For the second consecutive year, JD Power and Associates reports that Keller Williams Realty ranks highest in customer satisfaction with home buyers.

Overall satisfaction was determined by examining three factors for the home-buying experience: agent (47%); office (28%); and package of additional services (25%) according to the J.D. Power and Associates 2009 Home Buyer/Seller Study^SM now in its second year.

Click here to read the results of the entire study.

Then contact us and find out why so many buyers are choosing to work with us. Homes sales are significantly up in Pleasanton and mortgage rates continue to remain low. If you are considering buying a home in Pleasanton or the Tri-Valley area contact us for a complimentary consultation. We’ll answer all your questions and help you formulate a strategy for success.

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.

 2008-The Year in Review

How many homes are on the market? As of 01/20/2009, there were 199 single family homes available for sale in Pleasanton.  There were 180 homes available for sale as of 12/31/2008 as compared to 136 as of 12/31/2007.

How many homes sold in Pleasanton in 2008?

What do these numbers mean? Although the number of sales is down 28% from a year ago the median price has only dropped 4%. This is significant compared to other nearby markets such as Livermore where sales actually increased by 4% yet the median price dropped 24% in 2008.

How are distress sales impacting the median price?

Distress sales are properties that have been sold as REO’s or Short Sales.  REO’s stands for “real estate owned”-these are properties that have been taken back by the bank in a foreclosure process.  Short Sales are properties where the current owner is attempting to sell the house for less than the amount owed by working with the bank to avoid a foreclosure.

As you can see from the table below, the higher the percentage of distress sales, the greater the drop in the median price in the various communities of the Tri-Valley as well as Brentwood:

Pleasanton, for example, had the least amount of distress sales - 60 out of 456 or 13%.  In 2008, the median price dropped from $829,000 to $800,000 - a 4% decline from 2007.  On the other end of the spectrum, Brentwood had the highest percentage of distress sales 876 out of 1047 or 84%.  In 2008, the median price for Brentwood dropped from $500,000 at the end of 2007 to $360,000 at the end of 2008 or 28%.

When will we be done with distress sales?

As you can see the number of distress sales on the market has a very adverse effect on the median price for that city.  There is general agreement among all the experts in the industry that until all of the distress sales are done, prices will not bottom out.  There is a serious effort to assist homeowners in distress with loan modification assistance that will restructure mortgage payments and allow families to remain in their homes.  If this effort is successful, it will most certainly help to expedite the completion of distress sales.

There is also the school of thought that there is yet another wave of “ALT-A” loans that are due to convert from fixed to adjustable in 2009 and 2010.  Many of these borrowers will not be able to manage their mortgage payments when these loans convert.  These types of loans may be more prevalent in cities such as Pleasanton.

Which city has seen the greatest drop in median price since the peak of the market?

According to the statistics published in the local multiple listing service, it appears the city with the greatest drop in median price is Brentwood with 40%,  while the city with the smallest drop has been Pleasanton with 4%. 

Do these statistics hold true for my home?

It is important to bear in mind that these are statistical averages based on the total number of sales for the individual cities.  Within each city these figures will not necessarily apply across the board.  Certain neighborhoods and price ranges are more impacted than others.  For example, there is some clear evidence that prices have dropped substantially more than the 5% citywide average in certain price ranges in Pleasanton.  The table below shows the number of sales and the median prices for the following group of homes: All Pleasanton homes sold between 2004 and 2008 that included at least 4500-6000 square feet of living space and were built from 1990 through 2008.

It would seem that that the higher end of the market has seen a greater drop in the median price than other price brackets. You can see from the sales activity below that the higher end of the market has seen a much slower pace of sales in the last 90 days:

Where are sales and prices headed in 2008?

Of course only time will tell.  One indicator of value would be the percentage of distress sales in the number of homes that are currently “PENDING” or under contract waiting to close escrow. 

Right now Pleasanton has 40 properties that are currently “PENDING”- 17 of the 40 are distress sales.  That represents 43% of current pendings or a 29% increase over the percentage of distress sales for all closed sales in 2008.  This could be an indicator that we will see more distress sales.  Another indicator would be the percentage of distress sales for those homes currently on the market:

Since the current percentage of distress sales in Pleasanton for homes that are currently on the market is 19%, it would seem to indicate that at least for now the percentage of distress sales will increase slightly from last year’s levels but not dramatically as has occurred in some of the other areas.  Again the big unknown is how many homeowners in distress have yet to come on the market. 

Of the 54 homes that are categorized as distress sales, the breakdown in prices looks like this:

With another cut in interest rates by the Federal Reserve, rates have fallen to numbers that haven’t been seen since 1971. Click here to read about the decline in rates.

Here is a snapshot of rates as of today, 12/30/08.

These low rates are spurring homeowners to refinance. Is it time for you to refinance too? Here are a few guidelines:

If you have an adjustable rate loan, make the move to a fixed rate loan.

If you can lower your rate by one percentage point or more.

If you are planning to stay in your home for awhile.

If you have significant equity in your home. If not, you’ll be forced to purchase private mortage insurance would could erase any gains from a lower rate.

Click here to read about the REFI Madness.

Of course, these rates are terrific for those considering a purchase right now. The decline in prices, ample inventory, and low rates is a winning combination for buyers as well as investors.

Thinking of buying in the Pleasanton or Tri Valley market? It’s a great time to move your family to a larger home or to buy an investment property for someone in your family.  Give us a call. We’ll help you develop a strategy for your personal situation and goals.

As we noted in our previous post, there are good opportunities for buyers right now. Likewise, this is a great window of opportunity for sellers in the Pleasanton and Tri Valley real estate markets. Check out the items below to find out why listing your home during the holidays is sometimes a savvy decision:

By selling now, you may have an opportunity to be a non-contingent buyer during the spring, when many houses are on the market for less money. This will allow you to sell high and buy low.

You can sell now for more money and we will provide for a delayed closing or extended occupancy until early next year.

Even though your house will be on the market, you still have the option to restrict showings during the six or seven days around the Holidays.

January is traditionally the month for employees to begin new jobs. Since transferees cannot wait until spring to buy, you need to be on the market during the Holidays to capture that market.

Some people must buy before the end of the year for tax reasons.

Buyers have more time to look for a home during the Holidays than during the regular work week.

Buyers are more emotional during the Holidays, so they are more likely to pay a higher price than any other time.

Houses show better when decorated for the Holidays.

Since the supply of listings will dramatically increase in January, there will be less demand for your particular home. Less demand may mean less money for you.

Serious buyers have fewer houses to choose from during the Holidays and less competition may mean a higher sales price for you.

People who look for homes during the Holidays are more serious buyers.

If you are considering selling your home, contact us. We’ll discuss the reasons why it makes sense for you to sell in this market.