Market Matters: Try a Naked Room

A recent Pew Social & Demographic Trends survey: 78% of 25-34 year olds have lived with their parents and were satisfied with the arrangement. 

78%...

For all of you who are looking for some peace and quiet in your twilight years, you may want to consider taking up some kind of offensive hobby between now and then. For a uniquely offensive approach, try Terry Bradshaw, “In Failure to Launch”, a hilarious (old) movie where the parents retire and the Dad decides to convert his son’s old room to his “Naked Room”. Seeing Terry Bradshaw naked at 244 lbs would do it for me…I’d be sleeping at work.

But seriously, one boom to a housing recovery would be young adults moving out of their parents’ homes and starting their own households. But what if they don’t want to?

The recession has caused an increase in young adults living in multigenerational households. According to Census data analyzed by the Pew Research Center 21.6% of 25-34 year olds lived in such an arrangement in 2010, up from 11% in 1980. One argument for a coming rebound in home sales and construction has centered on those young adults being able to form their own households.

The recession has created financial barriers for younger Americans looking to start their own households, including high unemployment and debt. Recent improvements in the job market and overall economy have sparked hopes that those barriers are beginning to break down.

Ok, now for the scary part:

But that assumes 25-34 year olds want to go it alone. “If there’s supposed to be a stigma attached to living with mom and dad through one’s late twenties or early thirties, today’s ‘boomerang generation’ didn’t get that memo. Among the three-in-ten young adults ages 25 to 34 (29%) who’ve been in that situation during the rough economy of recent years, large majorities say they’re satisfied with their living arrangements (78%),” writes Kim Parker, senior researcher at the Pew Social & Demographic Trends.

Its hard to imagine who these kids are…hopefully, as much as we love them, not ours.

Western Bancorp

Katie Eichten is the SVP of Capital Markets at Western Bancorp (WBC). 

Silicon Valley Home Buyers: ‘Bigger Ain’t Necessarily Better, Baby’.

BY SPECIAL REPORT · DEADLINENEWS.COM © MARCH 2, 2012 

JULIE WYSS – From young, qualified first-time home buyers to 50-and-olders, moving up, over or down, a new breed of buyer is descending upon the Silicon Valley Housing market.

They’ve worked hard to save, they have solid jobs and they are qualified to buy big.

But offer them what they can really afford and they’ll give you the thumbs down.

They are the new financial conservatives.

They’d rather not be house poor.

They can afford much more, but they want less — less square footage, a smaller energy bill, fewer cleaning and maintenance headaches, but most importantly, less to pay out on the monthly mortgage.

They want a simpler, smaller American Dream.

It’s all about the “more” that comes with the “less.”

A smaller, less expensive home means more financial freedom in terms of more cash to save, more discretionary income to spend on nights out or travels away. A smaller home also means a smaller maintenance noose around your neck.

“Since new home prices peaked in 2007, new single-family sales of homes costing more than $500,000 have been more than cut in half, dropping from 13 percent to just 6 percent of all new home transactions,” said Rick Palacios Jr., senior research analysis of John Burns Real Estate Consulting.

“During this time, sales of home for under $200,000 have risen from 33 percent to 42 percent of transactions (nationwide). In fact, sales of homes priced under $300,000 now account for roughly 75 percent of all new single-family transactions. Of course, price declines and a shift to smaller homes played a role in this change, but consumer attitudes have shifted too. Our surveys and our consulting work show that today’s buyer is frequently very focused on affordability, and this broad macro theme will continue to play itself out in the new home space during 2012,” Palacios added.

A young couple in Silicon Valley with a combined income of $150,000 and top-notch credit can qualify for a mortgage with an debt-to-income ratio of up to 50 percent and their friends may be impressed, but the deal comes with a massive forever-property-tax-bill, uber cleaning and maintenance costs and yard upkeep from hell, not to mention massive energy bills.

Home buyers are wisely saying “no thanks” to that. “We don’t want house poor. We’d rather have extra money to enjoy life, travel, eat out and save a few bucks.”

That’s a decided change from boom times when buyers wanted the biggest, baddest, most expensive home money could buy.

It’s a lot like the change from the old fitness regimen of bulk and brawn to one of a more svelte approach for endurance.

