Market Commentary

The month of March showed a strong improvement in the number of homes that went under contract. 43 homes went under contract in March vs. 29 homes in January and 27 homes in February-nearly a 72% increase.  Here is the breakdown of those sales:

The total sales of 99 homes in the 1st quarter of 2009 represents a 71% increase over the 1^st quarter of 2008 with 58 sales.

REO and Short Sale Activity

Of the 99 home sales in the 1^st quarter of 2009 over one third include distress sales in the form of REO properties or short sale properties.  REO properties are those homes that have gone through the foreclosure process and are now being sold by the bank.  Short sale properties are those properties where the owners are attempting to work with the bank to sell the property for less than the amount owed in order to avoid foreclosure.

Of the 58 properties that sold in the 1^st quarter of 2008, only 6 properties were REO and 2 properties were short sales. That equates to 14% of the total.  The increase represents a 250% increase from the 1^st quarter of 2008 to the 1^st quarter of 2009.

Homes Currently For Sale

Within the group of homes currently for sale, the percentage of distress sales is only 16%.  That is a dramatic improvement over the 36% from the “pending” sales group above.  It’s unlikely that REO and short sales are done but at least for now the improvement will help to stabilize our market.

The quality of schools is a very important consideration for many buyers. Pleasanton schools are some of the best in the East Bay and have been a strong factor in the decision for many buyers to settle their family in Pleasanton specifically.

Rich Hinke, the superintendent of Dublin Unified Schools, spoke recently at a meeting of Keller Williams Realtors, and reported that Dublin schools match the quality of Pleasanton schools. This factor, along with a lower price point for housing, may be a compelling reason to purchase your next home in Dublin.

Here are some key point’s from Rich’s presentation:

The East Bay has the highest API scores in California. Generally speaking an API score of 800 is high. Dublin has a score of 840.

The standards for Dublin schools have been raised to meet California State standards,with requirements for 4 years of English, 3 years of math, 3 years of science with 2 labs, and two years of foreign language.

Green Elementary in Dublin Ranch opened several years ago, followed by Fallon Middle School, and in 2011 another Dublin Ranch school will open in the Sorrento development.

Dublin’s classroom size is the same as Pleasanton’s, with 325 teachers and 30 administrators in DUSD.

Dublin’s population is growing at the rate of 3% per year, the equivalent of 200 students. To keep pace with this growth, a $184 million renovation bond was passed which will allow the high school to double in size and grow from 1400 students to 2500 students. $10 million of that bond money will be spent on technology upgrades.

Click here to visit Dublin Unified Schools website.

Click here to visit Pleasanton Unified Schools website.

Click here to visit the Great Schools website where you can research schools and read reviews from parents.

Want to see homes currently available in Dublin? Contact us or click here to go to our homes search page.

California’s mortgage crisis hit Mountain House, a master-planned community, particularly hard last year, and eventually 90% of mortgage holders here owed more than their homes were worth.

But residents are allowing themselves the first twinges of optimism amid the gloom. The 2,600 existing homes in this development 60 miles east of San Francisco are selling at nearly three times last year’s pace. One builder has sold about 30% more homes in 2009 than a year ago. And homeowners here are seeing the welcome return of another phenomenon: the bidding war.

When Catrina Koleva and her husband found their dream home listed here for $299,900 in February, they figured they would try to win the five-bedroom spread. Instead, they faced 12 other bidders and gave up. The winning bid was 30% over asking price, said Tabari Palmer, a representative of the listing agent. “I think people are seeing there are some pretty good values here,” Ms. Koleva said.

No one wants to call a bottom in Mountain House after what happened. Home prices have fallen more than 50% from their peak amid masses of foreclosures. (The home Ms. Koleva wanted last sold for $781,900 in January 2007.) But 48 homes have sold so far this year and another 59 are in escrow, compared with just 19 sales in the year-earlier period.

Adding to the hint of new life, Little League participation has grown to 220 from 178 last year. “People I see here have as much hope as I’ve seen in a long time,” said Lemuel Vergara, principal of the local Wicklund Elementary School.

Mountain House’s nascent revival is representative of a phenomenon playing out here and there around California, offering glimmers of wary optimism as fallen home prices and interest rates entice buyers. Pulte Homes Inc., one of Mountain House’s builders, reported a “marked” increase in its California sales this year from last. January existing-home sales doubled from January 2008, according to the California Association of Realtors, and sales are still growing.

California homes were on the market an average 6.7 months in January, compared with 16.6 months in January 2008, the Realtors association said. Nationwide, it was 9.6 months. In Tracy, a city of about 80,000 people next to Mountain House, there are 900 homes for sale, down from 1,800 a year ago, said Tracy Mayor Brent Ives.

Meanwhile, economists say California is leading a resurgence in the West of existing-home contracts. January contracts signed in the 13 states stretching from New Mexico to Wyoming to Alaska to Hawaii rose 13.5% from a year ago, compared with a nationwide decline of 6.4%, the National Association of Realtors estimates.

