A positive sign for new home builders was reported in the following San Jose Mercury News article. While home sales in general have dropped over the last few months we have seen prices increase around the entire bay area including Danville and San Ramon real estate. This points to something that we have been saying for awhile now regarding short sales, foreclosures, and normal resales, which is that everything has seen to normalize. Basically, the days of stealing a short sale or foreclosure seem to be over. All homes are basically selling at the prevailing price per square foot.
The following Wall Street Journal article lays out a slight increase in interest rates and why that may signal that the bottom has been reached. In speaking to loan and mortgage brokers I have heard a consistent forecast for rates beginning a run up. What this means for buyers of Danville and San Ramon real estate, and in fact real estate anywhere in the bay area, that if rates are affecting your decision to make an offer you should most likely make a move to buy now. There is good inventory at great prices on the market right now. Many of the homes currently listed are short sales and it is my belief that the banks will continue to move short sales as opposed to mass foreclosures.
The following San Francisco Chronicle article highlights a situation that was bound to happen. That being the large number of bank refinancing going on amid record low interest rates. The affect on Danville and San Ramon real estate has been felt and in fact it has had an affect with overall home sales. One issue that has become apparent is that the endless introduction and changes to loan programs have made banks very conservative and has had an impact on the sale of mid to high priced homes. Additionally we see 1 in 5 mortgages that are underwater and those underwater loans have not been able to take advantage of the existing mortgage market thus compounding the problem for people who purchased their homes between 2003-2007.
The following Contra Costa Times article discusses the current banking situation regarding bank employees “Robo Signing” bank documents for foreclosures. This issue has caused a few banks to postpone further foreclosure activity until a solution is in place. While I don’t agree with the practice of “Robo Signing” I do understand how it can happen. The fact that over 20% of all mortgages across this country are underwater and in distress and with the enormous pressure banks are under to resolve these distressed mortgages created an environment where bank employees took short cuts. In fact over 25% of all sales for Danville real estate are either short sale or foreclosure. With San Ramon real estate the number is 44%.
We regularly get questions from prospective sellers regarding the best time to list their Danville or San Ramon real estate. In fact the question usually comes around during the last quarter of the year when the holidays start rolling around. In the following video I discuss the market and provide some insight on buyers. This is applicable to normal resales, short sales, and foreclosures.
. This points to something that we have been saying for awhile now regarding short sales, foreclosures, and normal resales, which is that everything has seen to normalize. Basically, the days of stealing a short sale or foreclosure seem to be over. All homes are basically selling at the prevailing price per square foot.
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