Real Estate Market Update

- The 30-year fixed mortgage rate fell for the fourth consecutive week and hit its lowest level in nearly seven months, according to Freddie Mac's Primary Mortgage Market Survey (PMMS) for the week ending June 8.

- The 30-year fixed rate mortgage (FRM) averaged 3.89 percent, down from last week when it averaged 3.94 percent.  the 15-year FRM this week averaged 3.16 percent, down from last week when it averaged 3.19 percent.  And the five-year Treasury-indexed hybrid adjustable-rate mortgage averaged 3.11 percent this week, unchanged from early June.

- Separately, the Mortgage Bankers Association (MBA) reported that monthly Mortgage Credit Availability Index (MCAI) dropped by 1.1 percent to 181.0 in May.  Two of the four component indices saw decreases (the Government MCAI was down fell by 0.3 percent) and two saw increases (the Conventional MCAI was up 0.2 percent and the Jumbo MCAI was up 0.8 percent).

Source:  HouseLogic, Mariwyn Evans

The decisions your local planning commission and zoning board of appeals make have a tremendous impact on the look and feel of your community.  Knowing how your local planning groups work and how you can play a role gives you a valuable tool in shaping your community's present and future.

Politics in Planning
The planning board, the community's elected officials, and you and your community residents all have a voice in the planning process.  Of course, politics and personalities can undercut the planning process, says Michael Blue, director of community development for the Highland Park (III.)  Planning Commission, especially when commission decisions come up for approval from elected city or county officials.

He notes that a community near his disbanded its planning commission because of disagreements between the commission and the town's elected officials.  Some communities also try to shut citizens out of the process by letting planning staff make many development decisions without public hearings.

But "there's clearly a trend toward more community participation and greater transparency in the process," says Greg Dale, partner at McBride, Dale, Clarion, and co-author of The Citizen's Guide to Planning, 4th edition.

A project in Blue's community shows how compromise can work:  A house of worship wanted to construct an outdoor patio for events.  Neighbors expressed concern at a public hearing about the light and noise it would add during evenings.  The project was approved by the planning board and the city council, but only after the group agreed to reduce the size of the patio and to not hold events after 10 p.m.

How Does Planning Work?
Most communities have some form of city or county planning commission.  In general, this volunteer board of local residents recommends to the community's elected officials how the community's land should be used - where a new shopping center will be located, whether the new subdivisions should be built with one home to an acre or three, or how to best convert city land into a park.  In a few communities, the planning board's decision is final.  Professional planners working for the city are also part of the planning process.

Voice Your View to Planners
Before a board approves a proposed land use, it'll hold a public hearing.  If your property is next to or within a certain distance of the proposed project, the commission will notify you by certified mail about the hearing.  Most town regulations also require that the commission publish a notice in the newspaper for two weeks or so before the hearing.  Or review planning commission minutes, which are often posted online and are available to the public at the planning office.

The public hearing on a project usually takes place after the planning board has reviewed and approved a preliminary plan for the project.  This plan will include drawings showing where the project's roads, open spaces, and buildings will be located.  The preliminary plan may also include studies on how the proposed land use will affect traffic, the environment, the town's infrastructure, and its schools.  In some cases, developers will hold neighborhood meetings before submitting a preliminary plan, but its not usually required.

Make Your Case
In larger cities, you may have to register online ahead of time to speak.  In smaller communities, just show up.  You can also send in written comments in most places.

If you attend a hearing, be as specific as possible about your concerns and how the development might affect your property or life.  If a retail superstore is planned, don't just say you don't like the store.  Provide concrete reasons:  It'll increase traffic or add to storm water runoff because of its parking lot.  And back it up.

Prepare for the hearing by reviewing your community's planning documents and zoning regulations to see how the proposal fits, suggests Dale.  All documents are available to the public, often online, although you may have to go to the planning office to review them.  If you think the project will generate too much traffic, for example, review the traffic study and see what it projects.  Look at where stop lights and stop signs will be.  If there's no traffic study and you have a reason to think that the project will increase traffic, you can request one.  The planning commission may agree to your request.

Beyond the Hearing
Depending on the results of the public hearing, the commission will often ask for further studies and modifications to the proposal before making a final decision.  But the commission's approval isn't usually the end.

In most communities, the city council or other local governing body must approve the commission's recommendations.  The governing body will pay particular attention to the financial impact of plans, as well as voter sentiment.  The two-stage process provides checks and balances in the planning process and gives you another opportunity to influence the decision.  A city council will often hold a second public meeting on a proposal, especially if it's controversial, says Blue.  Planners and elected officials agree "about 50% of the time," he says.

