Posts

Showing posts from June, 2021

Hope Is on the Horizon for Today’s Housing Shortage

Image
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 seeing some improvement, w

The Right Expert Will Guide You Through This Unprecedented Market

Image
David Deem 714-997-3486 Dave@DeemTeam.com In a normal market, it’s good to have an experienced guide coaching you through the process of buying or selling a home. That person can advise you on important things like pricing your home correctly or the first steps to take when you’re ready to buy. However, the market we’re in today is far from normal. As a result, an expert isn’t just good to have by your side – an expert is essential. Today’s housing market is full of extremes. Mortgage rates hovering near record-lows are driving high buyer demand. On the other hand, an absence of sellers is creating record-low housing inventory. This imbalance in supply and demand is leading to a skyrocketing rate of bidding wars and more houses selling over their asking price. This is driving home price appreciation and gains in home equity. These market conditions aren’t just extreme – they can be overwhelming. Having a trusted expert to coach you through the process of buying and selling a home gives

Why This Is Not Like 2008 Again

Image
  David Deem 714-997-3486 Dave@DeemTeam.com During the Great Recession, just over a decade ago, the financial systems the world depended on started to collapse. It created a panic that drove some large companies out of business (ex. Lehman Brothers) and many more into  bankruptcy . The financial crisis that accompanied the current pandemic caused hardship to certain industries and hurt many small businesses. However, it hasn’t rattled the world economy. It seems that a year later, things are slowly getting back to normal for many companies. Why is there a drastic difference between 2008 and now? In a  post  from  RealtyTrac , they explain: “We changed the rules. We told banks they needed more reserves and that they could no longer underwrite toxic mortgages. It turns out that regulation — properly done — can help us navigate financial minefields.” Here are the results of that regulation, captured in a graph depicting the number of failed banks since 2007. What was different this time?

Home Price Appreciation Is as Simple as Supply and Demand

Image
David Deem 714-997-3486 Dave@DeemTeam.com Home price appreciation continues to  accelerate . Today, prices are driven by the simple concept of supply and demand. Pricing of any item is determined by how many items are available compared to how many people want to buy that item. As a result, the strong year-over-year home price appreciation is simple to explain. The demand for housing is up while the supply of homes for sale hovers at historic lows. Let’s use three maps to show how this theory continues to affect the residential real estate market. Map #1  – State-by-state price appreciation reported by the  Federal Housing Finance Agency  ( FHFA ) for the first quarter of 2021 compared to the first quarter of 2020: As the map shows, certain states (colored in red) have appreciated well above the national average of 12.6%. Map #2  – The change in state-by-state inventory levels year-over-year reported by  realtor.com : Comparing the two maps shows a correlation between change in listing

Smell Something Funky? Check These Common Problem Areas in Your Home

Image
  David Deem 714-997-3486 Dave@DeemTeam.com Do you ever wake up to a foul odor in your home? From old food in the fridge to wet towels laying on the floor, there can be many reasons your home doesn’t have that fresh, clean scent. Unfortunately, lighting your favorite candle or clouding a space with room spray may not be the trick, rather just a mask. Be sure to identify the source of the smell by checking these common problem areas.  Trash Can Though this seems an obvious place to start, the stench from garbage doesn’t always just come from it’s contents. As you take out the trash regularly, spills and crumbs may build up, causing the odor to linger inside of the bin. Before you place a new garbage bag in the bin, be sure to wipe it out with a wet wipe or paper towel and a disinfectant spray. For a deeper clean, spray the bin with diluted bleach, let sit for a few hours, and wipe it out. Finish with soap and water, and enjoy the fresh scent in your kitchen.  Dishwasher If you still hav

