Tom's blog - 2010 - 2011

Tom's Blog

• New short sale rules - Alameda County real estate report for April 2010

  Tom Lyons-Real Estate Expertise

  925-216-1105

  realestate@tomlyons.com

  19 Years of experience in Tri Valley Real Estate

   

  The Lyons Tri Valley Real Estate Report

  April 2010

  Year / Volume #4-Issue #28

   

  No inventory numbers to discuss for April 2010.  It is suffice to say, in our area, there is a shortage of available homes across all price ranges. Right now because of low interest rates, low prices on foreclosures, government tax credits for first time homebuyers, attractive FHA financing programs ..... the demand for homes in the Tri Valley area is extremely strong. Problem is that most buyers who want to buy now can not find a home to buy!

  The following article helps explain this more.

  http://www.dqnews.com/Articles/2010/News/California/Bay-Area/RRBay100318.aspx

  Yet with all of these home sales real estate prices are not appreciating in a way that you would expect. Home prices are going up in most price ranges in our local Tri Valley area, but the increases are modest. Why? The banks are keeping the lid on price appreciation with the appraisals needed to complete a home purchase. Banks, currently, are very strict with current home appraisals. There are new appraisal guidelines in place that make it difficult for many houses to appraise at the agreed upon sales price. Hence, the appraisal comes in lower, the sales price of the home is lower .... Which keeps price appreciation on homes lower than it would be if there was a freer market system in place.

  Info on how home appraisals, currently, are hurting price appreciation in our area.

  http://www.tomlyons.com/default.aspx?pp=162248

  The Elephant in the room continues to be

  Foreclosures!!  There are a lot of homes in our area that are in foreclosure, or are bank owned. No surprises there. The surprise is that many of these foreclosed homes are not being released back into the market for sale. Banks keep these homes in their REO inventory (real estate owned). This is the euphemism for the term "shadow inventory" which is inventory of homes that should be released for sale .... one of these days.

  Our real estate laws of pricing still govern what happens with real estate values.

             Here is a link to the laws of real estate pricing.

   http://www.tomlyons.com/default.aspx?pp=159995 

  One of the more important changes for April 2010 are the new federal government laws that go into effect 4/5/2010 with regards to lender short sales. The new guidelines will make it much easier for homeowners to get short sales approved. Plus, the guidelines shorten the entire short sale process, by imposing  timeframes on lenders. So if you are a homeowner who is upside down on your property, or if you're facing a financial hardship, please click on the below links. If you know someone who may benefit from these new rules please pass this info on to them.

  New federal guidelines for short sales effective 4/5/2010. Just click here.

  http://www.tomlyons.com/default.aspx?pp=189174 

  The federal government has pledged to keep interest rates at record lows in order to help foster the economic recovery. Details are here.

  http://news.yahoo.com/s/ap/20100316/ap_on_bi_ge/us_fed_interest_rates;_ylt=AkEaH_h5k7SrhkHBjkIkNECyBhIF;_ylu=X3oDMTJtbjBjcjFqBGFzc2V0A2FwLzIwMTAwMzE2L3VzX2ZlZF9pbnRlcmVzdF9yYXRlcwRjcG9zAzEEcG9zAzIEc2VjA3luX3RvcF9zdG9yeQRzbGsDZmVkaG9sZHNyYXRl

   On 3/25/10 Bank of America announced a program to reduce mortgage principal on homeowners who are either underwater or in financial trouble. 

  http://news.yahoo.com/s/ap/20100324/ap_on_bi_ge/us_bank_of_america_mortgages 

  Search for homes from your mobile phone at http://tomlyons.com/mobile

  

  For 2010 prices on our lower to mid range homes will appreciate. Click for info.

  http://news.yahoo.com/s/ap/20091027/ap_on_bi_ge/us_home_prices;_ylt=AuGBOAb4_apGgXcA_XzKbMes0NUE;_ylu=X3oDMTJzNm41ZTlwBGFzc2V0A2FwLzIwMDkxMDI3L3VzX2hvbWVfcHJpY2VzBGNwb3MDMgRwb3MDNgRwdANob21lX2Nva2UEc2VjA3luX3RvcF9zdG9yeQRzbGsDaG9tZXByaWNlc3Jp

  Our blog info on the recent success stories on short sales.

  http://www.dqnews.com/Articles/2009/News/California/Bay-Area/RRBay090716.aspx 

  Buyer information on how to purchase a home.

  http://news.yahoo.com/s/ibd/20090709/bs_ibd_ibd/20090709realestate 

  First time buyer tax credit extended!!

