This Isn’t a Housing Bubble: Here’s Why

There has been a lot of talk whether or not the San Francisco Bay Area Real Estate is in a bubble. ย One by one I have spoken withย clients, friends andย colleagues about this concern. ย Below is a great,ย quickย article about the market. ย And here is my 2 cents. ย Not long ago we were in the gloom of a crashed market. ย Back in 2009 – 2011 no one wanted to buy real estate for fear it would never recover. ย Boy has it! ย In the Bay Area we have far exceeded anyones expectation of recovery. ย We are booming right now. ย What fuels our growth is a strong job economy in the tech world, ample cash, low supply and over demand. ย Much of the home sales are going cash – no worry of crashing lenders here. ย These homes are selling withย multipleย offers and for cold hard cash. ย There is a huge influx ofย foreign money too. ย And I know there is talk that theย foreign markets are wavering – but we all need a place to live and well – why not here! ย The most gorgeous place on the planet! ย (In myย humbleย opinion as a California native). ย Enjoy the article below – call or email me if you have questions. ย And if you are thinking of buying or selling your home – The Caton Team is but a call or click away.ย 

Info@TheCatonTeam.com ย / ย 650-568-5522

Happy Reading,

Sabrina

This Isn’t a Housing Bubble: Here’s Why

DAILY REAL ESTATE NEWS

Home prices are rising rapidly, but economists are deflating concerns that another “housing bubble” is brewing.

A recent report from CoreLogic shows that twice as many metro markets are considered “overvalued” โ€“ prices are inflated relative to incomes — in the second quarter of this year compared to the first three months of the year. But economists say it’s not a housing bubble because bubbles eventually burst and home prices this time around aren’t likely to fall.

“Just because you’re overvalued doesn’t mean that you’re in a bubble or there is an impending crash,” says Sam Khater, CoreLogic’s deputy chief economist. “Some markets are overvalued because of strong fundamentals.”

The National Association of REALTORSยฎ reported that the national median sales price is now above its 2006 peak. The median existing-home price for all housing types reached $236,400 in June โ€“ 6.5 percent above year ago levels and surpassing the peak median sales price set in July 2016 at $230,400, according to NAR.

CoreLogic’s recent report shows that home prices in 14 of the largest 100 markets have now risen above its long-term fundamental values โ€“ with six of these markets in Texas alone. Housing demand is strong and supply has been near record lows, which has paved the way for price increases among the state’s strong economy.

About 10 years ago, a housing bubble was being fueled by free and easy mortgage credit โ€“ not the case today, CNBC reports. Today, strong demand and weak supply is driving the rise in prices.

“Agents continue to highlight buyers’ growing frustration with rising prices, but see current levels largely supported by tight inventory conditions,” according to a monthly survey of real estate professionals by Credit Suisse.

Source: “Frothy, Yes, But Donโ€™t Call it a Housing Bubble,” CNBC (Sept. 15, 2015)

I read this article at: ย http://realtormag.realtor.org/daily-news/2015/09/17/isn-t-housing-bubble-here-s-why?om_rid=AACmlZ&om_mid=_BV$vieB9FsN65L&om_ntype=RMODaily

Remember to follow our Blog at: https://therealestatebeat.wordpress.com/

Got Questions? – The Caton Team is here to help. ย 

Email Sabrina & Susan at: Info@TheCatonTeam.com

Call us at: 650-568-5522

Want Real Estate Info on the Go? Download our FREE Real Estate App:ย ย http://thecatonteam.com/mobileapp

Visit our Website at:ย ย  http://thecatonteam.com/

VISIT OUR INSTAGRAM PAGE: http://instagram.com/thecatonteam

Visit us on Facebook: ย ย http://www.facebook.com/pages/Sabrina-Susan-The-Caton-Team-Realtors/294970377834

Yelp us at: http://www.yelp.com/biz/the-caton-team-realtors-sabrina-caton-and-susan-caton-redwood-city

Or Yelp me: http://www.yelp.com/user_details_thanx?userid=gpbsls-_RLpPiE9bv3Zygw

Connect with us professionally at LinkedIn: http://www.linkedin.com/profile/view?id=6588013&trk=tab_pro

Please enjoy my personal journey through homeownership at:

http://ajourneythroughhomeownership.wordpress.com

Thanks for reading โ€“ Sabrina

The Caton Team – Susan & Sabrina – A Family of Realtors

Berkshire Hathaway HomeServices โ€“ Drysdale Properties

Sabrina BRE# 01413526 / Susan BRE #01238225 / Team BRE# 70000218/ Office BRE #01499008

Changes in Water Heater Efficiency Standards & Size…

There are changes in the size of your standard water heater that could pose a problem forย condos and mobile homes owners where the location of the water heater cannot be changed or modified due to the new size of a standardย efficientย water heater. ย Please read….ย 

 

Water Heaters

Product Informationย 

Residential water heaters use oil, gas, or electricity to heat potable water to be used for such activities as bathing or washing dishes or clothes. Residential water heaters include storage type units that store heated water in an insulated tank and instantaneous type units that heat water on demand.

