1812 El Verano Way, Belmont OPEN SAT & SUN 8/4 & 8/5

1812 El Verano Way, Belmont LISTED FOR $1,598,000

  • Remodeled and enhanced with contemporary finishes
  • Three generous bedrooms
  • Two full taupe-tiled baths
  • Rich Oak hardwood flooring
  • Owners ensuite with walk-in shower, dual pane windows and recessed lighting
  • Freshly updated kitchen with newer sleek modern Samsung® appliances including silent-style dishwasher, five burner gas stove, microwave, stainless basin sink—granite counters
  • Large open communal living room with gas insert fireplace, recessed lighting, and new hardwood floors
  • New electrical panel
  • New front and rear landscaping
  • Multiple outdoor dining and entertainment patio areas—grass play area
  • Two car attached garage with new modern garage door
  • Approximately ~1,220 sq. ft.
  • Substantial ~7,102 sq. ft. lot
  • Built in 1955– and updated by current owners
  • Freshly painted interior with designer colors
  • Award winning Belmont schools, near Carlmont High School
  • Sought after Central Belmont location, nearby Carlmont Village Shopping Center
  • Several blocks from Barrett Park Community Center with its many recreational activities, childcare, dog park and socializing
  • Conveniently close to San Francisco International Airport, Half Moon Bay and Coastal towns, major commute arteries, nearby parks and plenty of excellent shopping and dining options

Reports available to qualified parties

1812 El Verano Way, Belmont

HANDSOME REMODELED CALIFORNIA RANCH | COVETED BELMONT HILLS AREA | INCREDIBLE BACKYARD

Designed and constructed by famed engineer and builder, ‘Andy’ Oddstad, this rolling hills location was chosen for its idyllic surroundings and its warmer microclimate—insulated from the cooler western hills exposure–hence the name El Verano, meaning “The Summer”. This post-WWII enclave of modest homes offer spacious lots, wide streets and community friendly sidewalks—rare for Belmont’s rural surroundings.

This single level home resides upon a bluff and enjoys level topography on an oversized lot. The home has undergone extensive enhancements and has been nicely updated with contemporary finishes. New hardwood flooring is throughout the home, along with the generous use of LED recessed lighting.

The nicely updated kitchen features Maple colored soft-close style drawers, granite counters, all new Samsung®stainless appliances including a quiet style dishwasher, five burner gas stove with self-cleaning oven, and French door stainless refrigerator.

Conveniently located in the galley kitchen is a dinette area for casual meals, and the adjacent more formal dining area opens to the spacious living room, augmented by a centerpiece wood burning fireplace, and highlighted by LED recessed lighting. Access to the expansive entertainment patio and newly sodded sunny flat grassy backyard is also available from this room. The amazing rear yard is perfect for evening get-togethers and outdoor enjoyment.

The two-car garage has fresh Shield-Crete epoxy slurry flooring, and new modern roll-up garage door with sidelights and Wi-Fi compatible belt drive Lift Master opener.

It’s coveted location also benefits from its proximity to both downtown areas of Belmont, as well as convenient travel corridors. Located near the Carlmont Village Shopping Center with a variety of retailers, restaurants and popular gathering spots, such as Starbucks, Vivace and Waterdog Tavern with pet friendly outdoor dining. Other businesses include ACE Hardware, and the upscale Lunardi’s Grocery.

For shopping, Hillsdale Mall is a short drive away and is undergoing a complete renovation, with stores such as Nordstrom, Macy’s, Williams-Sonoma, Sephora and Trader Joe’s. Enjoy dining options like Paul Martin’s American Grill, The Cheesecake Factory, California Pizza Kitchen, and The Counter.

Belmont is ideally located on the Peninsula between the Silicon Valley and San Francisco. It’s popular because of its close proximity to major travel arteries—Highways 101, 280, 92. Caltrain and San Francisco International Airport is also conveniently nearby.

Contact us to find out why more people are moving to the Mid-Peninsula. 650-508-1441

OFF-MARKET OPPORTUNITY 1926 Oak Knoll Drive, Belmont

Every so often, there’s a home so special that words cannot do it justice. We could describe it as chic, modern, high-tech, luxurious, inviting and comfortable, but one really must see this home in person to appreciate the complete experience.

