Flash! Hillary’s In Downtown San Jose Friday

By Alicia Lanier, REALTOR

Senator Hillary Clinton, one of the last two candidates standing in the Democratic Presidential Campaign, will be in Downtown San Jose on Friday.

Here are the details:

When: Friday, February 1, 2008 at 4:00 PM – 6:30 PM
Where: San Jose Convention Center – South Hall 435 South Market Street San Jose, CA

General Area: Public entrance on Market Street (East side of the building)

This is your opportunity to see and hear Senator Clinton at one of her last campaign stops before Californians go to the polls on Tuesday, February 5. Doors open at 4 p.m. on Friday. The pre-program is at 5:15 p.m. with the main program at 5:45 p.m. For questions or to RSVP, call (408) 410-6933.  I suggest you take public transportation.

No word yet whether Senator Barack Obama will visit San Jose prior to the Super Tuesday primary. However, I’d bet the best opportunity would be on Saturday (Feb. 2) because at 1 o’clock on Saturday is a Barack Obama for President Rally at  the Mexican Heritage Plaza in East San Jose. Rally speakers will be our own Silicon Valley Congresswoman Zoe Lofgren, Senator John Kerry, and Luis Valdez.

Alicia Lanier is a REALTOR and member of the Coldwell Banker Diamond Society – Top 8% of Agents Internationally  www.AliciaLanier.com  408-491-1634

Toilet Rugs and Other Decorating Mistakes

By Alicia Lanier, REALTOR

I know homeowners who live a clutterfree life. In short, they practice the credo of immediately discarding or recycling any furniture or accessory that they decide they don’t love, need or think someone else could put to better use. Needless to say, their home interior is always awesome, styled with incredible taste. However, I suspect most folks are like me: They probably hold onto too many items long past the “expiration” date.

Take toilet rugs, for example. This, says HGTV.com, definitely makes their Top 25 Decorating Crimes list. I’ve never committed that particular mistake, but I have violated #24: Too many photos. Yup, along with the requisite Ancestor Portrait, I even display a photo of my long-deceased grandmother, as a teen, and her cousin on horseback in the Colorado Rockies circa 1910. Not to mention the myriad pics of my kids, their kids, our pets, my friends, etc etc. scattered on any level surface.

How about you?  How does your your questionable decor show up on HGTV.com’s fearless exposé of the most common decorating bloopers, from clashing fabrics in the living room to furniture that is just wrong!? HGTV.com enlisted some of today’s hottest interior designers to put together a Top 25 “outdated, out of place, disproportionate, lopsided, over matched, undressed, uncomfortable” … well, you get the idea. You might want to check it out … for a giggle, of course.

Alicia Lanier is a REALTOR and member of the Coldwell Banker Diamond Society – Top 8% of Agents Internationally  www.AliciaLanier.com  408-491-1634

Fed Cuts Short-Term Interest Rates – Again

By Alicia Lanier, REALTOR

Apparently the Federal Reserve sees a strong change of a recession in our country’s future. What else would explain its unprecedented decision to again cut two key short-term interest rates today, this time by half a percentage point.

The Fed slashed its target for the federal funds overnight rate to 3 percent, and the discount rate to 3.5 percent. This was only eight days after its cut in both rates on January 22, 2008, for a total 1.25 percent in total short-term interest-rate cuts.

“Financial markets remain under considerable stress, and credit has tightened further for some businesses and households,” Federal Reserve committee members said in its statement. “Moreover, recent information indicates a deepening of the housing contraction as well as some softening in labor markets.”

To read how the rate cuts will impact you, see my blogpost of January 23, 2008, How Does the Federal Reserve’s Big Rate Cut Affect You and Silicon Valley Home Buyers? 

Alicia Lanier is a REALTOR and member of the Coldwell Banker Diamond Society – Top 8% of Agents Internationally  www.AliciaLanier.com  408-491-1634

Two “Steals” in Silicon Valley’s Prestigious Willow Glen Neighborhood: Both are Under $500,000

By Alicia Lanier, REALTOR

The cachet of San Jose’s Willow Glen neighborhood is well-known among Silicon Valley home buyers. This prestigious enclave of eclectic historic and newer homes with prices into the multi-millions … many with spacious lots on quiet tree-lined streets … also boasts a quaint Downtown with many popular, trendy boutiques and restaurants.

