My Qualifications
Homes I am Listing
Find Me a Home!
Loan Calculator
Buying Tips
Recommended Reading
My Newsletters
Send me E-mail
How to Reach Me
Valuable Links
Privacy Policy
Terms of Use
... as pertains to real estate ...
The booming sellers’ market of the past 3 years slowed a tad by the fall of ‘98. Now, what I say must be qualified, as market areas vary, even in the various neighborhoods of San Jose. By the fall, more sellers began to put their homes on the market, noticeably Willow Glen, Campbell, and Blossom Valley. Even Cupertino had an increase. But, Los Gatos, Saratoga, the mountains, & Scotts Valley did not, so buyers still find slim pickings for those areas. Buyers are cautious, but for good properties, there are many purchasers, sometimes causing multiple bidding.
Since sellers don’t have a great choice in where they can move to, I don’t anticipate an overwhelming number of listings, come spring. Accordingly, I expect to see another price explosion in March-May, so buyers, take heed and buy before March! Interest rates couldn’t be more favorable than now. For buyers willing to call me 2-3 times/week and take time off from work to look, good discoveries can be made!
Give your Spouse a Surprise!
B & B’s are fun, but you needn’t spend hours driving to one. One of the very finest is less than an hour away, in the wine country outside of Livermore near the Lawrence Labs. The building, rooms, food, countryside, and spectacular pool are the greatest! Call the Purple Orchid Inn at (925) 606-8855 or check out their website. And, have Karen make reservations at the Wente Restaurant for dinner!
Hint
Get twice the amount of lemon juice from a lemon: Submerge it in hot water for 15 minutes before squeezing, or microwave it for 20 seconds.
Silicon Valley’s Greatest Asset
The Tech Museum of Innovation! Costing $100 million, it opened November 1st, 1998, is one of the marvels of this country, and will encourage thousands to visit here from all over the world.
Iris Gardens
Remember the beautiful Maryott Iris Gardens on Bird Avenue in San Jose? They are now a subdivision of new homes, but the gardens are alive and well in Freedom, California. Call (831) 722-1810 for their beautiful catalog.
Disasters
During the last 20 years, new records were frequently set for the costliest single natural disaster in the United States. In 1989, Hurricane Hugo exacted losses of $6 billion. In the same year, the Loma Prieta earthquake cost $20 billion, and in 1994, the estimated loss from the Northridge earthquake topped $25 billion. These individual events dominated the FEMA and PCS data sets, as well.
How’s your Credit?
If you are considering a new loan on a home or doing a simple refi, or a lender indicates you may have a dreaded credit "glitch", call the three credit repositories for copies of your credit report:
| Equifax | (800) 685-1111 | |
| Experian (TRW) | (888) 397-3742 | |
| Trans Union Corp. | (800) 916-8800 |
With 47% of potential homebuyers rating gated communities "desirable" or "essential", properties in gated communities are worth considering:
| Essential | 8% | |
| Desirable | 39% | |
| Indifferent | 36% | |
| Don’t Want | 17% |
Source: National Association of Home Builders, What Today’s Homebuyers Want, 1996. Based on 3,800 responses from a sampling of 13,000 potential homebuyers.
Restaurant Scene
... a Correction and a Gem! ...
Maison du Café in north Los Gatos (Winchester Blvd.) did not close! My error! It is as good as ever, and a very delightful French restaurant for quiet dining.
Los Gatos’ new gem is extremely popular (obtain reservations well in advance!) I call it unquestionably the "Best in Los Gatos". Owner-Chef and wife were at California Café. You’ll die for the warm Molten Chocolate Cake that she (as pastry chef) provides as one of the great desserts. Try the Mongolian Beef or New Zealand Lamb. Tapestry is at 11 College Avenue (off East Main) in Los Gatos.
Fannie, Freddie & FHA Up Limits
Fannie Mae and Freddie Mac have raised their national conforming loan limits from $227,150 to $240,000, effective January 1, 1999.
FHA loan limits, which are set as a percentage of the conforming limits, are increasing as a result, from $197,620 to $208,800 in high-cost areas.
The action by the two secondary mortgage market makers followed an announcement late last year by the Federal Housing Finance Board that, in October (1998), the average price for a single-family home had risen to $175,200, a 5.2% increase from a year earlier.
Tax Tidbits for House Sales
- Exclude $250,000 of gain per taxpayer on sale of personal
residence.
- A seller must own and use house as personal residence for 2
of 5 years before sale.
- Exclusion can be used every 2 years, not once in a lifetime,
as in old law.
- Gain exclusion is $500,000 if taxpayers file a joint return
in the year of sale and either husband or wife meet ownership and
both meet use test.
- For planning, the house should be sold when gain for married
couple approaches $500,000. Each new house gets a "fresh start".
- If married couple has rental property with substantial appreciation, they should consider living in house for 2 years to qualify for $500,000 gain exclusion. Three houses and 6+ years of planning could result in $1,500,000 of gain exclusions!! Now, that's what I call a real savings!
