Last May, the Brookings Institution wrote about the post-Covid19 recovery as having several possible shapes of recovery (Z-shaped, V-shaped, U-shaped, W-shaped, L-shaped, and even the Nike Swoosh) but here are four major financial institutions predictions for recovery (below image).
In a Realtor.com study- we have seen a similar V-Shape recovery, but recently there’s been a deceleration as potential sellers found it harder to list and show their home as wildfires spread through the West coast.
Housing Market Recovery Index Highlights – Week Ending September 12
California has shown that social distancing and economic resilience continue to be key factors driving local differences in the housing recovery. Per Realtor.com’s research, the spread of COVID-19 is closely linked to the housing slowdown, with markets with higher cases per capita more likely to see a bigger impact on supply and the pace of sales. The speed and sustainability of the reopening, and each market’s ability to contain COVID-19, are dictating the speed of recovery across the regions. Finally, resilient economies may have an edge in the housing recovery, and areas with strong job markets before COVID-19, especially those with thriving tech sectors (such as in the SF Bay Area), are seeing buyers and sellers reconnect faster than the rest of the country.
Below are the V-shaped curved found in the northern California communities. Notice the downward trend in Aug – Sept due to the numerous wildfires.
The higher the index value, the higher the level of recovery. The lower the index value, the lower the level of recovery.
Thank you to the brave California Fire Department for coordinating a fantastic job containing many of the fires in California, we applaud their heroic service as many sacrificed their time, energy away from their families to protect people and properties throughout California.
How is your family and how are you handling the aftermath of the fires? I hope you and your family are doing well, but just know that it has effected everyone. It’s been a very rough few weeks here in northern California and the housing market certainly has been effected by the enormity and tragedies around us. Be safe & let me know if there’s anything we can do to assist.
|Lynne Watanabe MacFarlane, MCDM, SRES | Realtor
PFAC Silicon Valley affiliate
Intero | A Berkshire Hathaway Affiliate
In recent years co-living has gained popularity not only in younger 20’s demographics, but attracting popularity for 50+ Boomer generation. Typically, seniors who opt for the co-living lifestyle as homeowners enjoy additional income from roommates and companionship!
What’s the difference between Co-Living versus Co-Housing?
In co-living people without family ties choose to cohabitate in a single dwelling. Typically, each resident has a private bedroom but other rooms (such as kitchen, laundry room, family room) are considered shared common spaces. In a co-housing community, each individual or family has an independent living unit (single family home, condo or apt) and they might share common facilities such as pools, a library, conference or fitness space.
In the SF Bay Area we know that the lack of affordable housing is difficult as it can hit the senior population hard. As the ‘Silver Tsunami’ and senior households continues to expand over the next two decades, households in their 80’s will be the fastest-growing age group according to the Joint Center for Housing Studies of Harvard University. Many of those households already face cost burdens.
As the cost of senior communities continue to rise, along with visitation restrictions which COVID19 has placed on family members not being allowed into these senior communities, the desire for multi-generational housing continues to escalate. These are hard questions all families must decided what is important to them. Families are looking for more options as our lifestyle has shifted during these stressful health crisis times our community and family interdependence has become of greater necessity.
What are Co-Living Advantages?
- Sharing household responsibilities can lessen the load and housemates can have complimentary benefits such as one roommate’s ability to drive to the store and another can prep food and cook. This might allow individuals to live independent and active lives.
- Fewer seniors own their own homes these days, more are likely to have a mortgage or even a second mortgage. Co-living can help homeowners afford to stay in their home but creating passive income with rent. Sharing space means dividing up utility costs and home maintenance expenses too.
- Loneliness is one aspect of aging-in-place that co-living can help remedy. A sense of belonging and community can be nurtured with scheduled co-living events such as “Italian Night!” and plan cooking a dinner while playing Italian opera and watch a favorite Italian movie!
Preventing Co-Living Conflicts
Create a written agreement outlining who pays for what and when. Housemates with declining cognitive abilities and/or mobility issues can make living together difficult so a mutually agreed upon rental contract will help avoid co-living conflicts.
