David Deem 714-997-3486 Dave@DeemTeam.com If you’re looking to buy or sell a house, chances are you’ve heard talk about today’s rising home prices. And while this increase in home values is great news for sellers, you may be wondering what the future holds. Will prices continue to rise with time, or should you expect them to fall? To answer that question, let’s first understand a few terms you may be hearing right now. Appreciation  is an  increase  in the value of an asset. Depreciation  is a  decrease  in the value of an asset. Deceleration  is when something happens at a  slower pace . It’s important to note home prices have increased, or  appreciated , for  114  straight months. To find out if that trend may continue, look to the experts.  Pulsenomics  surveyed over 100 economists, investment strategists, and housing market analysts asking for their five-year projections. In terms of what lies ahead, expert...

  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 mo...

  David Deem 714-997-3486 Dave@DeemTeam.com One of the major story lines over the last year is how well the residential real estate market performed. One key metric in the spotlight is home price appreciation. According to the latest indices, home prices are skyrocketing this year. Here are the latest percentages showing the year-over-year increase in home price appreciation: The  House Price Index (HPI)  from the  Federal Housing Finance Agency  (FHFA): 18.8% The  S. National Home Price Index  from  S&P Case-Shiller : 18.6% The  Home Price Insights Report  from  CoreLogic : 18% The dramatic increases are seen at every price point and in all regions of the country. Increases Are Across Every Price Point According to the latest  Home Price Index  from  CoreLogic , each price range is seeing at least a 19% increase year-over-year: Increases Are Across Every Region in the Country Every region in the country is experi...

  David Deem 714-997-3486 Dave@DeemTeam.com If you’re trying to decide whether or not to sell your house, this is the time to think seriously about making a move.  Fannie  Mae’s  recent  Home Purchase Sentiment Index  (HPSI) reveals the number of respondents who say it’s a good time to sell is higher now than it was over the past few summers ( see graph below ).  Today, the majority of consumers, 75 percent, say it’s a good time to  sell a house . Why is sellers sentiment up year-over-year? The higher good time to sell sentiment has to do with today’s market conditions, specifically low housing supply and high buyer demand. In the simplest terms, we don’t have enough houses available for sale to meet buyer demand. According to  the latest data  from the  National Association of Realtors  (NAR), we’re still firmly in a sellers’ market because housing supply is well below a balanced norm ( shown in the gr...

  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...

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...

David Deem 714-997-3486 Dave@DeemTeam.com The question of whether the real estate market is a bubble ready to pop seems to be dominating a lot of conversations – and everyone has an opinion. Yet, when it comes down to it, the opinions that carry the most weight are the ones based on experience and expertise. Here are four expert opinions from professionals and organizations that have devoted their careers to giving great advice to the housing industry. The Joint Center for Housing Studies  in their  The State of the Nation’s Housing 2021  report: “… conditions today are quite  different than in the early 2000s , particularly in terms of credit availability. The  current climb in house prices instead reflects strong demand amid tight supply , helped along by record-low interest rates.” Nathaniel Karp, Chief U.S. Economist at  BBVA : “The housing market is in line with fundamentals as interest rates are attractive and incomes are high due to fiscal stimulus, ...

David Deem 714-997-3486 Dave@DeemTeam.com Home prices have increased significantly over the last year, which in turn has grown the net worth of homeowners. Appreciation and home equity are directly linked – as the value of a home increases, so does a homeowner’s equity. And with these recent gains, homeowners are witnessing their  financial stability and well-being grow to  record levels . In more good news for homeowners, the most recent  Home Price Expectations Survey  – a survey of a national panel of over one hundred economists, real estate experts, and investment and market strategists –  forecasts  home prices will continue appreciating over the next five years, adding to the record amount of equity homeowners have already gained over the past year.  Below are the expected year-over-year rates of home price appreciation from the report: What Does This Mean for Homeowners? Home prices are climbing today, and the data in the survey indicates they’l...