March 2021 Letter From My Heart

Good morning to the Ides of March,

March Unfolds – New Expectations 

Unexpected News: Janet Yellen’s continued calls for massive deficit spending on the Federal level. To early to know how it plays out. Yet it does suggests weakness of the economies. This in turn creates an un-certainty as to tomorrow’s growth and ability to repay debts – in a timely manner.  Outcome: Rates are going up due to this uncertainty, as US dollar also weakens. Some might suggest what is needed is job growth, supported by tax relief and de-regulation – not just printing money. At the same time, world markets are in need of increased cash, and Ms. Yellen seems willing to help out through increased deficit spending. 

Clearly, there is a wrestle as to how best to restart economies and overcome the damage done by CoVid – worldwide. In the flux of competing needs, interest rates and inflation fears, may be and become the conversation of headlines. Key – Don’t Panic. Instead be prepared. 

This Spring Buying Season is for those best prepared today. Good News: We are ready to help, now. So please, call Today. Be sure to take full advantage of today’s great rates. 

Don’t Wait – Let’s Talk – Be Prepared

Hoping to buy this Spring? Early Preparation is key and now is a good time to call. 

Many are confirming what we have suggested. We may be in the midst of a golden opportunity. How so? Lenders are busy and completing loan application have slowed. So what happens – smooth loan applications are served first. You need the best and we know what our pleases lenders. Other overworked are Appraisers and the Notaries, and we know them. 

 Outcome: Delays are the expected with extended time to complete. Let’s Start Today.

Bottom line: Today’s delay becomes tomorrow’s tension and great patience. Timing matters. 

Housing Stats:

First: Inventory and Sales. One word – crazy. 

Used-homes inventory is down near 25 % – year over year – with sales up about 25 % . Within all this, an estimated 19 % of sales, are cash only. It makes for an active market, with Sellers becoming more selective. Be prepared today. 

New home building is on fire. The number of contracts on homes yet built, are through the roof. Consider: New home construction is up near 15 % from this time, last year.  Current numbers suggest a 10% appreciation potential in home values. Low rates and appreciation. 

Second: Real estate is rocking. This includes the rehabbing of existing properties, in need of restoration And what is KEY To SUCCES in such active, fast moving market, with low rates:

Being ready today, with a strong loan application in hand.

It strengthens your Realtor’s efforts in selling you and being sure 

your offer becomes the winning offer. Being best prepared is critical. 

Third: ProspectsAny way you cut it – low rates, slim inventory, strong builder demand – real estate remains a good and solid investment. Call today. Prepare Now. Don’t miss out. 

Bottom Line:

Call today and let’s prepare for Spring Buying Now.

What’s new for Real Estate 2021:

1) Conforming loan limits take a nice bump upwards. Conventional to $ 548,250 and Hi-cost up to $ 822,375, depending upon County limits.

2) Rates: In spite of the current upward pressure.. VA / FHA are now in the high 2’s. Conventional running 3 % to low 3’s, and Jumbo loans running mid 3’s and up

3) Stable stock market – benefit of consumer friendly rate-policy, at the Federal Reserve.

4) Favorable markets builds buying power for our real estate market. 

4) Inflation remains reasonable: Oil prices and wage pressure, offset by productivity. 

5) New construction demand – entry level housing – is gaining momentum. Good news.

Today’s data suggests a favorable 2021 for Bay area Real Estate. Question: tax and regulation!

The Good, the Bad n the Ugly

The Good: CoVid Vaccines – with more on the way. Starting to reach out to the ‘not at risk’ category of people. My first shot is Wednesday. Vaccines and herd immunity are winning.

The Bad: Uncertainties of Federal policy – fiscal and monetary. A very complex inter-play on a normal day, now responding to our new President and his players. Many changes are expected, with the quiet concern of too many, too fast, and maybe too much. Let’s hope ideas and emotions will not lose sight of more jobs and job growth, infrastructure, inflation, US dollar, deficit spending, and staying out of wars. Let’s hope for more than empty words.

The Ugly: Twitter and others are self-determining – for you and I: What is news worthy, the boundaries of free and open discussion, and what is fair and acceptable political dialogue. Quite a priority of purpose, while at the same ignoring – as if nothing – a most serious and troubling horror – trafficking of innocent children and spreading of child pornography. Cornerstone to our great country is the Bill of Rights and free-speech, but this does not include, harming the unsuspecting child. We want open information, with the right to protect our children, as parents, from those seeking to steal their innocence. We have and must guard, protect, and most of all, love them, as the true and first priority. Who is Twitter and Facebook listening to, for instruction and guidance? I choose the loving-kindness of our Father.

Closing Thoughts: 

I thank you for being a regular readers – your input and thoughts. My goal is provide the words of many experts – their perspectives and reasonings – I have trusted these many years. Being active and always listening, keeps me accountable to you and helps us to keep our politicians aware and accountable, to us voters – especially in regards to real estate. 

And if your are older, like myself, are you ready to return to more personal real estate issues. Let’s talk. Together, we can help find answers and solutions to tomorrow’s questions, today. In this, we can address a range of questions, from working at home, to a multitude of retirement options. We can bring clarity to many important real estate planning issues.  Our Goal: Be insightful, practical, and work together, in finding best answers and solutions. No short cuts. 

Consider Proposition 19.  How many understand this to be a new tax on owning real estate. It is an important point of our conversation. Another question, are you aware of the tax challenges when selling property? We have tools and options on how to minimize or even avoid paying tax today, on your appreciated properties. We can discuss this golden handshakes, built into the tax code – a benefit not available to stocks. With stock, you pay taxes the year you sell. With real estate we have options and choices. Call us, we would love to share this conversations with you. 

Thank you again. Please remember, when considering real estate – today or tomorrow – call us.

– We help you explore the many options and see which are safe and feasible for you. 

 – For Small Business – whom we love – we provide loans offering a full array of financing.

– Residential and Commercial with a full package of lending options.

– Tax-advantage real estate. For those seeking tax-advantage real estate, we are proud to offer several proven tools and alternative, designed especially for highly appreciated real estate and helping you keep your cash working for your future. 

Success begins with strong preparation and with me – as your professional – you have a proven advocate with the insight and experience needed for success. And I do love success and I know the ropes. Call us – the professional team who loves your success. Call us. We are ready.

Thank you and continued blessings.