Inventory is up across the San Francisco metro area

Buying a home in the Bay Area may be getting slightly easier. The frantic pace of Bay Area home sales have slowed a bit and may mean potential buyers see more homes for sale and potentially enjoy lower prices. That’s the latest word out of desirable areas, including San Jose, where home availability has increased by 43 percent. Elsewhere in the greater San Francisco metro area, inventory is up by 25 percent this year, according to a study by Zillow. It wasn’t too long ago that inventory tightened, and competition soared, leaving would-be buyers in real estate limbo. That’s no longer the case. The sudden shift toward a more buyer-friendly market provides a greater window of opportunity. And while buying a home in the Bay Area is still competitive, it may be more attainable than in recent years with good preparation and a strong mortgage partner. Jumbo Loans remain indispensable for the Bay Area home buyers. The availability of Jumbo Loans with various financing options to meet all buyers’ qualifications have grown substantially. With a Jumbo Loan, buyers also enjoy the flexibility of opting for a fixed rate or an adjustable rate and various options for qualifying. If you haven’t been pre-qualified in a while it’s worth a conversation with your Guarantee Mortgage loan officer to explore the options. The time may be now for individuals and families yearning to buy a home in the Bay Area. Guarantee Mortgage offers MANY options besides Jumbo Loans, including VA Loans which have qualification enhancements for our Veterans! These favorable conditions help buyers, especially with the backing of Guarantee Mortgage’s knowledge of the area and unique financing programs. *The views, articles, postings and other information listed on this […]

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As we enter 2019, Bay Area real estate prices are Moderating

Home sales across the Bay Area’s nine counties dropped in 2018, and that isn’t the only change we are seeing in the market. Homes are staying available longer with 51 days being the average timeframe a house is on the market, compared to 21 days earlier in 2018. Price cuts provide further evidence of a real estate market that may be easing up slightly on buyers heading into 2019. While the changing landscape can entice buyers eager to take advantage of the lower prices, the truth remains: The market remains competitive. Borrowers can get an upper hand by getting pre-approved for a home loan first. If you get pre-approved utilizing our exclusive Keys on Time Program, you can shop for homes confidently because your financing is complete with a fully underwritten preliminary pre-approval. This will give you an idea of how much you can afford in the market, which will help you narrow down your search. In addition, a seller would likely view your offer with a favorable eye should you face competition from other bidders. A financing pre-approval takes the questions out of your qualifications as a buyer, gets your offer to the front of the line and increases your chances of closing the loan on time. Our Keys on Time program delivers the following: A pre-approval that is fully underwritten. An opportunity to waive the loan contingency when an offer is put in (because a complete pre-approval has occurred), which will make the offer more appealing. More confidence for the seller when it comes to closing on, or prior to the escrow close date, and that delays won’t happen. Plus, if you combine the Keys on Time program with our SecureLock program then […]

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Three predictions for the 2019 Bay Area Real Estate market

Posted: 12/07/2018 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 […]

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

Posted: 11/06/2018 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 […]

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

Posted: 09/25/2018 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 […]

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