Here is the chart for the median sales price of homes in the TriValley area of California from 1998 on. Click here for the pdf file.

Here are some interesting stats about California real estate, the buyer, seller, the real estate agent and how the Internet is impacting it all. We have spent the last seven months converting, upgrading and systemitizing things to improve our service for the "connected customer."

We love it when visitors "drop in" via the IM widget!

If you're interested in real estate in the San Ramon or TriValley areas of California, we'd love to hear from you. Our V.I.P. Buyer Service reduces the hassle factor for buyers searching for property.

2006 Hindsight in the California Housing Market

• Share of first-time buyers fell to the second lowest level in history
• Second mortgage users increased 5%
• Zero-down buyers more than quadrupled in last 6 years
• Bay Area sales declined 19% in 2006, lower than the rest of the state.
• Hybrid loans decreased, 30 year fixed increased
• Median down payment decreased
• Median age of first-time buyer is 35
• Median age of repeat buyer is 45
• Typical home seller is 50 years old and has lived in the house 5 years before selling.

Internet vs. Traditional Buyer

Some statistical information for real estate agents in denial about the significance of Internet to their future:

• 92% of Internet buyers find their agent online
• 0% of Internet users found their agent through brochures, yard sign, flyers, or mailed postcards
• 80% start the home search online
• 100% look for homes first before looking for an agent
• 4.8 weeks of  research before contacting an agent
• Internet buyers spend 2/3 less time with an agent
• Internet buyer look at 50% fewer houses before they buy
• 97% of Internet buyers use broadband
• Internet buyers average a move of 242 miles
• Internet buyers interview an average of 1 agent
• 69% say response time is important
• 83% prefer email over face-to-face
• Internet buyers were 25% more satisfied with their agent
• Internet agents’ clients are more satisfied with communication than traditional agents’ clients.
• Internet buyers are twice as likely to use the same agent again

Plesanton TriValley Realtors® Marketing Association

I attended the TriValley Marketing Association meeting yesterday (Jan 11) at Tommy T's in Pleasanton, CA. This was the first meeting of the year and was well attended. It was also the first time we've met at Tommy T's.

It was an energetic and enthusiastic crowd with many listing presented (see some of them below) and the "High Priestess of Poop" presenting the coveted Pink Flamingo to Pat Griffin for continued excellence in the field of "Home Mobility."

This month's room sponsor is the Pleasanton Weekly - many thanks to them.

New MLS Listings Presented at TriValley Marketing Association:

There were 22 properties listed on the tour sheet and we gathered flyers for the following properties. The Harper Team can help you with these or any other homes, condos or townhouses for sale in Alamo, Danville, San Ramon, Dublin, Pleasanton or Livermore, California.

In addition, we have an established network of professional Realtors we work with throughout the Bay Area and The U.S.

Here are some of the featured properties for sale:

• 5610 Belleza, Pleasanton, CA. Central location -1 bed condo w/garage. end unit w/lots of light.
• 3307 Touriga Drive, Pleasanton, CA.4 bed 2.5 baths Lots of updates
• 7409 Stonedale Drive, Pleasanton, CA 3 bed 2.5 bath Townhouse in the Gables
• 676 Concord Place, Pleasanton, CA  2 bed 1.5 bath Condo – end unit
• 439 Cabonia Court, Pleasanton, CA. 4 bed 3 bath home in Ruby Hill
• 4608 Inyo Court, Pleasanton, CA 3 bed 2 bath over $100K in upgrades
• 3537 Gulfstream Street, Pleasanton, CA 4 bed 3 baths
• 2756 Hartley Gate Court, Pleasanton 3 bed 2 bath single story home
• 7558 May Way, San Ramon, CA 5 bed 2.5 bath Updated kitchen
• 2377 Avalon Way, San Ramon, CA. 5 bed 5 bath in Windemere
• 6162 Bay Hill Court, Dublin, CA  5 bed 5.5 bath overlooks 9th hole of Dublin Ranch Golf Club
• 6410 Dijon Way, Dublin – Torrey Pines location 2 bed 2 bath condo
• 10708 Ian Lane, Dublin, CA  2 bed 2 baths Townhome w/garage
• 3934 Tamworth Court, Dublin, CA. 3 bed / 2.5 baths 2 car garage

Some of these are expired listings that are returning to the market. There is a fair amount of controversy in the real estate industry regarding the practice of re-listing which can give the consumer a false impression of how long a property has been on the market (DOM – days on market). Ask your real estate agent to check the listing history to verify DOM to strengthen your negotiating position.

Remember, as a buyer, it costs you nothing to employee the services of a professional Realtor®

Condo Tips for Buyers in the communities of San Ramon, Dublin, and Pleasanton, California. 

Our fellow Keller Williams Realtor Michael Roess, of iMetroproperty.com is a condo expert with experience developing and selling condos in San Francisco, New York, and Minneapolis. Michael has put together a list of pointers for potential condo buyers.

