Selling your home fast
The 2023 CA Housing Market Forecast: What You Need to Know
The California housing market is always changing, and it’s important to stay ahead of the trends if you want to be successful on your real estate journey. That’s why we were so excited to have Jordan Levine, Chief Economist at C.A.R., give a can’t-miss forecast of the housing market for 2023 at the ReImagine conference last week.
This valuable data will provide insight into today’s pressing housing issues that may impact your equity and your largest investment in the future. It’s essential information for anyone who wants to stay ahead of the curve in California real estate!
Forecast: Chance of Rain in seller’s paradise
Our economy is getting hit with a lot right now, so it’s important to keep an eye out for the clouds! We just finished years of sunny skies in terms of equity and appreciation, but the buyers running after starved inventory have been a bit burnt out.. and now loan rates have hit them with a huge gust of wind on top of it.
Low low interest rates the last 10 years had allowed buyers to continually increase purchase prices, and still have an affordable payment. It looks like that trend is now dissolving, which brings cloudy skies to our CA real estate market.
If you’re looking at the big picture, our 2022 Jan-June market was white hot, and 2021 had the highest volume of California home sales in an entire decade, over 450,000 homes were sold. 3 out of 4 homes sold over the asking price in 2021. The average days on the market was 7, when it’s historically 30-90 days. This type of supply & demand is not healthy, and it had to ‘simmer down’ eventually. Welp… here we are. We are catching our breath; including agents and lenders who have been pelted the last 2 years.
What Does This Mean for CA Buyers and Sellers?
If sellers are confused why buyers are now offering less than the asking price, the interest rate boost adds an additional $1600-1700 per month for the EXACT SAME HOME.
If buyers can’t qualify for the same amount as they could previously, that will affect our property prices. We are now at less than 20% of individuals in California who can afford a home. It’s not as bad as we have been, but it would still be nice if more people had homeownership as an option.
Warning: Rate pressure is building. Mortgage Rates might get worse.
Because rates may go even higher, its critical to price your homes right and maintain realistic expectations. Because every local market is different, what you see on national news is not necessary YOUR reality. And what you see in the newspapers… remember gloom & doom headlines sell, and the news needs subscriptions. Don’t get caught thinking Southern California prices are on a cliff, when we are just panting on the side of the road from exhaustion. Properly priced homes will always sell.
Fact: The sky is not falling
It’s not projected we are heading into a foreclosure market. Homeowners still have over 122K average in wealth, and renters are no better than they were 40 years ago, with a 6K average net worth. The total net worth of consumers is down right now, so we should expect some pushback. Now is NOT the market for Brother in law effect…’my BIL said xyz’. Now is the market to look to the true professionals and experts to guide you. The news outlets are also not experts. Active real estate agents and mortgage lenders are.
Forecast: What does the future for Orange County real estate look like?
Historically, our new rates are still low, and we should be looking at them as the new normal. According to multiple experts, we shouldn’t expect rates to go back down again in the near future. It’s still a great time to buy a home if you’re renting, and the renters were some of the most ignored in our previous market, so you will see them come back into the fray. Buyers who were at the cusp of affordability may unfortunately be priced out of the market, or they will be offering lower than asking price because they are literally chasing the property that was affordable with 6 month ago rates.
Sellers who listed 30-100K over the previous summer comps will likely have to reduce price or face their listing expiring. It’s a good idea to research sales in the community (comps) the last 90 days, and see what the median comp range is. Listing at the top of your comp range with the current market temperature could cause the home to sit frozen on the market. Not to worry though, properly priced homes in Southern California will always sell. Make sure you work with a seasoned professional and list at the right price from day 1, or you could suffer. Discount and ibuying brokerages don’t do well in this type of market – beware!
Many investors, seeing the writing on the wall with interest rates, are putting 1031 exchanges in motion, and adjusting portfolios accordingly. Some are tiring of strict Los Angeles rent control and housing regulations, and are opting to relocate investments to neighboring counties or even other states that don’t impress as many regulations or red tape.
If you’re curious about the range of your home’s worth, including short term and long term rental rate averages, click here: https://hmbt.co/TTNcDG – If you would like to receive monthly Orange County and Los Angeles real estate reports simply sign in to the link above for a free account – it’s that easy! Angie is only a call or text away if you would like a full broker price opinion on your home or investment property 949-338-7408.
