David Deem 714-997-3486 Dave@DeemTeam.com With the average 30-year fixed mortgage rate from  Freddie Mac  climbing above 3%, rising rates are one of the topics dominating the discussion in the housing market today. And since experts project rates will rise further in the coming months, that conversation isn’t going away any time soon. But as a homebuyer, what do rates above 3%  really  mean? Today’s Average Mortgage Rate Still Presents Buyers with a Great Opportunity Buyers don’t want mortgage rates to rise, as any upward movement increases your monthly mortgage payment. But it’s important to put today’s average mortgage rate into perspective. The graph below shows today’s rate in comparison to average rates over the last five years: As the graph shows, even though today’s rate is above 3%,  it’s still incredibly competitive. But today’s rate isn’t just low when compared to the most recent years. To truly put today into persp...

  David Deem 714-997-3486 Dave@DeemTeam.com Building financial wealth and stability remains one of the top reasons Americans choose to own a home, and as a homeowner, your wealth often grows without you even realizing it. In a recent paper published by the  Urban Institute,   Home Ownership is Affordable Housing , author Mike Loftin illustrates how homeowners increase their equity and their wealth simply by making monthly mortgage payments: “The principal portion that reduces the loan balance builds the homeowner’s equity. In doing so, the principal payments behave like an automatic savings account. The principal payment is not money going out; it is money staying in.” But home equity – the difference between the value of your home and what you currently owe – isn’t just built through your monthly principal payments. Home price appreciation plays a vital role in growing your equity and, ultimately, your wealth. As  Freddie Mac   explains : “Homeownersh...

  David Deem 714-997-3486 Dave@DeemTeam.com Last month, in a post on the  Liberty Street Economics  blog, the  Federal Reserve Bank of New York  noted that Americans believe  buying a home  is definitely or probably a better investment than buying stocks. Last week, a  Gallup Poll  reaffirmed those findings. In an  article  on the current real estate market,  Gallup  reports: “Gallup usually finds that Americans regard real estate as the best long-term investment among several options -- seeing it as superior to stocks, gold, savings accounts and bonds. This year, 41% choose real estate as the best investment, up from 35% a year ago, with stocks a distant second.” Here’s the breakdown: The article goes on to say: “The 41% choosing real estate is the highest selecting any of the five investment options in the 11 years Gallup has asked this question.” Is real estate really a secure investment right now? Some question America...

  David Deem 714-997-3486 Dave@DeemTeam.com A  Fannie Mae   survey  recently revealed some of the most highly-rated benefits of homeownership, which continue to be key drivers in today’s power-packed housing market. Here are the top four financial benefits of owning a home according to consumer respondents: 88% - a better chance of saving for retirement 87% - the best investment plan 85% - the chance to be better off financially 85% - the chance to build up wealth Additional financial advantages of homeownership included in the survey are having the best overall tax situation and being able to live within your budget. Does homeownership actually give you a better chance to build wealth? No one can question a person’s unique feelings about the importance of homeownership. However, it’s fair to ask if the numbers justify homeownership as a  financial  asset. Last fall, the  Federal Reserve  released the  Survey of Consumer Finances , a report d...

  David Deem 714-997-3486 Dave@DeemTeam.com Last March, many involved in the residential housing industry feared the market would be crushed under the pressure of a once-in-a-lifetime pandemic. Instead,  real estate had one of its best years ever . Home sales and prices were both up substantially over the year before. 2020 was so strong that many now fear the market’s exuberance mirrors that of the last housing boom and, as a result, we’re now headed for another crash. However,  there are many reasons this real estate market is nothing like 2008 . Here are six visuals to show the dramatic differences. 1. Mortgage standards are nothing like they were back then. During the housing bubble, it was difficult  not  to get a mortgage. Today, it’s tough to qualify. Recently, the  Urban Institute  released their latest  Housing Credit Availability Index  (HCAI) which “ measures the percentage of owner-occupied home purchase loans that are likely to de...

David Deem 714-997-3486 Dave@DeemTeam.com Some Highlights Buying a home can be intimidating if you’re not familiar with the terms used throughout the process. To point you in the right direction, here’s a list of some of the most common language you’ll hear along the way. The best way to ensure your homebuying process is a positive one is to find a real estate professional who will guide you through every aspect of the transaction with  ‘the heart of a teacher’  by putting your needs first. www.DeemTeam.com DRE#01266522  

David Deem 714-997-3486 Dave@DeemTeam.com For years, real estate has been considered the best  investment  you can make. A major reason for this is due to the net worth a household gains through homeownership. In fact, according to the  2019 Survey of Consumer Finance Data  from the  Federal Reserve,  for the average homeowner: “…a primary home accounts for 90% of the total wealth of a family in the U.S.” How do homeowners gain wealth? Most large purchases, like cars and appliances, depreciate in value as they age, so it’s understandable to question how owning a home can  increase  wealth over time. In a simple equation, the  National Association of Realtors  (NAR)  explains  how the combination of paying your mortgage and home price appreciation grow overall wealth: Principal Payments + Price Appreciation Gains = Housing Wealth Gain As home values increase and you make payments toward your home loan, you’ll gain wealth through...

David Deem 714-997-3486 Dave@DeemTeam.com The active listing inventory increased by 20 homes in the past two-weeks, nearly unchanged, and now totals 4,173, its lowest level for mid-October since 2012. COVID-19 is not suppressing the inventory; in September there were 21% more homes that came on the market compared to last year. This trend evolved in August and continues to this day. Last ye ar, there were 6,412 homes on the market, 2,239 additional homes, or 54% more. Demand, the number of pending sales over the prior month, decreased by 101 pending sales in the past two-weeks, down 3%, and now totals 3,153. COVID-19 currently has no effect on demand. Record low rates are fueling today’s exceptional demand. Last year, there were 2,251 pending sales, 29% fewer than today. The Expected Market Time for all of Orange County increased from 38 days to 40, a Hot Seller’s Market (less than 60 days). It was at 85 days last year, much slower than today .  For homes priced below $750,000, the...

  David Deem 714-997-3486 Dave@DeemTeam.com Should You Buy a Retirement Home Sooner Rather than Later? Every day in the U.S., roughly  10,000  people turn 65. Prior to the health crisis that swept the nation in 2020, most people had to wait until they retired to make a move to the beach, the golf course, or the senior living community they were looking to settle into for their later years in life. This year, however, the game changed. Many of today’s workers who are nearing the end of their professional careers, but maybe aren’t quite ready to retire, have a new choice to make:  should I move before I retire?  If the sand and sun are calling your name and you have the opportunity to  work remotely  for the foreseeable future, now may be a great time to purchase that beach bungalow you’ve always dreamed of or the  single-story  home in the sprawling countryside that might be a little further out of town. Whether it’s a second home or a future ...