Consider this your 2007 how to buy a condo primer:

Select the building(s) you are interested in very carefully:

Smaller Buildings (20 units or less)

• Be cautious of buildings that have too many and two few units.
• Buildings that have too few units can be difficult to manage and control the common area expense (association dues).
• It is difficult to find a property a property management company that will devote much time to a building that has fewer than 20 units.
• Property management companies also charge a minimum management fee of $15,000-$18,000 and this can become a big expense per unit if there are only 10 units and this fee is negotiable if the building has a large number of units.
• Be cautious of self-managed associations as this can cause conflict among resident and is uncomfortable (similar to a shared driveway).
• When a large capital assessment arrives (roof, parking lot, exterior maintenance or replacement or boiler expense) this can result in a large assessment per unit.

Larger Buildings (100 Units or more)

• Most loft and condo buyers are first or second time buyers and will live in the property 3-5 years so resale is a very important issue.
• At any point in time it is likely that 5-7% of the units in any building will be for sale in any particular building
• If the building has 400+ units like River West, River Station or The Towers you will be competing with 30 units when you decide to sell.
• When we show a Buyer a large building that has many units for sale we find that they have a hard time recalling any one particular units they saw that day.
• It is sometimes difficult to have a voice in a large building if you are concerned about homeowner’s dues or other issues as the association tends to be run by the management company (and their fee is often based on the expenses to run the building).
• These buildings tend to have a great amenities package (swimming pool, health clubs, business centers, etc.)

Over the years we have found the following to be a good safe bet:

• Mid size buildings that are well located (Warehouse District or Mill District).
• Buildings that are unique (warehouse conversions or well designed new construction where the developer has not repeated their work over and over).
• End units or units higher in the building.
• Ground floor units are good provided there is something special (larger deck/on a green space/not on a city street).
• Homeowner’s dues that are 20-30 cents per square foot when you pay your own heat and utilities; 30-40 when it is included (stay away from older large buildings with high dues).

 Pick the right tool for the job (get an agent that knows the market):

While friends and relatives are great they will often not possess the in depth knowledge of various buildings to help you make the best decision (an experienced agent will be able to tell you which buildings have been a success and why and which units were popular within a particular building).

• Have your agent run the market time for pending and sold units in the buildings you are considering.
• Have your agent analyze then number of listings that have been cancelled or expired as a percentage of listed by building.
• Have your Agent ask the property manager how many foreclosures there have been in the building you are interested for the past 24 months (seller could not sell and ultimately the property was foreclosed).
• Have your Agent determine how much the dues have changed over the past three to five years.
• Ask the property manager if they are expecting any special assessments for capital improvements and if there are funds in reserve to cover this type of expense should it occur.
• Weigh the possibility of increasing interest rates against a building that will not be finished for 12-24 months to determine if you would still want/qualify for the payment if it were higher.
• Educate yourself on recent mortgage practices/products (go to www.behindthemortgage.com for information).
• Interview three lenders and ask them for an example of a recent transaction for a loft or condo so that you can audit their fees.

The Harper Team has extensive experience in the sale and purchase of condos in the San Ramon Valley and TriValley areas of California. We keep abreast of new projects and conversion projects. We have had a great deal of success getting first-time buyers into their first home. 

After the Latest California Gold Rush

What will 2007 be like for residential real estate in the San Ramon and TriValley areas of California?

This past year marked a year of transition from the most recent California Gold Rush in which real estate values exceeded the rules of Newtonian Law. Real estate prices are finally returning to a normal market level.

Sales transactions in 2006 have decreased by close to 25% compared to 2005, but average sales prices are only down 2 to 3%.

Speculators have dropped out of the market and buyers are being more selective in what they will buy and what they will pay for a property.  We are returning to a more balanced market where buyers and sellers both have power in the negotiations and prices are now based on comparable recent sales prices, not speculation.

This situation is healthier for everyone in the long run.

Real estate remains one of the most stable long-term investments. In Danville, San Ramon, Dublin and Pleasanton, CA., residential real estate prices have approximately doubled in value since 1999.

If you have been following our market trend postings you are aware that we are now starting to see some shifts in the market for the better. New home sales nationally were up three of the last four months and the local real estate board recently reported that closed sales transactions were up 9% compared to last November.

Interest rates continue minor fluctuations remaining mostly stable - around 6% for a 30 years fixed rate loan. Many experts predict rates will fall further in 2007.

The East Bay is leading the state in new jobs.  The demand for homes will continue in our area which is seeing “build out” in several communities putting pressure on they supply and demand dynamics that run real estate prices.

Given the stability of interest rates, the return of consumer confidence, the easing up of “bubble mania” & “doom & gloom” hype by the media, we expect that Spring will bring a slight increase in selling prices and transactions.

Image from http://www.library.ca.gov/goldrush.