Don’t Fall for the Next Shocking Headlines About Home Prices
If you’re thinking of buying or selling a home, one of the biggest questions you have right now is probably: what’s happening with home prices? And it’s no surprise you don’t have the clarity you need on that topic. Part of the issue is how headlines are talking about prices.
They’re basing their negative news by comparing current stats to the last few years. But you can’t compare this year to the ‘unicorn’ years (when home prices reached record highs that were unsustainable). And as prices begin to normalize now, they’re talking about it like it’s a bad thing and making people fear what’s next. But the worst home price declines are already behind us. What we’re starting to see now is the return to more normal home price appreciation.
To help make home price trends easier to understand, let’s focus on what’s typical for the market and omit the last few years since they were anomalies.
Let’s start by talking about seasonality in real estate. In the housing market, there are predictable ebbs and flows that happen each year. Spring is the peak homebuying season when the market is most active. That activity is typically still strong in the summer but begins to wane as the cooler months approach. Home prices follow along with seasonality because prices appreciate most when something is in high demand.
That’s why, before the abnormal years we just experienced, there was a reliable long-term home price trend. The graph below uses data from Case-Shiller to show typical monthly home price movement from 1973 through 2021 (not adjusted, so you can see the seasonality):
As the data from the last 48 years shows, at the beginning of the year, home prices grow, but not as much as they do entering the spring and summer markets. That’s because the market is less active in January and February since fewer people move in the cooler months. As the market transitions into the peak homebuying season in the spring, activity ramps up, and home prices go up a lot more in response. Then, as fall and winter approach, activity eases again. Price growth slows, but still typically appreciates.
Why This Is So Important to Understand
In the coming months, as the housing market moves further into a more predictable seasonal rhythm, you’re going to see even more headlines that either get what’s happening with home prices wrong or, at the very least, are misleading. Those headlines might use a number of price terms, like:
- Appreciation: when prices increase.
- Deceleration of appreciation: when prices continue to appreciate, but at a slower or more moderate pace.
- Depreciation: when prices decrease.
They’re going to mistake the slowing home price growth (deceleration of appreciation) that’s typical of market seasonality in the fall and winter and think prices are falling (depreciation). Don’t let those headlines confuse you or spark fear. Instead, remember it’s normal to see a deceleration of appreciation, slowing home price growth, as the months go by.
Bottom Line
If you have questions about what’s happening with home prices in your area, connect with CA Real Estate Group. Call Christine Almarines at (714) 476-4637.
https://www.carealestategroup.com/monthly-newsletters/july-2023-newsletter/
keepingcurrentmatters.com | May 25, 2023
If you’re trying to decide if now’s the time to sell your house, here’s what you should know. The limited number of homes available right now gives you a big advantage. That’s because there are more buyers out there than there are homes for sale. And, with so few homes on the market, buyers will have fewer options, so you set yourself up to get the most eyes possible on your house.
Here’s what industry experts are saying about why selling now has its benefits:
Lawrence Yun, Chief Economist at the National Association of Realtors (NAR):
“Inventory levels are still at historic lows. Consequently, multiple offers are returning on a good number of properties.”
Selma Hepp, Chief Economist at CoreLogic:
“We have not seen the traditional uptick in new listings from existing homeowners, so undersupply of housing will continue to heighten market competition and put pressure on prices in most regions. Some markets are already heating up considerably, but price premiums that we saw last spring and summer are unlikely.”
Clare Trapasso, Executive News Editor at Realtor.com:
“Well-priced, move-in ready homes with curb appeal in desirable areas are still receiving multiple offers and selling for over the asking price in many parts of the country . . .”
Jeff Tucker, Senior Economist at Zillow:
“. . . sellers who price and market their home competitively shouldn’t have a problem finding a buyer.”
Bottom Line
If you’re thinking about selling your house, connect us at CA Real Estate Group and we can share the expert insights you need to make the best possible move today. Call Christine Almarines at 714-476-4637.
