Keeping Current Matters | Jan 20, 2022

One key question that’s top of mind for homebuyers this year is: why is it so hard to find a house to buy? The truth is, we’re in the ultimate sellers’ market, so real estate is ultra-competitive for buyers right now. The number of buyers searching for a home greatly outweighs how many homes are available for sale.

While low inventory in the housing market isn’t new, it’s a challenge that continues to grow over time. Here’s a look at two reasons why today’s housing supply is low and what that means for you.

1. New Home Construction Fell Behind for Several Years

The graph below shows new home construction for single-family homes over the past five decades, including the long-term average for housing units completed. Builders exceeded that average during the housing bubble (shown in red on the graph). The result was an oversupply of homes on the market, so home values declined. That was one of the factors that led to the housing crash back in 2008.

Since then, the level of new home construction has fallen off. For the last 13 straight years, builders haven’t been able to construct enough homes to meet the historical average (as illustrated in green on the graph). That underbuilding left us with a multi-year inventory deficit going into the pandemic.

Buyers Want To Know: Why Is Housing Supply Still So Low? | MyKCM

2. The Pandemic’s Impact on the Housing Market

Then, when the pandemic hit, it fueled a renewed appreciation and focus on the meaning of home. Having a safe space to live, work, school, and exercise became even more important for Americans throughout the country. So, as mortgage rates dropped to at or below 3%, buyers eagerly entered the market looking to capitalize on those low rates to secure a home that would fulfill their changing needs. At the same time, sellers hesitated to put their houses on the market as concerns about the pandemic mounted.

The result? The number of homes available for sale dropped even further. A recent article from realtor.com explains:

Last month, the number of home listings dropped 26.8% compared with the same time a year earlier. This meant there were about 177,000 fewer homes listed in what’s already typically a slower month due to the holidays and colder weather. . . .”

What Does All of This Mean for You?

For a buyer, low inventory can be a challenge. You want to find the home of your dreams, and you don’t want to settle. But what if there just aren’t that many homes to choose from?

There is some good news. Experts are projecting more homes will soon become available thanks to sellers re-entering the market. Danielle Hale, Chief Economist at realtor.com, shares this hope, but offers perspective:

We expect that we’ll start to see a turnaround and inventory will stabilize and start to go up a little bit in 2022. . . . But that means we’re looking at inventory levels of roughly half of what we saw before the pandemic. For buyers, the market is likely to continue to move fast. If you see a home you like, you want to jump on it right away.

Basically, inventory is still low, even though more homes are coming. But you shouldn’t put your plans on hold because you’re waiting for those additional houses to hit the market.  Instead, stick with your search and persevere through today’s low inventory. You can find your next home if you’re patient and focused.

Remember your goals and why finding a home is so important. Those things should be the driving force behind your search. Share them with your agent and be clear about your priorities. Your trusted advisor is your greatest support as you navigate today’s low housing supply to find the home of your dreams.

Bottom Line

If you’re planning to buy this year, the key to success will be patience given today’s low inventory. Let’s connect to discuss what’s happening in our area, what homes are available, and why it’s still worthwhile to prioritize your home search today.  Call us today!

CA REAL ESTATE GROUP powered by Keller Williams Realty @carealestategroup

Christine Almarines @christine_almarines
Realtor DRE # 01412944
714-476-4637 | christine@carealestategroup.com

Michelle Kim @michellejeankim_homes
Realtor DRE # 01885912
714-253-7531 | michelle@carealestategroup.com

For more real estate tips, follow us on FB/IG @carealestategroup

 

By Realtor.com Creative Studio  |  Realtor.com

Top 12 Colors to Help Sell Your Home Fast

Painting the interior of a house that’s about to hit the market is a project with a twist—the colors you choose will need to strike that magic on-the-market balance between a blank slate and an inviting home where buyers can imagine themselves living. Sound intimidating? Here’s the good news: A fresh coat of paint always helps. According to real estate pros, paint is one of the quickest, easiest ways to make a space feel move-in ready. Here’s how to get it right, along with a dozen foolproof colors to try.

