Fremont Real Estate and Beyond

  Late  Monday  night in a surprise move a divided San Leandro City Council voted to expand their current rent review ordinance to include all residential rental properties including single-family detached homes and condominiums. The action was only the introduction of modifications to the ordinance. The changes will need final approval during the City Council meeting on  Monday, Dec 21 .

The city of Fremont just released a map with all the available public data.  You can look for land use, zoning, community plan areas, and schools. Check it out! http://egis.cofgis.opendata.arcgis.com/

The Federal Housing Administration (FHA) has announced the agency's new schedule of loan limits for 2016. These loan limits are effective for case numbers assigned on or after January 1, 2016, and will remain in effect through the end of the year. Due to changes in housing prices, the maximum loan limits for forward mortgages increased in 188 counties. There were no areas with a decrease in the maximum loan limits for forward mortgages. Each year, FHA recalculates its loan limits based on 115 percent of the median house price in the area. For counties, or equivalent, located in Metropolitan Statistical Areas (MSAs) the limit for all areas in the MSA is calculated based on the highest cost county. There is no change to the FHA national loan limit “ceiling” which remains at $625,500 and the “floor” which remains at $271,050. FHA’s minimum national loan limit “floor” is set at 65 percent of the national conforming loan limit of $417,000. The floor applies to those areas

CAR just released their October statistics for the entire state.  Select the county and all of their info for the month will pop up.

CAR released their October Stats for the entire state.

The California Association of Realtors posted their October market pulse.  I agree with a lot of their numbers...

The National Association of Realtors' chief economist just posted this video about his outlook and how the increase in mortgage rates will affect the market.

Redfin just released their automated home price estimates as a competitor to Zillow's "Zestimates". They claim its estimates have a median error of 1.96 percent for homes that are on the market and 6.23 percent for those that are not versus 7.9% at Zillow.  I'll play around with it and let you know my thoughts. More info here-- http://techcrunch.com/2015/12/03/redfin-launches-automated-home-price-estimates/

The City of San Leandro is forming a new advisory committee to help create a Transit-Oriented Development Plan for the area around the Bay Fair BART Station and Bayfair Center. This is a great opportunity for real estate professionals familiar with San Leandro to share their experience. City staff members anticipate the committee will meet four times beginning in January 2016. http://www.sanleandro.org/depts/cd/plan/bfflyer.asp

Lending Tree released interesting information about the down payments made nationally. The average down payment for conventional 30-year fixed rate purchase mortgage offers rose slightly in the third quarter to an average of 17.63 percent, up slightly from 17.34 percent in the prior quarter and 16.29 percent in Q3 2014. More info here-- https://www.lendingtree.com/press-release/us-down-payment-affordability-q3-2015

Google published a way to compare mortgages.  It's only for California, but will be expanding nationally if things go well. http://adwords.blogspot.com/2015/11/introducing-google-compare-for-us.html http://adwords.blogspot.com/2015/05/building-for-next-moment.html

NAR released some interesting statistics about the 2015 home buying trend--the need to purchase larger homes. http://economistsoutlook.blogs.realtor.org/2015/11/16/2015-home-buying-trend-purchasing-larger-homes/ One of the most fascinating is that in almost every region of the United States, we saw buyers trading up and buying bigger homes than last year. According to the new report, 42 percent of all buyers traded up in the size of their home, up from 40 percent in 2014. In the 2014 report, buyers reported that they were looking for homes similar in size at 31 percent compared to 29 percent in 2015. Regionally, the percentage of buyers looking for larger homes increased across the board.

NAR just released their profile of buyers in sellers in each subregion of the US. 2015 Profile of Home Buyers and Sellers in Subregions

SEC released guidelines for crowdfunding real estate transactions.  NAR's "Voice of Real Estate"(really cheesy video, I know) explains.  More details can be found here-- http://www.forbes.com/sites/navathwal/2015/10/30/the-secs-final-verdict-on-crowdfunding-and-how-it-impacts-you/  

The Consumer Financial Protection Bureau (CFPB) released a fantastic guide to getting a home loan as well as a quick and simplified checklist of things to do when you are in contract. Check it out! http://www.consumerfinance.gov/owning-a-home

