A recent survey conducted by Harris Poll and released by SunTrust Mortgage found that “55% of homeowners with a child under the age of 18 at the time when they purchased their home said that the opinion of their offspring played a major role in their home buying decision.”
When the results were broken down by the parent’s age, millennials (those 18-36) led the way with 74% of homeowners saying that their child’s opinion was a factor in choosing which home to buy. Eighty-three percent of renters believe that their child’s opinion would be a deciding factor when looking to purchase a home.
So what features in a home are most important to kids?
Coming in at 57%, it should come as no surprise that gaining their own bedrooms was the top most-desirable feature of any home for kids, followed by a large back yard to play in at 34%.
Todd Chamberlain, Head of Mortgage Banking at SunTrust explained the reasoning behind the survey,
“As a parent of two kids, I know from experience that including children in the home buying process is not only fun for the whole family, but also educational for our homebuyers of tomorrow.”
If you’re thinking about selling your home this year, make sure to highlight all the kid-and senior friendly features your home has to offer so that you can sway the real decision makers.
The new tax code limits the deduction of state and local property taxes, as well as income or sales taxes, to a total of $10,000. When the tax reform legislation was put into law at the beginning of the year, some experts felt that it could have a negative impact on the luxury housing market.
“The impact on expensive homes could be detrimental, with a limit on the MID raising taxes for those that itemize.”
Mark Zandi of Moody’s Analytics:
“The impact on house prices is much greater for higher-priced homes, especially in parts of the country where incomes are higher and there are thus a disproportionate number of itemizers, and where homeowners have big mortgages and property tax bills.”
The National Association of Realtors (NAR) predicted price declines in “high cost, higher tax areas” because of the tax changes. They forecasted a depreciation of 6.2% in New Jersey and 4.8% in Washington D.C. and New York.
What has actually happened?
Here are a few metrics to consider before we write-off the luxury market:
1. According to NAR’s latest Existing Home Sales Report, here is the percent change in sales from last year:
- Homes sales between $500,000 – $750,000 are up 11.9%
- Homes sales between $750,000 – $1M are up 16.8%
- Homes sales over $1,000,000 are up 26.7%
2. In a report from Trulia, it was revealed that searches for “premium” homes as a percentage of all searches increased from 38.4% in the fourth quarter of 2017 to 41.4% in the first quarter of 2018.
3. According to an article from Bloomberg:
“Median home values nationally rose 8 percent in March compared with a year earlier, while neighborhoods of San Francisco and San Jose, California, have increased more than 25 percent.
Prices in affluent areas in Delaware and New York, such as the Hamptons, also surged more than 20 percent.”
Aaron Terrazas, Zillow’s Senior Economist, probably summed up real estate’s luxury market the best:
“We are seeing the opposite of what was expected. We have certainly not seen the doomsday predictions play out.”
Recently released data from the National Association of Realtors (NAR) suggests that now is a great time to sell your home. The concept of ‘supply & demand’ reveals that the best price for an item is realized when the supply of that item is low and the demand for that item is high.
Let’s see how this applies to the current residential real estate market.
Especially in Napa and Solano County, it is no secret that the supply of homes for sale has been far below the number needed to sustain a normal market for over a year at this point. A normal market requires six months of housing inventory to meet the demand. The latest report from NAR revealed that there is currently only a 3.6-month supply of houses on the market.
Supply is currently very low!
A report that was just released tells us that demand is very strong. The most recent Foot Traffic Report (which sheds light on the number of buyers who are actually out looking at homes) disclosed that “foot traffic grew 10.5 points to 52.4 in March as the new season approaches.”
Demand is currently very high!
Waiting to sell will only increase the competition between you and all of the other sellers putting their houses on the market later this summer. If you are debating whether or not to list your home, let’s get together to discuss the conditions in our market.
Mortgage interest rates have risen by more than half of a point since the beginning of the year, and many assume that if mortgage rates rise, home values will fall. History, however, has shown this not to be true.
Where are home values today compared to the beginning of the year?
While rates have been rising, so have home values. Here are the most recent monthly price increases reported in the Home Price Insights Report from CoreLogic:
- January: Prices were up 0.5% over the month before.
- February: Prices were up 1% over the month before.
- March: Prices were up 1.4% over the month before.
Not only did prices continue to appreciate, the level of appreciation accelerated over the first quarter. CoreLogic believes that home prices will increase by 5.2% over the next twelve months.
How can prices rise while mortgage rates increase?
