Area Real Estate News & Market Trends

The market is constantly changing and although, we are running with a very strong real estate market with short DOM, there are some areas where buyers may find opportunities and sellers will definitely benefit from knowing the latest trends that impact values.

Our writings are strictly based on the statistics from the local MLS, not State-wide, or National Trends. We are merely the messengers and no opinions will be expressed only summations of the documented data.

We do not have a 'Crystal Ball' and urge our readers to understand that the Real Estate Market, just like all other economic markets are cyclical in nature and what may hold true on the publish date, may not at a later date, therefore if you wish more timely numbers from which to base any buying or selling decision, then call us directly and let us provide that data to you always FREE of CHARGE!!!

We operate with the premise that an educated consumer will continue to work with us and depend on the services we provide.

Sept. 11, 2020

Lowest Mortgage Rates in History

Lowest Mortgage Rates in History: What It Means for Homeowners and Buyers

 

In July, the average 30-year fixed-rate mortgage fell below 3% for the first time in history.[1] And while many Americans have rushed to take advantage of this unprecedented opportunity, others question the hype. Are today’s rates truly a bargain?

 

While average mortgage rates have drifted between 4% and 5% in recent years, they haven’t always been so low. Freddie Mac began tracking 30-year mortgage rates in 1971. At that time, the national average was 7.31%.[2] As the rate of inflation started to rise in the mid-1970s, mortgage rates surged. It’s hard to imagine now, but the average U.S. mortgage rate reached a high of 18.63% in 1981.[3]

 

Fortunately for home buyers, inflation normalized by October 1982, which sent mortgage rates on a downward trajectory that would bring them as low as 3.31% in 2012.[3] Since 2012, 30-year fixed rates have risen modestly, with the daily average climbing as high as 4.94% in 2018.[4]

 

So what’s causing today’s rates to sink to unprecedented lows? Economic uncertainty.

 

Mortgage rates generally follow bond yields, because the majority of U.S. mortgages are packaged together and sold as bonds. As the coronavirus pandemic continues to dampen the economy and inject volatility into the stock market, a growing number of investors are shifting their money into low-risk bonds. Increased demand has driven bond yields—and mortgage rates—down.[5]

 

However, according to National Association of Realtors Chief Economist Lawrence Yun, “the number one driver of low mortgage rates is the accommodating Federal Reserve stance to keep interest rates low and to buy up mortgage-backed securities.” According to Yun, “we will see mortgage rates stay near this level for the next 18 months because of the significance of the Fed’s stance.”[6]

 

HOW DO LOW MORTGAGE RATES BENEFIT CURRENT HOMEOWNERS?

 

Low mortgage rates increase buyer demand, which is good news for sellers. But what if you don’t have any plans to sell your home? Can current homeowners benefit from falling mortgage rates? Yes, they can!

 

A growing number of homeowners are capitalizing on today’s rock-bottom rates by refinancing their existing mortgages. In fact, refinance applications have surged over the past few months—and for a good reason.[7] Reduced interest rates can save homeowners a bundle on both monthly payments and total payments over the lifetime of a mortgage.

 

The chart below illustrates the potential savings when you decrease your mortgage rate by just one percentage point. When it comes to refinancing, the bigger the spread, the greater the savings.

 

 

chart

Be sure to factor in any prepayment penalties on your current mortgage and closing costs for your new mortgage. For a refinance, expect to pay between 2% to 5% of your loan amount.[8] You can divide your closing costs by your monthly savings to find out how long it will take to recoup your investment, or use an online refinance calculator. For a more precise calculation of your potential savings, we’d be happy to connect you with a mortgage professional in our network who can help you decide if refinancing is a good option for you.

 

HOW DO LOW MORTGAGE RATES BENEFIT HOME BUYERS?

 

We’ve already shown how low rates can save you money on your mortgage payments. But they can also give a boost to your budget by increasing your purchasing power. For example, imagine you have a budget of $1,500 to put toward your monthly mortgage payment. If you take out a 30-year mortgage at 5.0%, you can afford a loan of $279,000.

