Ready to Re-Do Your Kids Room for 2024?

Well, if you haven't planned for things to do in the new year, this article sure made me think some of you would like to re-do your kids rooms! 

As our lives change, we change things up in our home. New furniture, new towels, sheets. We re-paint, change counters, cabinets, and more.

Kids rooms can get a wee bit lost in the shuffle. My kids were thrilled with new Ninja Turtle sheet/comforter sets as a new bedroom!

But, and the article below all the pictures, shows TEN kids 'spaces' of 2023 that caught a lot of peoples eyes while perusing Houzz!

These ones caught mine..... 

SF Design Build - this is that whole 'mid-century modern' I keep seeing. 

But, cool for the kid to peek through those slats and not fall out!

Beth Howley Creative LLC - Either there are a ton of kids living in this home

 or they like to have a lot of slumber parties! 

Jamie Bush & Co - I couldn't help myself. This was just too cute for words.

Some little girl would absolutely LOVE this!

Susie McKechnie Interiors - Obviously for the young lady that is starting to grow up a bit.

Have you got one of those yet? 

And, here's alllll the ones via Houzz! 👇

 The Top 10 Kids’ Spaces of 2023 👈

Navy Son Comes Tomorrow & SCV Home Sales Activity December 2023!

Yes, I normally write in my blog these days on Fridays. But, our Navy son is coming for a week and we pick him up at the airport tomorrow. So, here you go... oh my goodness, on a Thursday!

Santa Clarita from Acton to Stevenson Ranch, Newhall to Castaic. All the communities in between.

As of this moment we have:

At the beginning of this year it was similar, but, we had 100 more homes available for sale!

Thankfully interest rates have gone down. I know, broken record. I am crossing fingers, toes, legs, and eyeballs, hoping that the fed does hold the course with 3 further downward rate changes in 2024.

This year was a good year for Leslie, Jennifer, and myself. We helped quite a few people with their real estate needs. Wasn't like 2020-2021, but it was still a healthy market for a lot of families.

We already have a couple of sellers in the throes of getting their home ready for market. In and out of Santa Clarita. Yes, we do go outside the SCV bubble ... at times.

And reminder, we can assist you in locating a great agent out of state if you don't have any friends where you're going to refer you to one they know. We know what to ask, what to look for, how to find you the closest to us we possibly can.

Wishing you the best of the rest of 2023 and we'll talk again in .... Oh My ...2024!!!

The Fed Holds Rates Steady, Expects 3 Rate Cuts In 2024

 The Fed holds rates steady, expects 3 rate cuts in 2024

The Fed's decision marks the fourth pause in 2023 after hiking rates 11 times since March 2022

HousingWire: By Sarah Marx and James Kleimann

The Federal Open Markets Committee (FOMC) held its short-term policy interest rate steady at a range of 5.25% to 5.5% at its last meeting of the year on Wednesday. It was the fourth pause recorded in 2023.

Federal Reserve Chairman Jerome Powell said that while inflation remains ‘elevated,’ the Fed anticipates making three 25 basis point rate cuts in 2024, a signal to Investors that hikes are over and a new phase in monetary policy is approaching.

In other words, hurrah!

The bond market responded in kind, with the 10-year Treasury yield falling to 4.0% late afternoon on Wednesday, its lowest level since late July.

“Additional rate hikes no longer appear to be part of the conversation. It is all about the pace of cuts from here,” said Mike Fratantoni, the chief economist of the Mortgage Bankers Association. “This is good news for the housing and mortgage markets. We expect that this path for monetary policy should support further declines in mortgage rates, just in time for the spring housing market. We are forecasting modest growth in new and existing home sales in 2024, supporting growth in purchase originations, following an extraordinarily slow 2023.”

In 2023, the Fed hiked the benchmark federal funds rate by a quarter-point at four meetings, most recently in July.

Financial conditions have eased since the last FOMC meeting on Nov. 1. The benchmark 10-year Treasury yield fell to 4.2% during the inter-meeting period from 4.8%. Simultaneously, futures markets priced in a higher chance of more rate hikes by the end of 2024. 

