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  • California home prices rose by 5.8 percent year over year in May and are projected to grow by 9.7 percent by next spring.
  • U.S. rents rose by 3.1 percent on an annual basis in May, further eroding affordability.
  • Although home values throughout most of the Bay Area are currently considered normal, most are projected to be overvalued by 2022.

    Golden State homes should appreciate at almost double the national rate by next spring, though price growth and increasing rental costs do not bode well for affordability.

    CoreLogic’s latest Home Price Insights report says that U.S. home prices rose by 6.6 percent from May 2016 to May 2017. California home prices grew by 5.8 percent in that time period, while the San Francisco core-based statistical area saw 4.6 percent annual appreciation.

    Single-family rent inflation grew by 3.1 percent year over year in May, a reflection of constrained housing inventory and yet another obstacle for those hoping to enter the housing market while mortgage rates remain historically low.

    “For renters and potential first-time homebuyers, it is not such a pretty picture,” CoreLogic President and CEO Frank Martell said. “With price appreciation and rental inflation outstripping income growth, affordability is destined to become a bigger issue in most markets.”

    Housing affordability is already a national problem, dropping to a near nine-year low in the second quarter, according to a recent report from ATTOM Data Solutions. That analysis said that home prices grew faster than wages on an annual basis in 87 percent of U.S. housing markets, including most of the Bay Area.

    California’s affordability problem is unlikely to improve in the coming year if CoreLogic’s forecast is accurate. The HPI calls for 9.7 percent home price appreciation through May 2018, compared with 5.3 percent appreciation nationwide.

    Although the Bay Area has some of the nation’s priciest homes, most parts of the region are still considered to be valued normally. CoreLogic says that the San Francisco, Oakland, San Jose, Napa, and Vallejo CBSAs had normal home values as of May. San Rafael is currently considered undervalued, while Santa Rosa is overvalued.

    Looking ahead, CoreLogic expects that homes in the San Jose, Oakland, Napa, Vallejo, and Santa Rosa CBSAs will be overvalued by May 2022. Home values in San Francisco and San Rafael are projected to remain normal over the next five years.

    Source: https://blog.pacificunion.com/forecast-california-home-prices-to-grow-by-10-percent-through-2018/

Posted in:General and tagged: Bay Area Real Estate News
Posted by Michael Frangadakis on September 1st, 2017 1:37 PM

Median Home Prices Fall in 4 of 9 Counties

Solano and Sonoma County Home Prices Post Solid Y-o-Y Gains

CALIFORNIA, AUGUST 24, 2017 – The San Francisco Bay Area real estate market softened in July 2017 as single-family home and condominium sales fell a higher than expected 19.5 percent from June 2017. July 2017 home sales were down 5.6 percent from 2016 marking the lowest July sales volume since 2010.

“San Francisco Bay Area home sales took a tumble in July, the lowest July sales since 2010 and the biggest June-to-July decline since 2006,” said Madeline Schnapp, Director of Economic Research for PropertyRadar. “While a sales decline in July is expected as we approach the end of the prime selling season, home affordability remains a persistent drag on the market with no end in sight.”

At the county level, July 2017 sales were down from July 2016 in eight of the nine Bay Area counties. San Mateo, Solano, and Sonoma counties posted the largest annual declines of 16.2, 15.6, and 13.9 percent, respectively. Marin County was the only county that posted an annual sales gain of 6.1 percent.

The July 2017 San Francisco Bay Area median home price (single-family residence) was $800,000, down 4.5 percent from $815,000 in June 2017. On a year ago basis, prices were up 5.6 percent from $759,000 in July 2016. At the county level, July 2017 median home prices ranged from a low of $410,000 in Solano County to a high of $1.25 million in San Mateo County.

On a year ago basis, July 2017 median home prices were down in four of the nine Bay Area counties. The largest price declines were in Marin (-13.7 percent), San Francisco (-9.8 percent), San Mateo (-3.8 percent) and Santa Cruz (-0.9 percent). The biggest annual price increases were in the lower priced counties, Sonoma (9.1 percent), Solano (7.9 percent), Alameda (6.2 percent), Contra Costa (6.1 percent).

