David Deem 714-997-3486 Dave@DeemTeam.com One of the hottest topics of conversation in today’s real estate market is the shortage of available homes.  Simply put, there are many more potential buyers than there are homes for sale.  As a seller, you’ve likely heard that low supply is good news for you. It means your house will get more attention, and likely, more offers. But as life begins to return to normal, you may be wondering if that’s something that will change. While it may be tempting to blame the pandemic for the current inventory shortage, the pandemic can’t take all the credit. While it did make some sellers hold off on listing their houses over the past year, the truth is the low supply of homes was years in the making. Let’s take a look at the root cause and what the future holds to uncover why now is still a great time to sell. Where Did the Shortage Come From? It’s not just today’s high buyer demand. Our low supply goes hand-in-hand with the number of new ho...

David Deem 714-997-3486 Dave@DeemTeam.com As we move into the second half of the year, one thing is clear: the current real estate market is one for the record books. The exact mix of conditions we have today creates opportunities for both buyers and sellers. Here’s a look at four key components that are shaping this unprecedented market. A Shortage of Homes for Sale Earlier this year, the number of homes available for sale fell to an all-time low. In recent months, however, inventory levels are starting to trend up. The latest  Monthly Housing Market Trends Report  from  realtor.com  says: “In June,  newly listed homes grew by 5.5% on a year-over-year basis , and by 10.9% on a month-over-month basis. Typically, fewer newly listed homes appear on the market in the month of June compared to May.  This year, growth in new listings is continuing later into the summer season, a welcome sign for a tight housing market .” This is good news for buye...

David Deem 714-997-3486 Dave@DeemTeam.com If you’re a prospective buyer or seller, it’s important to understand the current real estate market conditions and how they affect you. The  Counselors of Real Estate  (CRE)  just released its  Top Ten Issues Affecting Real Estate  report. Here are three hot topics from the list and how they impact today’s housing market. Technology Acceleration and Innovation The past year ushered in many changes to the real estate industry, especially when it comes to technology. The CRE report elaborates on this: “Lockdown-driven changes in our work, in the economy, in social structures, and in our personal behavior have pushed our reluctance aside.  The acceleration and adoption of technology during the pandemic has impacted everything, and real estate is no exception. ” For real estate, innovations like digital documentation, virtual tours, and video chat enable agents to connect with clients no matter their location...

  David Deem 714-997-3486 Dave@DeemTeam.com Over the past year, many homeowners realized what they need in a home is changing, especially with the rise in remote work. If you’re longing for a dedicated home office or a change in scenery, now may be the time to find the home that addresses your evolving needs. Working from Home Isn’t a Passing Fad Before the pandemic, only 21% of individuals worked from home. However, if you’ve recently discovered remote work is your new normal, you’re not alone. A  survey  of hiring managers conducted by  Statista  and  Upwork  projects  37.5% of U.S. workers will work remotely in some capacity over the next 5 years  ( see chart below ): Working from Home Gives You More Flexibility and More Options If you fall in that category, working from home may provide you with opportunities you didn’t realize you had. The ongoing rise in remote work means a portion of the workforce no longer needs to be t...

  David Deem 714-997-3486 Dave@DeemTeam.com ·        The active listing inventory increased by 9 homes in the past two-weeks, nearly unchanged, and now totals 2,537, its highest level since January. In June, there were 12% fewer homes that came on the market compared to 5-year average between 2015 to 2019 (2020 was skewed do to COVID-19), 476 less. Last ye ar, there were 4,590 homes on the market, 2,053 additional homes, or 81% more. ·        Demand, the number of pending sales over the prior month, increased by 51 pending sales in the past two-weeks, up 2%, and now totals 2,812. Last year, there were 3,200 pending sales, 14% more than today , due to a delayed Spring Market. ·        With a slight increase in the supply and an increase in demand, the Expected Market Time, the number of days to sell all Orange County listings at the current buying pace, remained unchanged at 27 days in th...

  David Deem 714-997-3486 Dave@DeemTeam.com The National Association of Home Builders (NAHB) recently released its   Remodeling Market Index   (RMI) for the second quarter. The reading of 87 is 14 points higher from the second quarter of 2020—an indicator that residential remodeling confidence, for all project sizes, has increased.   The details:   - Current Conditions Index: Averaged 91—a 14-point increase from the second quart of 2020. All components also increased compared to Q2 of last year: large remodeling projects ($50,000 or more) increased 20 points to 90, moderately-sized remodeling projects (at least $20,000 but less than $50,000) increased 13 points to 91 and small remodeling projects (under $20,000) increased nine points to 92. - Future Indicator Index: Averaged 83—up 13 points YoY. Both components increased as well: the current rate at which leads and inquiries are coming in rose nine points to 81 and the backlog of remodeling jobs jumped 19 points...

