Here’s a look at recent news of interest to homebuyers, home sellers, and the home-curious.
SAN JOSE SEES NUMBER OF YOUNGER HOMEOWNERS PLUNGEThe 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 BASHThe 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 JULYThough 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 LOWMortgage 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
Written by: Pacific Union
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.
Written by: RICHARD SCHEININ
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.”
written by: Rose Meily
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.
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.
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.
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.
If you are a first time home buying looking for Los Gatos Real Estate contact us today to learn how we can help!
Sale of single-family, re-sale homes fell 4.9% in October from September, but were up 2.4% year-over-year. Year-to-date, home sales are up 0.5%.The median price for homes was down 13.9% year-over-year. This is the twelfth month in a row the median price for homes has been lower than the year before. See the table below for more stats for Single Family.
Condo sales were up 3.8% from September and up 12.5% year-over-year. Year-to-date, condo sales are up 11.1%.The median price for condos was off 4.1% compared to last October. See the table below for more Condo Stats for Santa Clara County.
Inventory of both homes and condos continues to be weak. Home inventory was down 25% compared to last October: 2,014 homes actively listed. Condo inventory was down 44.2% year-over-year.
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Just after 9/11, Los Gatos Realtor Michael Frangadakis, 64, went to the U.S. Army recruiting office in San Jose and asked if there was anything an "old soldier from the '60s" could do to help the military as a civilian.
A young buck sergeant gave the Vietnam War veteran a puzzled look and asked him his age. When he told him he was 54 years old, the sergeant and others in the room chuckled upon hearing that someone over the 42-age-limit wanted to join the reserves. "Needless to say, I walked out very embarrassed," remembers Frangadakis.
But as the country went to war following the worst terrorist attack on U.S. soil, Frangadakis wanted to do something to help the young men and women being deployed to the Middle East.
In 2003, he started the Los Gatos-Monte Sereno organization Operation Yellow Ribbon to support local troops and their families. There are more than 60 soldiers from both communities serving in either Iraq or Afghanistan, according to Frangadakis.
In 2004, at a meeting with fellow Realtor Don Newhall, he learned that his friend was sad to retire from the California State Military Reserve, a component of the U.S. National Guard trained in Homeland Security.
To his surprise, the organization accepted "older" soldiers and average civilians who want to serve their country and still lead normal lives.
"Never in my wildest dreams did I ever think I would be back in uniform helping train soldiers being deployed on how to save themselves and their buddies," says Frangadakis.
The father of three is now a senior combat life-saving instructor who has taught at every major military base in Northern California. He's also trained in homeland security and is a certified military emergency management specialist, having worked two state emergencies that involved wildfires.
"I wanted our citizens to appreciate what our military was doing for us and the sacrifice involved. I want our troops to feel the gratitude they deserve from all of us, unlike the opposite feelings of the war in the '60s," Frangadakis says about his reasons for starting Operation Yellow Ribbon and joining the state reserves.
This Sunday, as the nation commemorates the 10th anniversary of 9/11, Frangadakis plans to visit the Veterans Administration Hospital in Palo Alto to offer emotional support to soldiers dealing with all kinds of post-war issues and needs, including mental health rehabilitation and post-traumatic stress disorder.