Francis' Silicon Valley Real Estate Corner...

Trends: Local prices and graphs.
A noteworthy local non-profit event: Community Service

s Agency - in Mountain View

Monday, July 20, 2020

What's Motivating Moves During the Pandemic

Americans have been on the move for more reasons than just to snag record low mortgage rates, shows a new survey of 2,000 real estate agents from HomeLight. The survey, conducted in a series of 7 separate polls from april to the end of June found the top moving motivators cited include the need for space (44%), a desire to buy versus rent (41%), and to relocate to the suburbs (37%).

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Meanwhile, in the Bay Area, the sales price is still higher than the ask price, on average, and buyers outnumber sellers. Here are the latest figures for June, for the County of Santa Clara:

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...where one can see that prices did not go down with the pandemic. In the trenches, what we see is sustained demand for housing.

Thank you for reading,

Francis

Trends: Local prices and graphs.
A noteworthy local non-profit event: Community Services Agency - in Mountain View

Thursday, June 25, 2020

Silicon Valley's Market Continues Its Upward Pace

Some news from the trenches, as of the 2nd week of June:
At the Los Gatos-Saratoga District Virtual Breakfast Meeting this week, C.A.R. President-elect Dave Walsh was upbeat because weekly market stats he has tracked show the market is continuing on an upward pace. Sellers are returning to the market and buyers are even bidding on homes.

Walsh's data for Santa Clara County shows sales since March have been increasing to an average of 200 a week. Sales dropped to a mere 99 the week after county Shelter-in-Place order was imposed.

Walsh said, "Our REALTORS® are very good at pulling buyers and sellers together no matter what the situation is, even in a pandemic. Our market is recovering faster than any other market in the state. We all are fortunate to be in Silicon Valley."

Many areas are hot. South County has been "on fire" with its affordable, expansive housing. Walsh said a reason for this is people are gravitating to larger open areas, away from cramped units in cities.

Milpitas has been hot from the start, according to Walsh. Santa Clara, Central San Jose and Sunnyvale "have never retracted and have stayed unbelievably hot with a zero slowdown." Santa Clara had 13 sales last week; its 4-week average is 10 sales. Central San Jose had seven sales last week; its 4-week average is five sales. Comparing last week's sales to their 4-week averages, these cities have exploded: Sunnyvale 19 sales (avg. 7), Cupertino 13 sales (avg. 7), Los Gatos 10 sales (avg. 6), Saratoga 8 sales (avg. 3). Positive changes are seen in Willow Glen, which had 17 sales last week (avg. 7) and Mountain View, 9 sales (avg. 3).

Since Santa Clara County's March 16 Shelter-in-Place order, 2,369 properties have been put under contract. Of those properties, 1,968 were priced below $2 million, 122 were priced over $3-7 million, and six properties sold at over $7 million.

"This tells us there is a lot of confidence in our marketplace, confidence in our consumers that work and live in Silicon Valley, confidence in employers and their stock portfolios. I cannot emphasize it enough. Our market is hot, our market is strong. If you price it correctly, it will sell." Walsh told members.

Thank you for reading,

Francis

Trends: Local prices and graphs.
A noteworthy local non-profit event: Community Services Agency - in Mountain View

Friday, June 12, 2020

Emergency Savings - Affordability Challenges

One in Three adult Americans has no emergency savings. I posted this blog in 2014, and I am sure it is true today.

According to this April 2014 article from HousingWire by Trey Garrison the housing industry will likely be impacted by the results of a new survey from NeighborWorks America, which serve as a stark reminder of affordability challenges. The survey found that almost 70 million working age Americans – about one-third – have no emergency savings. This highlights a primary problem facing potential homebuyers, as one in three homes are deemed unaffordable to the average buyer, and mortgage originations are reportedly at a 14-year low.

Only 25 percent of American have enough saved to cover 30 days of living expenses.
About one in five have enough savings to cover three months – about the average time of unemployment for many Americans – while 28 percent expect their emergency funds to cover a year.
Approximately 29 percent of adult Americans have no emergency savings in place—whether to pay for the repair of a car that’s required to get to work, or fix a major household necessity such as a roof or furnace.
Retirement and buying a home are the top savings goals at 28 percent and 13 percent, respectively.
Just 5 percent of consumers say that they are currently saving to create a buffer in case of a financial emergency.
52 percent of people earning less than $40,000 said that they had no reserve.