 

Now let’s assume the mortgage rate falls to 4.0%. At that rate, you can afford to borrow $314,000 while still keeping the same $1,500 monthly payment. That’s a budget increase of $35,000!

 

If the rate falls even further to 3.0%, you can afford to borrow $355,000 and still pay the same $1,500 each month. That’s $76,000 over your original budget! All because the interest rate fell by two percentage points. If you’ve been priced out of the market before, today’s low rates may put you in a better position to afford your dream home.

 

On the other hand, rising mortgages rates will erode your purchasing power. Wait to buy, and you may have to settle for a smaller home in a less-desirable neighborhood. So if you’re planning to move, don’t miss out on the phenomenal discount you can get with today’s historically-low rates.

 

HOW LOW COULD MORTGAGE RATES GO?

 

No one can say with certainty how low mortgage rates will fall or when they will rise again. A lot will depend on the trajectory of the pandemic and subsequent economic impact.

 

Forecasters at Freddie Mac and the Mortgage Bankers Association predict 30-year mortgage rates will average 3.2% and 3.5% respectively in 2021.[9,10] However, economists at Fannie Mae expect them to dip even lower to an average of 2.8% next year.[11]

 

Still, many experts agree that those who wait to take advantage of these unprecedented rates could miss out on the deal of a lifetime. “With rates now at all-time historic lows, it’s hard to imagine that people may be holding out for something even better," warns Paul Buege, president and COO of Inlanta Mortgage.[12] Positive news about a vaccine or a faster-than-expected economic recovery could send rates back up to pre-pandemic levels.

 

HOW CAN I SECURE THE BEST AVAILABLE MORTGAGE RATE?

 

While the average 30-year mortgage rate is hovering around 3%, you can do a quick search online and find advertised rates that are even lower. But these ultra-low mortgages are typically reserved for only prime borrowers. So what steps can you take to secure the lowest possible rate?

 

1. Consider a 15-Year Mortgage Term

Lock in an even lower rate by opting for a 15-year mortgage. If you can afford the higher monthly payment, a shorter mortgage term can save you a bundle in interest, and you’ll pay off your home in half the time.[13]

 

2. Give Your Credit Score a Boost

The economic downturn has made lenders more cautious. These days, you’ll probably need a credit score of at least 740 to secure their lowest rates.[14] While there’s no fast fix for bad credit, you can take steps to help your score before you apply for a loan[15]:

     Dispute inaccuracies on your credit report.

     Pay your bills on time, and catch up on any missed payments.

     Hold off on applying for new credit.

     Pay off debt, and keep balances low on your credit cards.

     Don’t close unused credit cards (unless they’re charging you an annual fee).

 

3. Make a Large Down Payment
The more equity you have in a home, the less likely you are to default on your mortgage. That’s why lenders offer better rates to borrowers who make a sizable down payment. Plus, if you put down at least 20%, you can avoid paying for private mortgage insurance.

 

4. Pay for Points

Discount points are fees paid to the mortgage company in exchange for a lower interest rate. At a cost of 1% of the loan amount, they aren’t cheap. But the investment can pay off over the long-term in interest savings.

 

5. Shop Around

Rates, terms, and fees can vary widely amongst mortgage providers, so do your homework. Contact several lenders to find out which one is willing to offer you the best overall deal. But be sure to complete the process within 45 days—or else the credit inquiries by multiple mortgage companies could have a negative impact on your credit score.[16]

 

READY TO TAKE ADVANTAGE OF THE LOWEST MORTGAGE RATES IN HISTORY?

 

Mortgage rates have never been this low. Don’t miss out on your chance to lock in a great rate on a new home or refinance your existing mortgage. Either way, we can help.

 

We’d be happy to connect you with the most trusted mortgage professionals in our network. And if you’re ready to start shopping for a new home, we’d love to assist you with your search—all at no cost to you! Contact us today to schedule a free consultation.

