June 2017 Letter From My Heart

Good  morning to the Summer Season

My hope is everyone enjoyed a restful Memorial Day weekend, as we remember with thankful celebration, each and everyone who served or is serving our nation today, through our US military. We are blessed by your sacrifice.

For our Veterans:

We offer financing options specialized for you – home or busines.

As we approach the second half of the President’s first year in politics, our economic numbers continue steady, with an overall upward trend.  The slow recovery we have been muddling through since President Bush, seems of have found bottom, showing signs of renewed optimize.  Of course it helps when holds a positive mindset.

Good News:  Both consumer and business expectations are giving a quick boost to a hoped for stronger economy. As we have discussed in the past, each business cycle often has its own unique reasoning.  I am just glad for the continued good news.

Helpful Tidbits To Enjoy

  • Santa Cruz County is the only county of the SF Bay counties where affordability worsened in 2016 compared with 2015.
  • California is back, growing population, after a few months of net outward migration.
  • Housing starts and permits past year.  The 6th year of slow and steady growth.
  • Foreclosure rates back below long term average (new loans written in the past 5 years are abnormally low).
  • Annual appreciation leads to 25 % less homes underwater than a year ago.
  • Available properties to buy in the greater Bay Area match the low supply metrics we have experienced the past 5 years.
  • 34 % of buyers are 1st time home-buyers, Nationwide the average for time a home is on the market drops to 29 days on market.  Both numbers are the best of the past 10 years.  It is supply that is currently restricting sales volume.
  • Last but not least, after 2 Federal Reserve rate increases the home loan rate market has not moved. We are still in the same +/- ¼% band enjoyed since the election.
  • California is back, growing population, after a few months of net outward migration.
  • Housing starts and permits past year.  The 6th year of slow and steady growth.
  • Foreclosure rates back below long term average (new loans written in the past 5 years are abnormally low).
  • Annual appreciation leads to 25 % less homes underwater than a year ago.
  • Available properties to buy in the greater Bay Area match the low supply metrics we have experienced the past 5 year.s
  • 34 % of buyers are 1st time home-buyers, Nationwide the average for time a home is on the market drops to 29 days on market.  Both numbers are the best of the past 10 years.  It is supply that is currently restricting sales volume.
  • Last but not least, after 2 Federal Reserve rate increases the home loan rate market has not moved. We are still in the same +/- ¼% band enjoyed since the election.

 THE GOOD, THE BAD, AND THE UGLY

The Good: Many of our local cities are creating their own sub-energy companies.  Their focus – sustainable energy with “excess” energy being purchased at market rates. Have to love innovative planning  with the promise of better things tomorrow.

The Bad:  Lack of public will and direction to address the issue of transportation management.  We now have four (4) independent groups – just in the City of Santa Clara.  As for me, this suggest any hoped for progress, for all, will never happen.

The Ugly: My pick this month- education.  A big hurrah for anyone seeking more than a high school diploma.  Student loan debt is not the problem.  It far more a question of planning, discipline, and an honest evaluation of one’s talents.  So “boo” to the media excusing headlines.  Regardless, additional education is absolutely critical as is my need to update my study of real estate and the tools of financial planning.

Closing Thoughts: 

I talk extensively and believe in a continual dose of reviewing possible outcomes, what makes it happen, and my response, whether successful or not. It is a good way to transform ideas, into dreams, and to then dreams into one’s personal success story. Truly it takes a team, but it needs to begin within each one of us, first.

It is here where our success stories meet and begin.  For us, our dream begins in helping you achieve your dream about tomorrow, today.  Give us call, we are ready to help and have the skills you need.

Gratefully yours.

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