WEEKLY PERSPECTIVE 10-17

Happy Friday everyone! Just finishing up out work week here at Berkshire Hathaway in Montecito. Last week we touched on days on market in Santa Barbara and now we want to talk about Montecito. There has been a lot of talk about the slow down of the upper end. In fact the average time to sell a home in Montecito has increased 60% over last year, to 134 days which is over 4 months on the market.

And that's a long time to sell your home, but if you are shopping in the ultra-high end, say over 10 million dollars there is a decrease in inventory right now. It is about a 36% change from 11 homes active last year and only 4 this year. Although these are both big changes we see this as a stabilization of the market and now is pretty much an opportunity to stand out from the pack. So, you need proper preparation, you need to price your home accurately, you need to stage your home, and you need to work with an agent (or agents!) that understands the value of strong marketing.

So if you are thinking of buying or selling contact us today, call or email us and we would love to give you a consultation.

Have a great weekend!

Intero Founder Gino Blefari to take charge of Warren Buffett's real estate franchise business

Earl Lee, the veteran Prudential Real Estate executive who helped launch Warren Buffett’s new real estate franchise brand, Berkshire Hathaway Home Services, will step down as CEO of parent company HSF Affiliates Inc. on Jan. 1 and hand over the reins to Gino Blefari, the founder of Intero Real Estate Services.

Cupertino, Calif.-based Intero Real Estate Services was acquired last month by Buffett’s giant brokerage firm, HomeServices of America Inc., giving the company a foothold in Silicon Valley.

Lee, 69, served as an executive with Prudential Real Estate for 14 years before becoming the first CEO of HSF Affiliates, a joint venture between Berkshire Hathaway Inc. affiliate HomeServices and Brookfield Asset Management. Before joining Prudential Real Estate, he served as an executive for 20 years at Honolulu-based brokerage Prudential Locations LLC.

HSF Affiliates was established after HomeServices of America took a majority interest in the Prudential Real Estate and Real Living brands from Brookfield in October 2012. Nearly 500 brokerages representing 45,000 agents in 1,600 offices across the U.S. are affiliated with the company’s franchise brands, which include Berkshire Hathaway HomeServices.

Blefari, who founded the Silicon Valley-based Intero Real Estate in 2002 after serving for five years as an executive with real estate giant Realogy, will serve as a senior vice president of HSF Affiliates until he takes over as CEO on Jan. 1.

“Earl has been instrumental in developing and executing the initial business growth strategies of HSF,” said Ron Peltier, chairman and CEO of HomeServices, in a statement. “Gino is renowned for his vision, leadership skills and real estate experience, and will be a tremendous addition to the superb senior leadership team already in place at HSF.”

“Up until two days ago I did what (brokers in the HSF Affiliate network) are doing,” Blefari told Inman News. With his firsthand knowledge gleaned from his recent experience growing a profitable, large brokerage from the ground up, Blefari says he’ll be a good resource for brokers.

Blefari said a leadership role at HSF Affiliates is “the perfect next step for me.”

HomeServices of America said Intero Real Estate co-founder Tom Tognoli has been named president and CEO of the company, and John Thompson will become chief operating officer.

The last 18 months have been a whirlwind for Lee and HSF Affiliates,  with Lee overseeing the launch of Buffett’s new real estate franchise brand, Berkshire Hathaway HomeServices.

Berkshire Hathaway HomeServices was created to take the place of the Prudential Real Estate brand, which is slated to disappear when the last franchise rights to the name expire in the 2020s.

Since welcoming its first brokerage on Sept. 23, BHHS’s network has grown to more than 70 firms.

Lee, a perennial member of Inman News’ 100 Most Influential Real Estate Leaders, will continue in a senior advisory role at HSF Affiliates through 2015.

Stephen Phillips, chief operating officer of HSF Affiliates and president of Berkshire Hathaway HomeServices, and Bob McAdams, president of Real Living Real Estate, will remain in their current roles.

By Paul Hagey, Inman.com

California Housing Market Expected to Thrive in 2016

The California Association of Realtors' (C.A.R.) 2016 California Housing Market Forecast, released yesterday, foresees 2016 to be "the best year for home sales activity since 2012." According to the report, California is expected to see over 430,000 home sales next year, exceeding 2015 sales by over 25,000 closings, an annual increase of 6.3%. Demand in less expensive areas (like the Central Valley and San Bernardino) is projected to stay strong thanks to solid job growth.

The forecast calls for a 3.2% increase in home prices next year, compared to 6.5% in 2015, 9.8% in 2014, 27.5% in 2013 and 11.6% in 2012.

Although home sales are expected to grow in the coming year, home affordability will continue to be an issue in the Golden State. Despite this cost affordability, 2016 is anticipated to be the best year for sales activity since 2012, which is great news for the California housing market.

Fixed rate 30-year mortgages are also expected to reach 4.5% in 2016.