  Info on the $8,000.00 first time homebuyers tax credit. This income tax credit has been extended through June 2010. In addition, a $10,000 California state tax credit was approved 3/35/10. This is great news for our local housing market.

  http://news.yahoo.com/s/ap/20091029/ap_on_bi_ge/us_homebuyer_tax_credits

  http://news.yahoo.com/s/ap/20091105/ap_on_bi_ge/us_homebuyers_tax_credit

  http://www.federalhousingtaxcredit.com/2009/home.html

  http://scpr.org/news/2010/03/22/california-legislature-extends-homebuyer-tax-credi/ 

  For all of your real estate needs and questions please check out our websites

  http://tomlyons.yourkwagent.com/atj/user/HomePageGetAction.do

  http://tomlyons.com/default.aspx

  

  The Lyons Real Estate Report is distributed monthly to approx. 950 households in the Tri Valley area. If you'd like to receive this report monthly, or if you'd like to unsubscribe, please send me an email at realestate@tomlyons.com

  Tom

   

  Created: 3/29/2010 9:20:48 AM
• Short sale expertise for Livermore, Pleasanton, Dublin and San Ramon Ca.

  Many banks have now jumped on the short sale bandwagon. Approvals on many short sales can be obtained in as little as 30 days. Major banks, not wanting to foreclosure on homeowners, have now given timely short sale approvals top priority.

  Take Wachovia Bank for instance.

  

  Now a part of Wells Fargo, Wachovia did a lot of bad loans circa 2000-2006 that many homeowners can no longer afford to keep current. Wachovia's current solution?? To allow homeowners to short sale the property in lieu of foreclosure. In fact, they've added trained personnel and streamlined the process so well that in many cases we can approvals in as little as 30 days!

  And, what is even more amazing, is that in some cases, the homeowner may qualify to get as much as $2,500.00 in cash, from Wachovia, to help them with their move!

  The Tom Lyons Real Estate Team presently handles a number of short sales in the Livermore, Pleasanton, Dublin, and San Ramon cities of Alameda County California. Year to date in 2009 we've been able to help more than 20 homeowners get through the complicated short sale process.

  

  We've the experience and know how to get your short sale done quickly and efficiently at absolutely no cost to you, the homeowner.

  We've got the

  *Experience

  *Systems in place

  *Ability to get your home sold quickly with the least amount of inconvenience to you

  So if doing a short sale on your home to possibly avoid foreclosure is of interest to you, please give me a call at 925-216-1105, or email me at realestate@tomlyons.com

  For your convenience, if you have additional questions about the short sale process, please visit any of our websites listed below.

  http://www.tomlyons.com/

  http://tomlyons.yourkwagent.com/atj/user/HomePageGetAction.do

  Posted on 10/28/2009

  

  Thanks for reading!!

  Tom

  Created: 10/27/2009 5:24:51 PM
• 2009 - the year of opportunity for the first time homebuyer

  Many factors have come together which make it attractive, and a smart long term wealth building strategy, for first time homebuyers to purchase in 2009!!

  •  Lower house prices help first time buyers affordability.
  •  Historically low interest rates should remain low through 2009. The Federal Reserve Board is taking numerous steps to reduce mortgage rates.
  • Federal government income tax breaks:
  • $7,500.00 existing credit for first time buyers
  • Existing IRS income tax breaks for homeowners
  • More Federal income tax breaks may be coming in 2009

  In many cases it is now cheaper to own a home than it is to rent.

  Please also remember that this window of opportunity to purchase low priced houses with extremely low interest rates will not stay open forever.

  Owning your first house may never be more affordable than it will be in 2009!!

  

  Tom Lyons Real Estate Team

  Real Estate Experts in Livermore, Pleasanton, Dublin, San Ramon, Danville, Tracy, Mountain House, Manteca, and Lathrop California

  www.tomlyons.com

  www.tomlyonsforeclosures.com

  realestate@tomlyons.com

  925-216-1105

  

  Get a leg up on building your long term wealth!

