How to Pick a Color for a Playroom

A playroom should be a special place where a kid can create, pretend and have fun. The playroom's wall colors should echo this, but choosing the right color or colors can be difficult. To make this easier, try using the designer's rule of 60/30/10, with the walls providing 60 percent of the color, the flooring providing 30 percent and the accessories 10 percent. If the accessories and flooring don't provide color, the walls should. Ad Choosing Color Schemes? Use Our Tool To Find The Perfect Color Scheme For Your Home - Start Now! www.bhg.com Considering Light and Room Size When picking out paint colors, consider the size of the room, the amount of natural and artificial light it receives and the paint finish. Add life to a small room with abundant artificial light by choosing bright or dark jewel tones. Enhance a room awash in natural light with a light color. Choose a paint finish that won't show handprints and smudges. Eggshell- or satin-finish paints won't draw attention to a wall or trim's imperfections and are washable, though flat paints have stain-resistant properties. Add dimension to the space with paints in two different finishes. Paint the ceiling in a semi-gloss and the walls in a flat finish for a contrast between sheen and matte while making the ceiling feel more light-reflective. Cohesive Design The playroom's paint color should complement the surrounding rooms. Choose colors that reflect the overall color scheme of the home, but don't be afraid to go with a bold color. If painting the playroom a bold color not used on any other walls in the house, introduce that bold color in the form of accessories in nearby rooms. Don't neglect the color of the playroom's floor. When in doubt, consult the color wheel and choose complementary or contrasting colors. Red walls can work with green carpet while blue paint pops when paired with a wooden floor in an orange hue. Injection of Color A playroom should be fun and a place where children are free to be themselves. Consider the colors of the playroom's furnishings, accessories and architectural features. If the furniture is vibrant, such as bright pink or bold blue, choose a light color that won't compete for attention. The same applies for wall accessories such as framed art or wall appliques. If the furnishings are in natural, wooden tones, choose a bold paint color for the walls. Add visual interest by painting a built-in bookcase or accent wall in a darker shade than the room's primary color. If painting the room a gender-neutral light green, create visual interest by painting the accent piece in a shade of green at least three shades deeper. Making a Decision Don't go to the paint department unprepared. Try to eliminate some color choices prior to shopping. Of the seven colors found in the paint spectrum, the same colors found in the rainbow, decide on four or five you are willing to consider. Once at the store, start looking at the darkest colors found on the bottom of the paint strip. If the darkest color is appealing, the same is true for the colors on the middle and top of the strip. Another way to choose paint color is to bring along a favorite playroom accessory. Select three paint strips with the color of the accessory and you have roughly 20 choices to select from. Hang your paint strips on the playroom walls and have family members look at the strips in natural and artificial light. Allow each family member three choices for paint and choose the color with the most votes.

Interest Rate Rise Shelved until December

Interest rates will rise, but not until December at the earliest, the Federal Reserve announced Wednesday, confirming a long-held view that the Fed would not raise rates ahead of the presidential election. The benchmark interest rate determines the movement of mortgage rates, which currently linger around 3.5 percent. “The Committee judges that the case for an increase in the federal funds rate has continued to strengthen but decided, for the time being, to wait for some further evidence of continued progress toward its objectives,” according to a statement released by the Fed. The announcement comes following a divided vote in September that resulted in the decision to hold steady on rates. “Our decision does not reflect a lack of confidence in the economy,” Fed Chair Janet Yellen said at the time. “We’re generally pleased with how the U.S. economy is doing.” The economy since then has shown slight improvement, growing at an annual rate of 2.9 percent in the third quarter. On the housing front, single-family starts came in ahead of estimates in September, and homeowner wealth in equity has continued to accumulate. The Fed last raised the benchmark rate, up 0.25 percent, in December 2015.

Happy New Year! 21 Rules for a Good Life

I know this time of year is hectic for everyone. But as we look eagerly towards 2011 and what we want to accomplish in the New Year, I thought these simple, but profound "rules" for a good life might be inspirational for you.

This piece is entitled "21 Rules for a Good Life" by H. Jackson Brown, Jr. If you adopt these Rules and follow them deliberately and honestly each day, you will see some amazing results in your life, your work and your attitude.

1. Marry the right person. This one decision will determine 90% of your happiness or misery.
2. Work at something you enjoy and that's worthy of your time and talent.
3. Give people more than they expect and do it cheerfully.
4. Become the most positive and enthusiastic person you know.
5. Be forgiving of yourself and others.
6. Be generous.
7. Have a grateful heart.
8. Persistence, persistence, persistence
9. Discipline yourself to save money on even the most modest salary.
10. Treat everyone you meet like you want to be treated.
11. Commit yourself to constant improvement.
12. Commit yourself to quality.
13. Understand that happiness is not based on possessions, power or prestige, but on relationship with people you love and respect.
14. Be loyal.
15. Be honest.
16. Be a self-starter.
17. Be decisive even if it means you'll sometimes be wrong.
18. Stop blaming others. Take responsibility for every area of your life.
19. Be bold and courageous. When you look back on your life, you'll regret the things you didn't do more than the ones you did.
20. Take good care of those you love.
21. Don't do anything that wouldn't make your Mom proud.

Christmas Lights on Eucalyptus!

It's that time of year again! Time for Eucalyptus Ave. between Orange and Tamarack in San Carlos to shine like the stars for Christmas. If you haven't experienced driving down this street at night during the holidays - don't miss out! It is truly breathtaking and a lot of fun.

Check out some of the homes at:
http://www.lightsofthevalley.com/Properties/San_Carlos.asp

What’s Next in Real Estate? Markets, Trends to Watch in 2017

Real estate in 2017 is to be shaped by cities that meet not only the economic standards of a sustainable market, but also the demand for distinct neighborhoods within those markets. This is according to the Urban Land Institute’s (ULI) and PwC’s latest report, “Emerging Trends in Real Estate® 2017,” which analyzes trends-to-come in both the U.S and Canada housing markets. Ten “gateway” markets, as defined in the report—those with both a diverse economy and “niche” neighborhoods—will stand above the rest: Austin, Texas Dallas/Fort Worth, Texas Portland, Ore. Seattle, Wash. Los Angeles, Calif. Nashville, Tenn. Raleigh-Durham, N.C. Orange County, Calif. Charlotte, N.C. San Francisco, Calif. Dominating the report’s list are markets in California, North Carolina and Texas, which have become ideal investment areas in both the commercial and residential sectors.

Make Moving With Pets Easier

Americans are big pet owners. About 65 percent of all U.S. households — 79.7 million households — own pets, according to the American Pet Product Manufacturers Association’s 2015–2016 survey. In 2015, Americans spent more than $60.6 billion on their pets. Read more: The Power of Pets in Real Estate About 10.7 million people move with their pets every year. To make those moves easier, some real estate professionals are stepping in to help their clients make Fido’s move less stressful too, by offering up a list of nearby dog parks or pet resources, such as groomers, pet sitters, and vets. Florida real estate pro Rhona Sutter created the Pet Friendly Resource Directory, which offers a list of pet-friendly services to pet owners moving to a new area of town or to a new city. Along with a list of vets and pet sitters, the directory also includes handyman, cleaning services, and interior decorators that present themselves as being pet-friendly. It includes a list of real estate professionals as well. The directory includes 45 categories, such as pet-friendly hotels, pet relocation services, assisted living for seniors, pet supplies, and more. “Moving is traumatic enough, whether your move is across the street, across the city, or across the country,” says Sutter, owner of the Pet Realty Network. “Our goal is to include all different types of services in all areas for when a pet owner is searching for businesses and services that understand their pet-friendly requirements.” Ease pets’ move with this customer handout: How to Move with Pets

Think All Millennials Live in Their Parent’s Basement? Think Again!

According to the Census Bureau, millennials have overtaken baby boomers as the largest generation in U.S. History. Millennials, or America's youth born between 1982-2000, now represent more than one quarter of the nation’s population, totaling 83.1 million. There has been a lot of talk about how, as a generation, millennials have ‘failed to launch’ into adulthood and have delayed moving out of their family’s home. Some experts have even questioned whether or not millennials want to move out. The great news is that not only do millennials want to move out… they are moving out! The National Association of Realtors (NAR) recently released their 2016 Profile of Home Buyers and Sellers in which they revealed that 61% of all first-time homebuyers were millennials in 2015! The median age of all first-time buyers in 2015 was 31 years old. Here is chart showing the breakdown by age: Think All Millennials Live in Their Parent's Basement? Think Again! | Keeping Current Matters Many social factors have contributed to millennials waiting to buy their first home. The latest Census results show that the median age of Americans at the time of their first marriage has increased significantly over the last 60 years, from 23 for men & 20 for women in 1955, to 29 & 27, respectively, in 2015. Those who went to college and took out student loans are finally paying them off, as the terms on traditional student loans are 10 years. This means that a large portion of the generation is making its last loan payments and is working toward saving for a first home. As a whole, the first-time homebuyer share increased to 35% of all buyers, up from 32% in 2014. Not all millennials are first-time buyers, they also made up 12% of all repeat buyers! Bottom Line Millennials will continue to drive the housing market next year, as well as in the years to come. As more and more realize that owning a home is within their grasp, they will flock to own their piece of the American Dream. Are you ready to buy your first or even second home?

Many 'Smart' Locks Open to Easy Hacks

Are smart locks an open invitation to homes? At a recent computer security conference, some researchers said yes. Two presentations at the recent Def Con event, where hackers and security professionals gather to trade information and show off security failures, highlighted the ease with which smart locks can be hacked. Anthony Rose and Ben Ramsey of Mercurlite Security found that they could open 12 of 16 models of smart locks with less than $200 worth of hardware. While smart locks made by August resisted their efforts, another researcher in the other presentation was able to defeat the August lock, although the process required some technical knowledge. Locks made by Noke and Masterlock also resisted Mercurlite's efforts, as did the Kwikset Kevo — until they simply unscrewed it from the door. The researchers contacted the 12 companies that make the easily hacked locks and received only one reply, which had no commitment to fix the bug, reports said. Locks from three companies store their passwords in plain text, readable by anyone with a device that can connect via Bluetooth. Other locks opened when the researchers recorded network data as an authorized user opened the locks and replayed it later. One lock failed and unlocked automatically after it was sent data it didn't recognize. Source: "Surprise: a lot of smart locks have terrible security," The Verge (Aug. 9, 2016)

Mortgage Rates Rise on Hints of Inflation

Mortgage rates increased 7 basis points to their highest level since late June, the largest one-week gain in more than six months, according to Freddie Mac. The 30-year fixed-rate mortgage averaged 3.54% for the week ending Nov. 3, up from last week when it averaged 3.47%. A year ago at this time, the 30-year fixed-rate mortgage averaged 3.87%. "A jump last week in the PCE (personal consumption expenditures) — the price index tracked most closely by the Fed — raised the prospect that inflation might not be completely dead after all. Investors reacted by driving the yield on the 10-year Treasury to its highest point since June," said Sean Becketti, chief economist at Freddie Mac. The 15-year fixed-rate mortgage averaged 2.84%, up from last week when it averaged 2.78%. A year ago at this time, the 15-year averaged 3.09%. The five-year Treasury-indexed hybrid adjustable-rate mortgage averaged 2.87%, up from last week when it averaged 2.84%, while a year ago it averaged 2.96%.

