Your May 2021 Letter From My Heart

Good morning to Springtime and joy of May,

Untold stories – New Expectations 

Expected News: News updates fall short in comparison to the original story.

Washington DC routine continues. They splash the headline, then back track, while blaming others for the confusion. This is not unusual and yet can actually be comforting. Most of us are too busy, to have major changes thrust into our daily life. Check gas prices lately?

With Queen Nancy and King Mitch still reigning, loudly, vacant noises are a good bet.

The Bottom Line: Good News

This Spring Buying Season is in full glory, and this season will especially favors those best prepared and ready to Buy.  Good News: We are ready to help, now and I look forward to talking with you. What a great way to take full advantage of today’s amazing rates. 

Don’t Wait – Let’s Talk – Be Prepared

Hope to buy this Spring? Early Preparation is key and now is the time to call. 

Bay Area Buyer Alert:

CoVid panic brought rapid, wide-spread disruption to our home buying market. The suddenness had major impacts on homeownership and rentals. Since then, stocks have recovered rapidly and interest rates have been kept extremely low. Thus while many sold – homes or rentals – Investors were rapidly buying, many with easy access cash. 

Bottom Line: As a result, with wages again increasing and employment rising, Buyers will have to compete with other new Buyers and institutional Investors – many with cash-offers. As of now, Investors purchase about 12 % of the market, while First-time Buyers continue at about 30 %. Such news is most relevant to most major city markets – The Bay Area is one.

The resultGood News for Sellers. We have entered a period where price appreciation is above the trend line. Q: What happens when Investors are satisfied? Most likely prices will moderate, even slow, but not crash. Most Homeowners have excellent loans, built up equity, and will simple say NO to selling pressures. Demand may fall, but so too, will the supply of homes for sale. This is not the crazed market of 2005 – 2007 where lender idiotic loans helped drive speculation, ending in the crash. Even cash Investors have reason not to panic. 

How Best to Compete: Be well prepared – early, even today. It’s the best way to let a Seller know your committed and ready. Cash is nice, but most Sellers prefer Home Buyers. 

Housing Stats:

First: Inventory and Sales. One word – crazy. 

Used-homes inventory continues tracking historical lows. Except in certain markets and property types. Locally condo’s, following historical trends, lag the market. Otherwise the market is very active and Sellers know they can be very selective, in saying Yes. Be prepared today. 

New home building is on fire with the number of contracts, on homes yet built, suggest a 10% appreciation potential. Unheard of historically, and speaks to our great rates, improving employment, and innovative significance of the Bay areas, to the global economy. 

Second: This includes the rehabbing of existing properties, in need of upgrades and restoration. And the KEY To SUCCES in this fast moving market of very 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: Future ProspectsReal estate remains a good, solid long-term investment, regardless rates, or inventory, or builder demand. Call today. Prepare Now. Don’t miss out. It is golden.

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: Recently easing back a bit: VA / FHA are back to the low 2’s. Conventional running high 2’s, and Jumbo loans running low 3’s, and up for 30 year fixed rates.

3) Inflation remains manageable: Rising oil costs and wage pressure being offset by increasing productivity. Yet, the question: If we add a substantial tax burden upon corporations, will it will be passed onto the consumer in higher prices.  This is a significant decision, if you truly want to grow the US economy and restore full-employment.

4) New construction demand – entry level housing – holds strong and is good news.

5) Inflation: There are several predictive models, yet most lack key assumptions. 

Key will be: 1) oil prices and its wide-spread impacts, 2) cost of re-regulation, 3) corporate taxes, 4) stimulus debt deal, and 5) possible massive infrastructure porkbarrel. 6) And with all this, watch the strength of the US dollar.  We are here for you. 

Good News: Data suggests a favorable 2021 for Bay area Real Estate – the global heartland. 

The Good, the Bad n the Ugly

The Good: CoVid Vaccines – Vaccines and herd immunity are winning. More news coming out leaning into the fact we may have over reacted last year. Not a bad thing, but I am happy to hear continued news regarding transmission. CoVid = Common Cold. If we take a step back and think about our own past, we learn to stay away from people and don’t cough on them. This best helps stop the transmission. Not to hard to see facts make the point.

The Bad: Pork and more pork. The worst of the worst of Federal debt policy. Special interests are served, while the purpose and intent, of all the talk, never happens.  We pay, but no gain. Some call it an infrastructure bill. I call it just one more item on a list, Never Going to Happen. Over the 4 past presidents – never happened. The common failure – over 50 % pork. So tell the truth – call it porkbarrel corruption. 

The Ugly: The Media – Facts ignored and Truth dies.

Part 1: DC insurrection and cause of death. There was only 1 gunshot fired, yet no ballistics test to see which Capital officer fired the shot. Second, the Capital guard himself. According to the autopsy report, this good man’s death was from multiple strokes. He did not die from the event in DC. Two unique, separate events, sharing the same sad outcome. My call – Where is the transparency – the simple truth – that calms the waters the press called insurrection.

Part 2: CNBC spent April 13, knowingly misleading the public as to home ownership.  Missed info on “forbearance”, missed the facts on affordability, and truths about incomes. . Just missed, missed and missed. What is the motivation and why this date, I don’t know. What I do know: Orchestrated lies – lies of arrogance – usually have results opposite the ones desired. 

Closing Thoughts: planning and preparation This year

Consider Proposition 19 and its impacts on your budget. Consider the expectation of increasing taxes on Capital Gains tax. Together, this become a “planning must”, especially if in a higher tax bracket.  Few understand Prop 19 is a tax on owning real estate or its effect, when selling your property. Few know the full benefits of tax-deferral on real estate sales. 

Together we can discuss beneficial changes to your estate planning. We can discuss 

the potential benefits of deferring Capital Gains tax liability – State and Fed. 

Good News: We have good tools and many options to minimize – even avoid – paying tax on your appreciated properties – this year or in the immediate future. There is even a golden handshake – built into the real estate tax code. This benefit is not available to stocks. With stocks, you must pay taxes the year you sell. With real estate, we have options and choices. Call us, we would love to share this conversation and opportunity with you. Call today. 

Considering real estate – today or tomorrow – call us.

We help you explore the many options and see which are safe and feasible for you. Building wealth for a more secure future for you and your family. 

 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-deferral, for those seeking tax-advantages with their current real estate and businesses. We are proud to offer several proven tools and alternatives, designed especially for highly appreciated holdings. Helping you keep your cash working for your future. 

And for those – like myself – maturing older, real estate becomes ever more personal. If true for you, let’s talk. Together, we can help find answers and solutions to questions about our, too soon, tomorrow – today. We can address a range of questions, from working at home, to a multitude of retirement options. We can bring clarity to important real estate planning issues.

Our Goal:

Be insightful and practical. 

Working with you in finding best answers and solutions. 

No short cuts. 

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.