Freddie Mac explained in a recent Insight Report:
“In the current housing market, the driving force behind the increase in prices is a low supply of both new and existing homes combined with historically low rates. As mortgage rates increase, the demand for home purchases will likely remain strong relative to the constrained supply and continue to put upward pressure on home prices.”
If you are thinking about moving up to your dream home, waiting until later this year and hoping for prices to fall may not be a good strategy.
Julian Sosa probably thought something like “I got this” before facing Abe Lopez on Thursday.
The Napa High boys tennis team’s No. 5 singles player had beaten Vintage’s Lopez in straight sets in their previous meeting. But that was in early March. Lopez seemed six weeks better this time, stunning Sosa by winning a tie breaker in the first set.
With the rest of the singles and all doubles done for the day, the teams were tied at four wins apiece – and the contest was for Sosa and Lopez to decide.
Watching other projects debut in downtown is encouraging, he said.
“It’s good to have some new traction on First Street,” such as at First Street Napa next to the Archer hotel.
“This project is going to help that retail too. It’s going to put a lot more heads in beds that then frequent First Street Napa and the overall downtown.”
A Wonderful 80th Birthday Party for Ron Downs
by Christine Hannah
On March 30, 2018, 2 dozen friends came to together to honor Ron Downs on his 80th birthday. Ron is best known for his tireless efforts in support of the Tennis Club at Napa Valley College. He and Dr. Rebecca Thompson, a local Clinical Psychologist, have taught tennis for decades at Napa Valley College.
I believe Ron is one of the luckiest gentleman I know. Last year, he was involved in a car accident and came away with only a scratch. And then this past Fall, Ron survived a natural disaster as well. Living on top of Mount Vedder was not an ideal place to be when the Napa/Sonoma fires broke out. Ron noticed embers floating over the ridge and within minutes, fires started on both sides of his home. Ron escaped with only a few of his belongings and drove down Redwood Road as his house burnt to the ground. His friends from the tennis club were there to console him, help out with housing and, of course, provide tennis balls.
I met Ron Downs back in the early 90’s. In 1995, with Ron’s coaching, I became the number one tennis player at Napa Valley College. After studying business and tennis at Napa Valley College, I vividly remember that Dr. Thompson, Ron Downs, and Dr. Jerry Somerville had a huge impact on my life. My performance on the tennis court and in Real Estate skyrocketed. Not only did I meet smart and interesting people on the tennis court, but also realized how much life and tennis had in common. The Napa Valley Tennis Association provided a great opportunity for exercise, making new friends, and learning that timing has to do with everything… not just in the game, but also in life. With a great combination like that, and great coaching from caring people like Ron, I realized that one can advance to any level in life, business, or sports.
Thank you again Ron and Happy Birthday! Not only are you one of the most unselfish and giving individuals in our community, but your friends are truly the lucky ones to have known you and called you Friend.
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Wonderful 80th Birthday Party for Ron Douw March 30,2018
We all came to together to honor Ron Douw’s birthday. He is a true legend.
He and Dr Rebecca Thompson, a local Clinical Psychologist are teaching tennis for decades at the Napa Valley College.
I think Ron is one of the luckiest Fellows I know. Lat year he was involved in a car accident he came away with a scratch.This year he survived so many events in his life. He lived on top of Mount Vedder when this year’s fire broke out. He woke up in time and got himself in safety before all his belongings and house burnt down to the ground.
His friends from the tennis court were there to help with housing and tennis balls.lol
Christine Hannah, at the time (1995) Number 1 tennis player at the Napa Valley College remembers. Dr Thompson, Ron Douws and Dr Jerry Sumerville had a huge impact on my life. After I studied business and tennis at the Napa Valley College my performance in skyrocketed.
Not only did I meet important people on the tennis court, i realized how much life and tennis have in common. Additionally finding new friends, leaning the integrity of the game but also how much timing has to do with everything. Just Golf, tennis is a mind game. If you are powerful, have integrity and focus, you can enhance into any level of life, business and sports.
Source: Photos: Scenic Napa Valley
Napa News: It’s been six months since three separate fires converged on Napa Valley, destroying more than 600 buildings, most of the homes. Now that the dust has settled and most of the debris has been removed, the community is rebuilding but it’s been a slow process.
The night of the fires, Oct. 8, is one that Adrian Gonzales won’t soon forget. “Everything was dark and smoky. You couldn’t see anything really,” recalled Gonzalez, as he stood on the pristine green lawns of Silverado Resort and Spa. Read on…