The shadow inventory is giving way to a brightening real estate picture, according to recent reports by the California Association of Realtors. Statewide, the percentage of short sales and foreclosures dropped again, with August short sales holding 23% of home sales, and August foreclosures holding just over 14% of the market.

The total market share of distressed properties in California was 37.8% in August 2012; this is a good improvement over a year ago when distressed properties held 48.3% of the market.

Meanwhile, Alameda County’s distressed sales accounted for 23% of the market during August 2012. This is a drop from 26% during July 2012. A year ago, distressed sales were hovering around 38% of the market. The reduction in distressed sales points to continued housing recovery for Alameda County and Livermore Valley.

Ready for more good news? Lender Processing Services reports that mortgage delinquencies nationwide have been reduced by 30%, since the peak of the housing crisis in 2010. Overall, we have fewer mortgages going bad, while at the same time, the shadow inventory is being successfully absorbed by an inventory-hungry market.

In fact, Livermore Valley home prices are still climbing! August 2012 home sales held a median price of $539,820 in Alameda County. It’s an increase of 11.4% from a year ago, when the median home price was $468,900. We’ve come a long way in a year!

As your professional Livermore Valley real estate agent, I keep my eye on the market trends that affect today’s buyers and sellers. Livermore Valley real estate is continually changing, which is why local experience matters!

If you are buying or selling a home in Livermore, Dublin or Pleasanton, contact me today! I will be happy to provide you with the latest market statistics and give you the professional guidance you can trust.

John Kurtzer
Your Livermore Real Estate Expert
RE/MAX Accord

Livermore Real Estate
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California mortgage interest rates are going to sneak up a notch in the near future, but not for the reasons you might expect. As of October 1, Freddie Mac and Fannie Mae are raising the basis point fees they charge to lenders. In turn, lenders are likely to pass the increased costs on to mortgage borrowers in the form of slightly higher rates.

Freddie and Fannie are making these changes in order for their mortgages to be priced in line with private funding. In other words, they are trying to encourage private capital to return to the mortgage market.  Returning the mortgage markets to balance is in the best interests of taxpayers, who have helped Freddie and Fannie out of some tight spots in the past.

Who relies on Freddie Mac and Fannie Mae for mortgages these days? Almost everybody. In fact, Reuters reports that 85% of mortgages originated during 2011 were backed by these agencies.  So far in 2012, 89% of new mortgages are backed by them. Even small changes by these mortgage giants can have wide-reaching effects.

Fortunately, the dollar impact to Livermore Valley home buyers will be modest. According to Bloomberg, borrowers can expect to pay about $4,000 more over the life of the loan, using a $200,000 mortgage as an example. Break that down per payment, and it’s an extra $11 per month.  Larger loans could see this ratio played out into another $40 a month or so. Not a show-stopper, but remember that these increases are the result of modest policy changes. There are many other reasons why interest rates can rise, and we shouldn’t take today’s rate environment for granted.

The bottom line is, low interest rates and affordable home prices won’t be around forever! Market changes can happen quickly, and buyers who wait on the sidelines too long will miss out on the great opportunities in Livermore Valley real estate. Why not take a look at the wonderful homes available on the market today?