5 Reasons to Have a ‘For Sale’ Sign in Your Yard!
Read Full Post | Make a Comment ( None so far )1. A For Sale sign will give your home more exposure! Exposure that online posting just can’t offer! Here are a few things that having a For Sale sign can do for you and your sale process!
2. A For Sale sign can broaden the neighborhood boundaries that potential buyers may have not have considered yet. When potential buyers are scrolling through Zillow to search for potential new homes, they might restrict their online searches and not view any homes in your neighborhood. Having the sign in your front yard can attract potential buyers as they pass through the neighborhood.
3. Your neighbors will know you are selling your home! If your neighbors are not in the market for a new home, they may not see that your home has become available. Your neighbors may share the house link with their friends or family who are in the market for a new home. Everyone wants good neighbors!
4. A For Sale sign can provide potential buyers with a direct contact (your Realtor). If potential buyers come across your for sale house and have questions, they know who to contact with their questions.
5. Many potential home buyers start their home search on Google, Zillow and other real estate search engines. Online searching is efficient and makes it easy to save your favorite homes. Having a For Sale sign in your yard will give potential buyers the opportunity to snap a photo of your home, the sign, and add it to their online searches later.
Questions? Reach out to our team, we are here to help!
2021 Real Estate Market Predictions for Orange County, CA
Today one of our favorite forecasters, Steven Thomas, gave his thoughts on closing out the crazy 2020 Covid real estate market and what we expect to see here in 2021. If you love stats, be sure to subscribe to our email list, as we send out Reports on Housing statistics monthly. These reports will keep you on top of exactly what is happening right now with property prices, average days on market, and demand.
We’ve had a really interesting year in real estate, almost flipped from our normal Orange County trends. We were slower in the spring, obviously due to quarantine and virus setbacks (coined ‘The Pandession’). Then we heated up in summer and are still going strong here in fall, when things usually cool.
The pandemic really made people think about what they wanted in a home. And now, they are going out to get it. Sometimes it’s a larger yard, other times a pool, being closer to loved ones, or relocating to a rural environment. Change is brewing in all levels of our housing market.
2020 has seen a SURGE in Luxury demand and sales, and we are seeing it in our team deals as well. Here’s a visual for a better picture:
Demand far outweighs supply, so almost every listing is selling with multiple offers at this point in time. Will it continue? Read on…
One of the factors that will affect our market significantly is Coronavirus numbers and which way they are swinging. If we end up in quarantine again, it WILL affect all markets, including housing, so keep that wild card in mind as we enter into 2021.
Foreclosure Predictions for 2021
Should you be worried about foreclosures? Waiting for that screaming deal on one??? Not really. Less than 6% of homeowners are on forbearance or late on their mortgage. That’s not enough to create a ‘foreclosure wave’…even if ALL of them get foreclosed on. This chart helps to tell part of the story. In 2006, owners didn’t have much equity. In 2020, owners have a LOT of equity.
Due to this equity, the forbearance options, and the rates driving buyers, Steven does NOT expect any wave of foreclosures in 2021.
What about the Rental Moratorium?
Approximately 20% of renters are late on their rent. At first that number seems like WOW…but…rewind to Oct 2019… and the tardy-on-rent number was ALSO…20%. So landlords aren’t hurt that bad, even though renters are on a break until Jan 31st 2021 with the rental moratorium here in the state of California.
Will Housing Demand Stay High in 2021?
Demand is strongest it’s been since Sept 2012 – eight years. If you think we’ve been busy hustling homes, this year is even busier. Demand is expected to slightly drop during the holiday season for November and December, but it will still be higher than the last 8 years. If you have a home to sell before Dec 31st – get in touch – it’s totally a possibility!
Inventory is the lowest it’s been since 2013 – pushing the average days on the market in OC to under 40. A hot seller’s market is under 60 average DOM….so we are in a hot HOT seller’s market, which not even the election division is extinguishing.
Should I buy a home in OC before 2021?
Short answer: Yes. Interest rates are LOW. Demand is high. Prices continue to go up. Lucky for our buyers, even with these prices.. the payment is more affordable than it would have been a few years ago. Check out this comparison:
Interest rates drive affordability. Right now your payment is SO affordable. If you can qualify to buy, it is a fabulous time to make a purchase. In Steven’s words…’You’ll be kicking yourself if you don’t’ LOL. We know, you don’t have the down payment saved. But let’s have a conversation with a parent or grandparent who has equity, or get you crowdfunding your down payment with Vow2Save.
