Real Estate expert, Timothy Powers, says Alamo is keeping with US trends.
According to Timothy Powers, Alamo, California has seen a drastic decrease in the number of homeowners over the last decade. In fact, reports Timothy Powers, Alamo has seen around a 5% decline in homeownership since 2005 – the same as the rest of the state. But why the sudden shift toward renting?
As the economy slid downward, suggests Timothy Powers, Alamo property values took a huge hit. Unemployment rates soared. People began getting laid off, became under employed, or failed to find work after college, says Timothy Powers. Alamo and other Contra Costa County cities saw nearly 3,200 jobs cut in 2010-2011, and thousands more in the 2 years prior. With all of the uncertainty of the job market, cites Timothy Powers, Alamo residents are often opting to rent vs. buy.
Rental properties are thriving in the new economy, according to Timothy Powers. In Alamo, as well as most cities in California, the rental vacancy rates dropped from about 8% to just under 6% from the first quarter of 2010 to the same time period of 2011. Renters account for almost half of California’s populations these days, notes Timothy Powers. Alamo has seen a great deal of economic factors that contribute to this number. Defaults comprise a fair majority of the increase in surplus homes, reports Timothy Powers. He believes that Alamo foreclosures are at an all time high as people simply cannot pay large mortgages anymore.
The economy is still in bad shape and people are scared to buy, reports Timothy Powers. Alamo home sales are stagnant and they don’t appear to be picking up any speed as the year comes to a close. Loan requirements are also harder to fill, adds Timothy Powers. The Alamo mortgage broker and owner of Paragon Mortgage Bankers notes that banks now expect borrowers to have at least a 720 FICO score to qualify for the best rates. According to Timothy Powers, Alamo’s average credit rating is just 690 – making it much harder to sell all of the excess homes.
There are others opting to rent vs. buy these days, too, says Timothy Powers. Some Alamo families are renting as jobs migrate from state to state. Leasing a property makes it much easier to go where the work is, notes Timothy Powers. Alamo is still a fantastic place to buy, says Powers, and those looking into a purchase will be quite pleased at the availability of affordable homes in the area.
Timothy Powers is a real estate broker and investor who resides in Alamo, California. He is the principal broker at Paragon Estate Services. He is currently dedicating his time and talents to a new opportunity to help his fellow Californians. His company, East Bay Foreclosure Support, offers free financial, emotional, and physical support for military families – as well as families who may be facing terminal illnesses – as they deal with the effects of foreclosure. Tim Powers has recently completed his CPE unit which included over 400 plus hours providing emotional and spiritual support to the sick and dying his internship was administered by Stanford Health Care. Timothy Powers holds a BS in Business Administration & Economics from St. Mary’s College and Masters in Theology from the Jesuit School of Theology (Santa Clara University); additionally, has been a licensed Realtor® since 1989. Timothy Powers and Alamo’s Paragon Real Estate Services may be contacted by calling (925)352-8522