This nine-year new classically crafted home has been designed in a contemporary style best described as offering clean lines, proportions, open layouts and abundant natural light. Additional characteristics include flat and shallow-pitched roofs, large expanses of glass, clean unencumbered walls, and an intrinsic connection between the indoor and outdoor space. The result? Gracious, streamlined spaces that radiate harmony.

The entire main floor is thoughtfully laid out with a ground level bedroom, full bath, great room, grand dining area, and kitchen combination. The great room on the main level, encompasses a professional styled kitchen, impressive communal dining area, and an eat-at bar and separate enclave for casual meals or conversations. Functionality includes a six burner Viking® stainless stove and oven combination, warming drawer, deep soft-close drawers while industrial-styled custom concrete countertops complete the chic feel. With a separate stainless prep sink and custom metro shelved pantry, this kitchen remains deeply functional while staying true to the minimalist aesthetic.

Rooms are naturally illuminated with a combination of celestial skylights and transom room transitions. Floor–to-ceiling windows feature expansive views of San Francisco City, the Bay, Mt. Diablo as well as 180º views from the pronounced view deck—harmoniously integrating the indoors with the world.

Bamboo hardwood flooring and stainless cabled railings flow gracefully throughout the home and the inverted layout with the bedrooms below, exemplifies the views from the upstairs main living area.

Down the naturally illuminated open stairwell, we find the lower level bedrooms—perfectly located for warm summer nights. The lower area consists of a main hall with nine foot ceilings leading to the laundry area, two bedrooms serviced by a central hall bath, and a bonus room or 5thbedroom. Also on this level is the owner’s ensuite, which enjoys its own private deck access with spa overlooking the bay. A dual floating sink vanity is in the owner’s suite bath along with a seamless separate shower enclosure and oversized soaking tub and a walk-in closet is nearby.

To visit 1926 Oak Knoll is to realize the passion that went into creating this unique home. We are excited to proudly present this enchanting retreat— welcome home!

FEATURES:

HOME

  • Nine-year new construction with ~68 posts and piers
  • Quiet cul-de-sac
  • Protected micro-climate location
  • Street level entry main living area-reverse floor plan
  • Hardwood Bamboo floors
  • Smooth stucco & sheetrock wall finish
  • Contemporary styling
  • Transom windows
  • Solid core doors
  • Led recessed lighting
  • Stainless cabled railings
  • Dual pane Anderson windows
  • Tankless water heater

MAIN LEVEL

  • Great room with ~11’ gradient ceilings
  • Large communal dining area
  • Celestial windows with automated opening system
  • Open style great room floor plan with pitched ceilings and stunning views
  • Corner low-heat glass fireplace
  • Office, Media room or additional bedroom
  • Two car garage—S.F. views, and plumbed for H&C convenient car washing

CHEF’S KITCHEN

  • Six burner Viking® stove & stainless hood
  • Built-in Viking® microwave
  • Side prep sink
  • Deep cabinetry drawer for professional cooking vessels
  • Walk-in pantry includes custom metro shelving
  • Appliance garage
  • Built-in warming drawer
  • Stainless basin sinks
  • Stainless floating hood
  • Custom concrete counters

FUNCTIONAL VIEW DECKS

  • Multiple private view decks with spa—plumbed for natural gas outdoor grill
  • 180º  bay views of San Francisco downtown & Bay, Mt. Diablo to the south bay
  • Eastern profile for dramatic sunrises year round

GROUNDS

  • Level lower area with large flat paved space suitable for basketball (hoop installed w/lighting), play area or entertaining
  • Gardening beds
  • Mature plantings on almost ¼ acre includes chicken coop and run

OWNER’S SUITE

  • Expansive walk-in closet, soaking tub and separate seamless shower enclosure,
  • Dual raised sinks on floating cabinetry
  • Access to private second level decks and spa
  • ~9’ ceilings

LOWER LEVEL

  • Owner’s Suite and three additional bedrooms
  • Amazing lower level storage areas with ideal wine storage capacity
  • 2nd level room could be 5th bedroom
  • 9’ ceilings

Prop 13 May Die a Slow Death

Do you remember proposition 13? If you do, you probably own a home, but prop 13 may be dying a slow death, at least for industrial and commercial properties.

THE BACKSTORY: On June 6th, 1978, nearly two-thirds of California’s voters passed Proposition 13, reducing property tax rates on homes, and businesses by about 57%. Proposition 13 forever altered the way property taxes would be levied on real property, or so voters were promised.

