Fall/Winter 2018

FALL/WINTER 2018

SAN GABRIEL VALLEY CONNECTION

3 ‘Subtle’ Holiday Staging Tips (page 6) Realtors® See Increase in Commercial Income and Sales Volume for Second Straight Year (page 8) Upcoming Events and Classes (page 11)

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Wildfire Victims, Left Homeless, Struggle With Next Moves 3 ‘Subtle’ Holiday Staging Tips ® Realtors See Increase in Commercial Income and Sales Volume for Second Straight Year

10 California Home Buyers Can’t Always Get What They Want, C.A.R. Survey Finds 12 Upcoming Classes

WSGVAR Quarterly Magazine 1039 E. Valley Blvd., #205B San Gabriel, CA 91776 (626) 288-6212 Executive Officer Albert Tran Editor in Chief Rachel Yelinek

Hello Members of the West San Gabriel Valley Association of REALTORS®,

The fourth quarter is a season to harvest, a season to celebrate!

Our Global Business Council (GBC) arranged a three week long outbound trade mission in September and signed a total of 5 Memorandums of Understanding (MOU) with associations in Vietnam, China and Taiwan. The Council also signed the 6th MOU with Hong Kong Overseas Property Alliance in Boston in November. I am very proud that our GBC won the 5th consecutive Global Business Platinum Program at the NAR level this year. With all the efforts from past years, we are now qualified to earn the Global Business Diamond Award, which is the highest-level Award at NAR in 2019. Cheers!

Our Board of Directors attended C.A.R.’s fall meetings in October and NAR conferences in November. On November 15th, we had a panel to report the items and information we brought back to our members.

We’ve worked very hard this year, especially in October, fighting Prop 10 and trying to get Prop 5 passed. Sadly, Prop 5 lost in the election, but we did defeat Prop 10! We must keep pushing to protect our rights and the rights of homeowners. That is why I ask you all to please donate to the REALTOR® Action Fund (R.A.F.) as it helps us in the fight with real estate issues in California and Nationwide.

Thanks to our Education Committee who organized the Property Management Summit. We had a full house for the awesome professional panelists.

My gratitude to the Membership Committee who put together a program to appreciate our Realtor Veterans, who proudly served our country and now our real estate industry.

Our Young Professional Networking (YPN) Committee organized a “Feed the Homeless” event at Union Station in Pasadena on November 30 and another project on December 14 helping wrap and bag gifts at the Unity Center in Monrovia. The YPN put in a lot of effort throughout the year to serve the community and represented our association very well.

The WSGVAR Foundation Committee hosted its annual auction on 10/25 and successfully raised over $1200 and second auction on 12/13 auctioning off the remaining items raising over $600. Great thanks to the committee, our own auctioneer Yolanda Martinez, and affiliates helpers as well.

As an association, we continually improve our services to make the association better each year. If you want your voice heard at the association, please join a committee.

We’re always looking for extra hands to help make our board the best it can be, therefore, if you have ideas you want to share think about it. It takes a village to put together events and classes, but just one voice can make a difference.

I’d like to take the opportunity to thank you all for allowing me the privilege and honor of being your 2018 President. I had an amazing year and learned a lot from all of you. I am so grateful for our association directors, members, affiliates, administrative team and staff. Thank you very much for helping me and supporting me to achieve my goals for our Association. With that I wish you all a safe and happy holiday and new year!

My Best,

2018 President Helen Marston

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info@wsgvar.com www.wsgvar.com ASSOCIATION NEWS 3

Wildfire Victims, Left Homeless, Struggle With Next Moves By: Sam Silverstein

Jim Cronin and his wife, Monte, hadn’t planned on moving from the little yellow house in Paradise, Calif., where they had lived since getting married more than 13 years ago. They once considered trading up to a bigger property but decided it was the best place to raise their 6-yearold son. Then, their plans for the future vanished on Nov. 8, when the biggest wildfire in California history incinerated most of the town and left thousands of people—including the Cronins—homeless.

“It still doesn’t feel quite real,” Cronin said. “We always thought it was just our first home, but the more we lived in it, the more it became who we are.”

