The Best Advice Possible, We're Always Here for YOU

The angst caused by the coronavirus has most people on edge regarding both their health and financial situations. It’s at times like these when we want exact information about anything we’re doing – even the correct protocol for grocery shopping. That information brings knowledge, and this gives us a sense of relief and comfort.

If you’re thinking about buying or selling a home today, the same need for information is very real. But, because it’s such a big step in our lives, that desire for clear information is even greater in the homebuying or selling process. Given the current level of overall anxiety, we want that advice to be truly perfect. The challenge is, no one can give you “perfect” advice. Experts can, however, give you the best advice possible.

Let’s say you need an attorney, so you seek out an expert in the type of law required for your case. When you go to her office, she won’t immediately tell you how the case is going to end or how the judge or jury will rule. If she could, that would be perfect advice. What a good attorney can do, however, is discuss with you the most effective strategies you can take. She may recommend one or two approaches she believes will be best for your case.

She’ll then leave you to make the decision on which option you want to pursue. Once you decide, she can help you put a plan together based on the facts at hand. She’ll help you achieve the best possible resolution and make whatever modifications in the strategy are necessary to guarantee that outcome. That’s an example of the best advice possible.

The role of a real estate professional is just like the role of the lawyer. An agent can’t give you perfect advice because it’s impossible to know exactly what’s going to happen throughout the transaction – especially in this market.

An agent can, however, give you the best advice possible based on the information and situation at hand, guiding you through the process to help you make the necessary adjustments and best decisions along the way. An agent will get you the best offer available. That’s exactly what you want and deserve.

Bottom Line

If you’re thinking of buying or selling, contact a local real estate professional to make sure you get the best advice possible.

What You Can Do to Keep Your Dream of Homeownership Moving Forward

Some Highlights:

• Don’t put your homeownership plans on hold just because you’re stuck inside.

• There are several things you can do right now to keep your home search moving forward.

• Connect with an agent, learn about resource programs for things like down payments, and get pre-approved today.

Congress Reaches Deal on $2 Trillion Stimulus Package

30YR: 3.47% (-0.03%)

15YR: 3.60% (-0.03%)

FHA30YR: 3.13% (-0.25%)

Jumbo30YR: 4.54% (+0.25%)

5/1ARM: 4.37% (+0.50%)

Lawmakers and the White House came to an agreement in the wee hours Wednesday morning on a nearly $2 trillion stimulus package intended to boost the economy and rush financial support to businesses and individuals during the COVID-19 outbreak. The package that leaders so far have agreed upon includes a direct, one-time payment of $1,200 to be sent to most adults. It also includes infusing $300 billion in relief toward small businesses, as well as a half-trillion-dollar fund to support companies that may be struggling from mass closures as the nation works to reduce the virus’ spread.

The package includes one provision that the National Association of REALTORS® advocacy team has strongly worked alongside Congress to achieve—an inclusion of unemployment aid that also would apply to independent contractors, a category that traditionally is not included in unemployment laws but one that many real estate professionals fall into.

Under the current proposal, employment insurance will be available to individuals who are furloughed, gig workers, and freelancers. Payments will be increased by $600 per week for four months on top of what states already provide for unemployment compensation. The amount of compensation will vary based upon what the self-employed individual has earned in the past.

A Senate vote is expected by midday Wednesday, followed by a House vote, and then the measure will need to go before the President for a final signature.

“At last we have a deal,” Senate Majority Leader Mitch McConnell (R-Ky.) said at about 1 a.m. in Washington on Wednesday. This “will rush new resources onto the front lines of our nation’s health care fight. And it will inject trillions of dollars in cash into the economy as fast as possible to help American workers, families, small businesses, and industries make it through this disruption and emerge on the other side ready to soar.”

Under the current relief bill, small businesses could be eligible for a Small Business Administration 7(a) loan to use money to go toward mortgage interest, rents, utilities, and payroll costs. A portion of these loans would be forgivable, including payroll costs. NAR worked with the drafters of the legislation to ensure that independent contractors and commission-based income will be eligible for the loans as well as the forgiveness provision, according to NAR’s federal advocacy team. The bills provide a boost in funding to the SBA to help expedite these loans, require little in the way of up-front certification, and also give the administration the authority to temporarily bring additional lenders into the SBA loan program to increase the options for businesses, the advocacy team added.