Water heating is typically the second largest energy use in a home, after heating and cooling, and can account for 14%-25% of household energy consumption. In the United States energy consumed by residential water heaters accounts for 11% of the electricity and 24% of the natural gas consumed in the residential sector. However, residential hot water use is variable and depends on the number of people in the household, the type of appliances, and the climate in which the house is located.

Current Standards

Gas-fired ( 75 kBtu/h input capacity), oil-fired ( 105 kBtu/h input capacity), electric ( 12 kW input capacity), and tabletop ( 12 kW input capacity) storage water heaters, as well as instantaneous gas-fired (<200 kBtu/h input capacity) and electric ( 12 kW input capacity) water heaters, manufactured and distributed in commerce must meet the energy conservation standards specified in Table 1 as of January 20, 2004.

Amended Standards

On March 31, 2010, the U.S. Department of Energy (DOE) completed the second rulemaking to amend energy conservation standards for residential water heaters, issuing a final rule. Residential water heaters must comply with the amended standards in Table 2 by April 16, 2015.

Table 1. Energy Conservation Standards for Residential Water Heaters

Product Class Rated Storage Volume Energy Factor
Gas-fired Water Heater 20 gal and 100 gal 0.67 – (0.0019*Vs)
Oil-fired Water Heater 50 gal 0.59 – (0.0019*Vs)
Electric Water Heater 20 gal and 120 gal 0.97 – (0.00132*Vs)
Tabletop Water Heater 20 gal and 100 gal 0.93 – (0.00132*Vs)
Instantaneous Gas-fired Water Heater < 2 gal 0.62 – (0.0019*Vs)
Instantaneous Electric Water Heater < 2 gal 0.93 – (0.00132*Vs)

Vs: Rated Storage Volume – the water storage capacity of a water heater (in gallons).

Table 2. Amended Energy Conservation Standards for Residential Water Heaters

Product Class Rated Storage Volume Energy Factor
Gas-fired Water Heater 20 gal and 55 gal 0.675 – (0.0015*Vs)
> 55 gal and 100 gal 0.8012 – (0.00078* Vs)
Oil-fired Water Heater 50 gal 0.68 – (0.0019*Vs)
Electric Water Heater 20 gal and 55 gal 0.960 – (0.0003*Vs)
> 55 gal and 120 gal 2.057 – (0.00113*Vs)
Tabletop Water Heater 20 gal and 100 gal 0.93 – (0.00132*Vs)
Instantaneous Gas-fired Water Heater < 2 gal 0.82 – (0.0019*Vs)
Instantaneous Electric Water Heater < 2 gal 0.93 – (0.00132*Vs)

Vs: Rated Storage Volume – the water storage capacity of a water heater (in gallons).

The efficiency metric for residential water heaters is the energy factor (EF), which indicates a water heater’s overall energy efficiency based on the amount of hot water produced per unit of fuel consumed over a typical day. The EF accounts for the following:

  • Recovery efficiency – how efficiently the heat from the energy source is transferred to the water
  • Standby losses – the percentage of heat loss per hour from the stored water compared to the heat content of the water (for water heaters with storage tanks)

Cycling losses – the loss of heat as the water circulates through a water heater tank, and/or inlet and outlet pipes.

Energy Efficiency Standards Information

For more information, see the DOEโ€™s Appliance and Equipment Standards for this product.

To see all federal notices, public comments, public meeting transcripts, and supporting documents, see the Regulations.gov Docket for this product.

Contact: Alex Lekov (510) 486-6849

Test Procedure Information

Docket Number:

EERE-2011-BT-TP-0042

To see all federal notices, public comments, public meeting transcripts, and supporting documents, see the Regulations.gov Docket for this test procedure.

