Selling Dana Estates

Homes for Sale in the Dana Estates Neighborhood of Concord

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Historic Low Rates… Bad for Homebuyers?

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I enjoy reading smart people and Jay Voorhees at JVM Lending is a smart guy. He writes this:

… Here is my point: efficient markets theory applies to housing too, which means that subsidies in any form will usually drive up the price of housing.

And very low rates fostered by the gov’t policy are a subsidy of sorts, and they will push up the price of housing – again.

In the short run, lower rates are definitely a gift for most borrowers, but over the long run, housing prices usually adjust to reflect the impact of lower rates.

We are seeing a huge surge in demand for housing now, driven by pent up demand from buyers who were on the sidelines b/c of COVID-19 and by demographics overall.

But another reason demand is so strong is low rates, and we are already seeing the results.

July Bidding Wars Jumped 5x From 2019, according to this article from National Mortgage News.

Why Low Rates Are BAD For Homebuyers

Bottom Line

Demand for housing is strong in the East Bay. Some clients are moving out of denser areas and moving to our area for outdoor space, a bigger house, and for better schooling options in a Covid-impacted world.

For Buyers

If you are thinking of buying a home, be prepared to write a strong offer and to face competition. Make sure you have your financing lined up and that you are working with an experienced real estate agent.

For Sellers

With high demand and low rates, buyers are competing for well priced homes. It is a great time to sell your Dana Estates home!

Peter Maclennan
Broker
DRE#: 01801793
925-385-8798

A Great Time to Buy or Refinance???!!! – Dana Estates Real Estate

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According to the article today on January 30, 2020 Mortgage Rates Basically at Best Levels Since 2016:

For top tier scenarios, the average lender is now offering rates not seen since 2016, with the slight exception of a few hours during the beginning of September 2019….  In other words, today is tied for the lowest levels in more than 3 years.

Matthew Graham

Time to Buy or Refinance

The graphic below indicates how purchasing power decreases as rates increase.

Graphic depicting the decreasing purchasing power as interest rates rise.

The inverse of the graphic is also true. As mortgage rates decrease, buyers can afford a higher priced home. Current owners can lower their payments.

This could be an opportunity to move up in home or to lock in a low rate mortgage. If you are interested in seeing how you could benefit, give me a call at 925-385-8798.

Millennials’ Scary Strategy to Afford Down Payments

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If you take a look at national home values over the last decade, you will not be shocked that few millennials are able to afford down payments in recent years. Yet, homes continue to sell, and first-time homebuyers are scrambling to make down payments by whatever means possible.

Millennials' scary strategy to afford down payments - savings graphic

As Bankrate mortgage analyst Deborah Kearns told MarketWatch.com, “[Millennials are] having to be very creative and diversify the ways that they’re coming up with their down-payment and closing cost money.”

One of these ways, according to a Bankrate housing survey, is dipping into retirement savings–a scary concept to financial advisers. Thirteen percent of millennials say they will use retirement savings to fund down payments, compared with just 8% of Gen Xers and 7% of baby boomers.

It is possible that millennials feel as though they have more time to recover the lost retirement savings after they buy a house, as they are still relatively far from retirement age. And although 13% is far from a majority, it worries financial analysts, who advise keeping retirement savings intact no matter what.

Among those millennials who do not yet own a home, the largest barriers to home ownership include: income too low (52%), cost of living too high (45%), and remaining student loan debt (23%). View the Bankrate survey infogram here.

It’s no surprise homebuyers are struggling to make down payments in high-cost residential areas of California. In Dana Estates alone, the median home price was $615,000 in 2018. See below for the Dana Estates market report for 2018Q1 through 2019Q1.

2018-2019 Dana Estates Housing Market Report

So what should you do if you still want to buy a home? Kearns advises that you leave your retirement savings untouched. Instead, carefully estimate what size mortgage you can afford and then start a savings account specifically for your down payment and closing costs.

And as always, consult a financial adviser before making large shifts in your budget. Even if you can afford it, protect your future by making informed decisions. Buying a house is a big decision, but that alone should not keep you from taking such an important step. Owning a home is possibly the most effective way you can build wealth and root your life in a community.

Having a knowledgeable and experienced real estate broker on your side helps protect your interests and ensure you make the best possible decisions. We are dedicated to keeping on top of the real estate market and keeping you informed of changes. You can rest easily knowing you made a well-informed decision based on experience and insight into the Concord California market.

homes for sale in concord ca
Concord CA Real Estate Map Search

Your 2019 Guide to Buying a Home in Concord, CA

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Realtor.com recently published an article detailing the savings needed to buy a home in the 11 largest metropolitan areas in America. Cities like New York, Los Angeles, Dallas, Philadelphia, and San Francisco made the list.

The author’s then tabulated the average down payment for that metropolitan area. Then they broke down the down payment into a daily savings goal over both a 5-year and a 10-year period.

