Low Inventory Causes Home Prices to Accelerate

Low Inventory Causes Home Prices to Accelerate | Simplifying The Market

The National Association of Realtors (NAR) released their latest Quarterly Metro Home Price report earlier this month. The report revealed that home prices are not only continuing to rise but that the increases are accelerating. Lawrence Yun, Chief Economist at NAR, discussed the impact of low inventory on buyers in the report:

“Without a significant ramp-up in new home construction and more homeowners listing their homes for sale, buyers are likely to see little relief in the form of slowing price growth in the months ahead.”

Here are the percentage increases of home prices for the last two quarters:

Low Inventory Causes Home Prices to Accelerate | Simplifying The Market

What this means to sellers

Rising prices are a homeowner’s best friend. As reported by CoreLogic in a recent blog post:

“With demand strong and inventory thin, the share of homes selling for the list price or more has also returned to pre-bust levels. With inventory tight, homes are more likely to sell above the asking price.”

What this means to buyers

In a market where prices are rising, buyers should take into account the cost of waiting. Obviously, they will pay more for the same house later this year. However, as Construction Dive reported, the amounts of cash necessary to buy a home will also increase.

“These factors have created a situation where the market keeps moving the goalposts in terms of the down payment necessary for first-time homebuyers to get into a home.”

Bottom Line

If you’re thinking of selling and moving down, waiting might make sense. If you are a first time buyer or a seller thinking of moving up, waiting probably doesn’t make sense.

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Mortgage Rates Again at Historic Lows

Mortgage Rates Again at Historic Lows | Simplifying The Market

Just two weeks ago, we posted an article discussing where mortgage interest rates may be heading over the next twelve months. We quoted projections from Fannie Mae, Freddie Mac, the Mortgage Bankers’ Association and the National Association of Realtors. Each predicted that rates would begin to rise slowly and steadily throughout 2016.

However, shaky economic news and a volatile stock market have actually caused rates to drop six out of the last seven weeks, and have remained at 3.65% for the past two weeks.

Mortgage Rates Again at Historic Lows | Simplifying The Market

Rates have again fallen to historic lows yet many experts still expect them to increase in 2016. The only thing we know for sure is that, according to Freddie Mac, current rates are the best they have been since last April.

Bottom Line

If you are thinking of buying your first home or moving up to your ultimate dream home, now is a great time to get a sensational rate on your mortgage.

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Thinking of Buying A Home? What Are You Waiting For?

Thinking of Buying A Home? What Are You Waiting For? | Simplifying The Market

With spring right around the corner, you may be wondering if you should wait to enter the housing market. Here are four great reasons to consider buying a home today instead of waiting.

  1. Prices Will Continue to Rise

CoreLogic’s latest Home Price Index reports that home prices have appreciated by 6.3% over the last 12 months. The same report predicts that prices will continue to increase at a rate of 5.4% over the next year. The Home Price Expectation Survey polls a distinguished panel of over 100 economists, investment strategists, and housing market analysts. Their most recent report projects home values to appreciate by more than 3.2% a year for the next 5 years.

The bottom in home prices has come and gone. Home values will continue to appreciate for years. Waiting no longer makes sense.

  1. Mortgage Interest Rates Are Projected to Increase

Freddie Mac’s Primary Mortgage Market Survey shows that interest rates for a 30-year mortgage have remained below 4%. Most experts predict that they will begin to rise over the next 12 months. The Mortgage Bankers Association, Freddie Mac & the National Association of Realtors are in unison projecting that rates will be up almost three-quarters of a percentage point by this time next year.

An increase in rates will impact YOUR monthly mortgage payment. Your housing expense will be more a year from now if a mortgage is necessary to purchase your next home.

  1. Either Way You Are Paying a Mortgage

As a paper from the Joint Center for Housing Studies at Harvard University explains:

“Households must consume housing whether they own or rent. Not even accounting for more favorable tax treatment of owning, homeowners pay debt service to pay down their own principal while households that rent pay down the principal of a landlord plus a rate of return. That’s yet another reason owning often does—as Americans intuit—end up making more financial sense than renting.”

  1. It’s Time to Move On with Your Life

The ‘cost’ of a home is determined by two major components: the price of the home and the current mortgage rate. It appears that both are on the rise.

But what if they weren’t? Would you wait?

Look at the actual reason you are buying and decide whether it is worth waiting. Whether you want to have a great place for your children to grow up, you want your family to be safer or you just want to have control over renovations, maybe it is time to buy.

If the right thing for you and your family is to purchase a home this year, buying sooner rather than later could lead to substantial savings.

Bottom Line

If you are ready and willing to buy, find out if you are able to. Let’s get to together to discuss finding you your dream home.

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Future Home Values: Where Do The Experts Think They Are Headed?

Future Home Values: Where Do The Experts Think They Are Headed? | Simplifying The Market

Today, many real estate conversations center on housing prices and where they may be headed. That is why we like the Home Price Expectation Survey.

