OPEN HOUSE Saturday May 16, 2015 from Noon to 4:30 p.m.

Century 21 Alpha Rick Funk created an event.

24 mins · 

Interested

OPEN HOUSE

Saturday

7463 Phinney Way San Jose CA 95139

Why New-Home Prices Are Surging:

New-home prices have risen much higher than they should when comparing homes built in 1970 to those built today with similar characteristics, according to a new analysis by economist Tom Lawler. New homes last year sold for an average of $343,000 — more than double what they sold for in 1970, after adjusting for inflation, Lawler points out. He says new-home prices should be up only 23 percent from 1970, which would put the average sale price at $199,000 today.

The dramatic price increase over the past 45 years can mostly be attributed to the fact that homes are getting bigger and fancier, Lawler says. But ironically, the higher price tags have come over a period of time when the average American household has gotten smaller.

About half of all homes built in 2014 were more than 2,415 square feet, a 55 percent rise from the average 1,560 square feet in 1974.

Homes may be getting larger, but builders have been building fewer homes. Also, some builders may be focusing on larger homes since they offer better profit margins. But a reversal may be coming. New-home sizes have shown some signs in recent months of inching down. The median price of new homes in March dropped, too.

"That could be a sign more builders have decided to accept thinner margins to boost sales volumes of homes that are a bit smaller," The Wall Street Journal reports. Source: “Why New Homes Have Become More Expensive: They’re Much Bigger,” The Wall Street Journal (April 28, 2015)

Call me today for yourself, your friends or maybe your children, I've been helping my clients for over 35 years to obtain the American Dream! Rick Funk (408)629-6099 C21Funk@aol.com
WWW.RickFunk.com

Coming Soon to The Santa Teresa Market!

172 Oakbrook Circle, San Jose CA 95139
2 good size bed rooms, 1 & 1/2 upgraded baths.
Large patio with views of the Santa Teresa Foothills
Quiet inside location easy access to pool, club house, play ground
and Tennis courts. Walking distance to great restaurants, shopping,
Plus Santa Teresa Golf course and 2500 acre park with over 55 miles of trails.
*All at an affordable price of $390,000.00*
Payments as low as $2,839 per month with as little as $15,328 total needed to close, "includes down payment & closing costs"
* Subject to credit scores, and other qualifying requirements.

Rick Funk
Century 21 Alpha
5978 Silver Creek Valley Road, Suite 50
San Jose, CA 95138
408-629-6099
C21Funk@aol.com
WWW.RickFunk.com
CalBRE# 00770643

The 5 Latest ‘Must-Have’ Amenities of Home Shoppers

Besides an upscale kitchen and plenty of space, what are new-home buyers’ looking for when house hunting? Surveys by the National Association of Home Builders and homebuilder PulteGroup shed some light on a few of the latest in-demand amenities.

1. Walk-in closets: Large closets, particularly in the master bedroom, is among one of home shoppers’ top priorities, according to the NAHB survey of builders and remodelers. Indeed, 31 percent of 1,000 home owners recently surveyed by PulteGroup said they’d sacrifice another household feature in order to have his-and-hers closets in the master bedroom.

2. Luxurious laundry rooms: Buyers are looking for more than just a place to stick their washer and dryer. They want upgraded laundry rooms – complete with skylights, built-in ironing boards, space for folding clothes, extra storage, and upgraded appliances, according to the NAHB survey.

3. Energy efficiency: Home buyers are looking to cut utility costs, and energy efficiency appliances and products can be one way to do that. Low e-windows, Energy Star appliances, and programmable thermostats are more in demand among home shoppers.

4. Great rooms: These large open spaces that often merge dining rooms, living rooms, and kitchens continue to be in high-demand among home shoppers, according to NAHB’s poll of builders. “Great rooms are wonderful places where everyone in the family can sit around, or where the kids can do their homework while you get dinner ready,” Stephen Melman of NAHB told MainStreet. “Today’s great rooms are large, bright and just make you feel good being there.”

