For the 24 years I have lived in Walnut Creek, there have been no public 4th of July fireworks displays. According to the Contra Costa County Fire Protection District, fireworks are illegal in the county, so good luck trying to put on your own show!
However, you can buy fireworks in Alameda County – Dublin is not that far away – but with the drought, the law is probably a good thing to abide by.
Luckily, some cities close by are shooting off fireworks, so grab a spot on a hill, go to the location itself, or maybe a friend has a bird’s eye view from their house:
Antioch – Contra Costa Fairgrounds (Dusk)
Benicia – Benicia City Park (9:00 p.m.)
Berkeley – Berkeley Marina (9:30 p.m.)
Concord – Mt. Diablo High School & Todos Santos Plaza (9:00 p.m.)
Livermore – Downtown (Dusk)
Martinez – Waterfront (9:30 p.m.)
Moraga – Moraga Country Club (Dusk)
Pittsburg – Pittsburg Marina (Dusk)
Pleasant Hill – College Park High School & Pleasant Hill Country Club (9:10 p.m.)
Pleasanton – Alameda County Fairgrounds (9:30 p.m.)
Carol said that we (in the East Bay) are usually 6-8 months behind the other side of the Bay – meaning San Francisco and the Peninsula. What is currently happening there (and we may see this in the later part of the year) is that the media is reporting a growth of inventory. This type of news has adverse effects on real estate. In reality, there are two types of real estate: desirable and non-desirable. The media bundles them together, but Carol pointed out how they are different.
Prices have gone down on high-end properties, and buyers are getting hesitant and willing to stand by and watch what happens. For example, a house in San Francisco that was listed for $1.5 million sent out 30 disclosure packages. One buyer submitted a pre-emptive offer of $1.75 million all cash and the seller didn’t take it because they thought they could get more and wanted to market it a bit longer. On the offer due date, none came in. So they went back to the cash buyer and that person said no.
A few takeaways:
1. You can’t be over-priced in this market.
2. Buyers in the city are no longer playing the competition game.
3. Sellers need to be aggressive with their pricing, by pricing it slightly under market. The reason? Millennials buy with their stock options. And with the market volatility and changes, this is making them a bit more hesitant.
The East Bay will have a great spring. We traditionally see a bit of a slow-down in the summer, and depending on what the stock market does, we may follow in the steps of the city. Our average price point is much lower and we are seeing a bunch of first-time home buyers that can’t afford San Francisco or the Peninsula who are looking at the East Bay – at least until the prices drop on the other side of the Bay.
The idea of saving enough money for a 20 percent down payment to buy a home in the Bay Area can be a daunting thought, especially because our average prices are so much higher than the rest of the nation. How can 20 or 30-something’s save that much money and still afford rent and basic living needs?
I posed this question to my favorite lender Jay Voorhees, Co-Owner at JVM Lending.
“Buyers often need less money than they think to buy a home, as long as their loan amount is lower than the conventional and FHA maximum of $625,500. Buyers can either take advantage of FHA financing and buy with as little as 3.5 percent of the purchase price for a down payment, or with conventional financing, purchase with as little as 5 percent down. Both options above, however, require mortgage insurance, or an additional fee that borrowers have to pay every month when their loan-to-value ratio is over 80 percent.”
What does that mean from a real estate perspective? With interest rates and inventory low, it means you will probably be competing for a property. The good news is most buyers will have similar financing; however if one has 20 percent down or all cash, that may be the deciding factor on whom the seller selects.
What can buyers do to avoid mortgage insurance? According to Jay, put down 20 percent, or 10 percent down and get a second mortgage on top of their first mortgage (“80/10/10” financing). This option requires excellent credit and very low “debt ratios.” Jay says that many borrowers are forced to use FHA financing no matter what because FHA is much more flexible with respect to credit and debt ratios.
Jay had a couple final thoughts on the topic:
“Buyers can also get gifts from relatives to use for down payment funds or closing costs. Buyers cannot use borrowed funds for a down payment. Whoever provides “gift funds” will have to provide a signed “gift letter” attesting to the fact that the funds are in fact a gift.”
“The total closing costs for a purchase can range from $6,000 to $18,000, depending on the type of loan, the loan amount, and the place of purchase (some cities have high “transfer taxes”). If gift funds are not available and buyers are tight on cash, they can, however, ask their lender to increase their interest rate in exchange for a credit to cover some or all of their closing costs.”