Despite a stronger-than-expected November jobs report, the slowing growth pace of new jobs, the slowing of wage growth and the modest rise in the unemployment rate suggest a cooling of the economy in the coming year, Selma Hepp, chief economist at CoreLogic, said in a statement last week. Meanwhile, overall inflation slowed in November but core inflation remained stubbornly high. Many economists say the current Fed policy is restrictive enough, if not too restrictive.

Rate relief in 2024

At the beginning of November, Freddie Mac’s Primary Mortgage Market Survey index hovered just below 8%. It now sits just above 7%, bringing some relief to rate-sensitive homebuyers. 

While conditions have improved, mortgage rates remain high. Prospective homebuyers bear the brunt of the lack of affordability while home sellers continue to cling to their historically low rate, pandemic-era mortgages.

No industry has been harder hit by the Fed’s monetary policy in 2023 than mortgage.

According to TransUnion, mortgage originations are down nearly 37% year-over-year, from 1.9 million in Q2 2022 to 1.2 million in Q2 2023. Dozens of lenders have gone out of business or been forced to merge in 2023.

Economists in the housing space see better days ahead.

“The Fed’s projections for 2024 will continue to anticipate a normalization in monetary policy in the year ahead,” said Realtor.com Chief Economist Danielle Hale.

Hale has forecast mortgage rates to ease further in 2024 as inflation improves and Fed rate cuts draw closer.

“Mortgage rates could near 6.5% by the end of the year, a key factor in starting to provide affordability relief to homebuyers,” Hale said. 

Among the first customers to benefit from reduced interest rates would be those who are currently making payments on mortgages with high rates. 

According to TransUnion data, since January 2021, there have been 3 million new mortgages originated with interest rates of 6% of higher, the total balance of which being over $1 Trillion. The monthly payments of each of these high interest mortgages averages $2,201.

If interest rates dropped to even 5.5%, it could result in significant savings for homeowners, as refinancing at that rate could result in an average monthly payment of $1,917 for them, a reduction of $284 every month, said Michele Raneri, VP of U.S. research and consulting at TransUnion. “This would represent nearly $300 a month that these homeowners would be able to use elsewhere in this continued high cost-of-living environment in which every dollar counts.”

We are extremely hopeful!

Holiday Decorating When Selling Your Home

Generally I prefer that you do not do a complete holiday decoration if you are selling your home. It also depends on the type of market we are in, of course. If it's a put up a sign and your house is sold kind of market, have at it. However, if it's a more normal market, best not to do too much decorating as that's a sure sign that the house has been languishing on the market if the pictures are all about Christmas and it's now Valentine's day.

But, just to show I'm not the only one.....

Courtesy of Kara Wahlgren @ HGTV:

"Staging Tips for Selling During the Holidays. 

Before you deck the halls, see which holiday decor can help you sell.

It’s the time of year that calendars are packed with holiday parties, budgets are strained by gift-giving and the roads are covered in freshly fallen snow. Alas, 'tis not the season for real estate. But the good news is that the few brave house-hunters who do venture out are serious about buying a house and stylish trimmings will make them want to ring in the new year in your home.

“Holidays can be personal on a lot of levels, but you want to make sure your decor is neutral,” advises Amy Powers, owner of Accent Home Staging & Interiors of Atlanta. “You want to romance your buyer, not invite them to your Christmas party.”

Try these tips to get buyers in the right spirit:

Clean and stage. “Before you decorate, your house needs to be staged,” Powers says. If your living room is already piled high with clutter and tchotchkes, your ceramic reindeer collection is only going to add to the sense of overcrowding.

Create a cozy vibe. The less-is-more mantra of home staging may tempt you to forgo holiday cheer this year. But a few subtle touches like a bowl of pinecones, an evergreen wreath, or a pot of cider simmering on the stove can create a warm and festive feeling in your home.

Complement your palette. Before you start untangling your tinsel, make sure your holiday collection matches your current decor. If your living room is painted a soothing ocean-blue hue, skip the clashing red garland and opt for white snowflakes or a silver glass-ball wreath. If you’ve got an earthy color scheme, accent with rich tones like cranberries, forest greens and gold.

Accentuate the positive. Too many trimmings may distract buyers, but the right accessories can draw attention to your home’s best features. Dangle mistletoe in an arched doorway, or display your menorah on the ledge of a bay window; just don’t block a beautiful view with stick-on snowflake decals or clutter an elegant fireplace with personalized stockings.

