The real estate market has been greatly affected by the coronavirus pandemic, but what exactly does that mean for you? I covered that question and much more in my recent webinar.

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Thanks to all who attended my recent webinar, “Real Estate Market Update, Coronavirus Impact, and Advice on What to Do.” For those of you who weren’t able to attend, I still wanted to make sure you had all of the important information that I shared with the attendees. 

We’ll start by looking at the market before the outbreak, then transition to an examination of how the state of California has been impacted by all of this from both a real estate and mortgage perspective. Finally, we’ll take a look at where the market might be heading for homebuyers, sellers, and investors, and what questions you’ll need to consider before buying and/or selling. Let’s start with a look at our real estate market before the pandemic.

Way back in February, home sales and home prices were on the rise. Single-family home sales were up by 6.6% from the previous month, and up 5.9% from February 2019. The median price was up 0.8% from January, but up 8.5% from February 2019. In fact, median prices in all regions of California went up, led by a 10% increase on the Central Coast, an 8.4% increase in Southern California, and a 5% increase in the Bay Area. Our median sale price as of February 2020 was $1,610,000, a 7% increase from the $1,505,000 we had in February 2019. Now that we know what the market looked like before the pandemic, let’s take a closer look at how we have been affected by it since.

A flash poll from the California Association of Realtors that was conducted between March 14 and March 16 found that more than half (54%) of Realtors statewide had clients who backed out from buying a home due to coronavirus concerns and 45% of Realtors had clients who backed out from selling because of the pandemic.

With new coronavirus cases continuing to spread across the nation and the declaration of a national emergency, CAR projected that many potential sellers will likely delay putting their homes on the market in the short term. If buyers follow the same route, a sharp sales decline could result in an increase in unsold inventory in the short term.

What has been the impact on mortgages? Well for starters, weekly purchase applications fell 23% in California and 17% in Washington state during the week of March 20 as compared to the previous week. Borrowers who have lost income as a result of the virus and subsequent shutdowns can ask to skip payments for as many as six months. This will have a big impact on mortgage servicers and lenders. Although rates are low right now, there are likely to be a lot of missed payments over the next few months as well.

In Santa Clara County, the impact of the coronavirus is easy to see. There were a total of 245 listings that were withdrawn or canceled between March 17 and March 31. During the same period in 2019, that number was 87. In 2018, it was 47. Additionally, the number of transactions that fell through was 89, compared to 55 in 2019 and 48 in 2018.

Buyers and sellers aren’t the only ones who have been affected by these changes. Landlords are feeling the pain, too. On March 27, Governor Newsome issued an executive order banning the enforcement of eviction orders for tenants affected by COVID-19 through May 31, 2020. 

If you’re a landlord yourself, here’s what you need to do if any of your tenants cannot pay rent. They must first declare, in writing, that they cannot pay rent due to a loss of income to COVID-19. Then ask the tenant to retain documentation and proof. These documents are important for tax credits, getting a grace period on your mortgage, and/or future eviction proceedings. You’ll also need to record a traceable record of payments between January and April to show this change in rent received. 

So where is our real estate market headed? There are a lot of questions that need to be answered first. For example, “Will high-tech companies have to lay off employees?” and “How will a reduction in listings and a reduction in buyers affect one another?”

Our economy had strong fundamentals coming into this outbreak, and the recovery could be swift and robust if the virus can be controlled in the next eight to 10 weeks. However, a prolonged virus with associated stay-at-home policies lasting over a period of several months will result in a recovery process that is much flatter with a longer trajectory. Only time will tell.

If you have any questions for me about anything I discussed in my seminar, in this blog, or anything else related to real estate, don’t hesitate to reach out via phone or email today. I look forward to hearing from you soon.

Today I’ll discuss all the ways that homes can be categorized and what determines those categories.

