Monthly Archives: November 2018

Real Estate Market Finally Getting Back to Normal ๐Ÿค”๐Ÿ ๐Ÿ‘๐Ÿ‘Ž๐Ÿ“Š๐Ÿ‘Œ

The housing market has been anything but normal for the last eleven years. In a normal real estate market, home prices appreciate 3.7% annually. Below, however, are the price swings since 2007 according to the latest Home Price Expectation Survey:

After the bubble burst in June 2007, values depreciated 6.1% annually until February 2012. From March 2012 to today, the market has been recovering with values appreciating 6.2% annually.

These wild swings in values were caused by abnormal ratios between the available supply of inventory and buyer demand in the market. In a normal market, there would be a 6-month supply of housing inventory.

When the market hit its peak in 2007, homeowners and builders were trying to take advantage of a market that was fueled by an โ€œirrational exuberance.โ€

Inventory levels grew to 7+ months. With that many homes available for sale, there werenโ€™t enough buyers to satisfy the number of homeowners/builders trying to sell, so prices began to fall.

Then, foreclosures came to market. We eventually hit 11 months inventory which caused prices to crash until early 2012. By that time, inventory levels had fallen to 6.2 months and the market began its recovery.

Over the last five years, inventory levels have remained well below the 6-month supply needed for prices to continue to level off. As a result, home prices have increased over that time at percentages well above the appreciation levels seen in a more normal market.

That was the past. What about the future?

We currently have about 4.5-months inventory. This means prices should continue to appreciate at above-normal levels which most experts believe will happen for the next year. However, two things have just occurred that are pointing to the fact that we may be returning to a more normal market.

1. Listing Supply is Increasing

Both existing and new construction inventory is on the rise. The latest Existing Home Sales Report from the National Association of Realtors revealed that inventory has increased over the last two months after thirty-seven consecutive months of declining inventory. At the same time, building permits are also increasing which means more new construction is about to come to market.

2. Buyer Demand is Softening

Ivy Zelman, who is widely respected as an industry expert, reported in her latest โ€˜Zโ€™ Report:

ย โ€œWhile we continue to expect a resumption of growth in resale transactions on the back of easing inventory in 2019 and 2020, our real-time view into the market through our Real Estate Broker Survey does suggest that buyers have grown more discerning of late and a level of โ€œpauseโ€ has taken hold in many large housing markets.

Indicative of this, our broker contacts rated buyer demand at 69 on a 0- 100 scale, still above average but down from 74 last year and representing the largest year-over-year decline in the two-year history of our survey.โ€

With supply increasing and demand waning, we may soon be back to a more normal real estate market. We will no longer be in a buyersโ€™ market (like 2007-February 2012) or a sellersโ€™ market (like March 2012- Today).

Prices wonโ€™t appreciate at the levels weโ€™ve seen recently, nor will they depreciate. It will be a balanced market where prices remain steady, where buyers will be better able to afford a home, and where sellers will more easily be able to move-up or move-down to a home that better suits their current lifestyles.

Bottom Line

Returning to a normal market is a good thing. However, after the zaniness of the last eleven years, it might feel strange. If you are going 85 miles per hour on a road with a 60 MPH speed limit and you see a police car ahead, youโ€™re going to slow down quickly. But, after going 85 MPH, 60 MPH will feel like youโ€™re crawling. It is the normal speed limit, yet, it will feel strange.

Thatโ€™s what is about to happen in real estate. The housing market is not falling apart. We are just returning to a more normal market which, in the long run, will be much healthier for you whether you are a buyer or a seller. Contact us if you have more questions about the housing market in your area.

 

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

Click hereโ€ฆto check your home value in seconds!

Click hereโ€ฆto search great deals, foreclosures and short sales in your area.

 

Podcast Ep 34 – 5 Tips To Start Your Home Search ๐ŸŽ™๏ธ๐Ÿ‘‚๐ŸŽง๐Ÿ”Š

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

Click hereโ€ฆto check your home value in seconds!

Click hereโ€ฆto search great deals, foreclosures and short sales in your area.

 

5 Tips To Start Your Home Search ๐Ÿง๐Ÿ˜๏ธ๐Ÿ‘€๐Ÿ ๐Ÿ˜

๐Ÿง๐Ÿ˜๏ธ๐Ÿ‘€๐Ÿ ๐Ÿ˜

Searching for a New Home doesn’t have to start off on the wrong foot.

