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Homes for Sale in the Dana Estates Neighborhood of Concord

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Dana Estates Market Report – November 2015

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Sunrise on Lynwood Dr.
Looking south on Lynwood Dr. near Beechwood Dr.

The Real Estate Market Continues to chug along in Dana Estates. Here are the latest statistics for our neighborhood at the end of November.

Active Properties
Number of Houses Active  Average List Price Average Days On Market
3 $515,000 14.67

At the date this information was pulled on November 30 there were three active properties in Dana Estates with an average list price of $515,000. This is not surprising given the holiday season.

Pending Properties
Number of Houses Pending  Average List Price Average Days On Market
8  $  499,731 35

There were 8 Pending properties at the end of November. The average days on market had risen to almost 35 days. This could be due to aggressive pricing (see the days on market for sold homes) and to financing considerations.

In October the Consumer Financial Protection Bureau (CFPB) implemented new disclosure standards that may have stretched the closing times for purchases. This may be a partial explanation for some of the longer days on market.

 Sold Properties 
Number of  Houses Sold  Average List Price  Average Sale Price Avg. Sale Price/ Avg. List Price Average Days On Market
3  $  446,500  $  449,167 100.6% 8.33

What is most surprising to me is the average time on market for these sold properties 8.33 days. Looking at the graph below, you can see this is a slight dip from previous months.

Average days on market graph

This graph tells me that homes that are priced accurately are selling quickly. Overpricing a home is one of the major mistakes that agents and owners can make with their home.

Looking to 2016

My crystal ball is as cracked as the next guys, so I can only make an educated guess as to what the future holds.

Seller’s Market. I expect that, barring any major act of terrorism or financial crisis, early 2016 will be a seller’s market. The expected Fed rate hike will likely get some buyers off the sidelines for fear of rising mortgage rates.

For Buyers: It is still a great time to buy real estate with interest rates near historic lows. Making sure you are preapproved for a mortgage from a quality lender is imperative.

For Sellers: The peak sales months have been March through June the past few years. Making sure your property hits the market during those months is imperative. It can take some time to adequately prepare your home for sale, in some cases 2-8 weeks.

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Email me to set a time for a complimentary, no obligation, sales consultation. I will help you identify the items that you need to address prior to the sale of your home.

Based on information from the Contra Costa Association of REALTORS® MLS as of 11/30/2015. All data, including all measurements and calculations of area, is obtained from various sources and has not been, and will not be, verified by broker or MLS. All information should be independently reviewed and verified for accuracy. Properties may or may not be listed by the office/agent presenting the information.

Dana Estates Christmas Lights Contest

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https://www.youtube.com/watch?v=zHsD249_Ulg

Merry Christmas!

I am going to be sponsoring a Christmas Lights Contest for Dana Estates Residents. If you live in Dana Estates, I want to encourage Christmas spirit and invite you to participate in decorating your home. Official Rules are below.

I will be giving away a $100.00 gift card to Home Depot­® to the winner with the best light display in Dana Estates (map). Please enter your name, email and address below to enter. If selected as a finalist, your fellow Dana Estate residents will have the opportunity to vote for their favorite display.

Contest Entry Form

all fields required

We hate spam, too. We will never rent or sell your information.

Official Rules

NO PURCHASE NECESSARY. ALL FEDERAL, STATE, LOCAL, AND MUNICIPAL LAWS APPLY. VOID WHERE PROHIBITED BY LAW.

  1. Eligibility. Open to U.S. residents over 18 years of age that live in Dana Estates Neighborhood (see map) of Concord, CA. Employees of Maclennan Investment Group, Inc. their parents, subsidiaries, affiliates, immediate family members, and members of their household are not eligible.