On November 4, 2013 DOE published a notice of proposed rulemaking regarding test procedures for residential water heaters and certain commercial water heaters. The proposed test method would apply the same efficiency descriptor to all residential and certain commercial water heaters, and it would extend coverage to eliminate certain gaps in the current residential test procedure, update the simulated-use-test draw pattern, and update the water delivery temperature requirement.

 

I read this article at: http://efficiency.lbl.gov/product/water-heaters

Remember to follow our Blog at: https://therealestatebeat.wordpress.com/

Got Questions? – The Caton Team is here to help. ย 

Email Sabrina & Susan at: Info@TheCatonTeam.com

Call us at: 650-568-5522

Want Real Estate Info on the Go? Download our FREE Real Estate App:ย ย http://thecatonteam.com/mobileapp

Visit our Website at:ย ย  http://thecatonteam.com/

VISIT OUR INSTAGRAM PAGE: http://instagram.com/thecatonteam

Visit us on Facebook: ย ย http://www.facebook.com/pages/Sabrina-Susan-The-Caton-Team-Realtors/294970377834

Yelp us at: http://www.yelp.com/biz/the-caton-team-realtors-sabrina-caton-and-susan-caton-redwood-city

Or Yelp me: http://www.yelp.com/user_details_thanx?userid=gpbsls-_RLpPiE9bv3Zygw

Connect with us professionally at LinkedIn: http://www.linkedin.com/profile/view?id=6588013&trk=tab_pro

Please enjoy my personal journey through homeownership at:

http://ajourneythroughhomeownership.wordpress.com

Thanks for reading โ€“ Sabrina

The Caton Team – Susan & Sabrina – A Family of Realtors

Berkshire Hathaway HomeServices โ€“ Drysdale Properties

Sabrina BRE# 01413526 / Susan BRE #01238225 / Team BRE# 70000218/ Office BRE #01499008

 

 

5 Popular Trends in New-Home Construction

5 Popular Trends in New-Home Construction

DAILY REAL ESTATE NEWS

What building materials are trending in new-home construction? The latest Annual Builder Practices Survey, conducted by Home Innovation, reveals what buyers can expect to see in the new-home market.

  1. Garages: The garage door is getting more enhancements, including windows, insulated doors, and doors made of composite or plastic materials. In 2014, 32 percent of all new single-family homes had bays for three or more carsโ€”the most ever recorded in this study’s history.
  1. Flooring: Carpeting continues to be the most popular flooring option for new construction, with about 83 percent of all new-home bedroom installations having carpeting. However, only about 40 percent of living rooms now have carpet. Hardwood flooring โ€“ both solid and engineered types โ€“ is the second most popular type of flooring, and is included in 27 percent of all new-home installations. Ceramic tile (which appears in 72 percent of all bathroom floor installation) follows in third place, making up 20 percent of all new-home floor installations, according to the survey.
  1. Countertops: For kitchen countertops, granite continues to reign at 64 percent of new-home installations. Quartz/engineered stone is gaining popularity while laminate, solid surfacing, and ceramic tile are losing appeal.
  1. Appliances: Cooktops and wall oven combinations are gaining in popularity and make up about 24 percent of the market, compared to freestanding ovens (at 45 percent). Freezer-on-bottom refrigerators are gaining in popularity at 19 percent, while side-by-side has fallen to 28 percent of the share.ย 
  1. Kitchen sinks: More buyers are paying attention to their kitchen sink, with the single basin kitchen sink making a comeback, growing from 5 percent to 20 percent of all new single-family homes in the past decade. Also growing in popularity are granite/stone kitchen sinks (at 8 percent). One-piece cultured marble lavatories are continuing to decline in demand, according to the survey.

Source: “Material World: The Hottest Trends From the 2015 Builder Practices Survey,” BUILDER Online (July 29, 2015)

I read this article at: http://realtormag.realtor.org/daily-news/2015/08/04/5-popular-trends-in-new-home-construction?om_rid=AACmlZ&om_mid=_BVwQu3B9EOtOGt&om_ntype=RMODaily

Remember to follow our Blog at: https://therealestatebeat.wordpress.com/

Got Questions? – The Caton Team is here to help. ย 

Email Sabrina & Susan at: Info@TheCatonTeam.com

Call us at: 650-568-5522

Want Real Estate Info on the Go? Download our FREE Real Estate App:ย ย http://thecatonteam.com/mobileapp

