletopn-Young, chief economist for CAR says it looks like the median price for a California home is at or near the bottom.

There are two big issues still facing the housing market and a full recovery (not including unemployment) - inflation and adjustable rate mortgages that will reset in 2010 and 2011. Right now, inflation and rising interest rates are what buyers and sellers need to keep in mind. As interest rates rise, we typically see home sales slowing a bit.

Most mortgage brokersand lenders I am talking to (as well as my fellow real estate agents) think the days of less than 5% interest rates are gone for quite a while. With the huge debt issues facing the country, they don't see the government keeping the downward pressure on interest rates. Most expect interest rates to hit 7% before the end of the year.

For homeowners thinking of selling, this is yet another return to the reality that the best price you can expect now, may not be the best price you will get later. Even if home prices bottom, if sales slow and inventory rises, the time it takes to sell a home may rise significantly. Home sales are brisk right now and interest rates remain favorable. Getting your home on the market now, may be the best option. Traditionally the real estate market begins slowing by mid-August.

If you think you might be facing a short sale situation, here is a list of documentation you will need:

• Hardship letter
• Financial statement
• Bank Statements
• Tax returns
• Other lien holders

Our FREE In-Depth Real Estate Market Reports updated weekly, break data down by zip code and price point. These are the best "real time"sources of data you can get for your local market.

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Homeownership Still Pays High Dividends

A recent analysis of Federal Reserve data by the National Association of Realtors shows that homeownership is still a smart decision. The data shows that homeowners continue to have greater wealth than renters - even in this down market. 

Positive equity still exists for most homes purchased since 2003 and negative equity situations vary according to region and community. In Northern California, home equity gains for homeowners who purchased in 2003 still average $105,000. Twenty-year homeowners in Northern California average $481,000 in home equity according to the data.

The data clearly shows that homeownership remains one of the strongest elements of wealth building for Americans.

Here is the home sales and median home price data for April. 

Contact Craig for more information on local real estate markets and home sales - 925-984-4910

Our FREE In-Depth Real Estate Market Reports updated weekly, break data down by zip code and price point.