  Created: 12/16/2008 3:00:14 PM
• Introducing a website dedicated to help buyers, and sellers, through the complicated maze of foreclosures.

  Tom Lyons's Foreclosure website:

  http://tomlyons.yourkwagent.com/

   

  Dedicated to buyers, and sellers, in Alameda, San Joaquin, and Contra Costa counties California

  Have questions on how to avoid foreclosure??

  Go to this link.

  http://tomlyons.yourkwagent.com/atj/user/HomePageGetAction.do

  Or try this one

  http://tomlyons.yourkwagent.com/atj/user/SellerResourceGetAction.do

  Considering purchasing a REO home. Learn about the outstanding buying opportunities here.

  http://tomlyons.yourkwagent.com/atj/user/BuyerResourceGetAction.do

  With property values declining in 2008-2009, did you know that you can reduce your property taxes? Let us do the work for you, no charge. Just go to this link.

  http://tomlyons.yourkwagent.com/atj/user/AdditionalGetAction.do?pageId=129317

  The question that we get asked most often is " ARE WE AT THE BOTTOM OF THE MARKET YET?" Read our answer at ... www.activerain.com/blogs/tomlyons

  Save big money on your home expenses by going green. Go to this link for more info.

  http://tomlyons.yourkwagent.com/atj/user/AdditionalGetAction.do?pageId=131829

                                                                                       

  The Tom Lyons Real Estate Team

  Keller Williams Realty

  925-216-1105

  realestate@tomlyons.com

   

  Created: 11/19/2008 9:21:53 AM
• Have we reached the bottom??

  Tom is an experienced agent (18 years) who works in the following East Bay communities of the San Francisco Bay Area. Cities covered are Livermore, Pleasanton, Dublin, San Ramon, Danville, Tracy, Mountain House, Manteca, and Lathrop.

  The question that I hear most often these days from clients, friends, and potential clients is "Are we at the bottom?" Or ..."Are real estate prices going to continue to do down?" Buyers don't want to pay too much ...sellers, who can't really sell their houses right now, are waiting for some kind of recovery so they can sell their house, and investors, well, they want to buy at the absolute bottom of the market.

  

  So ..."ARE WE AT THE BOTTOM OF THE REAL ESTATE MARKET YET?"

  The answer to that is yes and no....

  Yes, we are at the bottom in most cities in the lower price ranges .... For Livermore that price range is in the high $200's to low $300's. For Tracy, Mountain House, Manteca, and Lathrop the lower range is $120's to the low $200's. Lower range in Pleasanton, Dublin, San Ramon, Danville is the mid $300's to low $400's.

  We are at the bottom here .... homes in these price ranges, in these cities, are selling fast. Most are bank owned REO's which are priced below current market value (CMV) and they are selling very quickly with multiple offers on the ones that are the best bang for the buck. Because of the high demand and lower supply the average months supply in these price ranges, in these cities, is approx. 2-3 months. With a 2-3 months supply of houses you normally don't see any price erosion. (Months supply equals total available house inventory divided by sales over the last 30 days)

  HOW ABOUT THE MID PRICE RANGES AND HIGHER?

  Mid and upper price ranges are a different story. Mid range prices in our area can be anywhere from $300K (In the Central Valley) to $700K (Pleasanton) There seems to be more downside to these yet as the months supply of available homes hovers around the 6 month mark. A 6 months supply of houses means that further price erosion is likely. In the upper price ranges, where supply is hovering around the 12-15 months mark, well, the house prices on these kinds of homes still has a way to fall.

  SO WHAT"S IT ALL ABOUT ALFIE?

  To summarize, it is absolutely the best time for investors, and first time home buyers, to jump in and purchase a lower priced home before all these marvelous bargains disappear. And disappear they will. For those of you with higher priced homes looking to sell .... we think that you should stay the course and not try to sell right now. If you did decide to sell .... you'd probably get a lot lower price than you'd be looking for.

  For more info check out our new foreclosure website at http://www.tomlyonsforeclosures.com

  Thanks for reading

  

  Created: 11/10/2008 3:21:48 PM
• Bank owned REO's continue to sell really fast in Northern California!!

