Three predictions for the 2019 Bay Area Real Estate market

As we approach the New Year, there are some changes on the horizon for the Bay Area real estate market. Quick sales, tight inventory and skyrocketing prices may no longer be the norm in 2019. Here are three predictions for the Bay Area real estate market to watch out for. Fewer Buyers Record-high prices and sales – hallmarks of the booming real estate market in the Bay Area – are slowing down. This new reality, however, isn’t generating more buyers. Other conditions forecasted for 2019 could further hinder new buyers. According to the California Association of Realtors, rising interest rates and the lack of affordable housing are just some of the ingredients in its forecast. Since prices remain high, many future homebuyers are having a difficult time entering the market, a trend that’s likely to continue into the New Year. Slight Price Increase A slowed-down housing market doesn’t necessarily mean lower prices. In fact, real estate experts are forecasting home prices to go up by 3 percent in 2019. Should the economy continue an upward trajectory, that could also be a factor. Such a price increase would still be smaller than what we have seen over the last couple of years, however. Downturn in Sales Prices are still increasing, albeit at a slower pace. This trend, however, may not result in more sales in 2019. Already, homes are taking longer to sell and not reaching the stratospheric prices common in the market earlier this year. After years of high-octane growth, the market is finally appearing to cool off. The cool-off, however, is likely not enough to immediately bring in more buyers, lower prices or interest rates. Since the economy remains strong and buying a home […]

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Bay Area real estate market shows signs of change – here’s how you can benefit

The housing market as we’ve come to know it may be changing. Overall flattening and a downtick in sales are a part of the current trend, which could lead to an uptick in inventory and a transfer to a buyers’ market. As these symptoms of a changing market become more prominent, a fundamental shift may be brewing. These changing dynamics mean individuals entering the market as buyers may be gaining the upper hand. Evidence for the change is mounting in the Bay Area In August, total sales for Bay Area homes fell nearly 10 percent. While sales increased from last year by 1.8 percent, the total volume of sales fell nearly 20 percent of average. This hasn’t been seen since 2011. In addition, summer sales were the slowest in seven years, the traditional “busy season” for real estate. There’s a direct line between these numbers and home affordability. A flattening of home prices in the Bay Area is not uncommon after a period of accelerated appreciation and is actually good for a healthy sustainable market. The current climate could lead to a boost in inventory. For some, the changing market provides a new outlook. Take advantage of today’s market and get preapproved If you have been waiting for the market to take a turn, now might be the right time for you to purchase a home. The first step to buying a new home is getting pre-approved. If you get pre-approved utilizing our exclusive Keys on Time Program, you can enter the housing market knowing that your home financing comes with a fully underwritten preliminary pre-approval. As a result, you will have an idea of the amount you feel comfortable spending on a home, which […]

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Now may be a good time to buy as Bay Area home prices decrease

As summer winds down, there may be some change happening in the real estate market. As seen in San Jose, sellers are lowering the prices of their homes, and some economists think a substantial cooling period is possible. The data backs it up as nearly 10 percent of listings saw a price reduction in June, up nearly 3 percentage points from a year ago. Other areas, including San Francisco and Oakland, also experienced price cuts this summer. Because of these indicators, economists believe a slowdown is probable in the coming year. Prices are still expected to climb, albeit at a slower pace. If you are considering taking advantage of this slower market and purchasing a home in the Bay Area, here are a few things to keep in mind. Get Approved for a Loan First Though it may be tempting to jump right into shopping for available homes, you will have better purchasing power if you get approved for a loan first. In the high-priced markets of the Bay Area, many home buyers choose to go with a Jumbo Loan. A Jumbo Loan, also known as a non-conforming loan, describes a mortgage loan exceeding the conforming loan limits set by Freddie Mac (FHLMC) and Fannie Mae (FNMA). In most U.S. counties, the conforming loan limit is $417,000, anything over that is a jumbo loan. In the San Francisco Bay area, the limit amount varies by county and can range from $453,100 to $679,650. If your desired loan amount exceeds the non-conforming loan limits in your county, a Jumbo Loan will cover the full amount.  Financial Preparedness Buying a home requires financial resources for large expenses like a down payment and closing costs. Buying a home […]

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What Bay Area buyers and sellers should know about bidding wars

The Bay Area continues to be characterized by low inventory, increasing prices and a lot of competition. In fact, a recent study shows housing prices leaping by nearly 15 percent from just a year ago. In March, the Bay Area entered a new price stratosphere: a median price of $820,000. Despite rising prices, future homeowners continue to mobilize with hopes of landing their very own home in one of the world’s most beautiful regions. Many homes in the Bay Area, due to the type of market, are selling for over asking price, and in many instances, sellers are reviewing dozens upon dozens of offers, which prompts competition. Here are some things both sellers and buyers should know when it comes to bidding wars.  Things sellers should know: Some real estate agents representing the seller will list the home lower than market value to create bidding wars. Real estate professionals cannot predict what areas will produce offers well over asking price. There are always surprises. Real estate professionals are using a range of pricing strategies. Therefore, as a seller, work with real estate professionals who know Bay Area inventory in and out to maximize your property. Some agents who understand the over-performing market may not price the homes well under market price in an effort to not mislead buyers.  Things buyers should know:   Follow the market patterns, and work with Guarantee Mortgage to secure a loan before doing any shopping. Take advantage of your resources and come ready with cash, if you can. The best-case scenario may be to submit an all-cash offer, especially in an investor-saturated market. If you do finance with partial cash, consider waiving some contingencies that may speed up the deal. […]

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Jumbo loans gaining popularity in Bay Area

According to a new study, housing prices in the Bay Area jumped 14.7 percent from 2017, and hit a new peak of $820,000 in March 2018. The new record in home prices means that if you already own a home, you probably have built up a lot of equity, which is why investing in a home in the Bay Area is such a worthy investment. Financing high-value real estate property is not impossible, but it can be difficult given the tight inventory. Researchers say jumbo loans, which allows more expensive loans in high-cost areas, comprised 62.6 percent of all Bay Area home purchases in March 2018. A jumbo loan is a good option for California’s high-value real estate properties because jumbo loan financing is possible for loans of up to $5 million. A jumbo loan, also known as a non-conforming loan, describes a mortgage loan exceeding the conforming loan limits set by Freddie Mac (FHLMC) and Fannie Mae (FNMA). In most U.S. counties, the conforming loan limit is $417,000, anything over that is a jumbo loan. In the San Francisco Bay area, the limit amount varies by county and can range from $417,000 to $625,000. If your desired loan amount exceeds the non-conforming loan limits in your county, a jumbo loan will cover the full amount. Jumbo loans are available in both fixed and adjustable rate terms. Every situation is different, so we can help you understand the details of a jumbo loan and how it may work for your situation. If you are looking to buy a home in the Bay Area and think that a jumbo loan may be for you, contact us. We would be happy to give you more information to […]

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