Monday, December 12, 2016

Alan Wang Realty Group Featured in Top Agent Magazine!

Honored to be Featured in the Top Agent Magazine.  Head to page 15 and 16 for the section on our team!
http://www.topagentmagazine.com/top-agent-magazine-nationwide-and-international-edition/



Monday, December 5, 2016

Property Taxes Are Due 12/10!

As a friendly reminder, the property tax deadline for filing is Saturday, December 10th. For your convenience, we've included the links below to 6 Bay Area counties:

Regards,
 
Alan Wang Realty Group

Monday, November 7, 2016

Linkedin ProFinder Contest Entry

1. Describe your business. What impact has it had on you, your customers, and/or your community?
We are in the business of helping our customers with the largest and most personal transaction of their lives; the sale or purchase of their homes.  These are homes that their children grow up in, first steps are taken, birthdays are celebrated and memories are made for a lifetime.  Due to how infrequent selling or buying a home occurs, it is often a daunting process for a customer to navigate an extremely steep learning curve.  It is inspiring for us to play such an integral role in such an important event in our clients lives.  It is what gets us up in the morning and our driving force everyday.
2. How would you leverage LinkedIn and LinkedIn ProFinder to maximize the impact of your business?

We were pleased to be one of the earliest Alpha testers of this product.  Our target is that Customers would find our proposals appealing, in order to give us the opportunity for us to have a consultation to see how we can fulfill and exceed their real estate needs.  This could be in regards to helping the customer to list and market their homes for sale, or understanding the customers requirements in the next dream home that they look to purchase.  We want the opportunity to be the team of choice for as many Linkedin customers looking for a real estate professional.

Monday, October 24, 2016

October 2016 Silicon Valley Real Estate Update

As we enter the winter season, the history of our local market points to a slower period in the real estate market, especially as we approach the holidays. This equates to a lower supply of homes on the market in conjunction with a reduced amount of Buyers as well.

Macroeconomy

The economy continues to hold steady in anticipation of this election year.  The Federal Reserve is holding interest rates steady in the short term, while signaling that a change is looming.  At this moment interest rates have held steady with some volatility on a daily basis but steady.  It remains to be seen how much the rate is increased by and even then it will take some time for that to affect mortgages.   Banks could also choose to throttle them up slowly as well.  The jobs reports continued to be mixed, though not drastic enough to point to the economy shifting in either direction.

Technology Microeconomy

The Silicon Valley technology sector has remained stable providing employment and ample opportunities.  The Nutanix initial public offering (IPO) makes this the second local technology IPO of 2016.  There are rumors of a Snapchat or Docusign IPO possibly next year.  Companies such as Uber and Airbnb are the most talked about in this discussion as possible 2017 candidates.  The recent acquisition to monitor is the Linkedin Microsoft acquisition, which is speculated to pay out employee stock plans.  Regardless IPO’s and acquisitions will inject funds towards much needed downpayments for local Buyers who are struggling to purchase a home in the high priced Bay Area.  Regardless, timing wise this would mean that Q3/Q4 of 2017 could be a busy one if these events do indeed unfold.

Local Housing Market

Summer inventory rose to its highest level since 2012.  In September, Buyers seem to have come back slightly in conjunction with a drop in inventory as well as canceled and withdrawn listings.   Many Summer Sellers were holding onto 2015 prices and unwilling to accept the offers that the market was giving them.

Homes with excellent schools in prime locations continue to sell for a premium and in a short amount of time.  Homes that have been fully renovated and move-in ready will garner a higher amount of offers and a price premium as a true differentiator in the marketplace.

Homes priced above $2M have seen longer days on the market and also homes over $1.5M depending on the location.  Single Family Homes less than $1.5M, especially those with good elementary schools, continue to see multiple offers and a good level of competition.  This is due to the fact that this is still an affordable bracket for many single or dual income families in the area.   Properties under the $1M price point continue to have multiple offers especially Single Family Homes.  Condominiums have seen resurgence as Renters are looking for an alternative to high rental costs and looking to leverage the tax benefits of home ownership.

Townhomes that have broken the $1M mark and especially those that approach the $1.5M mark are seeing Buyers pause as they decide whether or not to stretch and go for a Single Family Home instead.

Multi-residential homes continue to sell quickly due to low supply and high demand by investors in the market.  Investors continue to be major players in the bay area.

