Historical Real Estate Market Quotes to Ponder

1947: "The prices of houses semm to have reached a plateau and there is reasonable expectancy that prices will decline. " -Times Magazine

1948: "Houses cost too much for the mass market. Today's average price ($8,000) is out of reach for 2/3's of all buyers." -Science Digest

1969: "The goal of owning a homes seems to be beyond the reach for most americans ($28,000). -Business Week

1981: "The era of easy profits in real estate may be drawing to a close." -Money Magazine

1985: "If you are looking to buy, be careful. Rising home values are not a sure thing anymore." -Miami Herald

1986: "Most econonmists afree...a home will become little more than a roof and a tax deduction, certainly not the lucrative investment it was." -Money Magazine

1993: "We're starting to go back to the time when you bought a home not for it's potential money-making abilities, but rather as a nesting spot." -Los Angeles Times (note that 1993 was the absolute low-point for real estate values in Los Angeles. Prices have sky-rocketed since.)

1993: "Financial planners agree that houses will continue to be a poor investment." -Kiplinger's Personal Financial Magazine

1996: "A home is where the bad incestment is." -SF Examiner

So what does this mean? Because real estate is cyclical it can never be a bad investment.

Whatcha gonna do wit all that junk?

Got junk? Don't know what to do with it? If you live in San Francisco, people will just throw it on the curb with a sign that says "free" and know that someone will take it. But here in the East Bay, we have some other options for you.

WOMEN'S DAY TIME DROP IN CENTER

WDDC is located in Berkeley and is a drop in center for homeless women and children. They are looking for slightly used living room furniture, pots and pans, and they can always use women's toiletries, diapers and formula. New clothes gladly accepted. http://www.womensdropin.org/

1-800-GOT-JUNK

They will take away almost anything – from old furniture and appliances to yard waste and renovation debris – including many things that your local garbage company won’t typically accept. www.1800gotjunk.com

STOPWASTE.ORG

Got e-waste, such as computers, tv's, printers or cell phones? Got medicine or thermometers? Go to www.stopwaste.org to find the next e-waste drop off event. Click here for a catchy tune by Jack Johnson on the 3-R's: reduce, reuse, recycle.
http://www.artistdirect.com/nad/window/media/player/0,,3517839-7558494-WMLO,00.html

ALAMEDA COUNTY COMPUTER RESOURCE CENTER

http://www.accrc.org/

Household Electronics Pick-Up Service
Free for Berkeley residents. If you reside in Berkeley, they will come pick up your household electronics at no charge. Call the Electronics Pick-up Line at 528-4755 and leave a voice mail. If you live outside of Berkeley, AND even outside of California, go to the website to find out how to get rid of your computer.

BANANAS, INC.

Got old toys your little ones no longer play with? Consider donating them to BANANAS, a child care resource and referral service located in Oakland. http://www.bananasinc.org

JUNKBUSTERS.COM

Telemarketing, junk mail, spam, junk faxes- get rid of 'em. http://www.junkbusters.com/

Happy Spring Cleaning!

To arm or alarm?

One of the worst things about showing a house is when there is an alarm on it. Sure, the listing agent does their best to explain to you how to deactivate it, but that doesn't always help when your heart rate is shooting through the roof and all you can hear is the "beep...beep...beep."

At one house, neither the client nor I could find the keypad. So we set it off.

At another house, I made my client punch in the code.

Just recently, I came across a lockbox that, as soon as I opened it, said "alarm code 1524." Just great. Thanks, dear listing agent, for putting a note into the MLS!

If you are a seller, what does an alarm mean to a potential buyer? We certainly know how I feel about it. But what about the buyer? This past weekend I took out a client who was from out of town. His comment? "Is this a bad neighborhood?" We were in the Berkeley Hills.

Here is the flipside: if a buyer walks in and sees the alarm pad, but it isn't activated, they want to know if it works. They like the idea that their home could have an alarm.

But if it does have a working alarm, and it's on, panic sets in.

My advice is to turn off the alarm while it is on the market. Is their something you are protecting? Valuable artwork? Jewlery? If so, you should be removing all valuables from your home anyhow as they could become damaged or stolen. Consider setting set hours for agents to bring clients to your home; during that time the alarm is deactivated. Then when you are home, activate it.

If you do not have an alarm, but are thinking about getting one, many home security companies will offer a free security assessment of your home. Most alarms companies charge an installation fee (I've seen them as low as $300) and a monthly maintenance fee. But if an alarm isn't your forte, perhaps you should consider a dog.

Don't let those credit bureaus exploit you!

Here are some facts about credit bureau's:

1. Credit bureaus sell elads to banks and mortgage companies

2. Pricate information divulged includes address, phone number, and credit score

3. Banks pay $25 - $100 per lead

4. No legislation exists yet to prevent bureaus from selling leads

5. Onslaught of unsolicited marketing as soon as the loan application si submitted

6. May lower your credit score 10 to 15 points

7. Opt out! www.optoutprescreen.com

The East Bay market- it's on fire!!

It's hot, hot, hot! Despite what the media has portrayed over the past 6 months, our market still has its game.

• Last week a 2 bedroom/1 bath home in El Cerrito had 8 offers.
• Two weeks ago a condo in North Oakland had 5 offers.
• This week a 2 bedroom/1 bath home in the Berkeley Hills had 16 offers.
• Next week? I predict multiple offers on a tiny house on Everett in El Cerrito and even more offers on a "deluxe fixer" in Rockridge.
  

Bubble? Not in my hood!

But isn't this what happens every Spring? Part of understanding where we are is looking at where we have been. Let's look at the number of solds over the last 3 years:

..............Feb .....Mar .....Apr ......May
2005 ......256 ......406 ......437 ......435
2006 ......226 ......306 ......356 ......366
2007 ......194

March and April are generally peak times in the market. But why now? Why in the midst of foreclosures and lower sales are we still seeing multiple offers? Because the buyer's never left. And the money is still cheap. And it's the Bay Area, land of...well...no land.