“Not surprisingly Sonoma and Solano counties saw the highest annual median price increases,” said Schnapp. “These counties are the farthest from the San Francisco-Silicon Valley million-dollar corridor. Vallejo, a city in Solano County, saw their annual median home price jump nearly 20 percent.”

“Smart investors and homebuyers recognized that Vallejo, whose July median home price was $385,000, nearly 70 percent less than San Francisco’s, presented an interesting value proposition,” said Schnapp. “Vallejo’s secret weapon is the San Francisco Bay Ferry system that transports commuters from Vallejo to downtown San Francisco in an hour. Grab a cup of coffee, sit down next to a window and connect your laptop to the ferry’s WiFi system and watch some of the most spectacular scenery in the world roll by at 40 miles per hour. It’s no wonder that Vallejo real estate is popping.”

“Given the fact that economic growth fundamentals are unlikely to change anytime soon, for the savvy real estate investor or buyer that can tolerate a longer commute, there is still plenty of value out there in counties within striking distance of the San Francisco Bay Area,” said Schnapp. “Nosebleed prices in the Marin to San Francisco to Silicon Valley corridor are beginning to falter as buyers migrate to neighboring counties or out of the area in search of more affordable housing.”

Source: http://news.theregistrysf.com/san-francisco-bay-area-home-sales-tumble-19-5-percent-july/

Posted in:General
Posted by Michael Frangadakis on August 25th, 2017 2:20 PM

Neighborhoods with at least one good elementary school have greater home values as well as higher home price appreciation over the long term compared to homes without good schools, according to the 2016 Schools a Housing Report released today by ATTOM Data Solutions, the new parent company of RealtyTrac.

ATTOM analyzed home values and price appreciation in 2016, along with the 2015 average test scores in 18,968 elementary schools nationwide in 4,435 zip codes.

A good school is defined as a school with an overall test score of at least 30% above the state average.

Of the zip codes with at least one good school, the average estimated home value was $427,402. This is 77% higher than the average home value of $241,096 in the zip codes without good schools.

“While good schools are one of the top items on most homebuyer checklists because of the quality-of-life benefit they provide, this report shows that high-performing schools also come with a financial benefit for homeowners in most markets, at least over the long term,” said Daren Blomquist, ATTOM senior vice president.

“Meanwhile, home prices in zip codes without any good schools tend to be more volatile, which might work to a homeowner’s financial benefit in the short term but not over the long term of at least 10 years,” Blomquist said.

Approximately 143 metros, or the 83% of the 173 metropolitan statistical areas analyzed for the report, had higher average home values in zip codes with good schools than in zip codes without good schools.

In some metros, the difference was significant from areas with at least one good school and the areas without. The metro area with the greatest difference in home prices was Birmingham, Alabama, at 169% higher. Flint, Michigan, came in second at 129% higher, followed by St. Louis at 99% higher, Detroit at 97% higher and Baltimore at 95% higher.

“In my experience, buyers will almost always choose to buy a home in a good school district,” said Matthew Gardner, chief economist at Windermere Real Estate, covering the Seattle market, where average home values were 64% higher in zip codes with goods schools than in those without.

“In turn, this creates greater demand for homes in high-performing school districts and causes these sub-markets to appreciate in value at higher rates than other neighborhoods,” Gardner said. “Interestingly, we see demand for these homes from buyers without school-aged children as well because they look at the school district as an added layer of protection should home prices start to soften.”

Homeowners in zip codes with at least one good school gained an average of $74,716 in value since the purchase, an average return on investment of 32%. On the other hand, homeowners in zip codes without good schools gained an average of $23,311 in value since their purchase, an average return on investment of 27.5%.

For families looking to rent, it is an entirely different story as some are being priced out of good school districts. Families looking to move this summer are taking a closer look at the quality of school districts.

Rents in some cities are significantly higher in areas with the best-rated schools over areas with low-rated schools.

Source: http://rossnwrealestate.com/back-school-heres-impacts-home-values/

Posted by Michael Frangadakis on August 18th, 2017 1:19 PM

Autumn wind will be here any week now and they will blow a chilly reminder that winter is fast approaching. Perform the following maintenance tips each fall to protect your property's value and prevent major repairs.

