Monthly Archives: February 2018

Low Inventory Pushes Home Prices Higher

 

According to CoreLogic’s latest Home Price Index, prices appreciated by 6.9% year-over-year from December 2016 to December 2017 on a national level. This marks the fifth month in a row with at least a 6.9% increase.

Dr. Frank Nothaft, Chief Economist for CoreLogic, gave insight into the reason behind the large appreciation,

“The number of homes for sale has remained very low. Job growth lowered the unemployment rate to 4.1 percent by year’s end, the lowest level in 17 years. Rising income and consumer confidence has increased the number of prospective homebuyers. The net result of rising demand and limited for-sale inventory is a continued appreciation in home prices.”

This is great news for homeowners who have gained nearly $15,000 in equity (on average) in their homes over the last year! Those homeowners who had been on the fence as to whether or not to sell will be pleasantly surprised to find out that they now have an even larger profit to help cover a down payment on their dream homes.

As we near the traditionally busy spring buyers season, there is still hope for buyers as mortgage rates remain low compared to recent decades. The report also predicted that home price appreciation will slow slightly, rising by 4.3% by this time next year.

Bottom Line
If you are looking to enter the housing market, as either a buyer or a seller, contact us and we can explain you exactly what’s going on in your neighborhood and discuss your options!

 

Ady Simion Call/Text at (626) 607-8652 or email me at Ady@AdySimion.com

Click here…to check your home value in seconds!

Click here…to search great deals, foreclosures and short sales in your area.

 

Where Are Mortgage Interest Rates Headed in 2018?

The interest rate you pay on your home mortgage has a direct impact on your monthly payment. The higher the rate the greater the payment will be. That is why it is important to know where rates are headed when deciding to start your home search.

Above is a chart created using Freddie Mac’s U.S. Economic & Housing Marketing Outlook. As you can see, interest rates are projected to increase steadily over the course of the next 12 months.

How Will This Impact Your Mortgage Payment?
Depending on the amount of the loan that you secure, a half of a percent (.5%) increase in interest rate can increase your monthly mortgage payment significantly.

According to CoreLogic’s latest Home Price Index, national home prices have appreciated 7.0% from this time last year and are predicted to be 4.2% higher next year.

If both the predictions of home price and interest rate increases become reality, families would wind up paying considerably more for their next home.

Bottom Line
Even a small increase in interest rate can impact your family’s wealth. Call us to evaluate your ability to purchase your dream home.

 

Ady Simion Call/Text at (626) 607-8652 or email me at Ady@AdySimion.com

Click here…to check your home value in seconds!

Click here…to search great deals, foreclosures and short sales in your area.

 

Villa Corona New Listing in Pasadena

Call us to see this property and other listings available online. We also have an exclusive list of properties not available online, contact us for more info!

Ady Simion Call/Text at (626) 607-8652 or email me at Ady@AdySimion.com

Click here…to check your home value in seconds!

Click here…to search great deals, foreclosures and short sales in your area.

Bidding Wars Abound… How Long Will They Continue?

Just like with any product or service, the law of supply and demand impacts home prices. Any time that there is less supply than the market demands, prices increase.

In many areas of the country, the supply of homes for sale in the starter and trade-up home markets is so low that bidding wars have ensued, and the busy spring-buying season is just around the corner.

CoreLogic recently conducted an analysis on national home prices at the time of sale for their January 2018 MarketPulse Report and found that a third of homes sold for at least list price.

“The share selling above list price was almost three times the trough in January 2008 and represented more than one-fifth of total sales.”

Many markets in the western part of the country and around major cities are experiencing higher shares of homes selling above list price.

“San Francisco had the largest share of homes—76 percent—that sold for at least the list price, and Seattle and Los Angeles followed with 63 and 51 percent, respectively. Miami had the lowest share—16 percent—of homes selling at or above the list price.”

Increased demand during the spring and summer months, the traditionally busier seasons for real estate, will no doubt influence how many homes continue to sell over list price.

This should not be seen by sellers as permission to overprice their homes, though. Buyers are becoming more and more educated, especially those who have been searching for their dream homes for a while now while waiting for new inventory to come to market.

Realtor.com gives this advice:

“Aim to price your property at or just slightly below the going rate. Today’s buyers are highly informed, so if they sense they’re getting a deal, they’re likely to bid up a property that’s slightly underpriced, especially in areas with low inventory.”

Bottom Line
Without a large wave of new listings coming to market, buyers will continue competing with each other for the homes that are available. If you are thinking of selling your home, now may be the time to do so before more competition comes this spring. Contact us to explore your options and help you determine the demand for your house in your area.