Make sure to interview to find the right fit housemate. Look for someone who is financially stable, and shares your interest, values and lifestyle. Always discuss privacy expectations and do consider looking outside an age range. When meeting with a prospective roommate for the first time, always meet in a neutral public location for safety reasons. Get references from previous roommates and consider a background check and credit check; protect oneself.
Consider a trial period and see if all personalities get along! Will pets or habits become irritating after two weeks? Will you need to consider ‘overnight guests’ and does each roommate need to seek permission and could this be considered an invasion of privacy for some? Some people need more privacy than others and having a written agreement can help communication and expectation.
It can be a wonderful experience co-living with others. Co-living can be multi-generational or the same age, but whatever one decides to do I hope you’ll enjoy the company and appreciate your differences!
If you’re interested in other cities, let me know, I can set-up your customized search to assist your needs.
Lynne Watanabe MacFarlane, MCDM, SRES | Realtor
PFAC Silicon Valley affiliate
Intero | A Berkshire Hathaway Affiliate
Here’s my latest vlog post – I hope you and your family are doing well, staying healthy.
One of the first trends that became evident when quarantines began was the large number of young professionals who had gone home to wait out the virus with their parents. Having left the cities where they work and return to their hometowns, many of these young people may not go back. If the work-from-home situation continues – or if their jobs are eliminated – they might find themselves moving back home for good. This may be one of the factors to my discussion here on this post.
As the quarantine lifts, what are the potential market shifts and migration patterns in the SF Bay Area will we see?
Let me know if you or someone you know is interested in making a change (moving to a bigger home with more office space, multi-generational living, layout changes, bigger garden or fresher outside living at the oceanside.) I’m always here to help you make informed, knowledge-based decisions in the shifting markets!
There is a record nine year high in the number of homes on the market in S.F. as it continues to represent 60% more inventory than at the same time last year and 110% more inventory than in 2015 (according to http://socketsite.com/archives/2020/06/most-homes-on-the-market-in-san-francisco-in-nine-years.html)
Experimenting with 360 images of my open house at
2348 Susan Drive Santa Clara
Friday June 7th from 9AM – 1PM and Sunday June 9th from 1PM – 4PM.
If you can’t make it in person, why not try selecting a one of the images below. Experience with Oculus or Google Cardboard, it’s almost like being there!
Join me! OPEN HOUSE this Saturday May 4th!
Location: 2189 Hogan Drive, Santa Clara 95054
Time: 1:30 – 4:30 PM
Charming patio loft and outdoor living – Centrally located to all tech companies
2 outdoor patios, 1 rooftop loft overlooking palm trees, cathedral high bedroom ceiling. It’s your own sanctuary you’ll call home.
Bedrooms: 1 | Bathrooms: 1/1
Square Feet: 961 SQFT | Lot Size: 892 SQFT
This 1BD/1.5 BA home features an enclosed garage and a parking space. It’s centrally located, right where all the entertainment will be for Levi Stadium, Mercado Theaters, Rivermark and the future CityPlace development (north of Levi’s Stadium). Green are bike routes, making multi-modal transportation accessible for all.
May The 4th Be With You – Stormtrooper cupcakes
U.S. house prices rose 1.1 percent in the fourth quarter of 2018 according to the Federal Housing Finance Agency (FHFA) House Price Index (HPI). House prices rose 5.7 percent from the fourth quarter of 2017 to the fourth quarter of 2018. FHFA’s seasonally adjusted monthly index for December was up 0.3 percent from November.
“House prices rose throughout 2018 but at a slower rate than in recent years,” said Dr. William Doerner, Supervisory Economist. “In the fourth quarter, house price appreciation hit one of the lowest levels in the past four years.”
FHFA House Price Index video shows how interest rate increases impact house price appreciation. Dr. Doerner explains in this video highlight of the fourth quarter.
