16 Jul 2019

Statewide Rent Cap and Just Cause for Eviction Proposed

Rent control and just cause for eviction laws have been proposed on both a statewide and local level over the past year. One bill is inching towards implementing state-wide rent control and just cause for eviction - AB 1482. However, unlike past bills, this one has numerous provisions in place to temper the negative impacts that rent control and just cause for eviction often have on property-owners. For example, the changes made by the bill

1 Jul 2019

Liquidated Damages Clause- What It Is And Why It Matters When Buying or Selling Real Estate

If you plan to buy or sell a residential home in California, you will likely use the California Residential Purchase Agreement and Joint Escrow Instructions (RPA-CA) contract to specify the terms of the deal and how they will be executed.

26 Jun 2019

Section 8 Vouchers – A New Bill With Big Implications

A new, proposed California Senate bill will prohibit landlords from discriminating against those with Section 8 vouchers. In this article we’ll explain what the bill proposes and explore different perspectives of those who will be impacted by it.  What Is the Section 8 Voucher Program? The Section 8 voucher program is the federal government's major program for assisting very low-income families, the elderly, and the disabled to afford housing in the private market. In Santa

4 Jun 2019

Creating and Selling A “Smart Home”

Smart homes are homes that have been equipped with lighting, heating, safety features and/or other devices that can be controlled remotely by phone or computer. According to a 2016 survey, 60 percent of Americans think that a home needs to have at least three categories of smart products for it to be considered “smart”.

3 May 2019

Avoiding Capital Gains with a Deferred Sales Trust

Do you own a property which has appreciated considerably since you purchased it? Have you been hesitant to sell because you want to avoid paying capital gains tax? If you've answered yes to either of these questions you may benefit from using a Deferred Sales Trust (DST). If you are at risk of paying a substantial sum in capital gains tax when selling your home, and if you either don’t quality for or would like

8 Apr 2019

Housing Bills on the Horizon: What Is Being Proposed in Sacramento?

Locally and on a statewide level, rent control and just cause for eviction ordinances have not been very successful in winning majority-approval. Understandably, legislators fear that if nothing is done, rental housing will continue to make up a disproportionately high percentage of renters paychecks. California legislators are working to come up with solutions to our local and statewide housing issues. Some focus on decreasing the barriers to development, while others focus on capping rental rates

8 Apr 2019

Tech IPO’s: Higher Prices Over the Hill, Bubble-Speculation, and What it Means for The Santa Cruz Real Estate Market

As you may have read about in our newsletter last month, 2019 is slated to produce a long list of multi-billion-dollar IPOs from San Francisco Bay Area heavyweights like Lyft, Uber, Palantir, Pinterest, Airbnb, Slack, Postmates, and Instacart. According to Patrick Howell O'Neill, this will results in a massive and sudden injection of liquid cash into a region already infamous for having the nation’s priciest real estate. While the impact may not be as sudden

31 Jan 2019

Buying a Home with A Reverse Mortgage?

Did you know that, if you are 62 or older, you may be able to use a reverse mortgage to purchase a home? In this article we cover how you can use the equity in your current residence to purchase property; different Reverse Mortgage options on the market today, and how this financial decision will impact your heirs. Using a Reverse Mortgages to Buy a Home You may have heard of using a Reverse Mortgages

7 Jan 2019

Major Downtown Housing Project Moves Forward

In the wake of a passionate election season in which affordable housing was one of the major topics of debate, a large housing project was just approved in the City of Santa Cruz. The Pacific Front project is a 205-rental unit housing project which includes ground-floor commercial space and two floors of parking garage. Have you ever heard of Measure O? Under this measure, developers of housing projects must make a certain percentage of their

7 Jan 2019

What to Expect in the 2019 Santa Cruz Housing Market

As 2018 comes to a close, we are starting to see the housing market slow down in California. The statewide sales-to-list price ratio (sales price / list price) hit the lowest level in 20 months and was down from a year ago: 98.5 percent in September 2018 compared with 99.1 percent in September 2017. We are also beginning to see inventory rise as homes stay on the market longer. Can we expect the market to heat up again

17 Dec 2018

Solar Panels Required on New Homes in California – What it Means

California just became the first state to require all new construction, starting in 2020, to be solar powered. The new standards apply to new residential single-family buildings and multifamily buildings up to three stories high. The solar power can either be supplied by a new structure’s own set of solar panels, or buy a shared solar-power system serving a group of homes. The formalization of this mandate into the CA Building Code has elicited mixed

30 Oct 2018

Green Homes For Sale in Santa Cruz

What is a Green Home?   The definition of a “Green Building” can vary widely depending on who you ask. Green buildings are often constructed in a way and/or with building materials that result in less pollution during construction and energy-consumption over the lifetime of the building. Green features can range from energy-saving features to being zero-net energy (a building that produces all of the energy it consumes).   Why Green Homes Are A Good

5 Sep 2018

Initial Stages of a Market Shift

We may be at the beginning of a market shift.   Realtor.com’s Chief Economist Danielle Hale reports that Pending home sales remained lower than one year ago for the sixth consecutive month in spite of inventory beginning to become more available. Six months of declining pending home sales year over year suggests we are experiencing market movements that cannot be explained away by seasonal variation. According to Hale, a mismatch in price between what’s available

13 Jun 2018

Prop 13 Extension on November Ballot

Before Prop 13, there were no limits on increases for the property-tax rate. Some properties were reassessed 50% to 100% in just one year and their owners’ property tax bills increased accordingly.   Under Proposition 13 tax reform, property tax value was rolled back and frozen at the 1976 assessed value level. Property tax increases on any given property were limited to no more than 2% per year as long as the property was not

15 May 2018

Repealing Costa Hawkins Act?

