Michael E. Anderson
Michael E. Anderson
Broker Assoc. ABR, RSPS BRE# 01417114
(805) 698 - 3770
Anderson Home Pros Real Estate
P.O. Box 2785
Oructt, CA 93457

Santa Maria, Orcutt & Central Coast News

Record 57 Million Americans Living in Multi-Generational Households

Source: Wall St. Journal

A record 57 million Americans—or 18.1 percent of the population—lived in multi-generational households in 2012, according to an analysis of Census data by the Pew Research Center. Overall, the share of Americans living in multi-generational households continues to climb, and the recession accelerated the trend. Making sense of the story The number of multi-generational households has doubled since 1980. The arrangement of having multiple generations together under one roof spiked during the Great Recession of 2007-2009 and has kept growing in the post-recession period, albeit at a slower. Young adults ages 25 to 34 have been a major component of the growth in the population living with multiple generations since 1980—and especially since 2010. By 2012, roughly one-in-four of these young adults (23.6 percent) lived in multi-generational households, up from 18.7 percent in 2007 and 11 percent in 1980. In recent years, younger adults have surpassed older adults who live in multi-generational households. In 2012, 22.7 percent of adults ages 85 and older lived in a multi-generational household, which is just shy of the 23.6 percent of adults aged 25 to 34 in the same situation. Among young adults, men are significantly more likely than women to be living in multigenerational Racial and ethnic minorities generally have been more likely to live in multi-generational family arrangements, and their numbers have grown with increased immigration since the 1970s. In 2012 about one-in-four Hispanics and blacks lived in a multi-generational household.

Read the full story http://blogs.wsj.com/economics/2014/07/17/all-in-the-family-home-record-57-million-americans-livingin multi-generational-households/

FHA Premium Issue Sure to Challenge New HUD Chief

Source: National Mortgage News

Industry calls to lower Federal Housing Administration premiums will be a key issue that Julian Castro, the new head of the Department of Housing and Urban Development, will have to address when he takes the reins. Banking and housing groups have stressed that lowering FHA premiums is crucial to improving loan affordability. Castro’s predecessor, Shaun Donovan, resisted calls to lower premiums.

Read the full story http://www.nationalmortgagenews.com/news/regulation/fha-premium-issue-sure-to-challenge-new-hudchief- 1042112-1.html

Where Can Renters Afford to Own? Interactive Map

Source: Harvard Joint Center for Housing Studies

Harvard’s Joint Center for Housing Studies found that in looking at renters in the age group of 25-34, most would find the monthly costs of homeownership affordable in many metros across the country. Indeed, in 42 of the 85 metros studied, more than half of renters can afford the monthly costs of homeownership. So where are these buyers? Low inventory in many areas, combined with unemployment, income stagnation, and student loan debt have hampered sales.

Read the full story http://housingperspectives.blogspot.com/2014/07/interactive-map-where-can-renters.html

Forecast Says U.S. Home Prices Are Overvalued, Will Peak In 2016

Source:Wall Street Journal

Americans should prepare for several years of home prices that don’t increase much because the market’s price rebound has almost run its course, according to a report published by bond strategists at Bank of America Merrill Lynch. The analysts state that U.S. home prices, after being undervalued relative to household incomes by around 6 percent at the end of 2011, have now rebounded to levels that are 9.7 percent overvalued. They suggest that the post-crisis boom in home prices witnessed over the last two years “is most likely over.”

Read the full story http://blogs.wsj.com/economics/2014/07/17/forecast-says-u-s-home-prices-are-overvalued-will-peak-in-2016/

How to Buy a Home in a Competitive Real Estate Market

Source: Fox Business

The growing gap between affordability and housing prices has created a frustrating dynamic for potential homeowners. But there are a few factors that can give you an advantage when you’re trying to secure an initial commitment from the seller, such as getting the right REALTOR® and understanding how you appear on paper.

Read the full story http://www.foxbusiness.com/personal-finance/2014/07/16/how-to-buy-home-in-competitive-real-estatemarket/

Should Housing Policy Support Renters More?

Source: New York Times

In many markets across the country, buying is no longer the bargain it seemed to be a few years ago as Americans contend with the appeal of homeownership. The New York Times asked six experts to debate whether or not housing policy should be more balanced by supporting rental housing and homeownership on more equal footing.

Read the full story http://www.nytimes.com/roomfordebate/2014/07/15/should-housing-policy-support-renters-more

What you should know …

 Lower interest rates and stabilizing home prices combined to boost home sales in June, according to the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.). However, diminished home

affordability remains a challenge for buyers, particularly in high cost areas of the state.  Sales in June increased 1.5 percent from a revised 389,060 in May but were down 4.8 percent

from a revised 414,830 in June 2013. June marked the eighth straight month that sales were below the 400,000 level and the eleventh straight decline on a year-over-year basis. The statewide median price of an existing, single-family detached home slipped 2 percent from May’s median price of $466,320 to $457,160 but was up 6.6 percent from the revised $428,700 recorded in June 2013. The statewide median home price has increased year over year for the previous 28 months, marking more than two full years of consecutive year-over-year price

Central Coast Real Estate Values

offers_above_asking_priceReal Estate values on the Central Coast.