Roof, Gutters and Downspouts

Rain, ice, snow and wind can all cause damage to your roof and gutters. Now’s the time to trim back all tree limbs and vegetation away from the roof. You also should remove debris, such as leaves and sticks from your gutters and downspouts. Clogged gutters don’t allow water to properly drain away from the home, which can cause seepage in your ceilings and walls. You can also invest in gutter guards, a screen that prevents debris from entering the gutter and directs the flow of water away from the house and into the ground.

Water Heater

You don’t want to find out that your water heater isn’t operating properly when you need it most. So use this time to perform an annual inspection, which includes having your tank’s pressure and temperature relief valve checked. In addition, remove sediment from the bottom of the tank by draining two gallons of water to improve heat transfer and the efficiency of your heater.

Heating and Cooling System

If you have a forced warm-air heating system, you should check the exhaust vent and air shutter openings for dirt and dust. Clean any lint and dirt from the blower blades, motor and burner (if you have a gas heater). Vacuum air passages and check and replace, if necessary, fan belts. To prevent airborne dirt from circulating throughout your home, wash out your reusable filter or replace it if it’s disposable.

Doors and Windows

To help control heating costs, make sure your doors and windows are properly sealed. Now is the time to repair or replace weather stripping around door bottoms and jambs and window frames. Check for loose or missing glazing putty and caulking for deterioration. If you have storm windows, install them.

Water Pipes

Frozen or burst pipes can cause major damage to your home and be expensive to remedy. Before frigid weather hits, protect your pipes in unheated areas from freezing by adding insulation, which reduces heat loss from hot-water pipes and condensation on cold water pipes. This can be accomplished by wrapping the pipes with heating tape or blanket insulation and duct tape or by encasing the pipes with preformed plastic foam. In addition, examine your pipes for cracks and leaks.

Fireplace

Before you light the logs and get ready to settle in front of a cozy fire, make sure that your fireplace is in good working order. Clean the chimney flue and, if needed, have it inspected and repaired. Check the seal on your flue, which is designed to keep out drafts. Replace the seal if it is loose or damaged.

If you decide to perform the fall maintenance yourself, disconnect the power for any electrical or gas systems. In addition, before inspecting, cleaning or making any repairs refer to your owner’s manual for all equipment for proper instructions, which should be the final authority on any maintenance.

Outdoor Surfaces and Landscaping

Fall is also a great time to seal your driveways, wood patios and other hardscape surfaces. In addition, prune tree branches away from your home and electrical wires. Plant spring flower bulbs and move sensitive potted plants indoors.

Although this list is merely a guide, it can help you keep your home in good shape and have a winter free of major repairs.

Source: http://bhhspreferredauburn.com/article/58/Winter-is-Approaching...Is-Your-Home-Ready

Posted in:General
Posted by Michael Frangadakis on August 11th, 2017 3:36 PM

For Realtors across the country, summer means more than just nice weather.

This season seems to shine a special light on the housing market, as an influx of potential homebuyers and sellers put on their best game face and come out to play.

Traditionally, we see 40 percent of total home sales occur in the spring and summer months, and last year proved no different: The National Association of Realtors (NAR) reported the top 10 dates for home listings in 2016 all fell in April, May or June.

As we head into 2017’s hottest months, the forecast reveals much of the same.

It’s critical to have everything prepared in order to be as competitive as possible this summer.

Whether you’ll be helping an old client or working on a new opportunity, show off your best skills and strategies, and keep these four tips in mind.

1. Buddy-up with a builder

Lack of inventory was a major hindrance to market success in 2016. As news of the shortage percolated over the year, many potential buyers became hesitant to go through with a home search.

As a result, Realtors had a harder time getting buy-in from potential clients.

While the problem will take over a year to remedy, 2017 could be the year we see builders hit their stride.

According to a recent Deloitte report, homebuilders’ confidence continues to rise, and housing starts are predicted to reach 1.5 million in 2017. This is up from 1.3 million last year.

Because inventory is still on the low end, it’s important to connect with contractors to stay abreast of new listing opportunities.