Versatile neutrals

Neutrals are a real estate professional’s go-tos for a reason. They’re livable, flexible, and universal. “I usually advise my clients to keep their color palette close to neutrals,” says Nicole Vidor, a Realtor® in New York’s Hudson Valley. “The current style is minimal with clean lines—white or neutral walls and light flooring, often stripped to raw wood or pickled with a white, semi-transparent stain.” To achieve this light and airy look, try:

  1. Pale Oak OC-20: A greige (gray/beige) that’s a warm alternative to pale gray
  2. Edgecomb Gray HC-173: A muted, earthy hue
  3. Classic Gray OC-23: A soft, subtle shade that’s light and refined

Warm whites

“More often than not I suggest white,” says Nicole. “Not only does it offer a clean, fresh feeling but it also allows the buyer to envision their own personal color palette.” With whites, it helps to choose a few different options and sample colors in your space to see what works.

“White takes in all of the surrounding color and light,” says Nicole. “A color that looked very white on the paint chart can look yellow on a wall depending on its base pigments, the lighting in the room, the exterior light source, and the floor color. All neutrals are very sensitive to their environments, inside and out.” That said, it’s hard to go wrong with one of Benjamin Moore’s most popular paint colors. A few to consider:

  1. Swiss Coffee OC-45: Warm without yellow undertones—perfect for sophisticated spaces
  2. White Dove OC-17: A bright white with just a bit of warmth to make rooms more inviting
  3. Simply White OC-117: A warm white that goes with almost any wood

Cool whites

Cool whites feel modern and work particularly well in urban environments. While buyers may not buy a home based on a paint color, if you choose something that stands out too much, they might decide not to buy it. “The majority of buyers are deeply affected by their first impression of a home,” explains Nicole. “More often than not, a bold color palette can deter a client from even considering a property.” Repaint any brightly-colored walls that might make a home feel dated.

  1. White Heron OC-75: A tranquil shade that pairs well with cool grays
  2. Calm OC-22: An off-white that’s great for serene spaces like bedrooms and bathrooms
  3. Chantilly Lace OC-65: A fresh, true white with no noticeable undertones

Beyond the basics

Every house has a different context, and the color that helps one home sell might not work in another. This is especially true when it comes to exteriors, which depend on the surrounding houses. “You should choose a color that’s copacetic with your neighbors,” Nicole explains. “Dark gray—nearly black—has been in fashion for the last several years. In some places it looks extremely elegant, and in other situations it can feel foreboding.” For a few inviting color options, try:

  1. Revere Pewter HC-172: A warm, welcoming light gray
  2. Coventry Gray HC-169: A classic American color from the historic collection
  3. Hale Navy HC-154: A dark, saturated shade that’s steeped in tradition

Consider quality

To make your property more desirable, invest in quality products. Agents often include branded appliance and paint names on listings to catch shoppers’ attention. “Brands can be very important,” says Nicole, “from refrigerators and stoves to windows and hardware.” Benjamin Moore paints are known for their timeless colors and long-lasting quality, and it often takes fewer cans to cover a room than other paint brands. You can even search for “Benjamin Moore” on real estate sites to find listings that mention paint brands in the property description. “Buyers are much more savvy now to stylish but cheap and shoddy products,” Nicole says. “The seller is better off investing a bit extra for quality.”

Keeping Current Matters | Dec 30, 2021

Selling your house is no simple task. And when you sell on your own – known as a FSBO (or For Sale by Owner) – you’re responsible for handling some of the more difficult aspects of the process without the expert guidance you need.

The 2021 Profile of Home Buyers and Sellers from the National Association of Realtors (NAR) surveys homeowners who recently sold their house on their own and asks what difficulties they faced. Those sellers say some of the biggest headaches are prepping their house for sale, pricing it right, and handling the required paperwork.

Working with an agent is the best way to ensure you have an expert on your side to guide you at every turn. Agents have the skills and knowledge that are essential to navigating each step with ease, efficiency, and accuracy. Here are just a few things a real estate agent will do to make sure you get the most out of your sale.

