David Deem 714-997-3486 Dave@DeemTeam.com By Liz Dominguez Once the territory of millennials, the first-time buyer crowd is slowly filtering out the aging population, being replaced by Gen-Zers. And according to a new report from  realtor.com®, 40% of surveyed Gen Z-ers say they plan to purchase a home in the next five years.  "Gen Z values homeownership. However, the oldest members of this generation are just entering the professional stage of life and not yet in a financial position to make a big play as first-time buyers—especially in  the current housing market, which is challenging even older generations who have had many more years to save for a down payment," said George Ratiu, senior economist, realtor.com®. "With nearly three-quarters of those surveyed preferring to buy versus renting long-term, the housing industry should be prepared for millions of Gen Z buyers to bring a new wave of demand along a similar stage-of-life timeline as the millennial generat...

  David Deem 714-997-3486 Dave@DeemTeam.com The active listing inventory increased by 174 homes in the past two-weeks, up 8%, and now totals 2,388, its largest increase of the year and its highest level since February. From June 1st through June 15th, there were 19% fewer homes that came on the market compared to 5-year average between 2015 to 2019 (2020 was skewed do to COVID-19), 405 less. Last year, there were 4,710 homes on the market, 2,322 additional homes, or 97% more. Demand, the number of pending sales over the prior month, decreased by 151 pending sales in the past two-weeks, down 5%, and now totals 2,906, its largest decrease of the year and its lowest level since February. Mortgage rates remain at historically low levels, maintaining demand’s current brisk pace.   Last year, there were 2,992 pending sales, 3% more than today. It was the first time the prior year was higher than the current year dating back to June 2020. With an increase in the supply and a drop...

David Deem 714-997-3486 Dave@DeemTeam.com Selling a house is a time-consuming process – especially if you decide to do it on your own, known as a  For Sale By Owner (FSBO) . From conducting market research to reviewing legal documents, handling negotiations, and more, it’s an involved and highly detailed process that requires a lot of expertise to navigate effectively. That’s one of the reasons why the percentage of people selling their own house has declined from 19% to 8% ( S ee graph below ): To help you understand just how much time and effort it takes to sell on your own, here’s a look at a few of the things you need to think about before putting that “For Sale” sign up in your yard. 1. Making a Good First Impression While it may sound simple, there are a lot of proven best practices to consider when prepping a house for sale. Do you need to take down your personal art? What’s the right amount of landscaping to boost your curb appeal? What wall colors are most appeal...

David Deem 714-997-3486 Dave@DeemTeam.com The pandemic created a tremendous interest in vacation homes across the country. Throughout the last year, many people purchased second homes as a safe getaway from the challenges of the health crisis. With many professionals working from home and many students taking classes remotely, it made sense to see a migration away from cities and into counties with more vacation destinations. The 2021 Vacation Home Counties Report from the  National Association of Realtors  (NAR) shows that this increase in vacation home sales continues in 2021. The report examines sales in counties where “ vacant seasonal, occasional, or recreational use housing account for at least 20% of the housing stock ” and compares that data to the overall residential market. Their findings show: Vacation home sales  rose by 16.4%  to 310,600 in 2020, outpacing the 5.6% growth in total existing-home sales. Vacation home sales are...

  David Deem 714-997-3486 Dave@DeemTeam.com Building financial wealth and stability remains one of the top reasons Americans choose to own a home, and as a homeowner, your wealth often grows without you even realizing it. In a recent paper published by the  Urban Institute,   Home Ownership is Affordable Housing , author Mike Loftin illustrates how homeowners increase their equity and their wealth simply by making monthly mortgage payments: “The principal portion that reduces the loan balance builds the homeowner’s equity. In doing so, the principal payments behave like an automatic savings account. The principal payment is not money going out; it is money staying in.” But home equity – the difference between the value of your home and what you currently owe – isn’t just built through your monthly principal payments. Home price appreciation plays a vital role in growing your equity and, ultimately, your wealth. As  Freddie Mac   explains : “Homeownersh...