Building these relationships will ensure a steady stream of properties on the market, and allow you to avoid the seasonal wrestling match.

2. Be mindful of previous clients

Another important tool Realtors neglect to utilize: their past clients.

With the chaos of 2007 far behind us, consumer confidence is back, creating new potential homebuyers for the market.

Agents shouldn’t let the influx of new prospects distract them from tending to their old clients. It’s always important to contact them, share valuable information and remind them why they loved working with you in the first place.

Treating these past clients right is the key to drawing new business; referrals and word-of-mouth are the secret to success for many top producers.

If you can get your customers to spread a good word, you’ve already got proof of production on your side.

3. Brush up on technology

Some Realtors may show resistance to technology, but doing so keeps their business from evolving.

Technology has so many benefits, and you’d be missing a massive opportunity to increase your business if you don’t hop on the bandwagon.

From 3-D home tours and paperless systems to rapid digital transactions like e-signing services, technology can truly help set you apart.

Today’s client is an educated one. Thanks to the wealth of data at their fingertips, more and more interested homebuyers are contacting a Realtor only after they’ve done their own research.

4. Remember your worth

While clients are taking the reigns early on, agents still play an essential role; technology can’t completely replace a caring, invested Realtor, and something as simple as an open house still works wonders.

Buying a home is a huge financial undertaking that still unnerves many clients.

According to NAR, 87 percent of buyers purchased their home through a real estate agent or broker just last year. NAR reports this number has steadily increased by 69 percent since 2001.

As the summer season kicks-off, let these words of wisdom stick with you: In real estate, you don’t have to build it for them to come — you just have to sell it for those that do.

Source: https://www.inman.com/2017/05/17/four-tips-surviving-summer-real-estate-market/

Written by: Chris Miller



Posted in:General
Posted by Michael Frangadakis on August 4th, 2017 2:26 PM

Bay Area single-family home prices rose 7.9 percent in June from a year earlier, outpacing the 7.0 percent statewide price increase — and Bay Area home prices remain far more expensive than statewide home prices, according to a new California Association of Realtors report.

Closing in on a million bucks, the Bay Area’s median price of $908,740 for single-family homes was much higher than the statewide median sale price of $555,150.

And look at some of the numbers from specific counties: The median price rose 12.6 percent year-over-year to $1,182,500 in Santa Clara County and 12.1 percent to $900,000 in Alameda County. It jumped 9.8 percent to $1,433,750  in San Mateo County, 8.8 percent to $1,469,000 in San Francisco and 5.6 percent to $660,000 in Contra Costa County.

 

All of this is driven by the combination of low housing supply and job growth. Worried that they won’t otherwise seal the deal, buyers are pushing sale prices higher and higher.

 

Broken down another way, the data show that the highest per-square-foot prices in the state were in the Bay Area. At the top of the list was San Francisco ($909 per square foot), followed by San Mateo County ($848) and Santa Clara County ($662).

 

And which California counties showed the sharpest drops in inventory? The report showed the top five were all in the Bay Area: San Mateo was No. 1, followed by Santa Clara, Alameda, San Francisco and Contra Costa counties.

 

“A lack of available homes for sale continues to be the largest single factor influencing California’s housing market,” said C.A.R. President Geoff McIntosh. “With active listings 13.5 percent lower than last June, we’ve now experienced a full two years in which active listings have fallen on a year-over-year basis and the lowest inventory level this year. Would-be sellers aren’t listing their homes as many of them would also face an inventory challenge if they were to turn around and buy another property.”

 

Tight inventory combined with buyers’ desperation, spurring sales on a year-over-year basis. The volume of sales was up 2.4 percent across California and 6.1 percent in the Bay Area.

 

Sales jumped 9.4 percent in Santa Clara and San Mateo counties; 8.2 percent in Contra Costa County; and 4.8 percent in Alameda County.

 

In San Francisco, the number of sales declined by 5.6 percent.

 

This chart shows year-over-year changes in price and sales for single-family homes.

