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Although year-over-year home sales have fallen for the second consecutive month, appraiser Roger Miller with Taketa Miller & Associates recently told members of the Silicon Valley Association of REALTORS® that they shouldn’t be too concerned about recent changes in the housing market.

The housing market is “doing just fine overall,” said Miller.

In fact, Miller said this is the longest period of appreciation he has witnessed in his 40 years in business and he believes it will continue for a while.

Homes have appreciated an average of 20 percent in Silicon Valley. Miller indicated the year-over-year median home price is up 23 percent in Los Gatos and up 23 percent in Saratoga. In Mountain View, the median is up a whopping 25 percent, in Cupertino 19 percent, and in Sunnyvale and Los Altos 17 percent.

Miller said inventory has increased, but sales are down in some places and days on the market have lengthened from an average of seven to 10 days to one month in some areas. It’s not a bad thing, said Miller. It just means the market is settling down.

Watch the specific micro market you are in, said Miller. In places closer to Apple and Google, homes are still selling at a quick pace. In Cupertino, a 2,700 square foot home sold for $2.36 million in just nine days. In Sunnyvale, a $1.9 million home sold in nine days. In Mountain View, a 1,400 square foot home priced at $2.3 million sold in eight days.

The Silicon Valley appraiser said the market usually slows down from the second week of May because of graduations and summer vacation. With the school year starting earlier this year, he expects it to heat up again around the second week of August.

“Take a vacation and be ready to come back in mid-August,” Miller told the REALTORS®.

Miller said the local economy is especially good, with Google’s plans of expanding to San Jose. Unless the giant companies like Facebook, Apple, Google, LinkedIn and eBay are transported somewhere else, he believes the housing market will stay hot for some time.

“I don’t see the market coming down in a while. It’s a little down, but even as it settles down, it will settle down at a higher price,” said Miller.

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It is important for REALTORS® to learn about Propositions 13, 60 and 90 and two propositions that will be on the November ballot, Propositions 5 and 10, because they are the first person consumers go to for information about housing.

Approved by California voters in 1978, Proposition 13 caps the maximum amount of the assessed value of real property to one percent and limits property tax increases to no more than 2 percent per year as long as the property is not sold.

Propositions 60 and 90 stem from Prop 13. Prop 60 allows anyone over the age of 55 to transfer the base year value of their original residence to any replacement residence of equal or lesser value in the same county. Prop 90 extends these provisions to a replacement residence in a different county that accepts Prop 90 transfers. Homeowners must buy the replacement home within two years of selling the existing one, or vice versa.

Propositions 60/90 are incentives for senior homeowners to downsize and move into smaller, less expensive homes without being penalized with a higher property tax. The counties that accept Prop 90 transfers are Alameda, El Dorado, Los Angeles, Orange, Riverside, Santa Clara, San Bernardino, San Diego, San Mateo, Tuolumne and Ventura. El Dorado is dropping out effective November 7.

Proposition 5 is the California Association of REALTORS®’s Property Tax Fairness Initiative and would allow seniors to transfer their tax assessments from their prior home to their new home anywhere in the state and as many times as they wish. The transferred property tax benefit would apply through a proportionate formula whether or not a senior homebuyer purchases up or down in price. C.A.R. estimates the passage of Prop 5 would provide more liquidity in the market and free up 43,000 transactions.

Those opposed to Prop 5 claim it would mean a $150 million a year in lost revenue to the state budget, but according to REALTORS® this analysis does not take into account the property tax increases that might occur when the original homes are sold and assessed at a higher tax rate; nor does it take into account the economic benefits of having someone move into a new community.

Proposition 10 would repeal the Costa-Hawkins Rental Housing Act, which limits the use of rent control in California and allows landlords to increase rent prices to market rates when a tenant moves out. This proposition would allow local governments to adopt rent control ordinances and rules on how much landlords can charge tenants for renting apartments and houses. Cities will be free to impose rent control on any residential unit, including single-family homes and new construction. This proposition would lock in low rents and dissuade investors from building much needed housing in the state.

C.A.R. is supporting Prop 5 because it would be good for housing, and actively opposing Prop 10 because it would hurt housing.

 

The California Bureau of Real Estate (CalBRE) officially became the California Department of Real Estate (DRE) effective July 1, 2018. The DRE has been re­-established after five years as a bureau under the Department of Consumer Affairs.

