Silicon Valley Association of REALTORS® says ...

Housing is bright spot in economy right now

October 12, 2012 in California Housing Market, Real Estate, Silicon Valley, Silicon Valley Association of REALTORS®, Silicon Valley Housing Market | Tags: California Association of REALTORS, Leslie Appleton-Young | Leave a comment

SILVAR REALTORS® received an upbeat message about the housing market from California Association of REALTORS® Vice President and Chief Economist Leslie Appleton-Young at Wednesday’s Los Gatos/Saratoga District tour meeting. Appleton-Young told REALTORS® the housing market is “the bright spot of the economy” and the fundamentals are sound.

“Yours is the strongest regional economy by far,” she told SILVAR REALTORS®.

Consumer confidence, though uneven, is getting better. Unemployment is heading down. The state, which lost 1.3 million jobs during the recession, has added 485,000 jobs since January 2010.

There is a shortage of inventory for various reasons. Homeowners with equity are still unwilling to sell at today’s prices. Others may want to sell but do not have enough equity in their homes for a down payment and closing costs for their next home. Then there are those who are stuck and cannot sell their home because they are underwater on their mortgage.

Appleton-Young said 29 percent of California borrowers are underwater and 4.4 percent are within 5 percent of being in negative equity. These performing loans may not be sustainable for the long-term. Despite this, Appleton-Young said it is an urban legend that lenders will flood the market with foreclosures after the election.

Mortgage rates are still at 50-year lows and the Federal Reserve has promised they will remain this way until 2015. Fifty percent of people living in the state can afford to buy a home, however many buyers can’t buy because investors are outbidding them; they are “living in the gray” due to a recent short sale, foreclosure or bankruptcy; or their credit scores are low and can’t meet lending requirements because banks continue to practice “defensive lending.”

Due to an improving economy and shortage of inventory, California home prices are snapping back slowly, said Appleton-Young. The California median home price increased 15.5 percent from August 2011 to $343,820. The statewide median home price is forecast to increase a moderate 5.7 percent to $335,000 in 2013. For this year, C.A.R. projects the California median home price will climb 10.9 percent to $317,000.

Strong demand is reflected in August 2012 home sales, which shot up 6.5 percent from August 2011. Appleton-Young said it has been a strong year without tax credits, government programs or stimulus. Of total sales of existing single-family homes in August, 62 percent of sales were traditional equity sales, 14.4 percent REOs and 23 percent short sales.

Appleton-Young projects home sales in 2012 will increase 5.1 percent from the 497,900 existing, single-family homes sold in 2011. The C.A.R. forecast sees sales in 2013 gaining 1.3 percent from this year’s sales.

“The market is working itself through,” said Appleton-Young.

Silicon Valley REALTORS® know global is good business, promote CIPS courses for international business

October 5, 2012 in Real Estate, Silicon Valley, Silicon Valley Association of REALTORS®, Silicon Valley Housing Market | Tags: Certified International Property Specialist (CIPS) Designation, cit, foreign buyers, foreign investors, global real estate, HSBC, international lending, international MLS, National Association of REALTORS, Proxio | Leave a comment

SILVAR Global Business Council Chair Jennifer Tasto welcomes everyone to the association’s global heritage potluck.

Over 30 SILVAR members attended “Global is Good Business,” a heritage potluck promoting SILVAR’s global business initiative on Monday. The event featured an array of traditional California and ethnic dishes, social networking, and an education segment in which real estate professionals with international experience spoke briefly about the importance of doing business globally.

SILVAR Global Business Council Chair Jennifer Tasto and SILVAR President Suzanne Yost explained SILVAR’s global initiative and the purpose of forming a Global Business Council. They said the number of foreign and immigrant buyers has steadily grown in recent years, and SILVAR would like to provide members with the tools and resources that can help them succeed in this market.

Janet Case, CEO of Proxio, explained how the international MLS can help REALTORS® extend their market reach and gain a competitive advantage. “Silicon Valley home buyers come from many cultures and from many parts of the world,” said Case. “Proxio provides multilingual marketing services to agents and brokerages, so they can serve multicultural and foreign buyers better, and global marketing tools that gain international exposure for sellers.”

