BelMarinKeysRealEstate.com

THE BUZZ

September is the month of renewed interest in real estate. The demand from buyers will rise. New inventory will make a positive difference. Nationwide, pending home sales stepped back in July and have now fallen on an annual basis for seven straight months, according to the National Association of Realtors. Contract signings are now down 2.3 percent year-over-year.

Lawrence Yun, NAR chief economist, reports that “many overheated real estate markets, especially in the West, are starting to see a slight decline in home sales and slower price growth. Why? Inadequate supply in markets with strong job growth have driven home prices to a point where an increasing number of prospective buyers are unable to afford what they seek.”

Yun expects existing home sales to decrease slightly(1%) this year and then increase next year a bit(2%). Home prices should increase 3-5%.

We need listings for our buyers! If you’re considering selling, now is a great time to talk. If you are a buyer, you need an agent that knows the market. We are here to help.

Smart Homes: The Way of the Future or a Risk to Homeowners?

By Liz Dominguez

Glitches of early iterations aside, smart home technology has an increasingly active presence in the lives of homeowners who are looking for convenience and savings in a pushed-for-time era. From adaptive thermostats that automatically gauge energy

usage and alter temperatures for optimal savings, to smart home speakers that use sophisticated artificial intelligence to provide services and information in real-time, a homeowner can now cross off a variety of menial tasks from their daily to-do list

without doing more than speaking a phrase out loud or clicking a button on their mobile device.

But what is the true cost of this convenience? Some gadget adopters are reporting invasion of privacy, security risks, and more. These are a few of the reported instances thus far:

1. Gadgets May Be Susceptible to Hacking

Last August, Wired published a story about a British security researcher for MWR Labs, Mark Barnes, who was able to install malware on an Amazon Echo device, turning it into a surveillance device that silently streamed audio to his own server. While newer models cannot be jailbroken this way, Amazon has not released any software to fix the issue with older units.

2. Smart Technology Could Lead to Location-Based Tracking

Earlier this month, security investigator Brian Krebs reported on a privacy vulnerability for both Google Home and Chromecast—found by Craig Young, a researcher with security firm Tripwire—that leaks accurate location information about its users. According to Young, attackers can use these Google devices to send a link (which could be anything from a tweet to an advertisement) to the connected user; if the link is clicked and the page left opened for about a minute, the attacker is able to obtain a location.

3. Glitches Could Lead to Invasion of Privacy

According to local news stations in Portland, Ore., a local resident received a disturbing phone call from one of her husband’s employers telling her to shut off her smart home devices. After using Amazon devices throughout her home to control temperature, lighting and security, Danielle was made aware that a private conversation was accidentally recorded by Amazon’s artificial intelligence system, Alexa, and was sent to a number on the family’s contact list.

7 Water-Saving Tips for Your Yard

Looking for a lush, gorgeous yard, but not happy about guzzling tons of water? The following tips can help you keep your yard stunning and your water consumption low.

Don’t drown. The greatest waste of water comes from applying too much, too often; much of the water is never absorbed. Instead of watering for one long session, water a few times for shorter periods and take 15-minute breaks in between each session. This will allow water to soak in while minimizing run-off.

Watch the clock. Water between 5 and 10 a.m., when the sun is low, winds are calm and temperatures are low. Midday watering tends to be less efficient because of evaporation and windy conditions.

Consider dripping. When it comes to watering individual trees, flower beds, potted containers or other non-grassy areas, consider applying water directly to the roots using low-volume drip irrigation.

Divide by zones. Different plants need different amounts of water. Divide yard and landscape areas into separate irrigation zones so that grass can be watered separately and more frequently than groundcovers, shrubs, and trees.

Water only things that grow. If there already is an underground sprinkler system, make sure the sprinkler heads are adjusted properly to avoid watering sidewalks and driveways. A properly adjusted sprinkler head should spray large droplets of water instead of a fine mist to minimize evaporation and wind drift.

Be rain smart. Install a shut-off device that automatically detects rain or moisture. Rain gauge and soil sensor devices are inexpensive and take advantage of the free rainwater without wasting the metered water.