5. Taller first-floor ceilings: More home buyers want the first floor to stretch beyond the typical eight-foot ceiling. They’re asking builders for nine-foot ceiling heights. The taller ceilings can open up living rooms, dining rooms, and other spaces on the first floor. But home shoppers say they can do without the cathedral ceiling in the family room, which can be too costly to heat and cool. Also, they aren’t preferring the higher ceilings on the second floor, which many home buyers say they want to feel more cozy, Melman says.
By Melissa Dittmann Tracey, REALTOR® Magazine

Rick Funk Century 21 Alpha for over 34 years of Real Estate Excellence!WWW.RickFunk.com C21Funk@aol.com (408)629-6099

More Buyers in House-Hunting Mode:

Low mortgage rates mixed with a friendlier lending environment are getting more home buyers to step off the sidelines in search of a new home. Several recent housing reports show a surge in buyer demand this month.

For example, real estate brokerage Redfin’s monthly housing report shows home-tour demand has reached an all-time high, up 62 percent from the same week last year. They also report that signed offers were up 58 percent.

“A rebound in first-time homebuyer interest is helping to strengthen demand this year,” according to Redfin’s report. During the week of Jan. 12, Redfin agents reported that 57 percent of home tours taken were by first-time buyers, compared to 31 percent the week before and 48 percent the same week last year. “It’s also the highest rate of first-timers touring we’ve seen since the end of 2012,” the report notes.

As reported here last week, homebuilders are also finding an increase in buyer traffic. Indeed, economists have been predicting a surge in first-time buyers in 2015, following a long absence in the wake of the housing crisis. Millennials are expected to drive two-thirds of household formations over the next five years, according to realtor.com®'s 2015 housing forecast report.

“In 2015, increases in employment opportunities will empower younger buyers to return to the market and fuel the continued housing recovery,” Jonathan Smoke, chief economist for realtor.com®, said in a 2015 housing forecast report. “If access to credit improves, we could see substantially large numbers of young buyers in the market. However, given a high dependency on financial qualifications, this activity will be skewed to geographic areas with higher affordability, such as the Midwest and South.”

In Redfin’s housing report, the brokerage says that its agents are once again seeing bidding wars and packed open houses that were similar to a housing frenzy in 2013. The difference now is that buyers are competing over homes at more affordable price points.

Redfin agent Klaus Gosma said that more than 130 potential buyers visited a $350,000 three-bedroom Seattle townhouse during an open house over the weekend.

“I have never seen so much traffic at an open house,” says Gosma. “The big draw for buyers was the home’s affordable price point.” Source: “Home Prices Up 7.6% in January as Redfin Reports Record-Setting Homebuyer Demand,” Redfin Research Center (Jan. 27, 2015) and “2015: Year of the First-Time Home Buyer,” REALTOR® Magazine Daily News (Dec. 5, 2014)

Rick Funk Century 21 Alpha WWW.RickFunk.com
(408)629-6099 or write me at: C21Funk@aol.com
Please remember I can help you...
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You don't need to have 20% down payment on your 1st or next home! Smaller Down Payments Lure More Buyers:

Some home buyers are stepping off the sidelines as more lenders require less money up-front on a home purchase.

Recently, more borrowers are able to pay 3 percent or even less of a home’s purchase price to get a mortgage – a big change from when at least 20 percent down payments were practically the norm post-recession.

Additionally, some lenders are luring more home buyers back by waiving mortgage-related fees and even showing more acceptance of allowing down payments to be made by others, such as the borrower’s family members, The Wall Street Journal reports.

Still, borrowers must have good credit scores and a steady income to often qualify for these smaller down payment loans.

In two big moves in recent weeks, the Federal Housing Administration, which insures mortgages with down payments as low as 3.5 percent, announced it is lowering its annual mortgage-insurance premiums on new mortgages beginning Monday. The move is expected to save a typical first-time home buyer about $900 a year. What’s more, Freddie Mac and Fannie Mae recently lowered the minimum down payments they will accept on loans they back from 5 percent to 3 percent.

Lenders have reportedly been lowering requirements on “jumbo” mortgages too -- loans that exceed $417,000 in most parts of the country and $625,500 in more expensive housing markets. For example, PNC Financial Services Group lowered its requirement from 20 percent down for jumbos up to $1.5 million to 15 percent down. Last year, Wells Fargo started allowing down payments of 10.1 percent on jumbo mortgages; previously its lowest down payment on jumbos was 15 percent, The Wall Street Journal reports.

So far, the changes appear to be luring more home buyers. For the week ending Jan. 9, the Mortgage Bankers Association reported that applications for home purchases -- viewed as a gauge of future homebuying activity -- rose to a seasonally adjusted 24 percent from the prior week. The MBA credited most of that jump to the new 3 percent down payment option for qualified buyers, announced by Fannie Mae and Freddie Mac.

