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MARIN REAL ESTATE BLOG

 

Jun 09

RED ALERT – SASM, SPAWN/Turtle Island – Developers? MAR Monday Memo 06/09/14

By Legislation, Marin Association of Realtors, Marin Community News, Marin Real Estate News, Regulations, Uncategorized

Good morning MAR members!

It was feeling very much like summer last Blaine Morris week, inventory-wise. After seeing a bit of an uptick in new listings as the spring wore on, the last couple of weeks have seemed much quieter for new properties on the market. While holding open a new listing of my own this past week, agents were coming in and bemoaning what they perceived as a bit of a slowdown in the market. I think it’s just the normal Marin summer breather. The good news is that buyers will face a little less competition if they do find a house they like.

Elections
I hope most of you got out and voted in last week’s exciting election. There were few surprises on the statewide level, but lots of intrigue locally. REALTOR®-supported candidates Marc Levine (Assembly), Mike McGuire (State Senate) and Damon Connelly (Supervisor in Marin District 1) all staged decisive wins last week. In Supervisor District 5, MAR member Toni Shroyer staged an impressive challenge to incumbent Judy Arnold. Shroyer conceded the race late Friday afternoon after updated results were released showing Arnold with the lead.

MAR CEO Andy Fegley, MAR Treasurer Arun Burrell and I made the rounds on election night, visiting the victory parties of both Marc Levine and Damon Connelly. I’d never done that before, and it was great to congratulate REALTOR® endorsed candidates. Connelly won outright, he’s the new Supervisor replacing Susan Adams in January, 2015. Assemblyman Levine now faces what looks to be an interesting race in the “Top 2” format. He will be facing Diane Conte, another Democratic candidate who narrowly beat out Republican Gregory Allen. Though Levine had a decisive first place showing, the November election will provide intrigue given the fact that Ms. Conte will be running to the left of Levine in progressive Marin and part of Sonoma County. Assemblyman Levine still has work to do.

Housing Density Bill AB1537 (Levine)
Speaking of Assemblyman Levine, his housing density bill AB1537 now moves to the Senate, where it will be heard in the Senate Transportation and Housing Committee. CAR has long been a supporter of the Chairman of that committee, Senator Mark DeSaulnier. Assemblyman Levine’s staff knows this, and MAR will continue to do what we can to advance this important bill. We will keep you updated on our progress.

Watch for MAR RED ALERT Later Today
On to the next matter, point-of-sale sewer lateral inspections. Surprisingly, MAR’s membership has been rather quiet on this subject, at least as it relates to feedback to me. Is this an important subject for you? The Sewerage Agency of Southern Marin (SASM) has its next board meeting a week from Thursday. It is our understanding that they will be taking up the issue of mandatory sewer lateral inspections at this meeting. That is why MAR is issuing a RED ALERT later today.

We are asking every member to answer this call for action to let SASM leadership know that a real plan is needed to address the needs of the community.

With point-of-sale, it will take 50 years to solve the problem. And the problem needs fixing today. All point-of-sale does is give the appearance of trying to do something, but it is not a real solution. All the sewer agencies, SASM, Ross Valley and all the rest need to come up with a real solution that will protect the communities before 2065, which is how long the point-of-sale solution will take. Point-of-sale simply will massively complicate the process of selling a home, initiating a public works project with every sale, tearing up the street on every sale. AND IT WON’T FIX THE PROBLEM FOR FIFTY YEARS.

MAR member and Corte Madera Councilman Bob Ravasio called me last week to make sure that MAR was on the right side of this issue. He spoke of the environmental consequences of the failed sewer system countywide. He said that something needs to be done. MAR couldn’t agree more. It’s just that point-of-sale lateral inspections is not the way to fix the problem. Bob conceded that Corte Madera has a 20-year plan in place to replace all the faulty sewer laterals throughout the town…and not a point-of- sale requirement. That’s EXACTLY the type of solution that MAR would like to see…a REAL plan.

SASM needs a real plan, and MAR and its members need to be vocal about this. Please make sure to answer the call for action in the RED ALERT coming to your inboxes later today.

MAR has invited SASM to meet with our Government Affairs Committee this Friday, but so far they’ve not responded.