Source:  HouseLogic, Jeanne Huber

Finding drainage problems when they're smaller and easier to fix can save you thousands of dollars and plenty of headaches down the line.
Many drainage problems aren't so obvious.  Here's how the pros read some of the more subtle signs of bad drainage, and why you'll save big bucks if you tackle these problems now instead of later.

Sign #1:  Gushing Gutters
A mini Niagra over the edge of your gutter means dead leaves and debris are blocking the flow.  But you don't need a live gusher to tell you you've got problems:  Vertical streaks of dirt on the outside of gutters, mud spattered on siding, or paint peeling off the house in vertical strips are other sure signs.  If you don't take action, overflowing gutters can rot siding, ruin paint jobs, and cause structural damage.

Sign #2:  Downspouts That Dump
Each inch of rain that falls on 1,000 square feet of a roof produces more than 600 gallons of runoff -- enough to fill 10 bathtubs to the brim.  Dumping that much water too close to the foundation can send it right into the basement, where it can ruin furnishings, flooring, and all the stuff you swore you'd put on shelves one day.

Sign #3:  Cracks in the Foundation
Foundations often have small cracks that appear as houses settle over time.  Most are harmless, but bigger cracks bear watching.  Keep an eagle eye on cracks larger than 1/8- inch wide by marking the ends with an erasable pencil line.  Measure the width and jot it down.  If you notice the cracks are growing, you've got potential problems.

Sign #4:  Flaking and Deposits on Walls
If you see areas of white or gray crust on the walls, that's efflorescence -- mineral deposits left behind by evaporating water.  Or the wall may be flaking off in big patches, a condition called spalling.

Sign #5:  Mildew in the Attic
Sure, the attic might be a strange place to look for drainage problems, but mildew on the underside of the roof can be a tip-off to serious trouble at the ground level.

Sign #6:  Migrating Mulch
When soil doesn't drain properly, rain runs off in sheets, carving gulleys in the landscape, dumping silt on pathways, and carrying piles of mulch or wood chips where they don't belong.

Real Estate Market Update - Information You Should Know

- Mortgage applications increased 7.1 percent from one week earlier, according to data from the Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey for the week ending June 2, 2017.  This week's results included an adjustment for the Memorial Day holiday.

- The Market Composite Index, a measure of mortgage loan application volume, increased 7.1 percent on a seasonally adjusted basis from one week earlier.  On an unadjusted basis, the Index decreased 15 percent compared with the previous week.  The Refinance Index increased 3 percent from the previous week.  The seasonally adjusted Purchase Index increased 10 percent from one week earlier to its highest level since May 2010.  The unadjusted Purchase Index decreased 14 percent compared with the previous week and was 6 percent higher than the same week one year ago.

- The refinance share of mortgage activity decreased to 42.1 percent of total applications from 43.2 percent the previous week.  The adjustable-rate mortgage (ARM) share activity decreased to 7.4 percent of total applications.

- The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($424,100 or less) decreased to its lowest level since November 2016, 4.14 percent, from 4.17 percent, with points increasing to 0.34 from 0.32 (including the origination fee) for 80 percent loan-to-value ration (LTV) loans.  The effective rate decreased from last week.

- The average contract interest rate fro 15-year fixed-rate mortgages decreased to its lowest level since November 2016, 3.39 percent, from 3.42 percent, with points increasing to 0.43 from 0.39 (including the origination fee) fro 80 percent LTV loans.  The effective rate decreased from last week.

One of the most important aspects of purchasing a home is the neighborhood.  After all, you're not just selecting a new home, you're deciding on the community where you'll build a life.

When you find the right house, here are four things I can help you learn about the community it's in:

1.  Local Statistic
How are the local schools ranked?  What are the local crime statistics?

2.  Traffic and Commuting
See property details and photos, save searches, and add notes about what you liked

3.  Local Amenities
See property details and photos, save searches, and add notes about what you liked

4.  New Developments
See property details and photos, save searches, and add notes about what you liked

I can also help you to understand how the house you want compares to others like it in the neighborhood.  Now is a great time to buy, and I have a wealth of local market and community data to share with you.

Contact me to discuss your needs and I can help you pinpoint the neighborhood that will fit you best.

Felicia Jones, REALTOR
Keller Williams Realty, BRE#01977033
homesbyfelicia@kwrealty.com
http://www.feliciajones1.kw.com

​

It can be said that finding the perfect neighborhood is just as important as finding the perfect home.  With countless factors to consider, how can you narrow down your search to ensure you find the home and neighborhood that's right for you?