1. Make the Best First Impression

Selling your house requires a significant amount of time and effort. Doing it right takes expertise and an understanding of today’s buyers. Your agent knows the answers to common questions, such as:

Your time and money are important, and you don’t want to waste either one focusing on the wrong things. A real estate advisor relies on their experience to answer these questions and more, allowing you to make the right investments to prep your house before you list.

2. Maximize Your Buyer Pool – and Your Sale

Today, the average home is getting 3.6 offers per sale according to recent data from NAR. That’s great news if you’re planning to sell, since the more offers you receive, the more likely you are to sell your house in a bidding war, and for a higher price.

Real estate agents have an assortment of tools at their disposal, like social media followers and agency resources, that will ensure your house is viewed by the most buyers. Without access to these tools and your agent’s marketing expertise, your buyer pool – and your home’s selling potential – is limited.

3. Understand the Documentation, Including the Fine Print

Today, when a house is sold, more disclosures and regulations are mandatory, meaning the number of legal documents to juggle is growing. It’s hard to understand all the requirements and fine print (especially if you’re not an expert). That’s why your advisor is an invaluable guide.

Your agent knows exactly what needs to happen, what all the paperwork means, and can work through it efficiently. They’ll help you review the documentation and avoid any costly missteps that could happen if you tackle it on your own.

4. Act as Your Expert Negotiator

If you sell without an agent, you’ll also be solely responsible for all negotiations. That means you have to coordinate with:

Instead of going toe-to-toe with all these parties alone, lean on an expert. Your agent relies on experience and training to make the right moves throughout the negotiation. They’ll know what levers to pull, how to address each individual concern, and when you may want to get a second opinion. When you sell your house yourself, you’ll need to be prepared to have these conversations on your own.

5. Price It Right

Real estate professionals have the expertise to price your house accurately and competitively. To do so, they compare your house to recently sold homes in your area and factor in the current condition of your house. These factors are key to making sure your house is priced to move quickly and get you the maximum return on your investment.

When you sell as a FSBO, you’re operating without this advantage. That could cost you in the long run if you price your house too high or too low.

Bottom Line

There’s a lot that goes into selling your house, and it takes time, effort, and expertise to truly maximize your sale. Instead of tackling it alone, let’s connect to make sure you have an expert on your side.

CA REAL ESTATE GROUP powered by Keller Williams Realty @carealestategroup

Christine Almarines @christine_almarines
Realtor DRE # 01412944
714-476-4637 | christine@carealestategroup.com

Michelle Kim @michellejeankim_homes
Realtor DRE # 01885912
714-253-7531 | michelle@carealestategroup.com

For more real estate tips, follow us on FB/IG @carealestategroup

By Larissa Runklerealtor.comJan 28, 2022

Bathrooms are one of those functional spaces we tend to gloss over in our decor plans—barely even noticing them until they’re messy or in need of a good scrub-down.

But the bathrooms (or shall we say washrooms, which sounds infinitely fancier) that took over Instagram this week are anything but neglected.

Instead, these five trending bathroom looks offer a sophisticated respite from the typical blah bath decor. So if you need a bit of visual inspiration to kick things up a notch (or three), check out these unconventional washroom looks you’ll immediately want to steal.

1. Black bathroom

If you want to create a chic scene in your washroom, try an all-black look like this one from @miltonandking.

“Black bathrooms are all about drama and moodiness,” says designer Doreen Amico-Sorell, of Sorell Interiors. “They are especially popular in a powder room, which is often treated like a little jewel box, able to be adorned any way you like.”

Get the look: Embellish your washroom with this Yubi black palm trees wallpaper.

2. Disco ball chandelier

Soak in a tub and dream of dancing with an unforgettable statement chandelier like this disco-inspired one from @chelsgc.

“I’m in love with the disco ball chandelier,” says designer Maggie Clarke, of Maggie Clarke Interiors. “I just used one in a project to infuse femininity amongst other masculine and sharp-edged elements. In addition, this type of chandelier serves as a beautiful focal point for a bathroom.”

