All about Life & Real Estate in Silicon Valley – Broker Michael Koo's Blog.

Santa Clara County’s taxable property value reached a record $760B, lifting the assessment roll that helps fund local governments, schools, and public agencies.
The assessment roll expanded by $34.4B, a yearly gain of ~5%, led by ownership changes, inflation adjustments, and $4.9B from new construction.
Ownership changes added $16.9B in assessed value, while inflation adjustments contributed $14B, showing resales and routine increases carried much of the county’s growth.
Residential sales generated 82% of value from ownership transfers, underscoring how housing supported Santa Clara County’s tax base even as elevated mortgage costs cooled demand.
A key watchpoint: ~$153.6B in assessed value was under appeal, with commercial properties driving 98% of challenges and billions in lost value.
Looking ahead, the county assessor warned more commercial appeals could pressure the roll, while construction remained a bright spot even with several major projects delayed.

There is no single required down payment: the right amount depends on loan type, property, credit, finances, monthly payment comfort, reserves, and market competition.
The traditional 20% benchmark mainly mattered for avoiding mortgage insurance on conventional loans; many buyers qualified with less, but still needed cash for closing costs.
Closing costs can include lender fees, first-year homeowners insurance, escrow setup, and title fees, and sellers may sometimes cover part to help preserve reserves.
Conventional loans can start at 3% down, some government-backed options allow 0%, and jumbo loans often need 10% to 20%+ with stronger reserves.
Assistance programs from housing agencies, nonprofits, or employers can help with down payments and closing costs; >2,700 US programs offer avg. benefits near $18K.
A larger down payment can lower the loan, monthly payment, and insurance costs, but buyers may benefit from budgeting first and keeping emergency reserves.

The California Legislature approved a bill requiring local governments to disclose infrastructure fees and requirements within 30 days of permit applications for new housing.
Current law did not require cities to reveal all infrastructure obligations or costs, and governments were not required to provide or honor builder estimates.
Those late-stage surprises often made financing harder and limited homebuilding, because builders lacked complete cost information when setting budgets for new California housing projects.
The measure also barred local governments from adding requirements after the 30-day window unless they showed a specific public health or safety need.
The approved bill then headed to the governor's desk, with backers saying earlier disclosure and firmer deadlines would reduce project risk and costs.

In Mid-Summer, US pending home sales fell ↓2.3% MoM and ↓2.2% yearly, showing softer contract activity as buyers navigated a tougher affordability backdrop.
MoM contract signings declined across all four major US regions in Mid-Summer. Yearly activity improved only in the Midwest and softened elsewhere.
The West saw the sharpest Mid-Summer pullback, with pending sales ↓4.7% MoM and ↓7.1% yearly, while the Midwest posted the only yearly gain.
An economist said the year's highest mortgage rates hit in Mid-Summer, while record-high prices kept listings active longer and cooled above-ask offers.
That economist said job gains could bring more buyers back if mortgage rates stabilize or ease, with improving supply and affordability supporting future demand.

Hybrid work has reshaped US offices, pushing investors to consider conversions, specialized spaces, flexible models, and hands-on repositioning instead of passive, traditional leasing.
Office-to-residential reuse is a leading path where transit and amenities already exist, though deep floor plates, plumbing, HVAC, and design hurdles require due diligence.
The strongest demand is concentrating in premium and niche properties, including medical offices, labs, and amenity-rich workplaces, while flexible space models offer shorter-term agility.
Distressed sales may expand as lenders grow cautious, so investors need strong business plans, alternative capital sources, and clear strategies to stabilize or repurpose assets.
Winning approaches depend on hyper-local insight, sustainability upgrades, smart-building tools, and public incentives, with experts expecting a multi-yr rebalancing rather than a quick reset.

The national confidence index in Mid-Q3 edged up to 35, still below the 50 mark that signals generally positive conditions for single-family builders.
Current sales improved to 39, six-month sales expectations held at 43, and prospective buyer traffic stayed limited at 23, showing demand remained uneven.
Pricing activity eased slightly: ~35% of builders cut prices in Mid-Q3 versus ~37% in Early-Q3, while the avg. reduction held near 6%.
Price cuts remained widespread, with ~63% of builders still offering incentives and >30% reporting reductions for 16 straight months, underscoring ongoing cost-demand balancing.
Conditions looked comparatively stronger in smaller, less-dense markets, among smaller builders, and in custom construction, suggesting performance continued to vary meaningfully across US segments.

Early-Q3 applications for newly built US homes fell ↓~6% yearly and ↓1% MoM, showing weaker buyer financing demand than both a year earlier and Late-Q2.
An industry group linked the slowdown to elevated new-home inventory and greater buyer sensitivity to higher mortgage costs as challenging sales conditions persisted.
Its estimate showed new single-family sales ↓3% from Late-Q2 to a 647K annual pace, equal to 54K homes sold versus 56K previously.
Builders kept leaning on incentives averaging 9% to 14% of typical prices, while the avg. loan amount eased to $374K in Early-Q3.
Official Late-Q2 data had shown sales ↑1.6%, yet current-year activity remained ↓~5%, underscoring how Early-Q3 demand softened as financing costs moved higher into Mid-Q3.

An industry group's analysis projected that by 2035, the US could have more homes listed for sale than people looking to buy or rent.
Slower population growth, lower birth rates, aging demographics, and reduced immigration are expected to shrink household formation across the US over the next decade.
Pandemic-era low mortgage rates temporarily intensified the shortage, but demand later cooled while post-pandemic construction stayed elevated, creating conditions for a future supply-demand mismatch.
If builders keep adding homes at the current pace, some local markets could see softer prices, more buyer choice, and slower equity gains.
The expected release of homes from aging owners was described as gradual, not sudden, meaning supply may build over many years rather than surge.

Buyers are gaining negotiating power as more markets shift away from seller-dominated conditions and competition becomes less intense.
Builders are increasingly using incentives, mortgage-rate buydowns, and price adjustments to attract hesitant buyers.
More available homes are giving purchasers greater flexibility to compare properties rather than rushing into offers.
Elevated mortgage rates remain a major constraint, keeping demand cautious even as purchasing opportunities improve.

Mortgage rates are now expected to remain elevated into 2027, meaning financing costs could continue influencing buyer decisions.
A slower decline in rates could keep demand below historical norms even if economic conditions improve.
Buyers may increasingly focus on rate buydowns, adjustable products, and other financing strategies to manage borrowing costs.
Home-price growth could remain moderate as high financing costs limit how aggressively buyers can bid.