Do routine inspections. Since lawns and gardens should be watered in the early morning hours, a problem may not be discovered until it is too late. A clogged head or a torn line can wreak havoc on both the landscape and the water bill.

THE BUZZ

The National Association of Realtors recently released it’s economic and housing forecast for 2015 and 2016. Lawrence Yun, Chief Economist for the NAR, forecasts existing-home sales this year to fall slightly below 2013’s 5.1 million sales to 4.9 million, and then increase to 5.3 million in 2015 and 5.4 million in 2016. Yun expects the national median existing-home price to rise 4% both next year and in 2016.

“The increase in median prices for existing-homes has leveled off, representing a healthier pace that has kept affordability in-check for buyers in many parts of the country while giving more previously stuck home owners with little or no equity the ability to sell,” says Yun.

Leslie Appleton-Young, Vice President and Chief Economist with the California Association of Realtors. reports that home sales will rise modestly in 2015 and prices are expected to flatten out, marking the slowest price gain in four years.

And forget about that rumored rise in mortgage interest rates. During the trade group’s 2015 California Housing Market Forecast, Appleton-Young projected only a slight increase to 4.5% from 4.3% this year. “The forecast is always for higher rates,” Appleton-Young said. “Our look next year is that we don’t see rates going up very much.”

Here’s what you can expect: a better year for first-time home buyers, fewer investors, more inventory, and a friendlier lending environment. It could be a great mix of variables for you to make your next real estate move.

JUST ASK

Q: What are smart real estate moves in the month of December?

A: In the midst of sipping at Holiday Teas, shopping at the mall, and dressing up for The Nutcracker, house shopping and selling is often not the first priority. However, this can be an opportune month for both buyers and sellers.

With the raging spring real estate rush around the corner, now is the time to take advantage of a slow season for house contractors. If you’re even remotely considering selling your house in 2015, now is a perfect time to unclutter, fix and improve. I can help you prioritize if you’d like – just give me a call. Think of it this way – while you make improvements, you’re also preparing your house for any holiday parties and dinners as well.

If you’re a buyer, this can be a great time to find your next home. Some of the best deals of the year in real estate happen in the slower winter months. Let me know if you’d like me to help you scour the market.

The market will heat up. Be prepared.

THE BUZZ

After the real estate market surge of last spring and the slow but steady pace of the summer, September existing-home sales bounced back to their highest pace of the year.

According to Lawrence Yun of the National Association of Realtors, “Low interest rates and price gains holding steady led to September’s healthy increase, even with investor activity remaining on par with last month’s market decline.”

Annually, November home sales dip by about 8%. December figures tend to match November, and January’s cold weather creates a low mark of activity. Much stronger activity then arises in March and April.

Rates haven’t been this low since 2013 according to Freddie Mac. With a 30-year fixed-rate averaging 3.92% and 5-year adjustable rate mortgages averaging 2.91%, now may be the time to buy.

November may be the new May. If you want to check out our local inventory now, let’s meet. Meanwhile, Happy Thanksgiving to you and your loved ones.

FYI

I always say that real estate is local. Still, let’s step back and look at the recently released Forbes’ annual list of America’s Most Expensive ZIP codes based on data from Altos Research.

Of the top 10 ZIP codes nationwide, New York dominates 6 of the 10 slots. The most expensive top 3 are New York City, Southampton, and Lower Manhattan. In California, Atherton is the only Bay Area ZIP code to make the top 10 list. Colorado and New Jersey round out the top 10.

The overall list is dominated by California and New York, which account for 38% and 18% respectively of the 500 most expensive ZIP codes. Of the top 50, California takes 26 slots and New York takes 17.

If you want to know more about our local prices, give me a call.

THE BUZZ

Real estate is cyclical and seasonal. Every year, as the school year begins and fall leaves appear, home sales invariably decline. There are not as many home buyers. This year, we are coming off of a summer that slowed in comparison to previous years. The reason for the slower pace is attributed to rising home prices, fewer investor purchases, first time home buyers, and diminishing inventory.

