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Showing posts with label Market Trends. Show all posts
Showing posts with label Market Trends. Show all posts

Breaking Down the Real Estate Market: No Crash in Sight



These are the reasons why we don’t expect the market to crash.


 

Today, we want to discuss the current state of the real estate market and address concerns about a possible crash. Many people are worried, given the rising interest rates and media coverage, and they are comparing it to the 2008 market crash. However, today’s market is very different from the one in 2008.


We currently have limited inventory; there simply aren't enough homes available to meet the population growth we've experienced in the past few decades. This scarcity is a key distinction for first-time homebuyers. In 2008, there was an excess of homes for sale, and obtaining a loan was relatively easy. Anyone could secure a loan without much scrutiny. This led to a situation where many people couldn't repay their loans, resulting in balloon payments and significant payment increases.

"There aren't enough homes available to meet the population growth we’ve experienced in the past decades."

Today, the lending environment is very different. Everyone has to qualify for their mortgages, and the type of financing available is more stringent. However, the primary factor propping up the real estate market currently is the lack of available homes, and there are two main reasons for this. 


Firstly, homeowners are hesitant to move because they have low interest rates and don't want to switch to higher rates in the current economic climate. Secondly, hedge funds are acquiring a significant number of homes, and it's projected that they may own 40% of the real estate market by 2030. This trend artificially reduces the inventory available for buyers.


Considering these factors, it's unlikely that the real estate market will crash unless there's a substantial increase in inventory, which doesn't seem probable given the current market conditions.


If you have any further questions or need more information on other topics, feel free to contact us via phone, text, or email. We are always happy to hear from you.


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Breaking News: The Real Estate Market’s Hidden Window of Opportunities



Here’s why the next 60 days is a crucial time for homebuyers.


 

I’m joined today by Amit Singh, a representative from Neo Mortgage. He’ll share with us his expert insights on what’s currently happening in the real estate market.


Amit believes that the market will be providing some of the greatest opportunities we've ever seen in the next 60 days. Economic data, particularly the forthcoming core CPI reports, indicate that inflation has likely peaked. We're expecting to see deflationary events soon, which is crucial given the rampant inflation that has led to a sharp increase in interest rates over the past year and a half.


This inflation has almost tripled interest rates in just 18 months, unfortunately resulting in a housing market teeming with pent-up demand with low inventory. However, this environment has also created significant opportunities. Despite the lack of inventory and high interest rates, people have managed to purchase homes at better price points and negotiate beneficial seller credits. These strategies have helped buyers secure better interest rates on their homes and improve their monthly payments.

"Now is the time to evaluate your options."

Due to the anticipation of inflation peaking, the next 60 to 90 days will offer a window of incredible opportunities for potential buyers. Those who have been waiting on the sidelines due to high interest rates will find this period particularly advantageous. The initial shock from home prices and interest rates is beginning to subside, opening up a range of opportunities. Over the next two months, buyers can secure homes at excellent price points and benefit from larger lender or seller credits.


However, this scenario will not last forever. Once interest rates start to decline dramatically, these opportunities will disappear. The market will witness a surge in competition, leading to a significant increase in home prices and demand. A large number of people who were previously unable to buy homes due to high prices or interest rates will reenter the market, and the competition will likely eliminate the current advantageous conditions.


If you are considering purchasing a home, now is the time to evaluate your options. We recommend meeting with a real estate professional to assess what you're comfortable with and what you can truly afford. Our team can provide a financial analysis to help you navigate the market and start building wealth effectively.


Feel free to reach out to us by phone, text, or email. We're here to assist you and look forward to speaking with you soon.




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Housing Market FAQ: Your Most Pressing Questions Answered



Answering the most common questions people are asking about this market.


 

Since the real estate market is so volatile, most people have a lot of questions. Are you one of those people? I have been getting a lot of questions lately, so I’m here to address the top three: 


1. Is the housing market going to crash? People have been wondering this for a while now, but I do not believe the market is going to crash anytime soon. Inventory is down, which is making it harder for people to find homes. However, demand is high, which keeps prices up as well. Therefore, the housing market won’t crash this year.


