Monthly Market Snapshot



As the debt ceiling became a growing concern throughout July, the market slowed down more than usual. As a result, sales dropped 16% across the East Bay. However, there was strong demand in the upper end of the market, driving prices up in cities like Piedmont and Berkeley. Buyers continued to drive hard deals, as properties sold further below original asking price at -5.5% and days on market increased 20% to 37. For a custom report on your house, please reply to this email.

Mortgage Rates

Interest rates have dropped back down to historically low levels. The recent rally in the mortgage market has come almost entirely by way of a "flight-to-quality" buying spree created by weak economic data and a short-selling ban on financial shares by France, Italy, Spain, and Belgium.

Many European investors are of the opinion that "where there is smoke, there is fire." Why would you put a ban on short sales of the stocks of banks and other major money-center institutions if there was nothing wrong?

The good news is that the flow of capital out of Europe into the relative safe-haven of dollar denominated assets like Treasuries and mortgage-backed securities has resulted in a big drop in rates. The bad news is that this "flight-to-quality" support can be withdrawn as quickly as it appears. As a result we expect more - not less - price volatility in the mortgage market in the coming weeks.

Positive economic data will temper fears that the world's largest economy might be slipping back into recession, driving money from bonds back to stocks and sending rates higher. More negative data will have the reverse effect. Many experts believe that there is a good chance that the recent rally in the mortgage market is based more on short-term illusion than long-term substance, signaling that now is the time to lock in an interest rate on your purchase or refinance transaction.

For any mortgage related questions, please contact Faramarz Moeen-Ziai at Bank of Commerce Mortgage - 925-627-2563 / fmz@bankofcommercemortgage com.

Saving Our East Bay Schools

Due to deep budget cuts, education-focused non-profits have become even more vital to California's public schools. Did you know the Berkeley Public Education Foundation is the city's single largest source of outside funding to reach teachers and programs in every Berkeley public school? How about the Future Leaders Institute, a program that utilizes a project-based curriculum to help develop East Bay high school kids to become well, future leaders? Or maybe you've heard of the Marcus Foster Education Fund which is in its fourth decade of improving opportunities in the Oakland public school system? The theme here is that while public schools in the East Bay may face some of their toughest years financially, there are people and organizations in this community that have stepped up to fill in some of the gaps.

To date, the agents and staff of Red Oak Realty have contributed over $800,000 to local non-profits supporting education and other community needs through the Red Oak Opportunity Foundation. For a list of past recipients or to make a donation yourself, visit www.redoak-roof.org.


RESTAURANT REVIEW:
HAWKER FARE
Chef James Syhabout made serious culinary waves in Oakland with Commis, his Michelin-starred restaurant. In June he opened his long-anticipated Hawker Fare in Oakland's Uptown. Located in the former location of his mother's Thai restaurant, this casual eatery offers innovative dishes that pay homage to classics. Try his large, flavorful offerings like 24hr pork belly with five spice and preserved vegetable mustard, or lemongrass chicken "gai yang" with turmeric, coriander, macerated chiles, lime, garlic and fish sauce. The food may be rich but leave room for dessert, which includes condensed milk soft serve (a sweeter version of traditional ice cream) or a sundae with salted palm sugar caramel, candied red beans, puffed rice and lime whip. Overall it's a great culinary adventure. Hawker Fare - 2300 Webster at 23rd Street.