Over the last few years while the bubble was bursting and everyone’s home value plummeted, the issue of how to place monetary value on a home came front and center. Appraisers whose job it was to estimate those pre-bubble values were assailed daily for making a valiant attempt to keep up with market conditions. Prices were changing every day and almost daily they would have to adjust their mathematical formulae. It was a daunting task to say the least.
Fast forward to today’s Central Coast Real Estate Values and marketplace: The Feds, in their infinite (sic) wisdom, decided to set arbitrary conditions and limitations on how this industry was going to operate. Like most knee-jerk reactions by our members in Congress this was done with good intent but did not have the desired result. This law, The Dodd-Frank Interim Rule on Real Estate Appraisal Requirements hamstrung appraisers and stopped most, if not all home appreciation in its tracks. Since that time homeowners and Real Estate professionals have struggled, applying more realistic values based on supply and demand principles. They soon found other methods, such as using the CPI (Consumer Price Index), for instance, does not work for all homes in all neighborhoods. Every home is unique and as such has potentially different values. The only way forward was the willingness of the population to drag the market values up by offering over asking price or appraised values. The chart above proves that point. This method to increase values takes a firm resolve by the buyers who perceive value as what it is worth to them at a given time for a desired product. Home inventories are still very low and demand is still high which is driving values higher. Many of our transactions exceed appraised value based on this understanding, not CPI.
Every home is different and every transaction is based on perceived value. I could go on about quality, maintenance, curb appeal, staging, neighborhoods, schools and a myriad of reasons of what creates that perceived value in the public mind. However, the bottom line of price to value is still the 400 lb gorilla in the closet: Appraisers who were the first to feel the pain of this law are reluctant to allow their appraisals to rise too fast lest they get accused again of inflating the market. That lands us back to the question of what the sellers and buyers are supposed to do. Offering more than appraised value or listed value is one of the only possible solutions out of this conundrum but cash sales are becoming more common. In March cash sales almost doubled in Santa Maria, being 43 for March versus only 24 for February.
I was recently involved in a transaction where the actual value exceeded market value by tens of thousands of dollars. It was perceived by the buyer that the desirability of the home made appraised value a moot point. Obviously the banking/lending industry whose sole purpose is to protect investors prefers to base their decisions on appraised value. The banking industry is not happy about buyers and sellers taking these decisions out of their hands. This trend is allowing the market place to set the equilibrium, which in my opinion is a more natural and desirable state of affairs.
If you are thinking of buying or selling I recommend having a serious conversation with a Real Estate professional so you have a firm understanding of the market forces that drive values in today’s market. Trends like the one discussed in this article will definitely affect your buying and selling strategies and your Realtor or Broker is the one best equipped to give you timely advice.

Water Crisis Solutions For Your Home

Water Crisis On The Central CoastWater Crisis Solutions For Your Home

We on the West coast know full-well how valuable water is. It has become a serious issue for all California Central Coast homeowners & residents. This month we would like to focus on what you can do for very low cost and what would provide the highest return on your investment.

Since spring has come and we look to our gardens and yards that are hopefully springing back to life, I wanted to start there. As you can see by the informative chart, our yards landscaping consume 57% of water resources. There is something wonderful about vast expanses of  bright lawn. However, lawns require the most amount of water of any feature in our yards. As a Real Estate professional on the California Central Coast I would not tell you to remove all your lawn, since most buyers want and desire a lawn area, but I would recommend that you reduce the size, use water retaining fertilizers, increase mower height to reduce evaporation, follow a reduced water schedule, and make sure any runoff is minimal. The second place to focus your water-saving efforts is to install drip irrigation in your flower beds. Watering with drip emitters, micro spray heads or weep hoses delivers water efficiently and economically. Why water weeds?…focus on giving each plant exactly what it needs to prosper. Using drip is very beneficial to your landscaping. My third suggestion is to use a mulch in your flower beds to reduce evaporation and help to keep weeds down. There are many other suggestions on where to save water in your daily life such as turning off your faucet when brushing your teeth could save as much as 10 gallons a day or cutting your shower back to 5 minutes vs. 10 minutes could save 12.5 gallons a day. Continue…

Who is working for you in a Real Estate Transaction?

Real Estate AgencyWho is working for you and what is Real Estate Agency?

The normal response to that question from a buyer or seller is typically “my agent.” The real answer is more convoluted than that and Real Estate Agency really should be better understood by the public. When you sign a listing agreement or an agency agreement with “the agent” you are actually hiring the Broker of Record.

The first item to understand is that the Broker of the company is whom you are hiring. The agent who you meet is typically an independent contractor hired by the firm and in most cases represents the broker. In the first few pages of documents you should see an agency agreement where it is clearly (or should be) explained how you as a buyer or seller are being represented. There can be a buyers’ representative, a sellers’ representative or a dual representation where the agent or broker provides services to both parties. Continue…

Free Home Staging Services For All New Listings!

Anderson Home Pros Real EstateHome Staging Services With Anderson Home Pros

Do you want to sell your house fast…and I mean really fast? Then set a rock-bottom price lower than anybody else, and be sure to also negotiate your agent’s commission, because it’s not going to be that hard to sell. Anyone could do it.

Now, if you want to sell your house fast and get the most money for it, then you need Home Staging Services With Anderson Home Pros with a plan:a Staging Specialist. As a trained Staging Specialist, I can provide this valuable service if you list with me.

The world of real estate is ever changing and never seems to remain constant for more than a brief period. But one thing has always been a constant – the home that is priced well and shows well generally sells well. No matter what the market conditions, how your home shows has a tremendous impact on the end result. Continue…