 

The above references an opinion and is for informational purposes only. It is not intended to be financial advice. Consult a financial professional for advice regarding your individual needs.

 

Sources:

1.     CNN Business

2.     Freddie Mac

3.     Value Penguin

4.     Federal Reserve Bank of St. Louis

5.     Bankrate

6.     Washington Post

7.     Yahoo! Finance

8.     Bankrate

9.     Freddie Mac June 2020 Quarterly Forecast

10.   Mortgage Bankers Association Mortgage Market Forecast July 15, 2020

11.   Fannie Mae July 2020 Housing Forecast

12.   Washington Post

13.   Investopedia

14.   Money

15.   Experian

16.   Equifax

 

July 2, 2020

Add Value To Your Home With These 9 DIY Improvements

 

Whether you’re prepping your house to go on the market or looking for ways to maximize its long-term appreciation, these nine home improvement projects are great ways to add function, beauty, and real value to your home. The best part is, once you’ve secured the materials, most of these renovations can be completed over the course of a weekend. And they don’t require a lot of specialized skills or experience. So grab your toolbox, then get ready to boost your home’s appeal AND investment potential!

1. Spruce Up Your Landscaping Landscaping improvements can increase a home’s value by 10-12%.(1) But which outdoor features do buyers care about most? According to a survey of Realtors, a healthy lawn is at the top of their list. If your lawn is lacking, overseeding or laying new sod can be a worthwhile investment—with an expected return of 417% and 143% respectively.(1) Planting flowers is another great way to enhance your home’s curb appeal. And if you choose a perennial variety, your blooms should return year after year. For an even longer-term impact, consider planting a tree. According to the Council of Tree and Landscape Appraisers, a mature tree can add up to $10,000 to the value of your home.(2)

2. Clean The Exterior When it comes to making your house shine, a sparkling facade can be just as important as a clean interior. Real estate professionals estimate that washing the outside of a house can add as much as $15,000 to its sales price.(3) A rented pressure washer from your local home improvement store can help you remove built-up dirt and grime from your home’s exterior, walkway, and driveway. Just be sure to read the instructions carefully—and only use it on surfaces that can withstand the intensity. When in doubt, a scrub brush and bucket of sudsy water will often do the trick.

3. Add A Fresh Coat Of Paint New paint can have a big impact on both the appearance and value of a property. In fact, it’s one of the most effective ways to revitalize a home’s exterior, update its interior, and make it appear larger and brighter. The best part? Painting is relatively easy and inexpensive! To get the maximum return at resale, stick with a modern but neutral color palette that will appeal to a broad range of buyers. According to a recent survey of home design experts, cool neutrals are a safe bet when it comes to interior paint. And respondents chose white and gray as the best exterior paint colors to use when selling a home.(4) However, it’s important to consider a property’s architecture, existing fixtures, and regional design preferences, as well.

4. Install Smart Home Technology In a recent survey, 78% of real estate professionals said their buyer clients were willing to pay more for a home with smart technology features.(5) The most requested smart devices? Thermostats (77%), smoke detectors (75%), home security cameras (66%), and locks (63%).(6) The good news is, many of these gadgets are fairly easy to install. And some of them, including smart thermostats and light bulbs, will pay for themselves over time by making your home more energy efficient. In fact, many manufacturers report that smart thermostats can cut back on heating and cooling costs by 10-20%.(7) If you already own a smart speaker, like Amazon Alexa or Google Home, choose devices that will pair with your existing technology. This will enable you to create a truly integrated (and in many cases voice-activated) smart home experience.

5. Modernize Your Window Treatments Smart—or motorized—blinds are also growing in popularity, and several manufacturers make models you can order and install on your own. But they’re not the only way to modernize your window treatments. If you have old aluminum blinds, consider replacing them with plantation shutters, which are energy efficient, durable, and have strong buyer appeal.(8) Roman and roller shades are another stylish alternative, and they come in a variety of colors and fabrics, which you can personalize to meet your design and privacy preferences. Fortunately, upgrading your blinds has gotten easier and less expensive in recent years. There are a number of retailers that specialize in affordable window coverings that are simple to measure and hang yourself.

