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Homeowners Out-Earned Job Holders in 2021

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Home appreciation outpaced income in much of the US.

One of the sharpest and best reads around is from Jay Voorhees @ JVM Lending. Earlier this week he wrote this:

Owning A House Was More Profitable Than Having A Job Last Year

A few weeks ago, I blogged about the reluctance of sellers to list their properties in the face of so much uncertainty.

But – there is another reason sellers are hanging on to their homes according to various macro pundits.

And that reason is massive appreciation.

According to this Motley Fool column, homeowners made more from appreciation last year on average than the average U.S. worker made from his job.

https://www.jvmlending.com/blog/why-higher-rates-could-save-the-housing-market/

According to the Motley Fool post, the average home appreciated by $52,667 in 2021. Meanwhile the average salary in 2021 was $50,000.

Here in Concord, California the average price from December of 2020 to 2021 increased from $754,553 to $884,716 according to the Contra Costa Association of Realtors®. That increase of 17.3% amounts to a $130,000 growth in net worth. This is above the median household income of $92,706 from the U.S. Census Bureau.

This is one of the reasons that owning your own high quality real estate (like a home in Dana Estates) is one of the best investments you can make.

If you are curious about the value of your home, you can use this link to get your home value.

Peter Maclennan
Real Estate Broker | Maclennan Investment Group, Inc.
DRE #01801793
925-385-8798

Will Zillow’s iBuyer Closure Result in a Wave of Bay Area Home Sales?

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Zillow’s iBuyer Program Closes

Zillow Group had a division that would make computer generated offers on a homeowner’s home, with the goal of reselling that home at a profit a little later. On November 2, 2021 Zillow announced the permanent closure of their iBuyer program.

As a result of errors in their algorithmic buying of homes, Zillow is planning to take a loss on the 7,000 homes it now owns.

Zillow said Tuesday in its latest quarterly earnings report that it will write down real estate worth $304 million after buying homes that are now worth less than the company’s current estimates of their future sales prices. The company also expects to recognize an additional $240 million to $265 million in losses on homes it expects to finish purchasing in the fourth quarter.

https://www.cbsnews.com/news/zillow-layoffs-closing-zillow-offers-selling-homes/

iBuyers in the Bay Area?

I had a client ask me a really great question regarding the closure of Zillow Offers their iBuyer program.

My client’s question was, “With Zillow stopping their iBuyer program, are there going to be a lot of properties that come on the market from Zillow?” She had seen an article that said Zillow was going to actually sell them for loss.

It’s a great question. And I told her, I don’t think Zillow will be selling many homes here in the Bay Area Market.
I don’t think Zillow was actually very active in our market. And I found a report from September of 2021. In the report on the major Metro areas where iBuyers, in the United States bought at least 30 properties.

The major iBuyers had a lot of the activity Atlanta, Phoenix, Dallas area. Reading through the list of major metros with significant iBuyer activity, you will notice very few California markets: Riverside, CA , the Los Angeles/Long Beach area, Sacramento, California, & San Diego, California.

But as I mentioned before, the Bay Area is not on this list of major markets where iBuyers purchased more than 30 homes in the second quarter according to these numbers by Zillow.

And also, if you look on the website ibuyer.com, you can see here which market this is, a past grab of something where they’re active. Again, if you go through this, a lot of them are in the Midwest and Sunbelt States. Not a lot here. Los Angeles a little bit. I think they have Riverside, California, Sacramento, and San Diego. But again, the Bay Area is left off this list.

Why were Bay Area homes avoided by iBuyers?

I have a theory with two reasons that iBuyers avoided the Bay Area housing market.

First, the Bay Area entry level home prices are so high compared with other parts of the country.

Second, due to the political challenges of building new homes, the Bay Area has a lot of older homes built after World War II. Many of the homes have been remodeled, expanded, and renovated. While they were often based upon the same models, over the years much of the housing stock has been modified and is unique.

Areas like Arizona, Atlanta, Nevada, & Texas have less restrictive development practices and have experienced large tract home developments in recent years. For computer algorithms to accurately predict the value of a home, the algorithm must compare similar home plans. A computer predicting an accurate value is easier done in newer tract homes where the models are newer and have undergone fewer modifications.

However, it appears that Zillow is having to exit the market because their algorithm didn’t accurately predict housing values.