What to Do If You Can't Make Your Mortgage Payment

What to Do If You Can't Make Your Mortgage Payment By Avvo on 8 Nov 2016 Know-How Whatever you do, don't skip a payment and think no one will notice. By Elizabeth Weiss Living paycheck to paycheck is not uncommon for many homeowners. And sometimes, when you find yourself in a bind and you’re struggling to make the next mortgage payment, you may be tempted to try to skip a payment, thinking you can repay it later once you get back on track. But a passive approach to a financial issue — particularly one involving something as impactful as your mortgage — is not advisable. Being proactive and straightforward with your creditors is far more prudent in a personal financial crisis. The power of honesty “The first and most important thing I always tell clients concerning delinquent mortgage payments is to contact their lender/servicer, in writing, to advise them of the hardship and inability to make payments,” says Cydney Bulger, attorney with The Bulger Firm in Jacksonville, Florida. Openly admitting your inability to pay your mortgage is probably one of the last things you want to do, but being forthright about your situation will serve you far better in the long run. Don’t wait too long The longer you wait to make your financial struggle known and the harder you attempt to work the system, the less favorably your personal financial crisis is likely to work out. “The farther the issues go, the less affordable a modified loan can be,” warns Bryant H. Dunivan, Jr., a real estate and consumer protection attorney in Florida. Don’t assume that you have no options — you won’t know if your bank or servicer will work with you unless you ask. Educate yourself For homeowners who have already missed a mortgage payment, Dunivan recommends making the most of rules restricting dual tracking, by seeking loan assistance as soon as possible. Dual tracking is when a mortgage servicer forecloses on a property while simultaneously considering a loan modification. Created by the Consumer Financial Protection Bureau (CFPB) in 2013, the rule restricting dual tracking prohibits the practice in the 120-day period after a default. Dunivan explains that this rule has “… allowed for a lot more protecting for homeowners going into, or already in, foreclosure.” Violations of this rule, “… may subject the servicer to damages, and may give a borrower leverage in a foreclosure lawsuit,” he adds. Pursue all possible options “There may be some state programs that make mortgage payments for people,” says Dunivan. The Hardest Hit Fund (HHF) was developed in 2010 for homeowners who struggle to make their monthly mortgage payments in an effort to prevent foreclosure and stabilize neighborhoods. Not all states participate in the HHF, but those that do focus on helping two groups of people stay in their homes: unemployed homeowners who are looking for new work, and homeowners who owe more on their mortgage than their home is worth. But don’t expect miracles “Calling your bank gets the ball rolling on any potential loan modification option,” says Dunivan. But banks may or may not offer leniency, even if you’re honest about your situation. And if your situation is more serious and your ability to pay back the loan is truly compromised, “it’s a typical handoff system where once you meet certain criteria, you are put into foreclosure and then a series of automated messages are sent out by mail.” Be proactive Failure to act can lead lenders to believe that you don’t care about your financial obligations. “Now, more than ever [post-2007 housing crash], lenders are willing to work with delinquent homeowners, but if the homeowners fail to advise them of the problem, [lenders] don’t know that they need help, and assume the worst,” says Bulger. If you wait too long to ask for help, you could eventually discover that it’s too late. If foreclosure is inevitable, consider reaching out to an attorney who specializes in helping people through — or, if you have a good case, fighting — the foreclosure process. A version of this story was originally published on AvvoStories.

Visiting Grandma? Make Your Stay Easy for Her

Visiting Grandma? Make Your Stay Easy for Her By Arar Han on 10 Nov 2016 Know-How Grammy loves to host everyone, but she may not love the work and expenses that go with it. Here's how to pitch in. The holiday season is right around the corner, and Grandma can’t wait for everyone to visit. Nothing brings her more joy than being surrounded by her family for the holidays. Although Grandma says that she doesn’t mind celebrating the holidays at her home, preparing for family to stay may not be easy on her. Here are four tips that’ll help Grandma stay stress-free while you are in town. Have an honest talk Do you know what a successful family weekend looks like to Grandma? What will make her happy during your visit? Finding out may take some prompting. Grandma will insist that she’s fine, and doesn’t need anything other than your company. So take a proactive approach: Ask her what she plans on doing for the upcoming family stay. Once you find out what she envisions, take the initiative to make that a reality. Create an itinerary for your family to reference. This will help convey Grandma’s hopes and expectations to her guests. The itinerary will let your family know what to expect each day of the visit. Then, each guest will know where they can pitch in, or when to go off on their own to give Grandma a breather. No matter how your family goes about this, communication is paramount to prevent misunderstandings and hurt feelings. Arrive early and bring your own linens Whether you’ve got a big or small family, cleaning is a time-consuming task. Grandma probably plans to do a lot of cleaning before you arrive. Guest rooms need to be aired out, and the beds need new sheets. Fresh towels need to be put out. But she’ll never admit that the work is too much for one person to handle. Offer to come a day early and prepare the rooms for everyone’s stay. The more help Grandma can get, the better. Bring extra sheets, blankets, and towels. This way, the laundry won’t pile up for Grandma when everyone leaves. Divide meal duties Preparing dinner isn’t just laborious, it’s expensive. Don’t let Grandma do it alone. Ask her for a list of groceries that she’ll need to feed the family. Then, ask your relatives and family members to chip in toward the cost of the groceries. Flying across the country? Ask Grandma if you can go to the store with her once you land. You can offer to pay and help carry items from the car. Grandma will be relieved knowing she won’t have to surrender an arm and a leg to foot the bill. Once the groceries are in the house, give Grandma a hand in the kitchen. Cooking alone for a holiday meal is an exhausting task. When everyone’s able to pitch in, it’s much easier on Grandma. And cooking is a good way to bond. Helping Grandma with the cooking won’t just make her happy, but will benefit everyone since the food will be ready faster. Tidy up at the end of your stay When it’s time for visitors to go home, Grandma is left with a mess to clean. Fortunately, there are several ways you can make the cleaning process easier for her. Start tidying up after yourself the day before you plan to leave. Toss out any trash, wipe down surfaces, and begin gathering your things together. Grandma will have less to clean if you don’t leave a huge mess when you’re rushing out the door on the last day. Ask the rest of your family to set aside some time to help clean up before departure. Cleaning will become a 30-minute activity instead of a three-day event for Grandma. Does Grandma insist that no one lift a finger? Get creative and send her off to lunch or the movies with some friends. While she’s gone, donate some good old-fashioned elbow grease. Give everyone in your family a job to have the house clean by the time Grandma comes home. Leave Grandma smiling Holidays and family go hand in hand, like milk and cookies. Nothing makes the holidays better than being able to celebrate together. Stay in the spirit of the holiday season — make sure your visit didn’t leave a bitter taste in Grandma’s mouth. If she has to spend hours cleaning before and after your visit, on top of footing the food bill, she may not want to host next year’s dinner. Leave Grandma with a smile on her face by being conscious of yourself and your mess, and pitching in whenever you can. Holidays are meant to be spent with family — not cleaning up after them.

3 Things to Do When Your Neighbors List Their Home for Sale

By Brendon DeSimone on 31 Oct 2016 Know-How The sign just went up next door. How does your neighbor's impending sale affect you? Most people think their real estate concerns end once they’ve closed on and moved into their new homes. But given the constant access to information and the changing nature of society today, smart homeowners know that their real estate awareness should continue after the closing. When a neighbor’s house goes on the market, there can be some important implications for you. Here are some tips for staying real estate aware. Document important disclosure items For the most part, good fences make good neighbors. But sometimes the folks on the other side of the fence don’t cooperate, and unresolved neighbor conflicts tend to arise when one of the homes goes on the market. Have a property line dispute or an issue with a broken fence and want to make sure that the new buyer knows about it? While sellers in most states have a duty to disclose issues to potential buyers, not all areas require this. Do your new neighbor-to-be a favor and alert the seller’s agent to anything the buyer needs to know about your neighbor’s property. See things differently Open houses allow buyers to spend some time exploring a home, but these events also present you with a chance to see your home from your neighbor’s perspective. Once, at a busy open house in San Francisco’s Noe Valley neighborhood, an open house visitor made a somewhat obvious beeline for the back of the house. He immediately got on the phone, and was clearly communicating with someone about where he was standing, and giving orders to move left and right. It turned out this visitor lived in the home behind, and was checking to see the neighbor’s view into his home. The open house is your chance to check your home’s paint job from the neighbor’s yard or simply to see your home from a different perspective. Know and learn the market in real time Typical sellers claim and save their home online, but also keep searches going after the fact. Why? To keep tabs on the market, see the comps and have a real-time sense of what’s happening nearby. Just like when you were a buyer, knowing about the area and types of homes in the market is a good move for any homeowner. Take a neighboring home for sale as an opportunity to see what the market bears. You can also learn about the latest trends in home design. Speaking to a real estate agent can help inform you of changes to property taxes, or how assessments are changing in your town. A smart real estate agent, working their listing, will be an incredible resource to would-be clients down the road. Leverage their experience when your neighbor sells. Take note when your neighbor goes to sell their home. It’s not just a time to nose around, but to document, inspect or learn from the home sale. Some homes get listed once in a lifetime. Take advantage of the opportunity.

