Santa Clara County (SCC): New Residential Building in Silicon Valley
In an area where resistance to affordable housing is epic, the tide is turning.
The city of Mountain View is looking to increase its housing stock by as much as 50 percent — including as many as 10,000 units in the area around Google’s main campus, in the North Bayshore area.
Also, the city council has approved about 2,000 new units elsewhere in town. In all, Mountain View is studying how to add a total of 17,000 units.
Sunnyvale, where Yahoo is based, is looking to transform an older industrial area near one of its rail stations into a new development that would include offices and housing. Menlo Park is studying how to allow for up to 4,500 housing units to be built on industrial land near Facebook’s headquarters.
In San Mateo, a defunct horse-racing track is being redeveloped into a mixed-use project that sits along a train stop and will eventually comprise five office buildings and 1,000 houses, apartments and condos.
Facebook Jumps into the Fray
Facebook is putting up $20 million toward a community investment program designed to address the severe housing crunch in its own backyard, where the tech boom stoked by the latest generation of Internet superstars is making it difficult for many working class families to live.
It is partnering with Envision Transform Build-East Palo Alto (ETB), a coalition of Silicon Valley community groups, and the neighboring cities of East Palo Alto and Menlo Park to create affordable housing, provide economic opportunities in the form of job training and expand legal relief to tenants.
“There is a housing crisis in Silicon Valley. There is a traffic crisis in Silicon Valley,” says Elliot Schrage, vice president of global communications, marketing and public policy at Facebook. “We want to keep tech jobs in Silicon Valley.”
Also, three county measures that would raise hundreds of millions of dollars for affordable housing throughout Silicon Valley passed convincingly last month.
Ostensibly, the new housing is meant for workers at the tech companies in the Valley. Let’s hope the cities and counties start building affordable housing for the people who serve the communities: police officers, firefighters, teachers, nurses, postal workers, etc…
I think it can be said without argument that when the people who serve a community, live in the community, their level of involvement and service sky-rockets.
More information is available in our on-line report at http://avi.rereport.com/market_reports
10 Essential Questions To Ask When Buying A Home (That You May Have Missed) (SCC)
By: Lisa Johnson Mandell
You’ve finally found it: a home you’re swooning over and dying to own. From the exposed ceiling beams to the hardwood floors, this feels like the place. So what’s next? Don’t just stand there dumbstruck; it’s time to dig deeper and ask questions—and not just the kind that randomly pop into your head, either. You need to hit all of the necessary topics head-on, and some of them are not so obvious.
But you’re in luck: We’ve pulled together a checklist of some of the most important initial questions to ask when buying a home:
What is the home’s sales history? When was the last time the house sold, and how much did the current owners pay for it? This is essential intel, and you don’t even have to ask the seller or your real estate agent about it, because it’s posted on every MLS listing. All you have to do is scroll down to find it. But make sure you know it.
When buying a home, the previous sale price will give you a sense of what the sellers might expect you to pay—but keep in mind that a home’s true market value is based more on what comparable homes are selling for now rather than what it went for in the past, says Los Angeles Realtor® Jennifer Niman of Berkshire Hathaway HomeServices. Sales history will also show you whether the home’s price has been trending up or down over time, which can help you hone your negotiating stance.
Did the sellers make any major renovations or additions? If they’ve overhauled the kitchen, added a bedroom, or finished the basement, you’ll want to know that—and, ideally, see receipts from contractors to get a sense of what they paid for these upgrades.
In general, this will give you a ballpark notion of how much money they’ve sunk into the home—and what they hope to get out. That said, don’t assume you have to fork over as much cash as they put in; home improvements generally reap only a 64% return on average. And that return on investment varies widely based on which renovation is done.
How much are the property taxes? Property tax history is also typically available right on the listing detail page. If you can’t find it, ask the seller. You’ll want to find out what previous owners paid, but understand that the property tax, since it’s based on a percentage of the value of the house, will probably be affected by your purchase price. This could be a huge additional expense, and you’ll need to budget for that when putting together your offer.
What are the monthly maintenance and utility costs? Is there any type of homeowners association fee? Find out. Also learn what kind of power the house uses, be it gas, oil, electric, or a combination, and ask what the average monthly bill for each is. Also inquire about water, waste removal, and any other utility costs that are applicable.