Even though this is a nationwide study, California is not immune to the phenomenon obviously, and affordability concerns are certainly increased in areas of high prices like the Bay Area. I believe it is important to reflect on it.

Thank you for reading,

Francis

Trends: Local prices and graphs.
A noteworthy local non-profit event: Community Services Agency - in Mountain View

Thursday, June 4, 2020

Freddie Mac: Currently Low Mortgage Rates

Directly from the web site of Freddie Mac, the results of the Primary Mortgage Market Survey® (PMMS®):

30-year fixed-rate mortgage averaged 3.15 percent with an average 0.8 point for the week ending May 28, 2020, down from last week when it averaged 3.24 percent. A year ago at this time, the 30-year FRM averaged 3.99 percent.
15-year fixed-rate mortgage averaged 2.62 percent with an average 0.7 point, down from last week when it averaged 2.70 percent. A year ago at this time, the 15-year FRM averaged 3.46 percent.
5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.13 percent with an average 0.4 point, down from last week when it averaged 3.17 percent. A year ago at this time, the 5-year ARM averaged 3.60 percent.

Average commitment rates should be reported along with average fees and points to reflect the total upfront cost of obtaining the mortgage. Visit the following link for the Definitions. Borrowers may still pay closing costs which are not included in the survey.

Freddie Mac makes home possible for millions of families and individuals by providing mortgage capital to lenders. Since our creation by Congress in 1970, we’ve made housing more accessible and affordable for homebuyers and renters in communities nationwide. We are building a better housing finance system for homebuyers, renters, lenders, investors and taxpayers. Learn more at FreddieMac.com, Twitter @FreddieMac and Freddie Mac’s blog FreddieMac.com/blog.

Francis

Detailed, local trends etc...

Current mortgage rates - low, with a lot of volatility.

Be sure to check this fabulous new listing in Palo Alto at: 3228 RossRd, near Midtown!

Thursday, May 28, 2020

Update on the State of Real Estate in California and the Bay

Noted among the regular updates on the California real estate markets, from the California Association of Realtors, as of 5/27/20:

This was the first week in several months where it was more difficult to find negative impacts on the economy and housing market than it was to find signs optimism. And yet, even as the economy begins to heal, it is important to temper that hope with the difficult truth: even if the economy continues to gradually reopen and the leading indicators continue to improve, the toll of the COVID-19 pandemic have been unprecedented and it will take time for us t

o recover. This is particularly true in a world where the new normal will likely look significantly different that our previous definition. On top of that, we will face both ongoing restrictions and a big learning curve on how to operate in a pre-vaccine world.

Consumer confidence finds bottom: After suffering from its worst decline in April in nearly 50 years, the Conference Board’s Consumer Confidence Index ticked up slightly in May. The index remains below 100 indicating that consumers are still pessimistic, but it is a slightly lower level of pessimism than in April. This supports the conclusion from a variety of other indicators that the economy and market found a bottom in mid-April and has begun to stabilize after roughly 2.5 months of sheltering in place.

Mortgage applications regain lost ground: Homebuyer demand is beginning to show signs of life as well as the U.S. recorded its 6th consecutive increase in new purchase-money applications. That brings the number of mortgage applications back above the pre-crisis levels of late February. .... California saw its 7th consecutive weekly gain in mortgage applications as well, though it also saw a bigger contraction in the immediate aftermath of the downturn, so it remains roughly 2% below 2019 levels.

Buyer demand coming back with more showings: Buyer demand is also expressing itself in the form of increased showings. Last week, the 7-day moving average of showings posted a 38% increase, which brought the index back to pre-outbreak levels. And although last week’s levels were still roughly 4% below 2019 levels, home showings have improved dramatically from mid-April when showings were falling by nearly 75% on a weekly basis and were well below 2019 levels.

Francis

Current mortgage rates - low, with a lot of volatility.

Be sure to check this fabulous new listing in Palo Alto at: 3228 RossRd, near Midtown!

Monday, May 25, 2020

Prices May Stay Pretty Stable in 2020

Prices may stay pretty stable in 2020?