6. Replace Outdated Fixtures Drastically transform the look and feel of your home by swapping out dingy and dated fixtures for contemporary alternatives. Start by assessing your current light fixtures, faucets, cabinet hardware, door knobs, and even switch plates. Then prioritize replacing those that are particularly outdated or in highly-visible areas, such as your entryway or kitchen. Even if your home is fairly new, consider trading your builder-grade fixtures for higher-end options to give it a more upscale appearance. And forget the old rule about sticking to one metal tone throughout your property. According to designers, mixing metal finishes can add interest and character to a space.(9) For more designer insights and decor trends, contact us for a free copy of our recent report: “Top 5 Home Design Trends for a New Decade.”

7. Upgrade Your Bathroom Mirror A minor bathroom remodel offers one of the best returns on investment, with a $1.71 increase in home value for every $1 you spend.(10) We’ve already explored several improvements you can make to your bathroom: new paint, fixtures, and hardware. Now complete the look by upgrading your vanity’s mirror. Before you purchase a new mirror, examine your existing one to see how it is attached to the wall. Some vanity mirrors are glued to the wall and difficult to remove without shattering the glass or damaging the sheetrock behind it.(11) If you prefer to keep your existing mirror, you can paint the frame—or add one if it’s currently frameless. There are several online retailers that will send you the frame components cut to your specifications, which you can assemble and mount yourself. Much like a work of art, your vanity mirror serves as a focal point for your bathroom, so let your creativity shine through!

8. Shampoo Your Carpet Carpet is notorious for trapping dust, dirt, and allergens. It’s one of the reasons that most buyers prefer hard surface flooring.(12) But if you love your carpet, or you’re not ready to invest in an alternative, make an effort to keep it clean and odor-free. To properly maintain your carpet, you should vacuum it weekly. Experts also recommend a deep shampoo at least every two years.(13) Fortunately, this is a cheap and easy DIY project you can knock out in about 20 minutes per room. According to Consumer Reports, you can rent a machine and purchase cleaning fluid and supplies for around $90. With an average return on your investment of 169%, it’s well worth the effort and expense.(14)

9. Customize Your Closet Real estate professionals estimate that a closet remodel can add $2500 to a home’s selling price. And while a professional renovation can cost upwards of $6000, there are many high-quality DIY closet systems you can customize and install yourself.(15) Experts recommend taking a thorough inventory of your wardrobe and accessories before you get started. Make sure frequently-worn pieces are easy to reach, and store seasonal and seldom-used items on high shelves. Place shoe racks near the closet entrance so they are easy to access.(16)

A little planning can go a long way toward building a closet that you (and your future buyers!) will love. GET A COMPLIMENTARY ANALYSIS OF YOUR PROJECT We’ve been talking averages. But the truth is, the actual impact of a home improvement project will vary depending on your particular home and neighborhood. Before you get started, contact us to schedule a free virtual consultation. We can help you determine which upgrades will offer the greatest return on your effort and investment.

Sources:

1. HomeLight - https://www.homelight.com/blog/improve-curb-appeal-landscaping/

2. National Association of Realtors - https://www.realtor.com/advice/home-improvement/landscape-renovations-that-pay-off/

3. HouseLogic.com - https://www.houselogic.com/save-money-add-value/add-value-to-your-home/adding-curb-appeal-value-to-home/

4. Fixr - https://www.fixr.com/blog/2020/01/14/paint-color-trends-in-2020/

5. T3 Sixty - https://blog.coldwellbanker.com/wp-content/uploads/2018/01/CES2018-Smart-Homes-An-Emerging-Real-Estate-Opportunity.pdf

