View tour of home on Facebook https://www.facebook.com/reel/683153217378879
Blog
Will YIMBY Create Increased Condo Demand?
A recent look at YIMBY vs NIMBY said that a person's attitude about high-density housing was strongly affected by how urban centers were widely viewed when that person was about 18. Boomers were about 18 years old at a time when urban centers had numerous problems reported. When other generations were 18, urban life was viewed as having more activities, parties, and nightlife. Other generations were 18 when suburbs were claimed to be resource-wasteful and caused excessive ecological damage.
Currently Sunnyvale house prices are growing faster than Sunnyvale condo prices. This could be due to a different proportion of renters vs owners for condos vs. houses. It could be due to houses typically being larger than condos.
It should be noted that increased mortgage interest rates have increased the cost of buying a condo. Flat prices do not mean demand is falling.
Will the attitudes of new generations drive the demand for condos and thus their prices up? More discussion is posted at https://julianalee.com/blog/nimby-yimby-condo-demand/
Price Appreciation vs DOM
Although home buyers and home sellers should know days on market in order to make decisions, DOM is not a good way to predict house price appreciation.
House price appreciation in Sunnyvale has differed significantly from that in Daly City.
Days On Market has been low in Sunnyvale since 2012.
Although Days On Market in Daly City has had more volatility during 2023 and 2024 than Sunnyvale, it has also been low since 2012.
Days On Market does not appear to be a good indicator of house price appreciation.
Proposition 19: Death Tax & Proposition 13 Slow Elimination
The average Silicon Valley Homeowner used to be able to leave his home to his children as part of his estate planning. There were tax advantages just as there are for inherited 401k plans. Many parents hope to create a family home or business that will help their children and possibly their grandchildren. Proposition 19, promoted as “Home Protection… (for) … Victims of Wildfire” had the more significant impact of making it difficult to create an inherited family home as part of your estate planning. Previously, there would be no property tax reassessment when a principal residence was transferred to a child. Proposition 19 only shelters $1M of increased value from new taxation, and only if the child uses the home as his principal residence. If you have two or more children, one of them would essentially have to buy out the interest of his sibling(s). A mortgage to do this would be much more expensive than a standard home purchase mortgage.
A Silicon Valley estate planning attorney, John C. Martin, discussed this and other issues at a 2023 seminar held at JLee Realty. A recording has been posted at https://julianalee.com/reinfo/proposition-19.htm.
Venture Capital Is Growing In Silicon Valley
The news media has reported both tech companies and venture capital firms leaving Silicon Valley. Indeed the percentage of all US venture capital activity has declined in the Bay Area over the last decade. However end of year 2020 venture capital data (from PitchBook) shows over 2,500 VC deals completed in the Bay Area which is over that of 2019, with more data still expected.
Over the last five years, over $151 billion of fundraising has happened in the Bay Area which exceeds the rest of the US combined. Bay Area VCs have funded 17 of the 22 US companies to ever receive a private valuation of $10 billion or more. Los Angeles had 3, New York had 1, and North Carolina had 1. Over the past five years, 23.6% of completed VC deals in the US, and 40.9% of the capital invested, have gone to Bay Area-based companies.
Although real estate prices can move quickly, any changes in Silicon Valley real estate trends caused by the venture capital industry growing in other areas, are probably quite a few years away.
California Good Neighbor Fence Act
When deciding to fix or replace a property line fence, you need to understand the California Good Neighbor Fence Act. It makes both neighbors equally responsible for the cost of repairing or replacing a property line fence. A key requirement is that you have to notify your neighbor(s). Most people would talk with their neighbor but few would normally follow the steps specified (30 days’ prior written notice to each affected adjoining landowner).