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The Silicon Valley Association of REALTORS® (SILVAR) last week hosted a delegation of International REALTOR® Members from the Philippine Chamber of Real Estate & Builders Association (CREBA). The IRMs were in town for the National Association of REALTORS® 2019 Conference & Expo in San Francisco.

NAR maintains formal relationships with 100 organized real estate associations around the world, giving REALTORS® confidence in working with professionals that abide by a Code of Ethics. These bilateral partnerships exist in 85 countries to help members establish business partnerships and referral opportunities. SILVAR is NAR’s Ambassador Association to the Philippines and CREBA is SILVAR’s partner association there.

Also attending the event at SILVAR were NAR Global Ambassador to the Philippines Vicky Silvano, Filipino American Real Estate Professional Association Silicon Valley (FAREPA SV) President Cheryl (CJ) Javier and FAREPA SV board directors, SILVAR President Alan Barbic, President-elect Mary Kay Groth, Global Business Chair Joanne Fraser and GBC planning committee members Mark Wong, Ketan Jashapara, Chika Mori, David Tonna, Mitra Lahidji and Lisa Wendl.

Read more and see photos here:

https://www.silvar.org/press-release-1901.htm

At the annual National Association of REALTORS® Conference & Expo in San Francisco, NAR’s board of directors voted 729-70 on Monday to approved MLS Statement 8.0, also known as the Clear Cooperation policy. The policy requires listing brokers who are participants in a multiple listing service to submit their listing to the MLS within one business day of marketing the property to the public.

NAR’s MLS Technology and Emerging Issues Advisory Board proposed the policy as a way to address the growing use of off-MLS listings, also known as “pocket listings.” The advisory board concluded that leaving listings outside of the broader marketplace excludes consumers, undermining REALTORS®’ commitment to provide equal opportunity to all. The policy does not prohibit brokers from taking office-exclusive listings; nor does it impede brokers’ ability to meet their clients’ privacy needs.

Following is the full text of MLS Statement 8.0:
Within one (1) business day of marketing a property to the public, the listing broker must submit the listing to the MLS for cooperation with other MLS participants.  Public marketing includes, but is not limited to, flyers displayed in windows, yard signs, digital marketing on public facing websites, brokerage website displays (including IDX and VOW), digital communications marketing (email blasts), multi-brokerage listing sharing networks, and applications available to the general public.

MLSs can adopt the policy any time, but they must adopt it no later than May 1, 2020.

Click HERE for more information on the MLS Clear Cooperation Policy

Also at Monday’s meeting, the board of directors approved a change to NAR’s Code of Ethics training requirement and extended the ethics training requirement to every three years instead of every two years. The change was made upon the recommendation of a presidential advisory group in order to give members more time to fit the Code of Ethics training into their continuing education schedule and to give local associations adequate time between cycles to administer the program.

Click HERE for more information on the Code of Ethics training requirement.

Statewide housing affordability dipped in the second quarter of this year, according to the California Association of REALTORS®, though some San Francisco Bay Area counties showed some improvement.

According to the California Association of REALTORS® Traditional Housing Affordability Index, the percentage of homebuyers who could afford to purchase a median priced, single-family home statewide in second-quarter 2019 dipped to 30 percent from 32 percent in the first quarter of 2019 but was up from 26 percent in the second quarter a year ago.

A minimum annual income of $122,960 was needed to qualify for the purchase of a $608,660 statewide median priced, single-family home in the second quarter of 2019. The monthly payment, including taxes and insurance on a 30-year, fixed-rate loan, would be $3,070, assuming a 20 percent down payment and an interest rate of 4.17 percent. The interest rate was 4.62 percent in first-quarter 2019 and 4.70 percent in second-quarter 2018. 

San Francisco County was the least affordable county in the state, with just 17 percent of households able to purchase the $1,700,000 median-priced home. Forty-six percent of Solano County households could afford the $445,000 median-priced home, making it the most affordable Bay Area county.

In Silicon Valley, when compared with the first quarter of 2019, housing affordability stayed at the same level in the second quarter in the high-priced Silicon Valley counties of San Mateo (18 percent) and Santa Clara (20 percent) and San Francisco (17 percent).

