New home sales down - Driverless Cars!

Here is an update on new home sales, down in August, but the market is different now speel, http://finance.yahoo.com/blogs/daily-ticker/home-sales-slip-time-different-corelogic-chief-economist-160034104.html.  This is nation-wide, of course, and while I am a firm believer that the housing market here in Silicon Valley is doing well, I would be leary of statements like "its different now" and future looking predictions.

More exciting, though, is Bob Lutz's statement that all cars will be driverless in 20 years, http://finance.yahoo.com/blogs/daily-ticker/cars-driverless-20-years-bob-lutz-133826028.html, which was the story linked as previous to the above story.  While being a bold prediction, there is definitely data to show the trend and there are such obvious benefits that it seems like a given to me.  The biggest obstacles are likely to be those of us that actually enjoy driving.

Good and not so good news on home sales

First, the good news home prices continue to rise across the nation, as discussed in this story, http://news.yahoo.com/home-prices-consumer-confidence-gain-145737113--business.html.  The key quote from this story:

"Housing is out of the woods and it should be making a contribution to the overall economy going forward," David Blitzer, chairman of the index committee at Standard & Poor's, told Reuters Insider.

On the not so good side, comes this story that inventory levels are still low and unlikely to rebound soon, http://www.inman.com/buyers-sellers/columnists/dianhymer/2013-optimism-keeps-home-sellers-sidelines.  The inventory problem has been particularly acute in the San Francisco Bay Area, where the number of homes for sale has dropped by nearly 50%.  This columnist is less optimistic than the general press and thinks that the future of the housing market is far from clear.

CA leading nation in inventory declines, price rises

Good story from Inman News on the drop in inventories that is happening nation-wide, http://www.inman.com/news/2012/09/18/shrinking-inventory-bolstering-many-housing-markets.  The local data confirms that the Bay Area, and California in general, is leading these inventory declines and price rises.  There has been a slight drop in median prices in August, but there is no sign today that this drop is the beginning of a trend.

Millenials spend less than previous generations

An interesting story in the Atlantic about how Millenials are spending less on the big ticket items, namely cars and houses, than previous generations, http://www.theatlantic.com/magazine/archive/2012/09/the-cheapest-generation/309060/2/.  The real estate part is mostly on the second page, but its an interesting look at how spending habits and desires have changed over the past 30+ years.  I had already been noting to my friends how today's kids are less interested in driving and cars than we were, with many not getting their license until they go to college or even later.  That compares to when I was a teenager and we would go to the DMV on our 16th birthday to get a license as soon as possible.

Saratoga Union most sought after school district

Its great to see Saratoga Union School District listed as the most sought after school district in the country, according to Trulia, see story at http://blog.sfgate.com/ontheblock/2012/09/07/saratoga-union-is-most-attractive-school-district-in-the-country/.  The methodology for determining this is a bit simplistic, but makes sense and does reflect that families are moving into the district when their kids are school age.  It also reflects the increased value homes in the district have due to the schools.  Great job, SUSD!

Buyers getting frustrated with market

Here is an interesting post by the guys at Redfin on their regular survey of buyers sentiments about the market, http://blog.redfin.com/blog/2012/08/homebuyer_enthusiasm_slips_growing_sense_that_the_market_has_shifted_toward_sellers.html.  This highlights the problems buyers are having today due to the low inventory levels of homes.  At this point, it seems more likely that we will see a reduction in buyers, perhaps due to rising interest rates or people just giving up on the market, before we see big increases in inventories.

Home Repair Apps

Here is a useful story for those who have home repair jobs and need some help finding a contractor, http://www.mercurynews.com/business/ci_21482946/click-your-way-home-repair?source=rss.  There is no info on who he finally used for the project and how it went, but some good info on apps that may be useful.  Of course, being a realtor, you can also contact me for helping finding a good handyman :-).