Click on the link to read what Inman News says about the tax proposal.
October 23, 2017
Continued from last month:
I sat in on 2 economic discussions this month, one in San Diego who discussed the California housing market and the second last week in Mountain View who discussed the national housing market. Both economists also focused on our local area as well.
They both confirmed my last blog that the job creation is out numbering new housing starts. Tight regulation to build is an on going issue. However, another new issue is that there are new higher tariffs on Canadian lumber, thus raising the cost of the lumber needed to build, according to Lawrence Yun PHD. ,Economist for the National Association of REALTORS. He also mentioned that we also need to build more single-family housing.
What are California REALTORS proposing? We are proposing that anyone 55 or over have the ability to sell and purchase as often as they wish, trading up or down and transfer their property tax bases to the new property. Trading up will have a small formula We are hoping that this can make the November election. Please contact me to further discuss.
Below are the slides from the two speakers this month click or copy and paste:
September 29, 2017
Housing Crisis and over bidding.
There are many reasons for our housing crisis. The most previlant is the lack of inventory, however, how did we get to this point. There was a good article in the Mercury news by George Avalos. He mentiones a new UCLA Anderson Forcast. His news organization says that in the Bay Area, it will take between 14 and 36 years even to modestly roll back housing prices. Jerry Nickelsburg wrote "We find that to obtain a modest 10% reduction in price requires a little over 20% more housing. From Carl Guardino, president of the Silicon Valley Leadership Group, "This has been decades of California not preparing for Californians."
My thought is the bottom line, especially in the bay area, not enough homes, condos, or apartments are being contructed to keep up with the demand from the job growth created in the greator Silicon Valley. The issue is, when we add jobs without housing, property values and rents skyrocket. If we build massive housing, traffic becomes out of control. Where is the answer? I would like your input that I can share on my new Blog.
Finally, beware of the media sensationalizing the amount of over bidding. It was reported that a recent closing in Sunnyvale sold for almost $800,000 over the asking price. First of all, it is true. The list price was $1,688,000 and closing price was $2,470,000. Yes, the home values are increasing by leaps and bounds, however, we must put the over bidding in perspective. The property that sold in Sunnyvale for $782,000 over list price may have been listed on the low side, since the neighborhood already crossed the $2,000,000 mark. If listed at $2,000,000 - $2,200,000, the result may have been the same, except without the media frenzy.