Under Proposition 13 tax reform, property tax value was rolled back and frozen at the 1976 assessed value level. Property tax increases on any given property were limited to no more than 2% per year as long as the property was not sold. Once sold, the property was reassessed at 1% of the sale price, and the 2% yearly cap became applicable to future years.

Prior to Proposition 13, the property tax rate throughout California averaged a little less than 3% of market value. Additionally, there were no limits on increases for the tax rate or on individual ad valorem charges. (“Ad valorem” refers to taxes based on the assessed value of property). Some properties were reassessed 50% to 100% in just one year and their owners’ property tax bills increased accordingly.

But change is inevitable, and that’s exactly what proponents of the newly proposed initiative are counting on.

WHAT’S IN STORE: A new ballot initiative that takes aim at how commercial properties are taxed under California’s Proposition 13 could raise $6 to $10 billion more each year for schools and other programs and services, according to a new analysis by the Legislative Analyst’s Office.

At the heart of the initiative, (which is still being reviewed by the state attorney general’s office), is a property tax law enshrined in the state constitution since 1978. Proposition 13 caps taxes for all kinds of properties — residential and commercial — at 1 percent of a property’s purchase price, allowing for increases of no more than 2 percent per year, even if the value of the property triples or quadruples over time.

The initiative would change the constitution so that commercial and industrial properties — and land not intended for housing development — are instead taxed based on their current market value. The idea, long favored by critics of Proposition 13, is often called a “split roll” since it would not affect protections for residential properties. Businesses whose total property holdings are valued below $2 million would be exempt.

Supporters of the ballot initiative include the League of Women Voters, California Calls, PICO California and other civic and community groups.

But that’s not the end it. The California Association of REALTORS wasn’t to put more teeth into the initiative by adding an initiative to the proposition 13 overhaul that changes how those homeowners over 55 can transfer their tax base.

Currently, Proposition 60, enacted into law in 1986, allows for the one-time transfer of your current home’s tax base to a replacement property of equal or lesser value after the age of 55 of either spouse, providing that the replacement property was located within the same county.

The problem for most people wishing to benefit from this tax base transfer is they are limited to moving within the county in which they currently reside, or moving to one of only a handful of reciprocal counties (Alameda, Los Angeles, Orange, San Diego, Ventura, San Mateo, Santa Clara, or El Dorado).

The new proposed initiative tied to proposition 13 amendments would allow homeowners over 55 to carry with them their current tax base whenever, (as many times as they like), and wherever they move—so long as they stay within California.

Proponents of the initiative say it will help free up the housing inventory shortage, as many long-time homeowners are reticent to move if they can’t carry their low tax base. While opponents, such as San Francisco-based YIMBY Action, a pro-development, millennial-led group say that this initiative is just helping the rich get richer—implicit in their argument is that if you own a home, you must be rich.

Thanks to the San Jose Mercury for providing much of the article’s investigative analysis and insight.

Drew & Christine Morgan are REALTORS/NOTARY PUBLIC in Belmont, CA. with more than 20 years of experience in helping sellers and buyers in their community. As Diamond recipients, Drew and Christine are ranked in the top 50 RE/MAX agents nationwide and the top 3 in Northern California.  They may be reached at (650) 508.1441 or emailed at info@morganhomes.com.

For all you need to know about Belmont, subscribe to this blog right here. You can also follow us on Facebook at https://www.facebook.com/Morganhomes and on Twitter @ https://twitter.com/morganhomes

The information contained in this article is educational and intended for informational purposes only. It does not constitute real estate, tax or legal advice, nor does it substitute for advice specific to your situation. Always consult an appropriate professional familiar with your scenario

 

 

 

Winning the Bid May Actually Be Losing

Are agents terrible at pricing homes for sale, or is there another reason so many homes sell for hundreds of thousands of dollars over the asking price?

When a home is underpriced, or overpriced for that matter, it often has to do with the fact that the listing agent is from out of the area. They miss the mark because in their home turf, homes may be selling for less (or more) than where their listing is located, and when they apply their native pricing strategies to a listing they have out of the area, they can be pretty far off at times.

The same goes for an agent who represents a buyer in an area where they’re not as familiar with the local home values. They may grossly overestimate a home’s worth, based upon their experience in the area where they concentrate, thus recommending an offer price to a buyer that is too high and artificially driving the prices up.