Go light on lights. Step away from the inflatable snowman, Clark Griswold. One man’s “merry” is another man’s “tacky,” so tone down any garish light displays while your home is on the market. (No, your neighbors didn’t pay us to say that.) Instead, use simple string lighting to play up your home’s architecture or draw attention to the gorgeous fir tree in your front yard.

Be an equal-opportunity decorator. Leave the life-sized Nativity scene in storage this year, because overtly religious flourishes may be off-putting to some buyers. “You want to keep neutrality throughout, so you can attract any type of buyer,” Powers says. Not sure what qualifies? Powers adds, “No matter what your religion is, you’re not going to feel offended by a nutcracker.”

Mind the tree. A tall Christmas tree can help you show off your two-story great room, but make sure the wide base won’t overwhelm the floor space. If your living area is on the small side, save space with a skinny tree. Swap the gaudy heirloom ornaments and trim your tree in a cohesive theme such as icicle lights and silver tinsel, for example, or blue and gold glass balls.

Clear the clutter. A few decorations can stir the holiday spirit, but don’t feel obliged to hang every last ornament. “A lot of people, when they decorate, tend to use all the extra space in their house,” Powers says. “You still want each space to look as spacious as possible.” Limit yourself to a few hints of holiday flair, but stash the rest in the basement for now. If you start to miss your Santa figurines, just remember that with a little luck, you’ll be celebrating next year’s holidays in a new home. And you can decorate that place any way you please."

I agree with what she said in it's entirety!

If you wonder what's too much in the way of decorations? You likely already realize it.

But, we're happy to pop over and tell you our humble opinion.

Happiest of Holidays to you all!

Crystal Ball Housing Time

So many people wondering where the housing market is going. People look to me any my 'family' of agents for our opinions. So we share them. And, while between the three of us, we have 40+ years experience, we are still just using that experience to project what we expect will happen. Not what we absolutely know will happen. 

2024 is likely going to swing the market a bit. It's been an intense Sellers market for several years now. Interest rates are below 8, but not by much. I've seen a few price reductions already too. California home insurance costs and availability will continue to plague. 

Good side to be thankful for? Inflation is easing just a tad. If that continues, albeit slowly, we should see a further reduction in home loan interest rates. As rates creep down a bit, we'll see a few more homes on the market as it becomes an easier pill to swallow for a Seller to repurchase a home that currently has a below 5% rate.

So, it's really a huge partnership with inflation. Housing / Inflation. They go hand in hand. We need to get that under control so we can get interest rates down. Get more inventory. Get homes more affordable. Buyers want to buy, Sellers want to sell. Right now we are still in the 'need' to sell or buy, not just want.

I had a client just this week that found out what their preapproval looked like with the higher rates. Now, they are a strong 'want', but we still need to find out how we're going to make it happen financially.

Another buyer of ours was just a 'meh, I want', but they moved forward with a step loan to get into the home with expectations of rates going down to refi later.

An upcoming Seller with a tenant occupied property is having their tenants talk to a lender. They don't want to move. Would like to buy the house. But, can they? We shall see.

Interest rates, lack of inventory, inflation. If that all gets better, housing will to. So, see? While we expect it to get better, our experience says it should, we make no promises. It's just our little crystal ball we're reading for you.

Santa Clarita Home Sales Info - November 17, 2023

 Well, first off, THANK YOU!!! 😊

Even in this wild market, you've entrusted us with your home purchases and sales over and over again. You've referred many people to us, and we appreciate the trust you have placed in our open hands. Thank you from the bottom of our hearts. 💗

On to the home sales info:

Home sales in SCV, including Acton, Agua Dulce, Canyon Country, Saugus, Newhall, Valencia, Stevenson Ranch, Val Verde, and Castaic were pretty much the same as last month as you can see in the picture.

Interest rates have been high, dropped down for a moment, back up again. Inventory is at best a 1.5 month supply which is what is keeping home sales moving even amongst the high interest rates. 

Please give congratulations to our Jennifer!!! 

This girl is working so hard for our clients and it shows!!!