First-Time, Single Women Homebuyers Resurface in Real Estate

First-Time, Single Women Homebuyers Resurface in Real Estate First-time and single women homebuyers have resurfaced in the real estate market, contributing to a significant share of transactions in a year marked by full-steam-ahead sales, according to the National Association of REALTORS® (NAR) 2016 Profile of Home Buyers and Sellers survey. First-time homebuyer sales rose to a share of 35 percent, the survey found; single women homebuyer sales rose to 17 percent. “Young adults are settling down and deciding to buy a home after what was likely a turbulent beginning to their adult life and career following the Great Recession,” says Lawrence Yun, NAR chief economist. “Demand increased over the past year because of a robust job market for those with a college degree and renter fatigue at a time when homeowners continue to see their equity rise. These factors were why more first-time buyers (67 percent) said a desire to own a home of their own was the primary reason for their purchase (64 percent in 2015; 53 percent in 2014). “Despite having a much lower income ($55,300) than single male buyers ($69,600), female buyers made up over double the amount of men (7 percent),” Yun adds. “Single women for years have indicated a strong desire to own a home of their own, as well as an inclination to live closer to friends and family. With job growth holding steady and credit conditions becoming somewhat less stringent than in past years, the willingness and opportunity to buy is becoming more feasible for many single women.” Though the growth among new homeowners is encouraging, their overall share of the market is still subpar, according to Yun. The lack of affordable new and existing inventory, the outpacing of home prices to wages, and the difficulty in saving for a down payment is why the homeownership rate for 18- to 35-year-olds is currently hovering near its historical low. “First-timers’ ability to enter the market more convincingly over the next year greatly depends on supply improvements at the lower end of the market and if wages can finally awaken from their sluggish pace of growth,” says Yun. Notably, 90 percent of respondents to NAR’s survey worked with a real estate agent to buy or sell a home, compared to 8 percent of for-sale-by-owner listings (FSBOs)—an all-time low. Single Women Buyers on the Mend, Age of First-Time Buyers on the Rise As in years past, married couples once again made up the largest share of buyers (66 percent) and had the highest income ($99,200), according to the survey; however, single women made up more of the buyer pie than in recent years. After falling to 15 percent of buyers a year ago, single women represented 17 percent of total purchases (highest since 2011 at 18 percent). The median age of first-time buyers in this year’s survey was 32, matching the all-time high last set back in 2006, and up from 31 the past five years. The typical first-time buyer had a higher household income ($72,000) than last year ($69,400) and purchased a slightly larger home (1,650 square feet; 1,620 square feet in 2015) that was more expensive ($182,500; $170,000 in 2015). The typical repeat buyer was 52 years old (53 in 2015), earned $98,000 ($98,700 in 2015) and purchased a 2,000-square-foot home (2,020 square feet in 2015) costing $250,000 ($246,400 in 2015). Buyers Carrying More Student Debt; Difficulty Obtaining Mortgage on the Decline Down payment sizes have roughly stayed the same in recent years—in this year’s survey, it was 6 percent for first-time buyers and 14 percent for repeat buyers. Fifty-nine percent of buyers financed their purchase with a conventional mortgage, and 33 percent of first-time buyers took out a low down payment Federal Housing Administration (FHA)-backed mortgage. “Fewer first-time buyers (40 percent) compared to a year ago (45 percent) indicated that the mortgage application and approval process was somewhat or much more difficult than they expected,” says NAR President Tom Salomone, broker/owner of Real Estate II Inc. in Coral Springs, Fla. “Those with healthy credit scores and manageable or little debt should talk to a lender to see if they qualify. They’ll likely discover that obtaining a mortgage isn’t quite the confusing and tiring inquisition it was in the years immediately after the downturn.” Personal savings ranked first for both first-time buyers and repeat buyers as the primary source of their down payment. The second most popular source for first-timers was a gift from a friend or relative (24 percent; 27 percent in 2015), and for repeat buyers it was the sales proceeds from their previous residence. Respondents reported that debt (all types) delayed saving for a down payment for a median of three years. For first-time buyers, 40 percent indicated they’re carrying student debt, with a typical amount of $26,000 ($25,000 in 2015). Furthermore, of the 26 percent of first-time buyers who said saving for a down payment was the most difficult task in the buying process, 55 percent said student debt delayed saving. “As NAR survey findings discovered earlier this year, even those financially able to make on-time payments on their student loans are struggling to save for a down payment, and many expect to be delayed from buying a home by over five years,” says Yun. “Repaying student debt could slow the path to homeownership even more for those living in markets with steep rents and home prices.” Buyers Rely on Internet and Agents; Single-Family Homes Top Choice This year’s survey proved once again that the two most popular resources for homebuyers remain the internet (95 percent) and real estate agents (92 percent). Despite a record-high 51 percent of buyers saying they found the home they purchased online, most buyers who used the internet still ended up purchasing their home through an agent (90 percent). Mobile devices and tablets are increasingly becoming a resource for buyers. Their usage lifted to 72 percent in this year’s survey, which is up from 61 percent a year ago. Furthermore, 58 percent of buyers indicated they found the home they purchased on a mobile app. “Regardless of the plethora of online resources readily available at the click of a mouse or the swipe of a thumb, consumers serious about buying a home continue to seek the expertise and market insights that only a Realtor® can provide,” says Salomone. “Given the numerous competitive markets with minimal supply, it’s no surprise that both first-time and repeat buyers sought an agent for assistance finding the right home and negotiating the terms of the sale.” The most common housing type continues to be a detached single-family home (83 percent for second straight year) and one in a suburban area (54 percent; 52 percent in 2015). Meanwhile, purchases of townhouses or row houses remained at 7 percent for the third straight year; only 4 percent of buyers purchased a condo. Overall, the typical home bought was built in 1991 and had three bedrooms and two bathrooms. The share of buyers who purchased new home was at an all-time survey low of 14 percent. Seller Use of Agent Remains High; Desire for Bigger House Primary Reason for Listing For the second straight year, 89 percent of sellers sold their home with an agent. This in turn—also for the second year in a row—kept for-sale-by-owner sales to their lowest share (8 percent) since the survey’s 1981 inception and below 10 percent since 2012. “Although the imbalance of supply in relation to demand in recent years continues to put many sellers in the driver’s seat, they’re still looking for a Realtor® now more than ever to price their home competitively, market their home to the widest number of eyes possible and ultimately help close the deal within a given timeframe,” says Salomone. The typical seller over the past year was 54 years old (unchanged since 2014), had a household income of $100,700 ($104,100 in 2015), and was in the home for 10 years before selling—a year longer than 2015 and matching the all-time high in 2014. Fewer sellers indicated they wanted to sell earlier but were stalled because their home had been worth less than their mortgage (12 percent versus 14 percent a year ago); the figure was 17 percent in 2014. Sellers realized a median equity gain of $43,100 ($40,000 in 2015)—a 24 percent increase (23 percent last year) over the original purchase price. Homes sold after 21 years of ownership had the largest equity gain (124 percent or $127,600); underlining the volatility during the downturn, equity gains fell to 3 percent for owners who bought between eight and 10 years ago. With tight inventory conditions gripping most markets once again over the past year, sellers were considerably more successful finding a buyer in a shorter amount of time, with homes typically on the market for only a month. A tad more sellers traded up (44 percent) compared to last year (42 percent) and slightly more, at 32 percent, traded down (31 percent in 2015). Sellers moved a median distance of 20 miles—72 percent stayed in the same state—and the most popular reason given for selling their home was it being too small (18 percent). Feedback from sellers underscored once again that referrals and repeat business remain a large source of new opportunities for real estate agents. Nearly two-thirds of responding sellers either found their real estate agent through a referral by a friend, neighbor or relative, or used their agent from a previous transaction. Additionally, 85 percent of sellers indicated that they would definitely or probably use their agent again or recommend him or her to others. For more information, please visit www.realtor.org.

Millennials: Ready to Buy a Second Home and Rent Out Your First?

By Sarah Pike on 31 Oct 2016 Know-How You're ready to move on, but that doesn't mean you have to let go of your first property. There comes a time in many homeowners’ lives when it’s just time to move on to the next home. Maybe it’s because of a job change, the arrival of a kid (or more kids), a marriage or divorce, or you just don’t like where you live anymore. Many millennial homeowners — who represent half of all home buyers these days, according to the Zillow Group Consumer Housing Trends Report — are ready for that next home purchase. Maybe that describes you. So, now you have a decision to make: Do you sell your first home, or hang on to it and rent it out? Kate Currett, a millennial homeowner, rented out her first home in Utah for three years while living in her second home in Ohio. Her goal, like most who rent out a property, was to earn additional income. Sounds simple enough, but there are many factors that you should weigh when making this big decision. Financial perks and considerations In addition to having the potential to make some money on renting a house, buying a second home and renting the first is one way to build a real estate investment portfolio. Millennials, in particular, are typically in a good position to do this: You can convert your primary residence into a rental and “leave your owner-occupied mortgage intact, which was likely (and hopefully) obtained with a down payment and the most favorable mortgage interest rate, as low as 3.5 percent,” says Kelly Hannah, a certified residential specialist at Eightline Real Estate. Purchasing a non-owner-occupied property (that is, a house that you’re purchasing specifically to rent out) generally requires a 20- to 25-percent down payment and has an interest rate .375 percent to .75 percent higher than you’d get for an owner-occupied property. Bottom line, it will likely cost less to convert the house you live in now into a rental and buy a second home to use as your primary residence than to purchase a second home to use as a rental property. The financial hurdle you will have to leap is qualifying for a second mortgage. “In the beginning, [it was difficult] making sure we could qualify for a dual loan,” Currett admits. But if you have a lease in place on your first home prior to closing on your second home, “your lender may allow a portion of those future rents to count as income in their calculation of your debt-to-income ratios,” Hannah says. However, lenders “prefer to see that you have property management experience in order to count those future rents as income,” he warns. Tax advantages As for tax advantages to renting out one of your properties, Leigh Anne Bernal, a property consultant with cityhomeCOLLECTIVE, advises making it a priority to speak with an accountant, as tax rules can be complicated when renting out a property. Generally, “the most substantial tax advantages to converting your current home into a rental come in the form of depreciating that property, the deduction of maintenance expenses, and the deduction of your mortgage interest,” Hannah explains. The ideal rental property Before you make any moves toward converting your home into a rental, you need to assess whether or not your home is rentable. Generally speaking, a “one- to three-bedroom home is going to be easier [to rent] than a larger home,” Bernal notes. She suggests researching who the renters are in your city and the types of properties they rent. “The broader the appeal, the more luck you will have,” Bernal says. Hannah adds that the best way to determine whether your home is an ideal rental property is to meet with a professional and “create a comprehensive strategy tailored to your individual situation and specific market.” How to assess rental fees Needless to say, rental rates vary greatly, “especially with respect to single-family homes and condominiums,” Hannah says, as rental rates for privately owned homes are not easily tracked. Currett agrees, and notes that a tough part of owning a home while renting out another was balancing having a competitive rental rate and still making a profit. However, a reliable way to determine the rent for your first home is to search the rental market for homes similar to yours. “This will allow you to see what rental rates are in real time and space, and price your rental competitively,” Hannah notes. “Do your homework,” Bernal says. “Take all of the costs into consideration, including property taxes and insurance.” Perhaps the most difficult aspect of renting a property is being a landlord for the first time. Costs can come at you from all sides, from repairs to late or unpaid rent from tenants to property damage. Go in planning on incurring expenses beyond the mortgage payment. “Some of this can be handled with a property management company, but that comes at a price, so make sure you have that included in your math,” Bernal advises. Words of wisdom When it comes to renting out your extra home, “Do it,” is Hannah’s advice. “Buy and hold is almost always a good idea.” But Bernal recommends really analyzing your situation before making a leap: “If you’re in a seller’s market, that can make it tougher to get into your new home without cashing out the equity in your first home. You may be able to refinance your first home to get some of that equity out.” Get more Landlord Resources or check out our Guide to Rental Property Management.