Don’t Expect a Wave of Cheap Houses

So I would not expect to see a number of homes from Zillow come on the market. So don’t expect to see a bunch of good deals hitting the market because Zillow is shutting down their iBuyer program.

The bottom line is, a full-time licensed real estate agent is going to provide you a more accurate value of your home and a plan to market your property.

If you would like a Professional Equity Assessment Report of your Bay Area Real Estate and how you can utilize the equity, please call Peter Maclennan, Bay Area Real Estate Broker. DRE #01801793

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):

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Concord CA Real Estate Map Search

Numbers Don’t Lie – It’s Still a Great Time To Sell [INFOGRAPHIC]

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infographic with nationwide real estate statistics for september 2021
Infographic

Nationwide Highlights

  • Heading into the end of the year, you might wonder if it’s still a good time to sell your house. Here’s what the latest data from the National Association of Realtors (NAR) says.
  • Housing supply is lower than last year, and home prices are up nationwide. Meanwhile, the average home is selling fast and receiving several offers. Listing now puts your house in the spotlight, meaning it could sell quickly – and for more than you’d expect.
  • Feeling motivated? If you’re ready to sell and capitalize on today’s market, let’s connect.

Diablo Valley Real Estate Update

Concord CA Real Estate Market Highlights

In September 2021*:

  • Average Days on Market increased to 15 days.
  • The Median Sales Price for single-family detached homes is $853,896 up 10.4% from September 2020. This is despite having a 12.7% increase in new listings year to date.
  • Houses are still selling above asking price (103%).
  • The market is still very active. Let’s discuss if you have questions about the market.

*Source: CCARToday.com

Dana Estates Your Home Equity is Growing!

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Your Home Equity Is Growing [INFOGRAPHIC]

CA Homeowners have seen the value of their home increase dramatically. The nationwide average is $51,500 in equity GROWTH!

Your Home Equity Is Growing [INFOGRAPHIC] | MyKCM

Some Highlights

  • If you’re a California homeowner, today’s rising equity is great news. On average, CA homeowners have gained $116,000 in equity since this time last year.
  • Whether it’s funding an education, fueling your next move, or starting a business, your home equity is a great tool you can use to power your dreams.
  • Ready to sell? Let’s connect to talk about how you can take advantage of your rising equity to reach your goals.

California Dreaming Docuseries

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CA Dreaming Docuseries

Have you seen the docuseries produced by ABC television stations in California about the Future of the Golden State?

Then entire video is about 28 minutes long, but has been broken up into a number of shorter segments on the following topics.

Episode 1: State of the State
First, we’ll look at the population flux. Many of our friends, neighbors and co-workers are moving out, but most of us are staying put. We’ll find out where people are going and staying — and why.
Episode 2: Wildfires
We’ve sweated it out in record heat. We’ve stood strong against raging wildfires and stared in dismay at our smoke-filled skies. Now, we’ll share stories from the fire lines and gather wisdom from our brightest minds. Their big ideas that could save the West Coast.
Episode 3: Cost of Living
We share the same beautiful state, but live in completely different worlds: the wealthy and those who struggle financially. With the world’s fifth largest economy, what can we do to bridge California’s economic divide? It’s not only a question for the experts. We talked to everyday people tackling challenges they never imagined – and succeeding.
Episode 4: Earthquakes
THE BIG ONE. We’ve been warned about it for decades. With the disruption we’ve faced in 2020, have we forgotten about California’s most destructive environmental threat? There’s hope. We’ll check out the newest technology helping us prepare.
Episode 5: The California Dream
Californians have always shown resilience, no matter what comes our way. Maybe it’s the sound of the surf or the dependable sunshine that inspires us to rise together day after day. Meet the people making waves, and discover the places that still make the California dream come true for everyone.

California is a beautiful state in which to reside. It faces many challenges, but offers a number of opportunities.

If you have a real estate question, please reach out to Peter at 925-385-8798.

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.

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

Concord, CA Home Search

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

Bidding Wars on the Horizon

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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.

Bidding Wars Graphic

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.

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

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

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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

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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

Read More… at SF Business Times.

Long Commutes Affect Quality of Life

https://www.nytimes.com/2018/10/31/well/family/the-particular-horror-of-long-commutes-for-young-families.html

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

Read More … at GlobeSt.com

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.

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

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

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

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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

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.

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

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

Concord Real Estate News – August 22, 2018

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concord real estate news for 08/21/2018

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

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.

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

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

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