What truly causes a housing bubble and the inevitable crash? For the best explanation, let’s go to a person who correctly called the last housing bubble – a year before it happened.
“A bubble requires both overvaluation based on fundamentals and speculation. It is natural to focus on an asset’s fundamental value, but the real key for detecting a bubble is speculation…Speculation tends to chase appreciating assets, and then speculation begets more speculation, until finally, for some reason that will become obvious to all in hindsight, the ‘bubble’ bursts.
I have taken to calling the housing market a ‘bubble’.”
– Bill McBride...
In today’s housing market, where supply is very low and demand is very high, home values are increasing rapidly. Many experts are projecting that home values could appreciate by another 5%+ over the next twelve months. One major challenge in such a market is the bank appraisal.
If prices are surging, it is difficult for appraisers to find adequate, comparable sales (similar houses in the neighborhood that recently closed) to defend the selling price when performing the appraisal for the bank.
Every month in their Home Price Perception Index (HPPI), Quicken Loans measures the disparity between what a homeowner...
You may think that spring and summer are the best times of the year to list your home. However, winter may actually be as good a time as any to list and sell. Bay Area is experiencing a full-blown seller’s market right now. Demand is up and inventory is down! When thinking about listing your home this winter, consider these 5 reasons!
1. BUYER DEMAND IS STRONG
Buyers are ready, willing and able to purchase… and are in the market right now! Multiple buyers are competing with each other everyday. Winter home buyers are less likely to be browsing, since many have been actively searching for properties since spring. While many buyers drop out of the market in the winter months, you may end up selling to that dedicated buyer who refused to give up! Many buyers are frustrated with the bidding wars that occur in the spring, summer or fall and are more ready than ever to move into their new home! Additionally, companies often relocate or transfer...
As home values continue to increase at levels greater than historic norms, some are concerned that we are heading for another crash like the one we experienced ten years ago. We recently explained that the lenient lending standards of the previous decade (which created false demand) no longer exist. But what about prices?
Are prices appreciating at the same rate that they were prior to the crash of 2006-2008? Let’s look at the numbers as reported by Freddie Mac:
The National Association of Realtors (NAR) recently released their 2017 Profile of Home Buyers and Sellers in which they surveyed recent home buyers and sellers about their experiences. An entire section of the profile is dedicated to buyers’ experiences with their real estate agents.
If you are looking to buy in 2018, here are the top 5 benefits of using a real estate agent when buying your dream home as cited by recent buyers:
1. Helped the buyer understand the process – 60%
If you are new to the home buying process, an experienced...
There are many benefits to homeownership. One of the top benefits is protecting yourself from rising rents, by locking in your housing cost for the life of your mortgage.
Don’t Become Trapped
A recent article by Apartment List addressed rising rents by stating:
“Rents are up 2.7% year-over-year at the national level. Year-over-year growth continues to fall between the 2.1% rate from this time last year and the 3.4% growth rate from October 2015.”
The article continues explaining that:
“Despite the seasonal slowdown, ...
photo courtesy of Atomic City
Congratulations to my client on the purchase of her first home in one of Oakland's most revolutionary Net-Zero communities known as Atomic City. I first viewed these homes well over a year ago and knew that it would be a perfect property for a discerning & environmentally conscious client. These micro homes (no larger than 800 SF) feature rainwater collection cisterns, heat pump HVACs, solar panels & solar skylights just to name a few of the green features. For more information on these properties see: Atomic City.
East Bay Modern Real Estate
Congratulations to my first-time buyer clients who just closed escrow on this lovely 2-bedroom, 2-bath, 1,261 square foot condo.
Located in Oakland’s Adams Point neighborhood just a short walk from Lakeside Park and the shores of Lake Merritt. This spacious home features a cozy fireplace, light and bright balcony with tree top views, en-suite master bedroom with large walk-in closet, one car enclosed parking, all within a secured building in a terrific walkable location.
I’m delighted to have helped make their dreams of home ownership a reality!
Call me today at 510-967-6169 and I can do the same for you!
759 Tamarack Dr. San Rafael CA 94903 has sold! We received multiple offers and closed for $200,000 over asking price! I had a wonderful time working with the family on selling the family home. This was an emotional process for the sellers, but they took it step by step and together we got all the right people to prepare the home for sale. The transformation was stunning and the end result at closing was fantastic! I create property websites with high end photography and staging that has wow factor...www.759Tamarack.com
My happy seller gives me 5 stars!
In many markets across the country, the number of buyers searching for their dream homes greatly outnumbers the number of homes for sale. This has led to a competitive marketplace where buyers often need to stand out. One way to show you are serious about buying your dream home is to get pre-qualified or pre-approved for a mortgage before starting your search.
Even if you are in a market that is not as competitive, knowing your budget will give you the confidence of knowing if your dream home is within your reach.