Home Buying in Pleasant Hill>Question Details

Ariel David, Home Buyer in Pleasant Hill, CA

have we hit the bottom yet in pleasant hill ca.? is it a good time to buy now?or should i wait for the coming

Asked by Ariel David, Pleasant Hill, CA Sun Aug 23, 2009

forclosure to hit the market? thanks for you guidance

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Michele Castillo De Almeida’s answer
Hi Ariel,
This is the question of the day. Unfortunately, we have no way of knowing at this point if we are at rock bottom. Depending on which analysts you listen to, you will get conflicting information. What we are seeing is that there are multiple buyers on most homes under $500k and homes selling above list price. This is starting to push prices up slightly because there is not enought inventory on the market. As we approach the winter months, we normally see less homes to choose from. In addition, there is talk that interest rates will be creeping up again. With this said, my opinion is that THIS IS THE TIME to buy a home. I believe there is still a window of opportunity to get great deals, find REOS (bank owned properties) and take advantage of the abundance of short sales (some banks seem to be improving their processes so that they are moving a little faster now) at still great interest rates. I would definitely suggest working with a full-time, experienced Realtor because this market can be a bit brutal with multiple offers and you will need a Realtor who will be on top of all new listings and be able to help advise you on how to write offers that have a better chance of being accepted when you are in one of those situations where there are 10+ offers on a home. Please feel free to contact me either via email of cell to discuss the market conditions in more detail. Good luck to you.

Best,

Michele Castillo De Almeida
Realtor/Co-Founder
JSCA Real Estate Group
michele@JSCArealty.com
925.998.0382
Web Reference: http://www.JSCArealty.com
3 votes Thank Flag Link Sun Aug 23, 2009
BEST ANSWER
Surprise! I am not going to tell you this is the best time to buy. Here's why: I expect AFTER the first time homebuyer tax credit goes away (Nov 30th) there are going to be far fewer buyers and far less competition.

Also: In December and January it is rainy and cold and people are focused on the holidays, not real estate.

With far less competition, and assuming rates remain low in the next few months (which I think they will), I think waiting until some rainy afternoon December -March to buy might get you the best deal.

Yours Trulia,

Janet Guilbault
Mortgage Banker/Broker
RPM Mortgage
925-212-6347
0 votes Thank Flag Link Mon Aug 24, 2009
you be the judge. of 44 detached homes on the market 6 are bank owned. BUT in Pleasant Hill there are 69 homes that have had a Notice of Sale (final step before foreclosure) ... and many of those have been at that stage for well over 6 months ... and another 101 have had a Notice of Default filed (the first step in the foreclosure process). So you have that market phenomenon and then overlap it with the historical month to month fluctuation that "typically" says we see increases January to June/July, August people go on vacation and kids start back to school, and September to December we see a decline of some or most of what we gained in the first 6 months of the year. The average price in Pleasant Hill right now is the same as the average in Pleasant Hill in mid 2002 (about $465k) we peaked in late 2005 / early 2006 at $712k.

In terms of the number of sales we slipped into a sellers market in the Central County several months ago ... the difference between this sellers market and the last one is the HUGE focus on the lower price range.
1 vote Thank Flag Link Wed Sep 2, 2009
Ariel,

Regarding if we have "hit the bottom of the market yet?"... here is an interesting story from a lender that I do business with...

"We have a borrower who just backed out of their purchase transaction b/c they are not netting as much as they'd like on the sale of their current residence. They opted to "wait for the market to come back" before selling and then buying another house (they need a larger home for their family). Their current house is worth about $400,000.

If someone is waiting to sell a $1.5 million house so they can move to Des Moines or retire in a Condo, then waiting might make sense.

BUT, waiting to sell in a stronger market to buy in the same stronger market makes no sense. They will not only end up with the same loan amount, but they will also very likely end up with a much higher interest rate.

A $400,000 loan at 3.99% yields a payment of $1,907 (P&I only). A $400,000 loan at 8.0% yields a payment of $2,935.

Our clients mentioned above could very well just end up with a $1,000 per month higher payment. "
0 votes Thank Flag Link Fri Aug 27, 2010
We will know the bottom after the prices come back up. I have no doubt that we will see some fluctuations in price up and down. If you do buy be prepared to hold for a while. Buy a home you can afford and plan on being in for a while, because the next few years will be rocky.
Web Reference: http://www.bosserealtor.com
0 votes Thank Flag Link Wed Aug 18, 2010
If you haven't bought yet, get ready for more REO and short sale activity in 2010.