All telephone, email and website contacts will remain the same. Licensees can use the department’s eLicensing system to reprint license certificates reflecting the change to a department, but will not receive new pocket cards unless their license is being renewed.

Licensees will not be required to change their business cards or marketing materials to reflect the change, as long as their license numbers remain on those materials.

To learn more, visit http://www.dre.ca.gov.

The National Association of REALTORS® is calling on Congress to act now to reform and extend the National Flood Insurance Program, which is set to expire on July 31. Allowing the deadline to lapse would deny necessary insurance coverage to homeowners and buyers in more than 20,000 communities nationwide.

The NFIP provides up to $350,000 of flood insurance coverage for federally-backed mortgage in 22,000 communities nationwide. It also provides an alternative to taxpayer-funded disaster assistance. While there is a growing market for private flood insurance, for many, the NFIP continues to be the primary source of asset protection against flooding, the most common and costly natural disaster in the U.S.

In November last year, the House of Representatives passed the NAR-supported 21st Century Flood Reform Act, which contains numerous important provisions for consumers. The Act reauthorizes the NFIP for a full five years, avoiding the uncertainty of short-term extensions and potential shutdowns and provides guidelines for creating better flood maps for the program. It limits maximum flood insurance premiums to $10,000 per year for residential properties, and directs FEMA to develop more granular rate tables to ensure fewer properties are overcharged by the NFIP. The bill sets aside $1 billion for flood mitigation assistance grants and increases access to private market flood insurance, which often offers better coverage at lower cost. The bill also addresses issues with repeatedly flooding properties that account for 2 percent of NFIP policies and 25 percent of claim payments over the history of the program.

The bill is now in the Senate. NAR is urging the Senate to act quickly. The last time the NFIP expired, approximately 1,400 home closings were interrupted each day until the program was reinstated. In all, the program has lapsed on a number of separate occasions for two months combined with a total of 23 separate short-term extensions.

Earlier this week, the California Association of REALTORS® (C.A.R.) sent out a Red Alert to members about reaching out to their Assembly members and urging them to oppose AB 2364. C.A.R. is pleased to announce that AB 2364 FAILED last night on Assembly Floor. The bill only secured 25 YES votes, with 34 voting NO and the remainder Not Voting. All members of the Assembly were present, so those not voting did so intentionally.

C.A.R OPPOSES AB 2364 (Bloom and Chiu), which deters property owners from returning to the rental housing business for 10 years. The passage of AB 2364 would have significantly weakened the Ellis Act by discouraging new rental housing investment and would have ultimately made the state’s housing crisis even worse.

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REALTORS® discuss issues with Congresswoman Jackie Speier.

 

The leadership of the Silicon Valley Association of REALTORS® (SILVAR) joined more than 9,000 REALTORS® and guests from across the country in the nation’s capital this week for the 2018 National Association of REALTORS® (NAR) Legislative Meetings & Trade Expo to advance policy initiatives that strengthen the ability of Americans to buy, invest, own and sell real estate.

On their agendas this year were visits with members of Congress, regulatory agency officials and top industry leaders; attending some of the nearly 100 available conference sessions on topics ranging from policy to technology; and focusing on the yearlong commemoration of the 50th anniversary of the Fair Housing Act.

REALTORS® are advocating support for several important legislative initiatives, including strong net neutrality protections to ensure the internet is open and competitive for consumers and businesses; renewing and strengthening the long-term viability of the National Flood Insurance Program; indexing homeownership tax incentives for future inflation and permanently extending the tax exclusion on mortgage debt forgiveness; and adopting sexual orientation and gender identity as protected classes in the Fair Housing Act.

NAR is also urging Congress to adopt sexual orientation and gender identity as protected classes in the Fair Housing Act. As members of NAR, REALTORS® subscribe to its strict Code of Ethics, which includes a commitment to provide equal professional services regardless of race, color, religion, sex, disability, familial status, national origin, and as of 2009, sexual orientation, and since 2014, gender identity.

SILVAR leadership met with U.S. Representatives Anna Eshoo, who represents California’s 18th Congressional District, Jackie Speier, who represents the state’s 14th Congressional District and Ro Khanna, who represents District 17. Representing SILVAR at the Hill meetings were SILVAR President Bill Moody, President-elect Alan Barbic, NAR Directors Leannah Hunt and Jim Hamilton, Federal Political Coordinator of Congresswoman Eshoo Carole Feldstein, Executive Officer Paul Cardus and Government Affairs Director Ryan Carrigan. Also at the meetings was Board Director Joanne Fraser.
 

