Shasta Association of REALTORS® My Market
The real estate market can be fast paced and ever-changing, like attempting to take a still photograph of a speeding target! With that in mind, we offer My Market! The resources herein are designed to provide you with market information, not just figures, necessary for your home buying or selling decisions. Of course, this information cannot take the place of the knowledge and experience of your REALTOR®, rather it supplements those professional skills to sort through and interpret how those market changes impact you as a buyer or seller.
The Granny Flat - a "Win-Win" housing solution right in your backyard?
According to a recent report by the California Association of REALTORS®, (“C.A.R.”), California’s housing crisis is caused by a historic divergence between the demand for homes in California and the supply of available apartments and homes. We are still far from building enough units to satisfy general demand and it may take a long time for the state to build enough housing to reduce rental prices. In the mean-time, there is something that regular homeowners can do to supplement their incomes, increase the value of their homes, provide housing to neighbors, prepare for their own retirements, and partially relieve the housing pressure on their communities: the ADU!
Accessory Dwelling Units – ADUS or granny flats are a relatively affordable type of home to create because they do not require the purchase of land, new infrastructure, or parking; they can either provide income for homeowners or private space for extended friends and family, allowing intergenerational homes, or even helping older owners to age in place. They are well suited for young families, student aging parents, nannies, or even regular renters, and can be a win-win solution for homeowners and renters.
OK you may be asking: if ADUs are so good, why aren’t they more available or abundant? Why aren’t they everywhere?
Well, for many years, a thicket of local agency regulations, approvals and fees created substantial financial and time requirements before homeowners could even start on building a secondary unit. For example, a 2015 Berkley study found that many Bay Area homeowners were interested in building an ADU, most were deterred by regulations that existed to keep them from getting built.
But, the State of California passed legislation in 2016 aimed at reducing many of the worst barriers, fees and red tape that homeowners faced when trying to get approved locally to build their own granny flats. So hopefully, as contractors, builders, and owners learn more about the viability of ADUs in their communities they will start to be built in substantial numbers.
While the demand is certainly there for all types of housing in California, before you invest substantial money converting your garage or making a new ADU, you may want to know who is interested in renting out your new unit. It turns out many people across age groups think that ADUs would make a good affordable home. A 2017 C.A.R. survey of 1700 Californian renters found that 70% of renters in total were either moderately or very interested in ADUs. But older people were especially amenable to downsizing and renting small affordable units in their communities.
While ADUs and granny flats won’t be the only solution to the state’s housing issues, they can certainly be one of the many solutions. (Article courtesy of California Association of REALTORS®, Market Snapshot, September, 2017)
California REALTORS® launch ballot drive to expand Proposition 13 for senior homeowners
In a report released by the California Association of REALTORS® (“C.A.R.”), an overhaul of Proposition 13, California’s landmark tax-control measure, could go before state voters next year under a plan adopted earlier this year by C.A.R.
The trade group is launching a signature drive to put a new proposition on the November 2018 ballot that would expand tax breaks for homeowners age 55 and older or those who are disabled.
If passed, the proposition would allow senior and disabled homeowners to transfer their low, existing Proposition 13 tax assessment to a new home anywhere in the state, using the option as often as they choose and paying any price for their new home.
REALTORS® say the provisions would help older owners “locked in their homes” because they are reluctant to give up low Proposition 13 tax assessments when buying a new residence. REALTORS® maintain at least 70 percent of seniors have not moved in 17 years.
“It’s to make it easier for senior homeowners who want to move but don’t want to see a big tax bill,” said C.A.R. President Steve White, owner of two Keller Williams brokerages in north Los Angeles County.
Source: The Orange County Register . . . click HERE for the full story. (Article courtesy of California Association of REALTORS®, Beyond the Headlines, November, 2017)
WHAT YOU SHOULD KNOW . . . (California Association of REALTORS® Beyond the Headlines, November, 2017)
- Total mortgage applications fell 3.1 percent for the week, according to the Mortgage Bankers Association’s seasonally adjusted report
- Applications to refinance a home fell 8 percent for the week, marking the lowest level since January. They were down 18 percent from a year ago
- The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances of $424,100 or less remained unchanged from the week prior at 4.20 percent, with points decreasing to 0.34 from 0.42, including the origination fee, for 80 percent loan-to-value ratio loans