Many clients ask me which direction prices will trend this year with the pandemic.

Some expect prices to go down, while others encounter multiple offers, at least here in the Silicon Valley.

For now, and just considering our local area, one thing is sure: the number of transactions has been cut roughly in half. But how prices will fare will depend mostly on the job market in both Santa Clara and San Mateo County. And what we see a lot of is remote work, not so much lay offs (although unfortunately we will see some of that happen way too much).

In this article from Clare Trapasso, senior news editor of Realtor.com, the prediction is that prices will remain steady in 2020, because the inventory of homes has also gone down dramatically. In the Silicon Valley where properties are still fairly scarce, my experience is that prices are currently soft, but this is compared to an early expectation of a strong price increase at the beginning of the year. It is also not the case for prime, very desirable properties (i.e. very remodeled, or excellent location, or large lots, or just "rare finds").
Diana Olick, from CNBC, also reports a surge of multiple offers nationwide, with a majority of offers being made in a competitive environment in many local markets, from the East to the West.

Thank you for reading,

Francis

Current mortgage rates - low, with a lot of volatility.

Be sure to check this fabulous new listing in Palo Alto at: 3228 RossRd, near Midtown! Select "view full screen" at the bottom right for the best experience.

Tuesday, April 14, 2020

Impact of the Current Situation on Real Estate Activity

My clients ask: what is the current impact of the current situation on real estate activity?

The California Association of Realtors issued an update on the impact of Covid 19 which is pretty comprehensive. This being said, many of my clients are asking me what is the impact locally.

The situation changes day to day, literally, with new changes in the regulations and limitations.

As of now, real estate is deemed an essential activity at the Federal level, and also at the California level, although many aspects of the regular activities of a Realtor are very strictly regulated. Without going into the details, interactions with the public are to be limited to the extreme, the essential, and when they happen it has to be with all mandated precautions – which is of course very good, and welcome.

The market? About the same at this point: there are much fewer properties on the market now, but there are fewer showings for obvious reasons. It is an excellent time to sell a property, and also a good time to be actively looking for a home. Precise protocols have to be put in place so that all parties are comfortable with the ways to proceed, and follow the advisories. Will prices suffer or not? A little too early to tell in my opinion. I do expect the number of transactions to be smaller in April though.

What is also good to know is that nearly everything can be done virtually if you are seeking to sell your property, or if you are thinking of a purchase. Facetime or call or text me should you have any questions regarding the process in this new environment.

Thank you,

Francis

Current mortgage rates - low, with a lot of volatility.

Thursday, April 9, 2020

Finding Ways to Stay Positive in these Challenging Times

Dear friends, clients,

In these challenging times, I have personally set a goal to stay positive and spread kindness, as everyone goes through some kind of anxiety. Here are a few simple, effective ideas to make sure we see the silver lining each day.

Get outdoors. Walk, garden or just take time to reflect and smell the roses.
Use FaceTime, Teams or any other social media way or communication, or pick up the phone to check in on friends, family, neighbors and colleagues.
Spread some kindness each day. Nextdoor lets you see what others in your community may need. Give back – helping others helps you too.
Have a laugh! Share some jokes or funny videos to alleviate stress and lighten up with laughter.
Be grateful. Leave a reminder in your phone each day to give thanks for all the good in your life.
Schedule some downtime from social media and the latest headlines. Quiet time is essential, and you might find a break from the headlines brightens your day.

Remember, today's issues are temporary, and hopefully will bring long lasting lessons. How can we help bring a better tomorrow? I believe we can stay strong and persevere. Please feel free to contact me for any reason – whether you have real estate questions (yes, most things can be done remotely), or you just need someone to talk to. We'll get through this together!

Thank you for reading, and stay safe!

Francis

My Home Valuation tool
Detailed, local trends etc...
Current mortgage rates Time to refinance? Give me a call.

Sunday, March 22, 2020

How to disinfect your house in these times of stress?

An important question nowadays: what is the best way to disinfect your home, as we all face these dire circumstances?

Christina Hoffman, content manager for HouseLogic, gives some useful tips on the matter, which I thought were worthy of showing on this blog.