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SILVAR members get ready to meet their legislators.

 

In light of California’s ongoing housing availability/affordability and supply crisis, this year on Legislative Day, in addition to the “hot issues,” the California Association of REALTORS® (C.A.R.) asked REALTORS® to ask their legislators what they propose to do to increase the housing supply in California

C.A.R. senior vice president and chief lobbyist Alex Creel said home prices are too high because of the limited supply of homes and that’s because government at the state and local level is constraining supply and this has led to laws on rent control and exclusionary zoning. The state’s homeownership is among the lowest in the nation. Average rents in California cost 50 percent higher than the rest of the country.

“The solution to the housing affordability crisis is not price control. It is dealing with supply and the constraints that limit supply,” said Creel.

Creel said the legislature can help by streamlining the permitting process, fixing CEQA, requiring local government to meet their housing requirements, fund affordable housing and defeat bills that discourage construction of rental housing.

Thus, after the joint luncheon, SILVAR members met with Senators Jim Beall and Jerry Hill, and Assembly members Evan Low and Marc Berman and discussed the housing issues and asked them to take C.A.R.’s position on the following bills:

AB 1979 (Bonta/Steinworth) – Homeownership Savings Accounts – SUPPORT
This bill allows homebuyers to establish a Homeownership Savings Account (HSA) to purchase a home without paying tax on the interest earned on funds in that account; permits taxpayers to exclude from gross income earned on money contributed to a HSA up to 20 percent of the median home price as determine by the Department of Housing and Community Development; and permits contributions to HSA from relatives and others, as well. This would help families struggling for a down payment on a home, benefiting 3.5 million families.

SB 1469 (Skinner) – Accessory Dwelling Units – SUPPORT
Despite recent changes to state law making it easier to build accessory dwelling units (ADUs), many local governments are using overly restrictive ordinances and other loopholes to deny their development. This bill would streamline the approval process for building ADUs by prohibiting the imposition of impact fees, connection fees and other fees levied by local entities on construction of ADUs and would only permit local government to deny construction if it adversely impacts fire and life safety. It also states if the local government fails to act on the application within 60 days, the project would be approved.

AB 2618 (Bonta) – Specialty Licensing – OPPOSE
C.A.R. opposes this bill because it requires real estate licensees to complete a mandatory property management certification program to perform property management services that they are already licensed to provide. It also requires private owners to obtain this certification even if they use a licensee to manage their property. The measure is unnecessary, duplicates existing law, and provides no additional consumer protections. There is no data to support the need for additional certification or training.

READ MORE HERE

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The Silicon Valley Association of REALTORS® FutureTech 2018, held April 19 in Los Altos, led 200 REALTORS® and brokers in discussions about smart home technology, big data and virtual reality. Products and services showcased at the event were intended to put agents on the forefront of technology so they can better serve their clients in the 21st century, according to Palo Alto broker Michael Dreyfus, with Golden Gate Sotheby’s Realty.

Dreyfus, who chairs the local trade association’s Palo Alto district, opened the program by noting the business of real estate has come a long way from big listing books, which agents and their clients valued, to paperless documents and virtual tours.

A session on the future of smart homes moderated by CBS News technology journalist Larry Magid, featured Sean Paterson, head of marketing and sales for Noon Home, a smart lighting system that wirelessly generates light in different levels to transform the look and feel of a home, and Sophie Le Guen, director of product management of Nest, which produces programmable, sensor-driven, WiFi-enabled thermostats, smoke detectors, security cameras, and other security systems.

Another on how big data is going to affect the future of real estate featured Dave Wetzel, CTO & COO of multiple listing service provider MLSListings Inc., Avi Gupta, president and CEO of SmartZip, which offers predictive marketing services so agents can land more listings by identifying homeowners most likely to sell in any neighborhood; and Stas Alexandrov, founder & CEO of iDevelop.city, an application that allows brokers and developers to view lots, find a place for a building, and see all the specific restrictions in one place.

 

 

READ MORE HERE

 

 

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The Silicon Valley Association of REALTORS® (SILVAR) 7th Certified International Property Specialist (CIPS) Institute took place last week with 15 students registered, including SILVAR CIPS designees who took some courses for audit. REALTORS® enrolled came from around the San Francisco Bay Area and as far as Sacramento.