Every quarter, Pulsenomics surveys a nationwide panel of over one hundred economists, real estate experts and investment & market strategists about where they believe prices are headed over the next five years. They then average the projections of all 100+ experts into a single number.

The results of their latest survey:

Home values will appreciate by 3.7% over the course of 2016, 3.3% in 2017 and 3.2% in the next two years, and finally 3.1% in 2020 (as shown below). That means the average annual appreciation will be 3.3% over the next 5 years.

Future Home Values: Where Do The Experts Think They Are Headed? | Simplifying The Market

The prediction for cumulative appreciation slowed slightly from 21.6% to 17.7% by 2020. The experts making up the most bearish quartile of the survey still are projecting a cumulative appreciation of 10.9%.

Future Home Values: Where Do The Experts Think They Are Headed? | Simplifying The Market

Bottom Line

Individual opinions make headlines. We believe the survey is a fairer depiction of future values.

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Are the Kids Finally Moving Out?

Are the Kids Finally Moving Out? | Simplifying The Market

During the recession, many young adults graduating from college were forced to move back in with their parents. This caused new household formations to drop dramatically from the long term average of 1.2 million formations annually to half that number. However, this may be the year this turns back around.

According to the Urban Land Institute’s report, Emerging Trends in Real Estate, household formations will increase dramatically. They project that 3.68 million additional households will be formed in the next three years. This brings household formations back to pre-recession numbers of 1.2 million a year.

What will happen in 2016?

One of the key indicators to an improving housing market is household formation: How many people are moving out and forming an independent living unit? Many of the people “moving out on their own” will be those Millennials who can finally move from their parents’ basements to their first home.

Not every person moving out will decide on an apartment. A certain percentage of consumers will decide that homeownership is a better option for themselves and their families.

Jonathan Smoke, Chief Economist at realtor.com, believes:

“Demand for for-sale housing will grow and will continue to be dominated by older millennials, aged 25 to 34. This demographic has the potential to claim a third of home sales in 2016 and represent 2 million home purchases.”

What about household formations moving forward?

And Louis Keely, the President of The Demand Institute, predicts strong household growth will continue over the next ten years:

“We expect new household formation to be robust over the next decade as the large millennial generation ages and forms new households of their own.”

Bottom Line

Here come the Millennials!! They will finally be entering the housing market in 2016 and will dominate real estate sales over the next decade.

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Homeownership Finally Makes Political Debate

Homeownership Finally Makes Political Debate | Simplifying The Market

Finally, the issue of homeownership has become a platform talking point in this year’s presidential debate. Yesterday, one of the candidates running for President spoke out about the importance of homeownership in America.

Hillary Clinton detailed a new economic agenda yesterday. In announcing her new agenda, she remarked:

“Homeownership is about more than just owning a home. It is about putting roots down in a community with better schools, safer streets and good jobs. And it is about building wealth, as homeowners build equity in their home one mortgage payment at a time…We must make sure that everyone has a fair shot at homeownership.”

This post isn’t political!

It doesn’t matter that it was Clinton who said it first. It doesn’t matter that she is a Democrat.

What matters is that EVERY candidate for our country’s highest office realizes the important role homeownership plays in the development of our nation.

The fact that homeownership was finally brought to the forefront of the debate is great news – no matter which way you lean politically.

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Play Chess… Not Checkers

Play Chess… Not Checkers | Simplifying The Market

Checkers is a simple game with a simple objective; eliminate the other player’s pieces. Even the process of doing so is simple, jump the other player’s pieces and start a collection. There is very little thought as to a defensive strategy and it is often more reactive than strategic.

Even though the objective of Chess is simply laid out — obtain the other player’s King — the process in which to obtain this goal is much more strategic. Chess requires a greater understanding of the ability of each of the 9 different pieces on the board and a risk assessment that takes longer than a simple scan of the board.

“It’s a game in which the winning strategy is dynamic and requires complex thought across many turns, both for the player and their opponent’s turns.  Chess requires a player to understand the context behind the moves on the board rather than just the risks offered by each individual turn.” – Play Chess Not Checkers by Zach West

You may have heard the saying, “Play Chess, Not Checkers” before, but how does this apply to real estate?

Plan past your next move

So you want to sell your house. You can just put a sign in your front yard and call it a day, right? Wrong! The process of listing your home for sale and what happens next is much more complex than that.

According to the Orlando Regional REALTOR Association, there are over 230 possible actions that need to take place during every successful real estate transaction. Don’t you want someone who has been there before, and who knows what these actions are to make sure that you acquire your dream?

One example, as we’ve reported before, is the fact that 92% of buyers search online for a home. That is in comparison to only 28% looking at print newspaper ads. Most real estate agents have an extensive internet strategy to promote the sale of your home. Do you?

Identify Risks & Defend Against Them

An experienced real estate professional knows the obstacles associated with buying or selling a home and works closely with other professionals to ensure the process is a smooth one.

Practice Makes Perfect

Just like with any skill, practice and experience bring a sense of confidence and expertise. Before you decide to take on the challenges of selling your house on your own, sit with a real estate professional in your marketplace and see what they have to offer.