It's weird for me to not see my name on our sales boards, Zillow, top producers, etc. But, my ladies are doing all the footwork and I'm in the background when you or they need me. I'm completely aware of the transaction/contract as it's happening, but I give all the recognition to them. And, I'm happy to see their success' through all of you that trust me to trust them.

If you need anything, give me a jingle. If you want to talk about Real Estate, I'm always around. If you want to buy or sell a home, we've all got you covered.

Wishing you all the joys that the upcoming holiday season should bring.

Lauren, Leslie, & Jennifer.

Commission Lawsuit - Thoughts/Opinions/Facts

So, yeah, it's been rather annoying how many articles I've been getting dripped into my email about the recent huge lawsuit over Real Estate commissions. But, yeah, I've been sucked into reading everything that lands in it and searching out other opinions and facts as well.

And, now, here we are wondering what the heck is going to shake out, right? Well, nothing for quite some time as NAR (National Association of Realtors) and the two big brokers all named in the suit, are already in the fight to change the outcome. 

For now, it will be much of the same. Seller will pay a certain commission, always been negotiable, to listing agent who will share generally half of it with the buyers agent. Let's talk about the word negotiable for a moment. We, my 3 lovely ladies and I, charge between 5-6% on all listings, generally 5%, but if it's going to be more challenging for whatever reason, we would charge 6. The 6 number is what is boasting around the lawsuit, saying we've been over charging with that amount. Well, 21 years ago, that was standard, nowadays it's 5%. And, there are plenty of discount brokers who charge less. They come and go, and, well, you get what you pay for. No BS there. You want a top notch attorney? Pay through the nose for one. Best doctor, pay extra out of pocket since they aren't in network, right? Best Realtor? The one that keeps up with allllll the laws, the regulations, etc? Pay them what they are worth too. Now, I just recently had someone ask me for a discount. I graciously said my team works too hard to do discount pricing. She shopped around and came back to our little group of 3 lovely ladies. Should have charged her 6 though, she was a huge challenge the entire time! But, that was negotiable to us. Nope, we generally won't do it for less. She had a choice and realized we were the best choice. Everyone has that opportunity. Every time. 

Sometimes I feel like we make an astronomical amount of money on the sale of, say, a 2M home. And, the last time I sold one of those I gave my buyer a 10K credit out of my earnings. TEN THOUSAND dollars out of my pocket to help him with the pricing on the home. He didn't like me doing it, but I insisted. 

And, then, when I look at the bottom dollar of what I make? After all my expenses? (I'm not going to bother to list them) All my time spent? I deserve every penny I make. And, it's our choice if you're going to get a discount on our fees, our choice. Your choice if you have us work with you or not.

Moving forward, if the lawsuit sticks. Buyers would get screwed royally. I mean royally. Imagine a first time buyer, squeaking every penny they have for a down payment, loan costs, etc. And, now, they have to pay their agent too? You know what will happen? They will ask for a Seller credit to help with those extra costs. Or, they just won't buy a home. And, then? Sellers will either end up paying for the buyers agent fee or there will be more sellers on the market and then they'll have to drop their price a few times to get a buyer in that is willing to pay the extra costs that the Seller has for years, and years, years.

I guess I wouldn't be so opinionated on the subject of Realtor commissions if I hadn't been through the battles over 21+ years helping people in and out of homes. Battles with the other agent, the market, the appraiser, the repairs, the lender, the everyone. We agents do battles for our clients that you aren't even aware of. If all of a sudden, agents were expected to say, work for 1/2? What kind of motivation do you truly think we'd have in answering the phone at 10pm when you're freaking out over a low appraisal. Or calling the escrow officer at 6am to see where the heck the buyers loan docs are so you can get your escrow closed?

A good Realtor deserves a good pay. Just like an artist, an attorney, a doctor, insurance sales person (mine is awesome and worth every penny), and just like you. Just Like You. Would you like to wake up one day and have your boss say, "Oh, hey, we've decided you make too much money so we're cutting your salary by 50%." Nope, You wouldn't like that possibility either.

Okay, there you are. My thoughts, opinions, and the facts on this dilemma. We'll see how it shakes out and how it affects the future of home sellers, buyers, and Realtors.