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When you’re in the market for a new home to purchase, the house you decide upon will fall into one of four categories based on its architectural style:

• Detached single-family homes have no other houses attached to them.
• Attached single-family homes have another home attached to them. If they’re right next to each other and share a wall, the two houses are called a duet.
• Townhouses don’t have neighbors above or beneath them.
• Condos usually have neighbors above and/or underneath.

The above categories are how homes are defined based on their architectural styles—the legal categories of homes differ from those definitions somewhat. There are three legal descriptions of homes:

• Single-family homes, in the legal sense, don’t have an HOA.
• Planned unit developments (P.U.D.) can include single-family homes that have an HOA or townhouses that have a backyard.
• Condos, from a legal perspective, can include newer townhouses without backyards.

Hopefully, these tips will help you during your next home search! If you have any questions in the meantime, don’t hesitate to reach out to us. We’d be glad to help you.

Here’s a market update to get your 2020 started right. Buyers are benefiting from low interest rates, and sellers’ listings are generating a lot of buzz.

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Last year’s market slowed down quite a bit from 2018 in Santa Clara County. In 2019, the median sales price for single-family homes was around $1.257 million, compared to 2018’s $1.337 million—roughly a 5% drop. For condos and townhomes, the median sales price in 2019 was $829,000, compared to 2018’s $880,000.

Already in 2020, we’ve seen a tremendous increase in buyer traffic and enthusiasm. One reason for this is that mortgage rates are still very low; buyers are able to get 3.75%, even 3.5%, for a 30-year fixed-rate mortgage.

“We’re seeing increased activity across various neighborhoods, too, not just one area.”

Though inventory is significantly lower right now than it was during the same time last year, the hesitant buyer of 2019 is now the convinced, confident buyer of 2020. In our first open house of the new year, we had more than 130 families attend. After one weekend, the house received eight offers higher than our listing. 

We’re seeing this kind of increased activity across various neighborhoods, too, not just one area. If you’re still hesitating to enter the market, let’s sit down and go over your situation. Maybe you’re a buyer who will decide that it’s time to capitalize on the low interest rates and home prices (which will likely get higher this year). Or, if you’re a seller, you may want to start receiving multiple offers of your own. 

Overall, 2020 is looking like it will be a good year. As always, reach out to me via phone or email if you have any real estate-related questions or to seek expert advice.

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We just wanted to take a minute to wish you a happy New Year! 

It’s hard to believe that 2019 has come to a close. It’s been an amazing year thanks to your continued support. The things we’ve accomplished this year, and always, wouldn’t be possible without you. 

We so appreciate your business, referrals, and friendship, and we’re excited to see what lies ahead.

The future is full of possibilities, and we hope you are as excited for this upcoming year as we are. Here’s to making 2020 our best year yet!

If you are thinking of buying or selling a home this year, please don’t hesitate to reach out to us with any questions. 

As always, we are here to help. 

We look forward to seeing you in 2020!

Here’s a quick breakdown of what buyers and sellers should expect to pay in closing costs during a home sale.

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Whether you’re buying or selling a home, what should you expect to pay in closing costs? That amount depends on three factors: the value of the home, its location, and whether it’s a new or existing home. 

What’s included in these costs? On the seller side, you’ll have to pay title insurance. The county transfer tax in Silicon Valley is also usually paid by the seller, but the city transfer tax varies according to the city. If the house is in San Jose, the city transfer tax is split 50/50 between the buyer and seller. If the house is in Santa Clara, there is no city transfer tax. 

Next, sellers will have to pay escrow fees and smaller items such as recording fees and prorations of the mortgage interest and property tax. Theoretically, these prorations don’t actually cost you when purchasing since you pay them anyway once you own the house, but they still show up on the settlement statement.

“Paying customs, of course, vary by county.”

On the buyer side, you’ll have to pay some escrow fees as well, and your lender usually requires you to get title insurance when applying for a loan. Additionally, when you buy a new construction home, the builder usually requires you to pay the seller’s closing costs in addition to your own. 