2021 Forecast according to Reports on Housing
Uncertainty with Covid, vaccines, Washington DC, travel, and employment can all make things sticky. If we continue to experience the same demand, things can get sticky.
- Prediction: Real estate will enter 2021 strong and remain that way for at least half the year.
- Prediction: Appreciation 4-7%. Prices are NOT expected to go down at all in 2021
- Prediction: Upper ranges will continue to rise
- Prediction: Closed sales should double what they were in 2020. (from 4 to 8%)
Want to stay up to date on the Orange County real estate market? Simply fill out the form below and we’ll start sending you Steven’s Reports on Housing via email!
Zillow Offers: Not The American Dream
Zillow Offers provides sellers the opportunity to “skip the hassle and sell your home directly to Zillow.” Zillow Offers targets sellers who want to sell their property as fast as possible. The houses are sold quick and without the “hassle” of a traditional sell (no open houses, repairs are ‘taken care of’, you chose your move and closing date).
You might have seen Zillow advertised on billboards, commercials, or even on personalized yard signs. Zillow promises sellers an instant cash sale for their homes. It sounds great for sellers on a tight timeline, but what’s the catch?
Zillow Offers Are Below Market Value
While Zillow does provide a fast sale and near-instant cash to the seller, this comes at a cost. While your Zillow Offer is providing you instant cash by cutting out the hassle – you are paying for this convenience by selling your house lower than market value.
Zillow offers you a below market value Zestimate because they are taking on the responsibility of selling, fixing, and putting your home on the market. By selling your home for a lower market value, you are able to sell faster. However, Zillow is able to re-sell your home at the actual market value (after making repairs that were technically paid by you by selling the home for less).
What Your Zestimate Actually Costs You:
Zillow provides you with a Zestimate: the estimated market value. It is not an appraisal. After they provide the Zestimate they factor in information they receive from the seller (recent renovations, the current condition of the home, etc.), the opinion of a local real estate agent and fees. Zillow weighs whether renovations will be needed and the cost of holding and reselling the home. This is important to understand – while you do not have to make the necessary repairs and updates to your home, you are still paying to have those repairs completed (the cost is subtracted from your Zillow Offer).
While Zillow says they’ll take care of repairs these will often be priced above market value. This means you will be paying more for repairs than if you hired a contractor yourself. Additionally, you will not be benefiting from the equity that these repairs will bring to the cost of your home. Which means you are PAYING for the repairs by selling your home for less AND not earning anything from it.
Keep In Mind:
According to Zillow’s Offers page – once the Zillow Offer is confirmed, it may be adjusted when an in-person inspection is performed on the home. Just because you received the offer and it sounds appealing, this amount can still be adjusted.
Once Zillow purchases the home, they will make “necessary repairs and updates” and then put the home back on the market. By taking the burden of preparing your home to be listed off the seller – Zillow will earn the equity on your home (that you paid for).
It is important to note – you will still need an agent to determine an offer when using Zillow Offer. If a seller is represented by an agent and they accept a Zillow Offer, the agent still needs to be paid a commission by the seller based on the agreement between the seller and agent.
Sell Your Home Fast Without Losing Equity
Part of being a homeowner means you have invested in a property that will provide you with a return on your investment when you decide to sell. A fast sale should not compromise your investment and result in a below market value offer. We understand you want to sell your home fast – working with a real estate agent doesn’t mean that is an impossible ask.
Real estate agent commissions are between 5-6%, if you are listing your home for 10-15% less than market value you are spending MORE money. Real estate agents have resources to find you a buyer quickly.
If you are determined to move quickly, work with your real estate agent on setting a price that works for you and a buyer. Working with your real estate agent helps you receive better offers because your Agent is negotiating a deal on your behalf, one that will put money into your pocket! Real estate agents can sell your home quick without compromising your equity in the process.
If you have received your Zestimate and would like to compare the offer to market value, reach out to Angie today at: 949-338-7408. Comment below if you have a Zillow Offer Experience!
Read Full Post | Make a Comment ( None so far )Ringing in 2019 with Real Estate Goals
What will your 2019 look like?