“Home prices are starting to fall in line. Sellers are realizing they need to be realistic about pricing their home in this market. There is just so much buyers, especially first-time buyers, can afford, even with their high incomes and the low interest rates,” said Alan Barbic, president of the Silicon Valley Association of Realtors.

Not surprisingly, San Francisco (17 percent) and San Mateo (18 percent) counties were the least affordable places in the Bay Area, and requiring the highest minimum qualifying incomes in the state. An annual income of $343,420 was needed to purchase a home in San Francisco County, and an annual income of $338,870 was required in San Mateo County.

In Santa Clara County, homebuyers needed an annual income of $268,680 to qualify for the purchase of a $1,330,000 countywide median-priced single-family home in the second quarter of 2019. The monthly payment, including taxes and insurance on a 30-year fixed-rate loan, would be $6,720, assuming a 20 percent down payment and an interest rate of 4.17 percent.

“I know everyone is tired of hearing about wire fraud, but it is more relevant today than ever. Criminals are getting more creative and we need to work together and continue to inform our clients of things to look out for,” said Kathy Gamch at a Silicon Valley Association of REALTORS® (SILVAR) Cupertino-Sunnyvale District tour meeting.

Gamch, who is title and escrow AVP sales at the Chicago Title Cupertino and Saratoga branches, and escrow branch managers/senior escrow officers Mary Dickerson and Hapi Yamato reminded SILVAR members that consumers continue to be duped by wire fraud. Last year, the Internet Crime Complaint Center received over 20,000 business email compromise complaints with adjusted losses over $1.2 billion.

According to the FBI, consumers average $8 million in losses reported each month due to wire fraud. REALTORS®, real estate brokers, closing attorneys, buyers and sellers are targets for wire fraud. Many have lost hundreds of thousands of dollars because they simply relied on wire instructions they received via email.

How it works is a fraudster will hack into a participant’s email account to obtain information about upcoming real estate transactions. After monitoring the account to determine the likely timing of a closing, the fraudster will send an email to the buyer purporting to be the escrow agent or another party to the transaction. The fraudulent email will contain new wiring instructions or routing information, and will request that the buyer send funds to a fraudulent account. 

Hackers are creative and tend to add a sense of urgency to their emails, like the need for immediate action, said Dickerson. “It’s important for buyers in a transaction to pay extra close attention. If you notice inconsistencies in email addresses and domain names, or if there’s a sudden, unexpected change in the email address that you’re working with, call a trusted phone number and talk to someone who is working on your transaction – your REALTORS®, escrow officer, loan agent. Do not call phone numbers mentioned in the potentially fraudulent email.”

The escrow officials said buyers should first obtain the phone number of their REALTOR® and escrow officer as soon as an escrow is opened. Then prior to wiring, call the phone number they received and speak directly with their escrow officer to confirm wire instructions. If they receive a change in wiring instructions supposedly from their escrow officer, they should be suspicious as wiring instructions are rarely changed.

“It is all of our responsibilities to protect our clients from being victims of wire fraud,” stressed Yamato. “Over communicate to your clients about verifying in person or over the phone before wiring. One simple phone call can prevent a devastating loss!”

Here are more tips they shared for REALTORS® and their clients:

  • Educate your clients about wire fraud occurring in real estate transactions.
  • Understand the protocols of transmitting wire instructions for the title companies you work with and communicate those protocols to your clients.
  • Enable multi-factor authentication on all email accounts.
  • Use a complex password and change passwords on a regular basis. They recommend using passphrases.
  • Regularly check your email rules for any that you did not send yourself.
  • Read emails carefully and if something seems off, call the sender using a known, trusted number.

At “What REALTORS® Should Know About Vastu,” members of the Silicon Valley Association of REALTORS® learned about vastu shastra from Gautam Rana, a longtime practitioner and vastu consultant with Yogic Dwelling in San Ramon. Vastu is the counterpart of the Chinese art and science of feng shui.

Like feng shui, the science says if you are not connected with nature, you will not achieve balance in your life. Vastu also seeks harmony with the five elements of nature – water, air, fire, earth and space, but vastu is a more complex science than feng shui.