What’s Next in Real Estate? Markets, Trends to Watch in 2017

By Suzanne De Vita What’s Next in Real Estate? Markets, Trends to Watch in 2017 Real estate in 2017 is to be shaped by cities that meet not only the economic standards of a sustainable market, but also the demand for distinct neighborhoods within those markets. This is according to the Urban Land Institute’s (ULI) and PwC’s latest report, “Emerging Trends in Real Estate® 2017,” which analyzes trends-to-come in both the U.S and Canada housing markets. Ten “gateway” markets, as defined in the report—those with both a diverse economy and “niche” neighborhoods—will stand above the rest: Austin, Texas Dallas/Fort Worth, Texas Portland, Ore. Seattle, Wash. Los Angeles, Calif. Nashville, Tenn. Raleigh-Durham, N.C. Orange County, Calif. Charlotte, N.C. San Francisco, Calif. Dominating the report’s list are markets in California, North Carolina and Texas, which have become ideal investment areas in both the commercial and residential sectors. “Viewed as a fluke when it hit the study’s top 10 list five years ago, Austin’s rise to the top of the list signals the durability of the city’s long-term appeal to investors,” says Mitchell Roschelle, real estate research leader and PwC partner. “Austin, along with many of this year’s top 10 cities, boasts attractive, niche neighborhoods and a vibrant, diverse economy.” Five up-and-coming markets, in addition to the top 10, are also on the rise, according to the report: Columbus, Ohio Richmond, Va. Pittsburgh, Pa. Charleston, S.C. Salt Lake City, Utah Market-based trends aside, 2017 will also be marked by construction labor shortages tightening affordable housing inventory—a trend that can be reversed if all real estate-related constituents contribute to a solution, the report’s authors, Alan Billingsley, Hugh Kelly, Anita Kramer and Andrew Warren, state. “This is a real opportunity for the real estate industry to lead a way toward solutions. Real estate in all its guises—construction, property management, brokerage, and even finance—offer ample opportunities to create entry-level jobs that are not ‘dead-end jobs,’ but the first step on a career path.” Municipalities that have begun to address affordable housing shortages have set the example to follow in 2017, as well, according to the report. Many have resorted to a conventional standby: inclusionary zoning. “The most widely used approach by far…is an old idea that has roared back to life: inclusionary zoning,” the report’s authors state. “Through such zoning, cities require or encourage developers to create below-market-rate rental apartments or for-sale homes in connection with the local approval of a proposed market-rate development project.” “Optionality,” in addition—the ability for both landlords and tenants to determine the use of a space—will be a trend next year, according to the report. “Both on the investor side and the user side of the market, optionality—not just one use, not just one user, not just one user profile—may be gaining favor as a way to navigate the cross-currents of volatile markets,” the report’s authors state. “Optionality from a user standpoint allows for the adjustment of space needs to vary in terms of size, location, and use on an as-needed basis.” Advancements in real estate-related technology will also occur, furthering the accuracy, speed and transparency involved in real estate transactions—“an ‘auto-correcting’ real estate cycle.” View the full report here. For more information, please visit ULI.org.

Make Moving With Pets Easier

Americans are big pet owners. About 65 percent of all U.S. households — 79.7 million households — own pets, according to the American Pet Product Manufacturers Association’s 2015–2016 survey. In 2015, Americans spent more than $60.6 billion on their pets. Read more: The Power of Pets in Real Estate About 10.7 million people move with their pets every year. To make those moves easier, some real estate professionals are stepping in to help their clients make Fido’s move less stressful too, by offering up a list of nearby dog parks or pet resources, such as groomers, pet sitters, and vets. Florida real estate pro Rhona Sutter created the Pet Friendly Resource Directory, which offers a list of pet-friendly services to pet owners moving to a new area of town or to a new city. Along with a list of vets and pet sitters, the directory also includes handyman, cleaning services, and interior decorators that present themselves as being pet-friendly. It includes a list of real estate professionals as well. The directory includes 45 categories, such as pet-friendly hotels, pet relocation services, assisted living for seniors, pet supplies, and more. “Moving is traumatic enough, whether your move is across the street, across the city, or across the country,” says Sutter, owner of the Pet Realty Network. “Our goal is to include all different types of services in all areas for when a pet owner is searching for businesses and services that understand their pet-friendly requirements.” Ease pets’ move with this customer handout: How to Move with Pets

Think All Millennials Live in Their Parent’s Basement? Think Again!

Think All Millennials Live in Their Parent's Basement? Think Again! | Keeping Current Matters According to the Census Bureau, millennials have overtaken baby boomers as the largest generation in U.S. History. Millennials, or America's youth born between 1982-2000, now represent more than one quarter of the nation’s population, totaling 83.1 million. There has been a lot of talk about how, as a generation, millennials have ‘failed to launch’ into adulthood and have delayed moving out of their family’s home. Some experts have even questioned whether or not millennials want to move out. The great news is that not only do millennials want to move out… they are moving out! The National Association of Realtors (NAR) recently released their 2016 Profile of Home Buyers and Sellers in which they revealed that 61% of all first-time homebuyers were millennials in 2015! The median age of all first-time buyers in 2015 was 31 years old. Here is chart showing the breakdown by age: Think All Millennials Live in Their Parent's Basement? Think Again! | Keeping Current Matters Many social factors have contributed to millennials waiting to buy their first home. The latest Census results show that the median age of Americans at the time of their first marriage has increased significantly over the last 60 years, from 23 for men & 20 for women in 1955, to 29 & 27, respectively, in 2015. Those who went to college and took out student loans are finally paying them off, as the terms on traditional student loans are 10 years. This means that a large portion of the generation is making its last loan payments and is working toward saving for a first home. As a whole, the first-time homebuyer share increased to 35% of all buyers, up from 32% in 2014. Not all millennials are first-time buyers, they also made up 12% of all repeat buyers! Bottom Line Millennials will continue to drive the housing market next year, as well as in the years to come. As more and more realize that owning a home is within their grasp, they will flock to own their piece of the American Dream. Are you ready to buy your first or even second home?

Mortgage Rates Rise on Hints of Inflation

By Glenn McCullom November 3, 2016 Mortgage rates increased 7 basis points to their highest level since late June, the largest one-week gain in more than six months, according to Freddie Mac. The 30-year fixed-rate mortgage averaged 3.54% for the week ending Nov. 3, up from last week when it averaged 3.47%. A year ago at this time, the 30-year fixed-rate mortgage averaged 3.87%. "A jump last week in the PCE (personal consumption expenditures) — the price index tracked most closely by the Fed — raised the prospect that inflation might not be completely dead after all. Investors reacted by driving the yield on the 10-year Treasury to its highest point since June," said Sean Becketti, chief economist at Freddie Mac. The 15-year fixed-rate mortgage averaged 2.84%, up from last week when it averaged 2.78%. A year ago at this time, the 15-year averaged 3.09%. The five-year Treasury-indexed hybrid adjustable-rate mortgage averaged 2.87%, up from last week when it averaged 2.84%, while a year ago it averaged 2.96%.

Report: 60K more housing units needed on Peninsula

November 04, 2016, 05:00 AM By Keith Burbank Bay City The San Francisco Bay Area’s Peninsula region is short tens of thousands of housing units because of strong job and population growth over the last nine years, according to an economic report released Thursday. The report by the Joint Venture Silicon Valley’s Institute for Regional Studies said the region including San Francisco, Santa Clara and San Mateo counties is short 60,000 housing units, a problem exacerbated in the last year by the addition of 65,600 jobs and 39,800 residents. The unemployment rate in the region has also declined, according to the report. In September in San Mateo County, the unemployment rate was 3.1 percent, well below the state and nationwide averages of 5.5 and 5 percent. The rates in both San Francisco and Santa Clara counties are also below the state and nationwide averages. “With no end to job growth soon, the region needs to address housing and transportation challenges as soon as possible,” said Stephen Levy, director of the institute’s Center for Continuing Study of the California Economy. The shortage of housing relative to population growth is also causing an increase in housing prices and gentrification, which is driving out the middle class, Levy said. The growth is also causing long commutes, which is a problem for businesses and people. It’s hard for businesses to attract workers because commutes are so long and workers cannot afford to live in the area where the jobs are, Levy said. The problems may be alleviated somewhat if Santa Clara County residents approve Measures A and B. Measure A would provide money for low-income housing and other housing projects, while Measure B would provide funding for improvements to Caltrain, BART, roads and bicycle infrastructure. The full report is available online at jointventure.org/images/stories/pdf/update-2016-11.pdf.

