GREETINGS! THIS IS A TALE OF TWO GENERATIONS…..
Schools will be out soon for the summer, and we will begin to see a new set of families out looking for homes, trying to get themselves settled before the next school year begins. Homes placed on the market between June and August will be very attractive to these buyers.
There is a specific group of buyers in the 18 – 34 age bracket, known as The Millenials. These young adults are producing one of the biggest waves of home purchases in recent history. Many of those are buyers who have become very unhappy with rental prices in the Valley, and some are now at the point where they have young families, need more space, and are determined to have their own home. So…..where are those homes going to come from? New home construction is notoriously slow in our area, especially single family homes. The condo/townhome supply is extremely tight. The strongest solution may come from a different generation…..
There is also a specific group of sellers, the retiring or retired Baby Boomers, who may be at the point of making a move down, out, or into an active retirement community. With interest rates on the rise – a trend that will likely continue in increments during this year and next -, and home prices at a record high point, a strategy of selling now could be the right one for these sellers. If this describes you and your thinking lately, please contact us for a strategy discussion on how to sell your current home and find your next one successfully at the same time.
NEWS YOU CAN USE:
First, a re-print of a section of Supervisor Ken Yaeger’s newsletter this month, regarding CalTrain:
CALTRAIN ADDS EXTRA CARS ON MAY 11
In my 14 years as a member of the Caltrain Board of Directors, I have always strived to maximize ridership while ensuring that passengers have a safe, comfortable ride. Caltrain is now more popular than ever, with more than 61,000 average weekday riders during the peak season. In response to this growing demand, Caltrain is adding an extra car to all Bombardier train sets currently in operation beginning Monday, May 11.
Caltrain has experienced significant increases in monthly ridership over the past four years, putting pressure on the available capacity of its train sets. In response to overcrowding on many of its peak hour trains, the Caltrain Board voted to purchase 16 used rail cars earlier this year. After four of those cars were put into service for testing, the remaining twelve will be deployed on Monday.
The extra cars will each provide an additional 150 seats and increased standing room. The six-car trains will be assigned to the most popular schedules, and will run during all times of the day. These additions will prove particularly valuable during the peak hour commute, when trains are often at or near maximum capacity. More information and a list of schedules can be found at http://tinyurl.com/Caltrain-Six-Car-Trains.
Caltrain is also converting a number of the new cars to accommodate onboard bicycle storage. Following the completion of this project, Caltrain will add a third bike car to all the Bombardier train sets. This will provide each train set with space for 72 bikes, allowing more riders to use Caltrain as a means of mixed-mode commuting.
Next, here is a local legislative initiative we’ve been following about mandatory conversion of wood-burning fireplaces to gas: the Bay Area Air Quality Management District (BAAQMD) has recently proposed a regulation that states real estate property may not be sold or transferred if it includes an uncertified wood burning device, generally speaking a fireplace or wood stove. This point of sale regulation would require the seller to assume the full cost of decommissioning the uncertified fireplace or replace it with gas-fueled, electric, or EPA certified devices. This places a burdensome requirement on home owners, and it would take over 40 years to have the housing stock turn over to fully implement this proposal.
The Santa Clara County Assoc. of Realtors has taken up the cause of fighting this initiative, and we will have more updates soon.
The housing inventory for single family homes in Santa Clara County in March 2015:
New listings: 1337
# of closed sales: 850
Avg. days on market: 24
Avg. sale price: $1,287,277
Condos and townhouses:
New listings: 438
# of closed sales: 344
Avg. days on market: 20
Avg. sale price: $661,296
We have almost 15 year of experience in real estate in Silicon Valley, coupled with Nick’s legal background and Barbara’s expertise in marketing. We depend on the goodwill of our clients, and we are never too busy for your referrals. Please tell your friends about our thoughtful, value-added, and personal attention approach to real estate representation.
We’ll be back next month or so, with another Real Estate Update.