Interestingly enough, among the full-time REALTORS® registered, only one student was born in the U.S. The other students were born in China, Taiwan, India, and the Philippines. The composition of this year’s class says everything about the cultural diversity in Silicon Valley, according to CIPS instructor David Wyant.

This was the seventh time Wyant and his wife and assistant Patsy, returned to Silicon Valley to teach the CIPS Institute at SILVAR. The Wyants travel all over the world teaching the global real estate courses and are able to share valuable insights with their students. Wyant was named International Instructor of the Year at the National Association of REALTORS® Conference and Expo in Chicago last November. He has received the same award twice before, in 2012 and 2009.

The CIPS Institute provides training in international business issues, including currency conversion, cultural awareness, legal and tax requirements, transaction principles of international real estate, and specifics about the real estate markets in Europe, the Americas, and Asia.

Wyant said global real estate opportunities are everywhere. People move to Silicon Valley from other countries and foreign-born individuals residing here move to new markets. People here may look to invest in property overseas.

“No matter which audience you cater to, the CIPS designation will provide you with the knowledge and tools to expand your business globally,” said Wyant.

Thank you to this year’s CIPS Sponsors of the Day: Darrell Monda with TourFactory; Kyle Chuang with Farmers’ Insurance; Anita Rodal, international liaison with AFEX (Associated Foreign Exchange) and president of SBPI Services, Inc.; and Kim Kim P Nguyen and Suzette Reboton, premier mortgage consultant and vice president and senior branch manager of HSBC Bank USA, Cupertino.

SEE PHOTOS HERE

 

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Pictured are members of the Japanese real estate delegation with SILVAR board directors, Global Business Council members and guests.

Fifteen real estate professionals from Japan came to Silicon Valley early in this month to network with Silicon Valley REALTORS®, bring cultural awareness, and learn about similarities and differences in doing business in the U.S. and Japan.

 

At the Silicon Valley Association of REALTORS® (SILVAR), the Japanese real estate professionals also learned about home inspection and typical inspection services provided to homeowners in the U.S. SILVAR Global Business Council member Atsuko Yube, a REALTOR® with Global Estate Link, arranged the visit. Yube, who is also a past president of the Asian Real Estate Association of America Silicon Valley (AREAA SV) and a board director of AREAA Global Inc., said home inspection is new in Japanese real estate because typically, when purchasing property, the Japanese buyer will tear down the home and build new.

Yube explained it has been the custom in Japan to build new homes because the Japanese like things new. There is also the traditional belief that bad fortune can transfer from the previous owner to the owner. Because of the preference for new and their beliefs, secondhand homes are not as desirable and are heavily discounted. Homes that are newly constructed begin to depreciate in value from the day they are purchased. Most homes are rebuilt after 25 to 30 years.

“The re-sale market has not been strong historically, so when the age of a property is more than 20 years old, its value drops to zero with the property essentially having no value,” said Yube.

Upon arriving at SILVAR, executive officer Paul Cardus and president-elect Alan Barbic welcomed the visitors and shared some information about organized real estate in the U.S., the difference between a real estate agent and a REALTORS®, the REALTORS® Code of Ethics, and membership in the Association of REALTORS®. The real estate professionals met with board directors Mark Wong, Ryan Nunnally and Joanne Fraser, members of the Global Business Council, and leadership from other real estate associations, including Tess Crescini, chair of SILVAR’s Global Business Council and co-president of the Filipino American Real Estate Professional Association Silicon Valley (FAREPA SV), and Anna Maria Valenzuela and Tracey McNeeley, president and director of membership services, respectively, of the Women’s Council of REALTORS® Silicon Valley (WCR SV).

Introductions were followed by a presentation by Yube on Silicon Valley real estate in Japanese. SILVAR member Chika Mori, a REALTOR® with Keller Williams Realty, presented information about the MLS, also in Japanese. Her presentation was followed by a presentation on home inspection in the U.S. by Frank Lesh, executive director of the American Society of Home Inspectors, who flew all the way from Chicago to speak to the group, and Larry Tringali, with Property Inspection Services.

After the presentations, the visitors, members and guests, met for a special evening mixer. Like many foreign guests that visit Silicon Valley, the Japanese real estate professionals were interested in the giant tech companies and were fortunate to tour Google and Facebook during their visit.

 

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