Real Estate News

Bidding Wars on the Horizon

July 11, 2019 by Customer Manager Leave a Comment

Despite talk of a coming recession, national trends in home inventory and low mortgage rates might be the perfect storm for bidding wars to come.

According to Yahoo! Finance, a coming inventory shortage will mean bidding wars over the available homes.

Despite a spike in May, home sales have been lagging, possibly indicating a market drop in the months ahead. However, home prices remain high due to a slow down in inventory growth. The growth in number of homes available for sale is down from the first quarter of 2019 high of 6% to just under 3% in May.

Mortgage rates alone have not sparked buyers because they continue to decline. Current 30-year fixed mortgage rates are down 3.91%, but still half a point higher than the historic 2012 lows.

“As long as mortgage rates are moving down there’s really no urgency on the part of buyers,” Realtor.com chief economist Danielle Hale told Yahoo! ‘First Trade’ in the video below:

Source: Yahoo! Finance

If mortgage rates level out, buyers will no longer see waiting around as a viable option, especially if there is a shortage of homes on the market. This potential combination could trigger bidding wars and competition among buyers down the road.

The Bottom Line

Hale doesn’t think we will see a dramatic increase in median home prices, only because prices already sit so high in many markets. However, it is possible we will see an increase in starter home prices, as overhead construction costs continue to rise and starter homes generally attract more motivated buyers.

“Be patient,” Hale advises home buyers, “but take advantage of those mortgage rates that are definitely low right now.”

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.

Peter Maclennan is a real estate broker serving Contra Costa County and surrounding areas. To reach Peter, call 925-385-8798 or email at peter@maclennaninvestments.com.

Interested in more #realestatenews? Follow us on Twitter or visit our blog.

The Price Is (not quite) Right

May 31, 2019 by Peter Maclennan Leave a Comment

A recent study shows that newly listed homes get 3.4 times more online views than homes with a price drop. This evidence supports the advice I regularly give to home buyers: pricing your home accurately the first time is vital to its success on the market.

Many buyers use online platforms for property research, and every one of those sites uses the number of page views as a key performance indicator (KPI) of interested buyers. The study conducted above showed that a new home receiving 100 page views on the first day it is listed would decrease to 51 views on day two, 25 views on day seven, 17 views on day 30, and so on.

For a price change on the same home, the numbers are significantly lower. There would be 29 page views on day one, 18 page views on day two, 15 views on day seven, and leveling out to 13 views on day 30.

This shows that far fewer home buyers are interested in homes that have changed in price than they are in newly listed, well-priced homes.

Another factor in a buyer’s decision is the number of days a home has been on the market. The longer a home sits on the market, the more suspicious a buyer may be that something is wrong with it. Combine this with a lack of interested buyers, despite multiple price drops, and it could be nearly impossible to sell.

Bottom line: Price your house appropriately the first time.

Use current market data to determine your asking price, even if the data suggests a lower value. Resist the urge to price your home too high and you may see multiple buyers competing for the home rather than watching it sit on the market for months.

Want to know what your home is worth? Get your free home valuation here, or contact Peter Maclennan at (945) 385-8798 or peter@maclennaninvestments.com.

Real Estate Headlines November 2, 2018

November 2, 2018 by Peter Maclennan Leave a Comment

SellingDanaEstates.com Must Read Real Estate News for November 2 2018

Here are a sampling of some real estate articles that might be of use for buyers and sellers of real estate.

We are definitely seeing the market change. The market is more balanced between buyers and sellers.

Buyers are getting their offers accepted and even being able to negotiate with sellers. If you have been sitting on the sidelines as a buyer, now is a good time to get in the market.

Bay Area Home Buyers on the Sidelines?

More Bay Area home buyers sitting out as prices continue to rise

Why Does Housing Cost so much?

The San Francisco Business Times seeks to address why housing prices are so high in California.

California leads the nation in many categories from population to venture capital funding. Add lack of housing supply to the list.
The Golden State is under supplied by 3.4 million homes to meet its current housing needs, according to a report on housing underproduction from Up for Growth California, a nonprofit research and advocacy group. The national shortfall is 7.3 million homes, which means California makes up about half of that total.

Why housing costs so much in California and why it may only get worse

Long Commutes Affect Quality of Life

The Particular Horror of Long Commutes for Young Families from NYTimes.com

More Supply in Bay Area Housing?

While I am not sure that supply is actually catching up to demand. There has been a lot of new construction around the Bay Area.

After years of recording lagging supply, the Bay Area is possibly beginning to catch up. San Jose had the biggest increase in new listings of the 45 major US metropolitan areas included in a September 2018 realtor.com report. San Francisco also ranks among the five housing markets with the largest September supply gains, with 1,683 current listings.