In Closing


If you are a Buyer it is a great time to look for a home during this season.  Though inventory is lower, Buyers tend to start shifting their focus towards the travels and the holidays, which often equates to less competition for you as a Buyer.  If you are a Seller, depending on your location, the lower inventory could make it so that you are the only house on the market for that given week and garner multiple offers.  The downside is also that the number of Buyers may not be as high as in the Spring season which means that you may have to temper expectations on price.  Reach out to us so that we can advise appropriately on your specific home.  We wish you and your families the best for the rest of the year and thank you for all of your support and referrals!

Join the Conversation!

We always welcome your comments and discussion!  Join the conversation on Linkedin! https://www.linkedin.com/pulse/october-2016-silicon-valley-real-estate-update-alan-wang

October 2016 Silicon Valley Real Estate Update

As we enter the winter season, the history of our local market points to a slower period in the real estate market, especially as we approach the holidays. This equates to a lower supply of homes on the market in conjunction with a reduced amount of Buyers as well.

Macroeconomy

The economy continues to hold steady in anticipation of this election year.  The Federal Reserve is holding interest rates steady in the short term, while signaling that a change is looming.  At this moment interest rates have held steady with some volatility on a daily basis but steady.  It remains to be seen how much the rate is increased by and even then it will take some time for that to affect mortgages.   Banks could also choose to throttle them up slowly as well.  The jobs reports continued to be mixed, though not drastic enough to point to the economy shifting in either direction.

Technology Microeconomy

The Silicon Valley technology sector has remained stable providing employment and ample opportunities.  The Nutanix initial public offering (IPO) makes this the second local technology IPO of 2016.  There are rumors of a Snapchat or Docusign IPO possibly next year.  Companies such as Uber and Airbnb are the most talked about in this discussion as possible 2017 candidates.  The recent acquisition to monitor is the Linkedin Microsoft acquisition, which is speculated to pay out employee stock plans.  Regardless IPO’s and acquisitions will inject funds towards much needed downpayments for local Buyers who are struggling to purchase a home in the high priced Bay Area.  Regardless, timing wise this would mean that Q3/Q4 of 2017 could be a busy one if these events do indeed unfold.
Looking Ahead to 2017

Summer inventory rose to its highest level since 2012.  In September, Buyers seem to have come back slightly in conjunction with a drop in inventory as well as canceled and withdrawn listings.   Many Summer Sellers were holding onto 2015 prices and unwilling to accept the offers that the market was giving them.

Homes with excellent schools in prime locations continue to sell for a premium and in a short amount of time.  Homes that have been fully renovated and move-in ready will garner a higher amount of offers and a price premium as a true differentiator in the marketplace.

Homes priced above $2M have seen longer days on the market and also homes over $1.5M depending on the location.  Single Family Homes less than $1.5M, especially those with good elementary schools, continue to see multiple offers and a good level of competition.  This is due to the fact that this is still an affordable bracket for many single or dual income families in the area.   Properties under the $1M price point continue to have multiple offers especially Single Family Homes.  Condominiums have seen resurgence as Renters are looking for an alternative to high rental costs and looking to leverage the tax benefits of home ownership.

Townhomes that have broken the $1M mark and especially those that approach the $1.5M mark are seeing Buyers pause as they decide whether or not to stretch and go for a Single Family Home instead.

Multi-residential homes continue to sell quickly due to low supply and high demand by investors in the market.  Investors continue to be major players in the bay area.

Local Technology Economy

The Nutanix initial public offering (IPO) makes this the second local technology IPO of 2016.  There are rumors of a Snapchat or Docusign IPO.  Companies such as Uber and Airbnb are the most talked about in this discussion.  The recent acquisition to monitor is the Linkedin Microsoft acquisition is speculated to pay out employees stock plans.  Regardless IPO’s and acquisitions will inject some much needed downpayment to for local Buyers who are struggling to amass the necessary downpyament to purchase a home in the high priced Bay Area.  Regardless, timing wise this would mean that Q3/Q4 of 2017 could be an exciting one if these events do occur.

In Closing

If you are a Buyer it is a great time to look for a home during this season.  Though inventory is lower, Buyers tend to start shifting their focus towards the travels and the holidays, which often equates to less competition for you as a Buyer.  If you are a Seller, depending on your location, the lower inventory could make it so that you are the only house on the market for that given week and garner multiple offers.  The downside is also that the number of Buyers may not be as high as in the Spring season which means that you may have to temper expectations on price.  Reach out to us so that we can advise appropriately on your specific home.  We wish you and your families the best for the rest of the year and thank you for all of your support and referrals!