So, if you’re on a limited budget but long to live in the 95125 zip code (and consider yourself very handy at “fixing up”), now you can buy a Willow Glen address for under $500,000 – and even have your choice among two homes.  Check it out ….

1604 Mackey Ave in Willow Glen

First, there’s 1604 Mackey Avenue. At 913 sq. ft., this modest cottage is not huge but it does have 3 bedrooms and hardwood floors. Or, since it’s on a 6,500 sq. ft. lot, you could follow the lead of two houses across the street which are slated for tear down. Both are to be replaced with a park and riverwalk to connect with the Downtown Riverwalk, but you could “scrape” and build a new home with a nice view. Price: $499,000. Days on Market: 187.

Then, there’s 911 Curtner Avenue (sorry, there’s no photo in the MLS), an 860 sq. ft. home near Lincoln Avenue, the “heart” of Willow Glen.  This 1-bedroom/1 bath has no heating or cooling … a true “contractor’s special” or “scraper” … on a deep 5,660 sq. ft. lot. Price: $499,000. Days on Market: 156.

Contact me if you want to hear more or see either of these – or any other homes in Willow Glen or beyond. Or, let me know if you have a home that you are considering selling now or in the near future.

Alicia Lanier is a REALTOR and member of the Coldwell Banker Diamond Society – Top 8% of Agents Internationally  www.AliciaLanier.com  408-491-1634

Silicon Valley Home Buyers Give Three Cheers for House Plan to Raise Cap on Conforming Loans

By Alicia Lanier, REALTOR

You could hear the cheers and high-fives … and sighs of relief … all across California Friday as Congressional leaders working on an “economic stimulus package” to stave off recession tentatively agreed to raise the $419,000 cap on conforming loans at least through the end of the year.

The immediate effect would be lower home loan rates for buyers in pricey markets like ours here in the Silicon Valley and hopefully jumpstart housing sales in some of the sluggish housing areas.

The plan – which also includes the much-mentioned tax rebates for American wage earners – was agreed upon by Democratic and Republican members of the U.S. House of Representatives and would allow government-sponsored Fannie Mae and Freddie Mac to buy mortgages up to 75 percent more expensive than the current $417,000 limit. The Senate and White House still must sign off on the proposed stimulus plan – and the sooner the better.

Both the California Association of Realtors (CAR) and the National Association of Realtors (NAR) have been pushing for a permanent expansion of the Fannie and Freddie limits. NAR calculates that borrowers could save $3,000 to $5,000 per year in reduced interest costs as a result and projects up to 210,000 foreclosures could be prevented since refinancing into lower-rate loans would be easier.

Meanwhile, the Association of Bay Area Governments, in its annual economic forecast, predicted today that the Bay Area probably won’t slide into a recession this year, but it will come close with slowing job growth and a continued housing slump. But, the group says, the Bay Area won’t lose jobs, the way it did during the dot-com crash. 

Related Post: November 29, 2007, Affordability Issues for Silicon Valley Home Buyers Deepen with Feds’ Jumbo Loan Decision for ‘08

Alicia Lanier is a REALTOR and member of the Coldwell Banker Diamond Society – Top 8% of Agents Internationally  www.AliciaLanier.com  408-491-1634

How Does the Federal Reserve’s Big Rate Cut Affect You and Silicon Valley Home Buyers?

By Alicia Lanier, REALTOR

By now I’m sure you know that the Federal Reserve slashed two key interest rates yesterday by 3/4 of a percentage point, an unexpectedly high rate cut, to help stave off a recession and quiet the financial markets. Happily, stock market investors reacted positively today as the Dow soared nearly 300 points, ending a 5-day losing streak.

So what does this rate cut mean for consumers? The Federal Reserve lowered its federal funds rate to 3.5 percent from 4.25 percent, which impacts how much consumers pay on credit card debt, home equity lines of credit and auto loans,.  This marked the biggest one-day rate move by the central bank since it cut its discount rate by a full percentage point in December 1991, a period when the country was struggling to get out of a recession. The rate cut is designed to stimulate the economy, which includes the housing market, by:

• Helping more individuals qualify for loans and increasing an individual’s purchasing power; and
• Positively impacting home equity lines of credit.