Rana studied the science in India and adheres to the guidelines of vishwakarma prakash, an ancient scripture of vastu, which pays attention to the entrance, the shape of the structure, and the elements placed inside the property. Rana said vastu places importance on 16 zones, 32 entrances and the placements of elements in a property.

“The facing of the property has no relevance in vastu,” stressed Rana. “The only way a house can be accurately analyzed is by finding its center.”

Rana sketched a house on white board and illustrated to members how the science is applied. By dividing 360 degrees around the center of a house, building or any other type of structure you get 32 possible locations or entrances.

Once you have calculated the entrance locations. The directions (north, south, east, west) are further divided into 16 zones, which determine the adverse or beneficial effects to those living there (ex. wealth, career, success, illness, accidents, etc.) The use of different techniques in accordance with the five elements in the form of colors and/or metals can mitigate the negative effects.

READ MORE HERE

In the past two weeks the California Association of REALTORS® (C.A.R.) issued several Red Alerts, mobilizing its members of the Silicon Valley Association of REALTORS® and other REALTOR® Associations urging them to contact their state legislators to support C.A.R.’s stand on a number of housing-related bills. Here is an update on those bills:

Assembly Bill 1482 – Tenancy: Rent Caps – PASSED
This statewide rent cap proposal that would apply to most properties not covered by local rent control ordinances, including rented single-family homes and condos in cities with rent control, passed 43-28 on Wednesday night. C.A.R. was able to successfully negotiate a deal with the bill’s author on amendments that allowed C.A.R. to remove its opposition and take a neutral position.

The proposal would prohibit landlords from raising the rent each year by more than 7 percent plus the annual increase in the cost of living. The bill’s author, Assemblyman David Chiu agreed to exempt property owners with 10 or fewer single-family detached homes and set the law to expire in 2023. C.A.R. withdrew its opposition to the bill once these concessions were made. This compromise strikes a balance between preserving the rights of rental property owners while allowing the protection of at-risk tenants.

Assembly Bill 1481 – Tenancy Termination: Just Cause – FAILED
AB 1481 died on the Assembly floor last night. Both C.A.R. and the California Apartment Association opposed this bill because it would have imposed just cause eviction policies statewide and would have required a property owner to provide relocation assistance to tenants for “no-fault” evictions. AB 1481 failed to get the 41 votes it needed to pass out of the Assembly.

SB 329 — Mandatory Section 8 – PASSED
Despite all of our best efforts, SB 329, which C.A.R. is OPPOSING because it creates an effective mandate that landlords participate in Section 8, passed the Senate floor last Thursday by three votes. It now moves to the Assembly where C.A.R. will continue to OPPOSE it.

AB 1590 — C.A.R.’s Sponsored First-Time Homebuyer Tax Credit – PASSED
Good news! AB 1590, C.A.R.’s sponsored first-time homebuyer tax credit bill passed the Assembly. The vote was 61-3. This bill now moves to the Senate.

Members of the Silicon Valley Association of REALTORS® joined 2,500 California REALTORS® in Sacramento on May 1 for the California Association of REALTORS® annual Legislative Day. This year’s theme, “Homeownership Matters,” was evident in the speeches of REALTOR® officials and politicians, and in discussions the REALTORS® had with their respective legislators.

California Gov. Gavin Newsom, the special guest speaker at the morning briefing, said California is experiencing a “crisis moment, a crisis of confidence and a crisis of affordability.”

Newsom is deeply committed to address the housing issue and he wants to build 300,000 to 400,000 units on an annual basis. “Let us not forget that we are better off when we’re all better off,” said Newsom.

State Senator Scott Wiener, author of SB 50, the Housing Development Incentives bill, told REALTORS® at a luncheon that today’s zoning laws, crafted over 50 years ago, are outdated. Wiener said his legislation is about people and people’s lives.