Then there’s the phenomenon known as the “Winner’s Curse”, hence while you may be winning the bid, you’re actually losing. The winner’s curse may occur in any auction where less than complete information is available. The winner’s curse says that in such an auction, the winner will tend to overpay. The winner may overpay or be “cursed” in one of two ways: 1) the winning bid exceeds the intrinsic value of the asset or 2) the value of the asset is less than the bidder anticipated, so the bidder may still have a net gain, but will be worse off than anticipated.

The Winner’s Curse phenomenon also manifests itself in the home buying process in several additional ways, some of which are introduced by the buyers.

When a buyer tries to outbid their competition by purposefully offering more than the home should be worth, just to win the auction, they may win the bid, but by definition, they paid too much, since the average bid typically defines the value, and the winning bid is the outlier.

Since homes are not a commodity, as in oil or gas for example, wherein the value is pretty well understood and, more importantly, oil is oil and it either makes sense to purchased it at “x” price or it doesn’t. Wherein when it comes to homes, at least those located outside of tract areas, are unique unto themselves, and buying a similar home may not be nearly as emotionally appealing. In this way, it’s more like adopting a child, no two are the same.

From a listing agent’s standpoint, pricing a home at the selling price of the home across the street typically backfires. Here’s why. Let’s say that the home across the street was listed at $1,000,000, and sold with ten offers for $1,400,000. The high bidder, who won the bid, and by definition paid too much—because they paid more than any other buyer was willing to bid—is now out of the pool of potential bidders for the next home—the one you just listed across the street. This means out of the nine residual buyers, none were willing to pay $1,400,000 and some may have even already moved on, or are in contract on another home. What did the other nine buyers bid? Only that listing agent will ever know, but the next highest bidder is the one you need to attract and who knows how much they offered.  And this of course assumes that the homes are identical—which they never are. The second highest bidder might not even like your listing, might be out of town the week you go on the market, which means now you are relegated to the third, fourth, or fifth bidders in order of their declining tolerance for bidding or ability to pay.

This is one reason agents will intentionally list a home at what seems to be irresponsible—far below what it might eventually sell for, based upon the recent comparable sales in the area. And while this practice might be viewed by some as false advertising, which is illegal, as the home might well be priced lower than recent sales, it might actually be priced appropriately for its intrinsic value.

In residential real estate valuation, there are several ways to ascertain the intrinsic value of a home. The three accepted practices in real estate are known as the Comparative Market Approach, also known as the sales comparison approach, the Principle of Substitution, (what else could I buy), and the Cost Approach, (how much would it cost to build a similar home from scratch).

Agents and buyers alike tend to rely heavily on the sales comparison approach, as it makes sense to compare the home they are buying to those which have recently sold, but if the buyers are bidding too much on homes, than the comparable sales are less trustworthy, and looking at the Cost Approach, or what it would cost to build a new home might be more effective, if nothing more as a check and balance against the price one might offer.

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Drew & Christine Morgan are REALTORS/NOTARY PUBLIC in Belmont, CA. with more than 25 years of experience in helping sellers and buyers in their community. As Diamond recipients, Drew and Christine are ranked in the top 50 RE/MAX agents nationwide and the top 3 in Northern California.  They may be reached at (650) 508.1441 or emailed at info@morganhomes.com.

For all you need to know about Belmont, subscribe to this blog right here. You can also follow us on Facebook at https://www.facebook.com/Morganhomes and on Twitter @ https://twitter.com/morganhomes

The information contained in this article is educational and intended for informational purposes only. It does not constitute real estate, tax or legal advice, nor does it substitute for advice specific to your situation. Always consult an appropriate professional familiar with your scenario

Possible Tax Hike Looming

1 Month Left to Sell Before Possible Tax Hike

DAILY REAL ESTATE NEWS | THURSDAY, NOVEMBER 30, 2017

Some home sellers would need a sale contract inked before the end of 2017 in order to avoid a big tax bill that would be imposed if the GOP tax reform proposals become law. Both the House and Senate bills would require sellers to have lived in their residence for a longer period of time before qualifying for the capital gains tax exclusion on the sale of a primary home. They would have to live in their house at least five years out of the last eight; right now, the requirement is two years out of the last five.