    map of dana estates neighborhood in Concord, CA
    Map of Dana Estates
  2. Sponsor. The contest is sponsored by Maclennan Investment Group, Inc. whose mailing address is PO Box 2564, Walnut Creek, CA 94595 and phone number is 925.385.8798.
  3. Contest Period. The Contest begins on 12/5/2015 and will be closed to new entries at 11:59pm on 12/19/2015. Entries submitted after the Contest Period will be disqualified.
  4. Agreement to Official Rules. By participating, Participants are agreeing to being bound by these Official Rules and the decisions of the Sponsor.
  5. How to Enter. Participants may enter by completing entry form at http://www.sellingdanaestates.com/2015/12/christmas-lights-contest/. Limited to one entry per household.
  6. Prize Award. Entries will be pared down to a top 3 finalists at Sponsor’s discretion. The Grand Prize winner will be determined by votes received from the general public for the best decorated home as determined by voters. In the event of a tie, the Sponsor will cast the deciding vote. The Sponsor will attempt to notify the winner via telephone or email on or about December 28, 2015.
  7. Prizes. Grand Prize (1) – Gift card valued at $100.00 for Home Depot® will be awarded to the home that receives the most votes.
  8. Odds of Winning. The number of eligible entries received determines the odds of winning.
  9. General Conditions. In the event the Contest is impaired in any way or in the even the Contest is unable to run as planned for any reason, the Sponsor may, in its sole discretion, (a) suspend the Contest or (b) terminate the Contest and award the prize at random from among the entries.
  10. Rights Granted by you: By entering this content you understand that Maclennan Investment Group, Inc., anyone acting on behalf of Maclennan Investment Group, Inc., or its respective licensees, successors and assigns will have the right, where permitted by law, without any further notice, review or consent to print, publish, broadcast, distribute, and use, worldwide in any media now known or hereafter in perpetuity and throughout the World, your entry, including, without limitation, the entry and winner’s name, portrait, picture, voice, likeness, image or statements about the Sweepstakes, and biographical information as news, publicity or information and for trade, advertising, public relations and promotional purposes without any further compensation.
  11. Disputes. Any and all disputes will be resolved in accordance with California law.

Problems with PACE Financing for Single-Family Homes

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Solar Panels on a Home - PACE Loans

What are PACE Loans?

Property Assessed Clean Energy (PACE) program is a means of financing energy-efficient upgrades by attaching the costs of the upgrades to a property’s tax bill.

Under PACE programs, municipalities and counties form special tax districts to help property owners finance energy retrofits by allowing a property owner to place an additional tax assessment on his or her property. Property owners who invest in energy efficiency (EE) measures and small renewable energy (RE) systems repay these assessments over 15 to 25 years via additional annual payments on their property tax bills.

Many homeowners are using these loans to finance solar panel installations, energy-efficient window upgrades, and other projects to improve their home’s energy efficiency.

Which Contra Costa Communities are Participating in the PACE Program?

According to CaliforniaFirst.org, a public/private financing program that allows you to receive upfront funding for EE improvements, the following cities in Contra Costa County are participating in the PACE program:

  • Antioch
  • Brentwood
  • Clayton
  • Concord
  • Danville
  • El Cerrito
  • Lafayette
  • Martinez
  • Oakley
  • Pittsburg
  • Pleasant Hill
  • Richmond
  • San Pablo
  • San Ramon
  • Walnut Creek

What’s Wrong with PACE Financing?

PACE itself isn’t a bad program. However, it may affect the ability of a homeowner to sell a home because of financing.

How? Well, according to the Federal Housing Finance Agency (FHFA), the two biggest purchasers of mortgages on the secondary market, Fannie Mae & Freddie Mac, prohibit the purchase of a mortgage that may be subordinated to a PACE loan. As well they won’t refinance a mortgage with this type of financing in place.

From the FHFA Website:

​In issuing this statement, FHFA wants to make clear to homeowners, lenders, other financial institutions, state officials, and the public that Fannie Mae and Freddie Mac’s policies prohibit the purchase of a mortgage where the property has a first-lien PACE loan attached to it.  This restriction has two potential implications for borrowers.  First, a homeowner with a first-lien PACE loan cannot refinance their existing mortgage with a Fannie Mae or Freddie Mac mortgage.  Second, anyone wanting to buy a home that already has a first-lien PACE loan cannot use a Fannie Mae or Freddie Mac loan for the purchase.  These restrictions may reduce the marketability of the house or require the homeowner to pay off the PACE loan before selling the house.

What does this mean?

Basically the FHFA is saying that because PACE loans go on the tax bill, they have a priority over a loan from Fannie or Freddie. Consequently, should Fannie or Freddie foreclose on a property, they would be responsible for repaying the debt incurred through the PACE program. This is an additional risk that a lender doesn’t want to take on. Consequently, they won’t finance properties with this type of lien on title.

Since most mortgage companies make loans with at least the option, if not the intention, of selling the mortgage to Fannie Mae or Freddie Mac this makes finding financing a home with an outstanding PACE loan very difficult. Lenders don’t want to limit the pool of interested buyers for their mortgages, especially to the two largest buyers of mortgages.

What are the solutions?

What is a homeowner to do if they want to sell their home and they have a PACE loan in place?

1) Don’t sell. Just hold the property until the PACE loan is repaid. This is fine if this is your dream home and you plan on living there through the life of your loan.

