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East Bay Real Estate Blog

East Bay Modern Real Estate blog about the real estate market in Alameda & Contra Costa County. Commentary on modern & mid-century modern homes & lofts in San Francisco's East Bay.


Mortgage Interest Rates Have Begun to Level Off

Wed, 11 Apr 2018 12:00:00 -0700

(image) Whether you are a buyer searching for your first home, or a homeowner looking to move up to your next home, you should pay attention to where mortgage interest rates are heading. Over the course of 2018, according to Freddie Macrsquo;s Primary Mortgage Market Survey, rates have increased from 3.95 in the first week of January to 4.40 in the first week of April. At first glance, the difference between these numbers in such a short amount of time could be concerning, but if we look at the graph below, wersquo;ll see that rates have already started to level off and return to the mark set in February. (image) This is great news for anyone looking to buy a home this spring The spring is always one of the busiest seasons for home buying, and with rates increasing even more, buyers have come off the fence to lock in great rates This is still great advice as the experts believe that rates will continue to rise throughout the year. Every month, Freddie Mac, Fannie Mae, the Mortgage Bankers Association and the National Association of Realtors release their projections for where they believe mortgage rates will be in the coming months. If we take the average of what each of the four organizations is predicting for the second quarter, rates are expected to rise to about 4.48 by June. That average climbs to 4.73 by the end of this year. So, what does this mean? Waiting until the end of the year to buy, with rates still projected to increase, will end up costing you more money on your monthly mortgage payment. For every $250,000 you need to borrow to purchase your dream home, you will spend $49.21 more per month, $590.52 per year, and over $17,700 by the end of your 30-year mortgage. And thatrsquo;s just the impact of your interest rate going up Bottom Line If you are ready and willing to purchase a home, find out if yoursquo;re able to. Letrsquo;s get together to evaluate your needs and help you with next steps Contact us for experienced representation when buying or selling a home in the East Bay.

99 of Experts Agree: Home Prices Will Increase

Thu, 29 Mar 2018 15:51:00 -0700

(image) Some believe that the combined effects of the new tax code and rising mortgage rates will have an adverse impact on residential real estate prices in 2018. However, the clear majority of recently surveyed housing experts believe that home values will continue to rise this year. What is the Home Price Expectation Survey? Each quarter, Pulsenomics surveys a nationwide panel of economists, real estate experts and investment amp; market strategists. Those surveyed include experts such as: Daniel Bachman, Senior Manager, U.S. Economics at Deloitte Services, LP Kathy Bostjancic, Head of U.S. Macro Investors Service at Oxford Economics David Downs, Real Estate Finance Professor at VCU Edward Pinto, Resident Fellow at American Enterprise Institute Albert Saiz, Director at MIT Center for Real Estate Where do these experts see home values headed in 2018? Here is a breakdown of where they see home values twelve months from now: 21.6 believe prices will appreciate by 6 or more 71.6 believe prices will appreciate between 3 and 5.99 5.7 believe prices will appreciate between 0 and 2.99 Only 1.1 believe prices will depreciate Bottom Line Almost ninety-nine percent of the top experts studying residential real estate believe that prices will appreciate this year, and over 93 believe home values will appreciate by at least 3. Contact the East Bay Modern Team, your East Bay real estate connection, for assistance buying or selling a home in either Alameda or Contra Costa County.

39 Sheridan Rd Oakalnd - JUST LISTED

Fri, 23 Mar 2018 14:16:00 -0700

(image) (image) (image) (image) 4+ bedrooms and 4.5 bathroom over 3,000 sq ft elegant and serene home in Upper Rockridge is for sale nownbsp;nbsp; Please come by to see this fantastic home with killer bay views this Sunday (March 25) from 2 to 4:30 For more info?nbsp; Check out:

118 Bayside Ct. Marina Bay - Just Listed

Thu, 22 Mar 2018 21:06:00 -0700

(image) (image) (image) 118 Bayside Court is a 1 BD/1 BA + Loft condominium that has been tastefully remodeled featuring French Oak wood flooring, a new kitchen with quartz counters and 3 x 12 artisan subway tile backsplash, Energy Star appliances, tiled bath with Toto toilet, a wood burning fireplace, in-unit laundry, and a large patio with extra storage. The upstairs loft can be used as an additional bedroom/office and the additional windows allow for a light filled interior. This upstairs unit sits privately across from the community pond and comes with one deeded covered parking space.nbsp;Per HOA, the deck willnbsp;be resurfaced in April amp; new windows will be installed throughout. The Marina Bay community is a true resort style enclave located directly adjacent to the waterfront and the Marina Bay Trail. This well-secured, gated community features two swimming pools and spas, a well appointed gym, a club house and library, tennis courts, a community vegetable garden and numerous ponds and green space throughout.nbsp; Located inside of Richmonds protected harbor, Marina Bay offers some of the Bay Areas most idyllic and tranquil oceanfront settings where outdoor activities abound. Stroll through the numerous local parks, bike along the Bay Trail, kite surf, kayak, sail, or simply enjoy views of the San Francisco skyline at one of the local beaches. Optimally located just minutes from both Richmond and the Bay Bridge, makes this an ideal commuter location. Marina Bay is close to 580/80 Oakland, Berkeley, Marin, and BART and the San Francisco Ferry is scheduled to begin service this year For more photos and information see: Ary AssadiEast Bay Modern Real

