MID-YEAR HOUSING MARKET UPDATE: THREE THINGS TO KNOW TODAY

As a homeowner, it’s always tempting to dream about the next big project you’re going to tackle. The possibilities are endless. Should I renovate? Should I refinance? Should I stay? Should I move? The list goes on and on. In today’s housing market, it’s actually a great time to shift your thoughts toward selling your house and moving up into the home of your dreams. We have a finger on the pulse of the market and will make your buying or selling experience an educated one. You need someone who is going to tell you the truth, not just what they think you want to hear. You  deserve open lines of communication.  Today’s real estate market is highly competitive.  Having a  professional who’s been there before to guide you through the process is an important step that will give you a huge advantage! Call us today at 714.343.9294.

Shifting trends and industry-leading research are pointing toward some valuable projections about the status of the housing market for the rest of the year. If you’re thinking of buying or selling, or if you just want to know what experts are saying is on the horizon, here are the top three things to put on your radar as we head into the coming months:

Home prices are appreciating at a more normal rate: Home prices have been appreciating for about ten years now. Experts at the Home Price Expectation Survey, Mortgage Bankers Association, Freddie Mac, and Fannie Mae are forecasting continued growth throughout the next year, although it should be leveling-off to normal appreciation (3.6%), as we move into 2020.

Interest rates are low: Over the past 30 years, the average mortgage rate in the United States has been 8.27%, and rates even peaked as high as 18% in the 1980s. Today, at 3.81%, the rate is considerably lower than the historical 30-year average. Although experts predict it may climb into the low 4% range in the near future, that’s still remarkably lower than our running average,  suggesting a great time to get more for your money over the life of your loan.

An impending recession does not mean there will be a housing crash: Although expert research studies such as those found in the Duke Survey of American CFOs and the National Association of Business Economics, are pointing toward a recession beginning within the next 18 months, a potential recession isn’t expected to be driven by the housing industry. That means we likely won’t experience a devastating housing crash like the country felt in 2008.  With prices appreciating and low interest rates available, it’s a perfect time to buy or sell a home. Reach out to the Stovall Team today to see how you can take the next step in the exciting journey of homeownership.

 Sources:  Micah Stovall, Stovall Team; National Association of Realtors

Posted in Buyers, Sellers | Tagged , , , , , , , , , , , , , , , , , , | Comments closed

Inventory in the Current Market

The current housing landscape presents greater home values, low  interest rates, and high buyer demand. All of these factors point to the strong market forecasted to continue throughout the rest of the year.  There is,  however, one thing that may cause the industry to tap the brakes: an overall lack of housing inventory. Buyer demand naturally   increases during the summer months, but in our local market the current supply is not keeping up.

If you’re  thinking of selling, now may be the time. Demand for your house will be strong during a period when there is very little competition, ideally leading to a quick sale and a great return on your investment. If you are  considering listing your home for sale please remember that who you work with matters! Our primary goal is to deliver the highest level of service available to each and every one of our clients. We strive to make each of our listings the best they can be. Is now the time for you to make your move?  Call Micah Stovall at Stovall Team today at 714.343.9294 to discuss your options.                                                                                                                                         

Posted in Real Estate News | Tagged , , , , , , , , , , , , , , , , , , | Comments closed

3 Powerful Reasons To Buy A Home Now

Buying and selling a house is a big endeavor. Whether you are a first-time buyer or looking to move up to the home of your dreams, now is a great time to purchase a home. Let’s evaluate your needs and see if your situation calls for buying or selling now or in the  future. Call or text 714.343.9294 or email me at [email protected] and visit stovallteam.com.  We are here to invest in your family’s future with you.  At Stovall Team we are  focused on helping you understand the process while helping you find your dream home Here are three major reasons to buy in our current market.

  1. Affordability Many people focus solely on price when talking about home affordability. Since home prices have appreciated throughout the past year, they assume homes are less affordable. However, affordability is determined by three components: Price, Wages, and Mortgage Interest Rate. Prices are up, but so are wages – and interest rates have recently dropped dramatically (see #2 below). As a result, the National Association of Realtors’ (NAR) latest Affordability Index report revealed that homes are MORE affordable throughout the country today than they were a year ago.
  2. Mortgage Interest Rates. Mortgage rates have dropped almost a full point after heading toward 5% last fall and early winter. Currently, they are below 4%. Additionally, Fannie Mae recently predicted the average rate for a 30-year fixed mortgage will be 3.7% in the second half of 2019. That compares to a 4.4% average rate in the first quarter and 4% in the second quarter. With mortgage rates remaining near historic lows, Fannie Mae and others have increased their forecasts for housing appreciation for the rest of the year. If home price gains are about to re-accelerate, buying now rather than later makes financial sense.
  3. Increase Family Wealth Homeownership has always been recognized as a sensational way to build long-term family wealth. A new report by ATTOM Data Solutions reveals: “U.S. homeowners who sold in the second quarter of 2019 realized an average home price gain since purchase of $67,500, up from an average gain of $57,706 in Q1 2019 and up from an average gain of $60,100 in Q2 2018. The average home  seller gain of $67,500 in Q2 2019 represented an average 33.9 percent return as a percentage of original purchase price.”

