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Showing posts from July, 2021

Orange County Housing Summary: July 27, 2021

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  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 the past couple of weeks, its highest level since February, but still an extremely Hot Seller’s

Remodeling Confidence Up Despite Material Shortages

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  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 to 86.   The  takeaway

How to Care for Carpet If You Have Pets

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  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 car

How to Navigate the Homeowners Insurance Claims Process

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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

Things You May Be Doing That Are Hurting Your Credit Scores

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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.  Cl

Is Inventory Making a Comeback?

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  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 inventory gives buyers s

3 Charts That Show This Isn’t a Housing Bubble

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  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’s run up in prices compared to 2005, which

What You Should Do Before Interest Rates Rise

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David Deem 714-997-3486 Dave@DeemTeam.com In today’s real estate market, mortgage interest rates are near record lows. If you’ve been in your current home for several years and haven’t refinanced lately,  there’s a good chance you have a mortgage with an interest rate higher than today’s average.  Here are some options you should consider if you want to take advantage of today’s current low rates before they rise. Sell and Move Up (or Downsize) Many of today’s homeowners are rethinking what they need in a home and redefining what their dream home means. For some, continued remote work is bringing about the need for additional space. For others, moving to a lower cost-of-living area or downsizing may be great options. If you’re considering either of these, there may not be a better time to move. Here’s why. The chart below shows average mortgage rates by decade compared to where they are today: Today’s rates are below 3%,  but experts forecast rates to rise over the next few years. If t

Experts Agree: Options Are Improving for Buyers

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David Deem 714-997-3486 Dave@DeemTeam.com Some Highlights Buyers hoping for more homes to choose from may be in luck as housing inventory begins to rise. Many experts agree – new sellers listing their homes is great news for buyers and the overall market. Although the supply increases are modest, more homes means more options for buyers. A rise in inventory may also help slow the price gains we’ve seen recently and could be a sign of good things to come. If you’re searching for a home, rising inventory is welcome news. Let’s connect today to discuss new listings in our area.  

Housing Supply Is Rising. What Does That Mean for You?

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  David Deem 714-997-3486 Dave@DeemTeam.com An important factor in today’s market is the number of homes for sale. While inventory levels continue to sit near historic lows, there are indications  we may have hit the lowest point we’ll see . Odeta Kushi, Deputy Chief Economist at  First American,  recently  said  of our supply challenges: “ It looks like inventory may have hit a bottom  (we’ve seen this in the higher frequency data as well). Unsold inventory in May was at 2.5 months supply, up from 2.4. ” To put it into perspective, the graph below shows levels of inventory  rising  since the beginning of the year: We’re still not close to a  balanced market , which would be a 6 months’ supply of homes for sale. However, we are seeing a  slow but steady increase in homes coming up for sale.  And that leaves many buyers and sellers wondering the same thing: what does that mean for me? Buyers: More Options Are Arriving, so It’s Time To Act If you’re a buyer, more inventory coming to mark

Why This Isn’t Your Typical Summer Housing Market

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David Deem 714-997-3486 Dave@DeemTeam.com In real estate, it’s normal to see ebbs and flows in the market. Typically, the summer months are slower-paced than the traditionally busy spring. But this isn’t a typical summer. As the economy rebounds and life is returning to normal, the real estate market is expected to have an unusually strong summer season. Here’s how this summer is stacking up against the norm and what it means for you. Inventory is increasing. According to the latest  Existing Home Sales Report  from the  National Association of Realtors  (NAR), inventory levels have been rising since February of this year. Looking at the graph below, there’s a clear upward trend, as shown in the green bars. Currently, there’s roughly a 2.5 months’ supply of homes for sale. And while inventory is trending up as more houses are coming to the market, it’s still much lower than several of the previous summers, as the orange bars indicate. If you’re looking to buy , some relief is on the wa

Orange County Housing Summary: July 13, 2021

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  David Deem 714-997-3486 Dave@DeemTeam.com The active listing inventory increased by 140 homes in the past two-weeks, up 6%, and now totals 2,528, its highest level since January. In June, there were 14% fewer homes that came on the market compared to 5-year average between 2015 to 2019 (2020 was skewed do to COVID-19), 557 less. Last ye ar, there were 4,645 homes on the market, 2,117 additional homes, or 84% more. Demand, the number of pending sales over the prior month, decreased by 145 pending sales in the past two-weeks, down 5%, and now totals 2,761, its lowest level since February. Last year, there were 3,050 pending sales, 10% more than today , due to a delayed Spring Market. With an increase in the supply and a drop in demand, the Expected Market Time, the number of days to sell all Orange County listings at the current buying pace, increased from 25 to 27 days in the past couple of weeks, its highest level since February, but still an extremely Hot Seller’s Market (less tha

Selling Your House? Make Sure You Price It Right.

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David Deem 714-997-3486 Dave@DeemTeam.com There’s no denying we’re in a  sellers’ market . With low inventory and high buyer demand, homes today are selling above the asking price at a record rate. According to the latest  Realtors Confidence Index Survey  from the  National Association of   Realtors  (NAR): Homes typically sell within   17 days  (compared to 26 days one year ago). The average home sold has  five offers to pick from . 54% of offers are over the asking price . Because so many buyers are competing for so few homes, bidding wars are driving up  home prices . According to an average of leading expert projections,  existing home prices are expected to increase by  8.9%  this year. Yet even in today’s red-hot sellers’ market, it’s important to price your house right. While it may be tempting to price your house on the high side to capitalize on this trend, doing so could limit your house’s potential. Why Pricing Your House Right Matters Here’s the thing – a high price tag do