In their meetings with state Senators Jim Beall and Jerry Hill, and Assemblymembers Marc Berman and Evan Low, Silicon Valley REALTORS® asked them to support the REALTOR® position on the following bills:

Vote YES on AB 1590 (Rubio) – First-Time Low- and Moderate-Income Homebuyer Tax Credit for Disadvantaged Communities. C.A.R. is sponsoring this bill which creates a first-time homebuyer tax credit for low- and moderate-income individuals and families purchasing a home in a disadvantaged community. AB 1590 allocates $50 million for first-time homebuyers who have never owned a principal residence; who earn 120 percent or less of the area median income; and who are purchasing a home in a disadvantaged community. The tax credit would be equal to 3 percent of the purchase price of the home or $5,000, whichever is less.

Vote YES on SB 50 (Wiener) – Housing Development Incentives. C.A.R. is co-sponsoring this bill which seeks to authorize the implementation of transit-rich housing project bonuses for new urban developments, so families can afford to live within the communities in which they work. SB 50 encourages the development of mid-rise, multi-family unit, housing construction with close, walkable access to bus and rail transit. Residential developments may only obtain a “height” bonus if they meet local planning, zoning and design requirements. Local governments may approve higher-density housing, with reduced or eliminated parking requirements, provided the site is adjacent to transit or near jobs.

Vote No on SB 329 (Mitchell) – Mandatory Section 8. C.A.R. is opposing this bill which forces all residential rental property owners to participate in all government assistance and housing subsidy programs, such as the Section 8 housing program, by entering into a legally binding contract with a government agency. This bill forces all landlords into contracts whose provisions they may not be able to fulfill. C.A.R. says the bill does not fix the underlying problems with Section 8. Since housing authorities are understaffed, it can take as long as 60 days before all applications are submitted, inspections made, and contracts signed. During that time, the unit sits vacant at a substantial loss to the landlord.

All staunch proponents of housing, the legislators thanked the REALTORS® for their support and advocacy. They called on REALTORS® and others to stand up and speak louder about the need for housing “because the other side is so loud.”

Low said he has received sharp, mean-spirited backlash from those who oppose his pro-housing stance, some even demanding his recall, but he is not wavering. “Oftentimes we need to speak truth to the powerful. I feel very strongly about this. It’s important to make courageous decisions,” said Low.

The California Association of REALTORS® has announced its sponsorship of legislation intended to help first-time, low- and moderate-income home buyers in disadvantaged communities. AB 1590, authored by Assembly Member Blanca Rubio (D-Baldwin Park), would create a targeted tax credit to help working families achieve their goal of homeownership. This legislation is especially timely, given the tight housing market.

“REALTORS® are sponsoring AB 1590 to help make the dream of homeownership a reality for low- and moderate-income Californians in disadvantaged communities,” said C.A.R. president Jared Martin in a statement. “Asm. Rubio’s bill specifically targets regions of the state that will benefit most from increasing the homeownership rate and is an important part of California’s overall fight to beat the housing affordability crisis.”

AB 1590 allocates $50 million to provide a tax credit to first-time homebuyers who meet specific criteria, which include that the homebuyer must have never owned a home previously; must earn 120 percent or less of area median income; and must purchase a home in a state-designated disadvantaged community. Current law identifies disadvantaged communities as areas with, among other things, concentrations of low-income individuals and families facing high housing costs.

Qualified first-time homebuyers who purchase a home between January 1, 2020 and January 1, 2023, will receive a tax credit of up to $5,000. The tax credit will help these first-time homebuyers cover unanticipated costs associated with homeownership. AB 1590 will first be heard in the Assembly Revenue and Taxation Committee on April 29.

“AB 1590’s targeted tax credit helps Californians who need it most,” said Martin. “It creates a pathway to homeownership for people who are currently priced out of the market. It gives working families an opportunity to build wealth and can lift entire communities across the state.”

Alan Barbic, president of the Silicon Valley Association of REALTORS®, indicated, “During his State of the State speech earlier this year, Gov. Gavin Newsom said, ‘If we want a California for all, we have to build housing for all.’ REALTORS® pledge to work with the governor and legislature to make sure all Californians can achieve the American dream of homeownership.”

Barbic said state legislators have advanced a number of bills to help solve the housing crisis. AB 1590 is one of several bills that the California Association of REALTORS® is sponsoring.

