June is National Homeownership Month, a time of year when all housing advocates highlight the importance of homeownership and its impact upon the lives of American families, local neighborhoods, and the national economy. The Silicon Valley Association of Realtors (SILVAR) and its nearly 5,000 members engaged in the real estate business on the Peninsula and in the South Bay are staunch advocates for homeownership and homeowners in Silicon Valley.
"Homeownership is an investment in the community," said SILVAR President Joanne Fraser. "When more people own homes, everyone benefits. For most American families, their home is their largest investment. Homeownership builds wealth and serves as the cornerstone of health and security."
Homeownership provides tax advantages and the opportunity to build equity. Moreover, homeownership provides social benefits for families and communities. According to the National Association of Realtors, homeowners move far less frequently than renters, making it easier to build community networks and support systems. This results in more stability for families, better school performance by children living in owned homes, a higher rate of high school graduation and higher earning, and better physical, psychological and emotional health outcomes, a higher membership in voluntary organizations, and greater social interaction in their communities.
Fraser noted during the height of the coronavirus pandemic, having a home became more important to many families than ever before. "Home became a place to live and work as many companies allowed their employees to work from home. This ultimately contributed to the state's current housing market boom."
At a recent market data presentation, California Association of Realtors Vice President and Chief Economist Jordan Levine said the state's housing market boom is a double-edged sword. Levine indicated California is the second worst state for overcrowded housing and fifth lowest homeowner vacancy ratio in the nation.
According to C.A.R., only 27 percent of California households could afford to purchase a median-priced home in first-quarter 2021. In April, California's median price rose even higher to more than $8 million. Levine said while good for sellers, this has impacted housing affordability. "Buyers are falling farther and farther behind."
Additional help may be on the way, said Fraser. "The state Senate's 'Building Opportunities for All' housing package is expected to help expedite building of more housing, create jobs and stimulate economic development."
SB 6, a bill Realtors have advocated, has passed the Senate and is now in the Assembly. SB 6 would allow certain ministerial approval of commercial re-zonings for residential use up to 20 dwelling units per acre.
"This is primarily aimed at making it easier to increase housing supply in places where commercial properties are underutilized and vacant," explained Fraser.
In response to President Joe Biden's $15,000 first-time homebuyer tax credit proposal, Congressmen Earl Blumenauer and Jimmy Panetta have introduced the "First-Time Homebuyer Act" that will provide a tax credit for first-time homebuyers of up to 10 percent of the purchase price of their new home, or $15,000. The program targets low and middle-income buyers and stipulates that they must not make more than 160 percent of the median income in their area, and that the home purchase price must not be more than 110 percent greater than the area's median purchase price. If passed, the bill would enable borrowers to claim the credit for any primary residence they have purchased after December 31, 2020.
To be eligible for the tax credit, potential buyers cannot have owned or purchase a home in the previous three years. Borrowers would also need to use the home as their primary residence for a minimum of four years after purchasing it.
"With home prices rising higher than ever, any down payment assistance helps families looking to buy," said Fraser.
The Silicon Valley Association of REALTORS® (SILVAR) is a professional trade organization representing over 4,000 REALTORS® and Affiliate members engaged in the real estate business on the Peninsula and in the South Bay. SILVAR promotes the highest ethical standards of real estate practice, serves as an advocate for homeownership and homeowners, and represents the interests of property owners in Silicon Valley.
The term "REALTOR®" is a registered collective membership mark which identifies a real estate professional who is a member of the National Association of REALTORS® and who subscribes to its strict Code of Ethics.
Variations of this article have appeared in local area newspapers.
For further information, please email or call the SILVAR office at (408) 200-0100.