The Senate version, however, includes an exception for transactions in which a contract is written before Jan. 1, even if the closing occurs in 2018. The bill passed by the House includes no such exception. Therefore, homeowners who are currently thinking about selling have only one month left to complete a deal before proposed tax changes would take effect. Should tax reform be enacted, some homeowners who sell in 2018 may no longer qualify for the capital gains exclusion, which covers up to $250,000 for an individual and $500,000 for a married couple. As a result, the difference between your client’s tax bill pre- and post-tax reform could be huge.

https://youtu.be/jbGfwJBwslk

It won’t be known whether the House or Senate version of tax reform is adopted until the bill is finalized, which could happen in a few weeks. But sellers who haven’t lived in their house for more than five of the last eight years will want to act quickly regardless of the version that is approved.

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Drew & Christine Morgan are REALTORS/NOTARY PUBLIC in Belmont, CA. with more than 20 years of experience in helping sellers and buyers in their community. As Diamond recipients, Drew and Christine are ranked in the top 50 RE/MAX agents nationwide and the top 3 in Northern California.  They may be reached at (650) 508.1441 or emailed at info@morganhomes.com.

For all you need to know about Belmont, subscribe to this blog right here. You can also follow us on Facebook at https://www.facebook.com/Morganhomes and on Twitter @ https://twitter.com/morganhomes

The information contained in this article is educational and intended for informational purposes only. It does not constitute real estate, tax or legal advice, nor does it substitute for advice specific to your situation. Always consult an appropriate professional familiar with your scenario

What a Mortgage Deduction Reduction Could Do to Home Values

That’s literally the million dollar question. Many of our colleagues think that it will not be passed as the House version did this week. Some have good points and others just wishful thinking.
Many agents have voiced an opinion  that the mortgage deduction will be indexed for the higher cost coastal states, but we feel that’s exactly the targeted group this limitation is designed to hit—so we doubt we’ll see relief their. The senate bill may uphold the million dollar cap on mortgage interest—we’ll see.
We’d be surprised if in this administration, a dramatic negative shift in policy towards homeownership would emerge, but then this administration has been anything but predictive.
If it does pass as the House version stands, we’re not as worried about future homeowners—they’ll get over it and only the ones currently looking into buying a home will even know what’s going on. But for the millions of homeowners who bought their homes counting on the tax relief as the only way they can sustain their payments—therein lies the problem.
Assuming our homes are hovering around a median home price of $1,600,000. A buyer today could write down up to $1,000,000 in mortgage interest, which would be $42,174 in interest the first year. With the new proposed plan, that deduction drops in half to $21,087—resulting in an additional tax liability of around $7,380.50 a year, and that equates to as if they purchased a home for $125,000 more than what they had bargained for. Or another way to look at it. Is home prices (not values) on the Peninsula just went up over $125,000 overnight—so much for making more affordable housing.
Most regular folks are still purchasing homes with mortgages, and most mortgages are higher than in the above example. Obviously, the higher the mortgage, the more of a disparity this system creates in the allowable deduction.
What will real home values do? Probably not much since demand still outstrips supply in today’s market (locally). But the market for vacation homes—a huge segment in San Francisco for example—could drop precipitously since there will be NO deduction for second home mortgage interest. So a silver lining exists for the rich, and they could have a great opportunity to buy into vacation homes at diminished prices—all cash of course.

Drew & Christine Morgan are REALTORS/NOTARY PUBLIC in Belmont, CA. with more than 20 years of experience in helping sellers and buyers in their community. They may be reached at (650) 508.1441 or emailed at info@morganhomes.com.

For all you need to know about Belmont, subscribe to this blog right here. You can also follow us on Facebook at https://www.facebook.com/Morganhomesand on Twitter @ https://twitter.com/morganhomes

The information contained in this article is educational and intended for informational purposes only. It does not constitute real estate, tax or legal advice, nor does it substitute for advice specific to your situation. Always consult an appropriate professional familiar with your scenario.

 

Waterdog Tavern in Belmont-What’s in a Name?

Waterdog Tavern

We were delighted as were many Belmont residents with the opening of a new restaurant, Waterdog Tavern in the Carlmont Village Shopping Centre last year. This past Spring, they opened the spacious outdoor area for sociable dining in a “dog friendly” environment, and we now visit frequently with our dog, Wyatt.

If you see us outside with this friendly little guy, stop by to say hello!

One of the questions we often hear: Where did they get the name Waterdog Tavern?

