2013 Cal. Annual Housing Market Survey

The Annual Housing Market Surveys conducted by the California Association of Realtors is always full of interesting tidbits, some of them not so small in fact.  All these facts, figures, percentages are fascinating if you like figures. 
-- If you are not so much interested in the statistics of the California real estate market, I would skip this blog.
If on the other hand you are curious about it, with a macro vision of the market, it yields some interesting thoughts and points.  Here it is:

C.A.R. Releases “2013 Annual Housing Market Survey”

Nearly half (49.5 percent) of all homes sold in 2013 were sold above asking price, nearly twice the share in 2012 (25.9 percent) and triple the share in 2011 (16.6 percent).  The 2013 figure was more than twice the long-run average of 18 percent during the past 20 years.  For homes that sold above the list price in 2013, the median premium paid over the list price was 4.8 percent, unchanged from 2012.  Note: in Palo Alto, the average ratio of Sales price over List price is 111.7%.

For the third consecutive year, an increasing number of home sellers – nearly half – planned on purchasing another home in the future.

The shortage of housing supply intensified further this year, leading to heightened market competition and more multiple offers, with more than seven of 10 home sales (72 percent) receiving multiple offers in 2013, up from 57 percent in 2012.  The 2013 figure was the highest in at least the past 15 years, with each home receiving an average of 5.7 offers, up from 4.2 offers in 2012 and 3.5 offers in 2011.  Note: in Palo Alto and Los Altos, 10 to 20 offers are fairly common.   

The distressed market continued to be the most competitive segment of the market, with more than 9 in 10 (91 percent) real estate-owned (REO) properties attracting multiple offers, an increase from 71 percent in 2012. The short sale market was less intense than the REO market, but still 3/4 of all sales received more than one offer, a jump from 66 percent in 2012.  There is no "deal" in the local real estate market...
Close to seven of 10 equity sales received multiple offers in 2013, a surge from 51 percent in 2012.
More information on the CAR website.

Francis
Silicon Valley real estate specialist
Detailed, local trends etc...
Current mortgage rates
A place worth noting: Our Brother's Home in MountainView

Haunted house anyone?

Realtor.com® Releases Haunted Housing Report
Realtor.com has released the results of its Haunted Housing Report, which explored consumer sentiments around their perceptions of "haunted" real estate. Survey results from nearly 1,400

respondents reveal consumer thresholds for purchasing haunted houses for sale, past experiences with spooky homes, popular "warning signs" of a haunted home, expected discounts when buying "perceived" haunted houses for sale and intolerable scary occurrences.

According to the survey, 26 percent of respondents indicated that they would consider purchasing a haunted house for sale, while 38 percent would not. Of the respondents that would consider purchasing a haunted home, 12 percent reported that they would pay full market value or over for a haunted house; 34 percent shared that they would purchase a haunted home if it was discounted 1 to 30 percent; 22 percent indicated that they would purchase a haunted home if it was discounted 31 to 50 percent; and 19 percent revealed that they would purchase a haunted home if it was discounted 51 percent or more.

However, of the respondents that would contemplate purchasing a haunted home, the following spooky occurrences would stop them from buying a home:

• 75 percent would be scared off by levitating objects from purchasing a home
• 63 percent would be deterred by objects being moved from where they were placed
• 63 percent would be dissuaded by ghost sightings
• 61 percent would be discouraged by supernatural sensations
• 61 percent would be scared off by flickering lights/appliances
• 60 percent would pass on a home with strange noises (footsteps, doors slamming)
• 34 percent would be deterred by warm or cold spots.

In terms of the most popular "warning signs" a home could be haunted, 61 percent of respondents thought a cemetery on the property may be an indication; 50 percent shared that homes over 100 years old could be haunted; 45 percent thought quick transitions in owners might be a sign; 45 percent believe that an unexplainable low price on the home is alarming; and 43 percent felt that homes in close proximity to a battlefield may be haunted.

Francis
Silicon Valley real estate specialist
Detailed, local trends etc...
Current mortgage rates

How long to own a home?

Most people don't buy or sell a home very often. 
 

In fact, a recent National Association of Realtors® study found the median length of time that people who sold a home in 2012 had owned that residence was nine years, two years longer than the proverbial seven-year time frame. 

What's more, recent buyers had even longer time horizons in mind: first-time purchasers expected to own their newly bought home a median of 10 years. For repeat buyers, the median was 15 years. 
 

Sure, many people move more frequently, often due to the birth of a child, marriage or divorce, job loss or relocation, retirement, someone passing away, or other major life event. Yet there's still no doubt that a move is pretty hard on anyone… and avoided if possible.

