THANKFUL

Today I am reminded how thankful I am for so many things, but this year I wish to call out specific groups of people, so here goes:
THE HEROES: Amongst us are some people who have experienced enormous challenges, whether health related, or those affected by the horrible California fires, the hurricanes in Florida, family loss and challenges and other personal challenges that some of us can comprehend only if we have experienced similar circumstances. To you heroes, I say an even bigger THANK YOU, not just for the way you conduct yourself through trying times, but more so for allowing all of us to feel so fortunate for our good fortune.

Tri Valley Market

Tri-Valley Real Estate  Market Report Regarding the Cities of Pleasanton,  Dublin, Castro Valley & Livermore November 2018 Autumn markets in counties around the Bay Area have seen significant shifts, but with wide variance in the magnitude of these changes between counties. So far, the East Bay has seen less dramatic changes than other local markets such as Santa Clara and Sonoma Counties. Homes that sell have generally continued to sell relatively quickly, and median sales prices are higher on a year-over-year basis. However, listing inventory has climbed, sales volume has dropped, and the numbers of price reductions and expired listings have increased. Around the Bay Area, year-over-year home price appreciation appears to be slowing since the spring selling season. Market statistics are shifting amid a background of financial market and political volatility, and rising interest rates. Many standard statistics are lagging indicators and take time to reflect changes on the ground. They will bear watching in coming months. Trends in Median Values The next 5 charts reflect seasonally adjusted, smoothed, estimated fair market values going back to 1996. They are not based on MLS sales data and may vary - generally to some small degree - from MLS calculations. Typically, the trend lines are very similar. It's always useful to look at the market from different angles and using different measurements. Tri-Valley Median Dollar per Square Foot Trends (plus Danville & San Ramon) Appreciation trends by this metric are virtually identical in the general area. Remember that median statistics generalize a very wide range of values in the underlying individual homes. A comparison of year-over-year, median house sales price appreciation rates, 2016 - 2018, for the months of August, September and October, for 3 major East Bay markets. Supply & Demand Statistics Many of the changes in the statistics below are less substantial than those seen in other Bay Area markets, but there are distinct shifts. For the time being, the data is relatively short term. Coming months will give us further insight into where the market may be heading. In October 2018, the number of active listings in the Tri-Valley area increased 28% year-over-year from October 2017 - a fairly large jump - but the increase over  2016 was only 7%. Inventory was extremely low last autumn around the Bay Area, which skews y-o-y comparisons of this statistic. This next chart takes a longer-term view of active listing inventory in all of Alameda County. Here too, one sees a much larger year-over-year increase than when comparing inventory levels to previous years. For the Bay Area as a whole, home sales suddenly plunged 18% year-over-year in September 2018, and there was very similar drop in the Tri-Valley region. Looking at the last 3-month period, August-October, Tri-Valley home sales volume dropped about 11% from the same period of 2017.  So: An increase in active listings, but a decline in sales: That would indicate some softening in the low-supply/high-demand dynamic that has prevailed in recent years and which has helped fuel high appreciation rates.  Some nearby counties have been absolutely hammered by price reductions this autumn: A few, such as Santa Clara and Sonoma, saw staggering year-over-year increases over 350% (though 2018 to 2016 comparisons were not quite as dramatic). In Alameda County - this statistic is available by county - October 2018 saw by far the highest number of reductions in at least 6 years - a 189% jump over 2017, and an 87% increase over 2016. This is an important indicator of changing market conditions, as it signals a growing disconnect between buyer and seller expectations. After overbidding hit new highs this past spring, the Tri-Valley average sales price to original list price percentage - one measure of competition between buyers - dropped back down to a little below 100% in September and October 2018. The latest percentages are not alarming in themselves - many markets around the country would love to see such small discounts off list price - but the contrast with spring is considerable. The growing number of price reductions is likely to impact it further. Thus far, those listings selling this autumn have generally sold relatively quickly. But this statistic is a lagging indicator and won't reflect properties that have not yet sold, perhaps after necessary price reductions. If the market is in the midst of a sustained transition, future months may see significant adjustments in this metric. The number of listings expiring and withdrawn from the market without sale has been climbing: The September and October 2018 figures were much higher on a year-over-year basis. We will see if there are substantial further increases in November and December of homes that sellers have not been able to sell at the prices they currently consider acceptable. That could be another sign of the market shifting to another phase. High-End Home Sales Looking at the past 3 months, the number of homes selling for $1,500,000 and above is down a little y-o-y, but considering just September-October, the number is virtually unchanged. Interestingly, the more expensive home segment has been more resilient in sales volumes around the Bay Area so far this autumn. Izabella Lipetski DRE# 01372992 (510) 506-2072 izabella.lipetski@compass.com © Compass 2018 ¦ All Rights Reserved by Compass ¦ Made in NYC Compass is a licensed real estate broker (01991628) in the State of California and abides by Equal Housing Opportunity laws. All material presented herein is intended for informational purposes only. Information is compiled from sources deemed reliable but is subject to errors, omissions, changes in price, condition, sale, or withdraw without notice. No statement is made as to accuracy of any description. All measurements and square footages are approximate. Exact dimensions can be obtained by retaining the services of an architect or engineer. This is not intended to solicit property already listed