Get the look: Bring some fun 1970s energy into your bathroom with a cabaret chrome pendant.

3. Popsicle stick tile

This tile design is one of the best we’ve seen in a while. Pretty in pink and elegant in its own right, the popsicle stick tile from @chandeliers.and.champagne is one to consider for your next bathroom upgrade.

“This is such a fun way to add a pop of color and pattern in an otherwise utilitarian space,” says Clarke. “Bathrooms have a lot of cold elements such as floor tile, shower doors, and mirrors. Adding a curved shape creates beautiful balance. How fun would this be in a kids bathroom?”

Get the look: Bring on the beautiful balance with this Axis ceramic wall tile.

4. Contrasting wallpapers

Have a wallpaper you simply adore? Then why not try it out in every color—or at least in two shades to create a contrasting design like this one from @divinesavages.

“Contrast is such a beautiful way to add interest to a wall,” says Clarke. “Much like throw pillows, wallpapers don’t have to be ‘twins’—just make sure they’re ‘sisters.’ In other words, while contrasting wallpapers need to flow together—they don’t necessarily need to match perfectly.”

Get the look: Add some eye candy to your washroom with two different shades of this Tempaper feather flock wallpaper.

5. Concrete basin


Concrete has been everywhere in design lately—from our patio furniture to entryway tables—and now the material is creating a brand-new look for our bathroom sinks, as seen in this post from @meiraustralia.

“Concrete, when used to create a sink, can really become that statement piece,” says Amico-Sorell. “So simple, yet available in a variety of shapes and sizes. The material is also versatile enough to pair well with modern or rustic decor.”

 

Keeping Current Matters  |  Jan 3, 2022

As you set out on your homebuying journey, you likely have a plan in place, and you’re working on saving for your purchase. But do you know how much you actually need for your down payment?

If you think you have to put 20% down, you may have set your goal based on a common misconception. Freddie Mac says:

“The most damaging down payment myth—since it stops the homebuying process before it can start—is the belief that 20% is necessary.”

Unless specified by your loan type or lender, it’s typically not required to put 20% down. According to the Profile of Home Buyers and Sellers from the National Association of Realtors (NAR), the median down payment hasn’t been over 20% since 2005. It may sound surprising, but today, that number is only 13%. And it’s even lower for first-time homebuyers, whose median down payment is only 7% (see graph below):

How Much Do You Need for Your Down Payment? | MyKCM

What Does This Mean for You?

While a down payment of 20% or more does have benefits, the typical buyer is putting far less down. That’s good news for you because it means you could be closer to your homebuying dream than you realize.

If you’re interested in learning more about low down payment options, there are several places to go. There are programs for qualified buyers with down payments as low as 3.5%. There are also options like VA loans and USDA loans with no down payment requirements for qualified applicants.

To understand your options, you need to do your homework. If you’re interested in learning more about down payment assistance programs, information is available through sites like downpaymentresource.com. Be sure to also work with a real estate advisor from the start to learn what you may qualify for in the homebuying process.

Bottom Line

Remember: a 20% down payment isn’t always required. If you want to purchase a home this year, let’s connect to start the conversation and explore your down payment options.

You can throw a legendary Super Bowl party—even when you’re only watching for the commercials. Here’s what to do!

Every editorial product is independently selected, though we may be compensated or receive an affiliate commission if you buy something through our links. Ratings and prices are accurate and items are in stock as of time of publication.

It seems that the best parties in the winter all revolve around football. Even if you don’t love sports, fear not. Throwing a Super Bowl party can be just as fun for the host as it is for sports fans. Stock up on tailgate snacks and slammin’ Super Bowl cocktails and let’s get going!

Cooler of beerBRIANNA GRIEPENTROG/TASTE OF HOME

Bring on the Drinks

Football wouldn’t be a great American sport without a great American beverage. Before the party, snag a local beer from the cities of the teams competing or pick up one of our favorite cheap beer brands for your shindig. If they’re not into beer, pick a signature cocktail for each team based on their city, mascot or team colors. Mix up a pitcher of each drink ahead of time with a little splash of food coloring to match each team’s jerseys.