How long have you owned your home in average?

Thanks for reading,
Francis

Silicon Valley real estate specialist
Detailed, local trends etc...
Current mortgage rates

Grand Opening at the San Antonio shopping center

It has been a while since I wrote a note about the San Antonio shopping center, and the transformations happening there. 
Since then a new Safeway opened, apartment buildings opened, a Starbucks and a few other well known franchises.  Tomorrow Saturday there is an event worth mentioning here for those who live close by, and especially dog lovers:
the Grand Opening of the Village Green Park and Dog Park.  Tomorrow Saturday October 19th, 10:30 to 3 pm.

Francis
Silicon Valley real estate specialist
Detailed, local trends etc...
Current mortgage rates
A place worth noting: Our Brother's Home in MountainView

Housing shortage in the Bay Area .. Facebook takes note.

Facebook to Build Apartments for Employees

A mockup of a new housing complex in Menlo Park for Facebook employees has been released. The project will cost $120 million and will create 394 units. The entire complex will be 630,000 square-feet.

Along with apartments, the area will have shops, a sports bar, a doggy day care, as well as an outdoor community pool. Designed primarily to house Facebook employees, the complex will be within walking distance or a five-minute bike ride from the corporate campus.

The majority of units will only be available to Facebook employees and sold at market rate. Fifteen units will be open to non-Facebook employees who are low-income. Construction begins this month and is expected to be completed in 24 months.

Source: Silicon Valley Association of Realtors.

Thanks for reading,
Francis

Silicon Valley real estate specialist
Detailed, local trends etc...
Current mortgage rates
A place worth noting: Our Brother's Home in MountainView

Micro apartments...

Micro apartments. In some major metropolitan areas, people are living large in smaller spaces.

So-called micro apartments—which are often less than 200 square feet—are becoming popular in San Francisco, New York, Seattle, Boston, Providence, R.I., and Portland, Ore., reports CNN Money (by Les Christie).
But it’s not only those just-out-of-college grads flocking to these tiny units. In some “micro buildings,” the average tenant is 33 years old and makes less than $35,000 a year, according to Reuters. 

 

On a separate (real estate) note, not quite the same size, you can have a look at what’s inside the ultimateman cave … (by Anastasia Anashkina @CNNMoney)  - Ok, this is not your typical home. But I know many who are going to dream.

Thanks for dreaming! - huh... reading!

Francis

Silicon Valley real estate specialist
Detailed, local trends etc...
Current mortgage rates

non-profit organization worth noting: Partners for New Generations

California: fastest rising list prices

As of July 2013...
This is not new information, but it is not going to be much different today, and it gives a good perspective on the market, as we currently witness a slowing down, attributed to much higher prices and higher interest rates.  The market locally is still quite good by all measures...

 Francis

Silicon Valley real estate specialist
Detailed, local trends etc...
Current mortgage rates

The Growth of Single Households: Singles Make Up Quarter of All Buyers

The Growth of Single Households: Singles Make Up a Quarter of All Buyers
Source: REALTOR® Magazine

Whether people marry later, divorce more frequently, and/or live longer, more people are living alone.
In fact, single buyers comprised a quarter of all home purchases last year, according to the NATIONAL

ASSOCIATION OF REALTORS®  (from 17% in 1970). The living solo trend is evident in the country’s 33 million one-person households. Young adults ages 18 to 34 are the fastest-growing group of people living alone.

• Solo households are also mostly women: 18 million women live alone versus 14 million men. Twice as many single women bought homes as did single men in 2012.
• A single buyer can face challenges in this post-recession market, especially when it comes to qualifying for a mortgage because a single buyer cannot rely on the advantages of dual incomes or shared responsibly that a two-person household does. That being said, single buyers are not dragged down by a partner's credit score, loans, or credit card debt.
• Single households are prominent in other countries as well, with Sweden having the largest proportion of solos (47 percent). The United Kingdom has a rate of 34 percent, Japan’s is 30 percent, and Norway’s is 40 percent.
• Around 11 million Americans living alone are elderly, and the majority of solo households are in cities and metro areas.
• Purchasing a home can be a means of self-expression for singles, and they can express their lifestyles and values while focusing on the exact communities, home styles, and features that cater to their individuality with much less compromise.

More details on this article from the Realtor Magazine.

Thanks for reading,
Francis

Silicon Valley real estate specialist
Detailed, local trends etc...
Current mortgage rates
A place worth noting: Our Brother's Home in MountainView