A report analyzing sales data for June shows that Bay Area counties led the state in housing price increases. (Courtesy of California Association of Realtors)

 

Source: http://www.mercurynews.com/2017/07/18/bay-area-real-estate-region-has-tightest-housing-supply-in-state-and-highest-prices/

Written by:

Posted in:General and tagged: Bay Area real estate
Posted by Michael Frangadakis on July 31st, 2017 3:40 PM

Here’s a look at recent news of interest to homebuyers, home sellers, and the home-curious.

SAN JOSE SEES NUMBER OF YOUNGER HOMEOWNERS PLUNGE
The number of young U.S. homeowners has been shrinking since the beginning of the century, particularly in Silicon Valley, one of the nation’s most expensive housing marketa.

A study by apartment-search website ABODO says that the homeownership rate for Americans under the age of 35 — the largest generation of adults — dropped to 33 percent as of 2015, a decline of 5 percent from 2001. In the San Jose metro area, the homeownership rate for young adults plummeted by 34.8 percent in that time period, the largest such drop in the country.

Five California cities rank in the bottom 10 for the lowest rates of millennial homeownership. The Los Angeles metro area has the fewest homeowners under 35 in the country, at 17.8 percent. San Jose ranks No. 5, with a millennial homeownership rate of 20.2 percent, followed by No. 6 San Francisco, where 20.5 percent of those under 35 own homes.

A study earlier this year estimated that millennials in major California cities need around two decades to amass a down payment, and ABODO’s report is even more discouraging to younger homebuyers. Millennial buyers in Los Angeles will need an average of 32.2 years to amass a 20 percent down payment of more than $112,000, the longest wait in the country. San Francisco and San Jose millennial buyers face the next lengthiest savings times in the U.S. — a respective 28.7 years and 27.9 years — to amass down payments that exceed $140,000.


NAPA: ONE OF AMERICA’S TOP CITIES FOR A BACKYARD BASH
The Fourth of July is the quintessential holiday for a backyard barbecue, and there’s almost no place better in the U.S. for one than the Wine Country.

A realtor.com report ranks the 10 best American cities for backyard parties based on lot size, outdoor entertainment amenities, online sales of outdoor summer items, and number of sunny days. By that criteria, Napa ranks as the country’s second best city for outdoor summer parties behind Sarasota, Florida. With a median lot size of 8,000 square feet and 260 gorgeous sunny days per year, Napa also earns points for its spectacular scenery and homes that line the Napa River, many of which have private docks.

And speaking of pleasant weather, Los Angeles also makes the cut of top cities for outdoor parties, with 284 sunny days per year, the most on realtor.com’s list. Los Angeles’ median-sized 7,1000-square-foot lot and temperate evenings make it ideal for enjoying a flick on a backyard movie screen, an increasingly common sight in the city.


OAKLAND RENTS DROP ACROSS THE BOARD IN JULY
Though Oakland remains a hot spot for Bay Area home shoppers who are priced out of San Francisco, rents in the city are at least cooling off this summer.

Zumper’s latest monthly rent report puts the median monthly rent for a one-bedroom apartment in Oakland at $2,100, tying it with Los Angeles for the nation’s sixth priciest market for tenants. One-bedroom apartments in Oakland fell by 0.5 percent from June and 7.5 percent from July of last year, while two-bedroom rental prices dropped even more.

As the nation’s most expensive rental market, San Francisco’s median price of $3,450 for a one-bedroom unit was up 2.4 percent from June but down 1.7 percent year over year. With a median rent of $2,390, No. 3 San Jose saw one-bedroom rents rise by 0.8 percent on a monthly basis and 4.8 percent from one year earlier.


MORTGAGE RATES AGAIN FALL TO 2017 LOW
Mortgage rates declined to another 2017 low last week, although rising Treasury yields may cause them to rise in the coming weeks.

Freddie Mac says that 30-year, fixed-rate mortgages averaged 3.88 percent for the week ended June 29, down from 3.90 percent the previous week and up from 3.48 percent one year ago. Fifteen-year, fixed-rate mortgages averaged 3.17 percent, unchanged from the week before and up from 2.78 percent at the same time last year.

