The 20 Hottest U.S. Real Estate Markets in June 2015

Of the 20 hottest housing markets in America, the San Francisco bay area has two of them; San Francisco and San Jose (the Silicon Valley's largest city). Great article from Realtor.com.


Summer is officially here, and just like the heat waves sweeping through much of the country, the real estate market shows no sign of cooling off any time soon, according to a preliminary analysis of June data for realtor.com®.

“Our early read of real estate trends in June suggests good news ahead for the U.S. residential real estate market, especially in the hottest markets with healthy growth in supply,” said our chief economist, Jonathan Smoke, who conducted the analysis.

Based on data for the first three weeks of June, the median list price increased to $233,000, up 7% year over year and 2% over May. Median days on market is still at 66 days, down 7% year over year and flat month over month. Helping create more opportunities for buyers, the listings inventory is now growing faster, at 4% over May but still down over last year.

More and more Americans are spending time searching for the perfect home, our data show. On realtor.com, traffic and searches continue to set new highs in June, Smoke said. Unique users for the month are now on pace for at least 40% growth year over year, he found, while visits and searches are expected to be up more than 50% and 30%, respectively.

To see where demand for housing is greatest, Smoke and his team reviewed the number of listing views relative to the number of listings in the 300 largest U.S. markets. To see where houses are flying off the market, they looked at the median number of days that homes spent on the market.

Combined, this exclusive analysis—the realtor.com® Hotness Index—identifies the 20 medium-size to large U.S. markets where buyers are eagerly seeking homes and sales are closing quickly.

California again dominated the hottest markets list, with almost half of the country’s 20 hottest real estate markets. This is because supply is tight and the state’s strong economy is fueling demand. San Francisco captured the No. 1 spot from Denver, while Vallejo and Santa Rosa also made the top five.

Texas is represented four times: Dallas ( No. 5), Midland ( No.17), Austin (No. 18), and San Antonio (No. 19). Colorado sees Denver (No. 3) remain in the top three. Michigan is again represented twice, with Ann Arbor (No. 7) and Detroit (No. 9) both climbing in the rankings.

Texas and Colorado’s markets have remained resilient despite the declines in oil because of their diversified economies. Michigan, on the other hand, performs well because of the combination of economic recovery and very strong affordability.

Here’s the full list of the top cities in our analysis:

1. - San Francisco, CA
2. - Vallejo, CA
3. - Denver, CO
4. - Santa Rosa, CA
5. - Dallas, TX
6. - San Jose, CA
7. - Ann Arbor, MI
8. - Boston, MA
9. - Detroit, MI
10. - Santa Cruz, CA
11. - Sacramento, CA
12. - San Diego, CA
13. - Fargo, ND
14. - Billings, MT
15. - Columbus, OH
16. - Stockton, CA
17. - Midland, TX
18. - Austin, TX
19. - San Antonio, TX
20. - Fort Wayne, IN

Source: realtor.com, Cicely Wedgeworth
http://www.realtor.com/news/trends/hottest-housing-markets-june-2015/?iid=rdc_news_hp_carousel_theLatest

Calif. Moves to Zero Net Energy Homes by 2020

The California Energy Commission voted unanimously this month to cut energy use in new homes by 28 percent – another big move toward inching closer to zero net energy new homes in the state within five years. A zero net energy building (ZNE) is one that produces as much energy as it consumes.

CEC's latest update to its building energy efficiency standards are designed to reduce regulated energy use and is expected to save consumers $31 a month compared to homes built under the current energy code, according to the Natural Resources Defense Council.

The update in standards, known as "Title 24," will mostly apply to single-family homes and low-rise multifamily buildings. The standards set minimum energy saving requirements for new buildings and renovations in reducing energy used for lighting, heating, cooling, and ventilation. The new standards call for such items as an increase in wall insulation, a reduction in lighting energy in homes by nearly half by requiring a high-efficacy bulbs (like CFL or LED) in every socket; and the use of tankless gas water heaters, or one that boasts equivalent energy performance.

The new standards will take effect Jan. 1, 2017.

California has set a goal that all new residential buildings will be zero net energy by 2020. All new commercial buildings must meet that goal by 2030.


Source: RealtorMag Online
http://realtormag.realtor.org/daily-news/2015/06/25/calif-moves-zero-net-energy-homes-2020?om_rid=AAFmZk&om_mid=_BVjHU2B9DDBLaD&om_ntype=RMODaily

The Supreme Court’s Gay Marriage Decision Is a Housing Game Changer

Horray for the Supreme Court and congratulations to the LGBT community. Buying a home will be much simpler now and many Realtors will be happy to meet the home buying needs of this growing and powerful market segment.



The U.S. Supreme Court’s 5-4 decision on Friday not only opens the doors to legal same-sex marriage throughout the 50 states—it will also help increase homeownership among LGBT couples.

“As with other momentous social landmarks, this progress will trigger key milestones along the path to homeownership,” Sherry Chris, CEO of Better Homes and Gardens Real Estate, said in a statement. She noted that the lesbian, gay, bisexual, and transgender community is “a powerful market segment that represents an estimated buying power of $840 billion.”

That’s a lot of buying power, and legal marriage will only make it stronger. With home prices rising and mortgage requirements increasingly stringent, two incomes are pretty much required to afford a home in much of the country, and marriage helps convince lenders of a couple’s mortgage-worthiness.

“There is no more awkwardness—no more ‘joint tenants’ or however gay people have had to take titles in order to own,” said Summer Greene, general manager of Better Homes and Gardens Florida 1st in Fort Lauderdale, FL. “That means less paperwork, and now it’s therefore easier to qualify. Before you’d have people committed for 20 years and would have to have two different applications for mortgages, et cetera.”

Calling the decision “the new Civil Rights Act,” Greene said, “There is no more cherry-picking which state you can live in because it is fair and nondiscriminating. Life is simpler.”

According to a recent survey by Better Homes and Gardens Real Estate and the National Association of Gay and Lesbian Real Estate Professionals, 81% of its nearly 1,800 LGBT respondents felt that “a ruling for marriage equality will make them feel more financially protected and confident.”

That lack of confidence may help explain why LGBT homeownership rates lag those of America overall. According to the survey, 54% of LGBT respondents owned homes, compared with the national homeownership rate of 63.8% (which is itself at the lowest point since 1993).

LGBTs who rent—particularly millennials—have their own concerns, however.

“For a generation that many have deemed ‘Generation Rent,'” the survey said, “an overwhelming 82% of LGBT millennials surveyed are concerned about rising rents, and 59% say they plan to have children in the future, both of which are potential motivators for purchasing a home.”

Legal marriage does not, of course, guarantee freedom from housing discrimination, which a whopping 73% of the survey’s respondents said was a strong concern, whether they wanted to buy or rent.

For home sellers, the decision opens up the market to a wider array of potential buyers. What will they be looking for? According to the survey, outdoor living space and an open-concept living area “reign supreme.”


Source: realtor.com
http://www.realtor.com/news/supreme-court-gay-marriage-decision-affects-homeownership/

Love Wins!

Don't believe the hype! Rent Control is a BAD IDEA!

It seems that many landlords here in the Silicon Valley are taking advantage of the robust and vibrant job market and its generally higher incomes by increasing their rents too. In San Jose, the largest and the most populous city in the Silicon Valley, rents are up 13% as of March of this year with an average rent of $2,230. So it comes as no surprise that many renters are upset and some, particularly in San Jose, are screaming for rent control. It is a touchy, hot-button issue here and everywhere it has been implemented such as San Francisco and New York City. And many economist agree that rent control is bad for renters and does little to provide more low cost housing to those on making less than the median income and fixed incomes like senior citizens.

Anyhow, I found a great video that Very clearly explains the the ins and outs of rent control and why it is a bad idea. Use it the next time you have an ignorant co-worker or family member who is arguing with you about why a city should have it.

Related: 

Renters, apartment owner square off over San Jose rent control
Spike in San Jose Housing Costs Spurs Council Rent Control Plans

Bay Area housing crisis may cause NIMBY attitudes to wane

Great article from the Mercury News that more or less sums up the housing crisis here in the Bay Area. The lack of affordable housing is a big problem here, but is building small, "crackerjack box" size units for the low and middle income crowd the solution? 