Buffalo Chicken Dip Exps Ft21 34952 F 0115 1TASTE OF HOME

Do a Dip

Cheesy dips are a staple of any legendary tailgate, and a Super Bowl party is no different. Look for a few creative recipes and choose one that is cheesy, one that is meaty, one that is spicy and one that is vegan to appease all the different taste preferences of your group. Look to these dip recipes for inspiration.

2021 Super Bowl Ecomm Via Etsy.com 2VIA PROPARTYPLANNER/ETSY.COM

Play Some Games

Keep the competition alive with adult party games, like team and city trivia or football bingo. If your guests are more into the ads than the game, this Super Bowl commercial bingo will be sure to bring on some fun. Bake some football-shaped cookies to hand out as prizes.

Super bowl snack stadium TASTE OF HOME

Build a Snack Stadium

To be the envy of all your friends (and the star of their Instagram stories) build yourself a snack stadium. Fill a few cardboard boxes or aluminum pans with all your favorite snacks (including some of these healthy Super Bowl recipes, for a well-balanced selection). Make a field out of a frosted cake and place it in the center. Learn how to build a snack stadium with our step-by-step guide.

Astroterf Football Coaster VIA MERCURIALCREATIONS2/ETSY.COM

Set the Scene

Make your guests feel like they’re watching the game from the sidelines with plenty of creative decorations. From AstroTurf coasters to football drink stirrers to a festive concession stand sign, decorating for your party can be just as fun as the party itself. Decorate one half of the living room with one team’s colors, and the other half of the living room with the other team’s colors. Your guests can choose where they want to sit and cheer on their favorite team.

Hot Wings Exps Ft19 5186 F 0813 1 2TASTE OF HOME

Wing It

The staple of any great sports viewing party is a tray of sticky, sweet and tangy chicken wings. Prepare a range of flavors from extra spicy to sweet and mild and have a few dipping sauces (like ranch or blue cheese dressing) on the side. Wings are the perfect finger food, but be sure to have plenty of cocktail napkins ready for these fall off the bone, finger-licking goods!

Ucanbe Athena Face Body Paint Oil PaletteVIA AMAZON.COM

Show Your Spirit

Throw a competition to see who has the most (and most creative) team spirit in the group. Have a face painting kit at the ready with some colorful streamers and spray on hair dye. Challenge your friends to create the craziest costumes and have a makeshift catwalk for them to show off their team spirit.

Football Cake Pops Exps Hca19 136442 B09 11 8bTASTE OF HOME

Pick a Winning Dessert

What better way to wash down all those wings and beers than with sweet and decadent Super Bowl desserts! Help ease the pain for the losing team with a crowd-pleasing classic like caramel brownies or ice cream and cookie pie. Even if their team lost the game, we bet your guests will leave with a full belly and happy heart.

I Just Hope Both Teams Have FunVIA NINETY5PRINTS/ETSY.COM

Hand Out Swag Bags

To help your guests feel extra special, prepare swag bags as a parting gift. Fill your football treat bags with a few festive football cookies, candies, Gatorade, funny sweatshirt and a custom Super Bowl ’22 pint glass. They’ll be tickled you went the extra mile for them.

Laura is a New York-based freelance food writer with a degree in Culinary Arts from the Institute of Culinary Education and a degree in Journalism from Penn State. Her work has appeared in Taste of Home, Chowhound, the Culture Trip and Patch.

😟 Are you worried that you might be facing foreclosure? If you haven’t taken advantage of the forbearance period, it may be time to research and understand your options. It starts with knowing what foreclosure is.

❓ To find out what your house is worth in today’s market, go to >> QuickMarketEval.com << and we’ll respond right away! We’ll be able to give you an estimate of what your house could sell for based on recent sales of similar homes in your area. Since home prices are still appreciating, you may be able to sell your house to avoid foreclosure. If you’re a homeowner facing hardship, let’s connect to explore your options and see if you can sell your house to avoid foreclosure.

