Greenspan said so…

There are as many opinions on the state of the housing market as there are economists, realtors, mortgage lenders and consumers. So does anyone know when the market will change? Probably not, but Greenspan has his own opinion. As former chair of the Federal Reserve, Greenspan told the Commercial Finance Association yesterday (10/25/06) that housing prospects are looking up. “Most of the negatives in housing are probably behind us. The fourth quarter should be reasonably good, certainly better than the third quarter.”Â

A few ways to save on taxes before years end

The end of 2006 is almost here, but it’s not too late to cut taxes by putting money in real estate. Here are 8 tax-saving opportunities.

Sell a principal residence before the end of the year. If it was owner occupied for at least 24 of the last 60 months before its sale, the sellers can claim up to $250,000 tax-free and $500,000 if they are a married couple filing a joint return.

Buy a principal residence before year-end. A typical home acquisition loan fee of 1 or 2 percent of the mortgage amount is tax-deductible as itemized interest. Mortgage interest paid in 2006 is also tax deductible.

Refinance a home mortgage and deduct previously nondeductible loan fees. In the year of paying off a mortgage, whether by refinancing or selling, those fees become fully tax-deductible as itemized interest.

Get a home equity loan, whose interest is usually fully deductible, and use the money to pay off nondeductible interest from credit card debt or a personal loan.

Prepay the January 2007 mortgage payment in 2006.

If the local tax collector will allow it, prepay 2007 property taxes and deduct them in 2006.

If you moved more than 50 miles and changed jobs, deduct those moving costs.

Deduct uninsured casualty or theft loss. Only losses that are more than 10 percent of your 2006 adjusted gross income qualify.
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-Inman News, Robert Bruss (10/26/2006)

Pleasanton Market Time by Price Point

Just because your friends home sat on the market for 7 months does not mean that all homes are seeing a drastic slowdown. In fact some homes are still seeing multiple offers, overbidding, and homes never hitting the market. What does this tell us?
If you are a seller- you need to be realistic about pricing, condition and terms. In September ‘05 there were 80 homes on the market at the end of the month, Sept. ‘06 had 234. Buyers now have choices, so your home must stand out to get sold. Hiring a realtor that has experienced this type of a market will be your best decision. Be sure you hire someone who knows how to be creative when marketing your home and getting the most money for you.

If you are a buyer- Don’t think you can wait forever and time the market. Right now you have choices and leverage over many sellers who have made a mistake and priced their home too high. Decide what it is in a home you want and go find it. The market will soon shift into the favor of sellers and you will be trapped into buying a home for more than you could have spent and the great homes will again see multiple offers over asking price.

Take a look at the attached graph for an idea of what price points and communities are experiencing when it comes to market time. Don’t think that all homes in those price points are experiencing the same market time, homes priced correctly are still receiving offers well below average times.

Make sure you do your homework when hiring a realtor when selling or buying, it will cost you thousands if you hire someone not experienced in this type of market.

Click here for a full size image

Let’s take a look at market times around the East Bay

As we look at the graph below we see different communities are experiencing vastly different lengths of time a home is on the market. Let us know if you would like detailed information on your community and what each price point is doing.

Click on the graph for a full image

Lower Prices Entice Buyers

As prices in some communities experience drops, many potential buyers are jumping in and getting the home they want, in the neighborhood they want, and at a price or monthly payment they want.Â

Lower home prices are turning potential buyers into active lookers, and sellers are showing more willingness to negotiate, the NATIONAL ASSOCIATION OF REALTORS® reports. The trend is expected to inject life into slowing markets.

Interest Rates to Rise Next Year

The 30-year fixed-rate mortgage will probably average 6.5 percent in the fourth quarter but will trend up modestly in 2007. The 30-year fixed-rate mortgage will probably average 6.5 percent in the fourth quarter but will trend up modestly in 2007.

As sellers look for creative ways to sell their home, many buyers are getting their dream home at a price and terms they want. Interest rates are good, but may be trending up in ‘07. As sellers get more creative, options like seller buy downs are a great way to save tens of thousands of dollars in interest payments. One word of caution is this; sellers markets generally last longer than buyers markets, and as we approach the holidays many sellers will be looking for more non traditional ways to sell their home, and conceding to buyer’s terms. Don’t think that this opportunity will still be here in ‘07 because you may miss the boat on this one and end up losing tens of thousands of dollars or the perfect home.

Livermore Market Update for September

The Livermore real estate market saw an increase in the number of sold homes from July to September, as well as seeing a decrease in the number of units available for the month of September ‘06. Overall market time remaines at 5.3 months for all price ranges in Livermore.

CLICK HERE FOR A FULL SIZE CHART

Pleasanton Market Update for September

The number of single family homes sold in Pleasanton for the month of September was 60. Up from 53 sold homes in September of ‘05. In September of ‘05 there were about 80 homes available, compare that to 234 at the end of September of ‘06. Â

FOR A FULL SIZE CHART CLICK HERE

East Bay Communities Market Time

Not all of the communities in the East Bay are the same and neither are the days on the market. Fremont is still seeing the best market time where communities like Brentwood and San Ramon are above 8 months of supply in homes. This information is useful when comparing communities that are not yet in a buyer’s market.

As you hear reports of a buyer’s market, remember that real estate is local and from town to town there are differences in how long you can wait to write an offer on a home. Some neighborhoods are still seeing multiple offers and homes are available for only a few days.

View the attached chart of market times of East BAy communities and market times of Pleasanton broken down by price range.

View East Bay Market Time Chart

Pleasanton Schools Continue to Exceed

Again, all Pleasanton schools exceed the state’s goal of 800 on California’s API. Attached is a report from the Pleasanton Unified School District on the success of Pleasanton schools. Not only did every school in Pleasanton exceed the 800 API mark, but seven individual schools had API scores above 900. Pleasanton schools are one of the key components of this communities continued strong real estate values. A home purchase in a community with outperforming schools will continue to see strong appreciation in real estate values. If you would like more information on the Pleasanton Unified School District please visit www.pleasanton.k12.ca.us

Pleasanton School Report Link