Engage on Linkedin

Join the conversation on Linkedin!  Link is pending!

Thursday, August 11, 2016

August 2016 Silicon Valley Real Estate Update - Buyers Back in the Power Position

As we close out the summer months, it is key to note that the market has shifted from the red hot Spring season that was a Sellers market to one more favorable to Buyers.  In June, the market shifted and slowed to a more balanced market skewed in favor of Buyers in the majority of the Bay Area.  Subsequently, price appreciation has slowed in Q2 and in some locations even declining from their spring highs.  Cities that have traditionally been untouchable have been seeing slow downs such as Palo Alto, Los Altos, Mountain View, Sunnyvale, San Mateo and even San Francisco just to name a few.

Macroeconomy

The Federal Reserve has left interest rates unchanged and mortgage rates continue to be a bargain.  There seems to be anticipation for the election and many people are concerned and holding steady with major plans and purchases.  The job reports continue to show mixed results but consumer spending appears to be increasing overall.  The stock market experienced some choppiness though it has stabilized at the moment.  We are in a global economy, as the rest of the world struggles this also stifles our recovery given how interdependent world economies have become.

Cash inflows from outside of the United States have been heavily guarded since 2015 and cash purchases from abroad have dropped significantly.  Not only is it difficult to bring funds in from abroad, the majority of banks will not provide a loan for scenarios when they see funds coming from overseas.  Governments have all been clamping down on money laundering, which has a direct affect on investments especially real estate.

Local Technology Microeconomy

The key economic indicator for the Bay Area is the stock performance of the Technology sector, which is the source of Buyers down payments in this area.  Other than Twilio, which is based in San Francisco with 567 employees, there have been no major liquidity events in 2016.  Companies that have been on the IPO watch such as Uber, Airbnb and Dropbox have provided no indication on a timeline and this year’s market may not provide the most optimal timing of such an event.  Many employees are putting their plans on hold as they wait for this capital to fund their housing needs.

There have however been Mergers and Acquisitions (M&A) such as Microsoft’s purchase of Linkedin or Verizon’s purchase of Yahoo to name a few.  The concern with M&A activity is that they are often followed by layoffs, which would further put families housing plans on hold.

Another trend is around the slow down in funding to local startups.  More and more startups are being asked to demonstrate progress before additional rounds of funding are allocated.  The free flow of cash is being gated and also slows down hiring, out of state moves, down demand for housing and home purchases.

Buyers Corner

If you are a Buyer you have more choices on the market, more time to think about your purchase and less competition and at times none at all.  We have been able to actually use our negotiation toolkits of late, which has been refreshing.  If you have been thinking about buying, we suggest that you take advantage now while the market is on your side and Sellers are still adjusting to the new market it is a great time to jump in at a time of uncertainty while many are sidelined.

Sellers Corner

Sellers the market is still a favorable one to sell in, however instead of selling in one week, patience will be required due to the increase in inventory as Buyers have more choices.  The key is not to panic as selling a home in one week with multiple offers was never sustainable or normal in most other areas in the country.  We are excited for both Buyers and Sellers this summer as the activity is becoming more balanced which is trending towards a more normal market at least in the current seasons that we are in and approaching.

Fall and Winter Outlook and Beyond

Likely this shift will continue through the fall and winter, which is typical of the seasonality that we have started to see more of in the last 2 years.  2017 will be a year to watch once the elections have passed and perhaps we gain more stability in the markets, it is possible that the Federal Reserve may start to raise rates as well.  Overall the more balanced market is refreshing as the bull market of the last 4 years was not normal and unsustainable behavior.  We are excited for what is to come soon!

