Milpitas Real Estate Market Update 10-05-2017

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1) Milpitas Market MLS Update
-19 pending sales
-new listings:
-1245 Fontainbleu Ave 4bd 3ba 2097 sf lot size 6592 $1,188,000
-2021 Conway St 3bd 1ba 900sf lot size 5985 $688,888
2) Current Interest Rates:
-4.0% 30 yr fixed conforming
-3.375% 15 yr fixed conforming
-4.25% 30 yr fixed jumbo
-3.5% 15 yr fixed jumbo
-Weak economic news normally causes money to flow out of Stocks and into Bonds, helping
Bonds and home loan rates improve. In contrast, economic news normally has the opposite
result. The final reading on second quarter Gross Domestic Product (GDP) grew to 3.1 percent
as opposed to the anemic 1.2 percent recorded in the first quarter of 2017, the Bureau of Economic
Analyists reported. It was the best reading since the 3.2 percent in the first quarter of 2015.
GDP, monetary value of all finished goods and services produced within a country’s borders in
time period, was boosted by stronger business and consumer spending. Inflation continues to
run well below the Federal Reserve’s target of 2 percent.
3) “Forecast: State won’t be able to build enough to dent home prices”- San Jose Merc 9/27/17
-Making housing affordable in California is difficult at best….Economist Jerry Nickelsburg
-California appears unlikely to be able to build enough homes in the coming years to put
a meaningful dent in skyrocketing housing prices triggered by a shortage of affordable
dwellings, according to economists who prepared a new UCLA Anderson Forecast.
There needs to be 20% more housing to obtain a modest 10% reduction in price
4) Seller’s closing costs most often encountered:
-County Transfer Taxes
-Structural pest control clearance, (dry rot, termite infestation, fungus)
-Prepayment penalty (check with loan institution)
-Pro-rata share of taxes, depending on your impound account, and date of closing
you may have a credit
-Reconveyance of deed from the lender
-Fire Insurance, (credit unless you are transferring policy to another home)
-Interest in existing loan
-Miscellaneous fees; drawing docs, recording and notary fee
-Brokerage fee
-Escrow fee and Title insurance
-One year home protection plan
-JCP report fee
-Federal Express, courier fees
-City transfer tax (not in Milpitas)
-Transaction Coordinator

for updates to City of Milpitas……www.ci.milpitas.ca.gov