This Week in Real Estate 4-24-2015 - Economy slowing?

Warning of a slowing economy.

In the past 4 weeks we have seen weak jobs reports. Interest rates in Europe are near zero on their long term bonds (our 10 year bonds are about 2%). China has posted concerns in their growth and real estate market as well. We are all in a global economy and the US has been the shining star for the last 2-3 years.

But this week, U.S. stocks ended lower on Wednesday as the Federal Reserve cited weakness in the U.S. economy and data showed U.S. growth slowed more sharply than expected in the first quarter.

But the Fed's acknowledgement of weakness in some sectors of the economy makes it more likely it will not be ready to raise the short term rate until at least September, which kept stocks from falling further.

"We all know the Fed would love to start normalizing rates, but the simple fact is, the data does not warrant that action right now," said Wayne Kaufman, chief market analyst at Phoenix Financial Services in New York.

So the KEY point to get from this latest information:

·         Interest rates are likely to stay in the range we have seen this year (3.75-4.25%) until at least the fall. That is good news for the busy summer real estate season.

·         The US Economy is weaker, but relative to the others in the global arena we are STILL the shining star

·         The Federal Reserve wants to raise interest rates, but will not do so at the expense of the overall economy.

Home Tip of the Week.

Plant your own modern victory garden.

I have a 5 year old so this is about getting our own delicious carrots, snap peas and tomatoes. But it is a great way to help your home’s value as well. A gardening spot, is a big plus in the landscaping for homes today.

Here are a couple of links to how to build planter boxes and starting your own back yard garden.

https://www.youtube.com/watch?v=B--i7Cv8ffA

https://www.youtube.com/watch?v=lKIAoKHkss0

This Week in Real Estate 4-17-2015 - All Quiet

A quiet week on the news front.

This week there was a weaker than expected jobs report, but that goes against the trend of the 1^st quarter. So we will need to keep an eye on the next report to see.

Interest rates are still very low and the detailed minutes of the Federal Reserve meeting showed that some of the board was pushing for the rate increases to be postponed.

Home Tip of the Week.

Keeping your home browner. Yes brown is the new green in our drought. Gov. Brown has mandated a 25% reduction in water.

http://www.waterboards.ca.gov/waterrights/water_issues/programs/drought/emergency_regulations_waterconservation.shtml

#1. Fix all leaky/dripping items. A leaky toilet or dripping faucet can waste over 10,000 gallons a year!

#2. Get water conserving devices. Low flow shower heads, hose nozzles, and more are FREE at the Napa water board.

#3. Reduce your outdoor watering. Letting your lawn be a little brown is ok. But look to replace your landscaping with drought tolerant plants. Instead of spray irrigation also consider drip or other more efficient methods.

#4. Change your habits. Running water while brushing your teeth for 2 minutes can waste over 5 gallons each time. 10 gallons per day per person in your home adds up very quickly.

Here are 100+ other ways to conserve that don’t include “if it is YELLOW, let it MELLOW. If it is BROWN, flush it DOWN”

http://wateruseitwisely.com/100-ways-to-conserve/

This Week in Real Estate - 4-10-2015 - Where are we going?

Where are we going?

The second most common question I get is “where do you see the market going? How much will prices improve, if any over the next few years?”

As a conservative prognosticator I have the view of slowed minimal growth, but recently a company surveyed over 100 economists with various financial interests and stakes in the recovery and here are the results.

To project the future you need to look at the past, current trends, and factors that influence the future (interest rates, jobs growth, health of the overall economy …) Going back about 30 years to 1987 the mean(average) growth was 3.6% per year until 1999 the beginning of the housing boom. For our long term trend we will use this growth as a base figure for comparison purposes.

For a complete report you can visit.

https://www.pulsenomics.com/Q1_2015_HPE_Survey.php

Home Tip of the Week.

I don’t know about you but my allergies this past week have been high. Pollen anyone? So this week I went on my mission to make things better in my home and did a little research to find out how to make my house better for my allergies.

