Real Estate Blog

Prospective buyers and sellers constantly ask when is it the right time to buy or sell. It is now.

THE Right Time: With low interest rates and a surge in demand, it is a good time for both buyers and sellers to make a move.

When is “the” best time to make a move? For prospective buyers and sellers, the current housing conditions and trends point to NOW. How can it be both an excellent time to buy and sell at the very same time? For buyers, it is all about interest rates. For sellers, it is all about top dollar and cashing in on this year’s consistent, growing demand. 

At the end of 2018, prognosticators, economic experts, and major financial institutions were all forecasting interest rates anywhere from 5.25% to 6% in 2019. That seemed more

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Many buyers are sitting on the fence waiting for interest rates to fall, but don’t know when to cash in their chips.

Gambling on Rates: Interest rates have fallen to 4.25%, the lowest level in over a year.

No matter what your age, or what kind of music you like, everybody has listened to and knows the lyrics to Kenny Roger’s “The Gambler.” “You’ve got to know when to hold ‘em. Know when to fold ‘em. Know when to walk away. And know when to run.” It is a song about a young man who stumbles upon gambling advice from a seasoned, old, veteran gambler “on a train bound for nowhere.”

 

So many potential buyers are just like the young gambler, they simply don’t know when they should walk away from the fence they are sitting on and cash in their

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Not only have the clocks changed, so has the housing market.

The Spring Market: The best conditions to sell a home are right now.

It is that time of the year again. The hills are a dazzling green. Trees are beginning to bud new leaves. Flowers are opening their petals for the first time. Hummingbirds are feeding on the sweet nectar from birds-of-paradise. The season is changing and so is the housing market.

Housing has been accelerating all year and is officially moving at full speed. It took a while to ramp up, starting the year with an Expected Market Time of 140 days, a slight Buyer’s Market. [The Expected Market Time is the amount of time it would take for a home that comes on the market today to open up escrow down the road]. The market

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Ever since the Great Recession, far fewer homeowners have been selling their homes annually, a trend that is not going away.

Homeowners across the nation watched the housing market take a pounding during the Great Recession as their equity vanished in a blink. Many lost their homes to short sales or foreclosures. Everybody either personally got stung by the correction or knew of somebody who did. As a result, a new trend emerged to avoid a lobster red burn in the future: homeowners stay in their homes a lot longer. There are far fewer homeowners who opt to sell every year. Even with record home values, the trend continues.

The lack of supply and years of red-hot demand, juiced by historically low interest rates, has resulted in homes

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The window of opportunity to take advantage of the Summer Market is already beginning to close.

Summer is here! It is the season of longer days, plenty of Southern California sunshine, beckoning, sandy beaches, and refreshing dips in the pool. With summer comes all of its distractions. There are also family vacations, Disneyland, California Adventure, Knott’s Berry Farm, Magic Mountain, LEGOLAND, Raging Waters, the Discovery Science Center, Sea World, and the San Diego Zoo.

The best time of the year to sell a home, the Spring Market, is officially in the rearview mirror. It is now the Summer Market, the second best time of the year to sell a home. For some, buying a home takes a back seat to all of the family fun. Many will still purchase, but

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Every year it is the same thing. Multiple open house directional arrows are scattered on the corners of busy intersections. More and more FOR SALE signs are popping up in neighborhoods. There are not quite as many buyer showings as there were only a few weeks ago. The word from the real estate trenches is that it is not as busy and homes are not flying off the shelves as they did before. Sellers are growing concerned. What is going on? Why the sudden shift? It is called SUMMER.

The Summer Market begins with the completion of the school year. It is the season of end of the year school concerts, theatrical plays, AP testing, and final exams. It is the season of caps and gowns, commencement speeches, diplomas, and graduations parties. College kids

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Trends are developing which demonstrate that the six-year housing run is beginning to cool.

Headlines are the same across the country: there are not enough homes on the market and buyers are having an extremely difficult time finding a home It has been a supply and demand issue for more than six years now, dating back to 2012. The story has not changed much for quite some time; that is, until now.

Now that a third of the year is in the rearview mirror, noticeable cracks have appeared that illustrate a cooling market. It is not as if housing has suddenly tilted in favor of buyers. No, there are still multiple offers and plenty of homes flying off the market and into escrow just moments after the FOR SALE sign is pounded into the front yard.

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A sudden spike in the inventory is an ominous sign for sellers to approach the market carefully. 

An Inventory Spike: In the past two weeks, the active inventory had its largest increase since July 2013.

The script for the Orange County housing market has been the same for quite some time now. The year starts with very few homes on the market. The inventory rises slowly, peaking sometime during the summer. The long-term average for the active listing inventory is 8,000 homes; yet, it cannot even hit that level for a day, falling astonishingly short year after year. The headlines have been the same: “Not Enough Homes on the Market” and “Buyers are Tripping Over Themselves to Purchase.” 

Suddenly, something has changed. More homes are coming on

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 Good Afternoon!

The lower end of the housing market is not only disappearing, it is impacting pending and closed sales. 

Vanishing Lower Ranges: A mind-blowing 15% fewer homes have come on the market below $750,000 so far this year compared to 2017.

The market has been blistering hot for years now. For homes priced below $750,000, it has been a hot seller’s market (an expected market time less than 60-days) since October 2015. Home prices have appreciated dramatically for six solid years. As a result, there are only a handful of detached homes priced below $500,000 today, 55 to be precise, or 1% of the active listing inventory. Back in January 2012, there were 1,806, 22% of the active inventory. Detached homes below $500,000 have essentially

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 Orange County Housing Report:  Wait and Afford Less

With rising interest rates, purchasing power drops for buyers considerably the longer they wait.

 Purchasing Power: An increase in interest rates by 1% translates to an 11% drop in the home a buyer is able to afford.

For the past several years, experts and prognosticators across the country had been calling for increasing interest rates. Yet, it never really materialized. To many it was reminiscent of Chicken Little’s, “THE SKY IS FALLING!!” Sure interest rates had their ups and downs, but, in the end, they consistently dropped back down to historical lows, below 4%. That is, until this year.

With the election of President Trump in November 2016, interest rates rose significantly,

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