Fewer homes are available to purchase in the Tri-Valley, but those on the market are a bigger bargain.

That’s because, while prices have not moved much since the beginning of the year, the cost of borrowing has improved dramatically, making mortgages more affordable.

Livermore has a mere 221 single-family homes on the Multiple Listing Service, compared to nearly 600 a year ago. Prices on detached homes range from $179,900 to $4.79 million, with the median at $639,000. Of those, 77 are priced below $500,000.

In addition, there are 44 condos, townhouses and duets, priced from $89,900 to $499,000.

The Pleasanton market is slower and pricier, and has not experienced as big a drop in inventory. There are currently 235 detached homes on the MLS – down from 360 last year. Current prices range from $367,000 to $10 million, with a median of just over $1 million.

The 41 condos, duets and townhouses on the MLS start at $149,000 and go to nearly $750,000.

Meanwhile, the average rate on conventional 30-year fixed mortgages is holding steady at just 4.78 percent. This matches the lowest rates on record since Freddie Mac started tracking data in 1971.

One year ago, the average for this type of loan was 6.06 percent, still a historically good rate. (In 1971, mortgages were priced at about 7 percent. Rates escalated to double-digits in the ‘80s!)

Rate changes can make a significant difference in monthly mortgage payments of more than $100 per $100,000 borrowed. For example, a loan of $400,000 would have run $2,414 last spring. It would now cost only $2,094 per month.

Super conforming loans up to $625,500 are priced slightly higher.

These excellent rates won’t last forever. Plus, lenders are tightening guidelines, meaning loans that are available to folks with decent credit scores this month may only be available to those with superior scores next month.

And inventories are dropping, resulting in multiple offers at some price points.

It’s a smart time to purchase property.

With housing prices down and interest rates at record lows, one might think first-time buyers would be scrambling to scoop up the deals of a lifetime. Some are. But others, concerned about their personal economic futures, are holding back.

The federal and state governments have introduced sweeteners in the form of tax credits to entice buyers into the market.

Now the California Association of Realtors is trying something new: reducing the risk of buying a home.

Taking a cue from U.S. automakers Ford and General Motors, C.A.R. has introduced the Mortgage Protection Program to protect first-time homebuyers in case of job loss, disability or accidental death. The program is funded by a $1 million allocation through the nonprofit C.A.R. Housing Affordability Fund with the goal of building confidence in consumers and reducing the fear of foreclosure.

The program is free for one year. Your Realtor® help you apply when you purchase a home.

The benefits include up to $1,500 per month for up to six months to help pay mortgage payments in the event of involuntary job loss. A qualified co-buyer can also participate for monthly benefits of up to $750.

The program also offers coverage for disability and a $10,000 death benefit.

There are no limits on income or price of the property, but there are a few requirements:

• You cannot have owned a home in the last three years
• You must close the transaction by the end of this year
• The property must be your primary residence
• The property must be located in California
• You must be represented by a Realtor® — a licensed real estate agent who is a member of the California Association of Realtors
• You must be employed with a W-2 (not self-employed)
• You will be eligible for benefits six months after the close date of the transaction, provided you have been on the job at least four months.

If you do receive benefits, you have to agree to use them to make your mortgage payments first. If there is money left over, you can use that any way you see fit. Some or all of these benefits may be taxable.

Will this program ease all of the trepidations first-time homebuyers may feel? Of course not. But it should provide at least some peace of mind.

Let’s say you purchase a nice home in the Tri-Valley this week, and you are set to close on the property on June 15. Your agent – a California Realtor – submits your application for this insurance policy on July 1.

You meet all the requirements: you have not owned a home in the past three years; you intend to live in the property; you are not self-employed, under the definition of the plan.

You will have coverage for one full year – until June 30, 2010. Near the end of the coverage period, you may be offered an opportunity to renew the policy at your own expense. More information about this program, click here or  get it from your Realtor.

The Good:
Great news from FNMA they are loosening the limit of number of Livermore properties owned by investors. It was 10 it went to 4. As of March 1, it will be back to 10. This will reopen the Livermore housing market up for the middle class investors. So if you are in that situation or have clients that are looking to take advantage of the Livermore housing market now is the time. Of course credit score has to be excellent, full doc mortgage loans etc., but rates are good for non owner occupied mortgage loans.

