With the extremely volatile state of the current  real estate market, it seems wise to contact you and share our view of the local market conditions.  The Tri-valley is, like many other Bay Area communities unique, and what is true in one of those areas may or may not be true here. We do however share in the effects of some of the forces which influence all markets such as the cost of borrowing money, consumer confidence, and the affordability of our homes relative to incomes.

Within the Tri-Valley, there are also differences from one town to another. For instance there are currently 183 single family detached homes for sale in Pleasanton, while in neighboring Livermore there are 387 of those dwellings for sale. So in the two cities of roughly equivalent size, Livermore has twice the inventory of Pleasanton. It is noteworthy that the two cities combined have approximately 50,000 households so 550 homes on the market does not constitute an over supply of homes available for sale. While there has been some deterioration in home values, this area has not experienced the drop in prices seen by the towns to the north and east such as Tracy and Brentwood for example. While the number of homes sold has fallen from the peak,[2005], we sill have the desirability of our neighborhoods  attracting people to this area. Many people still want to purchase a home here and enjoy the benefits, the schools,the parks and recreational amenities which come with living and working in this environment.

It is true that some of the “bank owned’ properties and “short sales” are starting to become more numerous and will have some effect on the comparable sales as we move through 2008. We are going through a period of price corrections, downward from the peak of two to three years ago. However if you purchased a home in say 1999,that home is still worth easily twice the amount you paid then. Real Estate cycles, like all investments go through highs and lows, Long term no investment is as secure, provides as many benefits and performs as well as real estate. We need to take a step back and view the market with a broader perspective and celebrate our good fortune

Cindy and I do a great deal of consulting and counseling with our clients in addition to listing and selling homes and investment properties. If you have any questions at all about your particular and specific real estate situation please call and we will gladly share our combined knowledge and experience with you. In this time of rapidly changing conditions we will do our best to keep you informed with the latest information to best assist your real estate decisions. Thank you for your continued support and friendship.

Sincerely,
Joel and Cindy

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Let’s say, as a prospective home buyer, you venture out today, to shop for and purchase a home.  You are expecting to make a great deal, right? With all the articles you’ve read and all the news you’ve heard you will have abundant choices and negotiate terms which will bring the seller to tears!

Not so fast. It depends on where you are looking, and what you are looking for. Let’s say, for example, you are in the 680 corridor and Pleasanton seems to be a good fit for the criteria you desire…commute to work, schools, shopping, all the amenities a community offers which you deem important, are there. So, let’s see what your choices are, in a city of over 75,000 people, Pleasanton has over 26,000 homes. Sounds like you’ll have quite a selection of homes to consider.

Maybe…

Suppose your budget is between 700k-800k and you want 4 bedrooms + 2.5 baths.

As of this writing, there are 183 detached homes for sale in Pleasanton, of those 63 are priced over 1.5 million and 20 are over 1.0 million. That leaves 100 in all other price ranges to consider.

Of the 100, 20 are less than 1400 sq.ft. which you reject as “too small”!

So in your price range of 700k-800k and wanting 4 bedrooms + 2.5 baths and, oh yes, your wife prefers newer than 17 years old, you have exactly 1 home to view. (that one, as it turns out is very close to a major freeway).

In truth then you are now in a very strong seller’s market and when one home does come available, you will probably have to compete with other buyers hoping to find a similar property.

This is not exactly the “buyers market” which the media told you to expect.

Don’t give up, there’s always the chance your wife will settle for a 30 or 40 year old home and you will have a few more to choose from…

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The analysis indicated market value of their home to be around $950k (price per square foot, condition and location).
 
STOP! Not so fast!
 
During that same week, I had represented a buyer on a purchase of “new construction”.

I had submitted offers to several different builders in behalf of my buyers.  The result was an acceptance on a beautiful new home with $1000’s given in concessions and an accepted price well under the builder’s published price! (even included all the model furniture in the home!)

A point to keep in mind here….builders often do not publish their sales data (not available on any internet site boasting to have the accurate information to assess home value).

In conclusion, the market value of my seller’s property would be inaccurate if only the published sales data is reviewed.

Maybe that is why we see some homes sitting on the market “for sale” for a very long time?

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