Visit our Website at:ย ย  http://thecatonteam.com/

VISIT OUR INSTAGRAM PAGE: http://instagram.com/thecatonteam

Visit us on Facebook: ย ย http://www.facebook.com/pages/Sabrina-Susan-The-Caton-Team-Realtors/294970377834

Yelp us at: http://www.yelp.com/biz/the-caton-team-realtors-sabrina-caton-and-susan-caton-redwood-city

Or Yelp me: http://www.yelp.com/user_details_thanx?userid=gpbsls-_RLpPiE9bv3Zygw

Connect with us professionally at LinkedIn: http://www.linkedin.com/profile/view?id=6588013&trk=tab_pro

Please enjoy my personal journey through homeownership at:

http://ajourneythroughhomeownership.wordpress.com

Thanks for reading โ€“ Sabrina

The Caton Team – Susan & Sabrina – A Family of Realtors

Berkshire Hathaway HomeServices โ€“ Drysdale Properties

Sabrina BRE# 01413526 / Susan BRE #01238225 / Team BRE# 70000218/ Office BRE #01499008

 

New Rental Units Too Pricey for Most Renters

New Rental Units Too Pricey for Most Renters

Much of the recent multifamily construction has focused on the luxury segment, which is pricing renters out of the market, according to Harvard University Joint Center’s 2015 State of the Nation’s Housing Report.

The rising costs in multifamily development pushed the median asking rent for newly constructed rental units up to about $1,290 per month as of 2013. That marks an increase of $180 compared to 2012, according to U.S. Census Bureau data.

Meanwhile, the typical renters’ incomes rose by just $60 a month, going from $32,000 in 2012 to $32,700 in 2013, according to the American Community Survey.

In order to afford a standard new multifamily unit, a household would need to earn at least $51,440, according to JCHS. Less than a third of renters, however, earn this much.

In some areas, rental costs are even higher. JCHS’ report notes that 84 percent of new multifamily units in the Northeast and 67 percent of those in the West went for a monthly rate of $1,350 or higher in 2013.ย In fact, many units built in 2012 to 2013 rented for at least $2,000 per month โ€“ which would require an annual salary of at least $80,000.

In the South and Midwest, new units rented in the $1,350 range were only about a third of growth, which indicates a more even regional supply of new units by price.

“While new multifamily construction is easing some of the demand for new units, it is currently not sufficient to ease the broader affordability problems facing renters,” notes Elizabeth La Jeunesse, a research analyst, at the JCHS’ Housing Perspectives blog. “Closing the gap between what it costs to produce this housing, and what economically disadvantaged households can afford to pay, requires the persistent efforts of both the public and private sectors.”

Source: “New Multifamily Construction Is Out of Reach for Most Renters,” Harvard University Joint Center for Housing Studies’ Housing Perspectives Blog (July 30, 2015) DAILY REAL ESTATE NEWS

I read this article at: http://realtormag.realtor.org/daily-news/2015/08/04/new-rental-units-too-pricey-for-most-renters?om_rid=AACmlZ&om_mid=_BVwQu3B9EOtOGt&om_ntype=RMODaily

Remember to follow our Blog at: https://therealestatebeat.wordpress.com/

Got Questions? – The Caton Team is here to help. ย 

Email Sabrina & Susan at: Info@TheCatonTeam.com

Call us at: 650-568-5522

Want Real Estate Info on the Go? Download our FREE Real Estate App:ย ย http://thecatonteam.com/mobileapp

Visit our Website at:ย ย  http://thecatonteam.com/

VISIT OUR INSTAGRAM PAGE: http://instagram.com/thecatonteam

Visit us on Facebook: ย ย http://www.facebook.com/pages/Sabrina-Susan-The-Caton-Team-Realtors/294970377834

Yelp us at: http://www.yelp.com/biz/the-caton-team-realtors-sabrina-caton-and-susan-caton-redwood-city

Or Yelp me: http://www.yelp.com/user_details_thanx?userid=gpbsls-_RLpPiE9bv3Zygw

Connect with us professionally at LinkedIn: http://www.linkedin.com/profile/view?id=6588013&trk=tab_pro

Please enjoy my personal journey through homeownership at:

http://ajourneythroughhomeownership.wordpress.com

Thanks for reading โ€“ Sabrina

The Caton Team – Susan & Sabrina – A Family of Realtors

Berkshire Hathaway HomeServices โ€“ Drysdale Properties

Sabrina BRE# 01413526 / Susan BRE #01238225 / Team BRE# 70000218/ Office BRE #01499008