Rent Control Update: A booming economy and lack of housing options has resulted in rising rents in many Bay Area communities and some East Bay cities are considering rent control ordinances. Last August, the City of Richmond adopted an ordinance limiting rent increases and the establishment of just-cause eviction. Late last week, in response to a petition from Richmond residents opposed to the new rent control policies, the City of Richmond repealed the ordinance. For more information please click here . Meanwhile, Fremont City Council member Vinnie Bacon has asked city staff to research rent control and just-cause eviction policies in Fremont. Fremont currently has a rent mediation ordinance similar to San Leandro's. Representatives from the Rental Housing Association and Bay East staff met with Fremont officials this week to discuss Council member Bacon's request and concerns from affordable housing advocates. Options may include beefing up the current mediation ordinance to

A really interesting article popped up in the Wall Street Journal citing that the number of first time home buyers in the market has fallen to 32% of all buyers.  This is a national analysis, so each region might see things differently. http://www.wsj.com/articles/number-of-first-time-home-buyers-falls-to-lowest-levels-in-three-decades-1446735604

I get a lot of inquiries and then complaints from buyers and sellers about inaccurate/old information posted on third party websites. The agreement between he National Association of Realtors and its wholly owned subsidiary, Realtors Property Resource, to sign a technology agreement with UPSTREAM aims to decrease/eliminate this issue.  UPSTREAM is a revolutionary industry-owned and controlled data management company which will develop a cross-industry, state-of-the-art platform for real estate data entry, collection, and distribution for real estate brokers. More info-- http://newsletter.rismedia.com/news/alert/21948/83234

I get asked all the time, where are all the bank owned properties (aka: REOs)? Unfortunately, banks knew they could recoup the bulk of their losses in California, but in other states it's not the same. http://www.realtytrac.com/news/foreclosure-trends/infographic-where-to-expect-an-influx-of-legacy-bank-owned-inventory/

A great article from Marketplace about how insurance companies aren't covering areas that are prone to fires and other disasters.

An interesting article from the Wall Street Journal saying Fannie Mae may do away with paystubs and would allow lenders to use employment and income information from a database maintained by credit bureau Equifax to verify borrowers’ ability to handle a loan, rather than relying on the traditional documentation process of collecting physical copies of pay stubs and tax data. The move is expected to make the mortgage process easier for borrowers and lenders alike. More info here-- http://www.wsj.com/articles/need-a-home-mortgage-fannie-says-forget-the-pay-stubs-1445333580

The National Association of Realtors is reporting that members of the House and HUD are trying to ease the very restrictive FHA requirements for purchasing condos with FHA. Highlights of the bill--  Ease FHA’s restrictions on the purchase and sale of condominiums.  The bill includes changes to the certification process, owner/occupancy ratio, commercial space requirements, and transfer fees.  NAR has been pushing FHA on these changes for more than 3 years.   Provide the Rural Housing Service with delegated endorsement for approved lenders.  NAR has been pushing for this provision for over a year, that will streamline the use of RHS loans and speed up processing times.   Provisions to preserve and expand affordable rental housing.  These provisions will reduce burdens for the owners and managers of these Section 8 properties and provide greater opportunities for low income tenants. More details are here-- http://www.realtor.org/articles/major-developments-on-condominiums?om_ri

The California Association of Realtors just released their raw September info. You can find all of the data here-- http://www.car.org/newsstand/newsreleases/2015releases/septemberhomesales# Highlights-- - Existing, single-family home sales totaled 425,030 in September on a seasonally adjusted annualized rate, down 1.5 percent from August but up 6.9 percent from September 2014. - Statewide sales were above the 400,000 mark for the sixth straight month. - September’s statewide median home price was $482,150, down 2.3 percent from August but up 4.3 percent from September 2014.

During the Fremont City Council meeting on Tuesday, Oct 13, Council member Vinnie Bacon asked Fremont staff to research options for implementation of rent control and just-cause eviction. After hearing testimony from both supporters and those urging the Council to consider other alternatives (including Bay East staff), the City Council directed City staff to look into rent control and just-cause eviction, and other voluntary options for landlords and tenants to resolve rent increase disputes. The Council did ask staff to consult with stakeholders including REALTORS® and property mangers as part of their research. Staff will be conducting stakeholder meetings in the next few weeks.

CAR Just released their 2016 Market Forecast, take a look at what they're predicting! 2016 California Economic & Market Forecast

Open house this weekend from 1-4pm, feel free to stop by and say hi!

