California’s Wildfires Will Push Home Prices Even Higher

 

California’s wildfires will push home prices even higher

Source: Realtor.com
Deadly wildfires have always been a fact of life for Californians. But over the past few years they've caused unprecedented devastation—with this year becoming the worst wildfire season on record. The fires are having a catastrophic impact on lives and businesses across the state.

And they're impacting the state’s housing market by pushing up prices in communities that have been ravaged by the infernos, in some cases dramatically. Areas like Napa and Sonoma Counties were already experiencing housing shortages, exacerbated by fires from previous years. Of course the exact areas devastated by fires lose a lot of their value, and it takes time to regain those values. But all around is a different story.  See the article here.

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Francis

Silicon Valley real estate
Trends: Local prices and graphs.
How much is your home worth?

California Real Estate Update

Here are some extracts of the current California Real Estate Update Report, from the California Association of Realtors, which you can browse here in its entirety.   

• Sales in resort communities remained hot in September as housing demand in those areas continued to surge from last year. South Lake Tahoe home sales continued to increase year-over-year by triple-digits (105.4%) for the second consecutive month …
• At the regional level, all major regions posted double-digit price increases from last year. … All regions except the San Francisco Bay Area set a new high in median price in September.   
• All but one of 51 counties tracked by C.A.R. reported a year-over-year price gain, with 39 of them growing 10 percent or more. Lassen had the highest price increase, gaining 51.4 percent year-over-year. Humboldt was the only county where the median price was flat from a year ago, and no counties experienced an annual price decline.

• C.A.R.’s statewide sales-price-to-list-price ratio* was 100 percent in September 2020 and 98.5 percent in September 2019.
• The statewide average price per square foot** for an existing single-family home was $321 in September 2020 and $287 in September 2019.
• The 30-year, fixed-mortgage interest rate averaged 2.89 percent in September, down from 3.61 percent in September 2019, according to Freddie Mac. The five-year, adjustable mortgage interest rate was an average of 2.98 percent, compared to 3.38 percent in September 2019.

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Francis

Silicon Valley real estate
Trends: Local prices and graphs.
How much is your home worth?

California Leads The Nation in HOA Communities

 

Source: Foundation for Community Association Research
Nearly 74 million Americans reside in a community with a homeowners association or condominium board, with California leading the nation in the number of HOAs.

California leads the nation with 49,200 associations, followed by Florida, with 48,500; Texas, with 21,000; Illinois, with 18,800; North Carolina, with 14,100; and New York, with 14,000, the report says. In 2019, there were about 351,000 community associations in the U.S. The Foundation for Community Association Research estimates that the number in 2020 will increase to 354,000.

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www.4388ElCaminoReal18.com 

Thank you for reading,

Francis

Silicon Valley real estate
Trends: Local prices and graphs.
A noteworthy local non-profit:  Community Services Agency - in Mountain View

Gov. Newsom Signs New Eviction Protections Lasting Through January

Gov. Newson signs new eviction protections lasting through January.

From: Source: Los Angeles Times – Full article by Patrick McGreevy.

California state lawmakers passed a plan to protect tenants from eviction through January as long as they pay 25% of the rent due starting with the month of September.

This minimum of 25% of the rent can be paid each month, or it can be paid in delayed payments as long as all of it is paid by January 31, 2021.  Gov. Newson signed the legislation Aug.31^st. 

Tenants are still responsible for paying unpaid amounts to landlords, but other than the 25% of the rent due beginning in September, any rent unpaid between March 1, 2020, and January 31, 2021, because of a COVID-19 related inability to pay cannot be the basis for an eviction.

Landlords will be able to recover this debt in court, however, beginning March 1,2021, and small claims court jurisdiction will be temporarily expanded to allow landlords to recover these amounts.

Francis

Silicon Valley real estate
Trends: Local prices and graphs.
Price your home with my online valuator.

Where Utility Costs Are Most, Least Expensive

 Source: Move.org, via the California Association of Realtors.

Utility bills can add up, especially in a pandemic that has forced people to spend more time at home.  On average, renters are spending between $100 to $150 per month on utilities, whereas homeowners are paying an average of $400 per month, according to Move.org.  Home shoppers would be wise to inquire about the average utility costs of homes the're looking at to help avoid sticker shock when they get their first bill.

Click to see a larger image.

California ranks 36th in the nation with utility costs totaling an average of $379 a month.  Hawaii ranks the most expensive state with utilities totaling an average of $588 a month, and New Mexico ranks the least expensive at $345 a month.

See here the full article and details of the study.

Thanks for reading!

Francis

Silicon Valley real estate
Trends: Local prices and graphs.
A noteworthy local non-profit:  Community Services Agency - in Mountain View

Many Home Purchase Offers Are "Sight Unseen"

Nationwide, 45% of surveyed homebuyers said they made a bid on a home without first seeing it in person, up from 28% in 2019. Redfin agents cite health concerns around the pandemic and competition fueled by a worsening housing shortage as reasons more buyers are bidding on homes before visiting them.

See the  Redfin-commissioned survey in May and June of more than 1,400 people across 29 major markets.  Article by Lily Katz.

I have had one experience myself of an offer "sight unseen" on one of my listings, 3 months ago, and several agents have also experienced one of such offers within our Coldwell Banker Los Altos office.

Francis

Silicon Valley real estate
Trends: Local prices and graphs.
A noteworthy local non-profit:  Community Services Agency - in Mountain View

Most Common Home Improvements During the Pandemic

More than three-quarters of about 1,000 homeowners surveyed this month say they have carried out at least one home improvement project since the start of the COVID-19 outbreak, according to a new survey fromPorch.com, a home remodeling website. 

According to the survey, homeowners have spent a median of $17,140 on improving their homes since the pandemic began, with an average of five improvement projects per household. To fund these household projects, 38% dipped into savings, 23% used credit cards, and 13% used their government stimulus checks.

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Francis
Silicon Valley real estate
Trends: Local prices and graphs.
A noteworthy local non-profit:  Community Services Agency - in Mountain View

National Real Estate Market Not Slowing Down

Nationwide, it seems that the market is not slowing down with the Pandemic.

A shortage of homes for sale and record low interest rates are creating a competitive home shopping summer, with a housing market getting closer to pre-pandemic levels, according to Realtor.com.

Today's market remains tipped in favor of sellers as would-be spring buyers are shopping well into what would normally be summer vacation season.  home buyers, trying to take advantage of record low mortgage rates and make up for lost time, are finding limited and more expensive option according to Realtor.com.

Housing shortages continue.  Over the last three weeks combined, new listings are down an average of 14% from a year ago.  Also median listing prices continue to increase at 7.9% over last year, which is faster than the pre-pandemic pace.
Source: Realtor.com

Main take-aways:

- new listings were down 19%
- total inventory was down 32%
- time on market just a tad slower.
- The West and NorthEast are leading the recovery
- interest rates are low, very low.
See the full article here along with the situation per main City area in the US.

Thank you for reading, - subscribe to my blog!

Francis
Silicon Valley real estate
Trends: Local prices and graphs.
A noteworthy local non-profit:  Community Services Agency - in Mountain View