Kenneth Chan, premium mortgage consultant with HSBC, and Citi mortgage consultant Evelyn Figueira said foreign buyers experience financing challenges like meeting mortgage requirements, moving funds from their country, and foreign income and asset verification. “It’s not as simple as having the money to buy property,”said Chan.

Michael Repka, managing broker and general counsel for DeLeon Realty, said foreign investors are drawn here due to business opportunities, the stability, and appreciation potential. “Real estate is becoming increasingly global,” stressed Repka.

Zach Benjamin, Business Development and Outreach Manager for the National Association of REALTORS® Global Business and Alliances Group, identified some tools and resources from NAR that can help agents, including NAR’s Certified International Property Specialist (CIPS) designation.

SILVAR is offering the five CIPS courses required to fulfill the classroom requirements for the designation on November 26-30 at an early bird registration price of $550 for any AOR member, if they register by Monday, October 15. These courses are open to the public, as well. You don’t have to be a REALTOR® in order to enroll in these courses.

CIPS SCHEDULE AND REGISTRATION FORM

MORE ON SILVAR’S GLOBAL BUSINESS POTLUCK, INCLUDING PHOTOS

REALTORS® share the top 10 things you need to know about the 3.8% tax

September 28, 2012 in California Housing Market, Real Estate, Silicon Valley, Silicon Valley Association of REALTORS®, Silicon Valley Housing Market | Tags: 3.8% tax, National Association of REALTORS | Leave a comment

A viral email continues to circulate indicating that the 3.8 percent tax on some investment income is a tax on all home sales. To help educate REALTORS® and homeowners regarding the 3.8 percent tax passed as part of health care reform in 2010, the National Association of REALTORS® (NAR) has developed the following top 10 list:

1. When you add up all of your income from every possible source, and that total is less than $200,000 ($250,000 on a joint tax return), you will not be subject to this tax.

2. The 3.8% tax will never be collected as a transfer tax on real estate of any type, so you’ll never pay this tax at the time that you purchase a home or other investment property.

3. You’ll never pay this tax at settlement when you sell your home or investment property. Any capital gain you realize at settlement is just one component of that year’s gross income.

4. If you sell your principal residence, you will still receive the full benefit of the $250,000 (single tax return)/$500,000 (married filing joint tax return) exclusion on the sale of that home. If your capital gain is greater than these amounts, then you will include any gain above these amounts as income on your Form 1040 tax return. Even then, if your total income (including this taxable portion of gain on your residence) is less than the $200,000/$250,000 amounts, you will not pay this tax. If your total income is more than these amounts, a formula will protect some portion of your investment.

5. The tax applies to other types of investment income, not just real estate. If your income is more than the $200,000/$250,000 amount, then the tax formula will be applied to capital gains, interest income, dividend income and net rents (i.e., rents after expenses).

6. The tax goes into effect in 2013. If you have investment income in 2013, you won’t pay the 3.8% tax until you file your 2013 Form 1040 tax return in 2014. The 3.8% tax for any later year will be paid in the following calendar year when the tax returns are filed.

7. In any particular year, if you have no income from capital gains, rents, interest or dividends, you’ll never pay this tax, even if you have millions of dollars of other types of income.

8. The formula that determines the amount of 3.8% tax due will always protect $200,000 ($250,000 on a joint return) of your income from any burden of the 3.8% tax. For example, if you are single and have a total of $201,000 income, the 3.8% tax would never be imposed on more than $1,000.

9. It’s true that investment income from rents on an investment property could be subject to the 3.8% tax. But: The only rental income that would be included in your gross income and therefore possibly subject to the tax is net rental income: gross rents minus expenses like depreciation, interest, property tax, maintenance and utilities.

10. The tax was enacted along with the health care legislation in 2010. It was added to the package just hours before the final vote and without review. NAR strongly opposed the tax at the time, and remains hopeful that it will not go into effect. The tax will no doubt be debated during the upcoming tax reform debates in 2013.

Silicon Valley REALTORS® play golf to raise funds for charity

September 21, 2012 in Charity, Silicon Valley, Silicon Valley Association of REALTORS® | Leave a comment

SILVAR members took to the golf course on Monday, September 17 for the 13th Annual Silicon Valley REALTORS® Charitable Foundation Golf Tournament. Over 100 members and guests participated in the special event, which was held at the Los Altos Golf & Country Club, and included a round of golf, a no host cocktail reception, awards ceremony and raffle.