6. Consumer Reports - https://www.consumerreports.org/smart-home/smart-home-tech-upgrades-to-help-sell-your-house/

7. American Council for Energy Efficient Economy https://www.aceee.org/sites/default/files/publications/researchreports/a1801.pdf

8. Forbes - https://www.forbes.com/sites/trulia/2016/07/05/10-upgrades-under-1000-that-increase-home-values-2/#47b0d3162e60

9. Insider - https://www.insider.com/home-design-rules-you-should-be-breaking-2020-1

10. Zillow - https://www.zillow.com/sellers-guide/roi-for-bathroom-remodel/

11. Lowes - https://www.lowes.com/n/how-to/remove-a-bathroom-mirror

12. HomeLight - https://www.homelight.com/blog/what-flooring-increases-home-value/

13. Angie’s List - https://www.angieslist.com/articles/how-often-should-i-clean-my-carpets.htm

14. HomeLight - https://www.homelight.com/blog/projects-that-increase-home-value/

15. National Association of Realtors - https://www.nar.realtor/research-and-statistics/research-reports/remodeling-impact

16. EasyClosets - https://www.easyclosets.com/tips-ideas/2016/10/02/how-to-plan-your-walk-in-closet/

June 17, 2020

Wondering if it’s a good time to buy or sell a home?

 

 

Is Now a Good Time to Buy or Sell Real Estate?

Traditionally, spring is one of the busiest times of the year for real estate. However, the coronavirus outbreak—and subsequent stay-at-home orders—led many buyers and sellers to put their moving plans on hold. In April, new listings fell nearly 45%, and sales volume fell 15% compared to last year.1

Fortunately, as restrictions have eased, we’ve seen an uptick in market activity. And economists at Realtor.com expect a rebound in July, August, and September, as fears about the pandemic subside, and buyers return to the market with pent-up demand from a lost spring season.2

But given safety concerns and the current economic climate, is it prudent to jump back into the real estate market?

Before you decide, it’s important to consider where the housing market is headed, how it could impact your timeline and ability to buy a home, and your own individual needs and circumstances. 

WHAT’S AHEAD FOR THE HOUSING MARKET?

The economic aftermath of the coronavirus outbreak has been severe. We’ve seen record  unemployment numbers, and economists believe the country is headed toward a recession. But people still need a place to live. So what effect will these factors have on the housing market?

 

Home Values Projected to Remain Stable

 

Many Americans recall our last recession and assume we will see another drop in home values. But the 2008 real estate market crash was the cause—not the result—of that downturn. In fact, ATTOM Data Solutions analyzed real estate prices during the last five recessions and found that home prices actually went up in most cases. Only twice (in 1990 and 2008) did prices fall, and in 1990 it was by less than one percent.3

 

Many economists expect home values to remain relatively steady this time around. And so far, that’s been the case. As of mid-May, the median listing price in the U.S. was up 1.4% from the same period last year.4

 

Demand for Homes Will Exceed Available Supply

 

There’s been a shortage of affordable homes on the market for years, and the pandemic has further hindered supply. In addition to sellers pulling back, new home starts fell 22% in March.5 In fact, Fannie Mae doesn’t foresee a return to pre-pandemic construction levels before the end of 2021.6

 

This supply shortage is expected to prop up home prices, despite recessionary pressures. Fannie Mae and the National Association of Realtors predict housing prices will rise slightly this year7, while Zillow expects them to fall between 2-3%.8 Still, that would be a far cry from the double-digit declines that occurred during the last recession.9

 

Government Intervention Will Help Stabilize the Market

 

Policymakers have been quick to pass legislation aimed at preventing a surge in foreclosures like we saw in 2008. The Coronavirus Aid, Relief, and Economic Security (CARES) Act passed by Congress gives government-backed mortgage holders who were impacted by the pandemic up to a year of reduced or delayed payments.10

 

The Federal Reserve has also taken measures to help stabilize the housing market, lower borrowing costs, and inject liquidity into the mortgage industry. These steps have led to record-low mortgage rates that should help drive buyer demand and make homeownership more affordable for millions of Americans.11

 

HOW HAS THE REAL ESTATE PROCESS CHANGED?

