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Showing posts from October, 2021

Orange County Housing Summary: October 19, 2021

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  David Deem 714-997-3486 Dave@DeemTeam.com ·   ·        The active listing inventory shed 137 homes in the past two weeks, down 6%, and now totals 2,042 homes, its lowest level since tracking. In September, there were 10% fewer homes that came on the market compared to the 3-year average between 2017 to 2019 (2020 was skewed due to COVID-19), 314 less. Last ye ar, there were 4,173 homes on the market, 2,131 additional homes, or 104% more. ·        Demand, the number of pending sales over the prior month, decreased by 6 pending sales in the past two weeks, nearly unchanged, and now totals 2,515. Last year, there were 3,153 pending sales, 25% more than today due to a delay in the Spring Market because of COVID. ·        With large drops in the supply, the Expected Market Time, the number of days to sell all Orange County listings at the current buying pace, decreased from 26 to 24 days in the past couple of weeks, an extremely Hot Seller’s Market (less than 60 days). It was at

Mortgage Applications Relatively Flat

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David Deem 714-997-3486 Dave@DeemTeam.com Mortgage applications increased 0.2% for the week ending Oct. 8, 2021. According to the Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey, the Market Composite Index, a measure of mortgage loan application volume, increased 0.2% on a seasonally adjusted basis from the previous week.   Unadjusted, the Index increased 0.4% compared to the previous week. The Refinance Index decreased 1% from the previous week—16% lower YoY. The seasonally adjusted Purchase Index increased 2% from the previous week. The unadjusted Purchase Index increased 2% compared with the previous week—10% lower than the same week one year ago.   Additional details:   - The refi share of mortgage activity decreased to 63.9% of total applications.   - The adjustable-rate mortgage (ARM) share of activity remained unchanged at 3.4% of total applications.   - The FHA share of total applications decreased to 10.2%.   - The VA share of total applications de

What Do Past Years Tell Us About Today’s Real Estate Market?

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  David Deem 714-997-3486 Dave@DeemTeam.com As you follow the news, you’re likely seeing headlines discussing what’s going on in today’s housing market. Chances are high that some of the more recent storylines you’ve come across mention terms like  cooling  or  slowing  when talking about where the market is headed. But what do these terms mean?  The housing market today is  anything but normal , and it’s still an incredibly strong  sellers’ market , especially when compared to the few years leading up to the pandemic. With that in mind, what can previous years tell us about today’s real estate market and if it’s truly slowing? We’re Still Seeing an Above Average Number of Sales You may see headlines about a drop in home sales. But are those headlines telling the full story? The most recent  Existing Home Sales Report  from the  National Association of Realtors  (NAR) does show a drop of about 2% from July to August. But the month-over-month decline doesn’t provide the full picture  (s

Don’t Wait for a Lower Mortgage Rate – It Could Cost You

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  David Deem 714-997-3486 Dave@DeemTeam.com Today’s housing market is truly one for the record books. Over the past year, we’ve seen the lowest mortgage rates in history. And while those rates seemed to bottom out in January of this year, the golden window of opportunity for buyers isn’t over just yet. If you’re one of the buyers who worry they’ve missed out, rest assured today’s mortgage rates are still worth taking advantage of. Even today,  our mortgage rates are below what they’ve been in recent decades.  So, while you may not be able to lock in the rate your friend got recently, you’re still in a great position to secure a rate well below what your parents and even grandparents got in years past. The key will be acting sooner rather than later. In late September, mortgage rates ticked above 3% for the first time in months. And according to experts throughout the industry, mortgage rates are projected to continue rising in the months ahead. Here’s where experts say rates are headed

The Big Question: Should You Renovate or Move?

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David Deem 714-997-3486 Dave@DeemTeam.com The last 18 months changed what many buyers are looking for in a home. Recently, the  American Institute of Architects  released their  AIA Home Design Trends Survey  results for Q3 2021. The survey reveals the following: 70% of respondents want more outdoor living space 69% of respondents want a home office (48% wanted multiple offices) 46% of respondents want a multi-function room/flexible space 42% of respondents want an au pair/in-law suite 39% of respondents want an exercise room/yoga space If you’re a homeowner who wants to add any of the above, you have two options: renovate your current house or buy a home that already has the spaces you desire. The decision you make could be determined by factors like: A possible desire to relocate The difference in the cost of a renovation versus a purchase Finding an existing home or designing a new home that has exactly what you want (versus trying to restructure the layout of your current house) In