Paying customs, of course, vary by county. If you buy in Alameda County instead of, say, Santa Clara County, you’ll have to pay all of the escrow fees and title insurance. If you buy in Santa Clara, the seller pays these fees. Also, remember that everything is negotiable. 

If you’re thinking of buying soon, give me a call and I’d be happy to have an escrow officer give you an itemized breakdown of your expected closing costs. If you have any other questions about this topic, feel free to reach out to me as well. I’d love to help you.

I have some options for environmentally friendly Christmas trees you should consider.

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It’s Christmas time again, and this is my favorite season of the year. It’s an occasion to take a break from the world and spend time with our family and friends. Decorating your Christmas tree is enjoyable and an event we can share with our family during the season. 

There are many types of Christmas trees. I would recommend some of the environmentally friendly ones because every year you cut down a tree, it’s just thrown away afterward. So, I have a few options you can consider for an environmentally friendly tree. 

First, try renting a tree. There are some urban forest organizations that offer this option. You can rent a tree for up to a month, then you return it, and they help you plant a new tree in your area. Click this link to check out this organization.

“Every year you cut down a tree, it’s just thrown away afterward.”

The second option is to buy a potted tree. The potted trees are live, so if the pot is large enough it can stay in your home after the holiday, or you can plant it in your yard. If you do not want to plant it (or can’t), you’re always allowed to send it back to the nursery or urban forestry organization and they will plant it elsewhere. 

Your next option can be to get an artificial tree. Many people think of this as an environmentally friendly option. However, be careful about this because many artificial trees are not made of the correct materials. The classic artificial Christmas trees are made of PVC or metal, and those types are difficult to recycle. I propose you not buy those types of trees. If you want to go for an artificial tree, look for materials such as cardboard or something that’s easy to recycle.

Please send us a photo of what your tree looks like this year! I would love to share those. I hope you enjoy the holidays with your friends and family! If you have any questions concerning real estate, please feel free to reach out to me. I would love to help you.

Thanksgiving is just around the corner, and we’ve found a few great events you might want to attend in the spirit of the holiday.

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Thanksgiving is just around the corner, and, in the spirit of the holiday, I’d like to take a moment to remind you all of how thankful I am for your continued support. On behalf of myself and the entire Inside Silicon Valley Real Estate Team, thank you for trusting us with your real estate goals.

“Thank you for trusting us with your real estate goals.”

With that said, there’s one more way we’d like to express our gratitude—by sharing a few fun ways you and your family can take your Turkey Day celebrations beyond the dinner table and out into the community. Here is a brief list of some upcoming Thanksgiving events in our area we think you might enjoy: 

• Turkey Trot Races (Click here to find one happening near you!) 
• The Fremont Pre-Thanksgiving Estate Dinner and Dance Extravaganza
• Menlo Park’s Thanksgiving Prayer Concert
• Thanksgiving Brunch at Fairmont San Jose
• Murder Mystery Dinner Theatre In San Francisco

Hopefully, you can make it to one (or a few) of these great events! If you have any other questions or would like more information, feel free to give me or my team a call or send us an email. We look forward to hearing from you soon.

Is now a good time to buy a home? Here are my thoughts.

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Is the end of the year truly a good time to buy a home? This time of year, many homeowners go on vacation, meaning there are fewer houses on the market compared to other times of the year. We pulled the statistics from the last five years, and they show that inventory levels and the number of new listings have been lower compared to other months over that time.

This means that if you’ve been looking for a home for a while and you know exactly what house you’d like, there’s a good chance you can negotiate a better price for it toward the year’s end. The stats from the past five years we pulled also showed that the year-end sales price has been lower than in previous months.

“If you’ve been looking for a home for a while and you know exactly what house you’d like, there’s a good chance you can negotiate a better price for it toward the year’s end.”

So if you’re looking to purchase a home and are searching for a good price, reach out to us. Let us know how we can help you to evaluate your current situation and come up with a plan to get you into your dream home. In the meantime, if you have any other questions, we’d also be glad to speak with you. We hope to hear from you soon.