SPAWN/Turtle Island-Developers?
One last thing: Did you know that SPAWN/Turtle Island, they of the San Geronimo Valley building moratorium, they of fierce opposition to the Marin
Countywide Streamside Conservation Ordinance, and they of protecting the San Geronimo Valley’s salmon population from “development” are now seeking to become the biggest developer in the San Geronimo Valley?

That’s right, you can read about it by clicking here.
I guess that’s what happens when you have millions of dollars in your bank account and can’t figure out what to do with it. According to Executive Director Todd Steiner they want to buy land and homes, restore the habitat, and return the homes to market with some sort of permanent environmental covenant. Funny, how the single biggest advocate for not being able to do anything with your property in the Valley now wants to buy and rehabilitate those very homes.

This is all very new, but certainly worth watching. Perhaps we will see a future where the only people who can buy and rehabilitate homes in the Valley are SPAWN themselves.

I couldn’t have made this up if I tried.

That’s it for now!

Blaine

Blaine Morris
2014 MAR President

Jun 04

Just Listed! 31 Porto Bello, San Rafael, $499,000

By Marin Real Estate News, San Rafael Real Estate News

31_porto_bello_san_rafael

Convenient Location and Waterfront Neighborhood

Pride of ownership and a super convenient central location await at this spacious townhome in the Porto Bello waterfront community.  The 2BR/2.5BA property includes an updated kitchen with granite countertops and newer appliances. All three bathroom also have granite countertops, newer fixtures and tile work. The large living room has a cozy fireplace and opens to a nicely landscaped private patio, perfect for indoor/outdoor living. The community has a pool and also features a boat dock.  Great light throughout, with vaulted ceilings in the large bedrooms. The unit has an oversized 1-car garage plus one additional assigned space.  Close to 101, Whole Foods, and Trader Joes.  Turnkey and move in ready. Everything you need for your active Marin lifestyle!

Offered at $499,000

Jun 03

“It’s On with SASM”, Housing Density Bill AB-1537 Faces Uncertain Outcome in the Senate – MAR Monday Memo 06/02/14

By Legislation, Marin Association of Realtors, Marin Community News

Good morning MAR members!

Back to the regular work week today, after last week’s nice 4-day version, which followed the ever-popular three-day-weekend.  There is certainly something in the air…it sure feels like summer!

A short memo this week to commemorate the start of my favorite time of year.

First of all, don’t forget to vote tomorrow.  The REALTOR Party needs you out there, doing your part to participate in the most important part our democracy.  It doesn’t matter what your opinion is, just get out there and make your voice heard.  Did you know that in California there are more than 36,000 REALTORS who are not registered to vote?  I find that really hard to believe, and I hope very much that we have a disproportionately small share here in Marin.  Hopefully, you’re registered to vote…now get out there and vote tomorrow!  And if you’re not registered to vote, here’s where you can change that right now:  <<http://www.car.org/governmentaffairs/getinvolved/rparty/registertovote/>>

The first thing to bring to your attention this week is that “it’s ON with SASM.”  That’s the text I received last week from MAR CEO Andy Fegley.  SASM is the Sewerage Agency of Southern Marin.  SASM is working on draft policy to take to its individual sanitary districts in and around Mill Valley mandating point-of-sale sewer lateral inspections which will result in mandatory repairs.

SASM knows that MAR is 100% opposed to point of sale ordinances.  CEO Fegley has been meeting with the district’s leadership, advocating for an approach to fixing this problem that won’t take 50 years to solve.  50 years is how long it takes for all the homes to turn over in Mill Valley.  We’ve told them that “best practice” by REALTOR members generally includes a sewer lateral inspection during an escrow, and that inserting the government into this escrow process is horribly, horribly unproductive.

Just talk to our colleagues who sell properties in Sausalito and they will tell you all you need to know about sanitary district policy run amuck.

I’ll keep you in the loop on MAR’s efforts.  Frankly, this is going to be a hot topic throughout Marin, as the Ross Valley Sanitary District is looking to mandate the same point-of-sale ordinance…they’re just not as far along.  NAR and CAR will both support us in this effort to advocate for a more real and holistic solution other than making REALTORS responsible to solve their agencies’ infrastructure problems.

