Nationwide, home prices rose again, a trend that will help ease the foreclosure crisis and slowly rebuild the wealth of millions on American homeowners.  With mortgage rates hovering around 5%, a tax credit for first-time home buyers and low priced foreclosures, people are now scouring for the best real estate values.

Closer to home, the market is picking up although the latest challenge is lack of inventory, especially for homes under $900k.   Most of our listings are pending with a few more coming soon.  We have a gorgeous new listing coming in Dublin Ranch, priced at only $599,900.  This 3 bedroom Standard Pacific home features many upgrades and offers a very desirable floor plan.

The upper end, meaning homes still selling for over $1,000,000, has been hit hard but is finally seeing some activity.  Our sales board at the office now has many more sales over the million dollar mark.  The prices in the upper end have been hit especially hard, so that has really attracted the move up buyer.

The current market is perfect for anyone needing more space or a desire to move into a better school district.

Wow!  We sure had some incredibly hot weather this weekend.  I personally like the warm weather as long as it cools down at night. One summer night,  I met with clients in the heat and they actually told me that they were so impressed that I would show them property in the heat, and dressed professionally.  I initially thought their comment was odd and not sure what they meant.  But they told me they actually had a bad experience before in which someone that they were working with would not show them property on hot days.  As a professional, it is always important to meet the needs of the client, and not ours.  I could never imagine not working for my clients on a hot day or even a freezing day.  I think when you love what you do, you just do it!  Have a great weekend!

The Commerce Department reported that the combined construction of new single-family homes and apartments in August increased 1.5% to a seasonally adjusted annual rate of 598,000 units. This follows a 1% decline in July and a 6.5% increase in June.

According to the ICSC-Goldman Sachs index, retail sales were flat in the week ending September 12. However on a year-over-year basis, retailers saw sales increase by 1.6%, the best showing in a year.

The producer price index, which tracks wholesale prices, rose 1.7% in August, following a 0.9% decrease in July. The increase in August was largely due to a 23% surge in gasoline prices.

Retail sales increased 2.7% in August following a revised 0.2% decrease in July. It was the largest gain since January 2006. Economists had expected retail sales to rise 2% in August.

Industrial production at the nation’s factories, mines and utilities rose 0.8% in August following an upwardly revised 1% increase in July. It was the biggest back-to-back gain since 2005. The overall factory-operating rate rose to 69.6% of capacity in August, the highest level since February.

The Labor Department reported consumer prices rose 0.4% in August. For the year, consumer prices are down 1.5%.

The National Association of Home Builders / Wells Fargo housing market index rose one point in September to 19. It was the highest level since May 2008. An index reading below 50 indicates negative sentiment about the housing market.

Initial claims for unemployment benefits fell by 12,000 to 545,000 in the week ending September 12. The figure was lower than the 557,000 that economists had forecast. The number of people continuing to claim jobless benefits in the week ending September 5 rose by 129,000 to 6.23 million.

Upcoming on the economic calendar are reports on the index of leading economic indicators on September 21, existing home sales on September 24 and new home sales on September 25.

Alameda County sales numbered 1,538 in August 2009, this is 21% higher than the number of sales that were reported in Aug 2008.  The median price has dropped 22.7% and 32.2% of all home sales reported were bank owned homes.

Contra Costa County sales numbered 1,587 in August 2009, this is 8.4% lower than the number of sales that were reported in Aug. 2008. The median price has dropped 20.8% and 44.5% of all homes sales reported were bank owned homes.

San Joaquin County has the highest percentage of bank owned sales, 54.2%.  San Mateo County has reported the lowest percentage, 19.1%.

Interest rates are down again! The average rate for a 30 year mortgage has continued to drop for 3 consecutive weeks almost matching the low point of the year which was approx. the week of May 28th. The Federal Reserve is spending $1.25 trillion on mortgage backed securities, which has driven down rates on home loans. I can only imagine that rates are going to go much higher once the feds get less involved in creating artificially low interest rates.

Ponderosa Homes broke ground last week on a new 110 unit gated senior home community in the Ironwood neighborhood off of Valley Avenue and Busch Road – the first new home development in Pleasanton this year.  The Village at Ironwood will be a subdivision of detached, single family, age restricted homes for residents 55 and older.  The plans range from 1,900 to 2,700 square feet and amenities include a fitness center, pool and bocce ball court, as well as clubs and organizations to promote socializing. Models will be open next spring and the homes are expected to be completed infall 2010.

We are very excited to be launching our improved 2.0 web site soon. As you are probably aware we have gone to great lengths to keep our web site looking good, with larger photos and an up to date blog. The 2.0 version of the site will be offering a much improved “custom” search engine that will look and work like nothing else offered in the local market.  This are of the web site will serve the needs of those that want to be able to search for a home direct from the our web site.

In case you did not notice, we have posted a new heading under “Meet the Team” titled “What Our Clients Say”. This area of the web site displays our recent transaction surveys so you can now see and read our actual surveys and read what our clients are saying about our level of service, market knowledge and our responsiveness.  The surveys will be updated quarterly.

30 Year Fixed Rate Loan at a Cost of One Point: 4.75%*

Rates improved again, even though the stock market also improved, and the Treasury Secretary implied that the Fed may be backing away from Bond Purchases. Citi Mortgage is buying the market today for the first time in over a month. Flagstar, Amtrust and Provident were fighting for the lead until today.

 How low are rates historically speaking? Very low. We received a table “Average Mortgage Rates” from North American Title yesterday showing average rates since 1972. Year to date, the average mortgage rate has been just over 5.0%. In 1975, the average rate was 9.05%. In 1980, it was 13.74%. In 1981, it was 16.63%. 1985: 12.43%.  1990: 10.13%.   1995: 7.93%.   2000: 8.05%.  This is just one more reason why NOW is a great time to buy real estate. A buyer with a $300,000 mortgage will save over $9,000 per year in interest by locking in a 4.75% rate today in lieu of the 8% rates offered in 2000.

 We were told to watch out for Unseasoned Titles, or properties that have transferred to an entity other than a foreclosing lender in the last 90 days. FHA will not allow financing for any property that has transferred, to entities other than foreclosing lenders, in the last 90 days. Fannie Mae is more flexible, depending on the lender, but nonetheless, if you are aware of a title transfer in the last 90 days, be sure to make your lender is aware. This issue needs to be addressed up front so there are no surprises later.

There are new signs of confidence in Bay Area real estate. Home prices here, and around the country, have now begun to rise from the depths of a three year slump.  Click here to view what the latest news video clip says about today’s real estate market.

One of the stars of the Frankfurt auto show next week will be the Mercedes-Benz SLS AMG. It will be the automaker’s flagship sports car, and it borrows cues from the classic 300SL of the 1950s, including the flamboyant gull-wing doors.  This car looks amazing!

You can check it out by clicking here.