 

📞 Call us today! CA REAL ESTATE GROUP powered by Keller Williams Realty

👩 Christine Almarines @carealestategroup
Realtor DRE # 01412944
714-476-4637 | christine@carealestategroup.com

👩 Michelle Kim @michellejeankim_homes
Realtor DRE # 01885912
714-253-7531 | michelle@carealestategroup.com

For more real estate tips, follow us on FB/IG @carealestategroup

By Jennifer Kelly Geddes | Realtor.com | Jan 3, 2022

If you hate digging around crammed kitchen cupboards to find the right pot or pan come dinnertime, a hanging pot rack could change your life. Really.

Hanging pot racks are a major space-saver in a kitchen, freeing up cupboard room while also keeping your most-used items—your cookware—easily viewable and accessible. Just reach up, grab one, and you’re good to go!

Still, before you jump into the pot rack way of life, you should assess how much you like to cook and how often you actually do so. If your meal planning routine consists of spaghetti on Monday and then six days of takeout, you probably won’t get much use out of this kitchen feature.

You also need to allocate enough space—and the right spot—for a pot rack. Choose wrong, and it could be more of a headache than it’s worth.

So before you add to cart, here are some questions to ponder, as well as a rundown of the various pot rack styles available.

The best place to hang a pot rack

Photo by Timeless Kitchen Cabinetry 

Most kitchens only sport a single window or two, so don’t block the only natural light you get by hanging your pot rack here. You’ll also want to avoid hanging a pot rack over the stovetop, because this is a recipe for all kinds of grime.

“It may seem convenient to put a pot rack over the stove, but doing so can cause grease to build up on your cookware,” says Andrea Correale of Elegant Affairs Caterers.

One of the best places for a pot rack is over a kitchen island. Or if you don’t have an island, hang the rack over the portion of the countertop where you prep food.

Height is another variable you’ll want to get right. Make sure that the pots are low enough to be within easy reach, and won’t require you to climb up on a chair every time you boil eggs.

Still, the rack should also be high enough not to cause head bonks or obstruct your view.

What to hang on a pot rack

Photo by Farm Fresh Therapy

Pot racks aren’t just a way to save cupboard space, but are also an excellent opportunity to highlight your collection.

“Use a rack to show off your more stylish cookware in an elegant, creative way that matches the rest of your kitchen decor,” says Correale.

You could match a stainless-steel rack with your stainless fixtures or appliances, or install a rack made from copper piping to match tones in your cabinets.

Photo by Krieger + Associates Architects, Inc.

That said, make sure the bottoms of your pots and pans are super clean, or you really shouldn’t hang them up, says Darla DeMorrow of HeartWork Organizing. No one wants to be faced with scratched or sticky pot bottoms every time they enter the kitchen.

Photo by Mike Smith / Artistic Kitchens 

Correale also warns “not to overload a pot rack, since laden racks can make a kitchen look crowded, and too many pots may be too heavy for the hooks to manage.”

If you never use that 12-inch egg poacher, why is it getting prime real estate on your rack? Save this hanging device for everyday pots and pans you constantly reach for, like the little guy that holds two fried eggs, the oatmeal pot, or your trusty cast-iron skillet. Occasional-use items should be stashed in the pantry (we’re looking at you, turkey roasting pan).

Pot rack styles to consider

Rectangular, circular, metal pipes, a wooden board with simple hooks, and more—all are worthy pot rack shapes and materials. Here are some different versions, as well as the pros and cons of each.

Brushed stainless steel

Twelve hooks and a lifetime guarantee!

(Bed, Bath & Beyond)

Not only can you dangle your cookware from this attractive, brushed stainless-steel rack, but you can place cookbooks and lids on the upper shelf ($120, Bed, Bath & Beyond).

Half-circle bronze rack

This pick also comes in polished copper or stainless steel

(Amazon)

An oil-rubbed bronze option from Cuisinart looks classy and professional, so you know it can handle your old skillets. And the six hooks slide around the semicircle, making it easy to grab the pan you need ($60, Amazon).