The legislation also includes a delay in payment of employer payroll taxes. NAR’s advocacy team explains: “All of the payroll taxes of an employer and one-half of the self-employment taxes of a self-employed individual as well as one-half of the estimated taxes of the individual that arise between the effective date of the act and the end of 2020 would not be due to the Treasury Department until December 31, 2021 with the other half due by December 31, 2022, if passed.”

The bill also includes one-time payments of $1,200 to most American adults, which likely will be delivered by early April. It will be based on income reported on 2018 taxes. The amounts will decline based on how much individuals or married couples filing jointly earned (amounts will be gradually decreased beginning with individuals who earn $75,000 or married couples filing jointly who make $150,000). Households will also receive an additional $500 per child. However, individuals earning $99,000 or above and married couples earning $198,000 or more would receive no check.

“If we get this package, we’ll be setting the stage for a good rebound in the second half of the year,” said Larry Kudlow, the White House’s top economic adviser. “This package will undergird workers and families, Main Street, small businesses.”

This marks the third stimulus bill proposed by Congress to respond to the pandemic. Last week, Congress approved a package that mandated greater access to paid sick leave for workers. The legislation also created 100% refundable tax credits designed to provide an offset for small businesses and independent contractors to cover the cost of new paid sick and family leave benefits. Read more about it. Lawmakers have also approved measures to provide free COVID-19 testing and allocate money toward developing a vaccine.

NAR’s federal advocacy team has been working alongside Congress to advocate for real estate professionals on these bills. The association has a FAQ resource page on the latest developments to its advocacy efforts on behalf of real estate professionals as well as a page devoted to the latest developments on key legislation.

Source: 

“Deal Reached on $2 Trillion Coronavirus Stimulus Bill—Largest by Far in U.S. History,” Los Angeles Times (March 24, 2020)

Why the Stock Market Correction Probably Won't Impact Home Values

With the housing crash of 2006-2008 still visible in the rear-view mirror, many are concerned the current correction in the stock market is a sign that home values are also about to tumble. What’s taking place today, however, is nothing like what happened the last time. The S&P 500 did fall by over fifty percent from October 2007 to March 2009, and home values did depreciate in 2007, 2008, and 2009 – but that was because that economic slowdown was mainly caused by a collapsing real estate market and a meltdown in the mortgage market.

This time, the stock market correction is being caused by an outside event (the coronavirus) with no connection to the housing industry. Many experts are saying the current situation is much more reminiscent of the challenges we had when the dot.com crash was immediately followed by 9/11. As an example, David Rosenberg, Chief Economist with Gluskin Sheff + Associates Inc., recently explained:

“What 9/11 has in common with what is happening today is that this shock has also generated fear, angst and anxiety among the general public. People avoided crowds then as they believed another terrorist attack was coming and are acting the same today to avoid getting sick. The same parts of the economy are under pressure ─ airlines, leisure, hospitality, restaurants, entertainment ─ consumer discretionary services in general.”

Since the current situation resembles the stock market correction in the early 2000s, let’s review what happened to home values during that time.

The S&P dropped 45% between September 2000 and October 2002. Home prices, on the other hand, appreciated nicely at the same time. That stock market correction proved not to have any negative impact on home values.

Bottom Line

If the current situation is more like the markets in the early 2000s versus the markets during the Great Recession, home values should be minimally affected, if at all.

Source

Three Reasons Why This is Not a Housing Crisis

In times of uncertainty, one of the best things we can do to ease our fears is to educate ourselves with research, facts, and data. Digging into past experiences by reviewing historical trends and understanding the peaks and valleys of what’s come before us is one of the many ways we can confidently evaluate any situation. With concerns of a global recession on everyone’s minds today, it’s important to take an objective look at what has transpired over the years and how the housing market has successfully weathered these storms.

1. The Market Today Is Vastly Different from 2008

We all remember 2008. This is not 2008. Today’s market conditions are far from the time when housing was a key factor that triggered a recession. From easy-to-access mortgages to skyrocketing home price appreciation, a surplus of inventory, excessive equity-tapping, and more – we’re not where we were 12 years ago. None of those factors are in play today. Rest assured, housing is not a catalyst that could spiral us back to that time or place.

According to Danielle Hale, Chief Economist at Realtor.com, if there is a recession:

“It will be different than the Great Recession. Things unraveled pretty quickly, and then the recovery was pretty slow. I would expect this to be milder. There’s no dysfunction in the banking system, we don’t have many households who are overleveraged with their mortgage payments and are potentially in trouble.”