An argument that is made by one of the people quoted in the article is that the lack of housing could bring about economic collapse here in bay area and the Silicon Valley because there won't be enough housing for all the employees that the major employers (such as Google, Apple, Facebook, etc) need for fill their positions. 

So, having put that out there, let's think this through; housing here in the valley is expensive (renting or buying), so if there is not enough housing, there is not enough employees for the employers here to hire, so the employers move operations elsewhere, which means less jobs here, so with less of a population that can afford the high cost of housing. . . . housing costs go down! Right?

Don't get me wrong, I don't want major employers to leave this valley, and remember, I am a Realtor. I get paid on commission so the more expensive the property, the more money I make! However I am a human being so I also believe in my heart that everyone deserves quality housing that is affordable, and maybe letting basic market forces play out will bring prices down instead of making local political leaders stick their fingers in the market and therefore making the housing situation worse.


Housing woes in the Bay Area have become so severe that two out of three residents now believe it's tougher to find a place to live, and at least half are ready to embrace higher-density housing in their neighborhoods to help tackle the problem, a poll released Thursday shows.

The poll by the Bay Area Council found that 67 percent of residents in the nine-county region believe finding a place to live is more difficult now than it was a year ago, and 50 percent support more housing, even if it means their city might become more packed with residents.

"The economy in the Bay Area could be hurt by the lack of affordable housing," said Tracey Grose, vice president of the Bay Area Council's Economic Institute. "It will be harder for employers in the Bay Area to recruit people. We are already seeing some evidence of that."

What's more, 76 percent of residents want policy makers and developers to direct their efforts toward the creation of certain types of housing. Specifically, respondents want the focus on housing for low- and middle-income people.

It's another sign that some Bay Area residents are willing to jettison their long-held anti-growth sentiments that are often dubbed "not in my backyard," or NIMBY.

"It's good that residents are willing to embrace higher density," said Christopher Thornberg, a founding partner with Beacon Economics. "That should have been happening a while ago."

Higher-density housing development was supported by 56 percent of Santa Clara County residents, 55 percent of Alameda County residents and 53 percent of San Francisco residents, according to the poll.

Asked about whether they would accept housing in their own neighborhoods, an affirmative response came from 61 percent of San Francisco residents, 59 percent in Alameda County and 58 percent in Santa Clara County.

"Water isn't the only thing that is in short supply in the Bay Area," said Jim Wunderman, president of the Bay Area Council. "Our region is growing, our economy is humming, but the housing shortage could be our Achilles heel."

Wunderman called for the housing problems to receive the same decisive action that's being undertaken statewide to combat the drought.

"We need a bold regional response to our historic housing crisis," Wunderman said.

San Francisco was also seen as the area that is most in need of affordable housing, according to the poll.

"This whole problem is going to get very bad very quickly," Thornberg said.

A growing number of Bay Area residents are expressing specific solutions to deal with the region's housing ailments.

About 65 percent of residents say they support reductions in fees and regulations for new housing. That's up from 61 percent in the same survey a year ago.

"There is a danger that the housing crisis will undercut our innovation ecosystem," Grose said.


Source: San Jose Mercury News, George Avalos
http://www.mercurynews.com/business/ci_28378843/housing-crisis-may-cause-nimby-attitudes-wane

Saturday stats

Happy Saturday everyone! Great Santa Clara Count/Silicon Valley real estate market data from MLS Listings Inc.

Silicon Valley Median Home Prices Continue Climbing…but at a Slower Pace

Same trend along the California Pacific Coast

Median home prices rose in most Silicon Valley counties from May 2014 to May of this year. But the month-to-month median prices tell a slightly different story. Only Monterey County showed a significant median price gain from April to May of this year. Other counties saw modest gains or a decline in median price.

Median prices are up in San Mateo and Santa Clara Counties 5% and 3% respectively month-over-month, with San Benito and Santa Cruz Counties down 4% and 9% respectively over the same time period. Monterey County showed the only significant change median price from April with a 17% jump. Closed sales were down 12% in Monterey County, 10% in San Mateo County, and down 2% in San Benito County, when comparing May 2015 to last year. Sales increased 12% in Santa Cruz County and just 2% in Santa Clara County over the same time period. Month-over-month numbers for the same data point also show softening for closed sales in May. Compared to last month, sales dropped 2% in Monterey County, 6% in both San Benito and Santa Clara Counties, and 8% in San Mateo County. Sales showed a modest gain of 5% in Santa Cruz County.

The below chart for total dollars spent compared to closed sales shows the gap between the two data points down from April and coming closer in May.

 



Source: MLS Listings Inc.
http://www.mlslistings.com/media-center/resources/-market-data-reports/udt_931_param_detail/184


Download or view full PDF version of the report here.

Baby boomers will drive demand for apartments, U.S. Fed study shows

(Reuters) - The volatile U.S. multifamily housing market has returned to pre-recession investment levels, driven largely by millennials putting off home-buying and settling for rentals, but in the long term it will be baby boomers that will drive the market as they downsize, according to the Kansas City Federal Reserve.

Millennials, those born between 1980 and 2000, have shown strong interest in apartments as the economy has recovered, partly because of a preference for city living but also because they are delaying marrying and having children due to debt and unemployment.

Kansas City Fed senior economist Jordan Rappaport wrote in a report that the share of young-adult households renting apartments in multifamily units decreased from 2000 to 2007 when looser mortgage credit standards and expectations of rising house prices made home ownership more attractive, but the share has since returned to normal levels.

Older Americans, meanwhile, are "increasingly downsizing" to apartments, generally beginning around age 70 and doing so more often by age 75, Rappaport wrote.

The oldest baby boomers will turn 70 next year, and the number of Americans aged 70 and older will increase by more than 20 million in the next 15 years, the Census Bureau projects.

"In consequence, multifamily home construction is likely to continue to grow at a healthy rate through the end of the decade and thereafter remain well above its level prior to the housing crisis," the report said.

Building permits for the multifamily segment soared 24.9 percent in May, and permits for buildings with five or more units reached their highest level since January 1990.

The report said that builders would need to adapt to the changing trends because while millenials lived in compact city spaces, older buyers tended to want more space and amenities.

Source" Reuters, Megan Cassella
http://mobile.reuters.com/article/idUSKBN0P321F20150623?irpc=932

WTF!! Really! A tent in a Mountain View backyard is renting for $900 a month! YES, you read correctly

I know someone is doing this to prove a point and make a statement about the ridiculousness of  the Silicon Valley market, but damn! $900 a month for a tent in someone's backyard. The scary thing is, with housing being as scarce and high priced as it is, this tent idea might just catch on - who knows?



Housing prices in Silicon Valley are so out of control that you can rent a tent for $899 per month

You may have heard that real estate is expensive in the Bay Area.

This is how expensive: A 9' by 7' tent someone has pitched in their garden is currently going for $899 per month (or $46 per day) in the Silicon Valley town of Mountain View. A tent. In someone's garden. Rents for nearly $900 a month.

And this is considered a steal.

The listing on Airbnb says that "the tent comes with a shower per day." It's also specified that the renter "can eat inside."

The crazy thing is that if you spend enough time researching Silicon Valley housing, this does start to look like a steal.

Buying a pretty basic house in the area, within a good school district, costs over $1 million these days.

However, if you are the type of person considering pitching a long-term tent, living at the gorgeous Big Sur campground seems like the better option, for just $11 a day more.


Source: Buisness Insider, Shane Ferro
http://www.businessinsider.com/the-silicon-valley-housing-crisis-is-epitomized-in-this-listing-for-a-899month-tent-2015-6

China releases 'most wanted' list of economic fugitives

Anyone who kind of knows anything about the real estate market, especially about the market here in the Silicon Valley, knows that part of this white hot seller's market boom is fueled by cash investors. Quite a few of those cash investors are from China. Now I learn that the Chinese government has put out a dragnet to catch the crooks from their country who defrauded the government (for billions!), And IF they are caught, what happens to them won't be pleasant. Let's put it this way, the Chinese government won't just put them in jail for life like would happen to a U.S. citizen caught defrauding the government. If caught they are likely to be tortured  and put out of their misery! Of course officially the Chinese government denies that flat out, but those in the know say otherwise.

Anyhow, the other day I was talking to a colleague and I was telling him my speculation about how this could affect the real estate market here. When these crooks are caught that will be whole lot of money that will no longer be available to buy properties here. And I suspect there are some who ripped off the government who just haven't landed on the gov's radar for whatever reason who will now be too scared to buy U.S. assets so as not to arouse suspicion.