Silicon Valley REALTORS® Charitable Foundation President John Tripp thanked everyone for supporting the annual Foundation fundraiser, which is SILVAR’s biggest event of the year. Proceeds from the annual golf tournament will go to the Silicon Valley REALTORS® Charitable Foundation, which makes grants available to numerous beneficiaries, including scholarships, family and youth programs, housing programs and various other community services in the different communities SILVAR serves.

Congratulations to the tournament’s First Place Winners: Chris Trapani, Justin DeSantis, Peter Ye and Timothy Proschold; Second Place Winners: Brian Cano, Paul Van Every, John McCune and Paul Hossack; and Third Place Winners: Dean Hollingsworth, Adam Smith, Kyle Beagle and Brian Griego. Other winners were Kyle Beagle, Longest Drive – Men; Cammie Brodie, Longest Drive – Women; Dean Hollingsworth and Tawd Frensley, Closest to the Pin – Men; Diane Renna, Closest to the Pin – Women. Receiving a special award for the “Most Fun Team” were Barbara Cannon, Bonnie Kehl, Joanne Fraser and Fred Hibbert.

Moise Nahouraii of Referral Realty – Cupertino won the drawing for a deluxe iPad with data plan (a $1,000 total value). Members still have an opportunity to purchase raffle tickets as the drawing of other raffle items, including the grand cash prize of $5,000, will be held at SILVAR’s Economic Seminar and General Membership Meeting on November 1.

SILVAR would like to extend a special thanks to this year’s generous sponsors! Cart Sponsor: Harrell Remodeling, Inc.; Lunch Sponsor: Sereno Group; Awards Ceremony Sponsor: MLSListings Inc.; Beverage Sponsors: Ratecomb, Property I.D. and Citi; Tee & Hole Sponsors: Alain Pinel Realtors-Los Gatos; EverBank; Law Offices of Peter N. Brewer; Moise Nahouraii – Referral Realty Cupertino; Palo Alto Affiliate Bank; Princeton Capital; Property Inspection Service; Rossi, Hamerslough, Reischl & Chuck; FAREPA (Filipino American Real Estate Professional Association); Property Minder; JCP-LGS Disclosures and Heineken®.

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CFPB proposes rule to improve consumer access to appraisal reports

September 7, 2012 in California Housing Market, Silicon Valley, Silicon Valley Association of REALTORS®, Silicon Valley Housing Market | Tags: appraisals, Consumer Financial Protection Bureau | Leave a comment

The Consumer Financial Protection Bureau (CFPB) has released a proposed rule that would require mortgage lenders to provide home loan applicants with copies of written appraisals and other home value estimates developed in connection with the application. The rule would ensure that consumers receive information prior to closing about how the property’s value was determined.

The proposed rule would require creditors to inform consumers within three days of applying for a loan of their right to receive a free copy of appraisal reports and home value estimates. Creditors would then be required to provide the reports to consumers as promptly as possible, but no later than three days before closing, regardless of whether credit is extended, denied, incomplete, or withdrawn.

The public has until October 15 to review and provide comments on the proposed rule. The CFPB will review and analyze the comments before issuing a final rule in January 2013.

CFPB PROPOSED RULE

SUMMARY OF CFPB PROPOSED RULE

CFPB PRESS RELEASE

September is REALTOR® Safety Month: Stay safe with social media

September 7, 2012 in Silicon Valley Association of REALTORS® | Tags: Andrew Wooten, Facebook, LinkedIn, National Association of REALTORS, Realtor safety, social media, Twitter | Leave a comment

Every day REALTORS® across the nation put themselves in positions where they can be victims of dangerous crimes. The National Association of REALTORS® has designated the month of September as REALTOR® Safety Month. below are tips for our members and consumers on how to stay safe with social media.

Whether on Facebook, Twitter, LinkedIn or other social media sites, because of the nature of your work, you are likely to have “friends,” followers, and connections whom you don’t really know that well. Following these basic steps can help avoid exposing yourself or your data to risk through social media tools. It is vital to consider what you are sharing through the Internet.