Cronin, who runs an online company that builds websites for real estate professionals, and his family were able to find temporary housing in another community. But other residents driven out of Paradise by the Camp Fire weren’t as lucky. Faced with the loss of both their homes and livelihoods, many who lived in the Northern California town are struggling to afford necessities and have no idea where they will go next. Some are even living in tents. “Our biggest problem is a lack of housing,” says Michael Zuccolillo, broker-owner of Simplistic Realty and president-elect of the Paradise Association of REALTORS®. “The big question is how we’re going to find the money to rebuild. There are so many unknowns when an entire town is just wiped off the map.”

The state association is working with the National Association of REALTORS® to provide emergency funds to victims of the Camp Fire, which burned through Northern California, and the Woolsey Fire, which ravaged communities in Southern California. The REALTORS® Relief Foundation has provided the California Association of REALTORS® with $1 million, which will be used to help victims with mortgage and rent payments. NAR covers administrative costs for the foundation, which has raised more than $29 million since its inception following the Sept. 11, 2001, terrorist attacks.

C.A.R. is currently accepting and processing applications for relief grants, says spokeswoman Lotus Lou. In addition, CAR’s Disaster Relief Fund has raised $133,000 to help REALTORS® and their families impacted by the fires, Lou says. The association has committed to matching up to $250,000 in contributions to the fund. “It’s going to be very tough for people to get back on their feet, and our goal is to let them know we’re thinking of them and praying for them,” CAR President Jared Martin says.

“Other than supporting members through our disaster relief fund and supporting members of the community through [the RRF commitment], I’m at a loss for what we can do. I’m aghast at what has happened.”

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NAR Legislative Meetings

Richard Mendenhall and Martin Edwards, the 2001 and 2002 NAR presidents, respectively, spearheaded the creation of the RRF. Edwards, who serves as president of the foundation’s board of directors, emphasizes that the fund’s ability to help victims of the unfolding disaster in California stems from fundraising efforts that took place long before the wildfires. Those efforts must continue so the fund is ready to respond to future disasters. “If not for funds raised in the past, we wouldn’t have had the funds to react [to the wildfires],” Edwards says, adding that the RRF is committed to helping people affected by disasters long after the events have faded from the national consciousness. “We’re in the home business, and when there are tragedies, we help people with the place they call home.”

Zuccolillo, who serves on the Paradise town council, says people who own property there are going to face tough decisions about what to do with their land or buildings. “The hardest part is figuring out the vision. What’s the market going to look like? What are houses going to be worth?” he says. “No one wants to live in a war zone.”

Cronin says the reality of having to rebuild is unlike anything he could have imagined. “We woke up and were told to leave our house for our safety, and then we were told it was gone,” he says.

“I now have a full-time job making decisions” about what comes next.

If you would like to donate, WSGVAR is collecting funds and gift cards for the areas affected by the recent fires. You can call the association at (626) 288-6212 or stop by the office during business hours if you’d like to donate. Thank you in advance for any contribution you can make.

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3 ‘Subtle’ Holiday Staging Tips By: Melissa Tracey

Want to give your listing a little holiday flair– without going overboard? Elyza Brillantes, design program manager at Havenly, offers some of the following tips: 1. Infuse greenery.

Greenery is always a must for staging your home so the space feels fresh. “For the holidays, seasonal greenery like evergreen boughs can be a lovely way to make the space look inviting, and also smell great,” Brillantes says. “If you live in an area where evergreens aren’t readily available, eucalyptus or magnolia can be a great substitute.”

2. Make it cozy.

The holidays are all about getting cozy. Pay close attention to your throw pillows and throw blankets in the living spaces to help potential buyers envision themselves spending quality time in your home, Brillantes suggests. Materials like wool and fleece are perfect for the cold weather months, and patterns like buffalo check are a timeless pattern that can feel just as classic as they do holiday, she says.

3. Show off entertaining potential.

Entertaining during the holidays can be top of mind for buyers. Dress up your dining table in a way that feels inviting. For example, a simple table runner and centerpiece can be a great way to make a space feel perfect for having the extended family over for the holidays, Brillantes says.

