Shifting Market ~ But Where Is It Shifting Too?

So, as anyone who has been following real estate for the last couple of years knows, it's been an insanely hot sellers market. Insanely, burn your butt, sellers market!

Properties have been getting a half dozen offers, or more. And, properties have been selling for thousands over list price, lots of thousands over list price!

And, now, interest rates are going up. They have gone up 1.5% in just a few weeks. That can amount to hundreds of dollars on a mortgage payment.

So, needless to say, we are seeing a shift in the real estate market.

My business partner, Leslie, & I have been talking about it for a couple of weeks. I've talked with other active agents about it. Mentioned it a my office meeting. Talked with my title and escrow officers. Computerized showing programs are virtually empty of showing request appointments! We are all seeing it. The showings, on many properties, just went from 30 to 3. The number of offers went from a 1/2 dozen to one. 

I can't help the market, I can only prepare my clients for it as it happens. An active agent is one of the first ones to notice it. Well before you start reading about it in the news. And, of course, depending on which news site you are getting your info from......well, that's the take on the market you're hearing.

I'm an honest to a fault Realtor. I'm going to tell you the truth. And, yes, sometimes the truth hurts. 

I had a conversation with one of my sellers last night. It is what it is. Not happy about it, but I needed to have a face-to-face with them so they truly knew what is happening. So, we set a new game plan in action, we had to.

Interest rates are expected to go up another 6 times this year. Inventory will creep up as well. And, while it's a huge ouch for buyers and sellers alike, looks like we are definitely working towards a more balanced playing field. Won't be overnight, but it's about time.

Working Remotely is Great When House Hunting

Remote Work Trends Mean Flexibility for First-Time Homebuyers

Today's low inventory can be challenging for homebuyers, especially if you’re looking to purchase your first home. But if you're one of many people who work remotely, you may have a great opportunity to use the flexibility you have at work to achieve your homebuying goals this year.

In a recent report, Arch Capital Services explains how the ongoing trend of remote work can open up more options for homebuyers:

“. . . This will enable those who are able to work from home on a part-time or hybrid basis to move slightly farther away from job centers. . . . For workers who secure full-time remote jobs, their place of residence will be determined by affordability and personal preferences.”

Basically, working from home is great news if you’re a first-time buyer trying to find a home that meets your needs and budget. Here’s a deeper look at how it could benefit you.

Extra Flexibility in Your Career Means Extra Flexibility in Your Home Search

If your job is 100% remote, you don’t have to be tied to a specific location or office. So, if you’ve been having a hard time finding what you want in your local area, it may be time to expand your search.

One option you could consider is moving to a place where you’ve always wanted to live, like the mountains, beach, or closer to loved ones. When you broaden your search radius to include those locations, it’ll give you additional homes to consider.

It could also allow you to search for a more affordable location where you have more options in your price range. This can help you achieve two goals – saving money and finding additional features that meet your needs. To truly highlight this benefit, a recent First American article discusses the great ways remote work can really help you with your homebuying goals. Ksenia Potapov, Economist at First American, says:

“For potential first-time home buyers, leveraging their house-buying power in more affordable markets can also help them buy more attractive homes – more square footage and rooms, more options for different home styles and neighborhood amenities – increasing the opportunity to find a home that suits their preferences.”

That means you can use your work flexibility to search for homes with the amenities you need at a lower price point.

Bottom Line

Remote work doesn’t just give you expanded flexibility for your career. If you’re no longer tied to a location because of your office, you have a great opportunity to expand your housing search. Let’s connect to explore how this can open up your options.

Curious About Your Home Equity Gain?

 The Average Homeowner Gained More Than $55K 

in Equity over the Past Year!

If you’re a current homeowner, you should know your net worth just got a big boost. It comes in the form of rising home equity. Equity is the current value of your home minus what you owe on the loan. Today, you’re building that equity far faster than you may expect – and this gain is great news for you.

Here’s how it happened. Home values are on the rise thanks to low housing supply and high buyer demand. Basically, there aren’t enough homes available to meet this high buyer interest,  so bidding wars are driving home prices up. When you own a home, the rising prices mean your home is worth more in today’s market. And as home values climb, your equity does too. As Dr. Frank Nothaft, Chief Economist at CoreLogic, explains:

“Home prices rose 18% during 2021 in the CoreLogic Home Price Index, the largest annual gain recorded in its 45-year history, generating a big increase in home equity wealth.”

