Bay Area Outlook for 2020 – Realtor Rebecca Jepsen is happy to answer all your questions
How’s the real estate market REALLY doing, you ask? Not only is the weather warming up, but the market is also definitely heating up as well, says realtor Rebecca Jepsen. Since the beginning of the year, “we definitely see more listings, open house traffic is really good, and multiple offers are being made on good homes that are priced right,” she adds. “The market has balanced out a bit in the last year, but after historic highs for nearly nine years — that needed to happened.” “I just made a move and would love to help you make one, too,” says the longtime South Bay Realtor who recently joined the team at Golden Gate Sotheby’s International Realty, (GGSIR) in Los Gatos. Having always associated herself with the industry leader in terms of quality, excellence, and brand recognition, she says the GGSIR’S philosophy “aligns perfectly with my standards in real estate: deliver exceptional customer service, treat clients’ money as if it was my own, and turn what can sometimes be a stressful, turbulent and even emotional experience into a smooth, straightforward and hopefully, even enjoyable one.” Jepsen predicts that the first half of 2020 will be an incredible time to buy a home. Interest rates are still at historic lows, inventory is starting to pick up, and of course, the Bay Area job market is as strong as it has ever been. Interested buyers are flocking to open houses ready to buy and ready to compete against multiple offers. According to Mitch Day, a mortgage broker with Wells Fargo in Los Gatos, current 30-year fixed jumbo interest rates are hovering right around 3.5 percent APR, and you can get a conforming, 15-year rate at just above 3 percent APR. There are also excellent programs available for those who can’t come up with the standard 20 percent down payment and/or don’t have stellar credit. Eager buyers translate to an excellent time to sell. Not only will you get top dollar for your home, says Jepsen, but sellers who are looking to downsize or moving out of state can take advantage of some incredible tax breaks and more affordable homes elsewhere. Per the federal tax reform law, passed in December 2017, the state and local tax (SALT) deduction for property and sales tax was capped at $10,000 per household. And, for homes purchased after December 15, 2017, homeowners can only deduct mortgage interest paid on up to $750,000. However, the standard deduction for married couples filing jointly has nearly doubled to $24,000, which will save homeowners money without having to itemize their taxes. Additionally, those homeowners over 55 years old can take advantage of Propositions 60 and 90 which allows them to take their current property tax rate with them. If you sell your home and purchase, or build, one of equal or lesser value within two years, Proposition 60 allows you to make an intra-county transfer, and Proposition 90 allows for a move to another participating county. Jepsen also suggests that this is an opportune time to consider purchasing an investment property. “Even if the economy takes a downturn, Bay Area real estate always recovers,” she says. “I believe owning real estate, especially rental property that provides a monthly income stream, is a fabulous investment and has historically been an incredible way to build wealth.” “You can use a 1031 Exchange to swap one rental property for another and defer your taxable gains, “she says. There is no limit on how many times or how often you can do a 1031, she adds, and “by deferring the capital gains until retirement age, you will end up with long-term gains that are taxed at, generally, a much more favorable rate. Because “property tax and state income tax on rental property are considered business expenses, these have not been capped by the SALT revision.” When the real estate market bottomed out around 2007, says Jepsen, “people panicked, but by May 2019, local real estate hit an alltime high and a ‘peak’ that was much higher than the previous one. Real estate should be viewed as a long
term investment, not a quick hit,” says Jepsen. In certain markets at certain times, you can make a quick profit, she adds, “but you need to be able to weather the storm if market conditions or your circumstances change.”
Some South Bay cities had more sales in 2019 than in 2018. Monte Sereno sales were up by 13.5 percent, 6 percent in Saratoga, and 4.75 percent in Santa Clara. Even the 4 to 6.4 percent decrease in the number of sales in cities like Palo Alto, San Jose, and Los Gatos still equated to recordbreaking numbers.
Although Saratoga had a slight 4.17 percent decrease in the average sales from 2018 to 2019, home prices there have increased a whopping 33.71 percent in the past five years, and nearly 100 percent over the last ten. Home prices in San Jose have increased 46 percent over the past five years, and an astounding 144 percent in the past ten years.
“No one has a crystal ball, but if I were looking to buy or sell,” says Jepsen, “I would say the 2020 housing market is going to continue to be positive for both sides.”
With more than 20 years in the tech industry, and as a continued tech investor, Jepsen keeps her finger on the pulse of the stock market and recognizes that Bay Area real estate is tied at the hip to the NASDAQ. Many of her clients appreciate this level of knowledge.
“When high tech stock takes a hit, those smart, savvy, and experienced people who have worked hard and made their money in high tech, not only at companies like Google, Facebook, and Apple but at veteran corporations like Intel, Adobe, Cisco, will rein-in their finances and postpone the purchase of a home or investment property until their portfolios recover.”
Golden Gate Sotheby’s International Realty is excited to welcome Jepsen to its Los Gatos office. Anyone who knows and works with Jepsen, also knows Jepsen’s energy is infectious. And, her attention to detail gives her clients peace of mind.
“Rebecca has already been such an asset to our Los Gatos team,” says Ashley Banks, Sotheby’s senior vice president and region manager, Silicon Valley. “We are just six weeks into the new year, and she already has five new listings and a buyer purchase under her belt. Rebecca is really ‘rockin’ 2020,” says Banks.
As a Santa Clara Master Gardener, and newspaper garden columnist for the past 12 years, Jepsen says she “enjoys planting the seeds, whether that’s cultivating a healthy garden, building new relationships, or supporting her community.”
She has built and remodeled several of her own homes and loves sharing her knowledge and experience with her clients. From simply picking out a new paint color, to updating the landscaping, or doing a complete remodel, her expertise and enthusiasm pay off for sellers.
A Saratoga resident for more than 30 years, she also takes great pride in giving back to her community and has served on the City’s Public Safety Task Force, is the Neighborhood Watch lead for her neighborhood, and serves on the board of Rebuilding Together.
“The market has really picked up,” says Jepsen. “I currently have several singlefamily homes and condos available in Saratoga, Los Gatos, Campbell, and Santa Clara,” she adds. “If you are thinking about making a move in 2020, call me. I’m here to help.”