The Bad:
No end in site for releasing the retained property rule. Which states, that if a borrower is going to keep his current residence and wants to buy up, we must count both house payments new and old against them. New rents will not be counted unless 25% to 30% equity is in the retained property. This is absolutely killing the move up buyer! We need these people to buy in Livermore. They want/need the mid range priced houses. Watch out for the new appraisal guidelines lenders have to use. It is coming and will create valuation issues.

The Ugly:
The debate goes on for the stimulus package, which one, how much, who will get the perks etc. Unfortunately we need this to go through to get interest rates into the 4′s again and get the public opinion to want to buy and sell again throughout Livermore. We the real estate industry started the recession. We now need to pull it out. And I believe we are!

Life is good! Business is picking up!

Have a GREAT DAY!

Russ

Well you have heard it from your banks, real estate professionals, and friends: IT’S TIME TO BUY A HOUSE.  Guess what? It’s true. It really is a great time to buy a house in Livermore.

For first time Home Buyers, Investors, & Home Owners that want to upgrade to a bigger home when buying a house in Livermore or move to a different location – it is a great time! Homes are at incredibly low sales prices. This  will not last that long. Nobody knows when the Livermore market will turn in the other direction.  Below I have listed good reasons to buy a house in Livermore now.

• History has shown that real estate housing prices continually go up.

• You will not want to be one of those people that ask themselves “Why didn’t I buy a house when the house prices were so incredible low in Livermore?”

• Home prices have rolled back to the first part of 2003. Livermore Reports dated 11/2008 thru February 6, 2009 show that the Average List Price for a Detached Single Family Home was $514,682 and Sold for  Average Sold Price of $508,425.

• Most recent homes that sold in Livermore as of 11/2008 thru February 6, 2009 show houses sold lower than Year 2003: Approximately: $31,540 Lower.

• Interest rates are at the lowest rates they have ever been.

• Save on Property Taxes by buying a house low.

• Save on Income Taxes by being a home owner.

Currently in Livermore as of February 6, 2009:  There are 258 single detached homes to buy in Livermore.  The Average List Price is 715,620, Medium List Price is $534,500, and Low List Price is $199,900. Call me if you would like help searching for homes to buy that meet your needs:  Or if you like to do search on your own visit my website to Search for homes to buy that meet your needs.

Getting a list of foreclosures in Livermore is easy. As a general rule, foreclosure properties are owned by banks, and every bank wants to sell these properties as soon as possible. These banks will almost always list their properties with a Realtor as they understand that doing so is the most effective way to sell a property, especially for those first time home buyers who can now to afford to buy their first home and buyers who are interested in property investment. If you want to get a list of foreclosures, contact a me thru email: sherrybarto@comcast.net or call me. I can get you a comprehensive list of foreclosure properties for free. There are websites that charge you a monthly fee for access to these lists of foreclosed homes and properties, however most of these sites get their lists from the National Association of Realtors and then sell them to you. You can get these same foreclosure listings from me, your local Livermore real estate agent.

For a list of REO’s or a Short Sales list, call the number on the top-right corner of this page, or click on the “let me answer your questions” tab on the bottom left corner. I will be happy to email you a weekly updated list of REO’s and Short Sales – for free!

A short sale occurs when a property is sold and the lender agrees to accept a discounted payoff, meaning the lender will release the lien that is secured to the property upon receipt of less money than is actually owed.

Examples: If the unpaid balance of a loan is, say, $100,000 and a property sells for $90,000, under a short sale the lender might accept $90,000 as payment in full.

Most banks don’t want to foreclose! They would much rather sell the property (even at a loss) than incur all the monetary losses associated with foreclosing. When this happens, it is called a “short sale”. Short sales usually offer the best investment value because you can negotiate for a portion of the money that the bank would usually spend on foreclosing. It becomes a win/win – the bank wins AND you win.

In Livermore when a bank repossesses a property during a foreclosure, the property is called an REO – or Real Estate Owned. It is expensive for a bank to have REO’s, so they want to sell them as soon as they can. Banks lose a lot of money in the process of foreclosing, i.e. court costs, costs to repair, loss of payment on the property they repossess, etc. Remember that a bank has already invested a lot of money into the property in the form of a loan to a customer for the purchase or improvement of the property. Because of this, a bank’s main goal when a real estate loan is in default is to minimize the losses on such a loan. This makes it very hard or sometimes impossible for the bank to negotiate with over the price of the property because the foreclosure process is so expensive. So while the foreclosed property may be listed at a low price, dealing with the bank can be difficult.