 

Ady Simion Call/Text at (626) 607-8652 or email me at Ady@AdySimion.com

Click here…to check your home value in seconds!

Click here…to search great deals, foreclosures and short sales in your area.

 

Take a Look Behind the Scene at my Office

Contact us if you have any question about Real Estate. Consultations are free!!! Thanks

Ady Simion Call/Text at (626) 607-8652 or email me at Ady@AdySimion.com

Click here…to check your home value in seconds!

Click here…to search great deals, foreclosures and short sales in your area.

 

The New Tax Code Video

 

Very Important info on the New Tax Law and the impact on Real Estate


Disclaimer: This guide is not meant to be a resource for tax advice but instead a resource for basic information concerning only certain aspects of the new tax code and how they may impact the real estate market. You should get tax advice from your accountant or tax preparer who will explain how the entire tax code will affect your personal return.


This information comes immediately after the new tax code became law. Some of the information may be revised as the analysis of the new law evolves.

When the tax code was originally being overhauled by the House and the Senate, there were three major proposals being considered that would have substantially impacted the residential real estate market:

♦ Changing the requirements for the exclusion of gain on the sale of a principal residence

♦ The reduction on the limit of the Mortgage Interest Deduction (MID)

♦ The elimination of the State and Local Tax deduction (SALT) which includes property taxes

Let’s look how the tax code has evolved from the original proposal, and decipher what impact experts believe it may have on the housing market.

1. Exclusion of gain on sale of a principal residence

Original Proposal: Owners would need to live in their house for at least 5 out of the last 8 years to claim this exemption. Under the former tax framework, a typical owner, who has lived in their house for at least 2 years out of the last 5 years, would be able to exclude the first $250,000 of gains if filing single or the first $500,000 if filing jointly.

The New Tax Code: No change. The “at least 2 years out of the last 5 years” requirement is unchanged.

Impact on the Market: None.

2. Mortgage Interest Deduction

Original Proposal: Reduce the limit on the mortgage interest deduction (MID) amount from $1,000,000 to $500,000.

The New Tax Code: Reduces limit on deductible mortgage debt to $750,000 for new loans taken out after 12/14/17. Current loans up to $1 million are grandfathered.

Impact on the Market: Assuming a 20% down payment, this reduction in the MID will impact buyers that are purchasing a home between the prices of $938,000 and $1,250,000. Any home under the lower price is still covered and any home over the higher price was not covered under the former tax code either.

What does that mean to the market? Experts disagree.

Calculated Risk’s Bill McBride:

“I think the impact of reducing the MID from a maximum of $1 million in mortgage debt to $750 thousand in mortgage debt will have very little impact on the housing market.”

On the other hand, Capital Economics claims:

“The impact on expensive homes could be detrimental, with a limit on the mortgage interest deduction raising taxes for those that itemize.”

3. State and Local Taxes (SALT)

Original Proposal: The elimination of the state and local tax deduction (which includes property taxes).

The New Tax Code: Allows an itemized deduction of up to $10,000 for the total of state and local property taxes and income or sales taxes.

Impact on the Market: Most experts agree that higher taxed regions will be impacted as homeowners in those communities now have a cap on these deductions.

Calculated Risk’s Bill McBride stated:

“SALT will have an impact on housing in some areas. Some people might choose to live in one state over another (if they have a choice), based on taxation. This could impact demand in certain states – especially for the middle and upper-middle class homeowners.”

Mark Zandi of Moody’s Analytics said:

“The impact on house prices is much greater for higher-priced homes, especially in parts of the country where incomes are higher and there are thus a disproportionate number of itemizers, and where homeowners have big mortgages and property tax bills.”

What will be the overall impact on the housing market?

For most of the country, the new tax code will not have a negative impact on the market. As Capital Economics reports:

“Given most households will see an overall tax cut, and potential buyers are likely to put that saving towards their home, we doubt it will have a significant detrimental impact on the housing market.”

There is also no doubt that some higher priced, higher taxed regions will be affected more than others. However, most experts agree that other portions of the tax code will favor the high-end buyer and seller, and this might mitigate many concerns. McBride explains:

“The corporate tax cuts (and other tax cuts) will mostly benefit the wealthy, and this will be a positive for high end real estate.”

What does this all mean to you?

To know for sure, you should sit with your accountant or financial planner and explore how all the aspects of the new code will impact your family.

Most families consider homeownership an essential part of the American Dream, and don’t purchase a home based solely on the tax advantages. The main reasons they buy a home are personal (they just got married, they are looking for a good place to raise children, they want to be near friends and family, they want to better enjoy their retirement, etc.). This will never change.

Looking at the new tax code, Mr. McBride’s opinion makes the most sense:

“There will be some negative impact based on SALT, but overall the impact of these policy changes on housing will be minimal.”