The longer you delay purchasing a home, the longer you are waiting to put the power of home equity to work for you.  With affordability increasing, mortgage rates decreasing, and home values about to re-accelerate, it may be time to talk with Stovall Team to determine if buying now makes sense for your family.

Sources: Micah Stovall, Stovall Team, National Association of Realtors, ATTOM Data Solutions, Fannie Mae

 

Posted in Real Estate News | Tagged , , , , , , , , , , , , , , , , , , | Comments closed

How To Increase Your Equity Over The Next 5 Years

Many of the questions currently surrounding the real estate industry focus on home prices and where they are heading. The most recent Home Price Expectation Survey (HPES) helps target these projected answers.

Here are the results from the Q2 2019 Survey:

  • Home values will appreciate by 4.1% in 2019
  • The average annual appreciation will be 3.2% over the next 5 years
  • The cumulative appreciation will be 16.8% by 2023
  • Even experts representing the most “bearish” quartile of the survey project a cumulative appreciation of over 6.7% by 2023

What does this mean for you?

A substantial portion of family wealth comes from home equity. As the value of a family’s home (an asset) increases, so does their equity.

Using the projections from the HPES, here is a look at the potential equity a family could earn over the next five years if they purchased a $250,000 home in January of 2019:How to Increase Your Equity Over the Next 5 Years | Keeping Current MattersBased on gains in home equity, their family wealth could increase by $42,000 over that five-year period.

Bottom Line

If you don’t yet own a home, now may be the time to purchase.Owning or moving up to your dream home could allow you to ride the increase in equity of a growing asset.  If you are considering listing your home for sale please remember that who you work with matters! Our primary goal is to deliver the highest level of service available to each and every one of our clients. We strive to make each of our listings the best they can be. Is now the time for you to make your move?  Call me today at 714.343.9294

Posted in Real Estate News, Sellers | Tagged , , , , , , , , , , , , , , , , , , | Comments closed

Now’s The Time To Move-Up And Upgrade Your Current Home!

Homes priced at the top 25% of the price range for a particular area of the country are considered “premium homes.” In today’s real estate market, there are deals to be had at the higher end! This is great news for homeowners wanting to upgrade from their current house.

Much of the demand for housing over the past couple of years has come from first-time buyers looking for their starter home. Many of the more expensive homes listed for sale have not seen as much interest.

According to ILHM’s Luxury Reportthis mismatch in demand and inventory of luxury and premium homes has created a Buyer’s Market. For the purpose of the report, a luxury home was defined as one that costs $1 million or more.

“A Buyer’s Market indicates that buyers have greater control over the price point. This market type is demonstrated by a substantial number of homes on the market and few sales, suggesting demand for residential properties is slow for that market and/or price point.”

The authors of the report were quick to point out that current conditions at the higher end of the market are no cause for concern.

“While luxury homes may take longer to sell than in previous years, the slower pace, increased inventory levels and larger differences between list and sold prices, represent a normalization of the market, not a downturn.”

Luxury can mean different things to different people. To one person, luxury is a secluded home with plenty of property and privacy. To another, it could be a penthouse at the center of a bustling city. Knowing what characteristics mean luxury to you will help your agent find you the home of your dreams.

If you are debating upgrading your current house to a premium or luxury home, now is the time! Buying or selling a home is the single largest transaction that most investors undertake.  If you are considering listing your home for sale please remember that who you work with matters! Our primary goal is to deliver the highest level of service available to each and every one of our clients.  Is now the time for you to make your move?  Call me today at 714.343.9294

 

Posted in Real Estate News | Comments closed

Before You Look For Your Dream Home: Know What You Want Vs. What You Need!

In this day and age of being able to shop for anything anywhere, it is really important to know what you’re looking for when you start your home search.

If you’ve been thinking about buying a home of your own for some time now, you’ve probably come up with a list of things that you’d LOVE to have in your new home. Many new homebuyers fantasize about the amenities that they see on television or Pinterest, and start looking at the countless homes listed for sale through rose-colored glasses.

Do you really need that farmhouse sink in the kitchen to be happy with your home choice? Would a two-car garage be a convenience or a necessity? Could the “man cave” of your dreams be a future renovation project instead of a make-or-break right now?

The first step in your home buying process should be getting pre-approved for your mortgage. This allows you to know your budget before you fall in love with a home that is way outside of it.

The next step is to list all the features of a home that you would like, and to qualify them as follows:

  • “Must-Haves” – if this property does not have these items, then it shouldn’t even be considered (ex: distance from work or family, number of bedrooms/bathrooms).
  • “Should-Haves” – if the property hits all of the ‘must-haves’ and some of the ‘should-haves,’ it stays in contention but does not need to have all of these features.
  • “Absolute-Wish List” – if we find a property in our budget that has all of the ‘must-haves,’ most of the ‘should-haves,’ and ANY of these, it’s the winner!

Bottom Line

Having this list fleshed out before starting your search will save you time and frustration. It also lets your agent know what features are most important to you before they start showing you houses in your desired area.

Posted in Real Estate News | Comments closed
  • Stovall Team | Star Real Estate | 10540 Talbert Ave. Suite 100 | Fountain Valley, CA 92708

    (714) 343-9294

    Google | FaceBook