Has there ever been a broken pipe? Sewer backup? This may sound trivial (not to mention unpleasant), but according to the Insurance Information Institute, broken pipes account for an estimated 22% of all home insurance losses. If the homeowner doesn’t ‘fess up, a good home inspector can probably find evidence of either one of these situations, so you might want to put these on your list of questions to ask your inspector, too.
How old is the roof? The 2015 Remodeling Impact Report from the NATIONAL ASSOCIATION OF REALTORS® says the national median cost of an asphalt roofing replacement is about $7,600. It would be good to know how soon you might need to lay out that substantial amount of cash.
Have there ever been any pest infestations? If there was an infestation, when were pest control procedures undertaken? No, this won’t necessarily mean the house is pest-free at the time you’re buying it, but it’s a good starting point to know the history. Many buyers require that termite treatment be included in the price; it’s easiest to tent for pest removal when the house is empty, between owners.
Are there warranties on the appliances, HVAC system, garage door, etc.? And if so, can the homeowner provide the documentation? Ask for it. This can establish how old these features are, and give you an idea of when they might need to be replaced and how expensive it could be. It will also help you decide whether or not to buy a home warranty.
* Total inventory is active listings plus pending listings. Active listings do not include pending.
Call or email me if you have any questions.
For further details and a city-by-city breakdown statistics, go to http://avi.rereport.com/market_reports.
Real estate related Articles
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| The Wall Street Journal By By Eliot Brown June 7th | Neighbors Clash in Silicon Valley |
| San Jose Mercury By Queenie Wong | California eases restrictions on ‘granny units’ |
| July 7th Avi Urban | How to reduce your home loan interest payments. Read more |
The Silicon Valley 150 Index Corner
The Silicon Valley’s Real estate market is a derivative of the local economy, it prospers and withers depending on how well the local knowledge-based sector performs. The San Jose Mercury News tracks the largest 150 publicly traded companies headquartered in Silicon Valley via an index called the SV150, which you can lookup at www.mercurynews.com. Stocks are valued based on many criteria, but the most important criterion is a company’s future earnings. Therefore, I view the SV150 as a leading indicator for the Silicon Valley’s real estate market. This month’s annual index chart can be viewed below:
Investors Corner
THE S&P CORELOGIC CASE-SHILLER NATIONAL INDEX EXTENDS NEW HIGH AS HOME PRICE GAINS CONTINUE NEW
NEW YORK, December 27, 2016 – S&P Dow Jones Indices today released the latest results for the S&P CoreLogic Case-Shiller Indices, the leading measure of U.S. home prices. Data released today for October 2016 shows that home prices continued their rise across the country over the last 12 months. More than 27 years of history for these data series is available, and can be accessed at goo.gl/c22Dj5
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San Mateo County (SMC): New Residential Building in Silicon Valley
In an area where resistance to affordable housing is epic, the tide is turning.
The city of Mountain View is looking to increase its housing stock by as much as 50 percent — including as many as 10,000 units in the area around Google’s main campus, in the North Bayshore area.
Also, the city council has approved about 2,000 new units elsewhere in town. In all, Mountain View is studying how to add a total of 17,000 units.
Sunnyvale, where Yahoo is based, is looking to transform an older industrial area near one of its rail stations into a new development that would include offices and housing. Menlo Park is studying how to allow for up to 4,500 housing units to be built on industrial land near Facebook’s headquarters.
In San Mateo, a defunct horse-racing track is being redeveloped into a mixed-use project that sits along a train stop and will eventually comprise five office buildings and 1,000 houses, apartments and condos.
Facebook Jumps into the Fray
Facebook is putting up $20 million toward a community investment program designed to address the severe housing crunch in its own backyard, where the tech boom stoked by the latest generation of Internet superstars is making it difficult for many working class families to live.
It is partnering with Envision Transform Build-East Palo Alto (ETB), a coalition of Silicon Valley community groups, and the neighboring cities of East Palo Alto and Menlo Park to create affordable housing, provide economic opportunities in the form of job training and expand legal relief to tenants.
“There is a housing crisis in Silicon Valley. There is a traffic crisis in Silicon Valley,” says Elliot Schrage, vice president of global communications, marketing and public policy at Facebook. “We want to keep tech jobs in Silicon Valley.”
Also, three county measures that would raise hundreds of millions of dollars for affordable housing throughout Silicon Valley passed convincingly last month.
