Community Corner January 2020

In Brief January 2020

  • On New Years Day I went for  a local hike. When  you walk around your neighborhood I am certain you will see some of natures most beautiful creations.
  • Take a walking tour of Pasadena.
  • Local Elections are just around the corner, don't miss an opportunity to Vote for Glendale School Boage and Glendale College Board.
  • ADU it's the abbreviation on the street today. Accessory Dwelling Unit. Learn more about them.
  • German Shepherd Rescue..Need I say more!
  • 2020 Real Estate what's the forecast.Read all the details below and visit the links for even more details.

This Months Video

All the Details

Community Corner January 2020

Glendale Votes School Board and  College Board
Get to know your local candidates. Glendale Unified School District and Glendale Community college will be voting and selecting by District for the first time. District A residents include the Foothills, Montrose, and the far northern section of Glendale. Elections are the same day as this year’s primary, March 3rd.

I wanted to focus on an exceptional candidate running for GUSD. Joy McCreary is “home Grown” for lack of a better word. Joy not only grew up in the Foothills, the Sagebrush area of La Canada, but she was an exceptional student and is now a teacher herself. Joy brings a perspective we have not seen run for School Board in a long time, if ever. She is young, smart, local, and has a clear understanding of the obstacles students as well as parents face today.

You can learn more about Joy on her Facebook Page, https://www.facebook.com/joymccrearyforgusd

To learn more about the Glendale School Board and Glendale College elections and vote by mail deadlines visit the following site, https://www.glendalevotes.org/

 

Want to rescue or help care for a dog!!
The “German Shepherd Rescue.” German Shepherds, one of my all-time favorite Dogs. I grew up with 3 of them. I just don’t have the time or the yard to have a German Shepheard now. However, I am planning on volunteering at their rescue this year. Here is their site if you want to help as well. Don’t have the time to volunteer you can always go on their site and see what supplies they may need. http://www.sheprescue.org/index.html

You can also follow them on Facebook https://www.facebook.com/WGSRescue/


Accessory Dwelling Units:

What is and ADU and what laws have been put in place regarding Accessory dwelling units coming into effect in 2020.
Group of three laws removes impediments to ADU construction by restricting local jurisdictions’ permitting criteria

The production of ADUs is recognized as an important strategy in the effort to reduce the overall cost of housing in California. Despite this, local jurisdictions continue to thwart their construction in a variety of ways. Some cities have rejected garages as existing, convertible structures. In others, like Santa Monica, converting a garage to an ADU triggers a requirement to replace the lost parking spaces somewhere else on the property. Other cities have required those who want to build ADUs to live on the property, which has made lenders wary of financing the projects because the owner-occupancy requirement is embodied in a permanent deed restriction.

These three laws remove potential impediments to their construction in three ways: by limiting the criteria by which local jurisdictions can limit where ADUs are permitted; by clarifying that ADUs must be magisterially approved if constructed in any existing space; and by eliminating for five years the potential for local agencies to place owner occupancy requirements on the units. These bills reduce barriers to ADU approval and construction, which will increase production of these low-cost, energy-efficient units and add to California’s affordable housing supply.

  • Assembly Bill68makes major changes to facilitate the development of more ADUs and address barriers to building. It expands the categories of ADUs that cities must approve without applying any local development standards to include an 800 square foot detached ADU. The bill also requires cities to allow “junior ADUs,” which in some instances can be developed in addition to a conventional ADU.
  • Assembly Bill 881removes impediments to ADU construction by restricting local jurisdictions’ permitting criteria, clarifying that ADUs must receive streamlined approval if constructed in existing spaces and eliminating minimum lot size requirements. It also prohibits jurisdictions from establishing a maximum square footage requirement for an ADU that is less than 850 square feet, or 1,000 square feet if the ADU contains more than one bedroom. This will allow future ADUs in various cities to be a few hundred feet larger.
  • Senate Bill13eliminateslocal agencies’ ability to require owner-occupancy for five years and eliminates impact fees for ADUs under 750 square feet. For larger ADUs, it creates a tiered fee structure based on size. The Billalso addresses other barriers by shortening the application approval timeframe, creating an avenue to get unpermitted ADUs up to code, and enhancing an enforcement mechanism allowing the state to ensure that localities are following ADU statutes.

Effective January 1, 2020.

The Californians for Homeownership have prepared a summary sheet highlighting the most important provision of the new ADU related laws.

 

Explore Pasadena Walking Tour

Wednesday, January 8, 2020 to Wednesday, January 29, 2020

Presented by: Pasadena Walking Tours

Tours begin at City Hall
100 Garfield Avenue
Pasadena, CA 91101

626.349.9651
www.pasadenawalkingtours.com

Adults $25; Children (5-12) $10
Pasadena Walking Tours regularly hosts informative strolls through Old Pasadena, offering tidbits on its history as an agricultural citrus-growing community, its architecture, and its worldwide fame as the home of the best-known New Year's Day celebration - the Tournament of Roses Parade. Beyond the festivals, flowers, and tree-lined streets, prepare to learn more about the Crown City at the base of the foothills, fascinating every day of the year.