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Realtors® See Increase in Commercial Income and Sales Volume for Second Straight Year By: Cole Henry

WASHINGTON (November 15, 2018) — Commercial real estate markets are on the rise, with Realtors® specializing in commercial real estate reporting both an increase in members’ gross income and sales volume, according to the National Association of Realtors® 2018 Commercial Member Profile.

Corresponding to tightened inventory conditions, sales transactions for NAR’s commercial members have slowly decreased in the last two years, down from eight in 2016 to seven in 2017.

The annual study’s results represent Realtors®, members of NAR, who conduct all or part of their business in commercial sales, leasing, brokerage and development for land, office and industrial space, multifamily and retail buildings, as well as property management.

“The commercial real estate industry is strong and is on pace with the growing economy. Although there is a slight decrease in transactions, commercial professionals have reported improvements in their markets and business activity for consecutive years. Realtors® reported that sales volume and costs of sales increased this year, as well as median gross annual income,” said NAR President John Smaby, a second-generation Realtor® from Edina, Minnesota and broker at Edina Realty.

The median gross annual income for commercial members hit an alltime high of $150,700 in 2017, up from $120,900 in 2016. The median sales transaction volume in 2017, among members who had a transaction, was $3,870,500, an increase from the median sales volume of $3,500,000 in 2016.

The median dollar value of sales has also steadily risen since 2013 to its peak of $602,500 for all commercial members in 2017, up from $543,500 in 2016.

The median gross leasing volume was $705,500 in 2017 for members who had a transaction, an increase from $538,500 in 2016.

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annual gross income of $186,900 and $139,700, respectively, while sales agents reported $104,600, an increase from $81,300. Commercial members with less than two years of experience reported a median annual income of $44,000 in 2017, up from $31,500 in 2016; and those with more than 26 years of experience reported a median annual income of $192,600 in 2017, up from $162,200 in 2016.

“Commercial real estate professionals are reporting great growth in the past year, which has convinced more and more members to enter the commercial industry. The economy is expanding along with tight labor market have boosted income for Realtors® in the commercial space,” said NAR Chief Economist Lawrence Yun.

Fifty-one percent of NAR’s commercial members worked in sales as their primary service area, followed by 16 percent in leasing and 12 percent in investment. Twenty-nine percent of NAR’s commercial members worked with commercial buildings, with 13 percent on multifamily structures, retail, and office space. Forty-nine percent of NAR’s commercial members were brokers, 29 percent licensed sales agents, 17 percent broker associates, and five percent were appraisers.

The median age of commercial members remained the same as last year, 60, while the median age for NAR’s commercial members with two years of experience or less was 46. Thirty percent were female, up from 27 percent in 2017 and 70 percent were male, down from 73 percent in 2017. Seventy-eight percent of commercial members worked at least 40 hours a week.

In August 2018, NAR invited a random sample of Realtors® with an interest in commercial real estate to fill complete an on-line survey. A total of 2,324 responses were received for an overall response rate of 3.8 percent. The confidence interval at a 95 percent level of confidence is +/-2.0 percent based on the share of commercial members. All information in this report is representative of member characteristics in 2018, while sales, lease transaction values, and income are characteristic of the 2017 calendar year.

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California Home Buyers Can’t Always Get What They Want, C.A.R. Survey Finds

LOS ANGELES (Nov. 26) – California’s competitive housing market and low housing affordability forced homebuyers to make compromises in their home purchases including price, size, location, and school quality, according to a consumer survey by the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) today.

C.A.R.’s 2018 State of the California Consumer Survey, which examines the attitudes and behaviors of real estate consumers, reveals 44 percent of buyers bought a more expensive home than they wanted, 33 percent purchased a smaller home than desired, 36 percent purchased a home further from school/work than wished, and 30 percent purchased in an area where schools were of lesser quality.

“Well-qualified home buyers understand that buying a home can be challenging in a competitive housing market environment and they may not be able to buy the ideal home they want,” said 2019 C.A.R. President Jared Martin. “Instead of finding a home that’s a perfect fit, they are finding a home that’s a good enough fit.”