Wooden ceiling rack

Birch wood and steel combine to create a strong rack

(Wayfair)

An open-grid rack like this one offers lots of ways to display your pots, and the top shelf is available to hold those lesser-used pans. This product also comes with extra hooks, so you can sneak in a few more ($81, Wayfair).

Wall-mount rail

Order two of these so you can also display utensils.

(Wayfair)

Saving space—and money? This easy-to-mount wall rack has room for 10 pots and supports up to 25 pounds of weight ($24, Wayfair).

Pegboard

Photo by CG Allan Interior Architecture + Design LLC 

Or go for the classic Julia Child style: a pegboard. Child was famous for her large board, which featured the outlines of every pot she owned, so she knew where to hang them when not in use.

“A pegboard is an underutilized hanging tool, and it makes sense in smaller kitchens or ones with empty wall space,” says DeMorrow.

Standing pot rack

It’s convenient, but it does need assembling.

(Wayfair)

Not every pot rack needs to be suspended. There are versions, like this one, that sit on the floor against a wall or tuck into corners, too ($340, Wayfair). Correale favors the standing type, since, he says, “It’s easier to reach and clean and you can move it around the kitchen as you please.”

Free-standing pot racks also seem sturdier since they have little shelves for each item, which means you don’t have to worry so much about how heavy your pots are, she adds.

 

Keeping Current Matters | Jan 4, 2022

Are you one of the many renters thinking about where you’ll live the next time your lease is up? Before you decide whether to look for a new house or another apartment, it’s important to understand the true costs of renting in 2022.

As a renter, you should know rents have been rising since 1988 (see graph below):

Avoid the Rental Trap in 2022 | MyKCM

In 2021, rents grew dramatically. According to ApartmentList.com, since January 2021:

. . . the national median rent has increased by a staggering 17.8 percent. To put that in context, rent growth from January to November averaged just 2.6 percent in the pre-pandemic years from 2017-2019.”

That increase in 2021 was far greater than the typical rent increases we’ve seen in recent years. In other words – rents are rising fast. And the 2022 National Housing Forecast from realtor.com projects prices for vacant units will continue to increase this year:

“In 2022, we expect this trend will continue and fuel rent growth. At a national level, we forecast rent growth of 7.1% in the next 12 months, somewhat ahead of home price growth . . .”

That means, if you’re planning to move into a different rental this year, you’ll likely pay far more than you have in years past.

Homeownership Provides an Alternative to Rising Rents

If you’re a renter facing rising rental costs, you might wonder what alternatives you have. If so, consider homeownership. One of the many benefits of homeownership is it provides a stable monthly cost you can lock in for the duration of your loan.

As Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), says:

“. . . fast-rising rents and increasing consumer prices, may have some prospective buyers seeking the protection of a fixed, consistent mortgage payment.”

If you’re planning to make a move this year, locking in your monthly housing costs for 15-30 years can be a major benefit. You’ll avoid wondering if you’ll need to adjust your budget to account for annual increases.

Homeowners also enjoy the added benefit of home equity, which has grown substantially right now. In fact, the latest Homeowner Equity Insight report from CoreLogic shows the average homeowner gained $56,700 in equity over the last 12 months. As a renter, your rent payment only covers the cost of your dwelling. When you pay your mortgage, you grow your wealth through the forced savings that is your home equity.

Bottom Line

If you’re thinking of renting this year, it’s important to keep in mind the true costs you’ll face. Let’s connect so you can see how you can begin your journey to homeownership today.  Call us today!

CHRISTINE ALMARINES
714-476-4637 | @carealestategroup.com
christine@carealestategroup.com
Realtor DRE 01412944

MICHELLE KIM
714.253.7531 | @michellejeankim_homes
michelle@carealestategroup.com
Realtor DRE 01885912

CA Real Estate Group | Keller Williams Realty Anaheim Hills/Yorba Linda

Blog Source: The Every Girl

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