The next California Gold Rush?
Let’s talk about Accessory Dwelling Units (ADUs). Are they right for you?
You know them as carriage houses, granny flats, mother-in-law suites, or duplexes. The official real estate term for these types of living arrangements is actually Accessory Dwelling Units (ADUs) or Junior Accessory Dwelling Unit (JADUs). The idea is to carve out a piece of a property that creates a secondary dwelling. Typically, it will have its own living area, kitchen, bathroom, and entrance that utilizes the water, electric and heat from the primary unit.

Although this concept has been around for ages, ADUs have recently become more popular as one way to combat the affordable housing crisis in California. And now, the ADU trend promises to become a full-fledged tidal wave thanks to several bills Governor Gavin Newsome recently signed into law. Taking effect on January 1, 2020, this package of legislation is designed to help alleviate the housing shortage and capitalize on the benefits of ADUs, incentivizing their construction and revising older zoning laws. The new legislation permits homeowners, for example, to build small independent structures (usually less 1,000 square feet) on their properties with less red tape. (more…)

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Data speaks 10 times louder than opinions. I heard this award winning author economist speak in a new way about real estate investing. His completely numbers driven approach to investing went against everything I had learned. It piqued my curiosity and caused me to look more deeply into his proven strategy.
Reproduced with permission from Robert Campbell, author of Timing the Real Estate Market.

Housing Prices Are Still Rising – But at a Rate-of-Climb that Continues to Slow

U.S. home prices rose in April, but the rate of annual gains has continued to fall from previous months. This is shown by the chart to the right, which shows the year-over-year returns from three major home price providers – the National Association of Realtors (N.A.R.), Case-Shiller, and the Federal Housing Finance Administration (FHFA).
narWhile the annual numbers continue to worsen, the month-to-month valuations are still rising in all three home price indexes. This steady downtrend in market momentum suggests that this years’ high demand spring-to-summer selling season (that started in April) may turn out to be decidedly underwhelming, even though home prices should continue to rise in the summer months.
The Case-Shiller 20-City Index – which is represented by the darkest (and smoothest looking) line on the chart – rose 10.8% in April compared with 12 months earlier and continues to show the highest year-over-year gains of any of the home price indexes. With an annual gain of 12.4% in March 2014, the 20-City Index fell to its lowest year-over-year gain in 13 months. (more…)

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