China releases 'most wanted' list of economic fugitives

China has released a list of 100 alleged economic fugitives, the latest move in the government's wide-reaching anti-corruption crackdown.

The "most wanted" list includes photos and identification numbers of former local government officials, police officers, accountants and more, who are suspected of taking bribes, embezzling funds and laundering money. Other alleged crimes include contract fraud and issuing false tax receipts, according to details released by China's Central Commission for Discipline Inspection.

Sixty-six individuals on the list are believed to be in the U.S. and Canada. The remainder are primarily thought to be in Asia, though a handful are scattered in countries including Sudan, Ghana, Belize, and St. Kitts and Nevis.

Since coming to power, Chinese President Xi Jinping has launched a massive anti-corruption campaign that has netted hordes of government officials and company executives. Some critics say it's merely politics and that Xi is removing his opponents, but the crackdown has continued to widen.

Over the past year, the government has ramped up its targeting of rich Chinese suspected of economic crimes through campaigns dubbed "Operation Foxhunt" and "Operation Skynet." Recent efforts are aimed at extraditing suspected fugitives abroad and trying to recover their illicit assets.

Beijing has even sought the help of the U.S. government -- the State Department confirmed last month that China has sent a list of priority suspects to Washington.

Neither government has released details about the extent of their cooperation, but at least one suspected Chinese fugitive has already been detained on U.S. soil.

In March, Shilan Zhao, the ex-wife of a former Chinese official, was arrested in Washington state on charges of immigration fraud and money laundering, the U.S. Department of Justice said in a statement.

Zhao and her ex-husband, Jianjun Qiao -- who is on the list of names China released Wednesday -- were charged in the U.S. with fraudulently obtaining visas through a popular immigrant investor program known as EB-5.

The DOJ claims that the couple bought property in the U.S. with money laundered through a massive grain storage facility in China, where Qiao served as director for 13 years. Qiao remains at large, according to DOJ.

While the U.S. doesn't have an extradition treaty with China, the State Department can still return fugitives to China.

"We must be satisfied that an individual extradited from the United States to another country would receive a fair trial and not be subject to torture or other forms of mistreatment in that country," a department spokeswoman said last month.

Source: CNNMoney
http://money.cnn.com/2015/04/23/news/china-most-wanted-economic-fugitives/

Related:

China's most wanted fugitive is in US custody after being caught with a fake Dutch passport

Maintenance Adds Surprise Costs to Homeownership

When most people — particularly first-time home buyers — think about the costs associated with purchasing a home, they typically consider the costs related to closing on the deal. These closing costs include mortgage, title and insurance fees.

What many homeowners don’t plan for are the costs associated with actually owning the home. If you are buying a home that needs work, you would get estimates and build those expenses into the overall cost of owning the home. But there are more expenses, even for homes that are in move-in condition.

Many home buyers focus much of their attention on the purchase price or the interest rate of the loan. In reality, saving $10,000 on the overall purchase price or getting a 1/8-point lower on the loan won’t translate into cash in your pocket. But hidden expenses — those that come with the territory of homeownership — will certainly affect your finances.

Relocating from one part of the country to another?

Someone moving from Northern California to the suburbs of Connecticut will be blown away to learn how expensive it is to own a home. If you live in an area where air conditioning isn’t necessary, and heat comes from gas-fired HVAC systems, your month utility bills and the regular costs associated with homeownership will be relatively low.

But to heat a home in the Northeast through the winter, you’ll need an oil truck to deliver 150 gallons of oil to your home every five weeks — to the tune of $800 per fill up. And don’t be surprised by an extra $100 per month on your electric bill from May to October if you are using air conditioners. The average consumer, without knowledge of these day-to-day realities, will face severe sticker shock.

Similarly, if you move from the suburbs to the country, expect a septic system and well water. Each of these requires regular maintenance and expenses.

Ask for credits instead of a lower purchase price

To manage these maintenance costs, it’s smart to set some money aside, and one way to do that is to get a credit when you buy the home. Most lenders will allow buyers a credit back from the seller at the closing, up to 6 percent. A reduction structured as a credit back cuts your closing cost expenses and keeps money in your pocket to earmark for home improvement.

If you negotiate a $5,000 price reduction, that’s great. But it won’t help for cash flow purposes. That slight reduction, amortized over the life of the loan, may translate into savings of less than $50 per month. Wouldn’t you rather have that money in your pocket at the closing?

Use your inspection to establish a home maintenance plan

Part of becoming a homeowner is performing regular maintenance. You can’t call your landlord to fix problems once you own a home.

As a part of your home buying due diligence, understand from the property inspector what is required to maintain the home. Most buyers think that the inspection is all about finding faults or issues with the property. While poking holes in the home is certainly one aspect of inspecting, what’s just as important is having the opportunity to learn about the home and its systems.

Use the walkthrough with a licensed inspector and the written report to identify what home improvement issues you will face. Budget and plan for a two-, three- or five-year plan to address issues like a leaky water heater, energy-inefficient single pane windows or a boiler near the end of its usable life.

Know before you go

If you are moving to a new area — whether it is only five miles away or five thousand miles — find out at the beginning of the home-buying journey what to expect once you are a homeowner. Do your due diligence on home improvement and maintenance just as you would school districts or housing stock.

Source: Zillow Blog, Brendon Desimone
http://www.zillow.com/blog/home-maintenance-surprise-costs-177890/

10 Ways To Get That Down Payment

Next to good credit, having the down payment is the most important in buying a home.

Buying a house has always been a dream. And with rising rents across the country, you know you might even save a few bucks every month as a homeowner. Not to mention the tax write off and the long-term equity. If it weren't for that whole down payment thing, you'd be having a housewarming party right now.

If you're a first-time homebuyer or have not purchased a home in the last two years, an FHA loan may be your best bet because you only need to come up with 3.5 percent down. On a $250,000 house, that's $8,750. Seem impossible? Here are 10 ways to come up with the cash.

1. Side work

Now don't give the idea of side work the side eye. We don't mean anything untoward here. The reality is you can take on some extra work in your field or make money by monetizing a hobby.

"No matter how mundane or insignificant your talents seem, there are other people out there who don't have those talents — and they might be willing to pay you for your skills," said Forbes. "If you're good at making things, look into selling your wares on Etsy. Woodworking, knitting, sewing, and graphic design are all in demand. Check out Taskrabbit, a site that hires you out to do household chores and errands for people in your community. Things like assembling IKEA furniture, shopping, pet sitting, and more can yield a surprising amount of money to add to your down payment fund."

2. State down payment assistance programs

States like Colorado and California offer programs for down payment assistance that are typically tied to income limits. California's CalHFA agency offers CHDAP, "a deferred-payment junior loan -- up to 3% of the purchase price, or appraised value, whichever is less" for down payment and/or closing costs.

Colorado's CHFA program is a grant of up to three percent of "up to 3 percent of your first mortgage loan to help cover some of your down payment and/or closing costs."

The U.S. Department of Housing and Urban Development's (HUD) website has a state-by-state list of programs.

3. County and city down payment assistance programs

"At least one down payment program is available in all 3,143 U.S. counties, and more than 2,000 counties have more than 10 down payment programs available to prospective homebuyers," said HousingWire. For the report, RealtyTrac looked at 2,290 down payment programs from Down Payment Resource's Homeownership Program Index and found out of more than 78 million U.S. single family homes and condos, more than 68 million would qualify for a program. That equates to an average of $11,565.

You can get more information and check eligibility here.

Individual cities may also have programs. For example, the city of Austin, TX offers down payment assistance for qualified applicants in the form of a 0 percent deferred loan.

4. Family

Hope you're in good graces with your family, because they might just give you the funds you need to buy your home. "Parents can give up to $13,000 annually to their children without having to pay gift taxes," said Money Crashers. A family member or friend can also give you a loan, but you'll have to "draw up specific repayment terms" to avoid tax issues. And, there are documentation requirements and lender specifics with either option.

"If a parent, grandma or whoever gives you the money, you need to fill out a gift letter, validate it with a copy of the check and your deposit receipt into your bank account," said My Mortgage Insider.