In addition, the Goldman Sachs GDP Forecast released this week indicates that although there is no growth anticipated immediately, gains are forecasted heading into the second half of this year and getting even stronger in early 2021.

Both of these expert sources indicate this is a momentary event in time, not a collapse of the financial industry. It is a drop that will rebound quickly, a stark difference to the crash of 2008 that failed to get back to a sense of normal for almost four years. Although it poses plenty of near-term financial challenges, a potential recession this year is not a repeat of the long-term housing market crash we remember all too well.

2. A Recession Does Not Equal a Housing Crisis

Next, take a look at the past five recessions in U.S. history. Home values actually appreciated in three of them. It is true that they sank by almost 20% during the last recession, but as we’ve identified above, 2008 presented different circumstances. In the four previous recessions, home values depreciated only once (by less than 2%). In the other three, residential real estate values increased by 3.5%, 6.1%, and 6.6% (see below):

3. We Can Be Confident About What We Know

Concerns about the global impact COVID-19 will have on the economy are real. And they’re scary, as the health and wellness of our friends, families, and loved ones are high on everyone’s emotional radar.

According to Bloomberg,

“Several economists made clear that the extent of the economic wreckage will depend on factors such as how long the virus lasts, whether governments will loosen fiscal policy enough and can markets avoid freezing up.”

That said, we can be confident that, while we don’t know the exact impact the virus will have on the housing market, we do know that housing isn’t the driver.

The reasons we move – marriage, children, job changes, retirement, etc. – are steadfast parts of life. As noted in a recent piece in the New York Times, “Everyone needs someplace to live.” That won’t change.

Bottom Line

Concerns about a recession are real, but housing isn’t the driver. If you have questions about what it means for your family’s homebuying or selling plans, reach out to a local real estate professional to discuss your needs.

Source

March 2020 Real Estate News Updates

U.S. Postpones April 15 Tax Payments for 90 Days for Most Americans

By Richard Rubin, Laura Saunders and Andrew Restuccia

Updated March 17, 2020 12:59 pm ET

WASHINGTON—The U.S. government will postpone the April 15 tax-payment deadline for millions of individuals, giving Americans another 90 days to pay their 2019 income-tax bills in an unprecedented move.

The IRS, using authority under President Trump’s national-emergency declaration, will waive interest and penalties as well, Treasury Secretary Steven Mnuchin said at the White House Tuesday. The delay is available to people who owe $1 million or less and corporations that owe $10 million or less, Mr. Mnuchin said.

The government granted the extension to give taxpayers a financial cushion as households and businesses cope with the sudden slowdown in economic activity caused by the coronavirus outbreak. The move could provide households with hundreds of billions of dollars in temporary liquidity, Mr. Mnuchin said last week in previewing the government’s actions.

“We are going to use all the tools we have,” Mr. Mnuchin said on Tuesday. “And what tools we don’t have, we’re going to go to Congress.”

The IRS will continue to process tax refunds, and Mr. Mnuchin urged people who can file their tax returns to do so. Mr. Mnuchin said last week that the tax deadline would be delayed for all but the superrich, but his Tuesday announcement was the first explanation of the length of the delay and how it might work. The tax agency hasn’t yet released full details about how the delay will work.

As of March 6, the IRS had received 68 million individual income-tax returns. That was less than half of the returns that the IRS normally expects to get, meaning that tens of millions of people can benefit from the relaxed deadlines.

Many taxpayers who expect refunds file soon after the IRS opens filing in late January. That is particularly true for low-income households that benefit from the earned-income tax credit, which gives them cash.

About three-quarters of households typically receive refunds, and the IRS will still process returns and send out cash. However, people who file closer to the deadline typically owe money and are waiting to pay. They will benefit the most from Tuesday’s announcement, as will businesses that are worried about their cash flow.

Normally, taxpayers must pay what they owe by the mid-April deadline, and they can seek six-month extensions to file their full returns.

The IRS has adjusted its own operations during the outbreak, shifting many employees to remote work, according to a message that Commissioner Charles Rettig sent to workers late Friday. In addition, Mr. Rettig limited travel, gave employees the option of avoiding face-to-face contacts with taxpayers and stopped those in-person contacts in heavily affected areas such as New York and Seattle.

“We continue to look at what sort of flexibilities and additional options can be available to expand telework flexibility given possible resource limitations,” he wrote.