If you have specific questions or would like to discuss your options and want to speak with JVM Lending, call them at (925) 855-4491 and ask for Jay, Heejin (both owners), or one of their talented associates. They are in downtown Walnut Creek at 1850 Mt. Diablo Blvd., Suite 530. Give them a call and and tell them you saw this blog on WalnutCreekLifestyle.
On January 11, I attended a speech by Carol Rodoni about the Bay Area real estate market with an emphasis on the East Bay. My blogs are going to spread out over a handful of posts to give bite-size tidbits of her speech, which I always find very entertaining:
Carol started off by saying that 2015 was an extraordinary year in real estate and outlining a few global situations to keep in mind that may have an impact on our 2016 real estate market.
China devaluing their currency:
Carol sees this move as a growing pain and a way to try to support their economy. Every Nov. 11, China celebrates “Singles Day,” the biggest on-line shopping day of the year. Nov. 11, written out as “11/11,” represents four singles, which is also referred to as “Double Eleven.” This past November, Alibaba broke its own record and increased sales by 60 percent, or $14.3 billion. By comparison, American sales on Cyber Monday were $1.35 billion. I don’t think we need to worry about China.
Middle East and the price of oil:
Oil now costs less than $27 per barrel and is still dropping, when only a few years ago it was $109 per barrel. Saudia Arabia has refused to cut down production, perhaps in the hopes of pushing out a few competitors. Saudi Arabia has a tremendous advantage, as their technology to extract oil is inexpensive compared to other countries; this includes the U.S., where fracking has become a provider of jobs in the Midwest. Saudi Arabia may be okay with lowering prices to eliminate smaller competition, like Iran, now that oil sanctions have been lifted.
As a result of how chaotic the world is, Carol doesn’t believe the Fed will raise rates more than twice in the next year. She said she believes the next rate hike won’t happen until June, and felt the hike in December was at the wrong time. All this still makes for a great time to purchase or refinance as rates are still hovering below 4%.
The Bay area is leading the nation in innovation, and not just in the tech sector. A new industry on the rise in the East Bay is the alcoholic beverage market!
With the craft brewing industry on the rise, many local entrepreneurs have hopped (get it?) on the bandwagon, starting many new breweries in Oakland, San Francisco, and even Concord! Many of these East Bay brewers are really pushing the envelope by making unusual beers, like sours, rare varietals, and other creative concoctions.
One such brewery in the sour beer market is Rare Barrel in Berkeley. They go the extra mile by aging their beer in oak barrels for about a year to develop the lovely tart flavors in their brews. Some other notable East Bay breweries are Linden Street Brewery and Pacific Coast Brewery in Oakland, Jupiter and Pyramid Brewery in Berkeley, and EJ Phair in Concord. Don’t sleep on 21st Amendment Brewery, famous for their Hell or High Watermelon beer, which just opened a huge new brewery in San Leandro. Or the popular Calicraft Brewing Co. based right here in Walnut Creek which is my favorite; I love their Buzzerkeley champagne beer.
Beer is not the only game in town, however. The wine and liquor industries in the area have also been growing in popularity. St. George Sprits in Alameda has become well-known for their brand, and Hangar One vodka is named after the old World War II-era hangar where the distillery is based. Although they recently sold the brand to be produced next door, the distillery is excited to have more space to focus on new experiments in distillation. Some of their more creative liquors include Green Chili Vodka, Absinthe Verde (I know this one from personal experience and it was not a good one), Agricole Rum, and several Fruit Brandies. They have a great guided tour for $15, which includes a tasting of six spirits! They even have a small outdoor seating area where you can hang out with a drink after your tour and check out the San Francisco skyline from the other side of the Bay.
Many wineries have also begun to spring up throughout the East Bay. Although this may seem like a new development, the East Bay, especially the Walnut Creek area, was actually one of the main wine-grape growing regions until prohibition in 1920. One such winery making a revival in the area is Urban Legend Cellars in Oakland. They source grapes from other local regions, and use various blending and oaking techniques to produce unique and delicious wines.
Walnut Creek has also been put back on the map with Shadowbrook Winery. This vineyard grows Cabernet Sauvignon, Merlot, Cabernet Franc, and Syrah, right on the foothills of Mount Diablo. Mark Lavezzoli, the Winemaker there, combines traditional and innovative techniques to create some very tasty vino. The entire team there is very excited about Walnut Creek’s potential to produce a first-class wine.
With so many great beverages to try right here in the East Bay, it’s hard to find a reason to leave and another great reason to own a home in this amazing area.
Have you been to any of these places? Please share your thoughts – we would love to hear from you!