5. USDA Mortgages

Getting down payment assistance from an agency that exists to support and promote rural areas might not sound relevant if you're looking to buy in the ‘burbs, but the USDA offers a zero-down loan known as a Section 502 mortgage that is "not just a ‘rural loan' — it's available to buyers in suburban neighborhoods, too," said The Mortgage Reports. "The USDA's goal is to reach ‘low-to-moderate income homebuyers,' wherever they may be. College towns including Christiansburg, Virginia; State College, Pennsylvania; and even suburbs of Columbus, Ohio meet USDA eligibility standards. So do the less-populated suburbs of some major U.S. cities."

6. Friends and loved ones

If you have a birthday, anniversary, or other special occasion coming up, forgo the expensive dinner out, the birthday cake, and the new socks you don't need. Register instead on Down Payment Dreams, and create a place where people can help you get the funds together.

7. Your IRA

Money you've already put away could be the answer to your down payment conundrum. "Tax laws allow you to use up to $10,000 in IRA funds as a down payment if you've never owned a house," said Bankrate. "If you're married and you both are first-time buyers, you each can pull from your retirement accounts, meaning a potential $20,000 down payment."

There is no penalty for early withdrawal, they added, "but you may owe tax on the money depending on the type of IRA," so ask your tax advisor before pulling the trigger.

8. Your 401(k)

If you have a 401(k), you can tap it to pull out funds for a down payment. But, you'll need to pay them back. The 401(k) loan "typically allows a person to borrow up to 50 percent of his or her account balance up to a maximum of $50,000 but requires it be repaid within five years—though the repayment schedule may be extended if you're using the money for a down payment on a home," said Forbes. "The loan doesn't have to be approved by a bank, which means you can usually get your hands on the money quickly and without a credit check. Plus, interest rates may be lower than on standard bank loans."

9. VA loans

Are you a veteran or currently serving the country? If so, you may be able to get a zero down payment loan from the U.S. Department of Veteran Affairs (VA). The VA offers a "basic entitlement" to "each eligible veteran" of $36,000. "Lenders will generally loan up to 4 times a Veteran's available entitlement without a down payment, provided the Veteran is income and credit qualified and the property appraises for the asking price," said the VA.

10. Good ‘ole savings

You may have been trying to save enough money to buy a house for years. But some smart strategies and strict cutbacks can make a real difference. Trade your cable for Netflix. Take your lunch instead of buying. Trade your gas-guzzler for a hybrid. You'll be surprised how much money you can save. Click here to see how more about how two different people saved $30,000 in a matter of months.

Still not where you need to be? Check out Movoto for some more creative ideas for saving money toward your down payment.

Source: RealtyTimes, Jaymi Naciri
http://realtytimes.com/consumeradvice/buyersadvice1/item/35979-20150625-10-ways-to-get-that-down-payment

Mortgage Loan Documents To Change August 1st

It's good to see steps being taken to simplify the loan process and to make things more clear for borrowers.


On August 1, 2015, loan documents to homebuyers are going to be simpler and easier to understand. Two new forms, a Loan Estimate and a Closing Disclosure, will replace the HUD-1 Settlement Statement, the Good Faith Estimate, and the Truth-in-Lending disclosure form.

The purpose of the new forms is to simplify closing information and make it simpler for consumers to compare their estimated costs to final costs.

Created by the Consumer Financial Protection Bureau with input from consumers and industry groups such as the NAR, the new forms will hold lenders to three-day deadlines so that consumers will have the information they need well before closing.

The three-day rule applies to both the Loan Estimate and the Closing Disclosure. Buyers should receive the former three days after applying for a loan and the latter three days before closing. Buyers should take this time to look carefully for any changes between the Loan Estimate and the Closing Disclosure.

Consumers will have a more transparent experience, including less obfuscating jargon and greater clarity concerning closing costs. On the new forms, the interest rate, monthly payments, and the total closing costs will be clearly presented on the first page, making it easier to compare mortgage loans and choose the one that is right for them.

Important information will also be highlighted, including the costs of taxes and insurance and how interest rates and payments may change in the future. This information will help consumers decide whether they can afford the mortgage loan and the home, now and in the future.

The new forms also warn consumers about features they may want to avoid, like penalties for paying off the loan early or increases to the mortgage loan balance even if payments are made on time.

Consumers will appreciate that the first pages of the new Loan Estimate and the new Closing Disclosure look the same, so they can more easily compare costs. If discrepancies are found, consumers can contact their real estate agents or their lenders for more information.


Source: RealtyTimes, Blanche Evans
http://realtytimes.com/consumeradvice/mortgageadvice1/item/35801-20150619-mortage-loan-documents-to-change-august-1st

First-Time Buyers Fuel Latest Sales Boost

Existing-home sales rose in May to their highest pace in nearly six years, largely attributed to a big rise in the number of first-time home buyers, according to the National Association of REALTORS®' latest housing report, released Monday. All major regions saw sales increases in May, with the Northeast seeing the most notable rise.

Existing-home sales – measured as completed transactions of single-family homes, townhomes, condos, and co-ops – climbed 5.1 percent to a seasonally adjusted annual rate of 5.35 million in May. Sales are 9.2 percent above last year at this time.

The market share of first-time home buyers rose to 32 percent of transactions in May, matching the highest share since September 2012. A year ago, first-time buyers represented 27 percent of all buyers, NAR reports.

"The return of first-time buyers in May is an encouraging sign and is the result of multiple factors, including strong job gains among young adults, less expensive mortgage insurance and lenders offering low downpayment programs," says Lawrence Yun, NAR's chief economist. "More first-time buyers are expected to enter the market in coming months, but the overall share climbing higher will depend on how fast rates and prices rise."

As the supply of homes remain tight, homes are selling fast and price growth in many markets continues to teeter at or near double-digit appreciation, Yun notes. "Without solid gains in new home construction, prices will likely stay elevated – even with higher mortgage rates above 4 percent," Yun says.

5 Stats to Gauge the Market

Here's an overview on key market conditions from NAR's latest existing-home sales report:

1. Inventory: Total housing inventory rose 3.2 percent to 2.29 million existing homes available for sale by the end of May. That is 1.8 percent higher than a year ago. Unsold inventory currently is at a 5.1-month supply at the current sales pace, down from 5.2 months in April.

2. Home prices: The median existing-home price for all housing types was $228,700 in May – nearly 8 percent above May 2014 home prices.

3. Days on the market: Properties typically stayed on the market for 40 days in May, up from 39 days in April. Still, that marks the third shortest time since NAR began tracking days on the market in May 2011. Forty-five percent of homes sold in May were on the market for less than a month.

4. All-cash sales: All-cash sales comprised 24 percent of transactions in May, down considerably from a year ago when they made up 32 percent of transactions. Individual investors, who account for the  bulk of cash sales, purchased 14 percent of homes last month, down from 16 percent a year ago. Sixty-seven percent of investors paid cash in May.

5. Distressed sales: Foreclosures and short sales remained at 10 percent for the third consecutive month in May. Distressed sales are below the 11 percent share a year ago. Seven percent of May sales were foreclosures and 3 percent were short sales. Foreclosures sold for an average discount of 15 percent below market value in May while short sales were also discounted 16 percent.

Regional Breakdown

The following is a snapshot of how existing-home sales fared across the country in May:

• Northeast: existing-home sales rose 11.3 percent to an annual rate of 690,000. Sales are now 11.3 percent above a year ago. Median price: $269,000, up 4.8 percent above May 2014 levels.
• Midwest: existing-home sales rose 4.1 percent to an annual rate of 1.27 million in May. Sales are 12.4 percent above May 2014. Median price: $181,900, up 9.4 percent from a year ago.
• South: existing-home sales increased 4.3 percent to an annual rate of 2.18 million in May, and are 6.9 percent above year ago levels. Median price: $198,300, up 8.2 percent from a year ago.
• West: existing-home sales increased 4.3 percent to an annual rate of 1.21 million in May, and are 9 percent above a year ago. Median price: $324,000, up 10.2 percent above May 2014.

Source: RealtorMagazine Online
http://realtormag.realtor.org/daily-news/2015/06/22/first-time-buyers-fuel-latest-sales-boost

The important of home staging

Nothing impresses first time home buyers more than a well maintained and Staged home. Often times it makes the difference in the home getting sold and for more money $$$!

Happy Father's Day from The Mimi Wang Team

Happy Father's Day Everyone!