The Costa Hawkins Act (Costa-Hawkins) allows cities to implement local rent control laws, but within specific parameters: housing constructed after 1995, single-family homes, condominiums, and townhouses are exempt from local rent control regulations. Additionally, Costa-Hawkins allows rental property owners to establish their own rates at the time of a change in tenancy.   A proposed ballot initiative entitled the “Affordable Housing Act for the California November 2018 Ballot” was submitted to the California Attorney General’s

8 May 2018

Creative Affordable Housing Solutions

We've written about the downsides of rent-control in recent articles, and how the more sustainable solution to our present-day housing crisis would be an increase in the supply of affordable housing. However, creating affordable housing in the second-smallest (by land area) county in the state is not an easy task.   One proposed solution in Santa Cruz City involves rezoning the main corridors to allow for higher-density housing in Santa Cruz city. Unfortunately, affordable housing

24 Jan 2018

Changes to Look out For in the 2018 Real Estate Market

We recently wrote about predictions for the 2018 housing market. This article is an extension of our previous post, and covers two important legislative battles that are gaining momentum.   Rent Control: Rent control legislation proposals are popping up on a state and local level. According to this article, Assemblyman Richard Bloom (D-Santa Monica) will be proposing legislation on January 11th to repeal Costa-Hawkins, which would allow local governments to implement new rent control policies. Additionally,

5 Jan 2018

What’s Coming: the 2018 Santa Cruz Real Estate Market

At the beginning 2018, there are some important changes on the horizon for Santa Cruz Real Estate. The Tax Cuts and Jobs act, which is making its way through the House and Senate, will be a major determinant of 2018 housing market health. We've written about its potential impact on the California real estate market in a separate blog post, and will provide regular updates on this topic. Here, we summarize some other major factors

30 Nov 2017

Cannabis Cultivation and Santa Cruz Real Estate

  CLICK HERE FOR AN UPDATED VERSION OF THIS ARTICLE The passage of Prop 64 allows for the sale and taxation of commercial cannabis in the state of California. This development may have both negative and positive consequences for local Real Estate Markets. Commercial real estate owners in areas where cannabis cultivation and the sale of marijuana are legal may see a significant increase in real estate values and lease-rates. For example, in Denver, cannabis

21 Jun 2017

When Will Prices Go Down?

As we talk to clients, we are hearing a similar question time and time again: When Will Prices Go Down? Measures of housing affordability in Santa Cruz suggest that rising income levels in neighboring communities are pushing up housing prices. Santa Cruz residents are finding it challenging to afford homes and younger generations are leaving in search for lower-priced housing. To maintain a healthy, diverse, and vibrant community it's vital that local economic growth keeps

28 Feb 2017

Changing ADU Laws in Santa Cruz

In response to our state's housing shortage, Governor Brown has signed Senate Bill (SB) 1069, which will make it easier, and for some, less expensive to develop Additional Dwelling Unit's (ADU's). SB 1069 will require local governing bodies to loosen ADU regulation. Both Santa Cruz County and City have amended their ADU related ordinances. We report on major ordinance changes that the city has publicized. We also summarize County ordinance changes, which are still contingent on Coastal Commission

14 Dec 2016

2017 Santa Cruz Real Estate Market Predictions

It’s amazing that we are at the end of another year. Here at Schneider Estates we have much to be grateful for. Most of all, we are so grateful for you. You allow us to do what we love everyday. From helping younger couples find their first homes to ensuring seasoned investors find good deals and everything inbetween, we are honored to get to work with you and help you to make wise, informed real estate

9 Sep 2016

Rising Sea Levels – Local Consequences

With man-made climate change being widely accepted by the scientific community, the question is no longer "if" but "when" our communities will be affected by these large-scale changes in the environment. The Pacific Institute has recently released an interactive map that projects to 2100 and identifies at-risk areas in the event of a major flood or from erosion, with both scenarios dependent on a ~4.6 ft sea-level rise. Read more about the study conducted here and see the actual

27 Jun 2016

What is going on in the California Real Estate Market?

Interest Rates Fed rate hikes can increase borrowing costs. The FED has been waiting for the job market to improve to increase rates. Lower-than expected job growth led to a delay in a rate increase in June, however once job growth improves, it is likely that rate increases will follow. Mortgage rates are largely influenced by global capital flows. With large inflows of foreign capital, mortgage rates have been low because there is an inverse