What are the pros and cons to selling your current home before buying a new one? Find out today.

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Last time, we discussed how to approach buying and selling a home at the same time with a focus on how to buy a new home first and then sell your current home. If you missed the first part of this discussion, you can catch up by checking it out here. Today, however, we’re going to focus on the second approach: selling your current home first and then buying a new one. What are the advantages and disadvantages to this second approach compared to the first?

First, the benefits:

1. You have control over the timing. You can decide what time you want to put your current house on the market and how long you want to take to go through the process—one week, two weeks, or as long as it takes to get an offer.

2. You have more leverage during negotiations. When you find people who are interested in buying your house, we can help you negotiate hard as long as we know what your bottom line is. If an offer comes in short of your bottom line, we can always reject the offer and take more time to find an appropriate buyer.

3. You know how much home you can buy. If you sell your current home first, you’ll know precisely how much can net; as long as we know the sales price, we will help you to calculate your total in-pocket profits. That way, you’ll know what you can afford when it comes to buying your next home.

“If you sell your current home first, you’ll know precisely how much can net to go towards your next home purchase.”

Now, the world isn’t perfect—every option has its pros and cons. Here are a few disadvantages to keep an eye out for when it comes to this approach:

1. The inconvenience of not having purchased another home. When you sell your current house first, you haven’t yet bought your next home, meaning you don’t have a place of your own to move to. Some people end up renting for a period while they search for a new home to buy, but that means you’ll have to move more than once, packing and unpacking your belongings at least twice.

2. The risk of the market changing direction. Market conditions can change very rapidly, and by the time you’re able to sell your house, the market could be totally different. This means you might be buying your next home in a different market compared to the one you sold your home in, which could impact your purchasing power.

3. You may miss out on the home you want. Even if you intend to buy directly from a builder, whose homes usually have more options for floor plans, etc., you might miss your opportunity to purchase if you take too much time to sell a home.

These are just a few things to keep in mind when it comes to deciding which approach to take. If you’re up against this particular dilemma, or even if you’re just thinking about selling your house to buy a new one, please reach out to us. The sooner you let us know, the better; we can sit down and go over your personal circumstances to come up with a plan tailored for your needs.

Buying your next home before selling your current one is convenient in some ways, but a hassle in others. Let’s discuss this strategy in greater depth today. 

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Given that interest rates are at their lowest point since 2015, it’s a fantastic time to buy a home. But what happens if you also have a home to sell? Today, we’ll discuss how to juggle two transactions.

Your first option is to buy first and then sell. While doing this will ensure that you aren’t without a home to move into once your current home is sold, it can create a financial strain. If you can’t handle temporarily holding on to two mortgages at once, this option might be difficult to manage.

Your second option, then, is to sell your current home before buying your next. Doing so will allow you some extra “padding” financially speaking, as you would be able to use the funds from your home sale to facilitate your home purchase, but it can be stressful trying to find a new home before your buyer begins living in your current one. 

“The bottom line is that it’s important to consider all aspects of whatever buying or selling strategy you choose before you make up your mind.”

With that said, let’s focus on the first option for now. As we already discussed, buying first affords you more time to go through both transactions. It also reduces the amount of pressure you’ll feel during negotiations, as you won’t have to worry about convincing the other party that you’ll be ready to close when they are. Both of these factors combined also make it possible for you to have greater leverage over the price you buy and sell each home for.

Of course, there are drawbacks to this option. You need to make sure you have enough money set aside to buy first before you make this kind of move. Not only will you have to account for the down payment, but you’ll need to be able to cover two mortgages for a while, as well.

Another disadvantage of juggling two transactions at once is that you may have to include more contingencies in your contracts, which can make your deal seem less appealing.

The bottom line is that it’s important to consider all aspects of whatever buying or selling strategy you choose before you make up your mind. If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.