San Carlos Parks & Recreation Department

San Carlos Parks & Recreation Department 12 hrs · September is National Senior Programs Month! Come check out the updated Adult Community Center and the programs we have for adults over 50! Join our new fitness center, take a tap, fencing or boot camp class, or work on your flexibility and balance! We have it all for you. https://www.facebook.com/scparksandrec/posts/1243633229022448

Palo Alto proceeds with storm water management fee increase

By Jacqueline Lee, Daily News Staff Writer Posted: 08/30/2016 08:47:19 PM PDT | Updated: a day ago By Jacqueline Lee Daily News Staff Writer PALO ALTO -- Money from a proposed increase in storm water management fees would be spent more to cover operating costs than make capital improvements, the Palo Alto City Council decided Monday, reversing a decision made earlier this year. The council previously approved a resolution calling for a monthly fee of $13.65, up from $13.03. The initial breakdown was going to be $6.62 as the base and $7.03 for capital improvements. Now, the allocation $7.48 as the base and $6.17 for improvements. City staff told council members that initial calculations were off because they were tied to fiscal year 2016 instead of 2017 and more money is needed for operating costs. A public protest hearing on the rate hike is set for Oct. 24. Property owners can file written objections to the fee increase until then. If a majority does so, the council has to terminate the fee increase process. If there is no majority opposition, then the city will conduct a mail ballot election on the fee increase, sometime between Jan. 11 and Feb. 28. If approved, the new fees would go into effect June 1 and generate about $6.9 million in annual revenue for the next 15 years. In early 2015, the city identified about $37 million worth of needed capital improvements. Property owners currently pay about $12.63 per month in storm drain bills. Advertisement Current fees will expire in June. If no action is taken to approve updated fees, the rates will revert to $4.25, an amount property owners approved in 2005, which city leaders say is not enough to maintain operations. Email Jacqueline Lee at jlee1@bayareanewsgroup.com or call her at 650-391-1334; follow her at twitter.com/jleenews.

Menlo Park: Sidewalk dining to expand on Santa Cruz Avenue

By Kevin Kelly, Daily News Staff Writer Posted: 08/31/2016 04:16:26 AM PDT Updated: 08/31/2016 11:23:19 PM PDT By Kevin Kelly Daily News Staff Writer MENLO PARK -- Menlo Park is finally ready to roll out an expanded downtown street dining program. What began as a pilot at Left Bank restaurant on Santa Cruz Avenue in May 2014 will expand to five additional eateries and a furniture store along the main downtown street as soon as October. All seven establishments enrolled in the program will receive "semi-permanent" concrete decking along the street, which entails the removal of two to three parking spaces outside each business. Street cafes outside Left Bank, LB Steak, Galata Bistro, Angelo Mio, Mademoiselle Colette, Bistro Vida and Harvest will provide seating for as many as 200 people. The city planned to begin construction in July, but improvements to meet federal disability requirements took longer than expected because of the sidewalk's cross slope and the need to "add railings along the sidewalk because of a trip hazard," according to Housing and Economic Development Manager Jim Cogan. Construction of the street cafes, all of which are between the 600 and 800 blocks of Santa Cruz, is to begin in September and last roughly three weeks. The street cafes will remain in place for three years, the life of each agreement. The cafes are designed to be easily taken out if there is a change of ownership or an establishment opts not to renew the agreement. Advertisement In May, the council authorized spending an additional $350,000 toward the program, on top of $165,000 allocated through the Downtown Specific Plan, for a total of $515,000 coming out of the 2016-17 budget. The businesses' combined share of the base design is $169,000, the city will cover the remaining 80 percent. The city has stated that each street cafe should be unique, but businesses must pay for any custom features. The program is open to additional businesses. Email Kevin Kelly at kkelly@bayareanewsgroup.com or call him at 650-391-1049.

Just Approved: FHA condo approval grants breathing room for borrower

Published 3:55 pm, Friday, August 19, 2016 Mortgage agent: John Holmgren. Property type: Condo in Alameda. Loan type: FHA HECM reverse mortgage. Rate: 4.463 percent initial rate; 9.463 percent lifetime maximum. Backstory: Ruth Masonek of Preferred Properties contacted John Holmgren about an Alameda client who had recently been laid off. Unable to find new employment, the client struggled with her mortgage payment and other financial obligations, as Social Security was her only income. While the homeowner had a good equity position in her home, the sale proceeds would not be enough for her to pay all cash for a replacement residence. Holmgren evaluated her prospects for qualification for a new home purchase. While he found that she would not qualify to buy a new home in the Bay Area, she would qualify for a FHA reverse mortgage. The HECM reverse mortgage is a federally insured loan product that eliminates mortgage payments by allowing interest to accrue until such time as the homeowner no longer lives in the home. Since it was important that the property appraisal come in at a particular value to make the reverse mortgage possible, Holmgren also contacted one of his local appraisal sources to confirm that the appraised value was likely to be sufficient. In this case, the challenging factor was that the condo project was not FHA approved, a requirement for anyone wanting to get an FHA reverse mortgage. Based on his experience with regular home mortgages, Holmgren knew that it was possible to secure FHA condo project approval fairly readily. He coordinated efforts with the homeowners association, the unit owner and a project approval consultant to secure project approval in less than three weeks. Once this approval was obtained, the reverse mortgage was secured and now the homeowner will be able to live in her home as long as she wishes without financial insecurity. John Holmgren, Holmgren & Associates, (510) 433-8809, john@mortgageholmgren.com.

Condo Legislation Passes U.S. Senate

The U.S. Senate has passed H.R. 3700, the "Housing Opportunity Through Modernization Act," by unanimous consent. This legislation includes reforms to current Federal Housing Administration restrictions on condominium financing, among other provisions, and is long supported by both the CALIFORNIA ASSOCIATION OF REALTORS® and NATIONAL ASSOCIATION OF REALTORS®. Changes include efforts to make FHA's recertification process "substantially less burdensome," while lowering FHA's current owner-occupancy requirement from 50 percent to 35 percent. The bill also requires FHA to replace existing policy on transfer fees with the less-restrictive model already in place at the Federal Housing Finance Agency. C.A.R. would like to thank the 19,000-plus California REALTORS® who responded to NAR's Call-for-Action and urged their senators to pass this legislation and offer relief to home buyers. What makes REALTORS® so strong politically is the number of constituents we have in every congressional district. Even if your business model is not based on condominium or Rural Housing Service transactions, all REALTORS® need to band together to support homebuyers to help ensure future transactions, and that is what California REALTORS® did with H.R. 3700.

Study finds racial disparities in roadblocks to homeownership

For release: July 14, 2016 Racial disparities in roadblocks to achieving American Dream Prospective home buyers want current presidential candidates to address housing affordability LOS ANGELES (July 14) – Prospective home buyers face numerous challenges when it comes to achieving the American Dream, and homeownership obstacles vary among ethnic groups, according to a poll conducted by leading think tank the Futures Company in partnership with the CALIFORNIA ASSOCIATION OF REALTORS®’ (C.A.R.) Center for California Real Estate. For all respondents, saving enough for a down payment is the biggest barrier to becoming a homeowner, cited by nearly one in three (29 percent) prospective home buyers, followed by housing supply constraints (27 percent), access to credit and financing (22 percent), and personal debt (19 percent). These hurdles diverged across race and ethnicity. Thirty-one percent of non-Hispanic whites said constrained housing supply was the most likely deterrent to becoming a homeowner, while a third of Hispanics cited access to credit and financing as their primary challenge in buying a home. African-Americans (33 percent) and Asians (32 percent) both cited a lack of down payment or savings as the main prohibitive factor in purchasing a home. “With record high rents and only about a third of the state’s households able to afford to buy a median-priced home, the dream of owning a home in California is evaporating,” said C.A.R. President Pat “Ziggy” Zicarelli. “It’s even more discouraging for prospective ethnic home buyers who must face greater obstacles to scrape together a down payment or obtain credit and financing.” Homeownership and sense of well-being The poll also found that the vast majority (84 percent) of respondents agree that owning their own home gives them a greater sense of well-being and control over their environment. Across all incomes, races/ethnicities, and generations, respondents overwhelmingly agreed on the positive impact of homeownership on their personal satisfaction and health from having greater control over their environment. Housing and retirement strategy In connecting housing to opportunity, nearly three in four (72 percent) agree that owning a home is part of their retirement strategy, believing that homeownership is a tool for long-term financial security among those who plan to buy a home or currently own one. Presidential candidates and housing policy Lastly, nearly three-fourths (70 percent) of survey respondents who plan to buy a home agreed that they would like the current presidential candidates to address how to make housing more affordable in their campaigns. And, across all incomes, generations, and races/ethnicities, consumers were strongly in agreement that housing affordability should be a top priority on the presidential campaign trail as candidates make their pitches for ballots in the lead-up to the November contest. However, housing affordability and solutions to reduce the cost of living have received noticeably little attention this campaign season. Other than releasing plans to increase the five-decades-low homeownership rate, the presumptive nominees, Democrat Hillary Clinton and Republican Donald Trump, have not issued comprehensive housing policies, including action items to address the significant housing affordability crisis. The Center for California Real Estate (CCRE) (centerforcaliforniarealestate.org) is an institute from the California Association of REALTORS® dedicated to advancing real estate knowledge. The goal of the center is to arm C.A.R.’s 185,000 members with ideas that help them become more knowledgeable, professional, and insightful in their work as practitioners and stakeholders in the future of real estate. To fulfill this goal, CCRE regularly enlists the foremost experts on topics of pertinent interest to the industry. Leading the way...® in California real estate for more than 110 years, the CALIFORNIA ASSOCIATION OF REALTORS® (www.car.org) is one of the largest state trade organizations in the United States with 185,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles. # # #

Must-Have Design for Multigenerational Living

Daily Real Estate News | Monday, July 18, 2016 Multigenerational living is on the rise, due to grandparents moving in or millennials returning home. A record 57 million Americans – or 18.8 percent of the population – lived in a multigenerational family household in 2012, according to the Pew Research Center. Read more: Top Housing Preferences Depend on Your Age The homebuilding industry is paying close attention to this trend. They're changing design options to better accommodate multiple generations living under one roof. The Huffington Post recently spotlighted several key elements multifamily developers and homebuilders are keeping in mind when it comes to the demands of multiple generations in one home: Open access: Ensure access for every generation, from those who require a wheelchair or walker (by adding extra space through doors and hallways) to baby proof kitchens for young children. Model homes are merchandising these principles in homes they stage. More than one master bedroom: Aging parents moving into a home may increase the need for a second master suite with its own bathroom. This allows older generations to feel like they have their own space. Suite additions: In-law suites may be an alternative than an extra master bedroom. These mini apartments usually contain separate entrances and kitchens. More than half of home buyers aged 55 and older said they’d be willing to pay more for homes with in-law suites, according to a survey conducted in 2013 by NAR. Current zoning laws may restrict the presence of some of these structures, however. Privacy: When more people are sharing a home, privacy becomes more of an issue. One way to achieve greater privacy is to zone living areas to show potential owners how they can use one space for multiple functions and also accommodate different generations at the same time. For example, versatile living areas can help, such as by taking a large open area and designating spaces for built-in storage or shelving for toys that could present hazards for seniors. Source: “5 Design Features That Help Sell Multi-generational Housing,” The Huffington Post (July 14, 2016)