Bay Area Housing Finally Posts Gains from GlobeSt.com

Are We About to Enter a Buyers’ Market? | Dana Estates Real Estate

October 11, 2018 by Peter Maclennan Leave a Comment

Are We About to Enter a Buyers’ Market?

The real estate market in Concord, California is still very active. 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: Are We About to Enter a Buyers’ Market?

Home sales are below last year’s levels, home values are appreciating at a slower pace, and there are reports showing purchasing demand softening. This has some thinking we may be entering a buyers’ market after sellers have had the upper hand for the past several years. Is this really happening?

The market has definitely softened. However, according to two chief economists in the industry, we are a long way from a market that totally favors the purchaser:

Dr. Svenja Gudell, Zillow Chief Economist:

“These seller challenges don’t indicate we’re suddenly in a buyers’ market – we don’t expect market conditions to shift decidedly in favor of buyers until 2020 or later. But buyers certainly are starting to balk at the rapid rise in prices and home values are starting to grow at a less frenetic pace.”

Danielle Hale, Chief Economist of realtor.com:

“The signs are pointing to a market that’s shifting toward buyers. But, in most places, we’re still a long way from a full reversal.”

In addition, Pulsenomics Inc. recently surveyed over one hundred economists, real estate experts, and investment & market strategists and asked this question:

“When do you expect U.S. housing market conditions to shift decidedly in favor of homebuyers?”

Only 5% said the market has already shifted. Here are the rest of the survey results:

Are We About to Enter a Buyers’ Market? | MyKCM

Bottom Line

The market is beginning to normalize but that doesn’t mean we will quickly shift to a market favoring the buyer. We believe Ivy Zelman, author of the well-respected ‘Z’ Report, best explained the current confusion:

“With the rate of home price appreciation starting to decelerate alongside the uptick in inventory…we expect significant debate about whether this is a bullish or bearish sign.
In our view, the short-term narrative will probably be confusing, but more sustainable growth and affordability will likely be the end result.”

Source… KCM Peter Maclennan Blog

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

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

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

Concord Real Estate News – August 22, 2018

August 22, 2018 by Peter Maclennan Leave a Comment

News Related to Concord Real Estate

Developers Sue the U.S. Navy over Naval Weapons Station

Well this is interesting. According to the SF Business Times, the U.S. Navy, current owner of the Concord Naval Weapons Station, is being sued by multiple developers on the grounds that they violated the Environmental Protection Act.

A group of developers and property owners filed a lawsuit to challenge the U.S. Navy’s environmental clearance to transfer nearly 5,000 acres of land at the former Concord Naval Weapons Station.
San Francisco Business Times

Homeowners with Lots of Equity

The Sacramento Bee reports that California homeowners have lots of equity in their homes because of the recent growth in prices.

Boosted by soaring home prices, California homeowners are now sitting on the richest vein of home equity in the nation, hundreds of thousands of dollars per home in most cases, an analysis shows.
The Sacramento Bee

Home Remodeling is up 30% in 5 Years

According to a HousingWire.com article remodeling has surged 30% in the last 5 years.

Home remodeling continues to increase in frequency as more Baby Boomers are electing to age in place and even Gen Xers opt to improve their current homes rather than trading up to newer ones.
HousingWire.com

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

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

House Prices: Simply a Matter of Supply & Demand

April 9, 2018 by Peter Maclennan Leave a Comment

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, let’s talk about: House Prices: Simply a Matter of Supply & Demand

Why are home prices still rising? It is a simple answer. There are more purchasers in the market right now than there are available homes for them to buy. This is an example of the theory of “supply and demand” which is defined as:

“the amount of a commodity, product, or service available and the desire of buyers for it, considered as factors regulating its price.”

When demand exceeds supply, prices go up. This is currently happening in the residential real estate market.

Here are the numbers for supply and demand as compared to last year for the last three months (March numbers are not yet available):

In each of the last three months, demand (buyer traffic) has increased as compared to last year while supply (number of available listings) has decreased. If this situation persists, home values will continue to increase.

Bottom Line

The reason home prices are still rising is because there are many purchasers looking to buy, but very few homeowners ready to sell. This imbalance is the reason prices will remain on the uptick.

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

Concord Real Estate News (February 20, 2018)

February 20, 2018 by Customer Manager Leave a Comment

Here are some of the most recent local real estate news headlines: When most people think of building wealth, they think of saving or investing in stocks or bonds. However, simple land and home ownership is often overlooked. In the Bay Area home ownership is increasingly becoming more expensive. Some are unable or unwilling to take that route and we now see renting rising in popularity. Many want more housing but don’t want it enough to put up with less open spaces or more crowded highways and transportation.