Buying Experience:

Buyers were not deterred by higher home prices and tight housing supply conditions but waited until their financial situations improved or to save for a down payment. Buyers typically saved for 5 years, and nearly a quarter of those who purchased a home priced $1 million or higher saved more than 10 years.

The source of down payment for the majority of home buyers was their personal savings.

Boomers were more likely to use the proceeds from the sale of a previous home since many were repeat buyers. Millennials were significantly more likely than Gen Xers or boomers to use funds received from parents or family or a gift.

California’s costly home prices gave nearly one in three home buyers cause to consider purchasing in another state, but buyers ultimately stayed because they liked the city/state they currently lived in or because of their job, family, or friends. Younger buyers and first-time buyers were more likely to consider leaving the state. With the state’s housing prices at 161 percent above the national average, California’s high housing costs are the biggest factor hurting young, middleclass, often minority families.

Buyers typically spent eight weeks on their home search, and nearly one in three spent 13 weeks or more. Reflecting the extremely tight housing market in the San Francisco Bay Area, buyers in the Bay Area spent a median of 10 weeks in their home search. Buyers who bought homes $1 million or higher spent a median of seven weeks searching for a home, while those whose homes cost less than a $1 million spent a median of eight weeks. Generally, the more competitive the housing market is, the longer it takes to find a home.

Buyers made a median of three offers on other homes before having an offer accepted, but nearly one-fourth made more than 10 offers. Those who purchased a home for more than $1 million made five offers on other homes. The hyper-competitive, supply-constrained Bay Area had the highest incidence of multiple offers.

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Buyer Preferences:

Home buyers’ preferences varied by age/generation, income, and home buyer status (firsttime, repeat, investment buyer, etc.).

The typical first-time buyer purchased a three-bedroom, 1,500-square-foot, single-family home. Nearly half purchased a home in the suburbs, and two-thirds purchased a one-story home.

Buying a home within their price range and with the desired number of bedrooms were the top requirements for first-time buyers. They selected their neighborhood primarily based on their budget (53 percent), safety (51 percent), and proximity to jobs/school (38 percent). First-time buyers were likely to purchase a home close to where they previously lived, with only 20 percent choosing to leave the county or state.

Being in a better financial situation, repeat buyers typically purchased a larger home with three bedrooms and a median square footage of 1,700. Three in four purchased a single-family home, and more than half purchased a one-story home. Nearly half bought a home in the suburbs, 26 percent bought a home in the city outside of downtown, 18 percent bought homes downtown, and 11 percent bought in a rural area.

With lower income and less equity under their belts, millennials tended to buy smaller, more affordable homes than older generations with a median of 1,500 square feet and a median price of $350,000. Millennials were more likely to purchase a condominium or townhome in a suburb (43 percent), followed by a home in the city outside of downtown (26 percent). They selected the neighborhood they wanted to live in based on their budget (52 percent), safety (49 percent), proximity to jobs/schools (40 percent) and family/friends (33 percent).

Similar to millennials, the Gen X group most commonly selected a home in the suburbs, trading up to a home a median of 300 square feet greater than that of their previous home. More than half of them selected a home with at least one bedroom larger than their previous residence.

Most purchased a single-family home, and townhouses/condos accounted for nearly 20 percent of those purchased. The majority of Gen Xers chose to buy within the same county as they previously lived, presumably to minimize disruption from the relocation and maintain the same lifestyle.

Boomers were most likely to have purchased a single-family home in the suburbs without stairs and were also the most likely to buy a home in a rural area since many of them are approaching retirement age and planning to age in their home and seek a quieter lifestyle. They were less likely to purchase in the same county they previously resided in with 24 percent buying in another county perhaps to be closer to children/grandchildren or healthcare facilities.

The 2018 State of the California Consumer Survey was conducted online between May 9 and July 9, 2018, aiming to understand the process of home buying and selling, as well as the motivation behind renting and owning from the perspective of the California consumer. Surveys were sent to 470,803 consumers ages 18 and older in the state of California, resulting in 6,144 participants, a 1.3 percent response rate. The margin of error was ±1.2 percent at a 95 percent confidence interval. For the buyers section, 1,441 buyers purchased a home in California within 18 months preceding survey participation.

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