The
Real Estate Digest
A California Real Estate Newsletter
Issue 16, July, 2014
Dear Readers, 
  
Hello, and welcome to our Second Edition of the new and improved Real Estate Digest. 
 
This edition is meant to convey a growing sense of optimism and prosperity buttressed by growth, good numbers, foreign investiture, and growing awareness. All in all, we here at Schneider Estates are happy to have data to support our tireless optimism.

Good Times Ahead?

California Showing Strong Numbers.

 

Unemployment Rate Shrinks. California's unemployment rate dipped to 7.4% in June. According to an article in the Los Angeles Times, this signifies a milestone for the California economy, having reached pre-recession levels. The national economy, as well, is greatly influenced by California, a leader in technological, biomedical, and market venture capital innovation. All in all, this is great news! The highest growth areas were in education and health services and trade, transportation and utilities, which added 12,000 and 11,000 respectively. 


Lower Interest Rates. Lower interest rates and stabilizing home prices combined have boosted home sales in June, according to a report by the California Association of Realtors (C.A.R.)  


 

"Home prices are finally increasing at a healthier pace, and the smallest year-over-year price gain in more than two years suggests that prices are stabilizing," said C.A.R. Vice President and Chief Economist Leslie Appleton-Young. "Last year's frenzied market of multiple offers, which drove sales prices above listing prices, has tapered off as the sales-to-list price ratio has dropped to a more normal level at nearly 99 percent, which signals a return to a more balanced market." 

 

What Does This All Mean For The Market? This data suggests not only continued growth, but long-awaited stability in the real estate market. All in all, it is a good time to be in the market, as either a buyer, looking for a reliable appreciating asset, or seller, looking for a fair return on your investment. Optimism is not misplaced in today's market. 



Chinese Buyers Like California!
Increased Foreign Investiture, Influx of Cash.

Increased Foreign Investiture.
 
Chinese buying of U.S. real estate rose over seventy percent in 2013 alone, pouring $22 billion into the market. Not surprisingly, California real estate is at the top of their list, where over half of that money ended up.

Cash Payments!
 
This is especially good news for the market, because nearly three quarters of those purchases were cash buys, according to an article by CNN. Within California the hottest markets is San Francisco, as well as the northern portion of California due to its leading role in the tech industry.

Why They Buy? 
Surprisingly, only 39% of these Chinese buyers plan to use the purchased real estate as their primary residence. Instead, it is reported that, in large part, they are seizing up the available property due to favorable market conditions, mentioned above, as well as due to the expectation of continued appreciation.

What Does This Mean For The Locals?
Simply put, the big movers expect growth. So it is not a bad time to buy, or hold. Moreover, with so much of the foreign investiture coming in the form of cash payments, especially given the annual growth market conditions seen in 2013, it is not a bad time to sell, either. 

In Sum. 
As mentioned above, our optimism here at Schneider Estates Real Estate is buttressed by strong numbers, market growth, and lots of foreign interest!

Christine's Corner

 

Today's water shortage is not a secret. But just what is being done about it? Cities and municipalities are undertaking to address the problem with water conservation plans, taxes for over-usage, and various ordinances to promote conservation; but private actors have undertaken efforts as well.

 

For example, upstart Simple Elements LLC, launched in 2013, has developed the Hydros Intelligent Irrigation Controller. Claiming that as much as half of the water we use outdoors is wasted, the Hydros system seeks to promote efficient water-usage by monitoring local weather conditions through a global network of data, as well as soil conditions read through a series of ground sensors.

 

As the "irrigation system of the next generation," Hydros is "taking the guesswork out of watering your grass, giving the right amount of water every time" claims Manuel Masri, CEO of Simple Elements and creator of the Hydros Smart Irrigation System.

 

This is not the only smart irrigation system out there; Hydros is just one of many efforts by private individuals with a vision to use today's resources to create a more sustainable way of life for tomorrow.

  

Quote of the day:

"We are all connected; To each other, biologically. To the earth, chemically. To the rest of the universe atomically."
-Neil deGrasse Tyson

 

Quick Links
Local Market Trends

 


Christine Schneider, Broker
Schneider Team Real Estate
831-600-6550
www.propertyofsantacruz.com
cs@propertyofsantacruz.com
BRE# 01749537

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Issue 16
July, 2014