These 5 tips will make of your search an easy process.

Please contact us if you have more questions or comments about this

or other Real Estate topics.

 

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

Click hereโ€ฆto check your home value in seconds!

Click hereโ€ฆto search great deals, foreclosures and short sales in your area.

 

Taking Fear Out of the Mortgage Process ๐Ÿ˜ฐ๐Ÿ–Š๏ธ๐Ÿ“‹๐Ÿก

A considerable number of potential buyers shy away from jumping into the real estate market due to their uncertainties about the buying process. A specific cause for concern tends to be mortgage qualification.

For many, the mortgage process can be scary, but it doesnโ€™t have to be!

In order to qualify in todayโ€™s market, youโ€™ll need a down payment (the average down payment on all loans last year was 5%, with many buyers putting down 3% or less), a stable income, and good credit history.

Throughout the entire home buying process, you will interact with many different professionals who will all perform necessary roles. These professionals are also valuable resources for you.

Once youโ€™re ready to apply, here are 5 easy steps that Freddie Mac suggests to follow:

1. Find out your current credit history & score โ€“ even if you donโ€™t have perfect credit, you may already qualify for a loan. The average FICO Scoreยฎ of all closed loans in September was 731, according to Ellie Mae.
2. Start gathering all of your documentation โ€“ income verification (such as W-2 forms or tax returns), credit history, and assets (such as bank statements to verify your savings).
3. Contact a professional โ€“ your real estate agent will be able to recommend a loan officer who can help you develop a spending plan, as well as help you determine how much home you can afford.
4. Consult with your lender โ€“ he or she will review your income, expenses, and financial goals in order to determine the type and amount of mortgage you qualify for.
5. Talk to your lender about pre-approval โ€“ a pre-approval letter provides an estimate of what you might be able to borrow (provided your financial status doesnโ€™t change) and demonstrates to home sellers that you are serious about buying!

Bottom Line

Do your research, reach out to professionals, stick to your budget, and be sure that you are ready to take on the financial responsibilities of becoming a homeowner. Contact us if you have more questions about the process or if you need lender recommendations.

 

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

Click hereโ€ฆto check your home value in seconds!

Click hereโ€ฆto search great deals, foreclosures and short sales in your area.

 

Should You Buy Now… or Wait Until Next Year? ๐Ÿค”๐Ÿ โณ๐Ÿ“†๐Ÿคจ

๐Ÿค”๐Ÿ โณ๐Ÿ“†๐Ÿคจ

Interest rates will rise making your mortgage payment higher.

Please contact us if you have more questions

or comments about this or other Real Estate topics.

 

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

Click hereโ€ฆto check your home value in seconds!

Click hereโ€ฆto search great deals, foreclosures and short sales in your area.

 

4 REAL Reasons Why We Buy A Home! ๐Ÿ˜โœจ๐Ÿก

We often talk about why it makes financial sense to buy a home, but more often than not, the emotional reasons are the more powerful or compelling ones.

No matter what shape or size your living space is, the concept and feeling of home can mean different things to different people. Whether itโ€™s a certain scent or a favorite chair, the emotional reasons why we choose to buy our own homes are typically more important to us than the financial ones.

1. Owning your home offers you the stability to start and raise a family

Between the best neighborhoods and the best school districts, even buyers without children at the time of purchase may have these things in mind as major reasons for choosing the locations of the homes that they purchase.

2. Thereโ€™s no place like home

Owning your own home offers you not only safety and security, but also a comfortable place that allows you to relax after a long day!

3. You have more space for you and your family

Whether your family is expanding, an older family member is moving in, or you need to have a large backyard for your pets, you can take this all into consideration when buying your dream home!

4. You have control over renovations, updates, and style

Looking to actually try one of those complicated wall treatments that you saw onย Pinterest?ย Tired of paying an additional pet deposit in your apartment building? Or maybe you want to finally adopt that puppy or kitten youโ€™ve seen online 100 times? Whoโ€™s to say that you canโ€™t do just that in your own home?

Bottom Line

Whether you are a first-time homebuyer or a move-up buyer who wants to start a new chapter in your life, now is a great time to reflect on the intangible factors that make a house a home. Contact us and let’s explore your options.