Jun 21, 2023
If you’re looking to buy or sell a home 🏠, you’ve probably heard the term “seller’s market,” but what is a seller’s market, and how does it affect your homebuying process? 🤔
A seller’s market often results in higher home prices and bidding wars on desirable properties. When you find a property you want to buy 😍, it’s best to have a CA Real Estate Group agent 💁🏻♀️ on your side to help you navigate the waters of the seller’s market.
Let’s take a closer look 🧐 at a seller’s market over the next few Wednesdays, see how it differs from a buyer’s market, and how we can help you through the current real estate trends. 📈📉📊
June 14, 2023
HYPE VERSUS DATA
From YouTube to TikTok to the backyard barbecue, there are plenty of narratives regarding the pending doom for housing that the underlying data does not support.
SELLERS!!!
It’s a hot market that we’re advising all Sellers take advantage of! ACT SOON and contact us to get your home sold for a great price!
Keeping Current Matters | May 26, 2023
Some Highlights
Orange County Housing Report:
Housing Insanity Returns
April 17, 2023
- The active listing inventory in the past couple of weeks decreased by 89 homes, down 4%, and now sits at 2,053, the second-lowest mid-March level since tracking began in 2004 behind last year. In March, 39% fewer homes came on the market compared to the 3-year average before COVID (2017 to 2019), 1,346 less. Last year, there were 1,732 homes on the market, 321 fewer homes, or 16% less. The 3-year average before COVID (2017 to 2019) was 5,780, or 182% more.
- Demand, the number of pending sales over the prior month, increased by 103 pending sales in the past two weeks, up 7%, and now totals 1,663. Last year, there were 2,241 pending sales, 35% more than today. The 3-year average before COVID (2017 to 2019) was 2,777, or 67% more.
- With the inventory falling and demand rising, the Expected Market Time, the number of days to sell all Orange County listings at the current buying pace, decreased from 41 to 37 days in the past couple of weeks, its lowest level since May of last year. It was 23 days last year, much stronger than today.
- For homes priced below $750,000, the Expected Market Time decreased from 32 to 27 days. This range represents 21% of the active inventory and 29% of demand.
- For homes priced between $750,000 and $1 million, the Expected Market Time decreased from 26 to 22 days. This range represents 16% of the active inventory and 26% of demand.
- For homes priced between $1 million to $1.25 million, the Expected Market Time decreased from 31 to 27 days. This range represents 10% of the active inventory and 13% of demand.
- For homes priced between $1.25 million to $1.5 million, the Expected Market Time decreased from 33 to 30 days. This range represents 9% of the active inventory and 11% of demand.
- For homes priced between $1.5 million to $2 million, the Expected Market Time decreased from 56 to 52 days. This range represents 13% of the active inventory and 9% of demand.
- For homes priced between $2 million and $4 million, the Expected Market Time in the past two weeks dropped from 76 to 72 days. For homes priced between $4 million and $6 million, the Expected Market Time increased from 210 to 212 days. For homes priced above $6 million, the Expected Market Time increased from 308 to 341 days.
- The luxury end, all homes above $2 million, account for 31% of the inventory and 11% of demand.
- Distressed homes, both short sales and foreclosures combined, comprised only 0.5% of all listings and 0.5% of demand. Only five foreclosures and five short sales are available today in Orange County, with ten total distressed homes on the active market, unchanged from two weeks ago. Last year there was one distressed home on the market, similar to today.
- There were 1,789 closed residential resales in March, 32% less than March 2022’s 2,645 closed sales. March marked a 41% increase compared to February 2023. The sales-to-list price ratio was 99.6% for all of Orange County. Foreclosures accounted for 0.1% of all closed sales, and there were no closed short sales. That means that 99.9% of all sales were good ol’ fashioned sellers with equity.
Copyright 2023- Steven Thomas, Reports On Housing – All Rights Reserved. This report may not be reproduced in whole or part without express written permission from the author.