Chinese Dominate as Buyers of U.S. Real Estate

Chinese buyers have surpassed Canadians as the most dominant foreign home purchasers in the United States, according to the National Association of REALTORS®' 2015 Profile of Home Buying Activity of International Clients, released this week.

Read more: Foreign Buyers Spend More on U.S. Real Estate
Home buyers from China comprised 16 percent of international buyers who purchased single-family homes and condos in the 12-month period ending in March, up from 12 percent in 2013. On the other hand, Canadians comprised 14 percent of international buyers, down from 23 percent in 2013, NAR reports.

For several years, Canadians have been the biggest foreign buyers of U.S. homes. But Canadian sales have fallen, partially due to the weak Canadian currency, The Wall Street Journal reports.

Chinese buyers aren't just buying more properties, they're also spending more than other international buyers too. Chinese buyers purchased $28.6 billion of U.S. properties in the 12-month period ending in March compared to $11.2 billion of properties purchased by Canadians, NAR’s report shows.

Overall, international buyers, which make up only 4 percent of existing home sales, spent on average $499,600 on a property last year -- compared to the average U.S. home price of $255,600. Chinese buyers spent the most on their U.S. home purchases, averaging $831,800. The average price of home purchased by Canadians was $380,300.

The increase in Chinese buyers reflects a growing view from the Chinese who view American real estate as a relative safe haven, where rules surrounding owning property are well defined and the economy is viewed as strong and stable, Jed Smith, NAR's managing director of quantitative research, told The Wall Street Journal.


Source: RealtorMang Online
http://realtormag.realtor.org/daily-news/2015/06/19/chinese-dominate-buyers-us-real-estate?om_rid=AAFmZk&om_mid=_BVhHTEB9C3mrdL&om_ntype=RMODaily

Calif. Ordered to Repay $331M Housing Fund

A court has ruled that the state of California must return the $331 million earmarked to help troubled home owners that lawmakers used instead to help repair the state's budget.

Read more: California Sued for Diverting Housing Funds

State court judge Timothy M. Frawley ruled that state lawmakers improperly appropriated a portion of the money California received in 2012 as part of a $25 billion nationwide settlement with the nation's largest banks over mortgage servicing improprieties. The lawsuit had been filed by three nonprofit groups who offer counseling to home owners, who first charged that the state had misappropriated funds away from helping home owners avoid foreclosure through counseling and other educational services. Instead, they charged, the state allocated the funds for other purposes from 2012 to 2014, such as retiring debt issued by low-income housing authorities. 

California's share of the nationwide settlement was $350 million. Judge Frawley ruled that the government had misused $331 million of that settlement for other purposes than what was intended. He ordered the state to return the amount to the special home owner fund "as soon as there is sufficient appropriation 'reasonably' and 'generally' available for such purpose."

Similar lawsuits against states misappropriating funds from the national mortgage settlement also are likely, says Robert Gnaizda, general counsel to the National Asian American Coalition – one of the three groups that served as a plaintiff on the lawsuit, along with the COR Community Development Corp. and the National Hispanic Christian Leadership Conference.

"We've identified about a dozen states where it might be appropriate to take action," Gnaizda told The New York Times. "We decided not to go forward with other actions until this case was decided."

Source: RealtorMag Online

http://realtormag.realtor.org/daily-news/2015/06/18/calif-ordered-repay-331m-housing-fund?om_rid=AAFmZk&om_mid=_BVgxU6B9C1GCyO&om_ntype=RMODaily

Foreign Buyers Spend More on U.S. Real Estate

Fewer foreign buyers, but foreign buyers that remain are spending more on U.S. real estate.

Fewer international buyers are flocking to the U.S. to purchase real estate, but those who are, tend to spend more on their home purchases. The total sales dollar volume from international home buyers climbed 13 percent this year compared to last year – at a time when the total unit sales from international home buyers decreased, according to the National Association of REALTORS®' 2015 Profile of Home Buying Activity of International Clients.

From April 2014 through March 2015, total international sales were estimated at $104 billion, trumping last year's $92.2 billion. This represents 8 percent of the total existing-home sales dollar volume, according to NAR's report.

"In 2014, sales transaction to buyers outside of the U.S. dropped 10 percent, possibly due to the strengthening of the U.S. dollar in relation to international currencies and weakening foreign economies," says NAR Chief Economist Lawrence Yun. "However, the amount of money spent has increased; this means international purchasers in the U.S. have become an upscale group of buyers, spending more money on fewer homes."

Last year, five countries alone accounted for 51 percent of all purchases by international buyers: China, Canada, Mexico, India, and the United Kingdom.

Buyers from China exceeded all other countries in terms of their appetite for U.S. real estate, purchasing an estimated $28.6 billion worth of U.S. property, according to NAR's report. Canada buyers followed with $11.2 billion in purchases and then India at $7.9 billion; Mexico with $4.9 billion; and the United Kingdom at $3.8 billion.

International buyers tended to spend more on their home purchases than the average U.S. home buyer. International buyers spent, on average, $499,600 on their home purchases compared to the overall U.S. average home price of $255,600. Chinese buyers were found to most often spend the most, with an average price of $831,800 on their U.S. home purchases.

More REALTORS® are reporting working with international clients, up from 28 percent in 2013 to 35 percent in 2014. Four states accounted for half of all international sales: Florida, California, Texas, and Arizona, according to NAR's report.

Source: RealtorMag Online

http://realtormag.realtor.org/daily-news/2015/06/18/foreign-buyers-spend-more-us-real-estate?om_rid=AAFmZk&om_mid=_BVgxU6B9C1GCyO&om_ntype=RMODaily

Property values go up, as do assessments

With a hot seller's market such that we're seeing here in the Silicon Valley, comes great property values, and with greater property values comes greater property taxes. It's kind of a downside to owning a home, but the money is need to pay for local services and what-not. For first time home buyers that express angst about buying a home due to property tax, I always remind them that their property can be written off against their personal income taxes.


Property values have been skyrocketing throughout the region, and it's not a surprise that the assessor is close behind.

Of the county's 415,000 owners of single family homes and condominiums, 36,000 can expect a bump, and the majority of those will see a double-digit increase. The tax hikes reflect the latest gains in the market value of homes that sank below their purchase price during the Great Recession, resulting in temporarily lower taxes.

Wednesday's announcement "confirms the continued strength of Silicon Valley's economy," Stone said. "For the first time in years, every city in Santa Clara County experienced a year-over-year increase in market values."

He called the new round of assessments "good news for property owners, because the market is restoring equity they had lost. For every $1 of additional property tax they pay, they receive an additional $100 of equity that was lost during the recession. The way I put it is, 'You give me a dollar, I'll give you a hundred.' "

Notice of the increases in assessed value will be mailed to homeowners June 26.

This is the fourth consecutive year that the number of residential properties assessed below their purchase price has declined.

Three years ago, 134,000 of the county's properties were worth less than what their owners paid for them. Two years ago, that number fell to 79,000, and last year to 36,000. This year, 21,000 remain below their original purchase price. But 13,500 have completely recovered their lost value.

Even the 379,000 homeowners who already stand at market value can expect a 1.99 percent increase in assessed valuation. It's a keeping-up-with-inflation bump that's allowed under the provisions of state Proposition 13, which was passed in 1978.

Under the companion Proposition 8, passed that same year, property that falls below the purchase price is reassessed at the current fair market value. This week's announcement by Stone is a response to the continuing rise in median sale prices, though specific valuations also take other factors into consideration, including geographic location, the number of bedrooms in a home and the quality of neighborhood schools.

Taken countywide, the median sale price rose 15.6 percent over the previous year. Looked at by municipality, the median increase varies:

by 20 percent in the cities of Santa Clara and Cupertino; 10 percent in Los Gatos and Almaden; and 3 percent in Gilroy.

The report issued Wednesday by the assessor also shows that the market value of properties in Los Altos, Mountain View, Cupertino and Palo Alto have risen by more than 40 percent since the recession began in 2008.

The recovery hasn't been so robust in other parts of the county: one third of Gilroy's properties are still assessed below their purchase price, and the same is true for 19 percent of properties in San Jose.

"The properties that got hit the hardest during the recession were in South County: Gilroy, Morgan Hill, San Jose and to a certain extent Milpitas," Stone pointed out. In some parts of South County "the market value declined as much as 60 percent during the recession. That's a pretty big hole."