Source: https://www.wsj.com/articles/u-s-postpones-april-15-tax-deadline-for-90-days-for-millions-of-americans-11584463242

5 Simple Graphs Proving This is NOT Like Last Time

With all of the volatility in the stock market and uncertainty about the Coronavirus (COVID-19), some are concerned we may be headed for another housing crash like the one we experienced from 2006-2008. The feeling is understandable. Ali Wolf, Director of Economic Research at the real estate consulting firm Meyers Research, addressed this point in a recent interview:

“With people having PTSD from the last time, they’re still afraid of buying at the wrong time.”

There are many reasons, however, indicating this real estate market is nothing like 2008. Here are five visuals to show the dramatic differences.

1. Mortgage standards are nothing like they were back then.

During the housing bubble, it was difficult NOT to get a mortgage. Today, it is tough to qualify. The Mortgage Bankers’ Association releases a Mortgage Credit Availability Index which is “a summary measure which indicates the availability of mortgage credit at a point in time.” The higher the index, the easier it is to get a mortgage. As shown below, during the housing bubble, the index skyrocketed. Currently, the index shows how getting a mortgage is even more difficult than it was before the bubble.

2. Prices are not soaring out of control.

Below is a graph showing annual house appreciation over the past six years, compared to the six years leading up to the height of the housing bubble. Though price appreciation has been quite strong recently, it is nowhere near the rise in prices that preceded the crash.

There’s a stark difference between these two periods of time. Normal appreciation is 3.6%, so while current appreciation is higher than the historic norm, it’s certainly not accelerating beyond control as it did in the early 2000s.

3. We don’t have a surplus of homes on the market. We have a shortage.

The months’ supply of inventory needed to sustain a normal real estate market is approximately six months. Anything more than that is an overabundance and will causes prices to depreciate. Anything less than that is a shortage and will lead to continued appreciation. As the next graph shows, there were too many homes for sale in 2007, and that caused prices to tumble. Today, there’s a shortage of inventory which is causing an acceleration in home values.

4. Houses became too expensive to buy.

The affordability formula has three components: the price of the home, the wages earned by the purchaser, and the mortgage rate available at the time. Fourteen years ago, prices were high, wages were low, and mortgage rates were over 6%. Today, prices are still high. Wages, however, have increased and the mortgage rate is about 3.5%. That means the average family pays less of their monthly income toward their mortgage payment than they did back then. Here’s a graph showing that difference:

5. People are equity rich, not tapped out.

In the run-up to the housing bubble, homeowners were using their homes as a personal ATM machine. Many immediately withdrew their equity once it built up, and they learned their lesson in the process. Prices have risen nicely over the last few years, leading to over fifty percent of homes in the country having greater than 50% equity. But owners have not been tapping into it like the last time. Here is a table comparing the equity withdrawal over the last three years compared to 2005, 2006, and 2007. Homeowners have cashed out over $500 billion dollars less than before:

During the crash, home values began to fall, and sellers found themselves in a negative equity situation (where the amount of the mortgage they owned was greater than the value of their home). Some decided to walk away from their homes, and that led to a rash of distressed property listings (foreclosures and short sales), which sold at huge discounts, thus lowering the value of other homes in the area. That can’t happen today.

Bottom Line

If you’re concerned we’re making the same mistakes that led to the housing crash, take a look at the charts and graphs above to help alleviate your fears.

Buying A Home: Do You Know the Lingo?

Some Highlights:

• Buying a home can be intimidating if you’re not familiar with the terms used throughout the process.

• To point you in the right direction, here’s a list of some of the most common language you’ll hear along the way.

• The best way to ensure your homebuying process is a positive one is to find a real estate professional who will guide you through every aspect of the transaction with ‘the heart of a teacher.’

Equity Gain Growing in Nearly Every State

Rising home prices have been in the news a lot lately, and much of the focus is on whether they’re accelerating too quickly and how sustainable the growth in prices really is. One of the often-overlooked benefits of rising prices, however, is the impact they have on a homeowner’s equity position.

Home equity is defined as the difference between a home’s fair market value and the outstanding balance of all liens on the property. While homeowners pay down their mortgages, the amount of equity they have in their homes climbs each time the value increases.

Today, the number of homeowners that currently have significant equity in their homes is growing. According to the Census Bureau, 38% of all homes in the country are mortgage-free.  In a home equity study, ATTOM Data Solutions revealed that of the 54.5 million homes with a mortgage, 26.7% of them have at least 50% equity. That number has been increasing over the last eight years.