How will the rate cut affect consumers? The cut will affect consumers in a variety of ways:

• Those who have home equity lines of credit that are tied to prime or short term Adjustable Rate Mortgages (ARM) could see an immediate reduction in their interest rate.
• Those consumers who have adjustable rate mortgages that are tied to key indexes like the One Year Treasury Bill, 12-month Treasury Average and LIBOR Index may receive the benefit of this reduction as the indexes start to move lower in conjunction with lower rates.

What the lending experts are saying.  Robert Reid, President and CEO for Mortgage Banker Princeton Capital released the following statement on Tuesday following the cut, “The rate cut bodes well for both home buyers and homeowners with adjustable rate mortgages.  The cut also puts further downward pressure on mortgage rates.  Rates have been moving down the last several months with the previous Federal Reserve cuts, so today’s action will continue this movement which increases home affordability.  The conforming rates were at a two-year low prior to the cut and will likely decrease further which will help push jumbo rates down further as well.  Lower rates increase affordability which should motivate more homebuyers to get into the market sooner rather than later.”

TIP FOR BUYERS: This may be the time to buy a home, especially if owning a home is going to be a long-term commitment.  Interest rates remain at attractive lows; this increases an individual’s purchasing power and makes the mortgage payment more manageable. In some SV neighborhoods, prices have softened a bit as homes for sale inventory has grown. All this is leading up to a very strong market for Silicon Valley home buyers.   

Alicia Lanier is a REALTOR and member of the Coldwell Banker Diamond Society – Top 8% of Agents Internationally  www.AliciaLanier.com  408-491-1634

Why Owning a Silicon Valley Home is Smart

By Alicia Lanier, REALTOR

Because our prices are perceived as ”unaffordably high” in the Silicon Valley, it’s tempting for some people to continue renting insteading of buying. Here are a few reasons courtesy of the National Association of Realtors about why you should – if at all possible -  save up to take the plunge into home ownership.

Tax Benefits. The U.S. Tax Code lets you deduct the interest you pay on your mortgage, property taxes you pay, and some of the costs involved in buying your home

Gains. Between 1998 and 2002, national home prices increased at an average of 5.4 percent annually. And while there’s no guarantee of appreciation, a 2001 study by the National Association of Realtors found that a typical homeowner has approximately $50,000 of unrealized gain in a home. (And, if you’ve been paying attention, here in the Silicon Valley, some homes have appreciated upwards of 50 percent since the New Millenium!)

Equity. Money paid for rent is money that you’ll never see again, but mortgage payments let you build equity ownership interest in your home.

Savings. Building equity in your home is a ready-made savings plan. And when you sell, you can generally take up to $250,000 ($500,000 for a married couple) as gain without owing any federal income tax.

Predictability. Unlike rent, fixed-rate mortgage payments don’t go up over the years so your housing costs may actually decline as you own the home longer. However, keep in mind that property taxes and insurance costs will rise. (Do read all the fine print when signing up for an Adjustable Rate Mortgage (ARM) that will “reset” to a higher rate.)

Freedom. The home is yours. You can decorate any way you want and be able to benefit from your investment for as long as you own the home. (A caveat: Condo owners will have certain restrictions based on a Homeowner Association’s policies so read them over before buying.)

Stability. Remaining in one neighborhood for several years gives you a chance to participate in community activities, lets you and your family establish lasting friendships, and offers your children the benefit of educational continuity

To calculate whether renting or buying is the best financial option for you, use Ginnie Mae’s online calculator.

TIP: Ready to look? Browse all homes for sale in the Multiple Listing Service at my website.

Alicia Lanier is a REALTOR and member of the Coldwell Banker Diamond Society – Top 8% of Agents Internationally  www.AliciaLanier.com  408-491-1634

California Health Care Reform Battle Heats Up As Governor, Speaker File Ballot Initiative For Fall

By Alicia Lanier, REALTOR

California’s health care reform battle moved to center stage in the 2008 election year with the recent filing of a ballot initiative by Assembly Speaker Fabian Nunez and Gov. Arnold Schwarzenegger.  

If passed in a November 2008 election, the initiative would go into effect in 2009 to help finance the Nunez-Schwarzenegger health care compromise plan embodied in Assembly Bill x1.1 by almost doubling the state tax on cigarettes to $1.75/pack.