 

As the pandemic hit, real estate and mortgage professionals across the country revised their processes to adapt to shifting safety standards and economic realities. While these new ways of conducting business may seem strange at first, keep in mind, military clients, international buyers, and others have utilized many of these methods to buy and sell homes for years.

 

New Safety Procedures

 

The safety of our clients and our team members is our top priority. That’s why we’ve developed a process for buyers and sellers that utilizes technology to minimize personal contact.

For our listings, we’re holding online open houses, offering virtual viewings, and conducting walk-through video tours. We’re also using video chat to qualify interested buyers before we book in-person showings. This enables us to promote your property to a broad audience while limiting physical foot traffic to only serious buyers.

Likewise, our buyer clients can view properties online and take virtual video tours to minimize the number of homes they step inside. Ready to visit a property in person? We can decrease surface contact by asking the seller to turn on all the lights and open doors and cabinets before your scheduled showing.

The majority of our “paperwork” is also digital. In fact, many of the legal and financial documents involved in buying and selling a home went online years ago. You can safely view and eSign contracts from your smartphone or computer.

 

Longer Timelines and Higher Mortgage Standards

 

The real estate process is taking a little longer these days. Both buyers and sellers are more cautious when it comes to viewing and showing homes. And with fewer house hunters and less available inventory, it can take more time to match a buyer with the right property.

In a recent survey, 67% of Realtors also reported delays in the closing process. The top reasons were financing and buyer job loss, but appraisals and home inspections are also taking more time due to shifting safety protocol.12

Securing a mortgage may take longer, too. With forbearance requests rising, lenders are getting increasingly conservative when it comes to issuing new loans. Many are raising their standards—requiring higher credit scores and larger down payments. Prepare for greater scrutiny, and build in some extra time to shop around.13

 

IS IT THE RIGHT TIME FOR ME TO MAKE A MOVE?

 

The reality is, there’s no “one size fits all” answer as to whether it’s a good time to buy or sell a home because everyone’s circumstances are unique. But now that you know the state of the market and what you can expect as you shop for real estate, consider the following questions:

 

Why do you want or need to move?

 

It’s important to consider why you want to move and if your needs may shift over the next year. For example, if you need a larger home for your growing family, your space constraints aren’t likely to go away. In fact, they could be amplified as you spend more time at home.

 

However, if you’re planning a move to be closer to your office, consider whether your commute could change. Some companies are rethinking their office dynamics and may encourage their employees to work remotely on a permanent basis.

 

 How urgently do you need to complete your move?

 

If you have a new baby on the way or want to be settled before schools open in the fall, we recommend that you begin aggressively searching as soon as possible. With fewer homes on the market and a lengthier closing process, it’s taking longer than usual for clients to find and purchase a home.

However, if your timeline is flexible, you may be well-positioned to score a deal. We’re seeing more highly-incentivized sellers who are willing to negotiate on terms and price. Talk to us about setting up a search so we can keep an eye out for any bargains that pop up. And get pre-qualified for a mortgage now so you’ll be ready to act quickly.

If you’re eager to sell this year, now is the time to begin prepping your home for the market. A second wave of infections is predicted for the winter, which could mean another lockdown.14 If you wait, you might miss your window of opportunity.

 

How long do you plan to stay in your new home?

 

The U.S. real estate market has enjoyed steady appreciation since 2012, which made it fairly easy for owners and investors to buy and sell properties for a profit in a short period of time. However, with home values expected to remain relatively flat over the next year, your best bet is to buy a home you can envision yourself keeping for several years. Fortunately, at today’s rock-bottom mortgage rates, you can lock in a low interest rate and start building equity right away.

 

Can you meet today’s higher standards for securing a mortgage?