Tours last two hours and cover approximately 1.5 miles. Purchase tickets or reserve your space on-line.

Real Estate in 2020
This year has started off like a rocket. So many great client and wonderful properties getting ready to be placed on the market. How can I help you this year? Remember sometimes getting ready to buy or sell starts with a conversation and questions. Preparing and understanding is critical to having a successful transaction.

Weather you are ready now or need some guidance to make some important real estate decisions I am prepared to help you any way I can.

2020 Outlook: Real Estate Market Forecast

We’re in the midst of the longest economic expansion in U.S. history, and economists think there’s still room to grow. A recent survey by the National Association for Business Economics found that experts believe the U.S. economy will remain positive throughout 2020.1

Still, given that recessions are a natural (and necessary) part of a business cycle, we know this period of growth will inevitably end. So you may be wondering … how will an eventual recession impact the real estate market?

Many Americans assume a recession would lead to a decline in housing prices like we saw during the Great Recession of 2008. But the real estate market crash we experienced wasn’t typical. In fact, the last recession wasn’t typical at all. It was the worst economic downturn since the Great Depression of the 1930s.

ATTOM Data Solutions analyzed real estate prices during the last five recessions and found that, in the majority of cases, home prices actually went up. Only twice (in 1990 and 2008) did prices decline, and in 1990 it was by less than one percent.2

So what can historical precedent—combined with today’s data—tell us about the future of real estate? Here’s where experts predict the housing market is headed in 2020 and beyond.

HOME PRICES WILL KEEP RISING

Economists predict U.S. housing prices will continue to rise, regardless of a recession. In fact, property data firm CoreLogic forecasts a faster rate of growth for home prices in 2020 than we saw in 2019, with the biggest gains at the lower end of the market.3

Arch MI Chief Economist Ralph DeFranco expects entry-level home prices to increase faster than incomes this year, making it even more difficult for many first-time buyers to afford to enter the market.4

“Low interest rates and a shortage of starter homes will continue to push up prices,” predicts DeFranco. “This is especially the case for lower price points, since builders have tended to focus on more expensive, higher-profit houses and less on replenishing low inventories of entry-level homes.”4

“Real estate is on firm ground with little chance of price declines,” said National Association of Realtors Chief Economist Lawrence Yun. "However, in order for the market to be healthier, more supply is needed to assure home prices as well as rents do not consistently outgrow income gains.”5

What does it mean for you? If you have the ability and desire to buy a home now, don’t let a fear of recession or falling prices hold you in limbo. Economists expect home values, as well as rent prices, to continue rising. So you’ll likely pay more the longer you wait.

INVENTORY CONSTRAINTS WILL CONTINUE

According to Redfin, Americans are staying in their homes longer. In 2019, the average homeowner had resided in their home for 13 years, up from just eight years in 2010. That means there are fewer homes available today for those who want to buy.6

It’s possible that an increase in new construction could offer some relief. The National Association of Realtors (NAR) expects single-family housing starts to total one million this year, the highest level since 2007. And NAR Chief Economist Lawrence Yun predicts the average price of new construction will decline slightly as builders shift to building smaller, more affordable homes.7

However, these efforts may not be enough to meet current demand. “Despite improvements to new construction and short waves of sellers, next year will once again fail to bring a solution to the inventory shortage,” predicts Realtor.com Senior Economist George Ratiu. “In 2020, we expect inventory to struggle to grow and could instead reach a historic low level.”8

What does it mean for you? If you’re looking to buy a starter home, be prepared to compete for the best listings. Start your search early, and if you’re up against a deadline (like a new baby), build in plenty of time to find the right home. We can help you assess your options, including new construction and up-and-coming developments.

MORTGAGE RATES WILL REMAIN LOW

Mortgage rates have declined more than a full percentage point since November 2018, when they hit a recent peak of 4.94%.9 The Mortgage Bankers Association predicts rates will remain low, at around 3.7%, through mid-2021.10

While it may not seem significant, on a $200,000 30-year fixed-rate mortgage, that lower rate means buyers could save around $145 on their monthly payment and more than $52,000 over the life of their mortgage. Lower mortgage rates make homeownership more accessible and affordable for buyers.

Although economists expect mortgage rates to stay low, they caution against waiting to act. Economic factors shifts in supply and demand, or unforeseen impacts of the November election could cause rates to rise unexpectedly. “We recommend borrowers with long-term plans of staying in their homes to lock in a low rate now because there’s no telling how long these low rates will last,” warns Preetam Purohit, a capital markets trader at Embrace Home Loans.11

What does it mean for you? If you’re looking to buy a home, act soon to lock in a historically low mortgage rate. It will minimize your monthly payment and could save you a bundle over the long term. And if you plan to stay in your current home for a while, consider whether it makes sense to refinance your mortgage at today’s lower rates.