Land Is Underrated as a Source of Wealth

In the long term, housing does about as well as stocks. It’s also a major driver of inequality. Read the Full Story on Bloomberg.

Bay Area residents want more housing, but …

Fed up with soaring prices that are increasingly putting home ownership, or even a decent rental, out of reach, Bay Area residents overwhelmingly say they want more housing built, according to a new poll. But it better not make their commutes worse.

Residents said they support everything from new single family homes to housing for the homeless in their communities, tossing aside NIMBY concerns that sometimes throw a wrench in building plans. But there were limits to their enthusiasm. Respondents balked at building anything that would cut into the Bay Area’s cherished open spaces or funnel more people onto crowded local freeways and public transit, making their treks to work longer. Read More…

Bay Area home prices shoot up 12% in January as inventory plunges

The Bay Area’s median home prices shot up 12 percent in January from the prior year amid a worsening housing shortage.

Single-family home inventory hit a three-year low, pushing the Bay Area’s median price for single-family homes and condos to $880,000, compared to around $774,000 in January 2016. The price was down slightly from November 2017’s all-time peak of of $910,350. Read More…

Is home ownership losing its luster in these Bay Area cities?

As more people are unable, or unwilling, to buy a home, many major destinations in the Bay Area and beyond are turning into cities of renters. Read more…

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

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

Concord Real Estate News (February 13, 2018)

February 13, 2018 by Customer Manager Leave a Comment

Here are some of the latest real estate news headlines: Some bay area residents have seen their houses sell for hundreds of thousands of dollars over the listing price. Others have balked at the Bay Area’s high housing costs and have left. On another note, do you think California is ready for a Proposition 13 overhaul? Finally, explore recent home sale prices in Contra Costa County.

Packing up and moving out: Bay Area exodus continues

Efforts to move out of the Bay Area continued in recent months, with 16,000 residents packing up and taking to the road for cheaper housing and new opportunities. A study by real estate brokerage Redfin found the Bay Area remains the top region for outward migration in the country.

The most popular destination for Bay Area refugees remains Sacramento, followed by other tech hubs and California cities. “It’s pretty much in line with what we’ve seen for the past few years,” said Taylor Marr, senior economist at Redfin. “Many people leaving the Bay Area are still looking in California.” Read More…

Is California ready for a Proposition 13 overhaul?

A new ballot initiative that takes aim at how commercial properties are taxed under California’s Proposition 13 could raise $6 to $10 billion more each year for schools and other programs and services, according to a new analysis by the Legislative Analyst’s Office. Read More…

Why Even ‘Ordinary’ Homes Sell for $500,000 Over the List Price

Almost a quarter of U.S. home sales were above the asking price last year, with an average premium of $7,000. These sellers managed to get a lot more. Read More…

Home sale prices from Contra Costa County, Feb. 2

Click Here to explore recent home sales in Contra Costa County.

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

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

Homeownership: “The Reports of My Death Have Been Greatly Exaggerated”

February 13, 2018 by Customer Manager Leave a Comment

Homeownership: “The Reports of My Death Have Been Greatly Exaggerated”

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: The Increasing Home ownership Rates That We See Today

The famous quote by Mark Twain in the title of this article can be used to describe homeownership in America today. Last week, the Census revealed that the percentage of homeowners in the country increased for the first time in thirteen years.

A story in the Wall Street Journal gave these new homeownership numbers some context:

“The annual increase marks a crucial turning point because it comes after the federal government reined in bubble-era policies that encouraged banks to ease lending standards to boost homeownership. This time, what’s driving the market is a shift in favor of owning rather than renting.

‘This is market, market and market…There’s no government incentive program in sight that is having this effect,’ said Susan Wachter, a professor of real estate and finance at the Wharton School at the University of Pennsylvania, ‘This is back to basics.’”

In a separate report comparing the rental population in America to the homeowner population, RentCafé also concluded that the gap is now shrinking.

“Undoubtedly, the recession had a great impact on homeownership…However, it looks like it takes more to discourage Americans from buying a house than that.

As the years go by, it seems more and more certain that the fact that renting has seen a sudden gain in popularity is more a reaction to the economic crisis than a paradigm shift in the Americans’ attitude toward housing.”

America’s belief in homeownership was also evidenced in a recent survey by Pew Research. They asked consumers “How important is homeownership to achieving the American Dream?”