CAR Just released their August data map for ALL of California.  It may take a little while to load, but you can see the sales data for all counties in California.

I got a question from a client asking what a 1031 Exchange was and thought I'd share with everyone else.  Per one of my vendors (IPX1031) who help me with these transactions-- 1031 Exchanges are an important strategic investment tool for many investors and businesses as the real estate investment market’s momentum continues to escalate. Following are key review points when considering a 1031 tax-deferred Exchange: 1031 Exchanges are used to defer taxes on investment real estate and personal property. Some personal property examples are business equipment, farm machinery, franchise rights, corporate jets, livestock, boats, trucks, fleets of autos, buses, race horses, artwork, collectibles, musical instruments, and distribution routes. 1031 Exchanges simply defer taxes. Section 1031 is not a tax loop hole or tax avoidance, but sound tax code that has been used for almost a century to promote the US economy. 1031 Exchanges allow taxpayers to defer capital gains tax, depreciat

Great video was created by the local MLS to let consumers know the difference between these 2 types of agents who help them in their home buying/selling process. 

A great map was published by the local MLS outlining details about communities throughout the East Bay including basic demographic information and local ordinances that impact real estate transactions and home ownership as well as contact information for key city departments.

Fannie and Freddie are usually a nebulous topic for most people.  An interesting interview came up today on Marketplace about Fannie and Freddie and how they are integral to the mortgages made today. U.S. mortgage giants under the microscope | Marketplace.org  

It's been a long road for TRID, which are the 2 new forms (Loan Estimate and Closing Disclosure) to replace the TILA, Good Faith Estimate, RESPA, and HUD-1.  This makes the facts about a person's loan more clear as well as the closing costs more accurate.  The closing disclosure also explains why there may be any differences in final expenses between what was mentioned in the loan estimate and what appears in the closing disclosure.  Video and samples of the paperwork are below.  

A really interesting survey just came out from CAR regarding home sales and why volume is so low.  This is all of California but some details about the Bay Area are parsed out. 2015 Home Owners Survey

Starting Sept. 14, HUD is including a mandate that instructs lenders to inform borrowers when they first meet to get a home inspection prior to purchasing a home. The mandate will be added to the HUD/Federal Housing Administration Single Family Policy Handbook and will include a document called "For Your Protection, Get a Home Inspection." HUD has asked the American Society of Home Inspectors to provide buyers with information about why they should get a home inspection, why the FHA does not guarantee the value or condition of a new home, and information on radon gas testing and other safety and health issues.

I mentioned earlier about PACE loans causing issues with home purchases being super liens. An announcement by the U.S. Department of Housing and Urban Development (HUD) that the Federal Housing Administration (FHA) will issue final guidance that will require Property Assessed Clean Energy (PACE) liens to be subordinate to FHA single-family first-mortgage financing: “C.A.R. provided input to HUD last week asking that PACE liens remain subordinate to FHA first mortgages, and we are pleased with HUD’s announced anticipated guidelines to do so,” said C.A.R. President Chris Kutzkey. “In aligning with the Federal Housing Finance Agency’s (FHFA) policy that prohibits Fannie Mae and Freddie Mac from buying mortgages or notes with PACE-type “super liens,” home buyers can more easily obtain FHA financing while supporting energy efficiency, and mortgage markets can remain secure.” PACE loans allow homeowners to build the costs for energy-efficiency upgrades, such as adding insulation and ins

County Sales & Price, July 2015

Speaking of solar panels, Google released Project Sunroof, which calculates how much energy your roof can produce if it had solar panels. Check it out! https://www.google.com/get/sunroof#

The City of Fremont, along with 3 other East Bay cities, is embarking upon implementation of SunShares, a community-wide solar bulk procurement program which we hope will make installation of residential solar both simple and more affordable than ever for homeowners. A similar program launched this spring on the Peninsula with almost 700 participants and is on track to install half a megawatt of solar in just 3 months! The East Bay SunShares program ( www.fremont.gov/sunshares ), will be available to both residents as well as anyone employed or doing business in Fremont but living elsewhere in the Bay Area. Program registration began August 3 and close mid-October, 2015 ( www.mygroupenergy.com/eastbaysunshares ). More info here-- http://www.fremont.gov/2295/East-Bay-SunShares