Keep Business Separate
One way that you can make sure you are not revealing too much personal information is simple: set up a business account on each platform. Sure, anyone can figure out that Sally Field, REALTOR®, is the same person as Sally Field—but Sally will only accept requests to connect to strangers on the business account, whether Facebook or Twitter. Her personal account stays private (especially once she familiarizes herself with privacy settings), protecting her family photos, links to her kids’ pages, and personal posts from people she doesn’t know.

Tag! You’re It!
When a friend posts your photo, you may be “tagged” against your will. If you don’t want clients or others to find a reference like this—such as a less-than-flattering photo taken at a late night party—you can remove the tag and/or ask the person who posted it to do so. And be sure to follow up and ask friends to check first before tagging!

Don’t Give Away Passwords
Consider this: One way that hackers manage to crack personal passwords is by searching Facebook for easy answers. They know they may find answers to common security questions such as “What high school did you attend?” and “What are the names of your children?” So keep information about family members, household details, and past events to a minimum in order to help prevent this.

Guard Against Identity Theft
These days, anyone can find all kinds of personal information about anyone else. That doesn’t mean you have to make it easy! For example, if you who want to post your birthday, don’t include the year. (And delete any public comments that indicate your exact age.)

Tweets Are Forever
Social media usage has an impact on your safety, as well as your reputation. Carefully consider each item you share, and be aware that old posts, even if they’ve been deleted, may be copied or saved—and the Library of Congress is actually recording every single Tweet.

Safeguard Client Data
Cyber security goes much deeper than safe use of social media: As a real estate professional, you routinely keep sensitive, personal information about clients on your computer. If this information falls into the wrong hands, it can lead to fraud, identity theft, or similar harms. To avoid potential legal and liability costs of a security breach, develop a data security program based on the Federal Trade Commission’s five key principles to a sound data security program. Details can be found at www.ftc.gov/infosecurity.

To learn about more safety strategies, and access free safety resources, including safety expert Andrew Wooten’s webinar “Social Media and Cyber Safety,” visit www.REALTOR.org/Safety.

(Sources: Andrew Wooten’s REALTOR® Safety webinar “Social Media and Cyber Safety”; www.ftc.gov/infosecurity)

The Housing Trust of Santa Clara County has funds for first-time home buyers

August 31, 2012 in California Housing Market, Real Estate, Silicon Valley, Silicon Valley Association of REALTORS®, Silicon Valley Housing Market | Tags: Closing Cost Assistance Program (CCAP), Dan Lachman, first-time home buyers, Margaret Abe-Koga, Mortgage Assistance Program (MAP), Mountain View, The Housing Trust of Santa Clara County | Leave a comment

The Housing Trust of Santa Clara County is asking SILVAR REALTORS® to inform their clients that money is available to help Santa Clara County residents purchase their first home.

“We have money and we want to help. There’s plenty of money for people to qualify,” Dan Lachman, director of lending for The Housing Trust of Santa Clara County, told a focus group composed of SILVAR REALTORS® meeting in Mountain View this week.

Lachman discussed The Housing Trust’s current homebuyer assistance programs and sought feedback from the REALTORS® on how the nonprofit lender can more effectively provide opportunities in Mountain View. The Housing Trust is planning to have a public outreach event for Mountain View residents in the fall. Mountain View City Council member Margaret Abe-Koga joined Lachman and the REALTORS® at the meeting, stating she wishes more people who work in Mountain View could avail of the home buyer programs, so they could live in Mountain View, as well.

The Housing Trust of Santa Clara County makes loans and grants to increase the supply of affordable housing, prevent homelessness and assist qualified individuals and families in buying their first home. Lachman specifically asked the REALTORS® to inform their clients of two programs that provide assistance to first-time home buyers – the Closing Cost Assistance Program (CCAP) and the Mortgage Assistance Program (MAP). In order to qualify for either of these programs, the household income for a four-member household cannot exceed $126,000, or the income for a single-member household cannot exceed $88,200.

The Closing Cost Assistance Program (CCAP) for first-time homebuyers provides 3 percent of the purchase price up to $15,000 towards the down payment, closing costs or other transaction expenses associated with a home purchase. No interest or principal payments are due during the term of the loan. This loan is due when the borrower sells the house or refinances the home, or in 30 years, with a 3 percent deferred interest rate.