Farmhouse Is Out, Brutalism Is In ... Home Decor for 2024

But first, the definition of Brutalism in relation to home decor:

"Raw materials, textured surfaces, simple silhouettes and geometric shapes are the hallmarks of Brutalist interior design. The trend comes from the post-Mid-Century era which celebrated grandeur, glam, geometric forms and repetitive patterns." "The brutalist movement first emerged in the 1950s. Led by French-Swiss architect Le Corbusier, its central tenants were the use of concrete, unfinished industrial materials, strong structural elements, rigid shapes, and a monochromatic color scheme."

There was a study done recently, watching notes that agents were putting in listing descriptions. And, of course, those words mean WE agents suspect that is what buyers are looking for. Or, does it mean, WE are nudging these buyers to find those things pleasing to the palette that a home flipper or builder has created? 

I believe there is a place for all home design. This Brutalist style is for an age bracket or location, while the Farmhouse (that is supposedly out) may still be the style of choice for another age and/or homes' location.

While sometimes we are stuck with the furniture and decor sold to create our home environment, we still have to create something that is comfortable for us. For you, your partner, and your family.

Like the one Jennifer just put into escrow for our team, with 14 offers in one weekend. It was vacant, what a delight those home buyers will have creating their new home environment. Whether it be Brutalist, Farm House, or Bohemianism, it'll be alllll theirs!

This Guy's Been Around Fooooorever!

He's actually not a lender I work with a lot, but he has been in our community for a very long time. Somehow I got on his email drip campaign. I scan everything he sends. Sometimes, like today, they become a blog topic!

And, since I'm using some of his info, here's my way of saying thanks!

From Mike Meena:

"Let's dive into the mysterious world of interest rates – the stuff of both financial witchcraft and nightmares. Some folks keep whispering about "buying rates down," last week, we gave Temporary Buydowns a spin. This week, we're unraveling permanent Rate Buydowns. 

 

Imagine you're eyeing a house with a 25% down payment on a $800,000.00 home. Your credit is so good that it practically does your taxes for you, and you're not spending points like a contestant on a game show. The regular interest rate stands at approximately 7.99%. Anything lower than that is your golden ticket to the Permanent Buydown party.

Here comes the punchline: Points in the mortgage world are like that side dish you didn't order but somehow ended up on your plate. One Point equals 1% of the loan amount but is not 1% off of your interest rate. It's like expecting a piece of broccoli to taste like a chocolate truffle.

So, let's break it down with some wit:

Purchase Price: $800,000.00

Loan Amount: $600,000.00

Interest Rates (with the accompanying Points and Monthly Payments):

7.990% - 0 Points - $4,398.41

7.625% - 1 Point - $4,246.76

7.250% - 2 Points - $4,093.06

6.990% - 3 Points - $3,987.79

6.750% - 4 Points - $3,891.59

6.625% - 5 Points - $3,841.87

6.375% - 6 Points - $3,743.22

6.250% - 7 Points - $3,694.30

In the current housing market, some homes are flying off the shelves faster than discount candy on November 1st. But if your property is sitting on the market like that leftover Halloween candy, it's time for a strategy. You have two options: offer to buy down the interest rate or lower the property price.

 

If I were the buyer, I'd be tempted by the 2/1 Buydown like a kid in a candy store. I get a sweet 5.99% rate for the first year, a 6.99% delight in year two, and a 7.99% dessert from year three onwards. With the Permanent buydown of the same 3 points, I get the lifetime membership to the 6.99% club. Not a bad deal, right? OK, maybe not, but get used to it! LOL

If you're selling an $800,000.00 property, parting with $18,000.00 to spice things up sounds good. It's like adding extra cheese to your nachos – always a good call! If your property is sitting, you need to do something, and if you have low offers, a buydown could fill the gap!"

Such a great sense of humor, right?

We've got a 700k property that just hit the market. 

Think our Seller should consider a buydown?

We shall seeeeee..... Open Houses Alllll Weekend!

25133 De Wolfe Rd in Newhall

Enjoy!

Santa Clarita Home Sales Activity October 2023

Just starting the 3rd quarter of 2023 and it's still a wild ride with some definite changes! I keep track of all things Santa Clarita and her surrounding communities. Homes, townhouses, condos! 