Ostensibly, the new housing is meant for workers at the tech companies in the Valley. Let’s hope the cities and counties start building affordable housing for the people who serve the communities: police officers, firefighters, teachers, nurses, postal workers, etc.…
Has there ever been a broken pipe? Sewer backup? This may sound trivial (not to mention unpleasant), but according to the Insurance Information Institute, broken pipes account for an estimated 22% of all home insurance losses. If the homeowner doesn’t ‘fess up, a good home inspector can probably find evidence of either one of these situations, so you might want to put these on your list of questions to ask your inspector, too.
How old is the roof? The 2015 Remodeling Impact Report from the NATIONAL ASSOCIATION OF REALTORS® says the national median cost of an asphalt roofing replacement is about $7,600. It would be good to know how soon you might need to lay out that substantial amount of cash.
Have there ever been any pest infestations? If there was an infestation, when were pest control procedures undertaken? No, this won’t necessarily mean the house is pest-free at the time you’re buying it, but it’s a good starting point to know the history. Many buyers require that termite treatment be included in the price; it’s easiest to tent for pest removal when the house is empty, between owners.
Are there warranties on the appliances, HVAC system, garage door, etc.? And if so, can the homeowner provide the documentation? Ask for it. This can establish how old these features are, and give you an idea of when they might need to be replaced and how expensive it could be. It will also help you decide whether or not to buy a home warranty.
What are the parking restrictions around the house? Will guests need parking permits? How many permits are you, as the homeowner, allowed, and can you obtain more if you decide to throw a party? Also, check out the parking situation on the property itself. Will your car(s) fit in the garage? Is there room to park anywhere else on the property other than the driveway?
Does the house have any kind of unusual history? In many states, owners are legally bound to disclose if a death or major crime has occurred recently on the premises, but there are other circumstances you should be aware of as well. For example: Did anyone famous ever live there? Was it ever used in a film, TV series, or commercial? If so, you might have to deal with fans ringing your doorbell or driving by at all hours of the day or night.
You can get more information at: http://avi.rereport.com/market_reports
C.A.R.’s 2017 California Housing Market Forecast (SMC)
Home sales expected to edge up slightly in 2017, while prices post slowest gain in six years
Following a dip in home sales in 2016, California’s housing market will post a nominal increase in 2017, as supply shortages and affordability constraints hamper market activity, according to the “2017 California Housing Market Forecast,” released today by the CALIFORNIA ASSOCIATION OF REALTORS (C.A.R.).
The C.A.R. forecast sees a modest increase in existing home sales of 1.4 percent next year to reach 413,000 units, up slightly from the projected 2016 sales figure of 407,300 homes sold. Sales in 2016 also will be virtually flat at 407,300 existing, single-family home sales, compared with the 408,800 pace of homes sold in 2015.
“Next year, California’s housing market will be driven by tight housing supplies and the lowest housing affordability in six years,” said C.A.R. President Pat “Ziggy” Zicarelli. “The market will experience regional differences, with more affordable areas, such as the Inland Empire and Central Valley, outperforming the urban coastal centers, where high home prices and a limited availability of homes on the market will hamper sales. As a result, the Southern California and Central Valley regions will see moderate sales increases, while the San Francisco Bay Area will experience a decline as home buyers migrate to peripheral cities with more affordable options.”
C.A.R.’s forecast projects growth in the U.S. Gross Domestic Product of 2.2 percent in 2017, after a projected gain of 1.5 percent in 2016. With California’s nonfarm job growth at 1.6 percent, down from a projected 2.3 percent in 2016, the state’s unemployment rate will reach 5.3 percent in 2017, compared with 5.5 percent in 2016 and 6.2 percent in 2015.
The average for 30-year, fixed mortgage interest rates will rise only slightly to 4.0 percent in 2017, up from 3.6 percent in 2016, but will still remain at historically low levels.
The California median home price is forecast to increase 4.3 percent to $525,600 in 2017, following a projected 6.2 percent increase in 2016 to $503,900, representing the slowest rate of price appreciation in six years.
“With the California economy continuing to outperform the nation, the demand for housing will remain robust even with supply and affordability constraints still very much in evidence. The net result will be California’s housing market posting a modest increase in 2017,” said C.A.R. Vice President and Chief Economist Leslie Appleton-Young.
“The underlying fundamentals continue to support overall home sales growth, but headwinds, such as global economic uncertainty and deteriorating housing affordability, will temper stronger sales activity.”
Call or email me if you have any questions.
For further details and a city-by-city breakdown statistics, go to http://avi.rereport.com/market_reports.