For the past 15 years, the average decline in sales from summer to fall has been 16.4% per the National Association of Realtors. In October, homes sales are usually steady. Then in November, home sales dip again by an average of 8%. January can see a dip in sales of 27%, then February starts the rise. By March and April, the market springs back and continues into the summer.

But real estate is also local. Although the NAR reports that sales in the South and West declined at the end of the summer, areas such as the San Francisco Bay Area and Los Angeles continued to experience multiple offers and surging sales prices, due to strong business climates and low inventory.

The economy is growing, jobs are being created and interest rates are low. Home sales are expected to rise. Now is the time to evaluate your real estate needs and plan for your future. I look forward to sharing our local stats with you.

JUST ASK

Q: Is real estate a good investment?

A: Simply put, yes it is. Not only is your home a major investment with strong potential for increased value, but also a rental property may pay big dividends. Last year, overseas buyers spent $92 Billion on home purchases according to the NAR. That is a 35% increase over the previous year.

Nearly one half of the home purchases were for investment only with no plans to live here. 25% of the buyers are from China. They are investing in homes mainly in California, Washington, and New York. The promise of good schools and universities, the strong job market in high tech areas, and the proximity to China lures buyers.

If you are considering investing for income, now may be the time to act. Single-family homes are in demand as rentals. Give me a call.

MY TOWN

Boomers and Millenials impact today’s real estate market. Realtor.com estimates that there are 75 million Baby Boomers and 87 million Millenials.

Forbes reports that there are between 8,000 and 10,000 Baby Boomers reaching age 65 every day in America. Baby Boomers feel motivated to sell their houses and move on. Many will stay local but downsize. Others will move to areas that focus on retirement living.

Boomers bought their homes in the 80’s and 90’s, and expanded into bigger homes. According to the U.S. Census, house sizes continued to increase until topping out at an average size of 2,541 square feet in 2007.

Millenials are adults in their mid 20’s to 30’s who want to buy a home but are trapped by tight mortgage lending requirements, rising rent, and high home prices. More than half of all Millenials take a second job to get ahead. 45% of all Millenials have moved back to their parents’ homes to save money.

92% of all Millenials want to buy a home in the future. Will they want the bigger homes that the Baby Boomers want to sell? What are your thoughts?

THE BUZZ

Real estate is local, and sales are dependent on supply and demand. In areas where the job market is booming, such as Silicon Valley, CA, prices continue to rise at a rapid pace and inventory remains low. Still, nationwide, the outlook is quite positive. Real estate is on a roll. Sales momentum is building due to stronger job growth and improving inventory conditions.
According to Lawrence Yun, NAR Chief Economist, “The number of houses for sale is higher than a year ago and prospective buyers have less hesitation about entering the market. More people are buying homes compared to earlier in the year. This trend should continue for the next four years. Interest rates should remain low and apartment rents are on the rise, driving first time home buyers to enter the market.”

Because affordability is likely to decline in upcoming years, now could be your time to buy. According to national predictions, it is advisable to buy the best property you can now or you may pay a lot more for the same home in a few years.

Let’s make sure you are in the right home as the market continues to move upward. September is a good time to sell your home, so if you are thinking of making a move, give me a call and we can talk.

JUST ASK

Money well spent. We all know that “it takes money to make money”. Here are a few important tips to sell your home at it’s highest potential value:

• “Homes that don’t show well, don’t close well.” You may love your home the way it is and expect that everyone else will too. Yet staging matters – big time. If you doubt that, then go to a few open houses and compare the desirability of a staged home versus a non-staged home. Staging will help you get top dollar for your home.
• “The cost of repairs is less expensive than the buyer perceives.” Buyers have the right t do inspections during escrow and often raise red flags over items that need repair. If you are a seller, fix items before you get that far.
• “Price it high, watch it die; price it low, watch it go.” Remember: the owner doesn’t set the price, the market does. Many sellers think that their home is above the price that the current market dictates. Seriously evaluate the comparables. If you think that by next spring your home will be worth more, then let’s talk. We need to understand the advantages and disadvantages of waiting to put your home on the market.