According to California Association of Realtors President Geoff McIntosh, low mortgage rates may have accounted for the state’s home sales increase in May, though he noted that the Federal Reserve’s recent decision to raise interest rates means that favorable mortgage rates aren’t likely to last forever

Source: https://blog.pacificunion.com/real-estate-roundup-the-plight-of-millennial-homebuyers-in-silicon-valley/

Written by: Pacific Union

Posted in:General and tagged: Bay Area Real Estate News
Posted by Michael Frangadakis on July 21st, 2017 11:49 AM

Six months ago, there was widespread talk about the flattening of the Bay Area housing market — its red-hot temperature had calmed to a simmer.

That conversation appears to be ancient history. To wit, this example: Alain Pinel agent Mark Wong sent out an email blast Tuesday revealing that around 60 South Bay homes, mostly in Sunnyvale and Cupertino, sold for $200,000 or more over the asking price in the last 30 days. And he wasn’t necessarily talking about fancy schmancy places. One modest Cupertino house — 1,046 square feet — sold for $660,000 above its listing price.

The news from Wong is a snapshot of just how nuts the Silicon Valley market has become this spring as motivated buyers fight over a limited number of homes. The competition is especially fierce in Sunnyvale, because of its proximity to hiring at the new Apple spaceship campus, and Cupertino, which is perennially hot because its schools have a reputation for excellence.

Randomly, here are a few of the numbers in Wong’s email:

 A house at 1051 Heatherstone Ave. in Sunnyvale listed at $1,888,000 and sold for $2,370,000 — $482,000 over asking.

 A house at 553 Croyden Court in Sunnyvale listed at $1,998,000 and went for $2,450,000 — $462,000 over asking.

 A townhouse at 982 La Mesa Terrace, also in Sunnyvale, listed at $1,099,000 and sold for $1,400,000 — $301,000 over asking. For a townhouse.

 “The listing price doesn’t mean anything anymore,” Wong said. “It’s just a number.”

 “Most of the agents, they love to list under the fair market value, so that’s why it creates an auction-style sale,” he said. “The buyers are smart people. They look around. And when they see a property below the fair market value, they think they’ve found a good deal and they’ll jump on it. Then everybody jumps and it bids up the price.”

 Wong compared Sunnyvale and Cupertino sales from the last 30 days to sales in those two cities during the same time period last year.

 In Sunnyvale in 2016, 75 houses, condos and townhomes sold during the 30-day period. Of those, 58 sold for more than the listing price, but only eight went for $200,000 or more above asking. This year’s 30-day totals: 84 homes sold, 74 for above asking — including 37 for $200,000 or more above asking.

 In Cupertino, these were the 2016 numbers: 60 homes sold, 45 above asking, with five selling for $200,000 or more above the listing price. This year: 60 homes sold, 50 above asking, including 15 for at least $200,000 more than the listing price.

 The numbers show “that the competition is much tougher than last year,” Wong said, “and buyers got used to this kind of pricing strategy in purchasing.”

But this is not just a tale of those two cities. Agents recently have reported escalating prices in Mountain View’s Monta Loma neighborhood; priced out buyers have given up and moved down the road to Sunnyvale. Homes have been going for $300,000 over asking in Redwood City and — no surprise here — in Palo Alto.

In the East Bay, Pacific Union agent Carla Buffington said buyers priced out of Oakland’s Rockridge neighborhood simply scoot over to nearby Temescal, while buyers who can’t afford homes in North Berkeley try their luck in the Berkeley Flats. In Oakland, she said, a home in the Fruitvale district recently listed for $789,000; its sale is pending for more than $1 million.

“I feel like everybody has a million dollars,” she quipped. “There’s just a lot of crazy sales.”

Which brings us back to Wong’s email blast.

Its “way over asking” sales in Cupertino include a house at 18625 Ralya Court that listed at $1,299,999 and sold for $1,622,500 — $322,501 over asking. A house at 10384 N. Portal Ave. listed for $1,788,000, then sold for $2,160,000 with 11 offers — a cool $371,200 above the asking price.