2) Find a cash buyer. Cash buyers don’t need a mortgage so it won’t impact them. They may have a slightly higher tax obligation, but the benefits of energy efficiency should offset that.

3) Pay off the PACE loan at the sale. This is the most likely scenario. The PACE loan will likely have to be repaid from the sales proceeds at the time of sale. This means that if you borrow $20,000 to install new windows or a new solar system, likely you will have to repay that $20,000 at the time of the sale of your home during escrow. This will decrease the proceeds you obtain to buy your next home.

4) If you plan to sell in the near future, avoid using a PACE loan to finance upgrades. Until this situation is resolved, it may be best to avoid financing energy-efficient upgrades with this type of loan program.

PACE may be a useful tool to finance energy-efficient upgrades to your home. However, it may hinder your ability to refinance or sell your home.

If you have other real estate related questions, please feel free to call Peter Maclennan with Perception Real Estate.

Additional Reading:

*Photo Credit: Solar Panels by wallheater used by Creative Commons License 2.0

CA Housing Market Graphics

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They say a picture is worth 1,000 words. Well hopefully these graphics below help you make sense of the current real estate market locally and at a statewide level.

Central Contra Costa County Median Home Value

The picture below details the change in the median home value for properties in Central Contra Costa County. The information was pulled from the California Association of Realtors® website. Prices have not yet reached the peak attained in 2006.

Contra Costa County Housing Statistics

Pending Home Sale Index

The CAR.org Pending Home Sale Index shows a year over year increase for California. From this August of last year to August 2015, the number of pending sales has increased. However from July 2015 to August 2015 the number of pending sales decreased statewide by 8.7%.

August Pending Home Sales in California

What This Means

I have been saying this and now I have the proof. The number of homes selling in October, November, and December tend to slow down. I think this is due to school starting and Thanksgiving & Christmas Holidays. Sales begin to ramp up again around the New Year with serious activity in March and April.

For Sellers…

If you are thinking about selling, getting on the market early next year is important! Call 925.385.8798 now to schedule a consultation on what needs to be done to get your home prepped for a successful sale next year.

For Buyers…

Your competition is going to ramp up after the New Year. Beat them to the punch and get out there now. Wouldn’t be great to be in your new home before the holidays? Contact me to get my free Buyer’s Guide.

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Dana Estates Market Report – September 2015

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Homes in Dana Estates
A typical Dana Estates home.

Market activity in the Dana Estates neighborhood has stayed strong. In fact the activity was so strong that it cleared the market of all active listings. (It is a good time to list.) Currently, in October there is one listing active.

The average days on market has crept up for both Pending and Sold homes from our last report in June.

Currently Active Properties
Number of Houses Active  Average List Price Average Days On Market
0 N/A N/A

There were no active properties at the end of September. The market had been cleared of homes for sale. Two properties have come on the market since then, but one is already pending.

Pending Properties
Number of Houses Pending  Average List Price Average Days On Market
8  $  470,343.75 23.8

At the end of September, 8 houses were pending in Dana Estates. The average List Price of those homes was $470,344 and they took an average time of about 24 days to go into contract. The rest of Concord is taking an average of 30 days to go under contract.

 Sold Properties 
Number of  Houses Sold  Average List Price  Average Sale Price Avg. Sale Price/ Avg. List Price Average Days On Market
6  $  484,141.67  $  491,666.67 101.55% 16.2

In September, 6 homes closed escrow. Homes sold for a tad over the list price. The average home took less than 21 days to go into contract.  Meanwhile homes in greater Concord are taking 27 days to go under contract.

We are still experiencing a brisk market. If I can be of any service or answer your real estate questions, please do not hesitate to call me at (925) 385-8798.

Based on information from the Contra Costa Association of REALTORS® MLS as of 10/5/2015. All data, including all measurements and calculations of area, is obtained from various sources and has not been, and will not be, verified by broker or MLS. All information should be independently reviewed and verified for accuracy. Properties may or may not be listed by the office/agent presenting the information.

Concord Naval Weapons Station – Update 9/29/2015

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This week the City of Concord was set to make a decision on the chosen developer for the Concord Naval Weapons Station (CNWS). That vote has been delayed while the City investigates a possible violation of the “No Lobbying” clause of the contract award.

The choice had come down to two possible developers, Catellus and Lennar Urban. Catellus alleged that Lennar Urban had improperly lobbied a Concord City Council Member. Catellus Letter to City Manager

You can read more about the issues from these sources:

It looks like it may be some time before a resolution is reached on the chosen developer.

To read more about the plans for the CNWS click here.

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