How to Avoid Identity Theft When Moving

Daily Real Estate News | Monday, July 18, 2016 The moving process can make your clients more vulnerable to identity theft and other forms of fraud, since often personal financial information isn't adequately protected. As if moving wasn't stressful enough on its own, it can take nearly six months for a person to recover from identity theft during a move. Read more: Take Control of ID Theft People can do a few things to protect themselves from identity theft during a move, says writer Adam Levine, author of “Swiped: How to Protect Yourself in a World Full of Scammers, Phishers, and Identity Thieves." He says to focus on the 3 M’s: 1. Minimize your exposure 2. Monitor your accounts 3. Manage the damage. Here are some of Levine’s other tips: Don’t share too much: Before, during, and after a move, avoid sharing too much information with those you don’t know, whether in person, on the phone, or via social media, Levine writes. Secure electronics: Set long, strong passwords, and use two-factor authentication whenever possible. Secure computers, smartphones, and tablets. Protect documents: Shred sensitive documents you no longer need. During a move, carry your personally identifiable information with you and in one box. Monitor for fraud: Check your credit score and consider enrolling in transactional notification programs. You also might consider subscribing to various credit and fraud monitoring services to alert you to any sudden changes on your credit report. Watch your mail: Your mail will be influx when moving so look into doing more online billing and autopay to prevent lost or forgotten bills. Make address notification a priority: Notify federal agencies that send you mail of your new address. Compile a list of places to inform of your new address, such as the Social Security Administration, IRS, and Department of Motor Vehicles. Source: “Moving: A Dangerous Time for Your Identity,” Credit.com (June 9, 2016)

These Real Estate Markets Are Getting Very Hot

Daily Real Estate News | Tuesday, July 19, 2016 In a handful of markets, home prices are surging faster than inflation. However, rising home prices and the increase of bidding wars in some markets are due to a housing shortage and are not a sign of a housing meltdown, realtor.com® reports. Read more: 3 Reasons We're Not in a Housing Bubble Also, “only the most qualified buyers are able to get financing” for mortgages, says Jonathan Smoke, realtor.com®’s chief economist. “Flipping is back to normal. And we’re building about half as many homes as we need.” Smoke analyzed the 50 largest metro markets in the nation and looked at their housing trends from 2001 through 2015. He says there are some markets where the high prices likely can’t be sustained and are showing signs of overheating, though none of the metros are currently in “bubble” territory. “There are places that have risks,” Smoke says. “But even those places do not resemble what they looked like in their actual bubble years.” Realtor.com®’s research team pinpointed six factors that create a housing bubble to assess the 50 metro markets, including how quickly price appreciation has been climbing, the number of homes being flipped, how many buyers are getting mortgages, home prices compared with wages, home prices compared with rental costs, and the number of new homes being built. Smoke says the following six cities were showing the most signs of overheating: San Jose, Calif. San Francisco, Calif. Austin, Texas Salt Lake City, Utah Dallas, Texas Los Angeles, Calif. Source: “Bubble Watch: Could the Housing Markets in These Top Cities Be Getting Too Hot?” realtor.com® (July 18, 2016)

The Strangest Real Estate Add-Ons

Daily Real Estate News | Monday, July 18, 2016 Some items should not be included in a home sale. But that hasn’t stopped some home sellers from trying to unload some unwanted items – or things – from snow machines to even the family dog anyway. Read more unusual tales from agents on the job (or submit your own) here. Realtor.com® recently featured some of the most bizarre items that home sellers have tried to sell with their home. Pets: Trying to give away Fido during a home sale apparently isn’t that uncommon. Glenn S. Phillips, CEO of Lake Homes Realty, recalls buying his first home with the seller offering his little black dog in the deal too. Phillips bought the home and took the little dog too, naming him “Mikey the Mortgage Dog.” Sally Slater with Douglas Elliman Real Estate in Bedford, N.Y., told realtor.com® that she sold her cat with her horse farm to buyers once. The buyers thought the cat would be good at keeping the barn free of mice and Slater realized that was the cat’s home anyway. A dungeon in the master: The owner of the home had an adult play area – resembling a dungeon – built into his master bedroom. The owner “refused to remove it, and he refused to lower the asking price,” recalls Dean Ferraro, a real estate professional in Oceanside, Calif., who says the home was listed about $500,000 over market value because the owner was adamant that his dungeon created more value. “He said he had invested a lot of money into it and was sure a buyer would enjoy it.” Eventually, after the home lingered on the market for six months, the owner refashioned the room into an office. The home finally sold. A snow machine and ski hill: How about your own ski hill? Buyers weren’t biting at that idea. One seller in the Hamptons offered up a 40-foot-high, man-made ski hill that even included a homemade snow-making machine for his home. The buyers of the home didn’t want it and insisted the seller remove the snow machine from the property (but they did keep the hill). However, they still got a surprise after closing – two cats were left behind. “After the closing, the buyers came to their new home to find the seller had left his [two] cats on the front porch with food and note for them to keep them,” says Palmer Gaget with Douglas Elliman in New York City. “I called the seller’s ex-wife, who came to get the cats immediately.” Source: “5 of the Weirdest Things People Have Tried to Sell With Their Homes,” realtor.com® (July 13, 2016)

What Moms Want in a House

Daily Real Estate News | Friday, July 15, 2016 The configuration of the home is more important to buyers with children these days, Jeff Martel, a real estate professional with Better Homes and Gardens Real Estate, told MarketWatch. Read more: Top 10 Cities for Families “Ten years ago, the only thing families were looking for was square footage and a large yard,” he says. But now more family home shoppers are placing an open floor plan high on their list rather than separated rooms. “Everything happens in the kitchen,” he says. “Kids use the islands now for breakfast, lunch and dinner.” Here are other house features that parents desire the most, according to real estate professionals: Office nook: Martel sees a declining interest in having a separate home office. Instead, he has more clients asking for an office nook off the main living space so that parents can better monitor their children while the kids are online. “You want a family office that’s very visible with a direct sightline to the kitchen,” he says. Garage access: Location of the garage is also important, adds Lindsay Alteri, who works for BHGRE in Raleigh, N.C., and is also a mother of two young children. “If there are stairs to and from the garage, are you going to be willing to go up and down them carrying a child” in from the car? she notes. Mud room: Also, a garage that walks into an area in the laundry room is desirable, adds Stacy Barry, a real estate professional at Century 21 Scheetz in Indianapolis. “You want a ‘mud room’ that has a bench and some storage for boots that’s done in a hardwood or laminate where you can drop everything like backpacks and jackets,” Martel adds. Built-in storage: “Kids come with clutter,” Martel says. Parents are wanting a lot of built-in storage in bedrooms, attics, spaces under stairs, and even hidden storage behind bookshelves. Source: “What Moms Look for When Buying a House,” MarketWatch (June 19, 2016)

Must-Have Design for Multigenerational Living

Daily Real Estate News | Monday, July 18, 2016 Multigenerational living is on the rise, due to grandparents moving in or millennials returning home. A record 57 million Americans – or 18.8 percent of the population – lived in a multigenerational family household in 2012, according to the Pew Research Center. Read more: Top Housing Preferences Depend on Your Age The homebuilding industry is paying close attention to this trend. They're changing design options to better accommodate multiple generations living under one roof. The Huffington Post recently spotlighted several key elements multifamily developers and homebuilders are keeping in mind when it comes to the demands of multiple generations in one home: Open access: Ensure access for every generation, from those who require a wheelchair or walker (by adding extra space through doors and hallways) to baby proof kitchens for young children. Model homes are merchandising these principles in homes they stage. More than one master bedroom: Aging parents moving into a home may increase the need for a second master suite with its own bathroom. This allows older generations to feel like they have their own space. Suite additions: In-law suites may be an alternative than an extra master bedroom. These mini apartments usually contain separate entrances and kitchens. More than half of home buyers aged 55 and older said they’d be willing to pay more for homes with in-law suites, according to a survey conducted in 2013 by NAR. Current zoning laws may restrict the presence of some of these structures, however. Privacy: When more people are sharing a home, privacy becomes more of an issue. One way to achieve greater privacy is to zone living areas to show potential owners how they can use one space for multiple functions and also accommodate different generations at the same time. For example, versatile living areas can help, such as by taking a large open area and designating spaces for built-in storage or shelving for toys that could present hazards for seniors. Source: “5 Design Features That Help Sell Multi-generational Housing,” The Huffington Post (July 14, 2016)

These Real Estate Markets Are Getting Very Hot

Daily Real Estate News | Tuesday, July 19, 2016 In a handful of markets, home prices are surging faster than inflation. However, rising home prices and the increase of bidding wars in some markets are due to a housing shortage and are not a sign of a housing meltdown, realtor.com® reports. Read more: 3 Reasons We're Not in a Housing Bubble Also, “only the most qualified buyers are able to get financing” for mortgages, says Jonathan Smoke, realtor.com®’s chief economist. “Flipping is back to normal. And we’re building about half as many homes as we need.” Smoke analyzed the 50 largest metro markets in the nation and looked at their housing trends from 2001 through 2015. He says there are some markets where the high prices likely can’t be sustained and are showing signs of overheating, though none of the metros are currently in “bubble” territory. “There are places that have risks,” Smoke says. “But even those places do not resemble what they looked like in their actual bubble years.” Realtor.com®’s research team pinpointed six factors that create a housing bubble to assess the 50 metro markets, including how quickly price appreciation has been climbing, the number of homes being flipped, how many buyers are getting mortgages, home prices compared with wages, home prices compared with rental costs, and the number of new homes being built. Smoke says the following six cities were showing the most signs of overheating: San Jose, Calif. San Francisco, Calif. Austin, Texas Salt Lake City, Utah Dallas, Texas Los Angeles, Calif. Source: “Bubble Watch: Could the Housing Markets in These Top Cities Be Getting Too Hot?” realtor.com® (July 18, 2016)

