Why It's Harder For Millenials to Buy a Home

 Source: The Skimm

Buying a house can feel next to impossible these days. But it’s not just the price of homes or mortgage rates going up that’s keeping the housing market tight. Long before the pandemic made supply chain issues commonplace, millennials have had extra trouble becoming homeowners.

Some of the reasons why it’s difficult include a slowdown in homebuilding after the Great Recession, home prices that have outpaced wages, boomers who are staying in their homes longer, investors and investment firms buying up the kinds of properties that appeal to first-time buyers, and student loan debt.

Read the full article here.

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Francis

Silicon Valley real estate
Tre

nds: Local prices and graphs.

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Just Sold: 876 Elbridge Way, Palo Alto

Title Insurance 101 - "Chain of Title"

‘Chain of title,’ as real estate professionals know, refers to the history of a property’s ownership as far back as records can trace it.

In some cases, a property’s chain of title may go hundreds of years, back to when the government first granted the right of ownership of the land, by way of Patent - and perhaps the home’s first owner. Today, when a new buyer closes, and the paperwork is filed with the local office that handles real estate records and filings, the new owner’s name will join that chain.

As the new owner, buyers need to be sure that any liabilities carried by the seller are resolved at closing and will never become a burden to them. They should know that the title or closing office will do everything possible to ensure that any such liabilities have been satisfied before the transaction is complete....

Read why Title Insurance is essential for you as you purchase a home:  see the full article brought to us by our very own Kelly Vincelette and Suzanne Borg of Cornerstone Title Insurance, and written by Barbara Ponin with RISMedia.

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Francis

Silicon Valley real estate
Tre

nds: Local prices and graphs.

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Condo Construction Growing

This article is: BY ROBERT DIETZ  of the NAHB

According to NAHB analysis of quarterly Census data, the count of multifamily, for-sale housing starts increased during the first quarter of 2022. At 11,000 units started, this was the best quarter for condo construction since the third quarter of 2008.

This is particularly important for us in the Bay Area because land is so scarce.  We do see a lot of new condos popping up, although a lot of the new construction in the past 3-4 years has been in apartment complexes, with high rents.

See the full Article here.

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Francis

Silicon Valley real estate
Tre

nds: Local prices and graphs.

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One third of couples buy homes before marriage

 Source: Realtor.com

Skyrocketing home prices are driving more non-married couples to buy a home before getting hitched, according to a survey by realtor.com®. 

Thirty-one percent of all Americans and 41% of 18-to-34-year-olds say they’ve purchased a primary residence with someone they aren’t married to. Additionally, more than half (55%) of
Americans and 68% of 18-to-34-year-olds say they would consider it. The most common co-buyers are romantic partners who are not engaged or married (15%). But Americans are also open to buying with extended family members or roommates.

Read the whole article here to see the different relationship statuses.

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Francis

Silicon Valley real estate
Tre

nds: Local prices and graphs.

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Past Two Years: Evolution of Prices, Locally - Silicon Valley

These figures are Average sales prices for all houses, condos and townhomes combined.

SCC:  +41% - between Jan. 2020 and Dec. 2021 - SMC: +40%   

Along with these figures, here are a few data points: 

Nationwide, borrowers had a record $9.4 trillion in tappable home equity collectively, or an average of $178,000 per borrower, according to Black Knight.  In California, home sellers typically pocketed a net cash gain of $322,500 from the sale of their homes in 2021 – a 96% increase from the purchase price.

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Francis

Silicon Valley real estate
Tre

nds: Local prices and graphs.

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Consumer Sentiment January 2022

 Tough times for buyers....

My advice, after working through several of those up and down cycles: save yourselves all the rookies mistakes in purchasing a home (like working with a discount agent): hire an experienced professional who is patient and persistent, and well-known in the Realtors community.

For sellers: yes it is easy to find a buyer for your property right now, but it is not a reason to cut corners with your mandated disclosures.  Here again, I would advise the same: work with a seasoned professional. 

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Francis

Silicon Valley real estate
Tre

nds: Local prices and graphs.

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California Homebuying Behaviors

California Homebuying Behaviors - Pandemic.

The COVID-19 pandemic continued to drive strong homebuying interest and intensify market competition while changing consumers’ housing preferences and fueling sellers’ home equity, according to C.A.R.’s 2021 Annual Housing Market Survey. 

With remote working becoming the norm, buyers’ reasons for purchasing in 2021 were unchanged since the Coronavirus outbreak, with the top three reasons remaining the same as last year. More than one-fourth of REALTORS® said their buyer clients purchased a home because they were tired of renting;

One in five said their buyers purchased because they desired a larger home; and one in six REALTORS® said buyers bought because they wanted a better location.  Source: CALIFORNIA ASSN. OF REALTORS®

 

More supercharged buying info in this article from the CaliforniaAssociation of Realtors®

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Francis

Silicon Valley real estate
Tre

nds: Local prices and graphs.

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Buyers Get Ready for Another Crazy Housing Market in 2022

Source: CNN Business

As baby boomers hit retirement, more millennials will reach peak first-time homebuying age, which means they’ll be competing in a market short on housing inventory. While the market will slow a bit from the surge in demand it saw in 2021, sellers will remain in control. Zillow expects prospective buyers will face bidding wars, difficult trade-offs and frustration.

Zillow expects more than 6 million people to buy a home in 2022, many of them for the first time. To be sure, the obstacles they will face are many. The continued intense competition will add upward pressure to home prices, making it especially difficult for first-time buyers to afford a home. 

See the full article here.

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Francis

Silicon Valley real estate
Tre

nds: Local prices and graphs.

How much is your home worth?