 

Source: http://www.mercurynews.com/2017/07/11/bay-areas-dizzy-real-estate-market-over-asking-bidding-wars-escalate/

Written by: RICHARD SCHEININ

Posted in:General
Posted by Michael Frangadakis on July 13th, 2017 4:05 PM

California’s housing market bounced back in May with strong monthly and annual gains in existing home sales and median home price in every major region of the state. The Inland Empire experienced the largest sales gain with a 9 percent increase in existing home sales from last May, followed by an increase of 6.9 percent in the Los Angeles Metro Area, and a 4.9 percent rise in the San Francisco Bay Area.

Information collected by the California Association of Realtors from 90 Realtor associations and MLSs statewide, shows closed escrow sales of existing, single-family detached homes in California totaled 430,060 units in May. The May sales figure was up 5.4 percent from the revised 408,030 level in April and up 2.6 percent compared with home sales in May 2016 of a revised 419,000.

Mortgage rates dropping to the lowest level since November could have been a motivating factor for the May sales increase, according to Geoff McIntosh, president of the state Realtor association. “The low interest rate environment, however, may not last long as the Federal Reserve’s gradual rate hike and plan to reduce its balance sheet will likely lead to higher rates, and could change the momentum of the market,” said McIntosh.

The statewide median price stayed above the $500,000 mark for the third straight month, reaching the highest level since August 2007. The median price was up 2.3 percent from a revised $537,920 in April to reach $550,200 in May, and was 5.8 percent higher than the revised $519,930 recorded in May 2016.

The May sales increase was wide reaching as every major region in the state posted an increase over the previous year. Month-to-month and year-to-year sales in Santa Clara County were up 26.2 percent and 6 percent, respectively. The median sales price of a Santa Clara County home in May rose to $1,200,000, 3.4 percent higher than the April median of $1,160,000 and 9.1 percent higher than the May 2016 median of $1,100,000.

Alameda, San Mateo, and Santa Clara counties had the lowest inventory, at 1.7 months in May. A six-month supply is considered normal for the state.

“The lack of inventory has become a serious issue in the Bay Area and unless it is addressed, will continue to drive up home prices and create an even more challenging affordability situation, especially for first-time homebuyers,” said Denise Welsh, president of the Silicon Valley Association of Realtors.

“Without more new homes, the only other way we can generate new inventory is for people to sell; yet we advise them to hold property as an investment. It’s a catch-22 without an easy solution,” added Welsh. “We just simply have to build more homes. We need at least 65,000 more housing units to keep pace with population growth.”

Source: http://www.mercurynews.com/2017/06/30/real-deal-california-housing-market-rebounds-in-may-but-inventory-remains-low/

written by: Rose Meily

Posted in:General
Posted by Michael Frangadakis on July 7th, 2017 12:52 PM

Los Gatos has a cost of living adjustment score of 276.6, which is very expensive when compared to others in California. Also, the area is considered very affluent with a median income of $107,278 per household. With a median age of 43 years, homes in Los Gatos tend to be older than most. The top schools in the city are Blossom Hill Elementary School, Raymond J. Fisher Middle School, and Los Gatos High School.

CULTURE

If you're looking to explore the best restaurants in Los Gatos, then check out Cin-Cin Wine Bar, Dio Deka, and Manresa, Foursquare's most popular places to eat. If you're looking to get a drink, a favorite is Double D's Sports Grille. And a good place to get a cup of coffee is Los Gatos Coffee Roasting Co.

PRICE RANGE

Los Gatos has some of the more expensive homes in the state with a median home value of $1,068,000 and a current average list price of $2,217,863. The Los Gatos market showed positive signs this week as sales rose 11.6% to hit 48 homes sold over the last 30 days.

TYPICAL DWELLING

A four-bedroom detached home valued around $2,381,697 is considered a typical dwelling in Los Gatos. If a buyer was looking for a similar home, they would need good credit and a $476,339 cash down payment to get a mortgage with a 3.95% interest rate. The monthly payments would be $7,748 and the property tax rate is $5.62 per $1,000 of taxable assessed value.

CONTACT US

If you are a first time home buying looking for Los Gatos Real Estate contact us today to learn how we can help!

Source:https://www.homesnap.com/news/2017-06-25/article/los-gatos-first-time-homebuyer-report-for-june/948

Posted by Michael Frangadakis on June 29th, 2017 10:47 AM