2013 was the strongest real estate market in San Mateo county, since 2007. In fact, it appears to not have abated into 2014, as it normally would have. Here are a couple of graphs to bolster this statement.

It's the holidays again, and time for a little gratitude, for what you do have.

These daily habits are sure to make you happier... • Express gratitude. Write down three things you’re thankful for every day to help you appreciate the people, events and things in your life. • Change your perspective. If you can’t change a situation, change the way you see it. • Perform random acts of kindness. Altruism taps into your brain’s pleasure centers and may give you a sense of purpose. • Lighten up. Laughter improves your outlook, reduces stress and may even lower your risk of cardiovascular disease

"Single family inventory remains substantially lower than the same period from a year ago, but there is increasing progress in closing the gap. Compared to October 2012, there is a significant increase for single family median prices in all counties. Single family sales are still coming under pressure compared to October 2012. Median prices increased in San Benito County by 45%, Monterey County by 31%, Santa Cruz County by 29%, and both San Mateo and Santa Clara Counties by 12%." * source, MLSListings

Bad Harbor Commission Board

I had forgotten how bad board meetings can be to attend, as a member of the public. I have not attended any for several years, but one night listening to the dysfunctional Harbor Commission brought it all back to me like a bad dream. As one observer observed, the meeting could be summed up in one action, when Commissioner Tucker asked a staff person, whose imminent maternity leave had just been approved, to waddle across a crowded room to get him a glass of water.
Commissioner Holtzinger recently made a public comment that he was disappointed that members of the public were not observing these meetings. Well the fishermen and women of our harbor showed up this evening, and when he saw them all he immediately moved to table the agenda item regarding new lease fees, fish buying fees and fish license fees. It appeared he wanted to table the discussion until the fishermen got tired and left.
The rest of the agenda items appeared to have only one purpose, muzzling of Commissioner Brennan. It seems she has actually been trying to do things, like dredge the harbor, make plans for dredge the harbor in the future, which would be approved by the coastal commission, without the board needing to request emergency actions, oh and she held a committee meeting. Tsk, tsk, Commissioner Brennan. Did I say muzzle, I meant gag. You thought Washington DC was dysfunctional? You should listen to a Harbor Commission Meeting.

According to the National Association of Realtors

Strong Fundamentals Shore Up Home Sales

Daily Real Estate News | Friday, May 17, 2013

Uncertainty over federal actions remains a big hurdle

Home sales are on a sustained upswing, with solid gains in volume and price predicted for the next few years thanks to improved market fundamentals. But whether the federal government will derail further improvement remains a question, REALTORS® heard Thursday.

Existing-home sales are expected to hit 5 million at the end of this year and then grow to 5.3 million in 2014, up from 4.3 million in 2011, National Association of REALTORS® Chief Economist Lawrence Yun told a packed audience at his residential economic forum at the 2013 Midyear Legislative Meetings & Trade Expo in Washington.

Price appreciation will be strong, too. Yun said he expects gains of 8 percent this year and 5 percent next year.

The strong price growth reflects the overly tight inventory conditions in many markets, Yun said. And that’s not a healthy condition. What’s needed is a return to the market by small builders, but they can’t get financing because community banks, leery of banking regulations coming out of Washington, aren’t lending.

Until that regulatory uncertainty clears up, only the country’s largest builders, which have access to Wall Street bond financing, will be building. As a result, although building has picked up in the last year after years of flat-lining, the number of new units is barely at replacement level. To meet the pent-up demand that’s in the market right now, builders need to get some 1.5 million units on the market. They’re only getting about 1 million right now.

The good news is that the housing recovery is based on deep-seated improvements in market fundamentals. So as long as the economy stays on track, which economists generally say will be the case, the housing market should continue to improve well into the future.

To the extent that there are market risks, they largely stem from the federal government, which continues to look at ways to reduce its budget deficit. Washington is also writing rules to protect against future mortgage market problems.

Will the government pare back the availability of Federal Housing Authority financing through tightened lending rules? Will it require banks to meet stringent capital standards and underwriting requirements under Dodd-Frank Wall Street reform rules?

Another unknown is whether the government will it impose strict limits on the points and fees lenders charge for loan originations–what Yun called a kind of price control that could end up dampening loan availability.

Until these and other uncertainties are cleared up, the improving market will face headwinds, Yun said. As a result, although the market should continue improving, its gains are unlikely to be as robust as they otherwise would be.

—Robert Freedman, REALTOR® Magazine

An agent who was in our office is a celebrated hero from World War Two. His name is Les Williams. One of the Tuskegee Airman, perhaps you saw the recent movie about him and these other courageous men. Les, one of the kindest men in the world, received the Congressional Medal of Honor for his service as a Tuskegee Airman during World War II. Les, now in his 90’s, wrote a book of his experiences entitled: “Victory: Tales of a Tuskegee Airman”. 
 


I would like to help Les with the sales of his book. If you are interested in owning a piece of history from a man who was part of it, please contact me, 650-403-6253, to place your order. The cost of the book is $20.00. If you would like to donate an additional $5.00 or more, Les will autograph the book for you. If you’re a history buff, or would just like to help out a man, who has done so much for us, let me know.

Lee Engdahl, Broker 650-403-6253

Excerpt from: VICTORY Tales of a Tuskegee Airman

by Les Williams

"By the time Williams graduated from high school he had to find a way to pay for college tuition. He turned to his passion—tap dancing—and opened a small studio to finance his studies. He graduated from San Mateo Junior College in 1939 but liked teaching dance so much he kept the business going. Then Pearl Harbor was hit. Williams joined his friends—all white—in applying for the Army Air Corps.

“I wanted to serve. I was very patriotic,” he recalls, “And I didn’t want to get drafted because I thought that as a black man I’d be drafted as an infantryman. And I’d seen so many infantrymen after WWI with amputated limbs. Dancing was my life. I thought—I’d rather crash and die than wind up unable to dance. So I set my sights on flying.”

His application was never even processed and he was soon drafted into the lowest level of service: the quartermasters.

To keep his spirits up, he joined fellow quartermasters in a dance troupe—and they were soon performing for officers and visiting dignitaries. It was after one performance that a general congratulated Williams on the show and asked if he could help him in any way. “I immediately said that I wanted to be a pilot,” he recalls.

By the following week, Williams was on his way to Tuskegee Army Air Field in Alabama where an experimental training program for “negroes” had just been established. The military, like much of American society, was segregated and African Americans had not been allowed to fly. The racism that Williams encountered from the white flight instructors was fierce, and the Tuskegee Airmen had to endure a lot of abuse to get through their training."

Copyright © *2012* *Lee Engdahl*, All rights reserved. 430 N. El Camino Real San Mateo, CA 94401

San Mateo county is now experiencing multiple offers again. We are gaining on 2004. This is still the best opportunity we have seen for buyers in years, given the ~3.5% interest rates. I still remember buying a house in 1982 for 17% interest. Given the upswing in commercial rentals, in San Francisco, Bloomberg calls it

Office Space Boom 2.0

and the incredible lack of homes for rent on the peninsula, buyers may miss the boat.