Not entirely surprisingly, San Francisco’s median home price was the highest at $954,000. The average down payment was $171,836.

A San Francisco home buyer would need to save approximately $94 per day to save up this amount in 5 years or $47 per day to save up in 10 years. Converting this to Starbucks lattes resulted in cutting out 26 lattes per day to save up enough for a down payment in a 5 year period.

Buying a Home in Dana Estates

dana estates concord ca map
Roughly the map of Dana Estates in Concord, CA.

Let’s do an analysis for single-family detached homes in the Dana Estates neighborhood in Concord.

In the past 6 months about 22 single family homes in the Dana Estates neighborhood have sold as of 8/19/2019. That isn’t counting homes currently on the market or in pending status.

The median listing price for homes was $622,000, with a median sale price of $634,000. Using 15% as an assumed down payment, a buyer would need to save $95,100.

Five Year Savings Plan

To save $95,100 for a down payment in Dana Estates in five years would require saving $52.08 per day. Simply cutting out 14 Grande Lattes per day at Starbucks.

Ten Year Savings Plan

To save the $95,100 in 10 years would require, a more manageable, $26.04 per day. Thus only cutting 7 Grande Lattes out of your diet. (Note: Your waist and your heart will thank you for this sacrifice.)

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Buying a Home in Concord, CA

If we include condos, townhouses, duets, and other single-family homes to our analysis, what will a home buyer have to save in Concord, CA?

In the six months prior to August 19, 2019 there were 940 sales of single-family homes in Concord. The median sales price was $595,000. Assuming a 15% down payment, allows for a down payment of $89,250.

Concord Five Year Savings Plan

To save $89,250 for a down payment in Concord would require a daily savings goal of $48.80 for five years. On our Grande Latte scale that equates to 13.4 lattes per day removed from your diet.

Concord Ten Year Savings Plan

Over ten years the daily savings goal is decreased to $24.44 per day. The coffee habit would need to decrease by almost 6.7 lattes per day.

How to Save for a Down Payment?

While cutting out 14 lattes per day may not be possible, there are some unique loan programs that allow a buyer to purchase a home with a down payment of only 3.5% of the purchase price (FHA). A down payment of 3.5% equals $21,770 on the average Dana Estates home.

Peter Maclennan will gladly connect you with one of his recommended lenders to understand payment options and getting a mortgage.

Having a knowledgeable and experienced real estate broker on your side helps protect your interests and ensure you make the best possible decisions. We are dedicated to keeping on top of the real estate market and keeping you informed of changes. You can rest easily knowing you made a well-informed decision based on experience and insight into the Concord California market.

What NOT to Do When Buying a House

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Purchasing a home is one of the largest financial decisions that a family can make. Because of the size of the transaction, there are many complicated decisions that surround the purchase of a home, and many myths that inexperienced buyers may be prone to believe. Here are a few common myths and the truth behind them, according to Realtor.com

outdated homebuyer advice

1. Wait until spring

A thorough market analysis shows that the spring and summer seasons are the busiest in volume of house sales. For this reason, many buyers believe they must wait until spring or summer to look for a house so they will have a better chance of finding the best home at the best price.

The reality is that while there are more homes on the market in the spring and summer, there is also more competition for the homes. In other words, the busy season means more sellers AND buyers. Holding fast to the “wait until spring” rule may lead buyers to pass up a perfect fit in the winter or fall months.

Instead, buy when you find the right property that will meet your needs for today — and the next five to 10 years.”

Realtor.com

2. Wait for market prices to drop

Buyers may want to wait for the market to dip before they buy and continue to rent until the market changes. But the truth is that while home prices are high, rent is likely to be high as well, and nothing is saved by waiting to start building equity in a home.

Even when the market dips, buying a home is an incredibly large purchase and buyers must be certain they can afford a down payment, property taxes, and monthly mortgage payments. Rather than waiting for market prices to drop while paying monthly rent, buyers should wait until they find the right house at a price they can afford and then BUY IT.

3. Make a low offer so you have room to negotiate

This one makes sense in most situations. Offer lower than you’re willing to pay so when the seller makes a counter-offer, you’re still within budget.

But when it comes to buying a home, this can be a risky strategy, especially if you like the house. Not only does the seller have other offers from competing (and motivated) buyers, but they may want to close quickly and will not humor an unnecessary counter-offer. Instead, research houses in the area and base your offer on similar homes in the area.

It is important to know the local market in the area you wish to buy. How much are comparable homes selling for? How long do homes usually stay on the market? Be sure to find a real estate professional who can help you answer these and other questions.

Getting Pre-Approved Should Always Be Your First Step

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first steps real estateThe Concord real estate market is still very active, especially Dana Estates real estate. Reasonable sellers are receiving offers quickly and buyer confidence remains strong. There are multiple price points and types of houses available in Concord, CA.