Since Belmont is our home, and we’re quite familiar about our local history, we knew at once where they got the clever name. We asked the owners, Toby and Anne, who often get asked the same question, to weigh in for our readers about the backstory of why they picked the name they did. Enjoy!

Toby McMillan (Owner):

Our family moved to Belmont from Sacramento in 2006. Not long afterwards Anne & I were strolling through Carlmont Village for the first time, when we came upon the outdoor area where the old Carlmont Nursery used to display their huge selection of Japanese Maples. We both remarked how beautiful the space was, and hoped that someday the adjacent restaurant (Hola!) might make arrangements to serve food & beer in the outdoor space – a few picnic tables would be great. I remarked, not very seriously at the time, that if it were ever possible to get both of those spaces, we should jump on the chance.

Fast forward to the Fall of 2015. After seriously searching for a couple of years for the right space to open a new restaurant that had outdoor seating and great parking, Carlmont Nursery and Hola! decided to close their doors within a month of each other. We pinched ourselves that two spaces had become available simultaneously and set out to create a casual, comfortable, warm, inviting restaurant, where the community and those traveling by The Village could gather to enjoy great food & drinks – The Tavern concept was born. Now…what to name it?

We had come up with different names for other concepts, but they were all location specific and would not work with what we had planned for this restaurant. As Belmont residents, we wanted the name to reflect the surroundings and the casualness of the concept. One day I was talking to a friend, and they mentioned they had taken their dog for a walk at Waterdog Lake, and a light bulb went on: Waterdog Tavern! Waterdog Lake is not only a long time Belmont landmark, but is known by folks up & down the Peninsula. To add to that, we had already begun tossing around the idea of making the Beer Garden dog friendly, and with so many local residents walking their dogs at Waterdog Lake on a regular basis it seemed a perfect fit.

Now with that being said, we are aware that the name of Waterdog Lake has nothing to do with dogs, but was coined because the lake (officially named Notre Dame Lake) used to teem with salamanders, and ‘waterdog’ is a salamander nickname. Anne has fond childhood memories of spotting waterdogs in her Grandma’s fountain in Belmont. Having made the decision to make the Beer Garden dog-friendly, we came up with our ‘Shaking Dog’ logo as a bit of a play on words. A recognition of all of the waterdogs that we all know and love, including our Australian Shepard, Buddy… We mean no disrespect to salamanders and have enjoyed sharing our story with guests!

 

Belmont Home Price Increases Slow to a Crawl

In each of our Newsletters we bring you the recent Belmont home sales for the previous month. This time we thought we’d stack up the months of August to the same time last year, so the variance from the previous year is obvious.

The first thing that jumps out at us is that there were 33% fewer sales overall.  If we take out the one off-market sale in 2016, the time it took for the homes to sell really didn’t change. Homes are still selling briskly at about 10-14 days on the market—which really is more dependent upon which day the seller elects to hear offers.

There were two homes which underwent a price reduction before selling, and one home that sold for under the seller’s asking price in 2017, and none in 2016. Still, the amount the seller’s received stayed at around 108% of the seller’s asking price.

Since the size of homes which sold in both years was statistically unchanged, the median price difference YOY is very reliable. It shows that homes in Belmont rose on average almost 10% YOY with the median home price rising a modest 5.13 %. Are we near the top of the market? These almost nominal increases would suggest so, though to a buyer, in real dollars, the medium price home in Belmont just went up $75,000.

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Drew & Christine Morgan are REALTORS/NOTARY PUBLIC in Belmont, CA. with more than 20 years of experience in helping sellers and buyers in their community. As Diamond recipients, Drew and Christine are ranked in the top 50 RE/MAX agents nationwide and the top 3 in Northern California.  They may be reached at (650) 508.1441 or emailed at info@morganhomes.com.

For all you need to know about Belmont, subscribe to this blog right here. You can also follow us on Facebook at https://www.facebook.com/Morganhomes and on Twitter @ https://twitter.com/morganhomes

The information contained in this article is educational and intended for informational purposes only. It does not constitute real estate, tax or legal advice, nor does it substitute for advice specific to your situation. Always consult an appropriate professional familiar with your scenario.

Bay Area Home Values Eclipse Historical Records

Case Shiller Report for June 2017

The Case-Shiller Report was released June 27th, the last Tuesday of the month, which tracks home sales in 20 metropolitan cities around the country, called MSA’s, of Metropolitan Statistical Areas.

