I'm Sure You Must Have Heard?

Read in HousingWire today, although I've admittedly been following this since it was first just a hint, and I've probably blogged about it as well. 

Quite honestly, I still feel basically the same. That, while it will help buyers with the expense of buying, it will not help with the lack of inventory which is the main driver in the pricing of homes for the last 12 months.

"President called for a first-time homebuyer $15,000 tax credit, and Congress has answered his call.

Today was introduced the new legislation, dubbed the “First-Time Homebuyer Act.” The bill would provide a tax credit for first-time homebuyers of up to 10% of the purchase price, or $15,000.

In order to be eligible for the full credit, potential buyers must not have owned or purchased a home within the past three years.

The program would be targeted to low- and middle-income earners. Participants must also make no more than 160% of the area median income, and the home’s purchase price must be no more than 110% of the area median purchase price. Borrowers could claim the credit for primary residences purchased after Dec. 31, 2020.

Borrowers would need to use the home as a primary residence for at least four years, or face taxes to recover a portion of the credit." 

We need more housing, we need lumber to be cheaper, we need builders to build more affordable housing, that's all there is to it. But, alas, it is not that simple now is it?

With a new tax credit, it will help some of my first timers. This is not set in stone yet, but since we've had some in the past, I'm pretty sure this will become stone soon. Oh, and they are trying to pass a down payment assistance program as well.

Again, I think it's wonderful. BUT, without more ways to find more housing.....it's just going to put more buyers out there in an already overloaded buyer pool, and drive up prices even further out of reach for some First-Timers.

My humble opinion. Now, who wants to sell their home today?

Let's work on that overloaded pool now!

Interesting Thoughts from National Association of Realtors

Will the Housing Market Maintain Its Momentum?

Last week’s Existing Home Sales Report from the National Association of Realtors (NAR) shows sales have dropped by 3.7% compared to the month before. This is the second consecutive month that sales have slumped. Some see this as evidence that the red-hot real estate market may be cooling. However, there could also be a simple explanation as to why existing home sales have slowed – there aren’t enough homes to buy. There are currently 410,000 fewer single-family homes available for sale than there were at this time last year.

Lawrence Yun, Chief Economist at NAR, explains in the report:

"The sales for March would have been measurably higher, had there been more inventory. Days-on-market are swift, multiple offers are prevalent, and buyer confidence is rising."

Yun’s insight was supported the next day when the Census Bureau released its Monthly New Residential Sales Report. It shows that newly constructed home sales are up 20.7% over the previous month.

Buyer demand remains strong. With more of the adult population becoming vaccinated and job creation data showing encouraging signs, existing-home inventory is expected to grow in the coming months.

What will this mean for home sales going forward?

Fannie Mae, Freddie Mac, and the Mortgage Bankers Association (MBA) have all forecasted that total home sales (existing homes and new construction) will continue their momentum both this year and next. Here’s a graph showing those projections:

Bottom Line

Living through a pandemic has caused many to re-evaluate the importance of a home and the value of home-ownership. The residential real estate market will benefit from both as we move forward.

Sometimes A Little Pressure Needs To Be Applied

In a Sellers market you shouldn't have to work that hard to get contingency removal, right? Buyers would be too concerned about losing the house if they didn't do so in a timely manner, right? You'd think! Hah! 

Working with an agent I've never worked with before in one of my escrows. He seems to be living in 'his world' on 'his time frame'. But, I'm still polite, well, to a certain point.

All my associates that say I'm nice and what a pleasure to work with are made from the same cloth. I've had other agents say that & then I warn them that I'll turn into something else if they don't do what they are supposed to do when they are supposed to do it.

So, the agent, took sweet-you-know-what time to get us a Request for Repairs. Then passive-aggressive tone about his buyers may walk if my seller doesn't give them an almost 10k credit for bogus repairs. I said walk then. Well, my Seller said 'bye-bye'!

They signed off on our response to their Request for Repairs.

Then we got to removal of final contingencies, a little stall here and there so we send out a Notice to Buyer to Perform because of the tardiness with the prior issue. No response to text/email/voice message. Lender ghosts me as well after I left 3 messages and copied her in on an email.

Finally I send an email that states we will be cancelling since we've heard nothing from agent or lender.

Lo & Behold, nice & early this morning we get Full Contingency Removal.

I protect my clients like a Mama Bear with her cubs. 

I don't care if they are 25 or 75, I'm still the Mama Bear and my cubs need my care and protection. Every Single One.

Yes, My Seller Was quite happy to chat with me this morning!

PS, I had to just get a little pushy with another that was due last night. 

We got it this afternoon. Oy!

Santa Clarita Home Sales Activity - April 20, 2021

 Robust, that's a great word to describe our current market & homes sales activity!