CoreLogic also notes:

“…the average homeowner gained approximately $5,300 in equity during the past year.”

The map below shows a breakdown of the increasing equity gain across the country, painting a clear picture that home equity is growing in nearly every state.

Bottom Line

This may be the year to take advantage of your home equity by applying it forward, either as you downsize or as you move up to a new home.

Homeowners' 5 Biggest Remodeling Regrets

Remodeling any aspect of a home can be a big job and a lot can go wrong when owners aren’t adequately prepared. Houzz, a home remodeling website, asked a panel of renovating experts the most common remodeling blunders they see. Here are a few of their responses.

Not budgeting properly.

Underestimating the costs of a project can be a dire mistake that could leave homeowners either with an unfinished property or having to incur a financial loss. Have a detailed budget so you don’t run out of money. Remodeling experts advise always including a 10% to 20% buffer in the budget for any unexpected costs when tackling a remodel.

Assuming DIY will save you money.

Remodeling experts call it the “DIY trap,” and rookie remodelers are especially prone to it. It’s not always cheaper to do a project yourself. It may not look right and could take triple the amount of time to complete than if you would have just hired a pro. “Limit your DIY tasks to things such as painting and simple landscaping jobs, and dedicate your time to project managing the renovation,” experts told Houzz.

Selecting the cheapest contractor.

Another common pitfall is to go with the cheapest quote from a contractor. You don’t want to have to redo poor work. Don’t just focus on the affordability of a contractor’s quote but evaluate fully what it specifies, experts recommend. Gather quotes from at least three contractors and compare them in detail. Also, evaluate the quality of their work through project photos and professional recommendations.

Failing to describe what you want accurately.

Know exactly what you want before you start and use the right words to describe it. Create idea books; search online for ideas online or in magazines; and have a specific list of layouts and finishes you desire. Become familiar with the proper terminology of those looks and finishes so you communicate them correctly to the pros, the experts recommend.

Not researching the material options.

In the same regard, choosing materials often requires some homework. Builders or contractors may fall back on the same materials they always use, but that doesn’t always mean those are right for the project. “Spend time researching the various materials options available—including looks, price, pros and cons, sustainability, durability, and which ones are best suited to your location, and take this information to your builder,” Houzz notes. “Armed with this knowledge, you can decide together the most suitable materials and finishes for your project.”

View more common remodeling mistakes at Houzz.com.

Source: “10 Biggest Remodeling Regrets and How to Avoid Them,” Houzz.com (March 10, 2020)

The Difference an Hour Makes

Some Highlights:

• Don’t forget to set your clocks forward this Sunday, March 8 at 2:00 AM EST in observance of Daylight Saving Time, unless you’re a resident of Arizona or Hawaii!

• Every hour in the United States, 568 homes are sold and median home values rise by $1.92.

• As we “spring forward” this year, be sure to reach out to a local real estate professional to see how you can take advantage of every hour in the housing market.

Impact of the Coronavirus on the U.S. Housing Market

The Coronavirus (COVID-19) has caused massive global uncertainty, including a U.S. stock market correction no one could have seen coming. While much of the news has been about the effect on various markets, let’s also acknowledge the true impact it continues to have on lives and families around the world.

With all this uncertainty, how do you make powerful and confident decisions in regard to your real estate plans?

The National Association of Realtors (NAR) anticipates:

“At the very least, the coronavirus could cause some people to put home sales on hold.”

While this is an understandable approach, it is important to balance that with how it may end up costing you in the long run. If you’re considering buying or selling a home, it is key to educate yourself so that you can take thoughtful and intentional next steps for your future.

For example, when there’s fear in the world, we see lower mortgage interest rates as investors flee stocks for the safety of U.S. bonds. This connection should be considered when making real estate decisions.

According to the National Association of Home Builders (NAHB):

“The Fed’s action was expected but perhaps not to this degree and timing. And the policy change was consistent with recent declines for interest rates in the bond market. These declines should push mortgage interest rates closer to a low 3% average for the 30-year fixed rate mortgage.”

This is exactly what we’re experiencing right now as mortgage interest rates hover at the lowest levels in the history of the housing market.

Bottom Line

The full impact of the Coronavirus is still not yet known. It is in times like these that working with an informed and educated real estate professional can make all the difference in the world.

Keeping Current Matters

American Canyon's General Plan Update Will Tackle the Toughest Issues

By: Barry Eberling

American Canyon leaders and citizens are imagining what schools, parks, utilities and traffic-slammed Highway 29 might—and should- look like in 2040.