Banks have alot of inventory which they will release slowly, which may prevent another decline in the market. In the meantime, they are keeping the foreclosed homes on the books and may be renting them out. Keep a look out for rental activity for such properties as well.
0 votes Thank Flag Link Sat Dec 19, 2009
So is it a good time to buy? I bought a place in 2002 as the market surged up. Could have sold it in 2006 but was too busy to get it ready for market. Now its worth what I paid for it ... but it's also a great rental now with a positive cash flow. Sold our big house in 2005 at the right time, bought another and I am $200k upside down... BUT I have a gorgeous home, exactly where I want to be for a long time... which is good because I will be here a long time.

We will all know when the market has hit bottom ... and that will probably be about 8 to 12 months after it has definitively started its rebound. So if you find the right house for you and you can afford it then buy it, enjoy it and control when you sell it and you will be fine.
0 votes Thank Flag Link Wed Sep 2, 2009
I agree with Janet - The best buyer opportunities ( least competition ) occur in October, November and December when it's raining ( for days on end). The first time buyers or FHA financed buyers have been squeezed out by investors and those with 20+ % down. The homebuyer credit is a larger factor for the FHA buyer, so while I think there will be less competion for homes, I don't think the 8,000 credit expiring will have a significant impact. However, rain always does. It will cut the potential buyer pool by 70%.

Jay Bedsworth, CRS
People and Properties, Sothebys Intl. Realty
contracostahomebuyers.com
0 votes Thank Flag Link Wed Sep 2, 2009
IMO - you missed A bottom which was about Feb or March but the bottom who knows. A lot can still go wrong. There are multiple offers in many of the homes in Gregory Gardens, Sherman Acres and College Park areas all which sell under 400k and lower in some cases. Higher on the price ladder, Poets Corner and Grayson are still commanding stable pricing with the nicer homes selling fast. I would advise there is still price risk over say (arbitrarily) 600k which will be influenced by interest rates and the economy for the plannable future (under 1 year).

Would love to help you find a home!

Bob Georgiou
RE/MAX Accord
01250722

925 980 3248
bob@bob2sell.com
Web Reference: http://bob2sell.com
0 votes Thank Flag Link Mon Aug 24, 2009
For the last two months Pleasant HIll's Supply of Inventory has been only two months - the lowest in the last two years. A two month supply of homes for sale is not a condition that is going to produce lower prices. In fact, the July median price of sold homes was $437,500, up from $389,500 in June. Also, the number of sales (42) was not only up from June's 24, it was the highest month since July 2007. (All these figures include detached, condos & townhouses). All that seems to me to make it a bad gamble that prices are headed down.
0 votes Thank Flag Link Sun Aug 23, 2009
Ariel,

I think you need to start previewing homes in Pleasant Hill. Since the banks have held back inventory, Pleasant Hill has not had a chance to hit its lows. In the mean time the first time home buyer incentive, and the possibility of rates rising has created a panic amongst first time homebuyers. A lack of Supply, and a sense of urgency to qualify for the tax credit, has created some Demand. The homes that have been listed in Pleasant Hill over the summer have been few and far between. That being said, Foreclosures and Short Sale listings are on the way. If you want a home in Pleasant Hill $500,000 or less it will be time to buy. If you are looking to buy above $500,000 you may need to wait a few more months. What you will find is a bottom that hits at two different times, depending on the price range of homes you are looking for. We think the government manipulated bottom hit Pleasant Hill in February. It is a good time to buy now because I think rates are going to edge back to 6.0% and even if the prices drop another 10%, it would be the same as buying a home today at 5%. Right now you should preview the current inventory, to get a sense of what your money can buy. We will call this an education period. When a good listing presents itself, you will feel good about it, and make a wise purchase. Best Wishes!!!

Adrian Huntington
Coldwell Banker Coon & McCreary Realtors
1954 Contra Costa Blvd
Pleasant Hill, CA 94523
0 votes Thank Flag Link Sun Aug 23, 2009
Hi Ariel,
If this is going to be your primary residence, then I suggest you start to look at homes now. It will give you the necessary information about what you like and don't like in a home. I find that the majority of my buyers find 'the one' and then negotiate the best deal possible at that time. We have no way of knowing what the market will be like when you will find that special home, but we do know now that rates are low and that sellers are very motivated to sell, whether they are banks or home owners. Anyone of us can set you up on a MLS search while you monitor the market to see if there are homes to look at that appear to have what you're looking for.
Regards,
Suzanne Looker, 'Your Pet Friendly Realtor'
0 votes Thank Flag Link Sun Aug 23, 2009
This is a good time to buy, there are still many deals to be found. In some areas property values are starting to go up slightly. I have seen propertie sell over asking and some are getting multiple offers
0 votes Thank Flag Link Sun Aug 23, 2009
Hi Ariel,

I have a new listing coming on the market in Gregory Gardens. 4 bedroom/2 bath/1917 sq ft on Hazel Drive. If you have interest, I can give you a pre-market showing. Property not yet priced.

Rich
http://www.richardhoag.com
0 votes Thank Flag Link Sun Aug 23, 2009
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