Today’s economy demands a meaner, leaner bucks and brains for long-term homeownership.

If you have a need for a real estate professional, please contact me. I would also appreciate your vote of confidence by passing my name to anyone you may know who would benefit from my services.

408.687.2026   | Julie@JulieWyss.com   |  www.JulieWyss.com

Intero Is Pleased To Introduce Prestigio

Hello All,

It is my great pleasure to announce “Prestigio”.  Prestigio is Intero’s brand new Estates Division and the agents involved to participate in this new venture are handpicked. Recently I was chosen to become a member of Intero's President's Circle and was also awarded Top 5% among all Intero agents nationwide. I am honored to be among the select agents from the Intero Los Gatos office chosen to be a part of the revolutionary Prestigio opportunity.

Prestigio provides an exhaustive and exclusive menu of global marketing services for luxury homes and is going to change the way Realtors do business not only in the San Francisco Bay Area, but across the globe.  Prestigio is a program that is second to none in our industry, anywhere, and is being launched by Intero’s Top Producers. Some may think that it is pretty gutsy for a real estate company to create such a new extensive high end program just coming out of five years of a brutal downturn which severely affected the luxury market.  Yes, it is gutsy. 

The reality is: we felt compelled to do it. Business has changed and we felt we needed to change as well to adapt to the migrations and the profiles of new buyers at the top end of the market.  Not to mention the new ways to do business to best leverage the technology at our disposal. Simply put, we cannot do business as usual in an unusual market.

We at Intero want to be relevant and offer the best service possible to today’s homeowners who trust us with the marketing of their exceptional property. We have a no-nonsense approach to marketing and we actually place our advertising commitment in the customized marketing plan we prepare for the sellers, covering each and every month of the listing duration. That includes looking for buyers all over the United States and abroad.

Actions, not just words. That’s what sellers need today. They do understand that their opportunity to sell their home is predicated on the listing company’s ability to connect with a maximum of qualified prospective buyers, wherever they may reside or work. We created this new upscale marketing program to deliver on those expectations.

Please contact me if you’d like more details about the Intero Prestigio program or if you or someone you know is ready to buy or sell a home in the Silicon Valley.

Warmly,

Julie Wyss, Broker Associate, DRE # 01350871

Intero President’s Circle, Top 5%

Office 408.357.6157 

Cell  408.687.2026  

julie@juliewyss.com

www.juliewyss.com   J

Intero Real Estate Los Gatos, 518 N. Santa Cruz Ave. Los Gatos CA 95030

Silicon Valley Real Estate Market Update

Silicon Valley home prices are on the rise.

General Market Conditions: The real estate market in Santa Clara County is vibrant among most price points. In many areas, home values have returned close to their high water marks. Houses in the $750,000 price point and below are moving very quickly as owner-occupants battle investors for great deals. For homes above $750,000, location matters.

“Be fearful when others are greedy. Be greedy when others are fearful.”- Warren Buffett

Because of the resurgence of the real estate market, there are some great opportunities. With the right marketing strategy, we have been very successful helping clients navigate the market, taking advantage of the best opportunity based on our client’s situation.

1.     Investment real estate continues to be hot. Three areas of consideration:

A.     Buy “cash flow” rental property in Santa Clara County or beyond

B.     Buy distressed property at discount and refurbish and “flip”

C.     Sell depreciated rental property and “trade up” for better cash flow and tax benefits

If your a flipper, the market offers amazing investment opportunities.

2.     “Right Sizing” your current household to adjust for changing family

A.     Move up: sell ( or keep for rental income ) your current home and move to larger

B.     Move down: for many, now is a good time to make the nest “smaller”

C.     Move laterally: sometimes a move to another neighborhood is in the cards

Property is a great 'basket' in which to put some of your 'eggs'.

3.     Diversify part of your stock portfolio into real estate

A.     Convert current IRA into a “self-directed IRA” to fund real estate diversification strategy.

B.     Join a small group of friends/ investors, pool funds and buy income property

We are also getting requests from more clients who are helping elderly parents turn the page on their life long home and move to a variety of different independent care homes.

We continue to be very active helping buyers and sellers throughout Santa Clara County. If any of the opportunities listed here caught your attention and you (or someone you know) would like to discuss them in greater detail, we would be happy to do so.