 

Mortgage lenders are tightening their standards in response to the growing number of mortgage forbearance requests. Many have raised their minimum credit score and downpayment requirements for applicants. Even if you’ve been pre-qualified in the past, you should contact your lender to find out if you meet their new, more stringent standards.

 

Is your income stable?

 

If there’s a good chance you could lose your job, you may be better off waiting to buy a home. The exception would be if you’re planning to downsize. Moving to a less expensive home could allow you to tap into your home equity or cut down on your monthly expenses.

 

WHEN YOU’RE READY TO MOVE—WE’RE READY TO HELP

 

While uncertain market conditions may give pause to some buyers and sellers, they can actually present an opportunity for those who are willing, able, and motivated to make a move.

 

Your average spring season would be flooded with real estate activity. But right now, only motivated players are out in the market. That means that if you’re looking to buy, you’re in a better position to negotiate a great price. And today’s record-low mortgage rates could give a big boost to your purchasing power. In fact, if you’ve been priced out of the market before, this may be the perfect time to look.

 

If you’re hoping to sell this year, you’ll have fewer listings to compete against in your neighborhood and price range. But you’ll want to act quickly. Economists expect a surge of eager buyers to enter the market in July—so you should start prepping your home now. And keep in mind, a second wave of coronavirus cases could be coming in this winter. Ask yourself how you will feel if you have to face another lockdown in your current home.

 

Let’s schedule a free virtual consultation to discuss your individual needs and circumstances. We can help you assess your options and create a plan that makes you feel both comfortable and confident during these unprecedented times.

 

 

The above references an opinion and is for informational purposes only. It is not intended to be financial advice. Consult a financial professional for advice regarding your individual needs.

 

 

Sources:

1.     Forbes - https://www.forbes.com/sites/ellenparis/2020/05/08/latest-housing-market-update-from-realtorcom/#20bf7829113e

2.     HousingWire -
https://www.housingwire.com/articles/realtor-com-housing-market-will-bounce-back-this-year-but-the-rebound-will-be-short-lived/

3.     Curbed -
https://www.curbed.com/2019/1/10/18139601/recession-impact-housing-market-interest-rates

4.     Realtor.com -
https://www.realtor.com/research/weekly-housing-trends-view-data-week-may-9-2020/

5.     Money.com -
https://money.com/coronavirus-real-estate-home-prices/

6.     Fannie Mae -
https://www.fanniemae.com/resources/file/research/emma/pdf/Housing_Forecast_051320.pdf

7.     HousingWire -
https://www.housingwire.com/articles/pending-home-sales-tumble-on-covid-19-shock/

8.     HousingWire -
https://www.housingwire.com/articles/zillow-predicts-small-home-price-drop-through-rest-of-2020/

9.     Federal Reserve Bank of St. Louis -
https://fred.stlouisfed.org/series/CSUSHPINSA

10.   Consumer Financial Protection Bureau -
https://www.consumerfinance.gov/coronavirus/cares-act-mortgage-forbearance-what-you-need-know/

11.   Bankrate -
https://www.bankrate.com/mortgages/federal-reserve-and-mortgage-rates

12.   National Association of Realtors -
https://www.nar.realtor/sites/default/files/documents/2020-05-11-nar-flash-survey-economic-pulse-05-14-2020.pdf 

13.   Forbes -
https://www.forbes.com/sites/alyyale/2020/04/17/buying-a-home-during-the-pandemic-dont-expect-your-everyday-home-purchase/#fadad3d33b0c

14.   Washington Post -
https://www.washingtonpost.com/health/2020/04/21/coronavirus-secondwave-cdcdirector/

 

June 17, 2020

San Diego Market Report for June 2020

 

SDLUXHomes.com Blog

San Diego Housing Report for June 17, 2020

The San Diego Housing Market continues to march forward despite negative forces that have plagued the Nation since January 2020.

