Don’t hold your breath for another recession

According to an Inman.com article, Kevin Thorpe (Global Chief Economist at Cushman & Wakefield) says we are going to have a very long economic expansion.

At the National Association of Real Estate Editors conference, Thorpe said, “The U.S. will not be going into recessions anytime soon. Recessions don’t just happen. First, we need to see imbalances somewhere in the economy — too much credit, too much exuberance in any particular sector.”

A frequent speaker in the local real estate arena, Carol Rodini and some Bay Area economists agree that some changes Donald Trump’s Republican cabinet will make – redoing the tax code, trying to replace Obamacare, etc. – will be good for the economy.

Carol recently noted the top 10 tech companies in Silicon Valley are sitting on about $3 trillion in cash between their domestic and foreign accounts. Those companies grew about 7 percent last year and they believe that will continue this year.

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So, if and when we end up in a recession, she believes it will be about a 4 percent dip. The Bay Area, because of Silicon Valley, will not feel it like the rest of the nation. For those buyers who are hoping for a dip so housing will be more affordable, you might want to buy now, before interest rates go up. For sellers: now and the near future is a good time to list!

The smallest decisions can make your house more valuable

When selling a home, oftentimes the goal is to maximize financial return on the deal. Everybody wants to make as much as they can off their home sale, and even the slightest changes can increase what a home sells for.

Take this article on Inman.com for example. It’s about how homes with blue bathrooms sell for $5,400 more on average than others, according to a Zillow study. Crazy, right? Literally just changing the color you’ve painted a wal or two can add thousands of dollars to your wallet!

The article goes on to list a couple other color choices that can add or subtract from the sale price; for example, grey (and other neutral) exteriors sel die about $3,500 more than homes with other colors.

It really goes to show that small aesthetic decisions can play a huge role in netting you some extra zeroes on your home sale. It’s always wise to cater to the current trends when painting, decorating and remodeling your home to go on market – even if it means just a couple grand more in your pocket.

I try to stay tuned in to what’s popular so I can help you make those decisions. I am committed to maximizing your value as a seller, and on the flip side, getting you the best deal possible as a buyer. Give me a call if you’re interested in a real estate transaction!

New review from a happy customer!

One of the greatest joys of working in real estate is sharing in the excitement (and relief!) of buying or selling a home with a client.

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Oftentimes, I become close with my clients just by virtue of developing a personal connection while I vet houses for them. Throughout the process, we usually text, call, email and meet in person dozens of times. So, when we succeed together and find the perfect buyer or the perfect property, it’s extra special for me to get a great review!

For example, I recently helped my client and friend Mckenzie with a transaction, and here’s what she wrote for me:

Kristin is amazing-she went above and beyond as my real estate agent; as a first-time homebuyer, I am SO lucky that I found her!! I found Kristin on Zillow, I was interested in a specific property and sent an email. She followed up and was immediately so helpful over the phone. As I said, I am a first time home buyer, and she gave me lots of advice. She met with me in person to go through the home buying process (like a crash course) which was VERY helpful, and something she didn’t have to do, as I wasn’t even looking at properties yet. She went out of her way, she knows her stuff, she is quick, gives good advice that isn’t biased, and made sure through the whole process I was finding what I wanted. She has a great reputation with other agents in the area and has lots of people she works with that she recommends in terms of home repairs etc. Even after escrow closed, she is still talking with me making sure I have what I need, helping me find handymen and other things I hadn’t even thought of. On top of how capable she is-she is also so fun and has personality plus! It was actually an enjoyable process for me (who would have thought!?!?) I have already been recommending Kristin to friends looking to buy in the area, and if I ever buy/sell again, will definitely be contacting Kristin to be my agent!

What a sweet note from Mckenzie! I loved working with her. If you want to be like Mckenzie, and be my next satisfied client, please give me a call or shoot me an email!

4040 Siino Ave, listed with views of Mt. Diablo.

Tired of renting? Looking for a place to store all your toys? Welcome home to 4040 Siino Avenue in Concord!

This 2-bedroom, 1-bathroom, 1,102-square foot home on a nearly quarter-acre (.23 acres) lot, has refinished hardwood floors, an updated bathroom and gorgeous, cozy bedrooms.

Relax on the covered patio, take in a beautiful view of Mt. Diablo and enjoy a perfect getaway that you get to call home. It’s situated on a quiet street, has a large detached garage with three bays and an extra spot for a boat or RV, and even a separate area for a kennel and dog run.

Everything you could ever want, all in the heart of the East Bay. And it’s offered at just $470,000 right now! We’ll have this awesome home available for viewing at our Open House on Sunday, June 25th from 1-4 p.m. Come stop by!

Owners have the largest mortgages in history!

It’s no secret that the housing market has been unbalanced over the past few years. Prices have been rising, and with them, so have average home loans.

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According to The Mortgage Bankers Association (MBA), the average home loan size is the largest its been in the history of its survey, which began in 1990.

Additionally, the median mortgage size was only about 3.3 times the median annual income in 1990 – now, it’s more than 5 times as big. This is likely due to the increase in housing prices, buyers getting bigger homes and lower interest rates over the years.

Here’s a look at some housing market characteristics for select years.

Housing market data points
Courtesy Realtor.com (link in text above)

According to Mike Ervin of Supreme Lending, people are just waiting and waiting for mortgage rates to go down. People who are using securitizers like Fannie Mae and Freddie Mac have to wait until the Fed buys up more mortgage bonds so that rates will go down. It is unknown if that will happen, but rates have dropped in 2017.

Multiple factors can affect the bond and mortgage markets. The most recent major event was the Trump election and presidency, which saw a large immediate increase in mortgage rates, which have since rebounded, even with the Fed raising rates.