Biggest news? Well, other than those dratted interest rates? Inventory has climbed 10% since last month. Still low, but based upon the number of escrows closing in a 30 day period, we now have 1.5 months of inventory.

Happy to say a few of these numbers are from my team!!!

So, in case you can't read the type on the photo....We have:

12 in the Coming Soon Category. You know the ones getting ready to get on market.

342 Active available for sale. That's houses, condos, townhouses in all of SCV.

258 in Escrow. Buyer & Seller are working through their contract, inspections, loans, etc.

And, 209 Sold in the last 30 days. Closed escrow, also known as sold.

Interesting, so you don't have to look for it.... last month numbers were, in the same order:

11 - 1 less

304 - 38 less

293 - 35 more

203 - 6 less....

So, the key items to notice is that we have more inventory, and less in escrow. Why you ask? Because obviously the market is changing a teeny bit. Interest rates, home insurance hikes, and seasonal changes are not going to help this situation. So, what should you do?

Sell when you need to sell, buy when you need to buy.

Whatever is right for you and/or your family.

I would say, off the top of my head, the majority of sellers we have had this year are leaving California. The majority of Buyers are buying due to work or family changes. Need to sell to leave. Need to buy for changes. It was/is right for them.

If you need help deciding if the time is right for you, just holler. Leslie, Jennifer, and myself will always be there to help you in any way we can.

FORBES: California Housing Market: What’s Happening In 2023?

Friday Blog day and I just read, skipping all the dang ads, a good article from Forbes. An honest one. We hear so may thoughts about where the market is and where it's going, this was too good not to share. You're welcome  ..... I copied and pasted so you didn't have to deal with the ads popping up on your screen too!

By Josh Patoka; Contributor

"The California real estate market is one of the most expensive in the U.S. that’s adjusting to higher mortgage rates and rising inflation. However, the Golden State housing market remains healthy in its various regions, including the tech-savvy Bay Area and multi-faceted Southern California.

California Housing Market Trends

Home prices vary across California, but markets may follow the same trends. Several metro areas are in the early stages of transitioning from a seller’s market to a neutral setting—though homes remain expensive for most buyers.

Median Sales Price Trends

The majority of median sales prices across California decreased between 2022 and 2023. 

First-Time Homebuyer Affordability Index

Many first-time homebuyers are struggling to purchase a single-family home in many California counties. For example, CAR reports that the Housing Affordability Index statewide was 36 in Q1 2023 compared to 58 nationwide. A lower number means housing is less affordable. Some of the least affordable regions were the SF Bay Area and LA metro area, for indexes of 35 and 36, respectively. In comparison, the Central Valley is one of the most affordable areas in the state, with scores of 50 in Sacramento and 51 in Fresno—two of the best places to live in California.

California Housing Market Forecast

CAR forecasts an overall reduction in existing home sales and median prices for 2023.

Fewer Homes for Sale

Single-family home resales dropped by 19.2% from 2021 to 2022. The association predicts 7.2% fewer homes will sell in 2023.

Lower Median Home Price

Patient buyers are more likely to be rewarded with lower closing prices. After the median price increased 5.7% year-over-year to $831,500 in 2022, CAR estimates the statewide median price will dip to $758,600 in 2023 for an 8.8% decline.

Real Estate Demand Likely to Remain Steady

While sellers in many counties are more likely to slash asking prices and see their homes remain longer on the market, buyer demand and prices should remain steady and will remain a seller’s market or a neutral market.

California Housing Supply

A key indicator is the current housing supply level. Redfin reports an average supply of two months in May 2023. According to Redfin, “months of supply indicates how long it would theoretically take for every home that’s currently on the market to sell based on the current rate of home-selling activity.” While inventory is increasing, the highest reading within the last five years was in January 2019 with four months of supply. For now, the relative lack of homes for sale is a favorable factor for sellers.

Remote Workers Will Influence Markets

Another pivotal factor for home prices in cheaper counties and rural areas is the increased popularity of remote work. Without the burden of daily commutes to work, people are able to live in more favorable locations. To put this into perspective, the 2022 Consumer Survey from CAR finds that 42% of the 1,114 respondents anticipate working remotely full-time for the foreseeable future. Another 22% are able to work from home on a part-time basis, which allows them to live in locations that are not commuter-friendly.