- Home prices rose in all 50 states and the District of Columbia between the fourth quarters of 2017 and 2018. The top five areas in annual appreciation were: 1) Idaho 11.9 percent; 2) Nevada 11.2 percent; 3) Utah 9.8 percent; 4) Georgia 8.2 percent; and 5) Arizona 8.2 percent. The areas showing the smallest annual appreciation were: 1) North Dakota 0.0 percent; 2) Connecticut 0.9 percent; 3) West Virginia 1.6 percent; 4) Louisiana 1.8 percent; and 5) Oklahoma 2.0 percent.
- Home prices rose in 98 of the 100 largest metropolitan areas in the U.S. over the last four quarters. Annual price increases were greatest in San Francisco-San Mateo Redwood City, CA (MSAD), where prices increased by 17.0 percent. Prices were weakest in Urban Honolulu, HI, where they fell by 2.0 percent.
- Of the nine census divisions, the Mountain division experienced the strongest four quarter appreciation, posting an 8.1 percent gain between the fourth quarters of 2017 and 2018 and a 1.6 percent increase in the fourth quarter of 2018. Annual house price appreciation was weakest in the West South Central division, where prices rose by 4.3 percent between the fourth quarters of 2017 and 2018.
In terms home price appreciation, Silicon Valley is preforming at a strong rate. There are two metropolitan locations in California that took the highest home price appreciation, San Francisco – San Mateo – Redwood City (the Mid-Peninsula) and San Jose – Sunnyvale – Santa Clara (the South Bay).
FHFA 4Q report here.
If you’re making plans to move and relocate to another part of the country you will want to be knowledgeable about your housing price appreciation of your future home. Feel free to call me to discuss relocation possibilities, I can assist you locally and nationally.
As locals in Silicon Valley we can’t help notice all the cranes, increased traffic and new construction going on everywhere around us. What is going on?! We’re about to experience a new age in the changing landscape in San Jose / Santa Clara as Silicon Valley makes way to retain its reputation and dominance as the global powerhouse of innovative technology. South Bay cities, Santa Clara and San Jose, are positioning to attract future talent from a national and international talent pool as both cities resolve their contentious differences and now creating new commercial buildings for mixed-use development to attract more tech companies and places to live, dine and entertain.
CityPlace, a six and a half billion dollar development next to Levi Stadium in Santa Clara is a multi-phased, mixed-use development of up to 9.16 million gross square feet. It will be the hub of Santa Clara consisting of office buildings, retail, entertainment facilities, residential units, hotel rooms, surface and structured parking facilities, new open space and roads, landscaping and tree replacement, and new, upgraded, expanded infrastructure and utilities. Oh, is that all? Watch out Los Angeles and San Francisco, looks like we’re about to compete and have world class entertainment, its about time too! (More on CityPlace here)
CityPlace will be a 240 acre project site from Parks/Open Space and Regional Commercial to Urban Center/Entertainment District.
The city of San Jose promises to pay sixteen million in traffic improvement related to the project in Santa Clara. Monies will not come from the general fund but by developer fees. San Jose Mayor Sam Liccardo and Santa Clara Mayor Lisa Gillmor pledged to work together to find solutions related to traffic and affordable housing.
On the border of cities Santa Clara and San Jose is the new development called Santana West. The Santana West complex is across the street from Santana Row, a successful shopping, residential, dining commercial destination and is now planning on building a third commercial buildings totaling 1 million square feet. Two of the buildings would contain 350,000 square feet each, and the third would offer 300,000 square feet of office space. “Santana Row is a place, it’s a destination, it has an identity,” said Dave Sandlin, an executive vice president with Colliers International, a commercial real estate firm. “Tech companies want cool buildings, cool locations like this to make it easier to attract good employees.” said Steve Horton, a vice chairman with Cushman & Wakefield. (More here)
Fortunately for us nostalgic South Bay residents, the new Santana West construction will preserve one of the landmark domed movie theater that for decades has been a familiar sight on Winchester Boulevard. Here’s the story of Century 21’s former space-age, futuristic vision coming to pass.
Companies such as Splunk is betting on the success of Santana Row’s location to attract employees. Signing a long-term lease at 700 Santana Row, Splunk’s new building will feature seven levels of office area above ground floor retail, and a parking garage with approximately 1,300 spaces. (More information here)