The stage was set for the drama of financing through a ballot initiative in mid-December when AB x1.1 passed the California Assembly 46-31 in the special Legislative session. All our SCC assemblymembers voted yes in support of this compromise legislation to the single-payer plan: Assembymembers Jim Beall (AD 24), Joe Coto (AD 23), John Laird (AD 27), Sally Lieber (AD 22), and Ira Ruskin (AD 21).

California Health Access says this plan takes major steps in health reform far beyond the much-discussed Massachusetts reform of 2006.  In an 8-page analysis, Health Access says the ABx 1.1 bill would …

• Provide a broader benefit to California consumers than what was passed in Massachusetts 
• Has a much more stable financing structure of significant new dollars to improve the state’s health care system, and
• Goes far beyond Massachusetts in trying to control health care costs.

On Wednesday morning, January 23, AB x1.1  will be heard by the Health Committee of the California State Senate. This committee is chaired by Senator Sheila Kuehl who introduced SB 840, the single-payer health care plan endorsed by many progressive groups and that polls show has growing grassroots support. Silicon Valley Senator Elaine Alquist  is also on the committee.

Filing of the ballot initiative kicks off what is expected to be a costly health care battle in 2008 pitting the two state leaders and their allies against some powerful opponents. Expected adversaries include state business groups, the tobacco industry, drug companies and Blue Cross, California’s largest insurer – plus California Health Care for All and the California Nurses Association, both of which support SB 840 and a single-payer system of health care.

Organized labor is split on the compromise plan. One of the influential unions that supports it, the Service Employees International Union (SEIU), is expected to take a lead role in collecting signatures to put the ballot initiative on next November’s ballot and in persuading voters to approve it.

If AB x1.1 is approved by the California Senate, the health care plan would provide medical coverage starting in 2010 to 3.6 million people in California, including 800,000 children, who don’t have insurance now, backers say.

The proposed 2009 cigarette tax would help pay for the plan. It is higher than the $1.50-a-pack surcharge that the state leaders had previously announced in connection with the bill approved by the Assembly on Dec. 17. But it is a middle ground between the $1.50 Schwarzenegger had wanted and the $2-per-pack tax preferred by Nuñez. The state’s current cigarette tax is 87 cents a pack.

The plan’s other revenue sources would include a fee on employers ranging from 1% to 6.5% of their payroll, depending on the size of the payroll. The money would go into a new California Health Care Trust Fund to help those who cannot afford it buy insurance. Companies that spend the required amount on healthcare for their employees would be eligible to receive credit on their taxes for the fees they pay to the state. New fees would be levied on hospitals.

California Health Care for All at www.onecarenow.org is asking SB 840 supporters to ask their state senators to vote against AB x1.1. On their website, the organization asserts:

Senate Bill 840 is the solution to our health care crisis. The One Care Now Campaign supports Senate Bill 840health care reform proposal in Californiathat will provide high quality health care for all while controlling costs. We reject ABX1 1 and any other junk insurance compromise between the Governor’s plan and the Assembly Speaker’s that doesn’t provide universal coverage and funnels most healthcare dollars through private health insurers, which are the primary obstacles to real healthcare reform. The public doesn’t want a last minute, back room rush job. A poll found more than two-thirds of voters — a margin of 68 percent to 25 percent — said they prefer “making sure we pass healthcare reform that gets it right and improves the system, and not take the risk of passing bad legislation.”

Despite HCA’s impassioned appeal, some longtime single-payer advocates have seen the writing on the wall. Along with Silicon Valley assemblymembers, they have begun urging a pragmatic (read: compromise) approach to health care reform in California in 2008.

See Related Post in Archives: “Trick” or “Treat” for Health Care Reform, published October 30, 2007

Alicia Lanier is a REALTOR and member of the Coldwell Banker Diamond Society – Top 8% of Agents Internationally  www.AliciaLanier.com  408-491-1634

California Tax Form Typo Could Cause You to Miss Your Full Home Loan Interest Deduction

By Alicia Lanier, REALTOR

The biggest annual tax deduction for most of us is the interest we have paid for our home loans in any given year. So, if you are planning to use the printed California tax form, be aware there’s a typo on the print form that could cost you to miss out on  some of your interest deductions.

About 2.4 million paper 2007 California tax forms mailed to taxpayers – and distributed to libraries and post offices - have an error on Schedule CA of Form 540 where you are asked to insert an amount from Schedule A of your federal 1040 form to adjust for California rules. The erroneous California form instructs you to insert the amount for a single deduction on line 13, instead of the total for five deductions on line 15, on Schedule A.