Our MSA (Metropolitan Statistical Area) in the Bay Area consist of five counties—Marin, San Francisco, San Mateo, Alameda and Contra Costsa. It’s important to note that while home values might be headed upward at a dramatic pace in the counties of San Francisco and San Mateo, they might be lagging in Alameda and Contra Costa, thus diluting the upward trend in one county vs. the whole MSA. This has been the case in our area since the housing recovery began in earnest in 2012.

The same goes for the 20 city composite index, which takes 20 metropolitan cities in the country and tracks them as an average trend.

While the 10 and 20 city composite indices shows that the housing market has not yet eclipsed the all-time high recorded around March of 2006, in the Bay Area, we have.

This graph which we built utilized the data from Case-Shiller for our SFMSA and illustrates that we have reached a new all-time high for home values. However, it’s important to note that the delta between the trend line and the peak where we are today, illustrating where the straight-line home values should be, is far less than in the peak of 2006, where we see a much great deviance off the trend line values. In fact, the peak of 2006 was 58% higher above the trend line than it is today.

One might infer from this that we are not as overvalued as it might appear at first glance.

This give some credence to the synopsis for the Standard and Poor’s Case-Schiller analysis and discussion.

Case-Shiller Analysis by Standard & Poor’s— ANALYSIS

Great View of San Francisco

“As home prices continue rising faster than inflation, two questions are being asked: why? And, could this be a bubble?” says David M. Blitzer Managing Director and Chairman of the Index Committee at S&P Dow Jones Indices. “Since demand is exceeding supply and financing is available, there is nothing right now to keep prices from going up. The increase in real, or inflation-adjusted, home prices in the last three years shows that demand is rising. At the same time, the supply of homes for sale has barely kept pace with demand and the inventory of new or existing homes for sale shrunk down to only a four- month supply. Adding to price pressures, mortgage rates remain close to 4% and affordability is not a significant issue.

“The question is not if home prices can climb without any limit; they can’t. Rather, will home price gains gently slow or will they crash and take the economy down with them? For the moment, conditions appear favorable for avoiding a crash. Housing starts are trending higher and rising prices may encourage some homeowners to sell. Moreover, mortgage default rates are low and household debt levels are manageable. Total mortgage debt outstanding is $14.4 trillion, about $400 billion below the record set in 2008. Any increase in mortgage interest rates would dampen demand. Household finances should be able to weather a fairly large price drop.”

Drew & Christine Morgan are REALTORS/NOTARY PUBLIC in Belmont, CA. with more than 20 years of experience in helping sellers and buyers in their community. As Diamond recipients, Drew and Christine are ranked in the top 50 RE/MAX agents nationwide and the top 3 in Northern California.  They may be reached at (650) 508.1441 or emailed at info@morganhomes.com.

For all you need to know about Belmont, subscribe to this blog right here. You can also follow us on Facebook at https://www.facebook.com/Morganhomes and on Twitter @ https://twitter.com/morganhomes

The information contained in this article is educational and intended for informational purposes only. It does not constitute real estate, tax or legal advice, nor does it substitute for advice specific to your situation. Always consult an appropriate professional familiar with your scenario

 

 

Farm House Restaurant Soon to Open in Belmont!

We’re excited about the upcoming opening of the Farm House at 1301 Sixth Street in Belmont, which many of you may recall was the location of the old Belli Deli.Farm House Restaurant

The place sat empty for the last several years but we recently stopped by to check out what’s going on since there’s a new sign out front.

The chef, Josh, was doing some work on the refrigeration, (they picked a good day since we’ve been in a mini-heat wave).

We get a lot of techies in Belmont since were so close to the action, and Josh is no different. He was a chef for Google before landing a spot as head chef for the new Farm House restaurant.

Josh is an affable guy who seems genuinely interested in doing some simple good food.

What’s in store? We’ll let the owner Katie weigh in on the details, but Josh hinted that the menu will be down to earth farm staples like rotisserie chicken. They’ll also be open for dinner soon which is always welcome news for Belmont foodies. Josh said they’ll probably keep the menu simple at first and grow it along with the business. It appears to be more of a real restaurant than it’s predecessor with a full kitchen and sit-down dining inside an out.

Watch for them to open sometime in July, if all things go as planned.

We welcome the new Farm House and wish them the best in their new endeavor!