From her article, a few things worth mentioning:

- The Center for Disease Control recommends a bleach solution for disinfecting high-touch surfaces
- Recipe: for a quart of water, 4 teaspoons of bleach,
- bleach can grow too old, and loose its efficacy,
- bleach cannot be mixed with just anything: just water,
- and something I didn't know: some disinfectants can make the virus(es) resistant.

Please stay safe and in good health, and most importantly, stay informed.

Warm regards,

Francis

My Home Valuation tool
Detailed, local trends etc...
Current mortgage rates Time to refinance? Give me a call.

Tuesday, February 4, 2020

Easy to Buy a Home in California?

How easy is it to buy a home in California?

According to an August 2019 Google poll that the California Association of Realtors conducted, this is the way it is perceived:

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Actually, from my personal experience in different countries, it is really much easier to purchase and sell a home here. It also takes a lot less time from start to finish.

Thanks for reading, call or text me for any question about the process.

Francis
My Home Valuation tool
Detailed, local trends etc...
Current mortgage rates (low!)

Friday, January 24, 2020

Winter House Hunting Can Pay Off.

Everyone knows the prime house-hunting seasons are spring and summer, when the grass is green, tree foliage is full and flowers are in full bloom. But that doesn’t mean you can’t land a hot deal during the winter. Here are a few reasons why shopping for a home in the winter might be a smart decision.

Less competition. While cooler temperatures in many areas may keep many people inside, if you decide to take the plunge, you won’t have to compete with as many buyers. That means less pressure to make a quick decision to avoid losing out on the home of your choice, and more time to check out additional properties, consider all of your options and negotiate with sellers.

Sellers are more motivated. Many people who put their home on the market during the colder months are anxious to sell it as fast as possible. Perhaps they’re relocating for a new job or need money for a down payment on another property. With fewer would-be buyers, sellers get less attention and fewer offers, making them more motivated to reduce the price and close the deal.

Quicker closing. Real estate agents, mortgage lenders and title companies have fewer clients in the winter, which can result in a swifter closing. And remember, you can always help speed up your home-buying process by knowing how much you can afford, getting pre-approved for a loan and having a good down payment ready.

Gain more insights. Viewing homes on cool, gray days puts properties in a different light – picture bare trees and no flowers – so if you love a property, imagine how wonderful it will look when colors are popping in the spring and summer. And unlike a sunny 75-degree day, you’ll be able to tell if a house is drafty, a sure sign of poor insulation.

Francis

Current mortgage rates - low. It's a good time to buy now

Saturday, January 4, 2020

Total Student Debt Could Buy Every House on the Market ... Twice

According to a new study by Realtor.com, total student debt could buy every house on the market in the US.. twice!

Part of this interesting article by Kelsey Ramirez is below:

"Total student debt in the U.S. reached $1.5 trillion, a new all-time high, according to a new study by realtor.com. But what does that mean for the housing market?

The number $1.5 trillion sounds like a lot, but how much is it really when you break it down? Divided out, the average student loan borrower owes about $34,500, that’s $8,500 more than the typical down payment of $26,000, or an average 10% of the median home price of $260,000.

Put another way, $1.5 trillion is enough to buy every single home on the market in the U.S. Twice.

Let that sink in.

“Student debt has ballooned to an all-time high as the price of education continues to outpace wage growth, and this is holding back many potential buyers from being able to purchase a home,” realtor.com Senior Economist George Ratiu said. “Student debt is already impacting borrowers’ ability to buy a home and education debt is expected to hamper consumers’ financial decisions for many years down the road.”

The Department of Education explained that because wage growth is stagnant compared to the rapidly rising costs of education, students are taking on more debt than ever before to cover their expenses. Since 1986, tuition at public universities has grown at four times the rate of wage growth."

See the link to the full article from Housing Wire.

Francis

Current mortgage rates - low. It's a good time to buy now

Saturday, November 30, 2019

Married, But Name Not On Title? What Does It Mean?

Married, But Name Not On Title? What Does It Mean?

Here is another bit of real estate info in California provided by our own Cornerstone Title Company -thank you Kelly Vincelette ;-)

Does a person have ownership rights to a piece of property if they are married, but their name is not on title?
For a community property in California, it depends upon when and how their spouse acquired the property. The law asserts that all property purchased during the marriage, with income that was earned during the marriage, is community property. Both spouses own it equally, regardless of whose name is on the title deed - and while married buyers can purchase property on their own, using only their credit, income and assets to qualify for a loan, that property is deemed to be owned by both spouses jointly.