The Mortgage Assistance Program (MAP) is an amortizing 30-year second mortgage available for moderate-income first-time home buyers. Second loans of 17 percent of the purchase price up to $85,000 are available under this program, with the interest rate at 1 percent above the interest rate of the first loan.

Lachman and his team have offered to speak to companies and business about the non-profit lender’s loan programs. See the next scheduled workshop here. For more information about The Housing Trust, its programs and program guidelines, visit www.housingtrustcc.org

SILVAR to offer Certified International Property Specialist (CIPS) Institute Nov. 26-30

August 24, 2012 in California Housing Market, Real Estate, Silicon Valley, Silicon Valley Association of REALTORS®, Silicon Valley Housing Market | Tags: Certified International Property Specialist (CIPS) Designation, David Wyant, National Association of REALTORS | Leave a comment

In line with its global initiative to provide educational opportunities for members to succeed in global real estate markets, SILVAR is offering members and other real estate professionals the opportunity to complete classroom requirements for the National Association of REALTORS® Certified International Property Specialist (CIPS) Designation on Nov. 26-30.

CIPS courses provide training in international business issues, such as currency conversion, cultural awareness, and legal and tax requirements. The CIPS curriculum focuses on ownership and transaction principles of international real estate, including specifics on the real estate markets in Europe, the Americas, the Middle East/Africa and the world. Attend the 5-day CIPS Institute at SILVAR and fulfill the classroom requirements for the CIPS designation. You must complete the two core courses, three elective courses, and pass a multiple-choice exam at the end of each course.

The week-long courses will be taught at SILVAR by David Wyant, CIPS, ABR, AHWD, ePRO, GRI, TRC, SFR, a certified NAR faculty member, and 2009 NAR International Instructor of the Year.

SILVAR is offering an early bird registration special of $550 for the entire CIPS Institute (five courses) for any Association of REALTOR® member who registers by Oct. 15! Regular cost for the entire institute for SILVAR members is $599/$625 after Nov. 1; non-members, $625/$650 after Nov. 1.

It is also possible to take individual courses. Each course for SILVAR members is $150/$165 after Nov. 1; Non-members $175/$190 after Nov. 1. Breakfast and light lunch included each day.

Many business professionals take one or all of the CIPS courses in order to expand their knowledge and skills about international business. The invitation to attend SILVAR’s CIPS courses is open to the public.

VIEW FLYER for more details and registration form.

Silicon Valley communities among cities with the highest million-dollar home sales in 2012 Q2

August 24, 2012 in California Housing Market, Real Estate, Silicon Valley, Silicon Valley Association of REALTORS®, Silicon Valley Housing Market | Tags: Cupertino, Hillsborough, Los Altos, Los Gatos, Menlo Park, Palo Alto, Saratoga, Suzanne Yost | Leave a comment

It is expensive to live in the heart of Silicon Valley, but buyer demand for homes, including million-dollar homes, continues to be strong. Real estate information service DataQuick lists the following Silicon Valley communities among the highest ranked areas for million-dollar homes sales in California in the second quarter.

Hillsborough topped the list with 134 sales in 2012 Q2, up from 118 in 2011 Q2, with the most expensive home purchased for $5.28 million.
Saratoga ranked second with 126 million-dollar homes purchased in 2012 Q2, up from 93 in 2011 Q2, with the most expensive of purchased at $5.35 million.
Cupertino ranked fifth (after Manhattan Beach and Newport Beach in Southern California) with 105 million-dollar homes sold in 2012 Q2, up from 88 in 2011 Q2, with the most expensive home purchased for $2.45 million.
Los Altos ranked sixth after Cupertino with 102 million-dollar home sales in 2012 Q2. The most expensive home was purchased for $6 million. Los Altos had 81 million-dollar home sales in 2011 Q2.
In Los Gatos, the most expensive home purchased cost $4.66 million. There were 67 million-dollar homes purchased in the zip code of 95032, up from 44 in 2011 Q2. In the Los Gatos zip code of 95030, 62 million-dollar homes were purchased last quarter, up from 31 in the second-quarter last year.