Protect Your Identity When Buying a Home
Identity theft is a really serious problem for many Americans. The fallout from having your information stolen and misused can last for years. That’s why it’s crucial to protect both your personal and financial information when purchasing a home. Here are some steps you can take to safeguard yourself during the process.
Secure Personal Information
Keep any documentation that includes your social security number, birth date, driver’s license number, and financial account numbers in a secure place. When you do share, make sure they’re transmitted through an encrypted platform or delivered in person.
Look Out for Phishing Scams
Be cautious with unsolicited emails or phone calls asking for personal information. Never open any suspicious-looking email, even if it appears to be from your lender or title company. Always verify the identity of all phone callers.
Use Secure Websites
When searching for homes or mortgage information online, browse sites that start with “https” and have a padlock icon in the address bar, which indicates a safe connection.
Monitor Your Credit Report
Check for suspicious activity, such as unauthorized loans or accounts. Do this often, as identity thieves usually act quickly.
Know Who Has Access
Confirm who will have access to your information, in what setting they’ll see it and how it will be disposed of once it’s no longer needed.
Shred Sensitive Documents
After the home-buying process is complete, take it upon yourself to shred sensitive documents.
Buying a home is fun and exciting, but it’s important to stay vigilant with your personal information. A licensed real estate professional and reputable lender will be invaluable in providing financial protection and peace of mind.
Selling a Smart Home: What Stays and What Goes?
The global smart home market is expected to exceed $170 billion by 2025, according to Strategy Analytics. In the U.S. alone, 37% of households already owned one or more smart devices by 2020. So what do you do with all this smart tech when you sell your property?
Clearly identify what you intend to take with you to avoid any last-minute confusion that could jeopardize your deal. The rule of thumb says any smart tech that’s connected, mounted or nailed down stays with the house. Common examples include smart blinds, HVAC controls, exterior floodlights, and alarm systems. On the other hand, sellers typically take smaller, freestanding devices like smart speakers.
Before the closing date, sellers should wipe their digital account information and log out of all smart systems. As an extra kindness to their buyers, sellers could create a list of all smart items that will stay, including warranty information, age of the product, proof of purchase, names and model numbers, and instructions on how to do a factory reset.
Pros and Cons of Paying Cash for a Home
Even if you have enough cash to buy your house outright, it may not necessarily be the best decision for you. Consider the following pros and cons, then discuss your options with a qualified tax adviser or financial planner.
Pros
Making a cash offer greatly reduces the amount of paperwork (and fees) involved in buying a house and can save thousands of dollars in mortgage interest and closing costs. Also, owning a debt-free property can provide financial peace of mind.
Cons
Some buyers feel more comfortable keeping more of their assets liquid for greater flexibility or in case of emergency. Depending on your savings and investment income, you may prefer to take advantage of the tax deductions available on mortgage interest.
Stylish Home Tech: Where Function Meets Fashion
If it looks cool while keeping you cool, it must be stylish home tech.
Household devices and appliances that function well and have a sleek, modern design define stylish home tech. This includes products such as smart home systems, smart lighting, comprehensive entertainment packages, and appliances with advanced features and design.
Today’s sophisticated tech allows you to easily set up and operate various home elements. Lighting and window coverings can be controlled from a smartphone or tablet. Innovative TVs can stream content or respond to voice commands. Some front doors come equipped with motion-activated lights and a video doorbell. You can even buy a wall-mounted, Wi-Fi enabled air conditioner that’s disguised as framed artwork.
Modern kitchen appliances have certainly evolved to be both functional and chic, with enhancements like energy efficiency, quiet operation and touch controls. Many manufacturers also offer a variety of slick finishes, including fingerprint-proof stainless steel, shatterproof glass doors and panels that change colors to reflect the home’s design palette. Now that’s some trendy tech.
Get Ahead of Repairs Before Selling
You put your best foot forward for a job interview. Selling a house is no different. Instead of a stylish suit and top-notch grooming, your property will be dressed for success with a modest investment in these essential details.