The Mayo Clinic has some great suggestions. (some a little extreme)

·         Temperature and humidity. Hot, humid houses are breeding grounds for dust mites and mold. Maintain temperature between 68 F (20 C) and 72 F (22 C) and keep relative humidity no higher than 50 percent. Clean or replace small-particle filters in central heating and cooling systems and in room air conditioners at least once a month.

·         Pests. Control cockroaches and mice with inexpensive traps from the hardware store. If that's not effective, hire a professional exterminator. To remove allergy-triggering insect and mouse residue, thoroughly vacuum carpeting and wash hard surfaces. To prevent re-infestation, seal cracks or other possible entryways.

·         Mold. Close doors and windows during warm weather and use air conditioning and dehumidifiers. Remove nonwashable contaminated materials such as carpeting. Clean washable material with a solution of 5 percent chlorine bleach and wear a protective mask when cleaning away mold. Check the roof and ceilings for water leaks.

·         Weekly cleaning routine. Damp-mop wood or linoleum flooring and vacuum carpeting. Use a vacuum cleaner with a small-particle or a high-efficiency particulate air (HEPA) filter. Use a damp cloth to clean other surfaces, including the tops of doors, windowsills and window frames. If you have allergies, either wear a dust mask or get someone who doesn't have allergies to do this job. Change or clean heating and cooling system filters once a month.

·         Smoking. Don't allow smoking anywhere inside your house.

For the full list here is the link.

http://www.mayoclinic.org/diseases-conditions/allergies/in-depth/allergy/art-20049365

This Week in Real Estate 4-3-2015 - Are we back?

Are we back?

I get the question all the time. Has the market recovered to the peak yet? Are we above the prices of 2006/2007? Well even with the amazing recovery we have experienced. NO.

The latest Case Shiller report for January 2015 released this week shows that we are still below the peak. One key thing to note is that of the 20 major metros measured for San Francisco Metro showed the largest month to month decline. But we are still trending high on the year to year increase. The monthly decline is NOT a signal of a trend of a declining market, more to the trend of a slowing of growth.

City	Monthly gain (%)	Yearly gain (%)
Atlanta	-0.2	4.9
Boston	0.4	4.7
Charlotte	0.7	4.3
Chicago	-0.2	2.5
Cleveland	-0.1	1.6
Dallas	0.4	8.1
Denver	0.2	8.4
Detroit	-0.3	2.9
Las Vegas	0.2	5.9
Los Angeles	-0.2	5.7
Miami	0.7	8.3
Minneapolis	-0.3	2.2
New York	0.2	2.1
Phoenix	0	2.6
Portland	0.1	7.2
San Diego	0.7	5.1
San Francisco	-0.9	7.9
Seattle	-0.5	6.8
Tampa	-0.3	5.7
Washington	-0.5	1.3

If we look at our trend from the Peak.

Home Tip of the Week.

Spring cleaning can include decluttering. Some great tips to get things decluttered are below, but the BIGGEST tip is to start SLOWLY and small. Not one room at a time but one Bin, Cabinet or Closet at a time. It is the old adage “how do you eat an elephant? One bite at a time?”

Simply your rooms.

If your rooms are too cluttered, you’ll want to simplify them.  Start by clearing off anything that is on the floors.  Throw out or donate unused things.  After clearing the floor, move to flat surfaces such as countertops, shelves, tops of dressers, etc.  Clear them as much as possible, and then move onto furniture.  Consider if you need everything.  Sort things in piles – toss, donate, or keep. Organize everything that you’ve decided to keep into drawers, cabinets, and closets, keeping them out of sight, but still neatly organized and uncluttered. Do this one room at a time.

Tackle the closets. Closets are a great place to store things that you don’t want out in the open, and can easily become a place where you shove things just to keep them out of view.  Go through your closets – take everything out and clean it. Now toss or donate as much as you can.  Decided a specific place to store anything you decide to keep. A place for everything and everything in its place. Keep only the things that you love and use frequently.  As for your clothes, get rid of anything that you haven’t worn in six months.

Clean out your drawers. Drawers are prime place for things to get shoved into.  Empty out your drawers, and again sorting by whether you’re keeping, tossing, or donating the items.