Taxpayers who follow the instructions on the form rather than the instruction booklet, which is printed correctly, will miss out on four interest deductions: for home loans, other types of mortgage interest and fees, and investments. Downloadable tax forms on website  www.ftb.ca.gov have now been fixed and developers for tax preparation software  have been alerted as well. But the print forms are still in circulation.

On a more positive note, the California Franchise Tax Board has improved its most popular online services, to make them easier to use for individual taxpayers. Every little bit helps at tax time.

Alicia Lanier is a REALTOR and member of the Coldwell Banker Diamond Society – Top 8% of Agents Internationally  www.AliciaLanier.com  408-491-1634

‘07 Condo Prices Up in Most Silicon Valley Cities

By Alicia Lanier, REALTOR

Condos and townhomes in only two Silicon Valley cities – Cupertino and Morgan Hill – showed a dip in median selling prices during 2007, according to the stats from the Multiple Listing Service (MLS) while median prices rose in San Jose and 10 other cities. Cupertino’s median sales price for a condo decreased to $656,000 in 2007, down from $669,006 the previous year; Morgan Hill’s median was $490,000, down from $499,500.

Although total sales volume for all cities was only $2.1 billion in 2007 – down from $2.8 billion the previous year – the number of condos/townhomes sold actually increased in Cupertino, Los Altos, Los Gatos, Saratoga and Sunnyvale. Note that these are among areas usually considered to have “good” schools.

Proving once again that home value is all about location: The top selling price in 2007 for a Silicon Valley condo or townhome was $2.2 million for a 2,361 sq. ft. 3-bed, 2.5-bath condo at 325 Channing Ave. in Downtown Palo Alto (photo below). The three-year-old condo has a gourmet kitchen that opens to a spacious living-dining room, high ceilings, fireplace, and a master bedroom suite with deck, upgrades and designer touches throughout.

Here are the cities that experienced higher median prices for condos/townhomes in 2007:

Campbell – $549,000 (median price in ‘07); $528,000 (median price in ‘06)
Gilroy – $410,000 ($372,500)
Los Altos – $879,000 ($696,250)
Los Gatos – $740,000 ($650,000)
Milpitas – $549,437 ($520,000)
Mountain View – $608,750 ($559,500)
Palo Alto – $760,000 ($675,500)
San Jose – $485,000 ($470,000)
Santa Clara – $481,500 ($455,000)
Saratoga – $646,975 ($650,000)
Sunnyvale – $574,950 ($555,000)

Sales volume increased in the following cities:

Cupertino – $115,802,821 (sales for 2007); $107,783,786 (sales for 2006)
Los Altos – $47,747,440 (‘07); $47,713,694 (‘06)
Los Gatos – $85,215,505 (‘07); $76,373,142 (‘06)
Saratoga – $36,465,800 (‘07); $30,687,864 (‘06)
Sunnyvale – $181,545,813 (‘07); $177,567,036 (‘06)

TIP FOR BUYERS: The market slowdown in the final months of 2007 left large numbers of homes for sale. At year’s end, there were about 32% more condos-townhomes on the market than the same time last year.  Numbers of condos-townhomes for sale was up in Gilroy, Los Altos, Morgan Hill, Mountain View, San Jose, Santa Clara and Sunnyvale. There’s more time to look since the  average number of days a condo stayed on the market was up in most cities and the average days on market overall is 54 days. Want to see the stats or buying opportunities for your preferred city or neighborhood? Want a copy of   “7 Reasons to Own Your Home“? Just send me your request and/or home buying preferences in the comment box below or contact me by phone or e-mail.

Tip for Sellers: If you plan to sell in 2008,  make sure your condo or townhome is in show stopping condition. Ask your HOA what their maintenance plans for exterior paint or other updates are for 2008. Buyers in this market are picky-picky (as well they should be, said one of my friends.) They are looking for great value and great condition … make sure your home is both. I invite you to ask for my free report: Tips for Selling Your Home for Top Dollar … just send me a message in the comment box below or contact me by phone or e-mail.

Alicia Lanier is a REALTOR and member of the Coldwell Banker Diamond Society – Top 8% of Agents Internationally  www.AliciaLanier.com  408-491-1634

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