- Make sure everything works, including garage doors and openers, locks, windows, hinges, light switches, toilets, faucets, and built-in kitchen appliances.
- Brighten dark rooms with fresh paint in light, neutral shades.
- Refinish or repair worn hardwood floors.
- You don’t need a full remodel to spruce up a kitchen or bath. Freshen paint colors, modernize hardware and lighting, and consider replacing dated countertops.
- Replace or paint the front door and add an attractive planter and new house numbers. Be sure exterior walkways, fencing and lawn are in tip-top shape.
- Give your home a deep cleaning before the first showing is scheduled.
 ©2023 The Personal Marketing Company. All rights reserved. Reproductions in any form, in part or in whole, are prohibited without written permission. If your property is currently listed for sale or lease, this is not intended as a solicitation of that listing. The material in this publication is for your information only and not intended to be used in lieu of seeking additional consumer or professional advice. All trademarked names or quotations are registered trademarks of their respective owners.
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KTLA.com | Dec 18, 2022
As housing and living costs remain unaffordable for many living in Los Angeles, new data shows plenty of residents are migrating to more affordable locales.
A new SmartAsset study shows the migration trend to more affordable cities has created a series of “boomtowns” across America.
These cities saw the largest increase in population, income and available housing over a five-year period from 2016-2021.
Three Southern California cities, in particular saw the largest growth — Menifee, Chino and Victorville.
Menifee
Located in Riverside County, the population in Menifee has increased by 20.21% to around 106,400 residents between 2016-2021. Workers in the city experienced an increase of over 42% in incomes. Housing availability has also boomed, rising by almost 20% over five years.
Residents enjoy the sparse suburban feel with plenty of local parks and outdoor activities. Menifee’s residents are mostly comprised of families and retired folks, according to Niche. Average home prices are $572,051, according to Zillow.
Chino
Chino ranked highest for its five-year housing and income growth among the winner’s list. The number of housing units increased by almost 30% while the median household income increased by around 42% to $97,473. Chino’s population is just under 93,000.
Located in San Bernardino County, locals say the Chino is a suburban town with easy access to dining, entertainment and plenty of outdoor parks. Its residents are a mix of families and young professionals. The median home price is $715,682 according to Zillow.
Victorville
The population in this San Bernardino County has grown by 11% over the past five years while housing units have increased by 15%. Local businesses have also increased by 12%, according to the study.
Locals say Victorville is a great place to raise a family, boasting low crime rates, great schools and affordable housing. The median home price is $415,547, according to Zillow. Its residents are a mix of young families and retirees.
Here are the Top Boomtowns in America in 2022 according to SmartAsset:
- Nampa, Idaho
- Meridian, Idaho
- Murfreesboro, Tennessee
- New Braunfels, Texas
- Fort Myers, Florida
- Conroe, Texas
- Menifee, California
- Pasco, Washington
- Lewisville, Texas
- Chino, California
- Port St. Lucie, Florida
- Rancho Cordova, California
- Victorville, California (Tie)
- Riverview, Florida (Tie)
- Homestead, Florida
To narrow down the final list, researchers analyzed data for 500 of the largest cities using seven metrics:
- Five-year population change
- Average yearly GDP growth
- Five-year growth in number of businesses
- Five-year change in number of housing units
- September 2022 unemployment rate
- One-year change in unemployment rate
- Five-year change in household income
Thinking of moving to a “boomtown”? Experts say timing is important to reap the most benefits.
“Moving to a boomtown at its earliest stages can be a great opportunity for entrepreneurs and investors, as there’s still plenty of room for growth,” said Edith Reads, senior editor at TradingPlatforms.“ And for those who are looking for a job, there are usually plenty of opportunities available in rapidly growing cities. However, if a city has already reached its peak, it may be too late to get in on the action. In this case, it may be wiser to wait until the city’s growth slows down before making the move. This way, you can avoid getting caught in the midst of a housing or job crunch.”
Check out SmartAsset’s full study of America’s Top Boomtowns in 2022.