MILLENNIALS WILL DRIVE THE MARKET

Millennials are expected to account for more than half of all mortgages this year, outnumbering Generation X and Baby Boomers combined. It’s not surprising, considering their age and stage of life. In 2020, the largest cohort of millennials will turn 30, and the oldest millennials will turn 39.8

"Family changes tend to drive home-buying decisions," explains Realtor.com Chief Economist Danielle Hale. "Millennials are going to be active in the housing market not just because they're just at the age when they're thinking about becoming first-time home buyers, but they're also in the age range when they're having kids."12

Younger millennials flocked to urban centers that offered easy access to work, shopping, and restaurants. But high prices, lack of square footage, and subpar schools are driving millennials out to the suburbs as they begin to marry and expand their families.

In response, a new model for suburban living has emerged. “Hipsturbias,” or mixed-use communities that bring the live/work/play concept to the suburbs, were recently named one of the top real estate trends for 2020 by the Urban Land Institute.4

What does it mean for you? If you’re a millennial who has been priced out of urban living or is looking for more space for your growing family, a number of suburbs in our area have a lot to offer. We can point you towards the communities that will best meet your needs. And if you’re a homeowner with plans to sell, give us a call. We know how to market your home to millennials … and can help you sell quickly for top dollar by appealing to this leading market segment!

HERE TO GUIDE YOU

While national real estate numbers can provide a “big picture” outlook, real estate is local. As a local market expert, I can guide you through the ins and outs of our market and the issues most likely to impact sales and home values in your particular neighborhood.

If you’re considering buying or selling a home in 2020, lets work together to develop an action plan to meet your real estate goals this year.

 

START PREPARING TODAY

If you plan to BUY this year:

 

  1. Get pre-approved for a mortgage. If you plan to finance part of your home purchase, getting pre-approved for a mortgage will give you a jump-start on the paperwork and provide an advantage over other buyers in a competitive market. The added bonus: you will find out how much you can afford to borrow and budget accordingly.
  2. Create your wish list. How many bedrooms and bathrooms do you need? How far are you willing to commute to work? What’s most important to you in a home? We can set up a customized search that meets your criteria to help you find the perfect home for you.
  3. Come to our office. The buying process can be tricky. We’d love to guide you through it. We can help you find a home that fits your needs and budget, all at no cost to you. Give us a call to schedule an appointment today!

 

If you plan to SELL this year:

 

  1. Call us for a FREE Comparative Market Analysis. A CMA not only gives you the current market value of your home, it will also show how your home compares to others in the area. This will help us determine which repairs and upgrades may be required to get top dollar for your property, and it will help us price your home correctly once you’re ready to list.
  2. Prep your home for the market. Most buyers want a home they can move into right away, without having to make extensive repairs and upgrades. We can help you determine which ones are worth the time and expense to deliver maximum results.
  3. Start decluttering. Help your buyers see themselves in your home by packing up personal items and things you don’t use regularly and storing them in an attic or storage locker. This will make your home appear larger, make it easier to stage ... and get you one step closer to moving when the time comes!

 

Sources:

  1. NBC News -
    https://www.nbcnews.com/business/economy/what-impending-recession-new-survey-shows-most-people-think-they-n1098511
  2. Curbed -
    https://www.curbed.com/2019/1/10/18139601/recession-impact-housing-market-interest-rates
  3. HousingWire -
    https://www.housingwire.com/articles/corelogic-expects-home-prices-to-do-this-in-the-next-12-months/
  4. Forbes -
    https://www.forbes.com/sites/alyyale/2019/11/15/2020-housing-outlook-expert-predictions-for-mortgage-rates-home-prices-tech-and-more/#343ea4522935
  5. National Association of Realtors -
    https://www.nar.realtor/newsroom/expect-continued-economic-growth-slower-real-estate-price-gains-and-small-chance-for-recession-in
  6. Redfin -
    https://www.redfin.com/blog/homeowners-staying-in-their-homes-longer/
  7. HousingWire -
    https://www.housingwire.com/articles/builders-are-coming-to-the-housing-markets-rescue/
  8. com -
    https://www.realtor.com/research/2020-national-housing-forecast/
  9. YCharts -
    https://ycharts.com/indicators/30_year_mortgage_rate
  10. MBA Mortgage Market Forecast November 2019 -
    https://www.mba.org/news-research-and-resources/research-and-economics/forecasts-and-commentary
  11. Dallas Morning News -
    https://www.dallasnews.com/sponsored/real-estate/2019/11/23/experts-predict-where-mortgage-interest-rates-land-in-2020/
  12. com -
    https://www.realtor.com/news/trends/biggest-changes-coming-in-2020-real-estate-and-tips-for-buyers-and-sellers/

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