Some of California’s strongest housing resurgence is in the hard-hit Central Valley, where Mountain House lies. In Stockton, which had the country’s highest foreclosure rate, sales year-to-date were 1,331 homes on March 18, up from 501 in the year-ago period, MetroList said. In the Sacramento suburb of Elk Grove, sales over the same period rose 54% to 192 from 125; in Modesto, sales rose to 702 from 320. “It really does look like we are getting to the end of this,” said Jerry Nickelsburg, senior economist at the Anderson Forecast, an economics think tank at UCLA.

Few economists say California’s housing debacle is over, and things could even get much worse. The state’s unemployment rate of 10.5% in February is likely to rise, they say. So are foreclosures, which rose 5% in February from the month before, according to industry researcher RealtyTrac Inc. The median home price in California fell 57% to $254,350 in January from $594,530 in May 2007, and prices continue to drop in many places.

There is another potential time bomb: What happens when banks put on sale the thousands of homes they have repossessed, but kept off the market?

That is a nagging question in Mountain House, where about 280 homes have been taken off the market since the first of the year, many of them foreclosures. “We can’t reach a bottom in the housing market until all of the foreclosures get processed,” said Tom Beede, chief executive of MetroList.

But Mountain House has fallen so hard that even a slowing rate of descent gives residents a reason to see some light. When Mountain House sprouted out of a farm field near Tracy in 2003, some people camped in line to snap up houses. Home values soared to more than $700,000, peaking in early 2007 before they collapsed.

In 2008, Mountain House had gained notoriety as the most-underwater community in America, with nine of 10 of borrowers owing more than their homes’ values, according to First American CoreLogic, a real-estate-data firm. Banks foreclosed on hundreds of homes, prompting an exodus of residents.

Ms. Koleva, who lost out on her first dream home, said she and her husband, who live in a rented home here with their two young boys, have looked at 30 other homes here and expect to find a good buy soon. “We’re not desperate,” she said, but “we really like Mountain House. It’s a great place to raise a family.” (Source: Jim Carlton, Wall Street Journal)

Click here to read the entire article.

Interested in purchasing a home in Mountain House? Just want to see the latest listings? Contact us!

A new government Web site includes online tools that can help troubled borrowers determine whether they are eligible to participate in the “Making Home Affordable” loan modification and refinancing program.

The site, MakingHomeAffordable.gov, is intended to help communicate how the program works and who is eligible — elements “critical to the program’s success,” Housing Secretary Shaun Donovan said in a press release.

The Making Home Affordable program includes $75 billion in incentives for loan servicers and borrowers intended to help up to 4 million homeowners negotiate loan modifications or short sales with their loan servicers. The refinance component of the program will rely on Fannie Mae and Freddie Mac to refinance up to 5 million loans they already own or guarantee (see story).

Fannie Mae and Freddie Mac have set up Web sites and toll-free hotlines to help borrowers determine whether their existing loan is owned or guaranteed by Fannie or Freddie.

The Fannie Mae form is at www.fanniemae.com/homeaffordable, and the company is accepting calls at (800) 732-6643. Freddie Mac’s Web site for troubled borrowers is www.freddiemac.com/avoidforeclosure and calls are accepted at (800) 373-3343.

Borrowers can also apply for help from their mortgage servicer by submitting details about their financial situation using an online application form at HopeNow.com, the Web site operated by an alliance of mortgage servicers and nonprofit counselors, or by calling the HOPE NOW hotline, (888) 995-4673. (Source: Inman News)

Many Pleasanton homeowners, and those throughout the Tri-Valley area, have seen the value of their property decline over the past two years. Unfortunately, a drop in market value does not automatically coincide with a drop in property taxes, as property values are not assessd on an annual basis.  Many homeowners are still paying taxes on the previously assessed value of their property.

The Alameda County Assessor’s Office is obligated to align property taxes with current market values. The office is currently conducting a review project to ascertain accurate market values. Here’s a note from the county website:

“Alameda County has been and will continue to be proactive in reviewing assessed values to ascertain whether temporary reductions are warranted. The 2009-10 tax year review project includes all properties that were granted a reduced assessment for 2008-09 and have not changed ownership during 2008. The project also encompasses all those single-family homes and condominiums that were acquired between January 1, 2002 and December 31, 2008. Sales of similar properties that sold near the lien date, January 1, 2009 will be analyzed and compared to properties within the project to determine market value.”

On or before July 1, 2009, homeowners will be notified of their updated assessment. If you believe the assessment is accurate, no action is required on your part. You’ll receive your tax bill in October. If you disagree with the assessment,  you may file an Application for Changed Assessment between 7/2/2009 and 9/15/2009.

Click here to visit the Alameda County Assessor’s Office web page.

Click here to read about the Review Project Due to Decline in Value or to find the Application.

Is your home in Contra Costa County? You may have to take a more aggressive approach to lowering your property taxes if you believe the value has declined. Currently, the Contra Costa County Assessor’s Office is not conducting a comprehensive review of property values.

Click here to access the Contra Costa County Office of Assessor’s web page.

Click here for information on how to apply for a reduction in property taxes in Contra Costa County.