After peaking around 7.8% in October 2023, weekly average rates on 30-year fixed mortgages were just under 6.9% in the first week of March 2024. Any other time, we’d be singing from the rooftops, but we’re nowhere near the historic lows we saw just a few years ago. Still, any relief is good news.
In November 2020, California voters narrowly passed Proposition 19, changing the way property taxes are assessed to provide more portability for seniors, people with disabilities, and those who lose their homes in wildfires and other disasters. But the new law also came with consequences for family transfers…
Under Prop 19, there are new limits on property tax exemptions in transfers to family members. The transfer must be to a child or grandchild, that family member must make the home their primary residence within one year of the transfer, and the exemption is limited to the first $1 million of assessed value over the original base assessment. And no, gifting your property to your child would not qualify for an exemption!
Another Prop 19 quirk is that the same property owner can take their base property tax assessment with them to 3 different properties anywhere in California, provided the original and replacement homes are of moderately equal value. I don’t think this will lead to a flurry of seniors on the move, but it seems a bit antithetical to the original intent of Prop 13, which was to allow Californians to age gracefully in place.
Don’t forget to wind all your clocks ahead one hour at 2am Sunday morning. Of course, most of our watches and devices update automatically. But it always freaks us out when the coffee maker goes on early!
Even in pandemic times, Spring has typically been a time for peaks in luxury home sales, which leads to spikes in median sales prices. As we spring into March, are we on the verge of another bump?
Last week, Master Y.C. Sun, renowned fortune teller, astrologer, and feng shui master, shared his predictions for the Year of the Wood Dragon with the Silicon Valley Association of Realtors. The program, attended by over 150 members, was hosted by the Global Business Council in conjunction with the DEI (Diversity, Equity & Inclusion) Committee. These were our key takeaways…
Master Sun noted that 2023 was the Year of the Water Rabbit, which did not bode well for the real estate market simply because of the characteristics of those elements. On the flip side, a Dragon has a strong sense of ownership and an ability to turn things upside down. It never gives up and releases powerful energy to accomplish its vision. And Wood, like a tree with branches, is a sign of limitless growth and expansion. This means we can expect a stronger year for the market.
Master Sun also cautioned that “general predictions are based on ancient Chinese methodology and should be viewed with a discriminating eye and an open mind." As a numbers guy like me would expect, more accurate predictions can be achieved with a detailed analysis. I also appreciated his encouragement to get in shape, eat healthier, spend less time on social media, visit nature, learn a new skill, and focus on your family’s interests and safety.
Got questions? Contact Master Sun directly at askmastersun.com.