  David Deem 714-997-3486 Dave@DeemTeam.com You may have been told that it’s important to get pre-approved at the beginning of the homebuying process, but what does that really mean, and why is it so important? Especially in today’s market, with rising home prices and high buyer competition, it’s crucial to have a clear understanding of your budget so you stand out to sellers as a serious homebuyer. Being intentional and competitive are musts when buying a home right now. Pre-approval from a lender is the only way to know your true price range and how much money you can borrow for your loan. Just as important, being able to present a pre-approval letter shows sellers you’re a qualified buyer, something that can really help you land your dream home in an ultra-competitive market. With limited housing inventory, there are many more buyers active in the market than there are sellers, and that’s creating some serious competition. According to the...

  David Deem 714-997-3486 Dave@DeemTeam.com When it comes to buying a house, you’re looking for the perfect place to call home. The problem is, in today’s market there just aren’t that many homes available to purchase. With  inventory  hovering near record lows and sky-high buyer  demand , a multi-offer scenario is the new normal. Here are five things to keep in mind when you’re ready to make an offer. 1. Know Your Numbers Having a complete understanding of your budget and how much house you can  afford  is essential. That’s why you should connect with a lender to get  pre-approved  for a loan early in the homebuying process. Taking this step shows sellers you’re a serious, qualified buyer and can give you a competitive edge in a bidding war. 2. Brace for a Fast Pace Today’s market is dynamic and fast-paced. According to the  Realtors Confidence Index  from the  National Association of Realtors  (NAR), the average home is on th...

David Deem 714-997-3486 Dave@DeemTeam.com The real estate market is soaring today. Residential home values are rising, and that’s a big win for homeowners. In 2020, there was a double-digit increase in home values – a trend that’s expected to head toward similar levels this year. However, skyrocketing prices are causing some to start questioning affordability in the current housing market. Many are quick to emphasize the fact that homes today are less affordable than they were last year.  Black Knight , a leading provider of data and analytics across the homeownership life cycle, just reported on the issue. The findings show the historical averages of the national  payment to income ratio , which they define as “ the share of the median income needed to make the monthly payments on the median-priced home. ” Their study reveals: The average over the last 25 years was 23.6% The average over the last 5 years was 20.1% The average today stands at 20.5% Right now, housing...

David Deem 714-997-3486 Dave@DeemTeam.com We’re in the ultimate sellers’ market right now. If you’re a homeowner thinking about selling, you have a huge advantage in today’s housing market. High buyer demand paired with very few houses for sale makes this the optimal time to sell for those who are ready to do so. Whatever the move you want to make looks like, here’s an overview of what’s creating the prime opportunity to sell this summer. High Buyer Demand Demand is strong, and buyers are actively searching for homes to purchase. In the Realtors Confidence Index Survey published monthly by the  National Association of Realtors  (NAR), buyer traffic is considered “very strong” in almost every state. Homebuyers aren’t just great in number right now – they’re also determined to find their dream home. NAR shows the average home for sale today receives five offers from hopeful buyers. These increasingly frequent bidding wars can drive up the price of your house, which is ...

David Deem 714-997-3486 Dave@DeemTeam.com The major challenge in today’s housing market is that there are more buyers looking to purchase than there are homes available to buy. Simply put, supply can’t keep up with demand. A normal market has a 6-month supply of homes for sale. Anything over that indicates it’s a buyers’ market, but an inventory level below that threshold means we’re in a sellers’ market. Today’s inventory level sits far below the norm. According to the Existing Home Sales Report from the  National Association of Realtors  (NAR): “Total housing inventory at the end of April amounted to 1.16 million units, up 10.5% from March's inventory and down 20.5% from one year ago (1.46 million).  Unsold inventory sits at a 2.4-month supply at the current sales pace , slightly up from March's 2.1-month supply and down from the 4.0-month supply recorded in April 2020.  These numbers continue to represent near-record lows .” Basically, while we are ...