Two Ways to Compare Renting vs. Owning a Home

By Julian Hebron on 19 Jul 2016 Know-How When you're doing the math, make sure you've got all the data you need. One of the hottest topics in housing is whether it’s better to rent or buy a home. The answer always changes based on market conditions, so it’s handy to use a rent vs. buy calculator to do comparisons on the fly. But you should also know how rent vs. buy calculations actually work so you can feel confident in deciding what’s right for your budget and your family. Here are two easy ways to do this. Checking the numbers The first thing you need to understand is how rent vs. buy math works for you personally. You do this by calculating the monthly costs of home ownership, subtracting tax benefits, then comparing the final figure to the rental cost of a similar home in the same neighborhood. Let’s assume you have a credit score of 750, and a $300,000 home purchase price with 10 percent down (that’s $30,000) for a 30-year fixed mortgage. Current rates are around 3.25 percent. In this scenario, a mortgage calculator quickly tallies your total monthly housing costs as follows: Mortgage payment of principal and interest $1,175 Property taxes $300 Private mortgage insurance (PMI) $133 Homeowners insurance $67 TOTAL monthly housing cost $1,675 Next you calculate your tax benefit. As a homeowner, you get to deduct your mortgage interest and property taxes. To calculate annual mortgage interest, you multiply your $270,000 loan amount by your 3.25 percent rate to get $8,775. To calculate annual property tax, you multiply your $300,000 home price by a national average of 1.2 percent property tax to get $3,600. The sum of $8,775 in mortgage interest and $3,600 in property tax is $12,375 in deductible costs. Based on the income needed to qualify for a $300,000 home, your tax bracket is likely around 28 percent. To get a quick estimate of annual tax savings, we multiply $12,375 by 28 percent to get $3,465. Next we divide $3,465 by 12 months to get a monthly estimated tax savings of $289. Then we subtract $289 from your total monthly housing cost of $1,675 to get estimated after-tax cost of $1,386. Finally, you compare this estimated after-tax housing cost of $1,386 to market rent for a comparable home in the same city. Be sure to compare properties of the same size, quality, and location to ensure your analysis is accurate. How long before owning is cheaper than renting? The second thing you need to understand is how long it takes for buying to become more financially advantageous than renting. The threshold you cross when buying becomes more favorable is called the breakeven horizon. This is a calculation Zillow’s team of economists created to incorporate all possible buying costs and benefits such as the down payment, closing costs, mortgage payment, property taxes, insurance, utilities, maintenance, and tax benefits, as well as all renting costs for the same home. Calculations also incorporate home value and rental price appreciation. Breakeven horizon is the year when buying costs become less than or equal to renting costs, when accounting of all of the factors noted above. According to the most recent quarterly data, the breakeven horizon is less than two years in 72 of America’s 100 largest markets. When it comes to making an investment as large and as long-term as a home purchase, this is a very compelling breakeven period. The latest report allows you to look at local markets so you can see what the breakeven horizon is for you, and the tables also include median rents for quick reference. Take all this data into consideration when making your rent vs. buy decision. Related: Renting or Buying a Home: Which Is Best for You? 5 Ways to (Really) Save for a Down Payment Quiz: Are You a Savvy Mortgage Shopper? Note: The views and opinions expressed in this article are those of the author and do not necessarily reflect the opinion or position of Zillow.

First-Time Buyers Not Picking “Starter Homes”

Daily Real Estate News | Tuesday, July 19, 2016 The “starter home” trend may be fading in real estate. Prior to the housing bubble, first-time buyers with average incomes would shop for a more affordable, smaller house with the idea of moving on to a larger home in a few years. Starter Homes: Are They Over? New Homes Are Getting Bigger and Pricier Builders Shy Away From Starter Homes Today’s first-time buyers want a home that meets their needs now and in the future. Seventy-five percent of first-time buyers say they prefer to skip the starter home and find a house that meets their long-term needs, according to a survey commissioned by Bank of America in early 2016. Thirty-five percent say they even intend to stay in that home until they retire. First-time buyers nowadays tend to be higher earners, and due to rising home prices and tighter housing inventories they are wanting to buy a home where they can stay put for a long time. In 2013, first-time buyers purchased homes with an average of 1,845 square feet. The average home in the U.S., meanwhile, is just 1,819 square feet, according to BuildZoom, a real estate construction firm’s analysis of data from the Census Bureau. "So those home buyers who probably would have been looking for the lowest-end homes 10 years ago during the housing boom are today just not able to buy. And those that are able to buy are looking further upmarket," says Issi Romem, chief economist for BuildZoom. Many first-time buyers aren’t planning to upgrade and move on in five years, like they once did. They plan to stay put. "When they do purchase, they're planning on living there longer than buyers that we've seen in the past," says Jessica Lautz, NAR’s managing director of survey research. "They're expecting to live there 10 years." Source: “More First-Time Buyers Skip Starter Home Stage for Bigger, Better,” USA Today (July 17, 2016)

Builders Ramp Up Production This Summer

Daily Real Estate News | Wednesday, July 20, 2016 Builders are finally adding more homes into the pipeline. Housing starts across the country rose in June, ticking up 4.8 percent month over month to a seasonally adjusted annual rate of 1.19 million units, the Commerce Department reports. Permits, a sign of future construction, also rose, up 1.5 percent in June, and is at a seasonally adjusted annual rate of 1.15 million units. Buyers Want New Homes... New-Home Sales Surge to Post-Recession High Builders: Lot Shortages at Record Highs The West Drives New-Home Sales Jump “This month’s uptick in production is an indicator that the housing market continues to move forward,” says National Association of Home Builders Chairman Ed Brady. “At the same time, builders are adding inventory at a cautious pace as they face lot shortages and regulatory hurdles.” Single-family housing starts climbed 4.4 percent in June to a seasonally adjusted annual rate of 778,000 units. Multifamily production rose 5.4 percent to 411,000 units. “The June report is consistent with our forecast for a gradual but consistent recovery of the housing market,” says Robert Dietz, chief economist of the NAHB. “Single-family production should continue to strengthen throughout the year, buoyed by job growth, new household formations, and low mortgage interest rates.” By region, single- and multifamily housing starts posted the highest month-to-month gains in the Northeast, rising 46.3 percent in June, followed by a 17.4 percent increase in the West. On the other hand, the Midwest registered a 5.2 percent decrease in starts last month, while the South saw a 3.4 percent drop. Despite the overall drops, all regions of the country saw an increase in single-family production. Source: National Association of Home Builders

Student Housing Is Booming

Daily Real Estate News | Wednesday, July 13, 2016 The student-housing sector is reaching new highs. In the first quarter of this year, capital pouring into student housing reached a record $2.6 billion, according to commercial real estate services firm JLL. Sales volume for the student-housing sector was up 66.2 percent year-over-year. "We are seeing more direct deals by foreign investors this year," says Lucy Fletcher, a managing director and international capital expert at JLL. About half of the volume — or $1.4 billion — came from offshore investors, Fletcher says. Get Educated About Opportunities in College Towns 7 Most, Least Affordable College Towns 10 Best College Towns for House Flippers Help Parents—or Yourself—Tackle Rising College Costs Land lease agreements are also growing in popularity for campuses that need repositioning or that have been vacant, adding fuel to the boom, the National Real Estate Investor reports. "Investors are buying into really well-managed platforms. There is large pent-up demand across the entire sector of core products," says Scott Streiff, JLL executive vice president. Class-A products are deemed as those having enrollment of 30,000 students or more. "We are seeing investors chasing core products that deliver attractive cap rates with projected student enrollment increases." The student-housing sector tends to be recession-proof, and investors are viewing it as safer than some other investment classes. "I don't know if there will ever be a point of supply and demand meeting in this sector," adds Jaclyn Fitts, national director of student housing at real estate services firm CBRE. Student housing reached a new record in the 2014-15 academic year, adding about 60,000 beds, according to CBRE data. CBRE predicts another 45,000 student-housing beds will be added in 2016-17. "There will continue to be investment opportunities in 2017 and 2018," Fitts told the National Real Estate Investor. "We will continue to see new development in 2017. Additionally, purpose-built student housing properties completed in the 2000s are primed for repositioning, so we will continue to see opportunity there in rehabbing first-generation purpose-built [properties] and raising rents." Source: “Student Housing Sector Continues to Outperform,” National Real Estate Investor (July 12, 2016)

Millennials Want Suburbs That Feel Like a City

Daily Real Estate News | Wednesday, July 20, 2016 Millennials may be drawn from pricey city centers to the less expensive suburbs, but nonetheless say they want a suburb that still has the look and feel of a big city in some ways. Some suburbs are finding means to cater to that desire and promoting the amenities they can offer to attract more younger people. The Next Big Thing: The 'Burbs A Model for the Future Millennials Want the 'Anti-Suburb Suburb' Smart Growth: Where Do You Start? For example, some are touting their specialty shops, dining options, and the plentiful sidewalks, bike lanes, and trails. The bike lanes and trails may be one of the biggest lures. Homes near walkable — and bikeable — trails get a premium boost of 5 percent to 10 percent, according to a study by Headwaters Economics, a research group focused on land management and community development. “What’s happening is, a little bit of the city is following people into the suburbs,” says Ed McMahon, senior resident fellow at the Urban Land Institute. “Almost all the successful suburbs are building walkable, mixed-use [i.e., a housing and shopping combo] centers.” Also possibly getting more millennials relocating to the suburbs, more companies are either moving or expanding to suburban areas to lower their operating costs. “What millennials want are places that have a vibrancy, where you … can shop, go out to bars, walk, and bike,” says Lynn Richards, president and CEO of the Congress for the New Urbanism. Suburban communities across the country are spending more money to overhaul their Main Streets and make their downtown more walkable, says Brett Schwarz, program manager at the National Association of Development Organizations. They’re installing bike paths and trails that link to neighborhoods or nearby towns. In the past year alone, 136 communities nationwide applied to be designated as bicycle-friendly communities through the League of American Bicyclists (63 were suburbs, while 17 were rural towns). Bicycling is becoming the fastest-growing form of transportation in the country, according to McMahon. In 1983, more than 87 percent of 19-year-olds had a driver’s license. By 2014, that percentage has dropped to 69 percent. Source: “Bike Lanes Are Bringing More Millennials to the Suburbs,” realtor.com® (July 20, 2016)

