April Letter From My Heart – Not to Fool’s

Good Morning,

Spring time and Home buying

A wonderful season of new hope and excitement. Add to this lenders beginning to ease strict guidelines, along with great rates, and we are seeing more and more doors opening for more new home buyers. Enjoy Spring – the fun of buying and smelling the flowers.

Truly this is an excellent time and season to step-off the rent rolls and begin to invest in yourself and your future. If this sounds good to you, or someone you know, please give us a call. We love explaining the joys and benefits of homeownership. Our goal is to help individuals and families meet the dream of owning their own home.

Review of the National market:

Based on Jan-Feb business numbers – soft economies world-wide, oil below $40 per barrel, and low inflation – rates should continue holding steady. The good news is continued expansion in construction and foreign money moving into the USA.

For Santa Clara County, there maybe a bit of a breather after 4 years of steady increases. Time will tell, as one considers foreign investments. Here are some helpful details:

  • Stats: General

1/2% drop in unemployment rate

26,000 additional new jobs in 2015

14,000 new housing units this past year and current year

2015 – Rents & home values – both up about 10% +

  • Market: Housing

Holiday season to current – rents flat

Housing supply – no comparable change over past couple of years

House prices – holding strong

Interest rates – flat

Financing guidelines expanding to include more people

On to our Good, Bad ‘n the Ugly:

The GOOD: Locally, rents are leveling as new rental units come online. This increase in supply should, for the near term, help release pressure. Yet as noted above, new job growth will likely exceed any supply of new “Class A” properties.

There is a slow down in “For-Sale” houses, yet the data may show possible sellers distracted by the Super Bowl. But more likely: Sellers are waiting for higher prices before listing, confirming there are more buyers, than willing sellers, at todays values.

The BAD: Local and California “impact fees” on the building of properties. In a recent discussion, a developer prepared to build a 22 unit apartment, said: “San Jose $1.4M in fees, Sacramento $550K, and Reno $180K.” These differences are real on any level and speak to “why we have little to no affordable housing being built”. A contradictory mess.

The UGLY: A certain lack of intelligent conversation on the political stage. When solutions are not easy, the first instinct of politicians is to ignore the facts that matter, and turn away from the issues of concern. Where is the press to hold them accountable?

Conclusion:

In the midst of all the words, my personal goal for you remains the same. Protecting your assets and helping prepare for the future – regardless the markets or politicians. I appreciate the hard work, discipline, and dedication to be successful, while valuing your time and your priorities. It is to this reality, we dedicate our decades of professional education, training and experience. You are worth it.

Thank you all for our fabulous conversations. Let’s have some more!

Give a call. We are here and ready to help you attain a great loan, with great rates, having both your safety and your future, in mind.

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