Rates again are near historic lows. Many mortgage companies we work with across the board have owner occupied rates are as low as 3.75% and investor loans available near 4.38%.

I often get asked about this market and I can only summarize by saying I am a buyer at these price levels along with favorable investor rates in the low 4% level.

Rents are experience upward pressure with the high demand and relatively low rental supply.

It is amazing that you can borrow funds for 30 years at these low interest rates. Rates are bound to increase and anyone who locks in now is going to be sitting pretty for the next 30 years with a low mortage and very likely a property that could convert to a rental down the road and actually cash flow.

Many home buyers are not aware of this wealth building strategy. When you purchase a home and with the intent to occupy, that determines your rate. After residing in the home for a few years, you can then convert that home to a rental and search for another home in the area as your primary residence. Your 30 year fixed rate remains the same and you can then start the process all over again. There is not a better way to create cash flow properties than that simple process mentioned above. If you ever wanted to become a real estate investor, that should be your first step.

Also, we have quite a bit of experience with short sales and REOs (bank owned) properties. Additionally we have purchased homes in our IRA and have assisted others in doing the same. The use for IRA funds is 100% legal in the tax code, however, there are specific rules that must be followed. If that is something you have considered, feel free to call me as I can share with you my background in dealing with such transactions and go over the guidelines to use those funds for real estate investments.

I am often interviewed in the Contra Costa Times for my view on the local market
and most recently commented on activity in the area and what I am seeing on a local level.

That Contra Costa Times article can be seen on the link below.

Figures for August encouraging, but buyers still cautious View Full Story

If you have not signed up for our Listingbook service, you may want to do so. This online tool provides live listing data. Many of the other sites either have aged data or are not live. Realtor.com, Zillow and Redfin often are 72 hours behind in receiving data as they retrieve that data on a national level. Listinbook, however, is locally tied into the same MLS all Realtors use for Contra Costa and Alameda counties.
To get your free account, just go to: Listingbook
or cut and paste this link:
http://www.EastBayPro.Listingbook.com

Feel free to call us for any of your Real Estate needs. When the time is right we hope to have the opportunity to work with you. I am a Broker with Keller Williams Realty and Naomi is GRI certified. Let us put our experties and market knowledge to work for you.
Our Direct # is 925-300-8000 or email: Homes@EastBayPro.com

Feel free to call us for any of your Real Estate needs. When the time is right we hope to have the opportunity to work with you. I am a Broker with Keller Williams Realty and Naomi is GRI certified. Let us put our expertise and market knowledge to work for you.
If you are not currently active but you know of someone who may be looking to buy or sell, feel free to send them our way. We appreciate referrals and will be sure to take great care of any referrals sent our way.

So you have $15,000 saved up and sitting in cash. Nice indeed! Cash is king but now its time to decide where to invest those precious dollars. Well, perhaps you should buy gold. It has been on a tear since the market volatility has kicked in and the global economic picture is starting to look like a runny water color done by a 3 year old. Certainly a bit of abstract in both. Not quite sure what to make of either.

How about this for an alternative? Put that money to work in a home. Wait, the housing market has been on a downward spiral since the summer of 2006. Media jumps on every bleak story about the housing recover since that’s the “in story” for the past five years. One day I counted 10 articles in the USA Today related to the “mortgage meltdown”. Pretty amazing coverage. Well we can hopefully stop beating that dead horse. There are now signs of stability and interest rates, as long as they remain low, will continue to help with the recovery. Foreclosure filings are down significantly nationwide, buyer activity is relatively steady, and most importantly the intrinsic value in homes is much higher in many cases than the price being paid. When buyers are able to purchase homes below intrinsic value, then they have created a very nice hedge against inflation. As goods and services cost more, cost of construction increases and subsequently homes appreciate.

The most compelling reason for the purchase of a home vs. gold is utility and ROI. Buying a home as a primary residence means you are no longer paying rent but now are on the road to owning a home in full, precisely 30 years from closing your transaction. The utility (shelter) is a necessity. So you are either paying rent with no end payment in sight or paying a mortgage with a definitive pay off timeframe. In 20 years, with a modest home appreciate of just 2% per year; your return on a $15,000 investment is 957%. That return is based on leverage. In this scenario, a buyer purchases a home with 4% down and 1% closing cost. So essentially as a home buyer you have a home leveraged at 96% but all the gain (equity) is owned by you, the buyer.