2. When will the market crash? Again, many people are wondering when this will happen, but I do not believe it will this year. The number of investors in the market has gone up by 18%, so there are experts that believe the market will go up in value. There may be a problem with supply and demand, but the biggest thing is that many people are looking for ways to invest their money that are better than the stock market or a savings account.

"There aren’t enough homes for the demand, which is why the market is a little out of control."

3. Why is the housing market so out of control? Homeowners have gained a lot of equity in the last few years as home prices have skyrocketed. Plus, they either bought or refinanced when interest rates were low, so they’re holding onto their low payments. Plus, there has been a building shortage, as there hasn’t been a surge of new construction since 2010. There aren’t enough homes for the demand, which is why the market is a little out of control. 


Those are the three most common questions I have been getting. If you have any other questions, feel free to reach out to me by phone call, text, or email. I look forward to speaking with you soon!





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Are We Facing a Recession?


2008 was an outlier because real estate can do well during a recession.


 

Today I’m joined by Dave Marzinke from Movement Mortgage to talk about whether we will be facing a recession in the near future.


Goldman Sachs and Merrill Lynch are saying that there is a 35% chance that we’ll see a recession next year. There are some indicators, like inflation, in the market that support this theory. When the Federal Reserve starts raising interest rates to get a handle on inflation, that's often a precursor to a recession as well. 


Many people think of the 2008 housing market crash when they hear the word recession. However, that was an anomaly and isn’t what normally happens during a recession. Historically, real estate has either performed well or above expectations during recessions because interest rates come down during those times. That helps with affordability. The economics are completely different than in 2008.


If you have any questions, give us a call, text, or email. We look forward to speaking to you.

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Location: Orange County, CA, USA

Millennials Are Making a Big Impact


I’d like to offer my congratulations to millennials out there. Here’s why.


I’d like to start today by congratulating all the millennials out there. It seems like you’re finally growing up. I recently read a survey that said that 60% of millennials are saving money nowadays, which is 50% more than there were in 2015. 47% of those people have at least $15,000 saved, which is fantastic.

Our typical stereotype of the “lazy millennial” is changing. They’re saving at a nearly identical rate to Generation X, while still trailing baby boomers (75%).

With the economy changing, new jobs and a low unemployment rate has resulted in people being more positive in general. Some stocks have doubled in price and we’ve seen some incredible highs on the Dow as well.

If you have enough saved to buy a home, I’d love to help out.

To all the millennials out there: keep doing what you’re doing and keep saving. If you have enough saved to buy a home, I’d love to help you out. Even if you don’t have the typical 6% to 10% for a down payment, there are programs out there to get you into a home for less.

If you have any questions for me in the meantime or if there is anything I can help you with, give me a call or send me an email. I would love to hear from you.
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Location: Orange County, CA, USA

What Market Trends Have We Been Seeing Lately?



As we head into the fall market, I’d like to talk to you a little bit about some market trends I’ve been noticing lately in Southern California. Quite a lot has changed lately.

Last year’s average home price was $614,000. This year, the average home price has risen to $641,000. This is a substantial 3.5% to 5% increased. The average mortgage payment has gone up as well, from $2,800 last year to $2,900 this year depending on the type of house.

As far as some of my preferred lenders are concerned, the interest rates are still absolutely phenomenal and near 3.5% in most cases. If you need to get pre-approved or just speak with a lender, I can recommend some great lenders to you. They will help you get the lowest price possible.

We have had about 6,600 homes listed on the market and have sold 2,700 of them. Right now, we have about 2.7 months of inventory available, putting us in a great seller’s market. Pending sales and closed sales are up as well.

The time to make a move is now.

Although we are in a seller’s market, homes are taking slightly longer to sell. We were seeing homes sell in around 42 days this summer, but right now they are taking an average of 67 days to sell. The market is starting to flatten out for fall.

For those of you looking to put your home on the market, you should act quickly. As we continue into the fall and winter season, it’s going to take longer and longer for homes to sell. If you are looking to sell, it’s important that you price your home slightly below or right at market value. The price gap between what people ask for and what they’re netting at closing is around $9,000.

The market may have slowed down a little bit, but it’s still a great time to buy or sell. If you have any questions or would like to take advantage of this market, give us a call or send us an email. We would love to hear from you!
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Location: Orange County, CA, USA
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