Bottom Line

With an experienced Real Estate Professional on your side, even the complex process of buying your next home or selling your house can be strategically navigated.

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Costa Mesa CA Real Estate Market Report January 2016

Costa Mesa CA Homes for Sale and Sold for January 2016 Market Report
 

Costa Mesa CA Real Estate Activity For January 2016 vs January 2015

In January of 2016 there were 34 homes that closed within the month for Costa Mesa CA Real Estate. This no change in home sold, as there were 34 homes that also closed in January of 2015.

The average list price for the homes that closed in January of 2016 was $729,900

The average list price for the homes that closed in January of 2015 was $649,900

The average sale price for the homes that closed in January of 2016 was $821,353

The average sale price for the homes that closed in January of 2015 was $721,813

The …

 Click to see the full report

 
Below are highlight properties for Costa Mesa CA Homes for Sale and Sold for January 2016 Market Report. See more at the full report:
 
Highlights Maps & Local Schools  
 
Status: Just Listed
659 Joann Street, Costa Mesa, CA
$634999
4 BEDROOMS
2 BATHROOMS [ 2 FULL ]
LISTING MLS ID: OC16019375
Listing Courtesy of: Trulia.com

Status: Just Sold
3104 Taft Way, Costa Mesa, CA 92626
$760,000
5 BEDROOMS
4 BATHROOMS [ 4 FULL ]
Listing Courtesy of: Zillow.com

Status: Active
3201 Washington Avenue, Costa Mesa, CA
$739,000
3 BEDROOMS
1 BATHROOMS [ 1 FULL ]
LISTING MLS ID: OC16018370
Listing Courtesy of: Trulia.com

Status: Make an Offer
2842 Chios Rd, Costa Mesa, CA 92626
$885,000
4 BEDROOMS
2 BATHROOMS [ 2 FULL ]
Listing Courtesy of: Zillow.com

Status: For Sale by Owner
2528 Back Bay Loop # 42, Costa Mesa, CA 92627
$650,000
3 BEDROOMS
3 BATHROOMS [ 3 FULL ]
Listing Courtesy of: Zillow.com

 
See the Full Costa Mesa CA Homes for Sale and Sold for January 2016 Market Report
 
 
What is Your Home Worth?

Search All Homes For Sale

Search All Costa Mesa Homes For Sale

Andres Mancilla
REALTOR
Coldwell Banker BEACHSIDE REALTORS
562-712-5330
andres.e.mancilla@gmail.com












 
Information valid as of February 2, 2016. Please contact us for the most current information and status of these properties.

Costa Mesa CA Real Estate Market Report January 2016

Costa Mesa CA Homes for Sale and Sold for January 2016 Market Report
 

Costa Mesa CA Real Estate Activity For January 2016 vs January 2015

In January of 2016 there were 34 homes that closed within the month for Costa Mesa CA Real Estate. This no change in home sold, as there were 34 homes that also closed in January of 2015.

The average list price for the homes that closed in January of 2016 was $729,900

The average list price for the homes that closed in January of 2015 was $649,900

The average sale price for the homes that closed in January of 2016 was $821,353

The average sale price for the homes that closed in January of 2015 was $721,813

The …

 Click to see the full report

 
Below are highlight properties for Costa Mesa CA Homes for Sale and Sold for January 2016 Market Report. See more at the full report:
 
Highlights Maps & Local Schools  
 
Status: Just Listed
659 Joann Street, Costa Mesa, CA
$634999
4 BEDROOMS
2 BATHROOMS [ 2 FULL ]
LISTING MLS ID: OC16019375
Listing Courtesy of: Trulia.com

Status: Just Sold
3104 Taft Way, Costa Mesa, CA 92626
$760,000
5 BEDROOMS
4 BATHROOMS [ 4 FULL ]
Listing Courtesy of: Zillow.com

Status: Active
3201 Washington Avenue, Costa Mesa, CA
$739,000
3 BEDROOMS
1 BATHROOMS [ 1 FULL ]
LISTING MLS ID: OC16018370
Listing Courtesy of: Trulia.com

Status: Make an Offer
2842 Chios Rd, Costa Mesa, CA 92626
$885,000
4 BEDROOMS
2 BATHROOMS [ 2 FULL ]
Listing Courtesy of: Zillow.com

Status: For Sale by Owner
2528 Back Bay Loop # 42, Costa Mesa, CA 92627
$650,000
3 BEDROOMS
3 BATHROOMS [ 3 FULL ]
Listing Courtesy of: Zillow.com

 
See the Full Costa Mesa CA Homes for Sale and Sold for January 2016 Market Report
 
 
What is Your Home Worth?

Search All Homes For Sale

Search All Costa Mesa Homes For Sale

Andres Mancilla
REALTOR
Coldwell Banker BEACHSIDE REALTORS
562-712-5330
andres.e.mancilla@gmail.com












 
Information valid as of February 2, 2016. Please contact us for the most current information and status of these properties.