Particularly around the Dana Estates neighborhood 94519 zip code, homes are in demand. The neighborhood provides convenient access to Highway 4 and to downtown Concord. It is also about equal distance from both the Concord BART station and the North Concord BART station.

Purchasing a home is one of the largest financial decisions that a family can make. Because of the size of the transaction, there are many complicated decisions that surround the purchase of a home.

Today we are going to talk about: Getting Pre-Approved Should Always Be Your First Step

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, understanding your budget will give you the confidence of knowing if your dream home is within your reach.

Freddie Mac lays out the advantages of pre-approval in the ‘My Home’ section of their website:

“It’s highly recommended that you work with your lender to get pre-approved before you begin house hunting. Pre-approval will tell you how much home you can afford and can help you move faster, and with greater confidence, in competitive markets.”

One of the many advantages of working with a local real estate professional is that many have relationships with lenders who will be able to help you with this process. Once you have selected a lender, you will need to fill out their loan application and provide them with important information regarding “your credit, debt, work history, down payment and residential history.”

Freddie Mac describes the ‘4 Cs’ that help determine the amount you will be qualified to borrow:

  1. Capacity: Your current and future ability to make your payments
  2. Capital or cash reserves: The money, savings, and investments you have that can be sold quickly for cash
  3. Collateral: The home, or type of home, that you would like to purchase
  4. Credit: Your history of paying bills and other debts on time

Getting pre-approved is one of many steps that will show home sellers that you are serious about buying, and it often helps speed up the process once your offer has been accepted.

Bottom Line

Many potential home buyers overestimate the down payment and credit scores needed to qualify for a mortgage today. If you are ready and willing to buy, you may be pleasantly surprised at your ability to do so.

Source… KCM Peter Maclennan Blog

Having a knowledgeable and experienced real estate broker on your side helps protect your interests and insure you make the best possible decisions. We are dedicated to keeping on top of the real estate market and keeping you informed of changes. You can rest easily knowing you made a well-informed decision based on experience and insight into the Concord California market.

To reach us please call 925.385.8798 or email us at peter@maclennaninvestments.com.

Search for the newest real estate listings in Concord, CA by map (click the map below):

concord california real estate search by map
Concord CA Real Estate Map Search

It’s Tax Season… Use Your Refund to Jump Start Your Down Payment Savings!

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As the largest city in Contra Costa County, there are many Concord homes for sale, particularly in the zip code 94519. Concord offers accessibility and a measure of affordability when compared to its pricier neighbors of Pleasant Hill, Walnut Creek, and Clayton.

Neighborhoods within the 94519 zip code include:

  • Dana Estates
  • Monte Gardens
  • Holbrook Heights
  • Wren Avenue
  • El Monte
  • San Vincente

These Concord neighborhoods offer proximity to Todos Santos Plaza and the downtown Concord BART station. As well, they provide access via Willow Pass Rd. to Highway 4.

Today I would like to talk about: Using your tax refund to jump-start your down payment savings.

According to data released by the Internal Revenue Service (IRS), Americans can expect an estimated average refund of $2,840 this year when filing their taxes. This is down slightly from the average refund of $2,895, last year.

Tax refunds are often thought of as ‘extra money’ that can be used toward larger goals; for anyone looking to buy a home in 2018, this can be a great jump start toward a down payment!

The map below shows the average tax refund Americans received last year by state. (The refunds received for the 2017 tax year should continue to reflect these numbers as the new tax code will go into effect for 2018 tax filings.)

It's Tax Season… Use Your Refund to Jump Start Your Down Payment Savings! | MyKCM

Many first-time buyers believe that a 20% down payment is required to qualify for a mortgage. Programs from the Federal Housing Authority, Freddie Mac, and Fannie Mae all allow for down payments as low as 3%, with Veterans Affairs Loans allowing many veterans to purchase a home with 0% down.

If you started your down payment savings with your tax refund check this year, how close would you be to a 3% down payment?

The map below shows what percentage of a 3% down payment is covered by the average tax refund by taking into account the median price of homes sold by state.

It's Tax Season… Use Your Refund to Jump Start Your Down Payment Savings! | MyKCM

 

The darker the blue, the closer your tax refund gets you to homeownership! For those in Alabama looking to purchase their first homes, their tax refund could potentially get them 69% closer to that dream!

Bottom Line

Saving for a down payment can seem like a daunting task. But the more you know about what’s required, the more prepared you can be to make the best decision for you and your family! This tax season, your refund could be your key to homeownership!

Source… KCM Peter Maclennan Blog

Having a knowledgeable and experienced real estate broker on your side helps protect your interests and insure you make the best possible decisions. We are dedicated to keeping on top of the real estate market and keeping you informed of changes. You can rest easily knowing you made a well-informed decision based on experience and insight into the Concord California market.

