Posts

Showing posts from November, 2020

Don’t Let Buyer Competition Keep You from Purchasing a Home

Image
David Deem 714-997-3486 Dave@DeemTeam.com Don’t Let Buyer Competition Keep You from Purchasing a Home This year’s record-low mortgage rates sparked high demand among homebuyers. Current homeowners, however, haven’t put their houses on the market so quickly. This makes finding a home to buy today challenging for many potential buyers. With an obstacle like this, those searching for their dream homes may be pressing pause on their searches as we approach the end of the year, but that could be a big mistake for many hopeful house hunters. Here’s why.   According to the most recent  Housing Trends Report  from the  National Association of Home Builders  (NAHB): “The length of time spent searching for a home continues to grow.” The report indicates that  62% of buyers now spend 3 months or more looking for a home,  an increase from 58% one year ago .  A primary cause for the delay is the heavy competition today’s buyers face when making an offer on a home. Based on recent  data  from the  N

Homes.com Survey: 15 Percent of U.S. Consumers Have Experienced Housing Discrimination

Image
  David Deem 714-997-3486 Dave@DeemTeam.com More than 15 percent of U.S. consumers have personally experienced housing discrimination as they attempted to rent or purchase a property, according to a new  Homes.com survey  of 2,000 adults. The poll comes at a time when a federal rule establishing stricter requirements to bring  discrimination  claims under the Fair Housing Act is being challenged by civil rights groups.   Survey respondents reported encountering bias in one or more scenarios including rental applications (7 percent), home financing (4 percent), home searching with an agent (3 percent), home appraisals (3 percent) and/or other residential purchase services (3%).   Black respondents were the most likely to face housing bias (56 percent), followed by biracial/multiracial (45 percent), Latinos/ Hispanics (45 percent), American Indians/Alaskan Natives (31 percent) and non-Hispanic whites (12 percent). The problem also spanned every income level from less than $100,000 to mor

Will Mortgage Rates Remain Low Next Year?

Image
David Deem 714-997-3486 Dave@DeemTeam.com In 2020, buyers got a big boost in the housing market as mortgage rates dropped throughout the year. According to  Freddie Mac , rates hit all-time lows  12 times  this year, dipping  below 3%  for the first time ever while making buying a home more and more attractive as the year progressed  (See graph below): When you continually hear how rates are hitting record lows, you may be wondering:  Are they going to keep falling? Should I wait until they get even lower? The Challenge with Waiting The challenge with waiting is that you can easily miss this optimal window of time and then end up paying more in the long run. Last week, mortgage rates ticked up slightly. Sam Khater,  Chief Economist  at  Freddie Mac,   explains : “ Mortgage rates jumped this week  as a result of positive news about a COVID-19 vaccine. Despite this rise, mortgage rates remain about a percentage point below a year ago.” While rates are still lower today than they were one

Chances of Another Foreclosure Crisis? “About Zero Percent.”

Image
  David Deem 714-997-3486 Dave@DeemTeam.com There seems to be some concern that the 2020 economic downturn will lead to another foreclosure crisis like the one we experienced after the housing crash a little over a decade ago. However, there’s one major difference this time:  a robust forbearance program . During the housing crash of 2006-2008, many felt homeowners should be forced to pay their mortgages despite the economic hardships they were experiencing. There was no empathy for the challenges those households were facing. In a 2009  Wall Street Journal  article titled  Is Walking Away From Your Mortgage Immoral? , John Courson,  Chief Executive  of the  Mortgage Bankers Association , was asked to comment on those not paying their mortgage. He famously said: “What about the message they will send to their family and their kids?” Courson suggested that people unable to pay their mortgage were bad parents. What resulted from that lack of empathy? Foreclosures mounted. This time is di

Why Working from Home May Spark Your Next Move

Image
  David Deem 714-997-3486 Dave@DeemTeam.com If you’ve been  working from home  this year, chances are you’ve been at it a little longer than you initially expected. Businesses all over the country have figured out how to operate remotely to keep their employees healthy, safe, and productive. For many, it may be carrying into next year, and possibly beyond. While the pandemic continues, Americans are re-evaluating their homes, floorplans, locations, needs, and more. Some need more space, while others need less. Whether you’re renting or own your home, if remote work is part of your future, you may be thinking about  moving , especially while today’s mortgage rates are so low. A recent study from  Upwork   notes : “Anywhere from  14 to 23 million Americans  are planning to move as a result of remote work.” To put this into perspective, last year,  6 million homes were sold in the U.S.  This means roughly  2 – 4X as many people  are considering moving now, and there’s a direct connection

Orange County Housing Summary: November 17, 2020

Image
David Deem 714-997-3486 Dave@DeemTeam.com The active listing inventory decreased by 101 homes in the past two-weeks, down 3%, and now totals 3,843, its lowest level since January 2018. COVID-19 is not suppressing the inventory. In October, there were 16% more homes that came on the market compared to last year. Last ye ar, there were 5,531 homes on the market, 1,691 additional homes, or 44% more. Demand, the number of pending sales over the prior month, decreased by 220 pending sales in the past two-weeks, down 7%, and now totals 2,799. COVID-19 has no effect on demand. Record low rates are fueling today’s exceptional demand. Last year, there were 2,328 pending sales, 17% fewer than today. The Expected Market Time for all of Orange County increased from 39 days to 41, a Hot Seller’s Market (less than 60 days). It was at 71 days last year, slower than today.  For homes priced below $750,000, the market is a hot Seller’s Market (less than 60 days) with an expected market time of 30 days.