But the county's homeowners continue to dig their way out.

David Ginsborg, spokesman for the assessor's office, said the June 26 notice will give each homeowner his or her new assessed value and a PIN number to look up the property on the assessor's website. "People want to know, 'What do I do?' Wait until you get the notice on or after June 26, then you can do everything online."


Source: MercuryNews, Richard Scheinin
http://www.mercurynews.com/business/ci_28332338/property-values-go-up-do-assessments

Report: 90% of Properties Now Have Equity

A new report by CoreLogic shows that more and more homeowners now have plenty of equity in their home. What does this mean? In a nutshell it means that housing market is doing well and the economy overall is past the housing bubble collapse/mess from 2008. 

Allot of homeowners here in the Silicon Valley are sitting on allot of equity, but many don't want to sell (for whatever reason) and because they don't want to sell, it creates an inventory shortage, which leads to home prices going higher, which leads to more equity. Of course none of that would be possible without the robust job market that we are experiencing here in the Silicon Valley/Santa Clara county area with the likes of Google, Apple and Facebook always looking to hire new tech talent.



As home prices rise, more home owners are regaining equity. During the first quarter of this year, about 254,000 properties regained equity, according to CoreLogic’s latest equity report. That now brings the total number of residential properties with a mortgage that have equity to about 44.9 million – or 90 percent – by the end of the first quarter.

“About 90 percent of home owners now have housing equity and, as a result, have experienced an increase in wealth, which can spur additional consumption and investment expenditures,” says Frank Nothaft, chief economist for CoreLogic. “The remaining 10 percent of owners with negative equity will find their home value rising while they continue to pay down principal on their amortizing mortgage loan.”

The still elevated number of home owners who have negative equity remains a concern, however. The number of negative equity households stood at 5.1 million, or 10.2 percent of all properties with a mortgage in the first quarter of this year, according to CoreLogic’s report. That represents a slight drop from 5.4 million homes, or 10.8 percent, that had negative equity in the fourth quarter of 2014.

“Many home owners are emerging from the negative equity trap, which bodes well for a continued recovery in the housing market,” says Anand Nallathambi, president and CEO of CoreLogic. “With the economy improving and home owners building equity, albeit slowly, the potential exists for an increase in housing stock available for sale, which would ease the current imbalance in supply and demand. There are still about 5 million home owners who are underwater and we estimate that a further 5 percent appreciation in home values across the U.S. would reduce the number of owners with negative equity by about one million.”

The following states had the highest percentage of properties in the positive equity territory by the end of the first quarter:

• Texas: 97.7%
• Hawaii: 96.9%
• Alaska: 96.8%
• Montana: 96.8%
• North Dakota: 96.2%

In general, the majority of positive equity properties are centered at the high end of the housing market, according to the report. For example, 94 percent of homes valued at greater than $200,000 have equity, compared with 85 percent of homes valued at less than $200,000.


Source: RealtorMag Online
http://realtormag.realtor.org/daily-news/2015/06/17/report-90-properties-now-have-equity?om_rid=AAFmZk&om_mid=_BVgbyqB9CyjZbQ&om_ntype=RMODaily

What millennials prefer

Renters Face Steep Costs in Job Havens

San Jose, right at the heart of Silicon Valley has the most unaffordable rental market in the nation according  to a report by Madvalorem. Just another reason to buy a home rather than continue to get robbed by a greedy landlord. 


Some of the fastest growing job markets are also becoming some of the least affordable with rental costs, according to a new report by Madvalorem, a real estate database for property searches. High demand is leading rental costs to soar.

Madvalorem, in analyzing Census and other data, provides the following snapshot of rental costs among the top hiring job markets:

1. San Jose, Calif.
Median rent: $2,570
Income to rent: 37.69%

2. San Francisco, Calif.
Median rent: $3,715
Income to rent: 58.97%

3. Raleigh-Durham, N.C.
Median rent: $1,051
Income to rent: 23.16%

4. Washington, D.C.
Median rent: $2,254
Income to rent: 41.09%

5. Seattle, Wash.
Median rent: $1,791
Income to rent: 32.92%

6. Boston, Mass.
Median rent: $2,900
Income to rent: 64.92%

7. Austin, Texas
Median rent: $1,463
Income to rent: 32.54%

8. Baltimore, Md.
Median rent: $1,600
Income to rent: 46.39%

9. Denver, Colo.
Median rent: $1,595
Income to rent: 38.04%

10. Salt Lake City, Utah
Median rent: $999
Income to rent: 26.14%


Source: RealtorMag Online
http://realtormag.realtor.org/daily-news/2015/06/15/renters-face-steep-costs-in-job-havens?om_rid=AAFmZk&om_mid=_BVfxYmB9CqZN0o&om_ntype=RMODaily

Top 10 Home Projects

Where 'Zombie' Foreclosures Still Lurk

A "zombie" foreclosure is a property in which the homeowner walks away from the property without paying the mortgage and the property eventually gets foreclosed. I haven't seen one of these here in the Silicon Valley in quite some time, but I thought this article interesting enough posts for your reading enjoyment.



The share of "zombie" foreclosures are falling, but these owner-abandoned properties still lurk and are contributing to neighborhood blight in pockets across the country.

About 24 percent of all active foreclosures – or 127,021 – nationwide have been vacated by home owners prior to the foreclosure being completed. These so-called zombie properties will likely wind up as short sales, foreclosure auction sales, or bank-owned sales in the future, according to RealtyTrac's second quarter Zombie Foreclosure Report.

Still, zombie foreclosures fell 10 percent nationwide in the second quarter compared to a year ago.

"A growing number of states and cities have enacted public policy measures to combat the problem of zombie foreclosures, and we are seeing the results of those efforts in the overall decrease nationwide as well as in several hard-hit markets such as Chicago, Miami and Cleveland," says Daren Blomquist, vice president at RealtyTrac. However, "as banks push through long-deferred foreclosures that are more likely to be owner-vacated this year, we are seeing a somewhat surprising increase in zombie foreclosures in markets with overall low foreclosure rates such as Los Angeles, Houston and Boston."

The average estimated market value of an owner-vacated foreclosure is 22 percent below the average estimated market value of an owner-occupied foreclosure. "These zombies are contributing to blight in neighborhoods across the country," Blomquist says.

The highest rates of zombie foreclosures among 183 metros analyzed were in:

1.) Atlantic City, N.J.: one in 130 housing units
2.) Trenton, N.J.: one in 166 housing units
3.) Tampa, Fla.: one in 218 housing units
4.) Binghamton, N.Y.: one in every 260 housing units
5.) Ocala, Fla.: one in every 262 housing units

Some markets have seen large increases of zombie foreclosures in the past year, according to RealtyTrac's report. Notably, the following markets have seen the largest spikes in zombie foreclosures from a year ago: New York (up 38 percent), Los Angeles (up 39 percent), Houston (38 percent), Philadelphia (up 19 percent), and Boston (up 14 percent).


Source: RealtorMag Online
http://realtormag.realtor.org/daily-news/2015/06/11/where-zombie-foreclosures-still-lurk?om_rid=AAFmZk&om_mid=_BVeejGB9CnYC8V&om_ntype=RMODaily

For Sellers, Emotions Trump More Money

I know it is a competitive market. It is in fact it's still a hot seller's market with many home seeing multiple offers. Realtors and anyone looking to buy a home here in the Silicon Valley knows this. On some of my more recent listings I have seen all cash offers. And quite often these cash buyers are investors, and it is this situation that makes it hard for the married couple, first time home buyer, with 20% down loan who are looking for a home for themselves to raise their kids.

Having said that, there is something to be said for making that connection to the seller's emotion, and a new study conducted by Coldwell Banker seems to prove that. According to the study more sellers are willing to judge and accept an offer based on other factors than just more money as opposed to years past. 

In fact I closed a deal with a first time home buyer client of mine who wrote a personal letter addressed to the sellers telling them how much she loved the home, the neighborhood, and complemented the sellers on their sense of style in decorating the home and how well they maintained it. Even though my buyer client's offer was not the highest (but still pretty good compared to other offers), the sellers liked the fact that my buyer was being so open and honest about her desire for the home and accepted her offer. 