 

The following data is provided to you as a courtesy to assist you in analyzing your power position when it comes to making a  purchase offer on a property and the interpretation of that position is entirely yours to make, however I will opine what these numbers will mean to you as a home shopping consumer at the conclusion. You may disagree with my opinion, but the following numbers speak volumes on the trend in the San Diego Home Sales Market.

 

Since May 18, 2020 until today, June 17, 2020 the following sales activity has been logged.

For the Attached home market, i.e., townhomes, condominiums, twin-homes, and rowhomes there are currently 1336 units Active.  Pending units awaiting contract close total 1045. And Sold units for the noted period total 547 units. Prices for the homes SOLD during this period range from a low of $38,000 to a high of $3,750,000. The median sales price is $410,000. The average DOM(Days on Market) is 31.

Based on these numbers, there exists 2.44 months inventory if the market entry of new listings remained static.

Here is a trend graph, courtesy of InfoSparks


The trendline if drawn and if the activity continues  does indicate a rising inventory of Attached units, but this does not definitively indicate movement from a Sellers’ Market to a Buyers’ Market.

For Detached, single family units; there are currently 2623 units Active. Pending contracts total 3012 and Sold units are 1564. The prices for sold homes range from a low at $85,000 to $10,500,000. Important to note is the median sales price for Detached homes is $660,000. The Average DOM is 50.

The absorption rate based on the above data is 1.68 months!!!

The trend graph, courtesy of InfoSparks


One can see clearly that the absorption rate is increasing ever so slightly but is far below the point of pushing the market to a Buyers’ Market.

 

So, what does this all mean for you, our clients?

 

If a seller, you should be aware that if your home is correctly priced for the neighborhood and  in pristine, updated condition, proper marketing with professional photos  can result in a quick contract and often at or above the listing price with multiple offers to choose from, thus putting you in a power position. This means, you may not need to consider accepting any contingencies proposed in purchase offers.

If a buyer, you must be prepared with a valid Pre-Approval Letter from a recognized lender, and not be unwilling to consider a request from Sellers’ agents for your Highest and Best Offer(F&B) after you have submitted your initial offer. I have experienced first-hand these scenarios when a F&B Offer is requested, and the competing buyers elected to walk away not wanting to involve themselves in a ‘Blind Auction’.  We try to prepare our buyers of this possibility with all offers and coach them through the process to make their dreams of owning that special home they have selected a reality. 

Purchasing a home is not for the meek, or weak-hearted. You need agents who work for you at every step of the process.  We are those agents. Our thirty-plus years of full-time Real Estate Sales & Marketing put us a step ahead of our competitors and we view each client and property as a new challenge to our skills as we do not assume anything and we are no better than our next transaction

Thanks for stopping by!

Posted in Market Updates
July 18, 2019

OPEN HOUSE!!! 10617 Carla CT, Escondido, CA 92026

OPEN House this Sunday, July 21 from 1-4pm

From the moment you walk through the front door, you will feel it:  HOME!

10617 Carla CT.
Escondido, CA 92026
MLS#190018653

 

Located in the exclusive Hidden Meadows Residential Community, all 3026SF of this home will entrance you with the perfect room flow, fine designer touches and open views to the inviting backyard where your family will enjoy BBQ's and events with friends for many years to come.

Offering 4 bedrooms and 3 baths, this home feels much larger than it is in reality. But let me make your reality come true~Come and see me this Sunday and see for yourself.

A super lender will be on-site to discuss the best rates and programs to enable you to move into this home where you will find a fun golf course, tennis, miles of trails for walking, running, bicycling, or horseback riding.

 

 

It's ALL here for YOU!

 

If you cannot make it to the OPEN HOUSE EVENT and would like a private showing; Call Norm Padula  858.444.7060

 

July 31, 2017

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We can definitely fill you in on details that are not listed on the report and help you determine the best home for you. If you are wondering if now is the time to sell, please try out our INSTANT home value tool. You’ll get an estimate on the value of your property in today’s market. Either way, we hope to hear from you soon as you get to know our neighborhoods and local real estate market better.

Posted in Market Updates