However, financial experts urge borrowers to realize the risks that come with making smaller down payments and also ensure they are the best move for them.

Borrowers who make smaller down payments are more at risk of owing more on their mortgage if property values should decline, notes Jack McCabe, a housing analyst in Deerfield Beach, Fla. Also, borrowers likely will have to pay higher costs over the life of the loan – including higher interest rates and usually mortgage insurance. Financial experts urge borrowers to compare costs, including the interest rate, and whether they have to pay any upfront fees to get that rate. Also, in exchange for a low down payment, borrowers often will be required to pay an extra fee for private mortgage insurance if a down payment under 20 percent is made. Often borrowers who have higher credit scores, smaller loan amounts, and fixed-rate mortgages pay less, The Wall Street Journal notes. Source: “Down Payments Get Smaller,” The Wall Street Journal (Jan. 23, 2015) and “Loan Demand Posts Biggest Leap in 6 Years,” REALTOR® Magazine Daily News (Jan. 14, 2015)

Rick Funk Century 21 Alpha (408)629-6099
WWW.RickFunk.com or C21Funk@aol.com

Over a Decade, How Does the Market Fare?

 

While home sales this year are lower than they have been over a 10-year average, prices and inventory are both beating the average, according to National Association of REALTORS® researchers. NAR's Economists' Outlook blog recently took a closer look at housing market conditions based on a 10-year average outlook to gauge how far the real estate sector has really come in the housing recovery. Here’s a look at the current housing data for November compared to its 10-year November average.

Home sales
The number of homes sold in the United States for November 2014 is lower than the 10-year November average, according to NAR’s analysis. “November’s low figure relative to the 10-year average may be partially due to the rush of closings in November 2009, as the first-time home buyer’s tax credit was set to expire,” NAR notes on its blog. By region, only the South posted higher average sales based on the 10-year November average, while the Northeast, Midwest, and West had current sales performing below the 10-year average.

Home prices
The median home price in November is higher than the 10-year average median price. The 2014 median price of a home is about 3 percent higher nationally when compared to 2004 numbers. Regionally, only the Northeast showed a drop in home prices of 2 percent when looking at the 10-year average.

Inventory
There are fewer homes for sale in the United States this November compared to the 10-year average. In 2004, the United States had the fastest pace of homes sold relative to the inventory. By 2008, the U.S. housing market saw the slowest pace, taking 11 months to sell the supply of homes on the market, NAR researchers note. The 10-year November average months supply is 7; November 2014 was at a 5.1 month supply. Notably, the condo market is currently performing better than the single-family market, with only a 4.6 month current supply in condos (the 10-year average for condos is 7.9 months) while the single-family market is staying around 5.2 months (the 10-year average is 6.9 months).
Source: “November 2014 EHS Data vs. the 10-Year Average,” National Association of REALTORS® Economists’ Outlook blog (Jan. 20, 2015)

Improving Economy Helps Buoy Housing: Recent drops in oil prices and mortgage rates, along with positive tailwinds in the economy, are helping to jump-start the housing market in the new year, according to Freddie Mac’s newly released 2015 U.S. Economic and Housing Market Outlook for January. Consumers are gaining confidence, which is expected to translate to higher home sales in the coming months. Some economists are skeptical on whether this latest jolt will stick around for the entire year, however.

Freddie Mac economists note that mortgage rates continue to remain well below expectations, and they predict that mortgage rates will remain low at the beginning of 2015, staying around 4 percent for the first two quarters of the year at least. Last week, mortgage rates dipped to a 20-month low with the 30-year fixed-rate mortgage rate plunging to a 3.66 percent national average and the 15-year fixed-rate mortgage dropping to 2.98 percent.

“We … expect these low mortgage rates to help the growing purchase market continue to expand and reach the highest levels we’ve seen since 2007,” the economists note in the forecast.

But rates likely will move up by the end of the year. Lawrence Yun, chief economist for the National Association of REALTORS®, says that the 30-year fixed-rate mortgage could average around 5 percent – or higher – by the end of this year.

"I would not be surprised if it is above 5 percent because when mortgage rates move or interest rates move, it is generally not in a slow creep," Yun told Bankrate.com.