Experts Agree: Homeownership Provides a Path to Long-Term Wealth

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  David Deem 714-997-3486 Dave@DeemTeam.com A recent survey from  LendingTree.com  found there are multiple reasons why Americans would choose to purchase a home instead of renting. Some of the most popular non-financial reasons given include: The flexibility to make the space your own The pride homeownership offers The sense of stability In the same survey, 41% of respondents say they’d rather own a home than rent because of the unique way  homeownership  builds wealth  over time. And experts agree – the home you own is an important tool for building your net worth.  Here’s what many of those experts have to say about building long-term financial stability through homeownership. According to the  National Association of Realtors  (NAR): “Homeowners who purchased a typical single-family existing-home 30 years ago at the median sales price of $103,333 with a 10% down payment loan and who sold the property at the median sales price of $357,700 in 2021 Q2  accumulated housing wealth of $3

Understanding California’s Proposition 13 Property Transfer Exceptions

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David Deem 714-997-3486 Dave@DeemTeam.com   Are you looking to transfer property? If so, your property transfer may be exempt from reassessment for real estate property tax purposes. In California, the annual real estate tax on a parcel of property is limited to one percent of its assessed value (Proposition 13). The “assessed value” may not be increased by more than two percent per year unless the property has changed ownership. The following types of ownership transfers are not considered “changed ownership” and should not result in a reassessment. Please let your title or escrow officer know if one of the following exceptions applies to your transaction:  Proposition 19 – The Home Protection for Seniors, Severely Disabled, Families, and Victims of Wildfire or Natural Disasters Act X Eligible homeowners who are 55 years and older, severely disabled, or victims of wildfires and natural disasters may transfer their tax assessments to a different home of the same or lesser market value,

What Do Supply and Demand Tell Us About Today’s Housing Market?

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  David Deem 714-997-3486 Dave@DeemTeam.com   There’s a well-known economic theory – the law of supply and demand – that explains what’s happening with prices in the current real estate market. Put simply, when demand for an item is high, prices rise. When the supply of the item increases, prices fall. Of course, when demand is  very high  and supply is  very low , prices can rise  significantly . Understanding the impact both supply and demand have can provide the answers to a few popular questions about today’s housing market: Why are prices rising? Where are prices headed? What does this mean for homebuyers? Why Are Prices Rising? According to the latest  Home Price Insights  report from  CoreLogic , home prices have risen 18.1% since this time last year. But what’s driving the increase? Recent buyer and seller activity data from the  National Association of Realtors  (NAR) helps answer that question. When we take NAR’s buyer activity data and compare it to the seller traffic during

Mortgage Rates Jump the 3% Threshold

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David Deem 714-997-3486 Dave@DeemTeam.com Mortgage rates peeked over the 3% threshold for the 30-year fixed-rate mortgage (FRM), marking 3.01% for the week ending Sept. 30.   According to Freddie Mac's Primary  Mortgage Market Survey®,  this is up from last week's 2.88%.   Mortgage details:   -  30-year fixed-rate mortgage  averaged 3.01% with an average 0.7 point for the week ending Sept. 30, 2021, up from last week's 2.88%. Last year, the 30-year FRM averaged 2.88%.   -  15-year fixed-rate mortgage  averaged 2.28%with an average 0.6 point, up from last week's 2.15%. Last year, the 15-year FRM averaged 2.36%.   -  5-year Treasury-indexed hybrid adjustable-rate mortgage  (ARM) averaged 2.48% with an average 0.3 point, up from last week's 2.43%. Last year, the 5-year ARM averaged 2.90%.   The takeaway:   This marks the end of a seven-week streak of either remaining flat or moving slightly. The biggest week-over-week increase since February, the 30-year loan increased

Home Selling Checklist: 12 Things to Do Before Selling Your House

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  David Deem 714-997-3486 Dave@DeemTeam.com By  Cathie Ericson Getting ready to sell your house? Then it’s time to roll up your sleeves and get to work because there are tons of things to do before listing your home! Selling a home, after all, entails a whole lot more than just planting a “For Sale” sign on your front lawn or uploading a few random photos of your place— especially  if you’re angling for the most cash. (And, honestly, who isn’t?) So before you put your house on the market, peruse this checklist of what to do before selling your house. Some of these tips are surprisingly easy, while others might require a bit more elbow grease. But they’re bound to pay off once buyers start  oohing  and  ahhing  over your place—and hopefully ponying up a great offer. 1. Find a great real estate agent Think you can sell your home yourself, and pocket the cash you would otherwise pay a real estate agent? It can be tempting, especially in a hot market, but resist the urge, says  Jon Sterlin