If you bought gold with that same amount of cash, you would get about 8.15 ounces at that price. Sure you own it, you get a certificate, and it sits in a safe somewhere out there in the Midwest. If gold performs the same as your home purchase, then gold would be at $17,619 per ounce in 20 years. My best guess is gold wont see such lofty prices over that timeframe.

Any renters seeking a good return on their idle cash  are advised to take a good look at the housing market and jump on the road to homeownership with prices so low and rates at such incredibly low levels.

Kevin R. Kieffer, Realtor, Broker Associate, Keller Williams Realty offices in Walnut Creek, CA and Danville, CA
Direct : (925) 300-8000  or Kevin@EastBayPro.com

On April 10, 2011 from 1:30pm-4:30pm, you are invited to an Open House at 3000 Sombrero Cir in San Ramon, CA 94583-2210. If you are looking for a single story home in a wonderful neighborhood, then  don™t miss this rare opportunity to visit this magnificent property. For a preview of this home, check out my site at http://www.EastBayPro.com/3000SombreroCir.asp    

Please do not hesitate to Contact Me if you have any questions or wish to schedule a private showing.

or Call (800)785-9889 Ext. 336 for recorded info.
3000 Sombrero Cir in San Ramon, CA 94583-2210- located in Twin Creeks Hills in the San Ramon School District

Kevin R. Kieffer, Realtor
Broker Associate
Keller Williams Realty
Office: (925) 300-8000

Open House Sunday from 1pm-4pm in The Woodlands  

On April 10, 2011 at 1:00 PM, you are invited to an Open House at 593 Rock Oak Rd in Walnut Creek. If you are looking for  a nice single story,  single family home in The Woodlands, look no further. This one is in model condition with nearly 1700 sq.ft. of living space and on a 1/4 acre. Check out  other details  at http://www.eastbaypro.com/593RockOakRd.asp

Please do not hesitate to Contact Me if you have any questions or wish to schedule a private showing.

or Call (800)785-9889 Ext. 320 for recorded info.
593 Rock Oak Rd, Walnut Creek, CA 94598 – located in The Woodlands which feeds to Northgate High School

Kevin R. Kieffer, Realtor
Keller Williams Realty
Office: (925) 300-8000

On April 17, 2011 at 1pm, you are invited to an Open House at 71 Shady Ln in Walnut Creek. If you are looking for a great four bedroom home in the Walnut Creek school distrtict, then don™t miss this rare opportunity to visit this magnificent property. For a preview of this property and other details including price, please check out my site at http://www.eastbaypro.com/71ShadyLn.asp

Please do not hesitate to Contact Me if you have any questions or wish to schedule a private showing.

or Call (800)785-9889 Ext. 356 for recorded info.
71 Shady Ln, Walnut Creek, CA, 94597-3133

Kevin R. Kieffer, Realtor
Keller Williams Realty
Office: (925) 300-8000

http://www.eastbaypro.com/37VivianDr.asp  Great property for first time home buyer or investor. Right on the edge of Gregory Gardens, near downtown Pleasant Hill

Year over year pricing shows declines across the board in several East Bay cities with Lafayette holding up the best with just a 2.6% decline in values. Martinez had one of the highest value drops year over year with a 12.7% decline. The chart below shows comparison of several cities and counties to give you a better idea of how your city is holding up. My estimates are we are in the final stages of the downturn and our local real estate trends differ significantly from national trends that are occurring in over built areas such as Las Vegas and Miami. Demand from the buy side of our business is quite strong with many cash buyers coming to the market as well as first time home buyers and empty nesters making their move to smaller homes. FHA loans are still very popular and rates are very low.  Click  the full chart for all trend details.

Kevin & Naomi T. Kieffer, Broker Associate, Realtors
Keller Williams Realty
Offices in  Danville, CA and Walnut Creek, CA
Homes@EastBayPro.com
Direct: 925-300-8000