 

Ady Simion Call/Text at (626) 607-8652 or email me at Ady@AdySimion.com

Click here…to check your home value in seconds!

Click here…to search great deals, foreclosures and short sales in your area.

Click here… for Home Buyer Secrets video and PDF download and a bonus free list of distressed properties in your area.

Which Comes First… Marriage or Mortgage?

According to the National Association of REALTORS most recent Profile of Home Buyers & Sellers, married couples once again dominated the first-time homebuyer statistics in 2017 at 57% of all buyers. It is no surprise that having two incomes to save for down payments and contribute to monthly housing costs makes buying a home more attainable.

But, many couples are also deciding to buy a home before spending what would be a down payment on a wedding, as unmarried couples made up 16% of all first-time buyers last year.

If you’re single, don’t fret! Single women made up 18% of first-time buyers in 2017, while single men accounted for 7% of buyers. A recent report pointed to a sense of responsibility and commitment that drives many single women to want to own their own homes rather than rent someone else’s.

Here is the breakdown of all first-time homebuyers in 2017 by percentage of all buyers, income, and age:

Bottom Line
You may not be that much different than those who have already purchased their first homes. Contact us today and let us help to determine if your dream home is already within your grasp.

 

Call/Text at (626) 607-8652 or email me at Ady@AdySimion.com

Click here…to check your home value in seconds!

Click here…to search great deals, foreclosures and short sales in your area.

Click here… for Home Buyer Secrets video and PDF download and a bonus free list of distressed properties in your area.

Why You Should Invest in Property in Pasadena, CA

The warm breeze blows through the streets, and the orange glow of the sunset begins to dim through the towering oak trees. Life is good in Pasadena, CA. Sitting just northeast of downtown Los Angeles, it’s a city well-known for its closeness to Hollywood, being the original home of many fast-casual eateries, and hosting the annual Rose Bowl Game.

The city’s beloved Victorian and art deco architecture styles give Pasadena a touch of rich character and history. If you’re new to the city or thinking of moving here permanently, take part in the popular guided tours that showcase the magnificent design and craftsmanship. Accompanying the area’s structural splendor are dozens of parks and recreational areas for the enjoyment of residents and visitors alike.

If the city’s beauty isn’t enough of a reason to pack up and move to paradise, here’s a few more reasons why you should invest in property in Pasadena.

 

A Family Friendly Environment
New homeowners and families are flocking to Pasadena each year, which means there are plenty of family activities in and around the city. From the 120 acres of botanical gardens found at the Huntington to the Pasadena Ice Skating Center, there’s always outdoor activities to get your children outside. If you need to stay out of the summer heat, there’s always the Magical Playground and the universally accessible Reese’s Retreat. You can also help instill a sense of community pride by joining them in volunteering together for causes varying from help the homelessness to cleaning up parks.

This is just the tip of the iceberg when it comes to the kid-friendly activities. This timeless community is the perfect place to raise your family with an ample amount of single family homes available for new residents.

 

Lovely Neighborhoods
Incredible sights might be right outside your front door. And though you won’t mind doing so, you shouldn’t have to amble down every street in Pasadena just to see vivid colors and bold structures.

Favored neighborhoods to live in are South Pasadena, East-Central Pasadena and South Arroyo. These are some of Pasadena’s most desirable neighborhoods because of their proximity to amenities, their fantastic housing prices, and how accessible they are by public transportation. South and East-Central in particular are perfect locations for raising children because of their closeness to public libraries and a wide variety of school options.

Not to mention, Pasadena has picturesque views that you won’t find anywhere else. If you’re going to be making a huge commitment like real estate investment, you don’t just want something that’s well-priced and hits all your marks. You want a home town that touches your heart and gives you a desire to explore it, in different ways every day.

Pasadena’s scenic viewpoints like Inspiration Point, Eaton Canyon, Memorial Park, or the Storrier Stearns Japanese Garden have convinced many buyers that life in Pasadena goes beyond what people have built there, be it communities or buildings.

 

Countless Amenities
The community’s character and atmosphere are enhanced by Pasadena’s geographical features, stellar public art installations, and lively nightlife close by. The area’s bountiful amenities are an essential touch to the Pasadena resident’s living experience.

In Pasadena, you’ll get all of the essential amenities and more. The city government has justly acknowledged both the nature and constructed beauty flowing throughout the streets of Pasadena’s nine neighborhoods, and they have worked to promote and amplify that beauty by engaging in preservation efforts and collaborative planning and community development.