Sometimes even showing up to an open house, if the seller is there, can make a difference. If you can make that face to face contact with the seller and letting them to get to know you and your situation, often times they will remember you when the offers come in. I've seen some buyers who did this and ended up successfully getting the house. Go figure.

So against the investors with too much cash burning a hole in their wallet, there is hope people.



Home sellers today are twice as likely to choose an offer based on emotion rather than money alone compared to the years prior to the recession, according to a new survey of more than 1,500 home sellers released by Coldwell Banker Real Estate LLC, which analyzed real estate trends in the past decade.

Read more: 3 Mistakes Sellers Often Make
Since 2014, more than one in four sellers nationally sold their home in less than two weeks. But despite the higher prevalence of multiple bids and offers above asking price, sellers judge an offer based more on emotions than the extra money, the study found.

"There is a notable difference in seller psychology today compared to 10 years ago," says Budge Huskey, president and chief executive officer for Coldwell Banker Real Estate LLC. "The national housing market has changed significantly over the past decade, and seller sentiments have evolved. Home sellers often want to feel emotionally connected to the buyer. These findings should give solace to buyers in highly competitive markets who may present a compelling story as to why they should be the next owners of the home."

Before the recession, about 20 percent of sellers accepted an offer based on emotion rather than money alone. However, from 2006 to now, the number has climbed to 36 percent.

"While housing has clearly steadied, we have all wondered how the recession might impact home sellers, and we now have additional insight," Huskey said. "During this recovery, sellers are more aware that their home, which played such a critical role in their lives, will have the same emotional impact on the next occupants. Today, they have more information than ever and want to more actively participate in the sale of their home."

During the recession and its aftermath, more sellers accepted the first offer they received – a notable difference from today. Now, only 46 percent of home sellers accept the first offer they receive – which marks a 22 percent decrease, the survey found.

Source: RealtorMag Online
http://realtormag.realtor.org/daily-news/2015/06/11/for-sellers-emotions-trump-more-money?om_rid=AAFmZk&om_mid=_BVeejGB9CnYC8V&om_ntype=RMODaily

Century 21 Finds World’s Worst Garage Band

Century 21, the company I work for as a Realtor has a new marketing campaign in which they feature a really, really crappy garage bad making all kinds of terrible noise as a reason to move. I've seen all kinds of marketing pitches and ad campaigns in this business, but this is a new one for me.



To coincide with summer concert season, Century 21 has launched a social media campaign to sniff out the worst garage bands globally who are terrorizing neighborhoods with their awful music.  The idea for the campaign is that if someone lives near one of the world's worst garage bands, Century 21 can help you move.

Century 21 selected four finalists, from South Florida to the United Kingdom (who they say wanted to be on the list too), and has unveiled videos of each of the bands this week on social media channels. Each short video showcases the band's "special talents," Century 21 notes. Also, each of the videos end with the message: "If you live within earshot, we'll help you move immediately."

To view the worst of the worst, use the hashtag #WorldsWorstGarageBand on social media. Century 21 is having the public vote for a winner. Voting is open through July 29.

Source: RealtorMag Online
http://realtormag.realtor.org/daily-news/2015/06/11/century-21-finds-world-s-worst-garage-band?om_rid=AAFmZk&om_mid=_BVeejGB9CnYC8V&om_ntype=RMODaily

Local Realtors giving back

We Realtors do give back to the community in anyway we can. The Silicon Valley Association of Realtors, SILVAR, (the organization I am a part of) grants scholarships to a number of graduating high school students for college. This year 18 kids were awarded scholarships by SILVAR. Congratulations to all of you and good luck on your future careers!


The Silicon Valley REALTORS® Charitable Foundation, the charitable arm of the Silicon Valley Association of REALTORS® (SILVAR), presented scholarship awards to 18 graduating seniors from public high schools in Silicon Valley at the end of the 2014-2015 school year. Each student received a $1,000 scholarship.

Now on its 16th year, the REALTOR® scholarship program recognizes students who have exemplified outstanding achievements in academics, extracurricular/employment activities and community involvement. The selection committee included representatives from the local business community, area high schools, area colleges and SILVAR.

Students who received scholarships from the Charitable Foundation, the schools from which they graduated, and the colleges and universities they plan to attend are: Greg Pommier, Cupertino High School (UC Berkeley); Brianna Clarice Clark, Fremont High School (Tuskegee University); Daniel Rothenberg, Gunn High School (San Francisco State University); Arisa Ananda Faron, Homestead High School (Cal Poly - San Luis Obispo); Aleksandra Vojvodic, Leigh High School (UCLA); Jhosseline Guardado, Los Altos High School (UC Davis); Laurel Michelle Finkle, Los Gatos High School (UCLA); Jessica Zheng, Lynbrook High School (Princeton University); Caroline Kelly, Menlo-Atherton High School (University of Michigan); James Mullen, Monta Vista High School (UCLA); Marisa Noelle Gong, Mountain View High School (Washington University in St. Louis); Promise Lee, Palo Alto High School (UC Davis); Kevin Wei, Prospect High School (UC San Diego); Vicente Lozano Lovelace, Santa Clara High School (UC Santa Cruz); Yun Seo (Jennifer) Kim, Saratoga High School (New York University); Tuyen Nguyen, Westmont High School (UC Santa Cruz); Rachanon Wajanakunakorn, Wilcox High School (Cal Poly - San Luis Obispo); and Rachel Bontempi, Woodside High School (UC San Diego).

The following SILVAR members who presented the scholarships to the recipients at their respective senior award ceremonies were Chris Alston (Keller Williams), Fe Manzano (Century 21 M&M and Associates), Jimmy Kang (PNC Mortgage), Nina Daruwalla (Coldwell Banker), Cassie Maas (Alain Pinel Realtors), Dani Fletcher (Sereno Group), Suzanne Yost (Alain Pinel Realtors), Mark Burns (Referral Realty), Mary Tan (Coldwell Banker), Robert Reid (Keller Williams), Sue Bose (Referral Realty), David Tonna (Alain Pinel Realtors), Russell Morris (Coldwell Banker) and Theresa Loya (Coldwell Banker).

The scholarship awards presented by the Charitable Foundation are made possible by donations from REALTOR® and affiliate members of SILVAR. Since its creation, the scholarship program has provided $288,000 in scholarships to high school seniors in Silicon Valley.

Why Renters May Be Losing Out

Here in Santa Clara County/Silicon Valley, rent is at an all time high. Many of my first time home buyer clients came from apartments, so I am well aware of the desire by many apartment dwellers to own something of their own. Like the article from RealtorMagazine Online points out, I know two of the biggest problems renters face is qualifying for a mortgage and the down payment.

My advice to any renters out there looking to buy, keep working to clean up your credit and keep saving that money for a down payment. You'll get there soon enough.

Why Renters May Be Losing Out

Americans are better off buying than renting in the majority of places across the U.S., but the number of renters continues to be at record highs.

Realtor.com® finds that it's cheaper to buy rather than rent in 80 percent of the counties in the U.S. That's because renters continue to face sharp price increases. A record number of renting households are leading to fewer apartment vacancies, which in turn is continuing to push rents upward, notes Jonathan Smoke, realtor.com®'s chief economist, in recent commentary at realtor.com®.

But many renters – with home ownership aspirations – are struggling to break into the housing market. Indeed, 81 percent of renters indicate they would prefer to own a home if they could afford to do so, according to the Federal Reserve's Survey of Household Economics and Decisionmaking. Fifty percent of renters reported that they lack the funds for a down payment and 31 percent of renters say they could not qualify for a mortgage.

Other reasons given for renting included 27 percent of renters saying it was cheaper for their household; 25 percent who thought renting was more convenient; and only 12 percent said they rented because they preferred it over owning.

The amount of income renters may have influenced their responses for why they choose to rent. For example, for renters earning less than $40,000 year, their top responses on why they rent were because they were unable to save for a down payment (52%) or qualify for a mortgage (35%). On the other hand, for renters who earn more than $100,000 a year, their top responses for renting were because they believed renting was more convenient (39%) or they preferred renting to owning (17%). Twenty-nine percent in the $100,000 and up earner group said they plan on moving in the near term.

Source: RealtorMag Online
http://realtormag.realtor.org/daily-news/2015/06/11/for-sellers-emotions-trump-more-money?om_rid=AAFmZk&om_mid=_BVeejGB9CnYC8V&om_ntype=RMODaily

The 5-Step Plan for Buying a Vacation Home

Do you dream of owning a vacation home, but find the idea of buying one too intimidating? It’s actually easier than you may think. Here’s a guide to help you analyze your options.