On to the ongoing housing density front.  MAR CEO Andy Fegley, Past President Kay Moore and I visited with Supervisor Kate Sears last Friday.  Supervisor Sears represents Kay Moore’s district and she is the 2014 President of the Marin Board of Supervisors.  We were brainstorming on how to help advance AB1537, which is Assemblyman Marc Levine’s bill to reduce the default density of Marin from “Metropolitan” and 30-units-per-acre to “Suburban” and 20-units-per-acre.  This bill recently passed the Assembly on a strong bipartisan vote of 62-4.  Supervisor Sears testified in favor of the bill at Assembly committee hearings at the end of April, along with CEO Fegley and myself.

Now the bill faces an uncertain outcome in the Senate, where the senior staffer on the Senate Housing Committee seems particularly unfavorable to the bill.  Another issue is that right now, and for nearly the past two years, Marin has been without representation at the state Senate.  Did you know that?  Redistricting that occurred a couple of years ago resulted in Marin not having a state Senator for two years.  And we won’t have a Senator until we finally elect one in November.  More on that later.  In the meantime, MAR has maintained a positive relationship with Senator Noreen Evans from Sonoma County.  She has been acting in something of a caretaker role for our orphaned county.

Net-net, we have to push a bill through the Senate without our own Senator.  I knew we were in this orphaned state.  That fact came up last year when MAR was advocating for the passage of SB30, which was the state tax relief bill for sellers of distressed properties.  Senator Evans offered her support on that bill.  It never really hit home with me, however, until right now.  We are reaching out to Senator Evans again, and we’re working with Assemblyman Levine and the Board of Supervisors to work to shepherd this bill through the Senate.

I reminded Supervisor Sears about Governor Jerry Brown’s comments to the 3,000 REALTORS on hand at CAR Legislative Day in Sacramento on April 30th.  The Governor advocated for local control to the REALTORS:  “People in Modoc do things differently than people in Berkeley…let them make their own decisions.”  My sense is that Governor Brown is worried about other things than a bill on housing density here in Marin.  But since the Governor appointed Supervisor Sears to her seat when the late Supervisor Charles McGlashan passed away in 2011, I figured she must know someone on his staff, and who knows how that might help?

The two-year Legislative calendar concludes at the end of August.  If AB1537 doesn’t pass the Senate by then, it’s back to square one when the Legislature convenes for a new session next year.  And the Legislature is on recess the whole month of July.  So we’ve really just got June and the first couple of weeks in August to get this bill through the Senate.  MAR intends to testify once again at the not-yet-calendared committee hearings.  I’ll keep you informed of our progress.

Finally, I want to plant the seed that now is the time to think about getting involved at MAR next year.  More on this next week, as Nominating Committee Chairperson Judy LeMarr will be leading the process.  If you’ve wanted to serve on a committee, chair a committee, or be on the Board of Directors, the process for next year will unfold in the coming months.  It’s a richly rewarding opportunity to serve your colleagues and your community.  And it’s good for business!

That’s it for now.

I wish you a safe and prosperous week!

Blaine

 

 

May 27

Should You Include a Picture of the Buyer in a Offer Packet? MAR Monday Memo 05/27/14

By California Association of Realtors, Marin Association of Realtors, Marin Real Estate News

Good morning MAR members!

Safely back in Marin this week after spending two of the prior three weeks on the road…it’s good to be back home.  I was looking forward to a nice quiet three day weekend, but many of you responded with new listings this week!  Alas, our customers don’t care about three day weekends…other than the fact that they have an extra day to look at homes.  So back to showing and listing properties.

I’m going to find a quiet moment this weekend to honor those who have served our country…Happy Memorial Day everyone!  Coming from a certain generation, most everyone in my family from the generation before me served in the military.  My father Warren served in the Marine Corps in the Korean War, and both uncles on his side of the family served, Uncle Ray in Korea and Uncle Blaine in World War II.  My Grandfather Blaine served in Europe in World War I, nearly 100 years ago.  Plus my longtime stepfather Allen Coates was a full-bird Colonel in the Army, and he served in an artillery brigade in Korea.

I say all of this because it’s easy to forget the sacrifices made by those who came before us.  Take a little time this weekend to honor those who served our country.  And wish for a safe return home to those currently serving.  As President Lyndon Johnson said on this day in 1966 (my first Memorial Day as a 3 1/2-month-old!):  “On this Memorial Day, it is right for us to remember the living and the dead for whom the call of their country has meant much pain and sacrifice.”