Join the conversation on Linkedin! https://www.linkedin.com/pulse/august-2016-silicon-valley-real-estate-buyers-back-power-alan-wang?trk=hp-feed-article-title-share

Friday, April 8, 2016

Silicon Valley April 2016 Real Estate Update

We would like to wish everyone a great start to the Spring season.  Despite a slower market and dips in prices during the fall of 2015, the first quarter of 2016 has returned with a vengeance.  The New Year kicked off with low inventory levels and aggressive Buyer overbidding resumed.  As the weeks have passed and more inventory has entered the market for the Spring season, the quantity of offers have declined in the higher end of homes with competition in the single digits, however the quality of offers remain high.  Homes under a million continue to see strong competition in the double digits.  We remain in a Seller’s market with more inventory targeted for the summer season.
Macroeconomy
The global economy continues to struggle.  Japan has deployed negative interest rates, China continues to see a slowdown in their market, Europe continues to struggle and the challenges with social stability in the Far East continues to weigh down the region.
The instability in the stock market has stabilized slightly, which has reduced the turbulence that affected the market last year.  A critical factor in our local Technology market, is the lack of liquidity as far as Initial Public Offerings (IPO’s) or acquisitions.  These types of exits create more down payment for local Buyers, further driving the aggressive Seller’s market.  Another concern is around the previously free flow of funding to startup companies has been drying up.  Investors are being more focused on results before offering another round of funding or doing so at lower valuations.  This is a situation that we should monitor.  Perhaps the biggest challenge that will directly affect real estate is the slowing down of hiring in the valley.  This is not a pervasive issue as of yet, but there has been a slowdown noted on the rate of hiring.
Yet in the end the United States economy continues to show steady improvement. Due to that fact, the Federal Reserve continues to signal that they plan to increase the Federal Interest rate by a targeted half percent in 2016.  We have seen mortgage interest rates fluctuate within a half a percent band, however rates continue to hover under the 4% mark for 30 year fixed mortgages and under 3% for the 7-year adjustable loan product.   It is yet to be seen how this will affect mortgage interest rates, thus far the rate hike in December has done little to impact mortgage interest rates.  Many economists speculate that it would take a 1% increase to materially impact housing prices.
Silicon Valley Hotspots
The Peninsula
The Peninsula is the area between San Francisco and the Southbay.  This area continues to have very low inventory and the offers have gotten even more aggressive.  Serious Buyers have become exhausted by the competition and have gotten extremely aggressive in their overbid prices in order to win.  This is likely not going to improve anytime soon.  Often in a family one spouse works in San Francisco while the other in the South Bay.  The Peninsula will continue to be a popular mid-point for most families.
Milpitas/Berryessa San Jose
The upcoming BART expansion into Milpitas and Berryessa has created an increase in demand for housing in both areas.  The number of Buyers have been in the double digits and price appreciation has become extremely aggressive.  This is one of the last areas that have a decent elementary school coupled with prices under a million.
Single Family Homes Less than a Million
Most would consider a million dollars as a large amount for a home and “should” equate to the home of our dreams.  Anywhere else in the nation one would have that dream home for this price. Unfortunately in the Silicon Valley, the million dollar home close to work typically equates to a Condominium or Townhome.
The majority of Buyers tend to prefer a Single Family Home over a Townhome or Condominium.  The key reason is the independence to make changes to the home without a governing authority, the extra cost of that governing authority, as well as having a lot that is yours tends to provide options for homeowners for years to come.
Prices have risen in all locations and staying under a million has become more and more difficult.  As a result Buyers have been going further and further South in the South Bay and also towards the East Bay.  Areas such as South San Jose, Berryessa San Jose and Milpitas has been the latest competition areas for the coveted Single Family Home.  Others are pushing further East to Livermore, Dublin, Pleasanton and San Ramon areas due to affordability.
Pricing Tiers
Homes in great school districts continue their dominance and likely this will never change in our local market.  There has been a slight cooling in properties in the high millions to two million ranges.  The simple fact is that the average Silicon Valley worker would need to have a large down payment in order to make this a manageable monthly expense.  It is not surprising that this group is shrinking as they get into homes.  Again the quantities of offers are lower, but the quality remains high.
Q3/Q4 Real Estate Outlook
Although this behavior is ultimately unsustainable, 2016 is likely not the year that the market balances out.  The last 2 years we have seen seasonality in the fall season and it is likely that we will see that appear this fall as well.  It will be interesting to see what happens if interest rates do move upward and if that will calm Buyer activity at all.  In short, if you are a Seller looking to sell your home, now is the time to do so.  If you are a Buyer, interest rates remain at historical lows, which makes it worthwhile for you to lock in a long-term rate.  Of course if you are not in a hurry, you could wait until the fall period to make the move.
We wish you a wonderful Spring season and here's to an exciting season in Real Estate!