The latest Homeowner Equity Insights from CoreLogic shed light on just how much rising home values have boosted homeowner equity. According to that report, the average homeowner’s equity has grown by $55,300 over the last 12 months.

Want to know what’s happening in your area? Here’s a breakdown of the average year-over-year equity growth for each state based on that data.

How Rising Equity Impacts You

In addition to building your overall net worth, equity can also help you achieve other goals like buying your next home. It works like this: when you sell your house, the equity you built up comes back to you in the sale.

In a market where you’re gaining so much equity, it may be just what you need to cover a large portion – if not all – of the down payment on your next home. So, if you’ve been holding off on selling and worried about being priced out of your next home because of today’s home price appreciation, rest assured your equity can help fuel your move.

Bottom Line

Equity can be a real game-changer if you’re planning to make a move. To find out just how much equity you have in your home and how you can use it to fuel your next purchase, let’s connect so you can get a professional equity assessment report on your house.

Yayyyy! Direct Deposit Verifications!

For years, buyers have had to provide paper pay-stubs to qualify for their loan. My husband and I get everything electronically so doing a refi recently caused an extra step for our lender. Pain in the tush, but you do whatever your lender tells you to do to get it done, right?!?!

Apparently a large majority of employees are also receiving their income via direct deposit. I.E., no paper pay stub to speak of.

So, lookie here, Freddie Mac is going to roll out direct deposit income verification! 

“Our direct deposit solution is an innovative, data-driven approach that takes minutes, not days to assess income so our clients can serve more borrowers more efficiently,” said Matt Vincent, Freddie Mac Single-Family vice president of credit and capacity. “Sourcing data directly from the mortgage applicant’s bank account increases accuracy, removes subjectivity, reduces manual underwriting errors and delivers a better experience for borrowers and lenders.”

Freddie Mac has said that additional requirements and, of course, specifics — including the effective date for the new policy — will be in its March bulletin. Not sure how soon this new thing will roll out, but it's definitely a great way to speed up the loan process.

Requiring paper pay stubs is still often the go-to method for mortgage underwriters, & a Freddie Mac spokesperson said the majority of the mortgage market still relies on paper stubs for income verification. Hopefully this will help end some of the 'paper' requirements for a home loan!

Story of The Week ~ "Always Happy to Help"

I bet some of you think that's B.S. when I end a blog or email, or YouTube, etc. with the phrase 'Happy to Help".

Well, a young gal will attest to the truth in that statement from our interaction yesterday!

Almost 10 years ago a couple was referred to me to purchase a home in Santa Clarita. Super nice couple with 2 kids if I'm not mistaken. We looked at a few, then her father got involved and unbeknownst to them purchased a home he saw at an open house for cash so they would have a home!

I was genuinely happy for them, and have stayed in touch ever since. Sharing my new listings, YouTubes, Blog posts, holiday cards, etc. Why you ask? Because you never know when someone is going to need your help. 

Yesterday was that day. 

She literally said "I didn't know who to reach out to!"

But, she thought of me as I'd stayed in touch and offered to help, always.

I read the lengthy email, from my car, and popped her a text right away that I would call her after my next appointment.

A couple hours later I gave her a call. Asked her a few questions, gave her a few suggestions. I could tell she was taking notes of everything I mentioned. She had some options, but had lots to discuss with all parties involved.

And, you know what? It wasn't about SELLING their home. I helped this family because I could. Because I knew more than they did from my Real Estate experience. I strongly suggested they contact a real estate attorney, but to discuss with family first.

I truly am 'Always Happy to Help'. Life is better when you help others.

Curious About How Much Equity You Earned in 2021?

The Average Homeowner Gained $56,700 in Equity over the Past Year

When you think of homeownership, what’s the first thing that comes to mind? Chances are you might focus on the non-financial benefits, like the security or stability a home provides. But what about equity? While it can be overlooked, a homeowner’s equity helps build long-term wealth over time. Here’s a look at what equity is and why it matters.

For a homeowner, your equity is the current value of your home minus what you owe on the loan. So, as home values climb, your equity does too. That’s exactly what’s happening today. There aren’t enough homes on the market to meet buyer demand, so bidding wars and multiple offers are driving prices up. That’s because people are willing to pay more to buy a home. Right now, this low supply and high demand are giving current homeowners a significant equity boost.