What to Look for in a Retirement Community

Image
David Deem 714-997-3486 Dave@DeemTeam.com For the throngs of baby boomers planning for their futures, retirement looks a lot different than it used to. Today’s prospective retirees aren’t necessarily looking to slow down...they’re looking for living environments that will support their active lifestyles long into the future. In fact, a 2015 report from the Population Reference Bureau found that adults who participate in regular physical activity were less likely to experience a major disability compared to those who don’t. If you or a loved one is ready to explore the next stage of life, the experts at myMHcommunity.com offer the following tips to help soon-to-be retirees find communities designed for an active and social lifestyle: - Inquire about access to less conventional outdoor activities. Not every retiree these days is a golfer, so find out if the community you’re considering offers less common activities, such as pickleball, Zumba or yoga classes. - For those who are active in

Winter Will Bring a Flurry of Activity to the Housing Market

Image
David Deem 714-997-3486 Dave@DeemTeam.com In the second half of this year, the housing market  surged  with activity. Today, real estate experts are looking ahead to the winter season and the forecast is anything but chilly. As Lawrence Yun,  Chief Economist  for the  National Association of Realtors  (NAR),  notes : “It will be one of the best winter sales years ever.” The typical winter slowdown in the housing market is simply not on the radar. Here’s why. While today’s historically low mortgage rates are expected to remain low, they won’t be  this low  for much longer. This could be the last chance for homebuyers to secure such low rates, and they’re ready to take action. In a recent  article ,  Bankrate  explained: “If you’re looking to buy a home… expect mortgage rates to remain low into 2021 . However, the possibility of rates falling to 2.5 percent or lower has faded as the U.S. economy has rebounded.” As long as we continue to see low interest rates, we’ll see hopeful buyers on

Homeownership Is a Key to Building Wealth

Image
David Deem 714-997-3486 Dave@DeemTeam.com For years, real estate has been considered the best  investment  you can make. A major reason for this is due to the net worth a household gains through homeownership. In fact, according to the  2019 Survey of Consumer Finance Data  from the  Federal Reserve,  for the average homeowner: “…a primary home accounts for 90% of the total wealth of a family in the U.S.” How do homeowners gain wealth? Most large purchases, like cars and appliances, depreciate in value as they age, so it’s understandable to question how owning a home can  increase  wealth over time. In a simple equation, the  National Association of Realtors  (NAR)  explains  how the combination of paying your mortgage and home price appreciation grow overall wealth: Principal Payments + Price Appreciation Gains = Housing Wealth Gain As home values increase and you make payments toward your home loan, you’ll gain wealth through  equity . The same article from NAR also addresses how wea

Is it Safe to Sell My House Right Now?

Image
David Deem 714-997-3486 Dave@DeemTeam.com In today’s real estate market, the buzz is all about how it’s a great time to sell your house. Buyer  demand  is high, and there simply aren’t enough homes available to buy to meet that growing need. This means  now is the time to make a  move  so you can close the deal on your ideal terms. Even in today’s strong sellers’ market, there are homeowners who are choosing not to sell due to ongoing concerns around the health crisis, financial uncertainty, and life in general. According to  Zillow , here are the top three  reasons  homeowners who are thinking of selling sometime in the next three years are  not  putting their houses on the market right now: 34% - Life is too uncertain right now 31% - Financial uncertainty 25% - COVID-19 health concerns If you identify with any of these, you’re not alone. Whether it’s the future of your employment situation or simply being uncomfortable having guests in your home for showings, life feels a lot differe

4 Reasons Why the Election Won’t Dampen the Housing Market

Image
David Deem 714-997-3486 Dave@DeemTeam.com Americans will decide our President for the next four years. That decision will have a major impact on many aspects of life in this country, but the residential real estate market will not be one of them. Analysts will try to measure the impact feasible changes in regulations might have on housing, the effect of a possible first-time buyer program, and any number of other situations based on who wins. The housing market, however, will remain strong for four reasons: 1. Demand Is Strong   among Millennials The nation's largest  generation  began entering the housing market last year as they reached the age to marry and have children - two key drivers of homeownership. As the  Wall Street Journal  recently  reported : “Millennials, long viewed as perennial home renters who were reluctant or unable to buy, are now emerging as a driving force in the U.S. housing market’s recent recovery.” 2. Mortgage Rates Are Historically Low All-time low  int