Despite the hype over Facebook’s IPO, Menlo Park and Palo Alto made the list, but had fewer million-dollar home sales in second-quarter 2012 than the same time last year, according to DataQuick. Menlo Park had 100 million-dollar homes sold in second-quarter 2012, down from 124 last year, with the most expensive home purchased for $4.8 million. Palo Alto had 62 million-dollar homes sold, down from 69 in 2011 Q2, with the most expensive home purchased for $3.15 million.

Silicon Valley Association of REALTORS® (SILVAR) president Suzanne Yost, who is an associate broker with Alain Pinel Realtors in Los Gatos, is not surprised that many of the communities located within SILVAR’s five districts made the list. “Silicon Valley’s economy is healthy compared with other parts of the state because it is the heart of innovation, with many successful tech companies,” said Yost.

Yost added, “Our members have reported a surge of foreign buyers. They are attracted to the region’s weather, diversity, excellent schools, good mix and proximity to shopping, entertainment, the arts and services. We’re not that far from San Francisco, close to the freeways and airports. Buyers know they can’t go wrong and they are willing to pay the price for these amenities.”

SILVAR has five member districts, allowing members to work closely with their communities. They are the Menlo Park/Atherton District (including Portola Valley, Woodside and East Palo Alto), Palo Alto District, Los Altos/Mountain View District (including Los Altos Hills), Cupertino/Sunnyvale District and the Los Gatos/Saratoga District (including Monte Sereno).

REALTORS® support FHFA move to expand short sale eligibility for struggling homeowners

August 24, 2012 in California Housing Market, Real Estate, Silicon Valley, Silicon Valley Association of REALTORS®, Silicon Valley Housing Market | Tags: Fannie Mae, Federal Housing Finance Agency, foreclosure, Freddie Mac, short sale eligibility, Short Sales | Leave a comment

The Federal Housing Finance Agency (FHFA) announced on Tuesday that it will align guidelines for Fannie Mae and Freddie Mac short sales and allow lenders and servicers to quickly and more easily qualify borrowers for a short sale.

The new guidelines issued by Fannie Mae and Freddie Mac to their mortgage servicers will offer a more streamlined approach to the short sale process by consolidating existing short sales programs into one standard short sale program. The program rules will expand eligibility criteria of borrowers, so homeowners who are current on their mortgage payments, yet suffer from specific hardships, will be able to qualify more quickly for a short sale.

Effective Nov. 1, homeowners with a Fannie Mae or Freddie Mac mortgage will be allowed to sell their home in a short sale even if they are currenton their mortgage, if they have an eligible hardship. Servicers will be able to expedite processing a short sale for borrowers with hardships such as death of a borrower or co-borrower, divorce, disability, increase in housing expenses, unemployment, disability, or relocation for a job, without any additional approval from Fannie Mae or Freddie Mac.

“We are pleased with the new guidelines. REALTORS® at the local, state and national level have long advocated for a more streamlined, standardized short sale process. Improving short sale eligibility will allow more families to avoid foreclosure and reduce the negative impact foreclosures have on families and communities,” said Suzanne Yost, president of the Silicon Valley Association of REALTORS®.

Some specific changes include:

Eliminates current Fannie Mae and Freddie Mac short sale programs and creates a single standard short sale process for both entities (Fannie and Freddie HAFA programs will expire at the end of the year).
Enables servicers to quickly and easily qualify certain borrowers who are current on their mortgages for short sales without waiting for an approval from Fannie Mae or Freddie Mac
Offers special treatment for military personnel with Permanent Change of Station (PCS) orders.
Standardizes and clarifies foreclosure suspensions on a property with an approved short sale.
May pay borrowers up to $3,000 in relocation assistance.
Fannie Mae and Freddie Mac will offer up to $6,000 to subordinate lien holders to expedite a short sale.

Additionally, FHFA clarified that a borrower experiencing a hardship must wait at least two years before becoming eligible for a Fannie Mae or Freddie Mac loan. These changes follow FHFA’s announcement in June that established strict timelines for servicers to respond to short sales within 30 days of receipt of a short sale offer, provide weekly status updates to the borrower, and communicate a final decision to the borrower within 60 days of receipt of the offer.

Silicon Valley Association of REALTORS® says …