In California, we are in the wealth-building business and real estate in the Bay Area is going to be a good investment for years to come. I am here to advise, provide insight and help you build wealth through real estate.

California getting snotty about their potties

Did you know California has put a new law in place that went into effect on Jan. 1 of this year? It’s causing quite a commode-tion.
It basically says that any home built after 1994 must flush away some money meeting the requirement of having water-conserving plumbing (WCP) fixtures in their bathrooms, whether it’s going on the market or not. What a stinker!
Additionally, the law calls for installation of WCP fixtures – and wiping away the old one – when the existing plumbing fixtures use more than the following:
  • Any toilet manufactured to use more than 1.6 gallons of water per flush.
  • Any urinal manufactured to use more than one gallon of water per flush.
  • Any shower head manufactured to have a flow capacity of more than 2.5 gallons of water per minute.
  • Any interior faucet that emits more than 2.2 gallons of water per minute.

Now that the drought is over, I wonder if the regulations might go down the drain and on the sale side nobody is enforcing it. But either way, a very important question remains: who the heck has a urinal in their house?

Following Up: Honeybees!

A few weeks back, we did the Parkmead Garden Tour. I spoke to one resident who is a honeybee keeper. In addition to the Beekeeper who was there to speak, I learned a lot about honeybees.

For example, did you know that a honeybee has to travel more than 55,000 miles and has to visit about 2 million flowers just to produce one pound of honey? Or that they can fly 15 miles per hour? 

Beekeeping is a hobby that seems to be picking up popularity, especially around the Bay Area. Much like composting, its attraction is that it’s a sustainable, healthy way to provide for oneself and the community around us. It’s been common knowledge for years that the bee population is quickly dying off, and their extinction would have a horrific effect on the planet’s ecosystem.

So, I also snagged some basic information on beekeeping resources around the Bay Area! If you want to learn more about the Mt. Diablo Beekeepers Association (MDBA), visit this link! If you’re interested in starting beekeeping, you can find supplies at MarElla Honey B’s in Concord, Biofuel Oasis/Urban Farm Store in Berkeley, and many others around the Bay Area.

If you’d simply like to attract more bees to your garden to help increase the population and improve your pollination, plant flowers that they like! For example, blackberries and raspberries, fireweed, lavender, oregano, rosemary and sunflower are a few that really attract heavy pollination.  

Here are a few more fun facts for you to finish out our blog on honeybees:

  • A typical beehive makes more than 400 lbs of honey per year
  • A honeybee will flap its wings about 11,400 times per minute, creating the familiar “buzz” sound
  • Honeybees are responsible for approximately 80 percent of all fruit, vegetable and seed crops in the U.S.

So when you see a bee nearby, don’t run or swat at it, but think of the good they do and then briskly walk away!

The VA loan is the best loan going!

With Memorial Day around the corner and a time to honor and remember all the brave heroes who served to hold our flag high, I thought it would be a great time to mention the benefits of a VA loan and what is currently happening in that arena.

There’s a bill in Congress that eliminates loan limits for the VA. The current VA limit for Contra Costa is $636,150, so eliminating the limit will help our vets who qualify for more to still be able to purchase with their VA benefits. I specialize in working with VA buyers and sellers, and have a strong passion for it given my family’s history in service.

There is also a rebate available of up to $2,500 in Contra Costa County for qualified buyers with approved lenders. I can connect you with a qualified lender. The VA loan is the best loan around  –  low rates, nothing down, 25% of the loan is backed by the federal government, lowest loan foreclosure rate, plus many additional changes over the years to help make a VA offer be accepted such as the seller no longer has to pay for the pest inspection.

Did you also know, you are eligible for a VA loan after 90 days active duty in wartime (we are still considered in wartime which started with the Gulf War)? You are eligible after two years of service if no longer on active duty  and six years of service in the National Guard or Reserves.

If you’re a veteran looking to buy or sell in the Bay Area or know somebody who is, please give me a call so we can get the ball rolling on helping you land a rebate and get your VA loan accepted!

Pending home sales are down in CA – what does it mean?

According to the California Association of Realtors, pending home sales have dialed back and marked the weakest February in three years.

Courtesy mcar.com.

Low housing inventory, eroding affordability and rising interest rates made pending sales on a year-over-year basis for the month of February suffer after a good start to the year in closed escrow sales. Also, sellers simply aren’t selling.

They did see elevated market activity, but the Bay Area pending sales specifically were down year-to-year for the fifth straight month. According to the release, the Bay Area has been plagued by a shortage of homes on the market and poor affordability.

We have seen an increase in listings starting in April, but with pent-up demand, buyers are getting frustrated losing out in multiple-offer scenarios and with ever-increasing prices.

If you want to know more about the market, give me a call!

Opportunity Knocks?

At 55 Crest Ave. in Alamo, you might see a “best of both worlds” type home. It’s a 0.84 acre lot, the land is appealing, and because of that, they’re listing at $795,000.

But if you’re waiting to move into the 21st century, this may not be the place for you. Believe it or not, this run-down old place had almost 50 disclosure packages requested because of its location and potential.

I personally know a few people who are interested in the renovation project, with the knowledge that a remodeled home in that area may sell for much more later on.

Of course not all buyers who request a disclosure package will write, but I suspect they got at least 15 offers, the opportunity is too great even if the property sells for one million, it is surrounded by $1,500,000-$2,000,000+ homes.

There was a combination of speculators looking to flip it and disgruntled buyers who have lost out on homes and think it might be worth building their dream home. It just goes to show that the Bay Area real estate market is crazy red hot right now – it is a seller’s market.

If you are thinking of buying in or around Walnut Creek, give me a call! I’d love to help you.