If the intention is that the property be owned only by the spouse who purchased it, then the other spouse would have to relinquish their rights to it by executing and recording both a quit claim deed and a Preliminary Change of Ownership form.

Any real estate that was owned by one spouse prior to marriage remains separate property - as is property that is inherited or gifted to one spouse. If the other spouse’s name is not on title for either of these reasons, then they neither have ownership rights nor would they be responsible for loan repayment or other liens placed on that property - even if it resulted in foreclosure.

Spouses may comingle their separate property into community property at any time, simply by transferring that property into both names jointly. Then both spouses are on title and both have equal rights and equal responsibility for it, just as they would if they had purchased it, taken on a mortgage loan for it together, and listed both of their names on title.

To know more about responsibilities and liability, do look at the whole article, and if you have a question that is specific to your own situation, do contact a licensed California Real Estate attorney.

This article is written by Barbara Pronin who is an award-winning writer based in Orange County, Calif. A former news editor with more than 30 years of experience in journalism and corporate communications, she has specialized in real estate topics for over a decade.

Some necessary disclaimer: this material is not intended to be relied upon as a statement of the law, and is not to be construed as legal, tax or investment advice. You are encouraged to consult your legal, tax or investment professional for specific advice. The material is meant for general illustration and/or informational purposes only. Although the information has been gathered from sources believed to be reliable, no representation is made as to its accuracy.

Thanks for reading!
Francis

Home Valuation tool

Current mortgage rates - low!

Friday, November 15, 2019

Try And Try Again - A Home Buying Tale

Try and try again...

The market "has softened", or the market "has slowed down". Or has it?

I was just hearing MarketPlace on NPR yesterday afternoon saying that the market was going to have a renewed jump in activity soon, with more multiple offers than we even had lately, due to lack of inventory and very low interest rates. Whether this comes true or not, we will see. But these stats below tell the tale of California home buyers and their successes, ...or delays during the 2nd quarter of this year.

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Truth be told, in the SF Bay Area, whether the market has slowed down or not depends a lot on the exact area, the type of property, the time of year and also... the asking price.

For instance for well-priced properties in Palo Alto, or towns with good schools, the activity is still quite brisk. For smaller homes like condominiums in areas where there is more inventory (i.e. some areas in San Jose or Santa Clara, or Sunnyvale) prices have certainly come down from the highs of last year. It is all a question of knowing the market. A qualified buyer's agent is a must to make sense of all this, someone who carefully evaluates the home value and the recent sales before placing an offer, above or under asking price. It will depend on the condition, the location, the local inventory for the particular home you are considering.

Questions? Call or text!

Thank you,

Francis

Current mortgage rates - low, with some volatility.

Tuesday, November 12, 2019

Property Inspection, Or Not?

Should you have a property inspection, or not?

Most people get a property inspection when they buy a property, whether they pay for it, or the sellers pay for it. The inspection pretty much always finds stuff, and it is definitely better to know what needs attention before going ahead with the purchase. In our region, the Bay Area of San Francisco, inspections are done ahead of time by the sellers in order to increase the chance to receive an offer that is "as is", without inspection contingencies. Without a "pre-sale" property inspection, it is almost certain that a buyer would put a contingency in their offer to obtain an inspection, and that leaves the door open for a new round of negotiations later down the line.

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In fact it is also good to have a property inspection on your house, even if you are not going to sell it. Inspectors always find things to report, and it is better to know of a problem before it gets expensive to address. Just like you do a medical physical check-up on your body regularly, it is a good idea to obtain a check-up on your house.
For professionals performing inspections just text/email me. I can definitely help you with that, and help you sift through the results of the inspections to flag the most urgent problems to address.

Thank you for reading,
Francis

Home Valuation tool

Current mortgage rates - low, with some volatility.

Tuesday, October 29, 2019

Homeownership Has Its Benefits

Homeownership Has Its Benefits - Why do Californians want to own a home? According to this California Association of Realtors June 2019 poll, these are some of the reasons, below:

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Questions regarding real estate? Text/email me!

Francis

Home Valuation tool