Housing Is for Everyone — No Exceptions

Daily Real Estate News | Wednesday, July 20, 2016 At the “Opening Doors” panel during the “Housing for All” conference sponsored by NAR, moderator Sherri Meadows, 2016 NAR vice president, discusses issues with panelists (from left) Megan Hustings, interim director with the National Coalition for the Homeless; Marietta Rodriguez, vice president for national homeownership programs with NeighborWorks America; and Diane Yentel, CEO of the National Low Income Housing Coalition. What a difference a roof makes. At a symposium in Washington, D.C., this week, the National Association of REALTORS® shed light on the plight of individuals and families facing homelessness and housing insecurity. “Tonight, you and I will lay our heads on a pillow with a roof over our heads, yet 500,000 people in our nation will not,” said NAR Vice President Sherri Meadows, citing data on homelessness from the U.S. Department of Housing and Urban Development. The 2015 HUD report showed the number of homeless was declining, Meadows told symposium participants, yet the number of U.S. families living with housing insecurity is on the rise. “According to the Center for Housing Policy’s Housing Landscape 2016 Report, in 2014, some 17.6 million households were severely burdened by housing expenditures, spending more than half of their income on housing costs,” she said. Meadows, an Ocala, Fla., practitioner, spearheaded the July 18–19 symposium, which focused on finding solutions and opening hearts. Panelists explored the causes of homelessness and discussed creative approaches to expanding affordable housing. Participants toured a supportive housing facility, which combines housing with social services, and packed more than 30,000 meals in a “Meals of Hope” food packing event. Speakers included Dick Larimer, senior content manager for Make Room, a project that gives voice to renters and elevates rental housing issues, and Jeremy Cowart, whose Purpose Hotel kickstarter campaign is an intersection between philanthropy, entrepreneurship, empowerment, and design. Opening the conference, NAR President Tom Salomone said, “We are honored to join forces with so many housing industry leaders, practitioners, and others who are making strides to fight homelessness and to develop effective affordable housing solutions. As REALTORS®, we see it as our job to help build and maintain healthy and strong communities that are accessible and welcoming for everyone, no matter the income level.” Focus on Action Matching words to action is a hallmark of REALTORS®. After the 2008 market crash, the National Association of REALTORS® worked closely with lawmakers and regulators to drive a housing recovery and seek relief for Americans who were underwater. But in recent years, with rents and housing prices soaring in many parts of the country — in many cases beyond their pre-crash peak — the recovery has left millions of Americans struggling to find safe, affordable housing. REALTORS® see those struggles every day, and in May, NAR’s Housing Opportunity Committee proposed, and the board of directors approved, a policy supporting “cost-effective” and “evidence-based” approaches to ending homelessness. A fall REALTOR® Magazine article (“A Dream Too Far,” November/December 2015) highlighted some of the causes, chiefly the economic disparity that’s at the root of housing insecurity. In that article, NAR Chief Economist Lawrence Yun commented on the growing income gap and its effects on homeownership: “It’s certainly not in the interest of broader America,” Yun told managing editor Meg White, “and it’s something that everyone should be concerned about.” Meadows said she felt charged by the association’s decision to take up the cause. “Years ago, we were talking about the housing ladder and the importance of getting on that first rung of homeownership,” Meadows said. “Well, we need to lower that first rung because too many of our families and our veterans are without a roof over their heads — or they’re just a paycheck or two from homelessness.” In fact, REALTORS® around the country are leading the charge on housing opportunity, often with the support of NAR grants. In Austin, Texas, REALTORS® have been helping to meet the housing needs of veterans. In Central Virginia, REALTORS® helped Culpeper County officials update a 1964 comprehensive housing plan. In Florida, Meadows made reducing family homelessness one of her key priorities when she led the Florida REALTORS® in 2014. These and other efforts are discussed in depth in the summer issue of NAR’s On Common Ground magazine. What real change can REALTORS® hope to make? Meadows pointed to speaker Jeremy Cowart’s remarkable “I’m possible” video for a lesson on what one person can accomplish. “It’s about the effort,” she said. “I like to use the Mother Teresa quote: ‘I alone cannot change the world, but I can cast a stone across the waters to create many ripples.’”

Measuring Progress in the Housing Market

HUD’s housing scorecard provides a monthly snapshot of our nation’s housing market and measures how the Administration’s initiatives are serving Americans. Looking back on May, we witnessed notable progress among key indicators: sales of new and existing homes hit high levels and newly initiated foreclosures have remained below the pre-crisis monthly average for more than a year now. While housing is being reenergized, there is still a need to support programs that help more Americans recover from the Great Recession. Here’s a look at some of the top trends: April purchases of new homes surged to the highest pace in eight years. New home sales climbed 16.9 percent in April to 610,000 (SAAR)–the highest level since January 2008–and were 23.8 percent above a year earlier. In addition, March sales, at 531,000 units, were stronger than previously reported. New home sales have been higher than the 500,000 mark for the past six consecutive months. Monthly data on new home sales can be volatile, however, and are often revised. (Source: HUD and Census Bureau). Sales of previously owned (existing) homes reached a three-month high in April. The National Association of Realtors® (NAR) reported that sales of existing homes (including single-family homes, townhomes, condominiums, and cooperatives) rose 1.7 percent in April to 5.45 million (SAAR) from a 5.36 million pace in March and were 6.0 percent higher than a year ago. Sales in the Midwest jumped 12.1 percent to a 1.39 million pace; purchases were also up in the Northeast. Existing home sales have been above the 5.0 million mark for 13 of the past 14 months. Foreclosure starts and completions fell in April. Lenders started the public foreclosure process on 43,793 U.S. properties in April, a decrease of 8 percent from March and 15 percent from a year earlier. Newly initiated foreclosures have been below the pre-crisis (2005 and 2006) monthly average of 52,280 for more than a year. Lenders completed the foreclosure process (bank repossessions or REOs) on 33,518 U.S. properties in April, a decrease of 1 percent from the previous month and 26 percent less than a year ago. This is the second annual decline in foreclosure completions in the past 14 months. The Administration’s foreclosure mitigation programs continue to provide relief for millions of homeowners as the recovery from the housing crisis continues. In all, more than 10.5 million mortgage modifications and other forms of mortgage assistance arrangements were completed between April 2009 and the end of April 2016. More than 2.6 million homeowner assistance actions have taken place through the Making Home Affordable Program, including nearly 1.6 million permanent modifications through the Home Affordable Modification Program (HAMP), while the Federal Housing Administration (FHA) has offered more than 3.2 loss mitigation and early delinquency interventions through April. These Administration programs continue to encourage improved standards and processes in the industry, with lenders offering families and individuals more than 4.7 million proprietary modifications through March (data are reported with a two-month lag). This is just a brief overview of the May Housing Scorecard. For more information about the health of the housing market and how Administration programs are helping families please visit: www.hud.gov/scorecard. Katherine O’Regan is the Assistant Secretary for the Office of Policy Development and Research.

Older Americans Ready to Tackle Housing Market, Survey Says

Older Americans Ready to Tackle Housing Market, Survey Says Three out of four homeowners born before 1961 are confident they will have a financially comfortable retirement according to the Freddie Mac 55+ Survey, a comprehensive survey of the housing perceptions and preferences of Americans over the age of 55. The first Freddie Mac 55+ Survey also found that the majority of homeowners in this age group were very satisfied with their homes, their communities and their quality of life. Consistent majorities also said homeownership makes financial sense at almost every stage of adult life, whether or not a person is married or has children. “The overwhelming message of the Freddie Mac 55+ Survey is that homeownership works. The American Dream delivered greater financial stability and satisfaction to the homeowners who lived through every recession since the 1970s, including the housing crisis of 2008,” says Dave Lowman, executive vice president of Single-Family Business at Freddie Mac. In addition, while many over the age of 55 would prefer to age in their current home, nearly 40 percent said they would prefer to move at least one more time, and 70 percent of those said they are likely to purchase their next home. According to Lowman, this will create significant opportunities and challenges for the industry for years to come. “The decisions the nation’s Baby Boomers and other older homeowners make will have an enormous impact on the demand for housing and new mortgage credit for the foreseeable future,” Lowman says. “Whether they buy new homes or decide to refinance and renovate their current ones, the size of this generation and the fact that they hold close to two-thirds, approximately $8 trillion, of the nation’s home equity makes it very important that we watch what they do.” Overall, 76 percent of homeowners over the age of 55 are confident they will have a financially comfortable retirement, according to the Freddie Mac 55+ Survey. Majorities in every demographic group surveyed share this confidence to varying degrees: African-Americans (77 percent), Hispanics (64 percent), Asians (80 percent), homeowners who are currently working (74 percent), as well as homeowners earning less than $30,000 (55 percent). The Freddie Mac 55+ Survey also shows consistently strong links between homeownership and a person’s satisfaction with their home, community and financial situations. Specifically, 59 percent of homeowners are “very satisfied” with their communities, 64 percent with their current home, and 54 percent with their quality of life. A majority also believe homeownership makes financial sense for most Americans. Specifically, 96 percent feel homeownership makes financial sense for people who are either married with children or between 35-49 years of age. Smaller majorities said homeownership makes sense for people over 55 (87 percent), married couples without children (85 percent), single people with children (79 percent), and single people without children (53 percent). In terms of helping others become homeowners, nearly 25 percent of the respondents say they have already helped someone financially with a down payment. Why Baby Boomers Drive the Housing Market for Millennials The Freddie Mac 55+ Survey also identified a number of other opportunities and challenges for the housing industry that will stem from the decisions Baby Boomers and other older homeowners make over the next few years. For example, 63 percent of the 55+ homeowners surveyed say they prefer to age in place if they had complete control over it. However, nearly 40 percent indicate they would prefer to move at least one more time. This suggests nearly 27 million homeowners over age 55 may move again. When asked when they expect to move next, 13 percent think they will move within four years. Of those homeowners who would consider moving, 12 percent believe their next home will be more expensive than their current one, while 37 percent believe it will be in the same price range, and half believe it will be less expensive. At the same time, 23 percent of homeowners say they would have to make major renovations in order to age in place. 55+ers cite cost and convenience as the top factors influencing whether to move and where to live: affordability of living in a particular community (46 percent); having the amenities needed to live there for many years after I retire (44 percent); less maintenance (41 percent); having a place where I was no longer responsible for caring for the property (e.g. yard work, snow removal) (30 percent); proximity to other family members (31 percent); being in a walkable community (28 percent); having abundant services for adults my age (25 percent); access to public transportation (17 percent); warmer climate (19 percent); having a place that is smaller than my current home (e.g. downsizing) (19 percent). For more information, visit www.freddiemac.com.