“We need to address the affordability problem in order to keep our middle class families here. AB 1590 will help our skilled and service workers, our teachers, the bedrock of our state, achieve their dream of homeownership and remain in the state,” said Barbic.

On May 1, over 2,000 California REALTORS® from across the state will travel to Sacramento to the meet with their state senators and assembly members to discuss this and other housing-related bills. Members of the local trade association are scheduled to meet with State Senators Jim Beall and Jerry Hill, and Assembly Members Evan Low and Marc Berman.

According to the National Association of REALTORS® 2019 Home Buyer and Seller Generational Trends, one in six Gen Xers purchased a multi-generational home, with 52 percent of those Gen X buyers indicating they did because their adult children have either moved back or never left home.

“The high cost of rent and lack of affordable housing inventory is sending adult children back to their parents’ homes either out of necessity or an attempt to save money,” says Lawrence Yun, NAR chief economist.

The study, which evaluates the generational differences of recent homebuyers and sellers, found older millennials have more similarities with Gen Xers and younger boomers, as this group also appears to be leaning toward the purchase of a multi-generational home. Older millennials who bought a multi-generational home (9 percent) were most likely to do so in order to take care of aging parents (33 percent), or to spend more time with those parents (30 percent).

Gen X typically refers to the group born between the mid-60s and early 1980s. Gen Y, also known as millennials, refers to the group born between the mid-1980s and 2000. Millennials as whole account for the largest share of buyers, at 37 percent. Gen Xers account to 26 percent of buyers.

Alan Barbic, president of the Silicon Valley Association ofREALTORS®, is seeing these trends in the Bay Area. “With rents rising and housing affordability challenging, we are seeing families moving in together and seeing it as an advantage,” says Barbic. “Parents want to help their children save so they can someday afford their own home. Older millennials want to take care of their parents. Some bookended boomers are helping their children on one end and their parents on the other.”

Barbic adds, “Many municipalities are now easing restrictions allowing secondary units to be built on single-family residential properties, which helps families and alleviates the growing lack of housing at the same time. These reasons also point to the family unit being important to many Americans.”

Interestingly, downsizing to a smaller home is not currently common among any of the generations. The study speculates Gen Xers and boomers who may have been interested in downsizing could have been hindered by a lack of smaller inventory; or may have been impeded by the increase in multi-generational living to accommodate the needs of adult children and aging parents.

The survey also reveals buyers and sellers across all age groups (87 percent) continue to seek the assistance of a real estate agent when buying and selling a home. “Help understanding the buying process” was cited as the top benefit younger millennials said their agent provided.

April is National Fair Housing Month and reminds every American that all persons have equal access to housing and that fair housing is not an option; it is the law. The Fair Housing Act, Title VIII of the Civil Rights Act of 1968, protects people from discrimination based on race, color, national origin, religion, sex, disability, and family status.

The National Association of REALTORS® and civil rights groups are currently pressing Congress to pass the Equality Act, which adds sexual orientation and gender identity as protected characteristics under the Fair Housing Act and all other federal laws. NAR amended its Code of Ethics to prohibit discrimination based on sexual orientation in 2011 and gender identity in 2013.

Under the NAR REALTOR® Code of Ethics, REALTORS® cannot deny equal professional services to any person for reasons of race, color, religion, sex, handicap, familial status, national origin, sexual orientation, or gender identity.

A home seller or landlord cannot discriminate in the sale, rental and financing of property on the basis of race, color, religion, sex, handicap, familial status, or national origin. They cannot instruct their real estate agent to convey any limitations in the sale or rental of their property.

Buyers or renters have the right to expect:

  • housing in their price range made available without discrimination
  • equal professional service
  • the opportunity to consider a broad range of housing choices
  • no discriminatory limitations on communities or locations of housing
  • no discrimination in the financing, appraising, or insuring of housing
  • reasonable accommodations in rules, practices and procedures for persons with disabilities
  • non-discriminatory terms and conditions for the sale, rental, financing, or insuring of a dwelling
  • freedom from harassment or intimidation for exercising their fair housing rights.

If you or your clients suspect discrimination, visit https://www.dfeh.ca.gov/ to file a complaint.

 

 

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