SOLD REO BANK OWNED FORCLOSURES HOMES:

REO Bank Owned Foreclosures in Livermore CA sold since January 1, 2009. 3 were detached single family homes and 2 were attached homes (condos, duets and townhomes).*

The 3 detached single family homes that were REO Bank Owned Foreclosures in Livermore CA had a low sales price of $330,000 and a high sales price of $850,000. These homes were on the market an average of 6 days.

The 2 attached homes (including condos, duets and townhouses) that were REO Bank Owned Foreclosures in Livermore CA had a low sales price of $117,950 (for a 2 bedroom, 2 baths with 955 sq. ft.) and a high sales price of $129,000,000.

64 REO Bank Owned Foreclosures in Livermore CA currently pending sale:

20 Homes ( condos, duets or town homes) were listed at $115,900 (for a 1 bedroom, 1 bathroom condo with a reported 610 square feet of living space) to $412,000 (for a 3 bedroom, 2 1/2 bath town home with 1744 of living space)

44 are detached single family homes that were listed at $214,350 to $789,900. The median home price for foreclosure homes in Livermore is $344,950 that are pending. These homes have been on the market an average of 44 days.

CURRENT INVENTORY – As of Feb 5, 2009. There are 52 REO Bank Owned Foreclosures in Livermore CA currently being offered through the MLS:

10 are duets, condos and town homes, listed at $94,900 (for a 1 bedroom, 1 bath with 758 square feet of living space) to $299,900 (for a 2 bedroom, two and a half bath with a reported 1213 square feet of living space)

42 are detached single family homes, listed at $199,900 to $1,399,900

To see details on the current inventory of 53 Bank Owned Foreclosures in Livermore CA available today: Email: sherrybarto@comcast.net

It is still a great time to buy in Livermore. The current sales show that housing prices look like they are selling close to asking price. This is good indication that the housing market is at the bottom or very close to the bottom. In other words, the housing market could be stabilizing in Livermore. This is good for both buyers and sellers.

Here is the break down

Of those 8 homes:

• 2 Condos were Bank owned or Forclosures

• 3 detached single family homes were Bank Owned or Forclosures

• 1 detached single family home was a short sale*

• 2 detached single family homes were sold by home owners

See Chart below:

Here is a chart that shows the Sales Price vs. the Sold Price:

A Place to Play, to Stay, To Live, To have a special quality of life. From agriculture, Open Space, Parks & Recreation to entertainment, Livermore communities provides opportunities not found in other towns.

One of the things that makes Livermore special & beautiful, is the preservation of agriculture throughout its community, which provides both food produce and open space. Grapes are a well known crop. I am proud that Livermore’s community wineries have turned our grapes into award winning wines. To better understand the wine process & enjoyment of the wine, a few Livermore community wineries offer classes at a variety of levels. Pomegranates, Olives and pistachios add to diversity of agriculture. The Livermore communities are also home to many commercial and olive orchards. One of the most notable olive growers is The Olivina, located at the corner of Wetmore and Arroyo Roads. Charles F. Crohare olive growers grows olives on 100-year old trees and produces six varieties of premium olive oils.

Hiking is one of my favorite activities is hiking at Del Valle Park. The communities of Livermore has trails that offer incredible views of the valley and of Lake Del Valle. When I go there, I always feel like I am mile away from home. Livermore communities also has great trails for walking, bicycling, and horse back riding. Please take a look at my Neighborhood and Community Information to get more details.

My husband and I , and my three almost grown boys love to shop, meet for lunch or dinner in Downtown Livermore: Why? Because the downtown community is close to home, and the shops offer nice clothes and other desirable items that we like. It is convenient so we do not have to go to the big shopping mall. We like to meet our friends I this community to shop, visit, or eat. Lots of the time my family and I will meet our friends at one of the coffee shops or restaurants. The Livermore Downtown community is committed to preserving Livermore’s historic downtown district as the destination place for Livermore residents who want to eat, drink, shop, gather to meet neighbors, and enjoy cultural activities or go to the performing arts center‘s 500-seat Bankhead Theater and attend the area’s finest performing arts.

I think Rob White , Economic Development Director, City of Livermore says it best: “The Livermore community is an undiscovered location, ripe with intimate winery experiences and abundant with parks and recreation activities making us a first choice for day trips, long weekends, and destination vacations.”