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. ~ Above and Beyond the Sale ~ #Izabella #luxuryrealestate #bayarea #luxury #realestate #milliondollarlisting

Hi everyone,

Please have a safe weekend - if you are in town please avoid any unnecessary outdoor activities. The Cal-Stanford game along with outdoor markets and marathons have been canceled as the official AQI in Oakland and Berkeley is now steady at 250 with many independent readings over 300.

Please note that levels above 100 are unhealthy for those with health issues, levels above 150 are unhealthy for all, 200 are very unhealthy for all, and over 300 is hazardous.

Berkeley Ace Hardware got 3,000 masks earlier today and there may still be some available if you're in search of one.
The weather is expected to alter around Wednesday with different wind patterns and much-needed rain.

Please take precautions and keep in mind those who are in evacuation centers and/or who have lost loved ones due to the fire.

Rising Rates Affect the Cost Too

Mortgage rates have risen 0.5% in 2018 on 30-year and 15-year fixed rate mortgages and experts expect them to continue to increase. Buyers paying attention to the market understand the relationship that inventory has on pricing; when the supply is low, the price usually goes up. Rising interest rates can affect the cost of homes also.

When interest rates go up, fewer people can afford homes. Lower numbers of buyers can affect the demand, which could cause prices of homes to come down. The question is how much do the interest rates have to go up to affect demand?

As the rates gradually go up, the affect may not be noticeable at all except for the fact that the payments for the buyer have increased.

A ½% change in interest is approximately equal to a 5% change in price. A $300,000 mortgage at 4.5% for a 30-year term will have a $1,520.06 principal and interest payment. If the mortgage rate goes up 0.5%, it would affect the payment the same as if the price had gone up 5%. The difference in payments for the full term of the loan would be $32,547.

There are some things beyond buyers’ control, but indecision isn’t one of them. If they haven’t found the “right” home yet, it is understandable. However, when that home does present itself, the buyer needs to be ready to make a decision. If they are preapproved and have done their due diligence in the market, they should be able to contract before significant changes occur in the mortgage rates.

Replace It Anyway

If it's not broken, why would a homeowner consider replacing something as expensive as a toilet when there may be other things in the home to replace that provide more aesthetic appeal. Don't be too quick to ignore the functionality and the reliability of this basic convenience.

The first rationalization might take place at the economic level. A water-saving model could easily pay for itself in a few years and then, there is the good feeling of participating in the conservation of our natural resources.

Having to plunge a toilet more than once a week could motivate a homeowner to spend money on a replacement especially, if having made repairs to the flapper and fill valve didn't solve the issue.

Maybe your existing toilet has ugly scratches that make it difficult to clean. Maybe there are cracks in the tank or bowl that you're concerned will develop into a leak at the worst possible time.