I talk with agents, lenders, associates, clients, daily about the current market. Sellers are receiving multiple offers over list price. Significantly over list price. Buyers are removing appraisal contingencies, offering to pay over appraised value, writing multiple offers.

Yes, this market is robust indeed. 

Santa Clarita is my home even though I work all over So. Cal. This blog focuses on SCV and this post includes Acton to the East, Newhall to the South, Stevenson Ranch (lord have mercy, NOT StevensonS people LOL) to the South, Castaic to the North and all the little neighborhoods in between.

Coming Soon ~ The ones that sellers are still getting ready, or like mine, are using that as an extra boost in my marketing plan ~ we have 31.

Active ~ Yikes, double yikes.... ~ we only have 188. That includes houses, condos, townhouses....in all of SCV. Yikes 188. Crazy low.

In escrow, buyers & sellers are in mutual agreement and getting through the disclosure, inspection, loan process... ~ we have a whopping 606. That's pretty remarkable. Betting about 20% are sellers trying to find replacement home during escrow.

And, closed escrow in the last 30 days? 420. Awesome, right? Definitely awesome.

When will this change? Well, my crystal ball says: Hah, just kidding, I don't have one. But, it's all about inventory and interest rates. As soon as we can get some more sellers on the market, it'll start to settle down.

Wanna chat about Real Estate? Just holler. I love talking with people, hashing through ideas, working out problems, making plans for real estate dreams to come true.

~ Lauren@KeepYourWitz.com ~ (661) 313-5470 ~ www.KeepYourWitz.com ~

In A Sellers Market ~ Don't Make This Mistake

We are currently in the most wild Sellers market I've seen in the 2 decades I've been selling homes. I watch the prices of homes coming on the market and closing escrow....and I shake my head. Literally say WOW so many times during the day.

I saw someone yesterday on Instagram with a picture of herself holding a sign that said "Sold Over List Price". I almost laughed out loud.

EVERYTHING is selling over list price in my community. Well, almost everything....

I took this picture of my computer screen this morning. Closed sales in my market area in the last 24 hours. Notice all those blue up arrows? Those are the ones that the price increased at closing to higher than the original list price.

But, see? Even in a Sellers market, there are 3 that have red down arrows. In 3 different price ranges too. Those closed for less than original list price.

Now, you're thinking well that one had this problem, or that one backed a busy street, or the other one had a home of choice contingency.....blah, blah, blah. 

Price the house right from the start and you won't see red down arrows next to your home....lord have mercy, particularly in a Sellers market!

Be wary of the agent you hire to sell your home. Don't list with one just because they say your house is worth 50k more than all the rest. They Are Wrong. The sales data does not lie.

Price your home where the sales data says it should be. Then, and only then, the buyers will come in droves and you'll end up with a lovely blue up arrow next to your home in the MLS when it closes escrow.

Trust me, even though pouring through multiple offers is a helluva lot of work? It's appropriate to price right, get those offers, and pick the cream of the crop from one of them vs. taking the only one that wrote on your over-priced home.

Food for thought. Feel free to ask my anything! 

~ Lauren@KeepYourWitz.com ~ www.KeepYourWitz.com ~ (661) 313-5470

Home Loan Rates April 2021

Thanks to one of our Local Lenders! Here's the Rate Sheet I received This week! 

Rates have been below 3.50% 18 months in the past 60 + years.  

Below 3% - 7 months in the past 2021 years!   

• 30 year conventional loans are back to the low 3’s still
• 30 year Government Loans (FHA / VA) are in the mid to high 2’s  
• High Balance Loans $548,250.00-822,375.00 are in the low to mid 3’s
• Jumbo loans above $822,375.00 are in the low to mid 3’s.  
• 5/1, 7/1, 10/1 Arms are in the low to mid 2’s!
• Bank statement loans – They are available with 10% down again!  High 3’s to low 5’s depending on down and credit score.
• Stated income loans  - One bank with 30% down, but everything else has to be perfect!   Also in the mid 4’s.
• 0 down loans are in the low 3’s  - 660 credit score min right now!   Mid 3’s for the most part
• Private Money lenders – hard Money Loans - 35% down! 
• First time Buyers Tax Credits are back, but on a very limited basis!  20% Tax credit on the interest they pay!  Fabulous program! 
• Bridge Loans – are typically 5.99% with limited fees - But they get you where you need to go! 

Interest rates are subject to change without notice!  Above are LA County Loan Limits. And, not everyone gets the same rate!

Fancy Schmancy Dining Rooms?

Reading Houzz this morning and came across an article about Seriously Stylish dining rooms. And, I thought..."Do the regular Joe's really eat in their dining rooms these days?"

When I had kids, I made sure we always ate at the dining room table. Chat about our day with no distractions. It was a great way to enjoy family time. I think that's what they did in 'the olden' days as well.