Here are three ways that we'll work together to find the neighborhood of your dreams:

1.  Walking Around the Area
From older, established communities with tree-lined streets and unique architecture to newer, more modern subdivisions, each neighborhood has its own unique personality.  Taking a few minutes to stroll around prior to looking at a potential home will give us an idea if the neighborhood meets your needs.

2.  Calculating Your Commute
At each home we visit, we'll take into account travel time to and from your workplace.  If public transportation is important, we'll look at homes that are in close proximity to transit lines. 

3.  Knowing the Amenities
Community pools, jogging paths, parks and other outdoor amenities may be available in certain neighborhoods.  Golf courses, recreation centers, libraries or other facilities could also be important when deciding on a potential community.

My commitment to locating your dream neighborhood is the key to finding your new home.  Contact me today to begin your home search.

Felicia Jones, REALTOR
Keller Williams Realty, BRE#01977033
homesbyfelicia@kwrealty.com
http://www.feliciajones1.kw.com

Let's Find Your New Home

When buying a new home, you want to feel confident that it has the potential to grow in value over time.  I recognize that many factors must be carefully considered when choosing a home, and I can help you sort through all of the details in order for you to feel more secure in your decision.

Choosing the Right Home and Neighborhood that Meet All of Your Needs Will Help You Feel Happier With Your Home For Longer
- This will allow for you to take advantage of any possible appreciation in your home's value.  My diligent research identifies which homes and neighborhoods meet your requirements and match your lifestyle.

Purchasing Your New Home At A Fair Price Could Increase the Chance For A Higher Return On Your Investment When You Decide to Sell
- By identifying motivated sellers, we'll negotiate the best price possible.

A Home That Needs Significant Repairs or Updates May Not Be A Wise Investment
- Walking you through the home inspection process and connecting you with my network of trusted professionals will help you understand the condition of potential homes.

My commitment to thorough research and in-depth market analysis is the key to finding your new home.  Contact me today to begin your home search.

Felicia Jones, REALTOR
Keller Williams Realty, BRE#01977033
homesbyfelicia@kwrealty.com
http://www.feliciajones1.kw.com

Info You Can Rely On

You know the saying about best-laid plans, right?  Even if you think you have everything budgeted for your new home, there's always something else to consider.  Here are 6 hidden costs of home ownership, so get ready!

1.  Furniture and Decor
This is especially true if you're sizing up!

2.  Unexpected Repairs
Disclosures and home warranties can help with this in the first year, but things may pop-up after that.

3.  Basic Maintenance
From pest control to carpet cleaning, this can add up each year.

4.  Yard Maintenance
If you don't already have them, you may need a mower, an edger, basic garden tools, and more-or money for a gardener.

5.  Utilities
Check local rates for water, electricity, gas, garbage, cable, and other services you use.

6.  Settling In
You may need to purchase things like shower curtains or cleaning supplies during the first few weeks in the home.  And probably more take-out dinners than usual!

Source:  Realtor.com

From extra bedrooms and bathrooms to more overall square footage, homes have been growing over the years, according to the U.S. Census Bureau's 2016 Characteristics of New Housing report.

In 1978, more than half of new single-family homes sold had three bedrooms and two bathrooms.  By 2016, half of new home buyers closed on had four or more bedrooms.  The largest share of homes sold, 40 percent, had three or more bathrooms while 31 percent had 2.5 baths.

The overall square footage of homes has been rising as well.

Check out the full story here:
http://www.realtor.com/news/trends/homes-getting-bigger-over-decades/

Source:  Business Insider

A startup out of Los Angeles wants to bring small, pre-fabricated living spaces ranging in size from 300 to 1,200 square feet into the backyards of the country's hottest real estate markets.

Cover, is a technology company that plans, designs, and manufactures backyard studios, in-law units, home offices, and guest rooms - collectively known as accessory dwelling units (ADU) - using machine learning and methods borrowed from the aerospace and automotive industries.

The company's long-term goal is to increase the housing supply in cities where the cost of living has become prohibitive, in the hopes of driving market prices down.

In January, legislation went into effect in California that makes it easier and cheaper for homeowners to build ADUs.  The state hopes to see the housing stock climb as a result.

If a homeowner is interested in putting in an ADU on their property, they can fill out a survey of 50 to 100 questions, which covers everything from land type to cabinet finishes.  For a one-time fee of $250, an algorithm gathers information on zoning and build codes in the area and returns multiple design options that meet the needs of the owner as well as city requirements.

Check out the full story here:
https://www.aol.com/article/finance/2017/06/06/a-startup-has-a-plan-to-solve-the-housing-crisis-with-cheap-back/22129179/