The job market is stronger With the recession behind us, more and more companies are adding new employees to the payroll. The unemployment rate has dropped 5.8 percent and 321,000 jobs were opened up in November. All of this work equates to improved consumer optimism; The Conference Board's latest Consumer Confidence Index highlighted confidence weighing in at 19.5 percent higher than a year ago. As jobs continue to stabilize and moods lift, more potential homebuyers will enter the market as they become more eligible for a mortgage, and more capable of taking on those pesky mortgage payments. according to Zoe Eisenberg is RISMedia's Associate Editor. 17,000 jobs in April, pushing down unemployment rates to their lowest levels in nearly six years, according to the Mercury News. MLS reprots an 18% raise in home prices in San Mateo County.

CALIFORNIA HOME PRICES RISE

HOME PRICES RISE YEAR OVER YEAR IN SEPTEMBER Home prices nationwide, including distressed sales, increased 5.6 percent in September 2014 compared to September 2013, according to the September CoreLogic Home Price Index report. This change represents 31 months of consecutive year-over-year increases in home prices nationally. On a month-over-month basis, home prices nationwide, including distressed sales, dropped 0.1 percent in September 2014 compared with August 2014.

Re-post from CAR

Bill to Stop Tax on Loan Modifications Passes Legislature – updated 7/17/14 If the principal on your mortgage was reduced with a loan modification new legislation may lower taxes. The Legislature has passed AB 1393 (Perea), a bill that will prevent homeowners from being charged state income tax when they’ve had a mortgage loan modified to reduce the principal. Under current law, the forgiven debt created by a reduction in principal as a result of a loan modification isn’t subject to federal income tax, but is currently taxable under state law. The bill has been passed by the state Legislature and awaits the Governor’s signature. If signed, it will become effective immediately and is retroactive to January 1, 2014. This is great news for homeowners.

Historic Low for Young Adult Home Ownership Rate *

Young Americans are putting off home buying at unprecedented levels. The home ownership rate for the Millennial generation age group has fallen to its lowest level since the U.S. Census Bureau started tracking home ownership by age in 1982. The home ownership rate in the first quarter of 2014 for Americans 35 and under fell to 36.2 percent, dropping from 36.8 percent in 2013. Broken down even further, Americans in the 25-29 age group had the biggest decline in home ownership rates at 33.3 percent, followed by 47.5 percent for the 30-34 age group. Granted, home ownership for all age groups has fallen to 64.8 percent, the lowest level since 1995. But Dean Baker, co-director of the Center for Economic and Policy Research in Washington, D.C., says that high student loan debt and sluggish unemployment are added elements that are keeping many young Americans on the sidelines. “The labor market for younger people remains pretty bad. Obviously you’re worse off without a college degree, but for people with college degrees, if they have a regular job, often it’s not paying very well and often they are jobs that pay just as well for people who have just a high school degree,” Baker says. “They also have a lot of debt. So it’s not surprising that people in their late 20s or early 30s are less likely to buy a home than what might have been the case 20 or 30 years ago.” The unemployment rate for those ages 20-24 is 12.4 percent, according to March data from the Bureau of the Labor Statistics. The unemployment rate for Americans 25-34 years old is 7 percent, compared to the national average unemployment rate of 6.7 percent. “Those stories you hear about people in their 20s or early 30s living with mom and dad, those aren’t just stories, and if people don’t move out, they’re not going to buy a house again because we’re still in the after effects of the worst financial crisis in 75 years,” said David Wessel, senior fellow of economic studies at the Brookings Institution in Washington, D.C. * Source: “Homeownership for Millennials Declines to New Lows,” U.S. News & World Report (April 30, 2014)

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