With all the electronics capturing all our attention now, I wonder if people really do eat in their dining room. When showing homes, it's never been a gotta have feature.

This is the full Houzz article, by the way: Seriously Stylish!

This is the one that caught my eye!

Currently, the hubby & I have a tendency to eat in front of the TV on a great big coffee table that lifts up a client made for me! It's still a great time for us to relax, not look at our phones. BUT, we are watching American Idol or some other nonsense at the same time.

When we have guests, we hit the dining room table. But, dang, mine isn't quite so stylish as this one. AND, this set-up was one of the cozier of the bunch.

So, curious about you guys? Click on the Houzz article link, take a peek at those fancy schmancy dining rooms and let me know your thoughts.

14 Offers on One - 9 on Another - No Regular Person Could Handle That Except an Experienced Realtor....IMHO.

Don’t Sell on Your Own Just Because It’s a Sellers’ Market

In a sellers’ market, some homeowners might be tempted to try to sell their house on their own (known as For Sale By Owner, or FSBO) instead of working with a trusted real estate professional. When the inventory of homes for sale is as low as it is today, buyers are eager to snatch up virtually any house that comes to market. This makes it even more tempting to FSBO. As a result, some sellers think selling their house will be a breeze and see today’s market as an opportunity to FSBO. Let’s unpack why that’s a big mistake and may actually cost you more in the long run.

According to the Profile of Home Buyers and Sellers published by the National Association of Realtors (NAR), 41% of homeowners who tried to sell their house as a FSBO did so to avoid paying a commission or fee. In reality, even in a sellers’ market, selling on your own likely means you’ll net a lower profit than when you sell with the help of an agent.

The NAR report explains:

“FSBOs typically sell for less than the selling price of other homes; FSBO homes sold at a median of $217,900 in 2020 (up from $200,000 in 2019), and still far lower than the median selling price of all homes at $242,300. Agent-assisted homes sold for a median of $295,000...Sellers who began as a FSBO, then ended up working with an agent, received 98 percent of the asking price, but had to reduce their price the most before arriving at a final listing price.”

When the seller knew the buyer, that amount was even lower, coming in at $176,700 (See graph below):That’s a lot of money to risk losing when you FSBO – far more than what you’d save on commission or other fees. Despite the advantages sellers have in today’s market, it’s still crucial to have the support of an expert to guide you through the process. Real estate professionals are trained negotiators with a ton of housing market insights that average homeowners may never have. An agent’s expertise can alleviate much of the stress of selling your house and help you close the best possible deal when you do.

Bottom Line

If you’re ready to sell your house this year and you’re considering doing so on your own, be sure to think through that decision carefully. Odds are, you stand to gain the most by working with a knowledgeable and experienced real estate agent. Let’s connect to discuss how a trusted advisor can help you, especially in today’s market.

And, The Winning Bidder Is......

 Why You Should Think About Listing Prices Like an Auction’s Reserve Price

For generations, the homebuying process never really changed. The seller would try to estimate the market value of the home and tack on a little extra to give themselves some negotiating room. That figure would become the listing price of the house. Buyers would then try to determine how much less than the full price they could offer and still get the home. The asking price was generally the ceiling of the negotiation. The actual sales price would almost always be somewhat lower than the list price. It was unthinkable to pay more than what the seller was asking.

Today is different.

The record-low supply of homes for sale coupled with very strong buyer demand is leading to a rise in bidding wars on many homes. Because of this, homes today often sell for more than the list price. In some cases, they sell for a lot more.

According to the Home Buyers and Sellers Generational Trends report just released by the National Association of Realtors (NAR), 45% of buyers paid full price or more.

You may need to change the way you look at the asking price of a home.

In this market, you likely can’t shop for a home with the old-school mentality of refusing to pay full price or more for a house.

Because of the shortage of inventory of houses for sale, many homes are actually being offered in an auction-like atmosphere in which the highest bidder wins the home. In an actual auction, the seller of an item agrees to take the highest bid, and many sellers set a reserve price on the item they’re selling. A reserve price is the minimum amount a seller will accept as the winning bid.

When navigating a competitive housing market, think of the list price of the house as the reserve price at an auction. It’s the minimum the seller will accept in many cases. Today, the asking price is often becoming the floor of the negotiation rather than the ceiling. Therefore, if you really love a home, know that it may ultimately sell for more than the sellers are asking. So, as you’re navigating the homebuying process, make sure you know your budget, know what you can afford, and work with a trusted advisor who can help you make all the right moves as you buy a home.

Bottom Line

Someone who’s more familiar with the housing market of the past than that of today may think offering more for a home than the listing price is foolish. However, frequent and competitive bidding wars are creating an auction-like atmosphere in many real estate transactions. Let’s connect so you have the best advice on how to make a competitive offer on a home in our local market.