David Deem 714-997-3486 Dave@DeemTeam.com Whether or not you’ve been following the real estate industry lately, there’s a good chance you’ve heard we’re in a serious sellers’ market. But what does that really mean? And why are conditions today so good for people who want to list their house? It starts with the number of houses available for sale. The latest  Existing Home Sales Report  from the  National Association of Realtors  (NAR) shows housing supply is still astonishingly low.  Today, we have a 2.6-month supply  of homes at the current sales pace. Historically, a  6-month supply is necessary for a ‘normal’ or ‘neutral’ market  in which there are enough homes available for active buyers  (see graph below) : When the supply of houses for sale is as low as it is right now, it’s much harder for buyers to find homes to purchase. That creates increased competition among purchasers which leads to more bidding wars. And if buyers know...

David Deem 714-997-3486 Dave@DeemTeam.com When you hear the phrase  home price appreciation , what does it mean to you? Through context clues alone, chances are you know it has to do with rising home prices. And as a seller, you know rising home prices are good news for your potential sale. But let’s look past the dollar signs and dive deeper into the concept. To truly understand home price appreciation, you need to know how it works and why it matters to you. Investopedia  defines appreciation like this: “ Appreciation, in general terms, is an increase in the value of an asset over time . The increase can occur for a number of reasons, including increased demand or weakening supply, or as a result of changes in inflation or interest rates. This is the opposite of depreciation, which is a decrease in value over time.”   When we consider this definition and how it applies to real estate, a few words stick out:  supply and demand . In today’s real estate market, we’re ...

David Deem 714-997-3486 Dave@DeemTeam.com In the current sellers’ market, many homeowners wonder what, if anything, needs to be remodeled before they list their house. That’s where a trusted real estate professional comes in. They can help you think through today’s market conditions and how they impact what you should – and shouldn’t – renovate before selling. Here are some considerations a professional will guide you through: 1. With current supply challenges, buyers may be willing to take on projects of their own. A more balanced market typically sees a 6-month supply of homes for sale. Above that, and we’re in a buyers’ market. Below that, and we’re in a sellers’ market. According to a recent report by the  National Association of Realtors  (NAR), our current supply of homes for sale, while rising, still remains solidly in sellers’ market territory: “ Unsold inventory sits at a 2.6-month supply at the current sales pace , modestly up from May's 2.5-month supp...

  David Deem 714-997-3486 Dave@DeemTeam.com There are many headlines about how housing affordability is declining. The headlines are correct: it’s less affordable to purchase a home today than it was a year ago. However, it’s important to give this trend context. Is it less expensive to buy a house today than it was in 2005? What about 1995? What happens if we go all the way back to 1985? Or even 1975? Obviously, the price of a home has appreciated dramatically over the last 45 years. So have the prices of milk, bread, and just about every other consumable.  Prices rise over time  – we know it as  inflation . However, when we look at housing,  price  is just one component that makes up the monthly  cost  of the home. Another key factor is the mortgage rate at the time of purchase. Let’s look back at the  cost  of a home over the last five decades and adjust it for inflation by converting that cost to 2021 dollars. Here’s the methodology ...

  David Deem 714-997-3486 Dave@DeemTeam.com It’s no secret that one of the top stories in today’s real estate market is low housing supply and high buyer demand. If you’re a first-time buyer looking for a starter home or are someone who’s interested in downsizing, it may be worth considering a condominium (condo) as a worthwhile option. In fact, trends indicate condos are gaining popularity among buyers. In the latest  Existing Homes Sales Report  from the  National Association of Realtors  (NAR), the data shows condo sales rising throughout the first half of this year ( see graph below ): There are a few reasons more and more people are opting to buy condos – the benefits of condo life can be quite compelling. Let’s explore the main perks to find out if a condo is a good fit for you. Affordability According to the NAR report, the median sales price of a condo is roughly $59,000 less than the median price of a single-family detached home...

David Deem 714-997-3486 Dave@DeemTeam.com Some Highlights If you’re thinking of selling your house but don’t know what you should buy, you have options. Existing homes offer a wide variety of home styles, an established neighborhood, and lived-in charm. Meanwhile, new home construction lets you create your perfect home, cash in on energy efficiency, and minimize repairs. Whether you’re looking for newly built or existing homes, both have their perks. If you’re ready to sell your house, let’s connect today to go over the perks of both existing and newly built homes to find out what’s right for you. www.DeemTeam.com DRE#01266522  

David Deem 714-997-3486 Dave@DeemTeam.com   ·         The active listing inventory decreased by 17 homes in the past two-weeks, down 1%, and now totals 2,520. In July, there were 4% fewer homes that came on the market compared to the 3-year average between 2017 to 2019 (2020 was skewed do to COVID-19), 157 less. Last ye ar, there were 4,449 homes on the market, 1,929 additional homes, or 77% more. ·         Demand, the number of pending sales over the prior month, decreased by 3 pending sales in the past two-weeks, nearly unchanged, and now totals 2,809. Last year, there were 3,281 pending sales, 17% more than today , due to a delayed Spring Market. ·         With not much of a change in supply or 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, an extr...