  As of 11/08, bank owned REO's are still selling like hotcakes in Northern California. Prices have dropped so low, that in many cases it makes more financial sense for people to buy these homes, than to rent. In the Northern California cities of Manteca, Lathrop, Tracy, Mountain House, Livermore, and Dublin there is a feeding frenzy when these REO's hit the market priced correctly. Many receive 6-10 written offers within a week from being listed!

  The properties are being snapped up by:

  • First time buyers
  • Investors

  Many investors are buying multiple properties right now. One investor, who owns a local carpet company, has bought over 30 properties within the last 6 months. Talk about a smart investor!!

  For more information about the foreclosure situation in Northern California please go to my new website

  http://www.tomlyonsforeclosures.com

  http://www.tomlyons.com

  Thanks!

  Tom L

  Created: 11/10/2008 8:11:46 AM
• How do you work your csh for keys programs??

  Anyone...

  How do you guys, and gals, handle your cash for keys issues?? Any thoughts on timeframes for people to vacate? Any docs that you may sign with them? Or is it simply ..... "you vacate and turn over the keys and we'll give you X in $$$"

  I've been fortunate enough to land a decent sized REO account .... have not yet done any cash for keys programs and I'd like not to look like a total dolt when I start doing these.

  Any help or insights that you can give me would be greatly appreciated.

  Thanks!!

  Tom

  realestate@tomlyons.com

  Created: 9/6/2008 8:02:54 AM
• How do you work your cash for keys programs??

  Help!

  Anyone...

  How do you guys, and gals, handle your cash for keys issues?? Any thoughts on timeframes for people to vacate? Any docs that you may sign with them? Or is it simply ..... "you vacate and turn over the keys and we'll give you X in $$$"

  I've been fortunate enough to land a decent sized REO account .... have not yet done any cash for keys programs and I'd like not to look like a total dolt when I start doing these.

  Any help or insights that you can give me would be greatly appreciated.

  Thanks!!

  Tom

  realestate@tomlyons.com

  Created: 9/6/2008 8:01:22 AM
• How do you work your cash for keys programs??

  Help!

  Anyone...

  How do you guys, and gals, handle your cash for keys issues?? Any thoughts on timeframes for people to vacate? Any docs that you may sign with them? Or is it simply ..... "you vacate and turn over the keys and we'll give you X in $$$"

  I've been fortunate enough to land a decent sized REO account .... have not yet done any cash for keys programs and I'd like not to look like a total dolt when I start doing these.

  Any help or insights that you can give me would be greatly appreciated.

  Thanks!!

  Tom

  realestate@tomlyons.com

   

  Created: 9/6/2008 7:58:25 AM
• Foreclosures selling like hot cakes in Livermore, Dublin, Pleasanton California

  In 2008, prices have come down so much that REO's hitting the market at these low prices receive as many as 10-15 offers on them within days.

  On one Northern Livermore house, a 35 year old fixer at 1300 sq. ft., priced at $334K .... there were 10 offers within a week. Of course it took the bank over 14 business days to respond, leaving potential buyers scratching their heads while waiting.

  On another house, this one in the Dublin Ranch area .... priced way under current market value at $925K for over 5000 sq. ft., for a 2 year old home ... there were 15 offers within 4 days. The house will sell for $1.1M.

  Home sales have picked up tremendously over the past 60 days ..... though the low prices on REO's is the main ( and probably only ) reason.

  Thanks for reading,

  The Tom Lyons Real Estate Team

  Serving Livermore, Dublin, San Ramon, Pleasanton, Danville Ca.

  realestate@tomlyons.com

  925-216-1105

  Created: 8/19/2008 5:54:03 PM
• Hitting bottom of market in Northern California??

  It's not well known to the general public right now, but in the SF bay area we may have hit the bottom of the market in many cities. True, most of the action is in REO homes, but the prices have dropped so much on these as we marched through 2008 ...many cities now have only a 2-3 month absorbsion rate in the lower end. This kind of absorbsion rate means that houses prices are unlikely to drop any further.

  TV and news print articles will pick up on this within the next 60 days .... once the closings hit the county recorders offices.

  For more real estate info on Northern California cities near you check out the Lyons Real Estate Report at www.tomlyons.com

  Thank You!!

  Created: 8/14/2008 2:35:04 PM