To reach us please call 925.385.8798 or email us at peter@maclennaninvestments.com.

Search for the newest homes for sale in Concord, CA by map (click the map below):

concord california real estate search by map
Concord CA Real Estate Map Search

Closing Chaos – Top 5 Delays for Close of Escrow

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Top 5 Delays of Close of Escrow

The infographic below courtesy of the California Association of Realtors explains some of the most common reasons for a delayed settlement.

delays to close of escrow
Courtesy of California Association of Realtors

Looking ahead to the spring, expect a busy time with many homes coming for sale in a busy market. With this in mind, avoiding these hurdles can really help real estate buyers have a quick, smooth closing process.

Issues related to obtaining financing:

Many buyers get preapproved, which means getting a written loan commitment from a bank saying it will provide you with a mortgage for a certain amount of money. This is a smart move and helps make the financing process go smoothly but there are still problems that can arise and prevent the loan from closing. If the loan application was inaccurate, interest rates go up sharply, your job situation changes, or the borrower’s credit score changes it could result in the closing process being drawn out to fix any problems.

Appraisal issues:

Once a home goes into contract, the bank has to be assured that the value of the home is equal to the price paid. The appraisal does this by comparing the sale price to recent sales of comparable homes. If the appraiser deems that the price is too high, it can cause issues with financing the home purchase.

Home inspection/environmental issues:

Most purchase offers have a contingency written into them, so that if the inspection reveals serious problems, the buyer can back out of the purchase. Based on the home inspection a buyer may want to renegotiate the price or ask the seller to perform repairs prior to close of escrow. These negotiations and repairs can delay the closing process.

Titling/deed issues:

Title insurance is provided so that the buyer’s ownership is free of defect and that no other person can claim ownership. Sometimes in that process a discrepancy or error in prior transfers is discovered. Resolving these issues can take time to find the prior owner to clear the issue.

Contingencies stated in the contract

Other contingencies such as selling a home or paying off a debt can delay closing as well.

Bottom Line

Doing your best to avoid these issues can lead to a quick closing and aid in success whether you are purchasing or selling a home.

Buying a Home in Concord.

If you are looking to buy a home or sell a home around Concord, CA, I would be delighted to help you. Please feel free to call me at 925.385.8798 or use the contact form to get in touch.

Wondering If You Can Buy Your First Home?

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Wondering if You Can Buy Your First Home? | Concord Homes For Sale

As the largest city in Contra Costa County, there are many Concord homes for sale, particularly in the zip code 94519. Concord offers accessibility and a measure of affordability when compared to its pricier neighbors of Pleasant Hill, Walnut Creek, and Clayton.

Neighborhoods within the 94519 zip code include:

  • Dana Estates
  • Monte Gardens
  • Holbrook Heights
  • Wren Avenue
  • El Monte
  • San Vincente

These Concord neighborhoods offer proximity to Todos Santos Plaza and the downtown Concord BART station. As well, they provide access via Willow Pass Rd. to Highway 4.

Today I would like to talk about: First Time Home Buyers

There are many people sitting on the sidelines trying to decide if they should purchase a home or sign a rental lease. Some might wonder if it makes sense to purchase a house before they are married and have a family, others might think they are too young, and still, others might think their current income would never enable them to qualify for a mortgage.

We want to share what the typical first-time homebuyer actually looks like based on the National Association of REALTORS most recent Profile of Home Buyers & Sellers. Here are some interesting revelations on the first-time buyer:

Wondering If You Can Buy Your First Home? | MyKCM

Bottom Line

You may not be much different than many people who have already purchased their first homes. Let’s meet to determine if your dream home is within your grasp.

Source… KCM Peter Maclennan Blog

Having a knowledgeable and experienced real estate broker on your side helps protect your interests and insure you make the best possible decisions. We are dedicated to keeping on top of the real estate market and keeping you informed of changes. You can rest easily knowing you made a well-informed decision based on experience and insight into the Concord California market.

To reach us please call 925.385.8798 or email us at peter@maclennaninvestments.com.

Search for the newest homes for sale in Concord, CA by map (click the map below):

concord california real estate search by map
Concord CA Real Estate Map Search

Where do Millennials Prefer to Live? The Suburbs.

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Would you be surprised to know that millennials prefer suburban living to city living? According to a recent study by the National Association of Home Builders millennials prefer living in the suburbs.

Millenials Home Owner Preference

Where do millennials prefer to live?

  • 66% of millennials prefer the suburbs
  • 24% of millennials prefer to live in rural areas
  • 10% of millennials prefer to live in a city center

Why do millennials prefer the suburbs?

When asked why they prefer the suburbs, 81% of the respondents indicated that they were looking for a home with three bedrooms or more. Homes of this size are difficult to find in the urban core.

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