We have some big goals for 2019 – one of them being helping our clients achieve their real estate new years resolutions! Whether it’s buying internationally or crowdfunding a down payment for an engaged couple, we can help you accomplish them all. Every year our whole team writes down their goals for the new year and we try to help each other accomplish them. This year, we want to do the same with all of our clients. Writing them down and being able to cross them off when they are accomplished really makes you feel good and it will make us feel good to be able to help you do that.
AskAngie Team’s Goals
Our team has a few things were really excited for this year! This year we plan to really grow our Vow2Save program. We are looking forward to helping a lot more engaged couples crowdfund a down payment so that they are able to buy a home after their wedding. This has been a goal of ours for a few years, and after a lot of work in 2018 we know it is really going to be taking off this year and we can’t wait to see the things it can do for people! We also plan to travel more this year in order to have the best information in helping our clients buy overseas. Last year we went to Spain and met with Realtors there, but we want to be able to do that in many more countries.
So much more we can do for you!
If you need help selling or buying a home after a divorce or identifying a good AirBnB investment we can help with that and everything in between. We have various services that we are experienced in. Another goal we know some of our clients have is to stop renting and own their first home and we are so excited to help many people achieve that this year especially with the current rent prices in OC. We can help you figure out what your home is worth and how you can sell it fast and for top dollar! We truly value our time with our clients and being able to help them grow their real estate profile and accomplish their goals. If you have any questions or want to share your goals with us so we are better able to help you please fill out the form below or contact Angie at 949-338-7408!
How to sell your home fast and for top dollar
Thinking of selling your home?
Are you thinking of selling your home but the process seems too overwhelming and hard? Maybe you have already decided to sell your home but aren’t sure about the process and how to get started. The AskAngie team has all of the answers for you in either situation. We know deciding to sell your home is not an easy decision and can be a very stressful time in your life. Most people want to sell it quickly in order to purchase the next place and everyone wants to get the most money they possibly can out of their home. We have all the tips to help you do just that.
Declutter and bring in the light
One tip we always recommend to our clients is to declutter before listing your home for sale. Having a lot of clutter around your home or on counter tops can really take away from the big picture of what you’re selling. Most buyers want to be able to come into your home and picture it as their own in order to decide whether or not they want to make an offer, seeing your items everywhere might make it hard for them to picture themselves and their family living there. We also suggest removing any dark drapes or window coverings to really brighten up the space and make it more approachable to a buyer. Bright areas and natural light catch buyers attention every time.
An example of a light and bright living room
Changing perspective
In order to get top dollar for your home you have to mix it up and change buyers perspective of what they are looking at. One way to do this is using drone photos for your online postings and MLS site. This allows possible buyers to see the area around your home including the neighborhood, parks, or schools nearby. It also provides a different look at the home itself. We also always suggest that our sellers invest in a stager for their home. Making it look its absolute best is a stagers job – and we have some really good ones! This will help you get top dollar because buyers are seeing it at its best.
Without this drone image you wouldn’t be able to see the AMAZING surroundings this home has. What a change in perspective 🙂
Knowing the market
We believe educating yourself via your Realtor about the current market before listing your home is a good way to prepare yourself for what is to come. Being prepared and knowing what you’re up against is a good idea for selling your home quickly. It is currently a sellers market here in the OC, and we are always looking for people wanting to sell their homes. There’s a lot of buyers looking but never enough houses for them to buy. Knowing this information before posting your home for sale can be very motivating and encouraging as you begin your journey with your house on the market.
Bring the whole package from day one!
We always bring our sellers perfect package to the MLS day one of its listing. In order to do this you need a good Realtor, good photos, and be completely ready to sell. If people have online searches saved they are only sent properties via email the day it’s added and if the price drops, because of this you want to have your pictures and postings perfected before it is listed on the MLS. We also provide a property website for each listings that you are able to share on social media and with any buyer who is interested in your property.
29 more home selling tips waiting for you!
These are just a few additional tips that we added on to share with you. but our team has created a report, 29 Essential Tips That Get Homes Sold Fast (And For Top Dollar). If this report is something you are interested in reading or you know someone who is thinking of selling their home and could use some tips just fill out the form below to have it emailed to you! If you need any additional advice or are looking for someone to help you sell your home quickly contact Angie at 949-338-7408!
Orange County Real Estate Success 