The results:

43% said homeownership was essential to the American Dream
48% said homeownership was important to the American Dream
Only 9% said it was not important

Bottom Line

Homeownership has been, is and will always be a crucial element of the American Dream.

*Pictured Above – Mark Twain’s home in Hartford, Connecticut.

Source… KCM Peter Maclennan Blog

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 Real Estate News (February 6, 2018)

February 6, 2018 by Peter Maclennan Leave a Comment

Explore the latest Concord real estate news here: Concord will invest millions to provide affordable housing. Bay Area home prices continue double digit gains and looking back to the recession, the real estate market here has regained all it lost and more. Under Concord’s new district election system, the city council is seeking input from residents on the proposed district maps. Looking ahead, a developer with big plans proposes building a professional soccer stadium along with retail, hotels, a convention center, and housing. All of this would be built on a three acre piece of property near the downtown Concord BART station.

With rents soaring, Concord to invest millions in affordable housing

CONCORD — Affordable housing is expensive to build, so the city plans to pitch in several million dollars to fund two projects.

Housing developers have until March 1 to submit proposals to the city for funds to build new affordable apartment complexes or to purchase and rehabilitate existing rental units.

…

City leaders have said they want to use the funds to provide housing for seniors, veterans and teachers. Read More…

Bay Area home prices continue double-digit gains on historic streak

Tight housing supply pushed Bay Area home prices higher yet again in December, extending year-over-year, double-digit gains for the fifth straight month — and overall gains to an historic 69 straight months.

The median sales price for a single-family home in the nine-county region rose to $765,000 in December, up 13.8 percent from last year, according to real estate firm CoreLogic.

The latest data continues a Bay Area housing narrative now stretching toward six years — a rollicking market great for property owners but punishing to newcomers and middle-income families hoping to buy. Read More…

Developer pitches pro soccer stadium, hotel complex for Concord

CONCORD — A professional soccer stadium could be the anchor for a downtown development with hotels, shops and a convention center, but only if BART agrees to play ball.

Walnut Creek developer Mark Hall, whose business empire includes hotels, restaurants, residential and commercial projects, has expanded into the world of professional sports…

With the Oakland Raiders leaving for Las Vegas, the Golden State Warriors moving to San Francisco and uncertainty about where the Oakland A’s will build a new stadium, Hall said he believes there is “an opening and an opportunity here for a professional team, and soccer is definitely on the way up.” Read More…

Concord Seeking Input from Residents on Proposed District Maps

The Concord City Council is seeking input from residents.

Currently, five City Councilmembers are elected at-large, meaning that all registered voters in Concord have the opportunity to vote for all five council positions.

Under the new district-election system, City Councilmembers will be elected by district. One Councilmember, who lives in a district, will be elected by registered voters who also live in the same district. Read More…

U.S. Housing Market Has Gained Back All $9 Trillion in Value Lost During Recession, but Uneven Recovery Means Some Markets Still Lag

SEATTLE, Jan. 25, 2018 /PRNewswire/ — The U.S. housing market has gained back all $9 trillion in value it lost when the market collapsed, but the uneven nature of the crisis and subsequent recovery has left many housing markets trailing behind, while others surge further ahead.

More than half of the nation’s largest housing markets have regained all of the value lost during the recession, with the typical U.S. home worth $55,200 more than it was at the bottom of the housing bust, according to a new Zillow® report. Read More…

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

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

Bidding Wars on the Horizon

The Bottom Line

Interested in more #realestatenews? Follow us on Twitter or visit our blog.

The Price Is (not quite) Right

Real Estate Headlines November 2, 2018

Bay Area Home Buyers on the Sidelines?

Why Does Housing Cost so much?

Long Commutes Affect Quality of Life

More Supply in Bay Area Housing?

Are We About to Enter a Buyers’ Market? | Dana Estates Real Estate

Dr. Svenja Gudell, Zillow Chief Economist:

Danielle Hale, Chief Economist of realtor.com:

Bottom Line

Concord Real Estate News – August 22, 2018

News Related to Concord Real Estate

Developers Sue the U.S. Navy over Naval Weapons Station

Homeowners with Lots of Equity

Home Remodeling is up 30% in 5 Years

House Prices: Simply a Matter of Supply & Demand

Bottom Line

Concord Real Estate News (February 20, 2018)

Concord Real Estate News (February 13, 2018)

Homeownership: “The Reports of My Death Have Been Greatly Exaggerated”

Homeownership: “The Reports of My Death Have Been Greatly Exaggerated”

Bottom Line

*Pictured Above – Mark Twain’s home in Hartford, Connecticut.

Concord Real Estate News (February 6, 2018)

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