Is It a Good Time to Buy a House in California?

If the California housing market predictions are accurate, 2023 will be a better year to buy a home in many counties. Prices are forecasted to be at some of the lowest levels since the pandemic real estate boom began, and inventory is increasing. A significant pricing factor occurs when looking for the best mortgage rates. The 30-year fixed mortgage rate climbed to a 20-year high in November 2022 and edged down slightly by the year’s end. More buyers must wait for home prices to drop to offset the extra interest costs and maintain an affordable monthly payment.

Is It a Good Time to Sell a House in California?

In most situations, it’s better for homeowners to sell now instead of waiting because median sales prices are trending lower in many counties and major cities. While homes are remaining on the market longer and price reductions are becoming more common, inventory is still tight and a fair number of homes continue selling above asking price. As a result, you’re able to sell a home quickly. It can also become more difficult to sell if home loan rates continue ticking higher as fewer borrowers can afford homes that are still priced at levels when mortgage rates were at historic lows in 2020 and 2021.

The California real estate market remains seller-friendly, but buyers are regaining bargaining power as the local markets rebalance as 2023 continues."

We're here for all you Real Estate needs. 

Just Holler! 

California Association of Realtors Market Minute September 25, 2023

I've read it all and instead of taking small tidbits for you....I'm sharing the entire article from our Association.

September 25, 2023 - California Association of REALTORS® forecast improvement in the outlook for sales and prices at the Reimagine! Conference in Anaheim as interest rates will begin to ebb in 2024 and housing inventory and sales pick up. However, recently updated guidance shows that consumers should prepare for interest rates to remain elevated for longer than initially anticipated as the economy, and labor markets in particular, continue to outperform expectations and keep inflation above the target range. Homebuying demand, though still grappling with reduced affordability as rates remain above 7%, saw a modest increase last week, but market trends over the past 2 months suggest that buyers and sellers are beginning to negotiate more with most measures of competitiveness having eased slightly, but consistently, over the past 8 weeks.

Unemployment claims show labor market still tight: In addition to a strong jobs report for August, which showed a net increase of 23,100 new nonfarm jobs, the latest weekly data showed that Californians were filing new claims for unemployment insurance at the lowest rate since October of 2022. Last week, 35,040 new claims were filed with the state’s Employment Development Department—roughly 1,500 fewer claims than were filed the week prior, which is more than 28,000 few UI claims than were filed during the second week in January. Although tightness in the labor market has been a source of upward pressure on inflation, remaining at or near full employment has helped broader macroeconomic growth perform above expectations over the short run.

New C.A.R. forecast shows stronger sales and prices in 2024: Last week, C.A.R. released its housing market and economic forecast for 2024, which predicts a modest increase in both home sales and in home prices next year. Although the state is not expected to return to the elevated levels reached during 2021, existing single-family transactions are expected to rise to nearly 330,000 units. This would represent a 22.9% increase from a projected 266,100 units this year. Home prices, which continue to be driven higher by a dearth of available inventory, will continue to rise in 2024, with the median price expected to reach $866,300 on an annual basis—a 6.2% increase from 2023 and slightly higher than the original projection for last year. The recovery is likely to remain subdued, but both inventory and sales should pick up in the second half of the year as rates begin to dip slightly.

Mortgage applications rise slightly after 8 consecutive declines: Demand for homes continues to come in well below the 15-year highs reached over the past two years, but new mortgage purchase applications perked up slightly last week despite rates trending higher. The overall index rose 12% last week, bucking the 8-week slide that began in July. Despite this modest bump, September as a whole is coming in 12% below August and more than 25% lower than September 2022. There remains growing interest from investors, second/vacation home sales, and from international buyers, but first-time buyers remained challenged by decreasing affordability while repeat sales are locked into their current homes by low rates on their existing mortgages and an increasing number of long-time homeowners facing potential capital gains if they were to sell their existing residence.