The average cost to replace a toilet is around $400 with models ranging more and less based on the features and brands. Round toilet bowls tend to take up less room, are less expensive and better suited for children. Elongated bowls generally take more room, have more powerful flushing action, more comfortable, more stylish and cost more.

Replacing the shut-off valve for the toilet could be a good thing to do while you're replacing the toilet. Generally, it is as old as the toilet and having a reliable valve that works could be very convenient in a future repair or emergency.

There are a variety of videos on YouTube that could give you the confidence to do it yourself or simply, to have a better understanding of the scope of the project

Before You Leave Town...

Along with all the planning of what you're going to do and where you're going to stay, consider this checklist to make you feel more comfortable while you're away from home.

• Ask a trusted friend to pick up your mail, newspaper and keep yard picked up to avoid an appearance of not being at home.
• Stop your mail (USPS Hold Mail Service) and your newspaper.
• Don't post about your trip on Facebook and other social media until you return; some burglars look for this type of announcement to schedule their activities.
• Do notify police or neighborhood watch - especially if you're going to be gone for more than just a few days. Let your monitoring service know when you'll be gone and if someone will be checking on your home for you.
• Light timers make it look like someone is home. Set multiple timers for various times to better simulate someone at home. There are plug-in modules for lights and appliances that would allow you to control them from your phone while your out of town.
• Do unplug certain appliances - TV, computers, toaster ovens that use electricity even when they're off and to protect them from power surges.
• Don't hide a key; burglars know exactly where to look for your key and it only takes them a moment to check under the mat, above the door, in the flower pot or in a fake rock.

These easy-to-handle suggestions may protect your belongings while you're gone while adding a level of serenity to your trip.

. ~ Your Satisfaction is My Success ~ #Izabella #luxuryrealestate #bayarea #luxury #realestate #milliondollarlisting

. ~ Your Satisfaction is My Success ~ #Izabella #luxuryrealestate #bayarea #luxury #realestate #milliondollarlisting

Should you buy a house in a good school district?

Many people look at the schools their children would be attending when looking to buy a new home. However, is this the best way to go?

Houses near good schools are often much more expensive. Sometimes, out of one’s budget. However, if one buys a house in a bad school district, they may decide to pay for
their kids to attend a private school for a good education. Either way, there is an added cost.

Competitive schools are also not for everyone. Some students don’t do well under the pressure, and would be more successful in a less prestigious school.

You may think, well if I buy a house in a good school district, it will benefit my kids now, and me in the future, for the prices of the house will rise and I will make a profit if I decide to sell it. At the same time though, if you buy a house in a less developed area, and it eventually grows and becomes more wealthy, you may make an even bigger profit.

A friend of mine used to own an apartment in Manhattan, long before it grew into the city it is today. She sold the apartment, but greatly regrets it, for today it would be worth millions.

It all depends on your priorities, and what you think is riskier. Leave a comment with your thoughts!

. ~ Your Satisfaction is My Success ~ #Izabella #luxuryrealestate #bayarea #luxury #realestate #milliondollarlisting

Fruit for thought:

Should you buy your first home in order to live in it, or should your first home be an investment property?

Many people have the mindset that the first home they by should be the home they live in for a very long time. However, this isn’t always the best option for everyone.

Let’s say you want to live in a place where homes are very expensive and you can only afford to rent. However, in other areas in the country houses are much cheaper and you can afford to buy one there. You also may not know where you want to live long-term and are worried that buying a house to live in will be a poor investment if you decide to move.

If this is the case, your best option is to buy a small home in an area where renting is popular. That way, the rent will first pay off your mortgage, and will eventually become passive income once the mortgage is fully paid off.

Buying a house is a good investment is the market is steady and on the rise. If you decide to sell your house, you will still gain revenue. Like President Franklin D. Roosevelt once said, “Real estate cannot be lost or stolen, nor can it be carried away. Purchased with common sense, paid for in full, and managed with reasonable care, it is about the safest investment in the world.”

What are your thoughts? Should one wait to buy a house until they have enough money to buy one where they want to live? Or should one buy a small house to rent out as soon as possible as an investment? Leave a comment to share!