That said, many potential home buyers remain sidelined due to high monthly rents that have prevented many from being able to save for a down payment on a home. Freddie Mac believes its new announcement, along with Fannie Mae, of offering mortgages with down payments as little as 3 percent, along with the Federal Housing Administration’s recent announcement that it will cut its premiums for new and refinancing borrowers by a half percentage point to help increase mortgage availability to first-time home buyers.

Economists also note in Freddie Mac’s report that home prices will likely rise by 3.5 percent this year. In addition, in the labor market, wages are expected to rise, helping to give consumers greater confidence. The National Federation’s Independent Business Index for December showed that small businesses expect to raise employee compensation to the highest level since 2006.

Still, economists worry that some of the positives in the housing market may be for a “limited time only,” influeneced by unexpected weaknesses in the global economy as well as what the Federal Reserve ultimately does with mortgage rates. While mortgage rates are expected to largely remain low for the next two quarters, many economists are expecting rates to move higher in the second half of the year.

"On balance there are a lot of positive opportunities in the U.S. economy at the start of the year, and the real question is whether or not households and businesses will be able to seize these opportunities and make the most of them,” says Frank Nothaft, Freddie Mac’s chief economist. “The reprieve in interest rates and drop in gas prices should help to spur economic growth. Until rates start to rise later in the year, housing markets should respond positively, and we anticipate increases in home sales and continued improvement in construction activity.” Source: “January U.S. Economic & Housing Market Outlook,” Freddie Mac (January 2015) and “Housing Market’s ‘Interesting Times,’” Bankrate.com (Jan. 19, 2015)
Rick Funk Century 21 Alpha (408)629-6099
C21Funk@aol.com WWW.RickFunk.com

7463 Phinney Way San Jose CA 95139 For Sale asking $828,000

Welcome home to this beautifully updated and customized Santa Teresa Century Park Royal model adjacent to foothills.. Views abound from this 
fine home that boast 5 good size bedrooms including the generous Master bedroom, and 3 full baths. Tile, carpet, & vinyl flooring, Cozy and warm fireplace in the family room. Large Gourmet’ kitchen. Good size 2 car garage, with extra storage is an added bonus. Large rear patio great to entertain friends and family. A neat and trim landscaping theme lends it’s self to so many peaceful activities for you and your family. Great schools, neighbors, shopping, dining, with access to nearby Santa Teresa country park & Santa
Teresa Golf course.

Recap of features:
Upgraded through out by original owner..
5 bedrooms , “one on the main level down stairs, upgraded baths.
Gourmet kitchen with large view windows.
2 car garage with roll up door and opener plus extra storage.
2,347 Sq. Ft. per builder & county records,
Good sized 65,663 S.F. lot per county records, “S.F . not confirmed by agent.”
Separate living, kitchen/dining/ family, breakfast nook areas.
Located on one of the finest streets in Neighborhood & Santa Teresa Park.

Asking price : $828,000
Any questions: Call Rick Funk (408)629-6099
C21Funk@aol.com or WWW.RickFunk.com
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7532 Aaron Place San Jose CA 95139 Asking $799,950

Welcome home to this beautifully updated and customized Santa Teresa Century Park Victoria model adjacent to foothills.. Views abound from this fine home that boast 4 good size bedrooms including the generous Master bedroom, and 2.5 baths. hard wood flooring, Cozy and warm fireplace in the family room. Custom Gourmet’ kitchen. Good size 3 car garage, with extra storage is an added bonus. Large side patio great to entertain friends and family. A neat and trim landscaping theme lends it’s self to so many peaceful activities for you and your family. Great schools, neighbors, shopping, dining, with access to nearby Santa Teresa country park & Santa
Teresa Golf course.

Recap of features:
Upgraded through out from windows, kitchen, baths, floors & security system.
4 bedrooms plus a den & 2.5 upgraded baths.
Gourmet kitchen with large garden & patio view windows.
3 car garage with roll up door and opener plus extra storage.
2,160 Sq. Ft. per builder & county records,
Over sized 6,098 S.F. lot per county records, “S.F . not confirmed by agent.”
Separate living, kitchen/dining/ family, breakfast nook areas.
Located on one of the finest streets in Neighborhood & Santa Teresa Park
Rick Funk Century 21 Alpha (408)629-6099 or C21Funk@aol.com
WWW.RickFunk.com