  David Deem 714-997-3486 Dave@DeemTeam.com If you have one or more pets, you probably struggle to keep your home looking and smelling clean. Fur and pet dander can easily cling to carpets. Pets can spread dirt that they bring in from outdoors and leave waste on the floor, plus untrimmed nails can snag on even the shortest carpet fibers. Here are some ways you can prevent damage from your pets to your carpet and keep your home clean. Vacuum and Clean Carpets Regularly When you own pets, frequent vacuuming is essential. How often you should vacuum will depend on the number and types of pets you have and how much they shed. Vacuuming once or twice a week may be sufficient, or you may need to vacuum every day to pick up all the hair that your pets shed. Vacuum furniture, too, so dirt and hair don’t get transferred to carpets. You may want to use a powder that you can sprinkle on carpets before you vacuum. A powder designed especially for pets can help remove pet dander that’s stuck to...

David Deem 714-997-3486 Dave@DeemTeam.com If your house gets damaged by a covered peril and the cost of repairs is significantly higher than your deductible, you will most likely decide to file a claim with your homeowners insurance company. Before you do so, it’s important to know what to expect and how to handle each step. Understand Your Coverage Before you submit a claim, read through your insurance policy to make sure that your loss will be covered. Pay attention to the list of exclusions. If your home was damaged by something that is specifically excluded, your claim will be denied. The insurance company may also refuse to pay if the damage was caused or made worse by lack of maintenance. Make sure that you know if you’re covered for replacement cost or actual cash value, and that you understand the difference. Check your policy for additional coverage, like other accommodations, for example, if your home is uninhabitable. Report Damage to the Insurance Company If the damage to y...

David Deem 714-997-3486 Dave@DeemTeam.com Your credit scores are based on several factors, including your credit card balances, the amount of credit you have available, your payment history and the length of your credit history. You may not realize how some actions or mistakes can impact your credit scores. Carrying High Balances or Using a High Percentage of Your Available Credit Having high credit card balances can be problematic. You may struggle to cover your monthly payments and interest charges can cause the balances to keep growing.  A high balance can also cause you to have a high credit utilization ratio, or percentage of available credit you’re using. When that ratio creeps up, your credit scores can go down. You should aim to keep your credit utilization ratio below 30%. Transferring all your balances to one card may make it easier to handle your monthly payments and help you qualify for a lower interest rate, but it can also have a negative impact on your credit scores....

  David Deem 714-997-3486 Dave@DeemTeam.com B y Liz Dominguez Housing inventory experienced considerable recovery for the second consecutive month in June, according to the latest Zillow Real Estate Market Report. Inventory is still low in this high-demand market, however, which is continuing to push prices upward.   The details: - Inventory is now 29.2% below 2020 levels but is steadily improving. - Home value growth is up 15% YoY—breaking annual records for the second consecutive month. - The Zillow Home Value Index (ZHVI) reached $293,349 in June (up $38,341 from last year) - Monthly growth accelerated in 48 of the top 50 metros, holding firm in Pittsburgh and Memphis.   The takeaway:   While inventory is still much lower than needed, these slow increases are giving buyers a little more breathing room, taking some pressure off a market that was consistently seeing above-average market performance for the summer months.   "Another month of rising housing ...

  David Deem 714-997-3486 Dave@DeemTeam.com With home prices continuing to deliver double-digit increases, some are concerned we’re in a housing bubble like the one in 2006. However, a closer look at the market data indicates this is nothing like 2006 for three major reasons. 1. The housing market isn’t driven by risky mortgage loans. Back in 2006, nearly everyone could qualify for a loan. The Mortgage Credit Availability Index (MCAI) from the  Mortgage Bankers’ Association  is an indicator of the availability of mortgage money. The higher the index, the easier it is to obtain a mortgage. The MCAI more than doubled from 2004 (378) to 2006 (869). Today, the index stands at 130. As an example of the difference between today and 2006, let’s look at the volume of mortgages that originated when a buyer had less than a 620 credit score. Dr. Frank Nothaft, Chief Economist for  CoreLogic , reiterates this point: “There are marked differences in today...