Welcome to May – the middle of the traditional home buying season, when the season warms, as does the fun of open houses. There are some slight market shifts. Yet, ours remains stable, buyer friendly, with excellent rates.
Before our Good, Bad ‘n Ugly, a few helpful news points:
1. Rents are stabilizing, while home prices continue northward.
(For San Jose units subject to rent control, increases have been reduced from 8% to 5%. This applies only to units built before 1979. – more news to follow as San Jose is still working towards tighter restrictions. Next meeting May 10.)
2. Interest rates continue range bound, with little real change. It makes for a buyer/seller friendly opportunity. If you are worried about the costs of ownership, worsening traffic conditions, or planning not to retire here, now could be great time to exit ‘Dodge”. Good timing is a good friend.
3. Nationwide home-sales missed all time highs by just a bit in 2015. Top 10 market included: Salem Or, Boise ID, Knoxville TN, Salt Lake City UT, Portland OR, Ogden UT, Akron OH, Harrisburg PA, Vallejo CA and Minneapolis MN. America is on the move again.
This month’s Good, Bad, n Ugly.
The Good: After a year long battle, the San Jose City Council voted on a middle-of-the-road solution to help offset upward pressures on rents. Many high cost areas are doing the same. Rents rise when demand and incomes, increase faster that builders can build or cities will allow new projects. Let’s hope for friendly solutions are beneficial to all.
The Bad: Local governments, yet “painted in a corner” from past fears, showing little regard or responsiveness to rapid and significant increases in tax revenues, tied to real state markets. Fees, sales taxes, property taxes, etc. have increased far beyond expectations. Solutions are available and so too, the money. Stay tuned. What happens next maybe up to you.
The Ugly: Land use. Area-wide, we have seen consistent growth for decade upon decade. What we don’t see is a consistent plan to deal with this. While we see impact fees for new construction, being used for concerns other than affordable housing. The unintended negative outcome is a lack of needed small-size high density housing, for entry level families. We will see if priorities may shift in the future.
Big Data: Buy vs Rent
Big Data points – whether a renter of an apartment or commercial property – to buy instead of paying rent. Further, home-ownership rates are resetting to long term averages, while “household-formation” curves continue to support the need for more rental properties. Are there exceptions – Yes. Are there unique opportunities – Yes. And we can help!!
Give us a call and lets talk. We work with a vast array of people, each with their own needs and dream. Our goal is to help set-up a game plan for our clients and your referrals; one able to better navigate today and tomorrow. A 30-minute conversation helps to clarify the facts, refine targets, and better define one’s opportunities. We are here for you – for your call or email.
Have a fabulous month.