Dr. Frank Nothaft, Chief Economist at CoreLogic, explains it like this:

“Home price growth is the principal driver of home equity creation. The CoreLogic Home Price Index reported home prices were up 17.7% for the past 12 months ending September, spurring the record gains in home equity wealth.”

To find out just how much rising home values have impacted equity, we turn to the latest Homeowner Equity Insights from CoreLogic. According to that report, the average homeowner’s equity has grown by $56,700 over the last 12 months.

Curious how your state stacks up? Check out the map below to find out the average equity gain for your area.

How Rising Equity Impacts You

If you’re already a homeowner, equity not only builds your wealth, it also opens doors for you to achieve your goals. It works like this: when you sell your house, the equity you built up comes back to you in the sale. You can use those proceeds to fuel your next move, especially if you’ve decided your needs have changed and you’re looking for something new.

If you’re thinking about becoming a homeowner, understanding the importance of equity can help you realize why homeownership is a worthwhile goal. It builds your wealth and gives you peace of mind that your investment is a wise one, not just from a lifestyle perspective, but from a financial one too.

Bottom Line

Whether you’re a current homeowner or you’re ready to become one, it’s important to know how equity works and why it matters. If this inspires you to make a move, let’s connect to explore your options and find out what steps you need to take next.

~ Lauren Witz Greber ~ (Licensed as Lauren Lefkowitz) ~ Lauren@KeepYourWitz.com ~ 

Santa Clarita Housing Activity January 2022

Well, happy 2022! And, yep, another year with COVID precautions to consider when selling your home.

But, with the following information about home sales in SCV, you may want to pay attention to this picture:

It is Spot (HaHa Dog Name) On!

I actually just met with upcoming sellers again yesterday and they were surprised at the value of their home and how quickly it would likely sell.

With these numbers, it's hard not to!

Currently in all of SCV, we have:

Coming Soon - 18

Active - 167

Under Contract/In Escrow - 310

Closed Escrow in the Last 30 days - 284

If you have questions or concerns about selling your home right now, please just reach out. Happy to chat. (661) 313-5470 or Lauren@KeepYourWitz.com.

Do You Agree With the Experts for Housing in 2022?

 Expert Insights on the 2022 Housing Market

As we move into 2022, both buyers and sellers are wondering, what’s next? Will there be more homes available to buy? Will prices keep climbing? How high will mortgage rates go? For the answer to those questions and more, we turn to the experts. Here’s a look at what they say we can expect in 2022.

Odeta Kushi, Deputy Chief Economist, First American:

“Consensus forecasts put rates at about 3.7% by the end of next year. So, that's still historically low, but certainly higher than they are today.”

Danielle Hale, Chief Economist, realtor.com:

“Affordability will increasingly be a challenge as interest rates and prices rise, but remote work may expand search areas and enable younger buyers to find their first homes sooner than they might have otherwise. And with more than 45 million millennials within the prime first-time buying ages of 26-35 heading into 2022, we expect the market to remain competitive.”

Lawrence Yun, Chief Economist, National Association of Realtors (NAR):

“With more housing inventory to hit the market, the intense multiple offers will start to ease. Home prices will continue to rise but at a slower pace.”

George Ratiu, Manager of Economic Research, realtor.com:

“We also expect a growing number of homeowners to bring properties to market, taking some pressure off high prices and offering buyers more options.”

Mark Fleming, Chief Economist, First American:

“Strong demographic demand will continue to act as the wind in the housing market’s sails.”

What Does This Mean for Buyers?

Hope is on the horizon for 2022. You should see your options grow as more homes are listed and some of the peak intensity of buyer competition starts to ease. Just remember, rising rates and prices are a great motivator for you to find the home of your dreams sooner rather than later so you can buy while today’s affordability is still in your favor.

What Does This Mean for Sellers?

Make no mistake – this sellers’ market will remain in 2022 as home prices are projected to continue climbing, just at a more moderate pace. Selling your house while buyer demand is so high will truly put you in the driver’s seat. But don’t wait too long. With more listings projected to become available, your ideal window of opportunity to stand out from the crowd won’t last forever. Work with an agent who knows your local market and current inventory conditions to ensure you have the support you need to make an educated and informed decision about selling in the coming year.

Bottom Line

If you’re thinking of buying or selling, 2022 may be your year. Let’s connect to discuss your goals and the unique opportunities you have in today’s housing market. Lauren@KeepYourWitz.com / (661) 313-5470.