They are updating the city general plan, a task scheduled to take until summer 2022. The City Council last December approved hiring consultants Mintier Harnish to help at a cost of $1.5 million.

American Canyon is crafting a vision that will affect other parts of Napa County. The south county community of about 21,000 people is a hot spot for housing and industrial growth. The congested, local stretch of Highway 29 is a key route to the Bay Area.

California requires communities to have general plans. One basic idea behind them is, how will the community handle growth?

“It represents your blueprint to the future,” consultant Rick Rust said at a Feb. 18 “State of the City” meeting. “Some people call it the Constitution for the city – where are you going to go and how are you going to get there?”

American Canyon has formed a general plan citizens committee to look at one of the most pressing issues – traffic. At its Jan. 21 meeting, the City Council gave marching orders.

Vice Mayor David Oro said he wants the committee to do more than blame Caltrans for Highway 29 traffic woes. He wants it to look at things that American Canyon can control.

“What if we could be a bike community?” Oro said. “Could we imagine that?”

Some Highway 29 commuters use residential side streets to try to avoid traffic snarls, to the frustration of locals.

“I would like the committee to start exploring ways we can discourage cut-through traffic, recognizing we can’t torpedo the Waze app and things like that,” City Councilmember Mark Joseph said.

City Councilmember Mariam Aboudamous and Joseph talked about possibly having traffic-calming measures on some streets.

“Just standing on Melvin (Road) for five minutes, you’ll see at least 20 cars flying by,” Aboudamous said. “It’s scary. And what’s even worse in those neighborhoods are how terrible the sidewalks are.”

Councilmember Kenneth Leary said if American Canyon is going to provide the housing for people who travel to work Upvalley, then it needs more help on Highway 29 traffic issues.

Leary challenged the notion that “this is just going to be a rural county forever and everything else is going to be thrown down here and we don’t care. There is going to be a reckoning one day and it needs to be planned for and we need to deal with this.”

On Wednesday, 14 members of the general plan circulation committee met in the City Council chamber.

“The whole point of being appointed is to get your opinions and views,” Community Development Director Brent Cooper told them.

Then members broke into groups to look at existing city documents addressing highway congestion, traffic calming, bike routes and walking routes. Their task was to decide if these plans can be improved or need to be thrown out for a fresh start.

Then there’s the major issue of the proposed West Side Connector.

A planned Devlin Road extension will create a western, parallel route to Highway 29 that has its southern terminus in the Green Island industrial area. The question is how to push the route farther south to link with residential neighborhoods without flooding those neighborhoods with traffic.

American Canyon will take the circulation committee on field trip to look at possible West Side Connector routes.

Another general plan committee is looking at education and lifelong learning. The City Council on Jan. 21 had some comments for this committee, too.

Joseph said that if American Canyon is going to have only one middle school, perhaps it should be located on a larger parcel on the east side of town. Perhaps the committee should explore whether it’s feasible for American Canyon to have its own school district.

General plan updates sometimes result in cities deciding to expand their growth boundaries. Whether the issue will come up during the American Canyon update remains to be seen.

Napa County and American Canyon agreed in 2008 to a maximum size for city boundaries through 2030. But the general plan update looks ahead to 2040, beyond the agreement.

Cooper said the general plan update has only just begun. It’s too early to tell if the growth boundary will need to be changed. However, any proposed change may require an amended agreement with the county.

Nor has the city of about 21,000 people yet set a population target for 2040. However, Cooper said, the recently approved Watson Ranch and Broadway plans will constitute the bulk of new housing over 20 years and combined could add 8,500 residents.

At the Feb. 18 State of the City meeting, the audience of more than 100 people had the chance to participate in a general plan survey.

They named the biggest challenge facing American Canyon. Forty-nine percent said Highway 29 traffic, 21 percent said lack of affordable housing, 17 percent said lack of good-paying jobs, 6 percent said overcrowded schools, 4 percent said climate change effects and the remainder chose something else.

But apparently the specter of rising sea levels and temperatures is a major concern in this city bordering wetland and water. When asked the biggest challenge for 2040, 31 percent said climate change effects, with Highway 29 traffic dropping to second at 29 percent.

The American Canyon general plan has sections addressing circulation, recreation, education, housing and other topics. Go to https://bit.ly/2wa2kOQ to find more out more information on the update and how to participate.