Nearby attractions like Disneyland and Knott’s Berry Farm are only an hour away if you need a change of pace from the museums, nature parks, and local landmarks of Pasadena. With regular farmers markets and flea markets, everything you could need or want is within reach.

 

“Picture Perfect” Dining
There’s one thing that might be better than the local architecture – and it’s the food. Download your favorite food photo app and get ready to have your friends flood your Instagram with messages of “Where???” after you’ve visited a meal at one of these restaurants:

One of the top Pasadena restaurants recommended to newcomers, Houston’s is a local favorite, serving cocktails in chilled glasses, a varied menu, and an appealing ambiance which makes it ideal for everything from first dates to business lunches.

A sight and taste a little more unusual would be POP Champagne & Dessert Bar. The bubble-shaped mirrors are all you need to know to convince you it’s going to be one of your favorite city spots, but you’ll definitely want to taste the crepes. Perfect for dates, perfect for meetups.

And let’s not forget sitting down for a craft cocktail. The Raymond’s Bar 1886 is a classic western style venue with a soft Victorian touch that’s perfect for date nights. The rotating food and drink menu is seasonal, meaning you’ll always have an incredible new experience with each visit.

 

Pasadena Has It All
Whether you’re looking to start a family in a house with a yard, settle down in a private condo, or live the life of a bachelor in an upscale apartment, Pasadena has much to offer you. To get a taste of what the city has to offer, try browsing through these things to do in Pasadena to see specific highlights the city offers, from trendy restaurants to adventurous activities. There’s something for everyone here in The Crown of the Valley.

 

Interested in buying or selling a home in the Pasadena area? Contact Ady Simion here for more information.

 

Author: Brennan Flentge

 

 

Let’s chat and explore your options! Call/Text at (626) 607-8652 or email me at Ady@AdySimion.com

Click here…to check your home value in seconds!

Click here…to search great deals, foreclosures and short sales in your area.

Click here… for Home Buyer Secrets video and PDF download and a bonus free list of distressed properties in your area.

If You’re Considering Selling, ACT NOW!!!

Definitely an aggressive headline. However, as the final data on the 2017 housing market rolls in, we can definitely say one thing: If you are considering selling, IT IS TIME TO LIST YOUR HOME!

How did we finish 2017?

1. New-home sales were at their highest level in a decade.
2. Sales of previously owned homes were at their highest level in more than a decade.
3. Starts of single-family homes were their strongest in a decade and applications to build such properties advanced to the fastest pace since August 2007.

And Bloomberg Business just reported:

“America’s housing market is gearing up for a robust year ahead. Builders are more optimistic, demand is strong and lean inventory is keeping prices elevated.”

And the National Association of Realtors revealed that buyer traffic is stronger this winter than it was during the spring buying season last year.

The only challenge to the market is a severe lack of inventory. A balanced market would have a full six-month supply of homes for sale. Currently, there is less than a four-month supply of inventory. This represents a decrease in supply of 9.7% from the same time last year.

Bottom Line

With demand increasing and supply dropping, this may be the perfect time to get the best price for your home. Contact us today to see whether that is the case in your neighborhood and explore your options.

Call/Text at (626) 607-8652 or email me at Ady@AdySimion.com

Click here…to check your home value in seconds!

Click here…to search great deals, foreclosures and short sales in your area.

Click here… for Home Buyer Secrets video and PDF download and a bonus free list of distressed properties in your area.

61% of First-Time Buyers Put Down Less than 6%

According to the National Association of Realtors’ latest Realtors Confidence Index, 61% of first-time homebuyers purchased their homes with down payments below 6% from October 2016 through November 2017.

Many potential homebuyers believe that a 20% down payment is necessary to buy a home and have disqualified themselves without even trying. The median down payment for all buyers in 2017 was just 10% and that percentage drops to 6% for first-time buyers.

Zillow Senior Economist Aaron Terrazas’ recent comments shed light on why buyer demand has remained strong,

“Looking into 2018, rent is expected to continue gaining. More widespread rent growth could mean home buying demands stay high, as renters who can afford it move away from the unpredictability of rising rents toward the relative stability of a monthly mortgage payment instead.”

It’s no surprise that with rents rising, more and more first-time buyers are taking advantage of low-down-payment mortgage options to secure their monthly housing costs and finally attain their dream homes.

Bottom Line
If you are one of the many first-time buyers who is not sure if you would qualify for a low-down payment mortgage, call us and let’s talk and explore your options to set you on your path to homeownership!

Call/Text at (626) 607-8652 or email me at Ady@AdySimion.com

Click here…to check your home value in seconds!

Click here…to search great deals, foreclosures and short sales in your area.

Click here… for Home Buyer Secrets video and PDF download and a bonus free list of distressed properties in your area.