Santa Clara County (SCC): Granny Flat Restrictions Eased
Lawmakers in Sacramento have reduced the regulations on adding “granny flats”.
Granny flats, so-called because they were originally intended to house elderly parents, were beset by many local regulations that increased their cost.
The new legislation, which goes into effect in January, reduces and/or eliminates many of the restrictions put in place by local governments.
The intent of the law is to add more units to the housing stock.
The legislation says that as long as the granny flat meets current zoning guidelines, the homeowners can avoid having to get a conditional use permit.
Local agencies would be blocked from charging connection fees for the granny flats for water and sewer service. Other requirements, such as adding fire sprinklers for small accessory dwelling units even if the primary residence doesn’t need them, are eliminated under the legislation.
Anthony Andaya, president of the Pacific Southwest Association of Realtors, said granny flats allow for extra rent cash to offset the rising price of homes.
“This allows homeowners to get a little more income out of their properties, which is nice for owners to counteract some of their larger costs right now,” he said.
Lack of inventory and new home building has contributed to the recent run-up in home prices.
This is a step in the right direction, but as Steve Russell, executive director of the San Diego Housing Federations said, “It’s a modest step. Anything that contributes to housing supply is part of the solution . . . it’s a big drop in the bucket but it’s still just a drop in the bucket.”
More information is available in our on-line report at http://avi.rereport.com/market_reports
C.A.R.’s 2017 California Housing Market Forecast (SCC)
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.”
* 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
DSnews
June 7th
| DSnews June 7th | Buffett: There is No Housing Bubble |
| 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
HOME PRICE GAINS CONTINUES IN AUGUST ACCORDING TO THE S&P CORELOGIC CASE-SHILLER INDICES
NEW YORK, October 25, 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 for August 2016 shows that home prices continued their rise across the country over the last 12 months. More than 27 years of history… More is available at goo.gl/Fa9z4j
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San Mateo County (SMC): Granny Flat Restrictions Eased
Granny flats, so-called because they were originally intended to house elderly parents, were beset by many local regulations that increased their cost.
The new legislation, which goes into effect in January, reduces and/or eliminates many of the restrictions put in place by local governments.
The intent of the law is to add more units to the housing stock.
The legislation says that as long as the granny flat meets current zoning guidelines, the homeowners can avoid having to get a conditional use permit.
Local agencies would be blocked from charging connection fees for the granny flats for water and sewer service. Other requirements, such as adding fire sprinklers for small accessory dwelling units even if the primary residence doesn’t need them, are eliminated under the legislation.
Anthony Andaya, president of the Pacific Southwest Association of Realtors, said granny flats allow for extra rent cash to offset the rising price of homes.
“This allows homeowners to get a little more income out of their properties, which is nice for owners to counteract some of their larger costs right now,” he said.
Lack of inventory and new home building has contributed to the recent run-up in home prices.
This is a step in the right direction, but as Steve Russell, executive director of the San Diego Housing Federations said, “It’s a modest step. Anything that contributes to housing supply is part of the solution . . . it’s a big drop in the bucket but it’s still just a drop in the bucket.”
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.