Thank you to MAR member Chelsea Ialeggio for her feedback on pictures of buyers in offer packets.  One of her clients wanted to include a nine-page letter filled with pictures of the family with an offer.  These buyers shared that all their friends looking for homes were sharing similar letters and pictures.  Chelsea shared that she had been advised throughout her career to not include pictures, as it creates opportunities for possible discrimination concerns.

Letters are fine, but regarding pictures my response to Chelsea was that to my knowledge there was no part of the REALTOR Code of Ethics preventing this practice, and that it is more of a broker risk management issue.  I still feel that way.  Last Thursday, however, I asked MAR CEO Andy Fegley to find out CAR’s position on the matter.  Andy called June Barlow, CAR’s Chief Legal Counsel.  June just happened to have a conference call set up that afternoon with the entire CAR legal staff and agreed to pose the question.

After that call, here is what June came back with:  “I spoke with the hotline attorneys during their meeting and they confirmed that it is problematic from a fair housing perspective for real estate agents to participate in activities, such as including photos, that may put the seller in a position to discriminate or facilitate discrimination based on familial status or marital status or even race or other protected class.   Universally  we advise against it.  However, none of us knew of a specific bulletin or advisory that speaks to the issue about photos in particular, though that doesn’t mean one does not exist.  Regulation 2780 does list many variations of fair housing  violations that could cause one to lose a real estate license.   There are quite a few in there that may cover this activity.”

So, to repeat, as far as I know, it’s not against any specific REALTOR policy that we’ve been able to find, but my advice is to tread very carefully with this issue and speak to your broker about your company’s policy.  I know during my time in the business it has been against the policy of my brokers.

In the category of “odds and ends”,  I thought it would be useful to share some info from a presentation given a couple of weeks ago by CAR CEO Joel Singer in Sacramento during the mid-year meetings.

  • Joel compared the housing downturn we’re just emerging from as “just as bad as the Great Depression.”
  • The early years of the recovery were the strongest, and the current number of sales he is seeing is not performing as he would expect.
  • Appreciation is moderating.  There is a current “pause” in appreciation is due to the recent rise in interest rates, general economic components, and the fact that affordability has decreased statewide.
  • Inventory has improved but remains tight.  Inventory is essentially all existing homes; there are almost no new homes.
  • During the downturn, in California we lost a million households that “should exist”.  During the housing boom of the mid-2000s, “new household creation” peaked at 300,000 new households created annually.  During the downturn, “new household creation” bottomed out at 30,000 new households created annually.
  • California needs to “replace lost housing that should have been created over the past 5-6 years, but we are not doing so.”
  • The market is over-relying on investment sales.  Currently, statewide, 25% of sales are “investment sales”.  Normally, that figure is 6-10% of sales.  First-time buyers should be able to buy, but they can’t compete.  Demand is not a problem, but the share of first time buyers is alarming.  Pent-up demand is not resulting in sales.  There is nothing to sell them, and when there is, these first-time buyers are competing with investors with cash.
  • Along that line, the share of first-time-buyers should be higher than it is right now.  He would like to see it over 40%…even 50%.  At the current rate, which is around 38%, we are not seeing a healthy, “ladder-like” market
  • With all of that said, first-time-buyers remain our hope once again.  Millennials view homeownership as a positive thing at essentially the same rate as the Gen-X and Baby Boomer generations before them.  The level of student debt, however, is staggering, and is holding back Millennials from being able to buy.
  • The homeownership rate is dropping statewide.  In the US, the homeownership rate is 65.4%.  It’s in the mid-50%s right now in California.  He bemoaned the fact that in California we are nearly 50% renters.
  • There is political fallout as we become a renter society.  Low homeownership rates in San Francisco have a profound effect on public policy in SF, with homeowners being a small minority of the population.
  • And rents are continuing to go up because new homes are not being constructed…and the future demand for housing is not going to lessen.
  • The good news is that the attitudes of homeownership remain positive…but people continue to leave California over the cost of housing.  Young families, the Millennials, want to buy houses and participate in the California dream.  We need more supply.  In California, we need 165,000 new units of housing annually, which will create a balance of supply and demand.  We are currently only building 65,000 units, which is leaving us a staggering 100,000 units short.

So let’s all go find some more listings and do our part to improve these numbers!

I wish you a safe and prosperous week.

Blaine

 

 

 

 

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