 

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

Click hereโ€ฆto check your home value in seconds!

Click hereโ€ฆto search great deals, foreclosures and short sales in your area.

 

Podcast Ep 33 – Sell or Buy in the Fall-Winter ๐ŸŽ™๏ธ๐Ÿ‘‚๐ŸŽง๐Ÿ”Š

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

Click hereโ€ฆto check your home value in seconds!

Click hereโ€ฆto search great deals, foreclosures and short sales in your area.

 

Sell or Buy in the Fall-Winter ๐Ÿค”๐Ÿโ„๏ธ๐Ÿก๐Ÿ’ธ๐Ÿ˜–

Donโ€™t miss the opportunity of Selling or Buying during the Fall-Winter.

Please contact us if you have more questions or comments about this or other Real Estate topics.

 

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

Click hereโ€ฆto check your home value in seconds!

Click hereโ€ฆto search great deals, foreclosures and short sales in your area.

 

Why Has Housing Supply Increased as Sales Have Slowed Down? ๐Ÿ˜๏ธ๐Ÿ“ˆ๐Ÿคทโ€โ™‚๏ธ๐Ÿ“‰๐Ÿก

According to the latest Existing Home Sales Report from the National Association of Realtors (NAR), the inventory of homes for sale this year compared to last year has increased for the last four months, all while sales of existing homes have slowed compared to last yearโ€™s numbers.

For over three years leading up to this point, the exact opposite was true; Inventory dropped as sales soared.

NARโ€™s Chief Economist Lawrence Yun shed some light on what could be contributing to this shift,

โ€œThis is the lowest existing home sales level since November 2015. A decadeโ€™s high mortgage rates are preventing consumers from making quick decisions on home purchases. All the while, affordable home listings remain low, continuing to spur underperforming sales activity across the country.โ€

Letโ€™s take a deeper look:

Interest Rates

Since January, 30-year fixed mortgage interest rates have increased nearly a full percentage point (from 3.95% to 4.9%). Fannie Mae, Freddie Mac, the National Association of Realtors, and the Mortgage Bankers Association are all in agreement that rates will continue to increase to about 5.2% over the next 12 months.

โ€œThe rise in [mortgage] rates paired with this very strong price appreciation absolutely is slowing housing,โ€ said Fannie Maeโ€™s Chief Economist Doug Duncan.

Even though rates are higher than theyโ€™ve been in a decade, they still remain below the average for the 1970s, 80s, 90s, and 2000s!

Mismatch of Inventory

Elizabeth Mendenhall, President of NAR, said it best, โ€œDespite small month over month increases, the share of first-time buyers in the market continues to underwhelm because there are simply not enough listings in their price range.โ€

Prices of starter and trade-up homes have appreciated faster than their higher-priced counterparts. Over the last 5 years, the lowest-priced homes have appreciated by 47% while the highest-priced homes have appreciated by only 24%.

According to the Institute of Luxury Home Marketโ€™s Luxury Market Report, the $1M-and-up price range is now experiencing a buyerโ€™s market. This means that supply (inventory) has finally caught up with demand and buyers are in the driverโ€™s seat when it comes to negotiations. Additionally, many listings in this price range have experienced price cuts in order to entice buyers to put in offers.

Natural Disasters

Although not fully to blame for the national shortage in sales and inventory, natural disasters like Hurricane Florence, Hurricane Michael, and the wildfires on the West Coast have certainly had an impact.

Bottom Line

Additional inventory coming to market could help normalize the housing market and allow incomes to catch up to home prices. For more information about sales and inventory in your area, contact us and we can help you make the best decision for you and your family.

 

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

Click hereโ€ฆto check your home value in seconds!

Click hereโ€ฆto search great deals, foreclosures and short sales in your area.

 

Dรญa de Los Muertos Old Town Pasadena

๐Ÿ’ซ๐Ÿ’€โœจ๐ŸŒป

Old Town Pasadena celebrates Day of the Dead, honoring loved ones have passed. On November during this three-day event Old Pasadena businesses create beautiful Altars, 22 installations on display throughout the district also a Salsa dance party with live music and calavera face painting for everyone. Just fun fun fun on a unique way for everyone.

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

Click hereโ€ฆto check your home value in seconds!

Click hereโ€ฆto search great deals, foreclosures and short sales in your area.