Wednesday, February 3, 2016

Silicon Valley January 2016 Market Update

We hope the new year is starting out well with all of your new goals and endeavors!  We are excited to have just celebrated our 13 year anniversary in the business and thank you for trusting us to fullfill the real estate needs of your friends and family!
January Market Update
In our last update the market cooled down in the fall and into the holiday months.  As the new year kicked off, we have had an uncharacteristically low amount of listings on the market.  We have returned to multiple offer situations.  Examples just in the last week we have run into are 31 offers in Milpitas, 5 offers in Burlingame, 3 Offers in Cupertino and 12 offers in West San Jose.  If you are a Seller it is highly advised that you sell your home as soon as possible, as there are very few homes on the market resulting in less competition.  Contact us for a custom evaluation.  Many of our peers have inventory coming on the market and there maybe an influx of homes coming shortly.  If you are a Buyer be ready to compete for houses or wait for more inventory to come onto the market.
Why the Stock Market Will Hurt Silicon Valley Real Estate 
The stock market continues to fluctuate day by day with an overall trend pointing downward.  Led by the China stock market and falling oil prices, there are major concerns that are dragging down equity markets.  We believe that this will ultimately have a direct effect on home prices in the coming years.  In 2015 with foreign cash inflows limited, Bay Area Technology employees were the key drivers of home purchases with their restricted stocks and stock options.  Decreases in the value of the stock market will directly impact the downpayments of Silicon Valley Buyers, reducing buying power and loan affordability.  Also IPO’s may also be delayed if market conditions are not favorable as well.  This is a dynamic to monitor in the longer term.

Join the conversation on Linkedin https://www.linkedin.com/pulse/silicon-valley-january-2016-real-estate-update-alan-wang

New Listing 3164 Kenland Drive in San Jose! www.3164Kenland.com
We are pleased to announce our new listing in San Jose!  Abundantly Bright Ground Floor Corner End Unit in South San Jose. Property boasts Hardwood Floors, Two Toned Paint, Recessed Lighting and Crown Molding throughout the home. Granite Countertops, Oversized Tiled Floors in Kitchen and Bathrooms. Patterned tile design in the showers. Convenient In-unit Laundry and 2-car Garage Enclosed Garage. Enjoy the Front Patio with a View of the Greenbelt. Walkable to Caltrain, Drive-in Movie Theatre and Local Schools. HOA fee of $290 includes Community Pool, Water, Cable, Roof, Exterior, Landscaping and More!

Pre-Market Listings

As part of the Alan Wang Realty Group network you have exclusive insider information on upcoming listings in red-hot neighborhoods.  If you or someone you know would like an off market opportunity to avoid competition let us know!  These listings will hit the market but have unique situations that could be a win/win for everyone.  More details on the listings below.

Make Me Move!
  • Cupertino Single Family Home – Excellent schools! Sedgwick Elementary, Hyde Middle and Cupertino High.  5 Bedrooms, 4 Bathrooms, 4,100 square feet in the process of expanding to 4,725 square feet.  Built in 2002, Asking price is $3.6M Seller says to make them move! 
  • Mountain View Single Family Home Built in 2012 – 3 Bedrooms and a Den, 3.5 Bathrooms, 1,568 Square Feet.  Asking price is $1,850,000, Seller would like you to make them move!
Upcoming Listings
  • Highly coveted Varsity Park home in Mountain View with Los Altos Schools!  In a prime location with a close commute to Linkedin and Google, quickly access Downtown Mountain View, walkable to Varsity Park excellent schools Springer, Blach, Mountain View/Los Altos High Schools.  Seller’s are looking for flexibility on the close date as they need to find another property in the same neighborhood, lots of potential
  • Executive San Jose Almaden property 4 Bedrooms and a Bonus Room, over 3,300 square feet of living space on a large 8,000 square foot lot, with a 3 car garage, excellent schools in a great neighborhood.  Seller’s looking for a flexible Buyer who can provide a rent back 
  • Convenient Sunnyvale Condominium located in close proximity to Technology giants such as Apple, Linkedin and Google.  Quick access to highways and walkable to local park.  Attends Homestead High School.  Seller currently has a tenant in the property until March.  Contact us if you are interested in this opportunity  
  • Large End Unit Townhome at Creekside Village in Morgan Hill, oversized backyard, multiple amenities such as a clubhouse, pool, spa, sauna, exercise room, tennis courts, and children’s playground