Freddie Mac: Rising Mortgage Rates DO NOT Lead to Falling Home Prices

Thu, 22 Mar 2018 12:00:00 -0700

Recently, Freddie Mac published an Insight Report titled Nowhere to go but up? How increasing mortgage rates could affect housing. The report focused on the impact the projected rise in mortgage rates might have on the housing market this year. Many believe that an increase in mortgage rates will cause a slowdown in purchases which would, in turn, lead to a fall in house values. Ultimately, however, prices are determined by supply and demand and while rising mortgage rates may slow demand, they also affect supply. From the report: ldquo;For current homeowners, the decision to buy a new home is typically linked to their decision to sell their current homehellip; Because of this link, the financing costs of the existing mortgage are part of the homeownerrsquo;s decision of whether and when to move. Once financing costs for a new mortgage rise above the rate borrowers are paying for their current mortgage, borrowers would have to give up below-market financing to sell their home. Instead, they may choose to delay both the sale of their existing home and the purchase of a new home to maintain the advantageous financing.rdquo; The Freddie Mac report, in acknowledging this situation, concluded that prices are not adversely impacted by higher mortgage rates. They explained: ldquo;While there is a drop in the demand for homes, there is an associated drop in the supply of homes from the link between the selling and buying decisions. As both supply and demand move together in this way they have offsetting effects on pricemdash;lower demand decreases price and lower supply increases price. They went on to reveal that the Freddie Mac National House Price Indexishellip; ldquo;hellip;unresponsive to movements in interest rates. In the current housing market, the driving force behind the increase in prices is a low supply of both new and existing homes combined with historically low rates. As mortgage rates increase, the demand for home purchases will likely remain strong relative to the constrained supply and continue to put upward pressure on home prices.rdquo; The following graph, based on data from the report, reveals what happened to home prices the last six times mortgage rates rose by at least 1. (image) Bottom Line Whether you are a move-up buyer or first-time buyer, waiting to purchase your next home based on the belief that prices will fall because of rising mortgage rates makes no sense. Contact the East Bay Modern Team, your East Bay real estate connection, for assistance buying or selling a home in either Alameda or Contra Costa County.

478 Diller Street, Alameda - Just Listed

Tue, 20 Mar 2018 05:02:00 -0700

2 Bed + Den | 3 Bath | 1,763 SF | $975,000 Symmetry @ Alameda Landing - Alameda, CA (image) (image) (image) (image) For more information visit

Dreaming of a Luxury Home? Nows the Time

Mon, 19 Mar 2018 12:00:00 -0700

(image) If your house no longer fits your needs and you are planning on buying a luxury home, now is a great time to do so Recently, the Institute for Luxury Home Marketing released its Luxury Market Report which showed that in todayrsquo;s premium home market, buyers are in control. The inventory of homes for sale in the luxury market far exceeds the number of people searching to purchase these properties in many areas of the country. This means that homes are often staying on the market longer or can be found at a discount. Those who have a starter or trade-up home to sell will find buyers competing, and often entering bidding wars, to be able to call their house their new home. The sale of your starter or trade-up house will help you come up with a larger down payment for your new luxury home. Even a 5 down payment on a million-dollar home is $50,000. But not all who are buying luxury properties have a home to sell first. A recent Bloomberg article gave some insight into what many millennials are choosing to do: ldquo;A new generation of affluent homebuyers powered by a surge in inherited wealth is driving the luxury-home market, demanding larger spaces and fancier finishes, according to a report heralding lsquo;the rise of the new aristocracy.rsquo;rdquo; Bottom Line The best time to sell anything is when demand is high, and supply is low. If you are currently in a starter or trade-up house that no longer fits your needs and you are looking to step into a luxury home, nowrsquo;s the time to list your house for sale and make your dreams come true. Contact the East Bay Modern Team, your East Bay real estate connection, for assistance buying or selling a home in either Alameda or Contra Costa County.