1. Match housing choices to your lifestyle

Many people assume they must own a primary residence before owning a vacation home, but this isn’t a rule you must follow. What’s really important is matching your housing choices to your lifestyle.

You may live in a city and want lots of space that you can’t afford there. You could rent a modest condo in the city, and buy a large vacation home outside the metro area.

Or you may live in a large country house and want to enjoy city life as much as you can. In that case, you could own your country home and also buy a vacation condo in the city.

Either way, the financing and tax implications are almost the same.

2. Determine how you’ll use your vacation home

From a financing and tax standpoint, you need to consider how you intend to own and use your property. You have three options:

• Primary residence. You can buy for as little as 3 percent down (if your loan doesn’t exceed $417,000), mortgage rates are the lowest they can be, and you get significant homeowner tax benefits.
• Second home. You can use your second home any time you want, but lenders won’t let you rent the home. Buy for as little as 20 percent down, and qualify for the loan using your full primary residence cost plus your full second home cost. Mortgage rates and tax benefits are the same as primary residences.
• Investment property. You can rent the home, plus use it when it’s not rented. Rates are .25 percent to .375 percent higher than second home rates, and your down payment usually starts at 30 percent. You qualify for the loan using your full primary residence cost plus your full investment home cost, but you can use rental income to help qualify. Tax treatment is less beneficial, but the extra income can help with affordability.

3. Understand the total cost of owning a vacation home

You can determine what you can afford in seconds. Then you’ll find a lender to formally analyze the cash available for down payment, closing costs, and reserves. You’ll also calculate the total monthly cost on your existing home (whether you rent or own), plus the total monthly cost on the vacation home.

You also need to plan for personal budget items that lenders don’t use in their qualifying calculations:

• Gas, electric, cable TV, and internet
• Furniture and housewares
• Travel costs to your vacation home
• Total cost of property maintenance items like cleaning, landscaping, and pool/spa upkeep

4. Review monthly and transactional cost line items

Suppose you live in San Francisco and want to purchase a home in the wine country of Sonoma County, CA for $600,000. Here’s how much it would cost as a primary residence, second home and investment property.

5. Make an offer using a local realtor and lender

Many vacation properties are in specialized local markets, so it’s best to find local real estate agents and lenders.

Your real estate agent will clarify local transaction fees, taxes and commissions, as well as advise on local zoning and property rental rules. For example, the town of Sonoma doesn’t allow short-term rentals for vacation homes, but other towns in Sonoma County do allow this.

In destination areas, real estate agent commissions can be higher and can also be seller- or buyer-paid, depending on the area. Only a local expert can advise properly. And, of course, they will structure your offer for you, and negotiate on all facets of the deal that are a priority to you.

Likewise, local lenders will be comfortable with appraisals and lending in rural areas. Appraisals are more difficult in less populated areas because comparable sales can be old and hard to find.

If you follow these steps, your closing will be a snap, and you’ll be relaxing in your vacation home before you know it.


Source: Zillow Blog, Zillow Team
http://www.zillow.com/blog/5-steps-buying-vacation-home-177608/

Inspecting the Inspectors

This article is written more for Realtors, but I think it is valuable for homeowners in general who need to higher a property inspector for whatever reason. In my business as a Realtor, I've worked some really great inspectors who will take their time and really, really inspect the property and write and a clear, thorough and comprehensive report, and I've worked with other inspectors that just breezed through the inspection and wrote a crappy report that left my clients with more questions than answers. So the bottom line people, make sure you higher a good inspector.



Mold and rot eating away at supporting beams, problems with the electrical system, plumbing issues... It’s the stuff of nightmares, but for many home owners, it’s a reality. Sometimes, undetected damage can be dangerous. Did you hear the one about the buyer who fell through the floor on move-in day when the rotting surface collapsed?

Fortunately, a thorough home inspection can help to uncover hidden damage and shine some light on potentially costly future repairs. But home inspections aren’t just completed to keep the buyer safe — they can help to protect the real estate professional too. Informed buyers are more likely to be satisfied with their purchase and, as a result, they’ll be far less likely to come back to haunt you after the sale closes. If you’re like most agents, much of your business is based on referrals. A satisfied client who feels dealt with honestly and fairly will be far more likely to send others to you, even if in the end they decided not to go through with the sale.

Smart real estate agents know the importance of maintaining a list of qualified home inspectors to give to clients who ask. Having some “pre-inspected inspectors” on hand is an excellent way to help ensure that your clients will be happy with their purchase.

But how do you compile this list? Make sure the inspectors that you recommend are professional and qualified, will do a thorough job, and won’t be afraid to crawl under the house to make sure the floor isn’t about to cave in! Here are nine questions that can help you to thoroughly evaluate a home inspector.

1. Are You Licensed?
A handful of states don’t have any licensing requirements at all, so it’s worth checking to see if your state requires licensing. If there are no licensing requirements, you’ll want to spend some more time looking closely at other qualifications, including training and experience.

2. Which Professional Associations Do You Belong To?
Affiliation with a national or state association of home inspectors isn’t a guarantee of professionalism, but it’s certainly a good sign. These associations often require that members keep up-to-date with training and certification. Reputable groups to look for include the National Association of Home Inspectors (NAHI), the American Society of Home Inspectors (ASHI), and the International Association of Certified Home Inspectors (InterNACHI).

3. What Are Your Credentials?
Read up on the home inspector’s qualifications, and find out where they received their training. There are a number of professional organizations that provide credentials, including ASHI and NAHI. Watch out for those who claim a “company certification,” or any type of “in-house accreditation system” that’s not subject to overriding industry standards.

4. How Much Experience Do You Have?
The NAHI and ASHI require a minimum of 250 inspections. It’s important to note though, that many industry professionals say that finding someone who has performed at least 1,000 inspections and has three to five years of full-time experience is important. When browsing the home inspector’s website, watch out for wording designed to make it look like they have more experience than they actually do. Remember, “industry experience” doesn’t necessarily mean experience actually inspecting homes.

5. Are You Insured?
Even the best inspectors can make mistakes. It’s important to ask for proof of insurance for both errors and omissions and general liability. Always avoid inspectors who aren’t insured, and watch out for inspectors who severely limit their liability coverage. Some inspectors will only reimburse the customer for the cost of the inspection.

6. What’s Your Policy?
Ask about their policy involving problems that should have been picked up on in the inspection. Does the inspector stand by the report? Do they offer any guarantees? Some home inspectors offer optional 90-day warranties that will help cover repairs or replacement costs. Be sure to check into such offers, paying special attention to the fine print and exclusions.

7. What Are Your Customers Saying?
Head online to see what their past clients are saying. Many home inspectors have client reviews on websites such as Angie’s List, Yelp, and Google Plus. You can also check the Better Business Bureau to see if there are any complaints made against the inspector.

8. Are You Able to Provide a Sample Inspection Report?
This will help you to gauge how thorough their inspections will be. Most reputable home inspectors will be more than happy to provide you with one if they don’t already have one proudly displayed on their website. A home inspection report should look something like this.

9. How Long Will Your Inspection Take?
Often, you can evaluate the diligence of an inspection by how long it takes. According to ASHI, a home inspection can take two to four hours or longer, depending upon the size of the home. Specific guidelines governing what must be examined during home inspections exist in only around half the states in this country. Watch out for inspectors who offer “specials” for one-hour inspections—anything less than two hours may be an indicator of a less-than-thorough job.

Also, it’s a good idea to maintain a full list of recommended inspectors, rather than just one or two. This approach drastically reduces your risk of liability and provides your clients with the opportunity to choose their own inspector. Real estate law professionals recommend avoiding verbal referrals whenever possible, instead providing clients with a written list of three to five service providers.

By taking the time to compile a list of inspectors, you’ll be doing your clients a tremendous service and providing them with a valuable resource. You’ll also be establishing yourself as someone who can connect clients with professional help throughout the real estate transaction.


Source: RealtorMag, Brenton Hayden
http://realtormag.realtor.org/law-and-ethics/feature/article/2015/05/inspecting-inspectors?om_rid=AAFmZk&om_mid=_BVdcaTB9CahVMK&om_ntype=RMODaily