The Pros and Cons of Buying a Vacation Home

Image
  David Deem 714-997-3486 Dave@DeemTeam.com With the recent rise in remote work, vacation markets all across the country are experiencing a surge in demand that’s driven by buyers who are taking the leap to become second homeowners. If you’re considering purchasing a vacation property, here are a few of the pros and cons to keep in mind. Pros: It’s a vacation home! Let’s get this out of the way first and foremost: there’s nothing like having your own vacation home to escape to on a moment’s notice without having to worry about bookings. It’s all about personal enjoyment and creating a place where the whole family can have fun together. Income Potential When you’re not using it, there’s always the possibility of renting out your second home to offset the costs. Furthermore, depending on how often you rent it out, you may be able to deduct all of the operating expenses. Investment Opportunity With the unprecedented shift in our work-life balance, real estate in vacation markets increasin

Tips for Island-Inspired Interiors

Image
  David Deem 714-997-3486 Dave@DeemTeam.com No matter where you live, you can bring the laid-back look into your home. Whether it’s a summer getaway near the beach or a year-round residence in the suburbs, island-inspired interiors are sure to deliver peace of mind. If this sounds appealing to you, here are a few tips to introduce the look to your home.  Light Color Palette Color is everything when it comes to creating a coastal cool aesthetic and lighter tones are most commonly used. Crisp white walls can be accented with soft blues and greens for a classic look that feels fun and elegant at the same time. If you want to go with a bold color scheme, try adding a burst of energy with coral or canary yellow, and your interiors will be sure to capture the island ambience. Natural Textures Whether you’re taking inspiration from the Bahamas or Bali, an abundance of natural textures are found in practically any island setting. You can never go wrong with stone floors, like Caribbean shell s

Dreaming of a Bigger Home? Why Not Buy It This Year?

Image
David Deem 714-997-3486 Dave@DeemTeam.com Are you clamoring for extra rooms or a more functional floorplan in your house? Maybe it’s time to make a move. If you’ll be able to work remotely for the long-term or your overall needs have simply changed, it’s a great time to sell your house and move up. Why? With mortgage rates in their favor and higher-priced home sales powering more moves across the country, sellers in today’s market are finding the space they need (and have always dreamed of) by purchasing a home in the upper end of the housing market. With so few homes available for sale and high demand from today’s homebuyers, sellers are profiting in major ways this season. Bidding wars are gaining traction, driving up the sale price of more and more homes throughout the country. This means sellers are able to leverage extra cash from higher-priced sales while also taking advantage of today’s low mortgage rates when they purchase their next home. It’s the perfect scenario to move up i

What’s Motivating People To Move Right Now?

Image
David Deem 714-997-3486 Dave@DeemTeam.com This year, Americans are moving for a variety of reasons. The health crisis has truly reshaped our lifestyles and our needs. Spending so much more time in our current homes has driven many people to reconsider what homeownership means and what they find most valuable in their living spaces. According to the  2020 Annual National Movers Study : “For customers who cited COVID-19 as an influence on their move in 2020, the top reasons associated with COVID-19 were concerns for personal and family health and wellbeing (60%); desires to be closer to family (59%); 57% moved due to changes in employment status or work arrangement (including the ability to work remotely); and 53% desired a lifestyle change or improvement of quality of life.” With a new perspective on homeownership, here are some of the reasons people are reconsidering where they live and making moves right now. 1. Working from Home Remote work became the new norm, and for some, it’s per

Orange County Housing Summary: June 2, 2021

Image
David Deem 714-997-3486 Dave@DeemTeam.com The active listing inventory added 8 homes in the past two-weeks, nearly unchanged, and now totals 2,255. From May 1 st to May 15 th , there were 20% fewer homes that came on the market compared to 5-year average between 2015 to 2019 (2020 was skewed do to COVID-19), 424 less. Last ye ar, there were 5,044 homes on the market, 2,789 additional homes, or 123% more. Demand, the number of pending sales over the prior month, decreased by 44 pending sales in the past two-weeks, down 1%, and now totals 3,083. Rates remain below 3%, maintaining demand’s current brisk pace.  Last year, there were 2,035 pending sales, 34% fewer than today. Keep in mind, housing was thawing out rapidly in May and June as rates dropped to historically low levels. The Expected Market Time, the number of days to sell all Orange County listings at the current buying pace, remained unchanged at 22 days in the past couple of weeks, an extremely Hot Seller’s Market (less than