4 Reasons Spring is a Great Time to Buy a Home

Mon, 12 Mar 2018 12:00:00 -0700

(image) Here are four great reasons to consider buying a home today instead of waiting. Prices Will Continue to Rise CoreLogicrsquo;s latest Home Price Index reports that home prices have appreciated by 6.6 over the last 12 months. The same report predicts that prices will continue to increase at a rate of 4.3 over the next year. The bottom in home prices has come and gone. Home values will continue to appreciate for years. Waiting no longer makes sense. Mortgage Interest Rates Are Projected to Increase Freddie Macrsquo;s Primary Mortgage Market Survey shows that interest rates for a 30-year mortgage hovered close to 4.0 in 2017. Most experts predict that rates will rise over the next 12 months. The Mortgage Bankers Association, Fannie Mae, Freddie Mac and the National Association of Realtors are in unison, projecting that rates will increase by nearly a full percentage point by this time next year. An increase in rates will impact YOUR monthly mortgage payment. A year from now, your housing expense will increase if a mortgage is necessary to buy your next home. Either Way, You Are Paying a Mortgage There are some renters who have not yet purchased a home because they are uncomfortable taking on the obligation of a mortgage. Everyone should realize that unless you are living with your parents rent-free, you are paying a mortgage ndash; either yours or your landlordrsquo;s. As an owner, your mortgage payment is a form of lsquo;forced savingsrsquo; that allows you to have equity in your home that you can tap into later in life. As a renter, you guarantee your landlord is the person with that equity. Are you ready to put your housing cost to work for you? Itrsquo;s Time to Move on with Your Life The lsquo;costrsquo; of a home is determined by two major components: the price of the home and the current mortgage rate. It appears that both are on the rise. But what if they werenrsquo;t? Would you wait? Look at the actual reason you are buying and decide if it is worth waiting. Whether you want to have a great place for your children to grow up, you want your family to be safer, or you just want to have control over renovations, maybe now is the time to buy. If the right thing for you and your family is to purchase a home this year, buying sooner rather than later could lead to substantial savings. Contact us for experienced representation when buying or selling a home in the East Bay.

Home Prices: The Difference 5 Years Makes

Wed, 07 Mar 2018 13:35:00 -0800

(image) The economists at CoreLogic recently released a special report entitled, Evaluating the Housing Market Since the Great Recession. The goal of the report was to look at economic recovery since the Great Recession of December 2007 through June 2009. One of the key indicators used in the report to determine the health of the housing market was home price appreciation. CoreLogic focused on appreciation from December 2012 to December 2017 to show how prices over the last five years have fared. Frank Nothaft, Chief Economist at CoreLogic, commented on the importance of breaking out the data by state, ldquo;Homeowners in the United States experienced a run-up in prices from the early 2000s to 2006, and then saw the trend reverse with steady declines through 2011. After finally reaching bottom in 2011, home prices began a slow rise back to where we are now. Greater demand and lower supply ndash; as well as booming job markets ndash; have given some of the hardest-hit housing markets a boost in home prices. Yet, many are still not back to pre-crash levels.rdquo; The map below was created to show the 5-year appreciation from December 2012 ndash; December 2017 by state. (image) Nationally, the cumulative appreciation over the five-year period was 37.4, with a high of 66 in Nevada, and a modest increase of 5 in Connecticut. Where were prices expected to go? Every quarter, Pulsenomics surveys a nationwide panel of over 100 economists, real estate experts, and investment and market strategists and asks them to project how residential home prices will appreciate over the next five years for their Home Price Expectation Survey (HPES). According to the December 2012 survey results, national homes prices were projected to increase cumulatively by 23.1 by December 2017. The bulls of the group predicted home prices to rise by 33.6, while the more cautious bears predicted an appreciation of 11.2. Where are prices headed in the next 5 years? Data from the most recent HPES shows that home prices are expected to increase by 18.2 over the next 5 years. The bulls of the group predict home prices to rise by 27.4, while the more cautious bears predict an appreciation of 8.3. Bottom Line Every day, thousands of homeowners regain positive equity in their homes. Some homeowners are now experiencing values even higher than before the Great Recession. If yoursquo;re wondering if you have enough equity to sell your house and move on to your dream home, letrsquo;s get together to discuss conditions in our neighborhood Contact East Bay Modern Real Estate, experienced East Bay Realtors, for help purchasing or selling a home in San Franciscos East Bay.

Is Now a Good Time to Rent?

Tue, 27 Feb 2018 12:00:00 -0800

(image) People often ask if now is a good time to buy a home, but nobody ever asks when itrsquo;s a good time to rent. Regardless, we want to make certain that everyone understands that today is NOT a good time to rent. The Census Bureau recently released their 2017 fourth quarter median rent numbers. Here is a graph showing rent increases from 1988 until today: (image) As you can see, rents have steadily increased and are showing no signs of slowing down. If you are faced with making the decision of whether or not you should renew your lease, you might be pleasantly surprised at your ability to buy a home of your own instead. Bottom Line One way to protect yourself from rising rents is to lock in your housing expense by buying a home. If you are ready and willing to buy, letrsquo;s meet to determine if you are able to today nbsp; Contact us for experienced representation when buying or selling a home in the East Bay. nbsp;