Fed signals higher for longer strategy at latest FOMC meeting: The Federal Reserve’s Federal Open Market Committee (FOMC) met last week and voted to keep their target interest rate the same at 5.5%. Although this was the expected outcome by oddsmakers, policymakers did signal that they may have to keep rates higher for longer in order to ensure that inflation is tamed. The ‘dot plot,’ which is an estimation of where policymakers think rates need to be in order to achieve their dual mandate of full employment and price stability, showed that rates will need to remain elevated longer than was anticipated when they made their last set of projections at the end of June. Three months ago, consensus expectations amongst voting members called for a 4.5% Fed Funds Rate in 2024, which equated to a 100 basis-point reduction. The new average for 2024 of 5% means the Fed Funds Rate is currently scheduled to come down roughly half as much next year as originally signaled.

California market softens slightly ahead of winter amidst rising rates: The latest on California’s housing market shows that sales have not dipped back to the lows reached during the winter of 2022, which rates initially rose above 7%. However, transactions did dip below 260,000 units for the first time since January. Additionally, pending sales suggest a sluggish next few months as new escrows dipped by more than 23% from 2022’s relatively lackluster pace in August. In addition, competition has eased slightly as we approach the winter months as the number of homes being reduced has been rising in recent weeks while the percentage of homes selling above their listing price on the MLS has been falling. The rebalancing has been slight, with homes sold above asking price down from 52% in June to 46% last week, but it has been consistent for the past 3 months. The market remained characterized by too little inventory, but as the typical homebuying season has ebbed, homes are taking slightly longer to go pending and buyers and sellers are beginning to negotiate more.

Sooooo, what chat think? Might this 'forecast' be correct? 😏

Balconies & Fire Pits? Yes!!

So many people are living in condos, apartments, townhouses with no actual backyard. But, hey, that doesn't mean they can't have a lovely fire by the light of the moon, right?

Now, best to check with your HOA before you spend too much money on a gas-piped in fire pit, but if it's an AOK, then there are so many different ideas.

Regardless of your view, city, woods, water, a cool evening is begging for sitting outside with a warm drink, a fuzzy blanket, and taking the further chill off with a fire-pit!

This one probably is just lit by sterno type inserts. 

I've actually seen a gal make something like this from dollar store items!

Based on that view, I'm betting this was a pricey option. 

But, it goes perfect with the lines of the buildings in the distance, right?

Yeah, that's my kinda view all right. 

And, the firepit may not be gas piped in, 

but it does seem to match the shape of the mountain in the distance fairly well too!

Which one would you pick? 

Well, I suppose it would depend on which view you had from your deck or balcony, right?

Santa Clarita Home Sales Activity September 2023

Just keeping you informed. All things Real Estate. Particularly revolving around my home town of Santa Clarita Valley!!

Today it's about home sales. All of SCV, including the outskirts. Those areas are important too.

We currently have:

Coming Soon - 11 / Active - 304 / In Escrow - 293 / Sold in Last 30 Days - 203

Interest rates are high, inventory is low. Home insurance is high too. But, guess what? Homes are still selling amazingly. Ya need to buy now, you do. Ya need to sell now, you do.

My team currently has 3 homes in the MLS. All 3 are under contract. And, all 3 moved into contract in less than a couple weeks. Buyers? We've got one that we are working with right now. But, we do whatever people need. Buy, Sell, you need it, we help.

Where do we think the market is going? It's probably going to do a seasonal slow down over the next few months. But, if mortgage rates trickle down, we will likely see a bit of a surge of buyers. So, as usual, it's us wishing we had a crystal ball to help your decision making easier. Doubtful that we'll see an influx of sellers coming on market unless the same thing happens. Or, we wait til February and see if the onset of Spring brings them out. 

See, a crystal ball would come in so darn handy right now!

If we can help in any way, just give me a jingle.

I'll get you to the best team member we've got to handle whatever your needs are.

Why You Should Definitely Have A Trust

If you own property, have monetary assets, and have a family, you should have a Trust. YES, you should. Do we? Ugh, hate to admit it, but we still haven't put ours in order. Next on the To-Do list!

My mums passed away last year, she was so organized. Everything was in her Trust. Bank accounts, house, everything. She had given my siblings and I copies of the Trust well before she passed. It was from 20+ years prior. But, she kept it current.

When she passed, it was very simple how things were to be divided. My Big Bro was the executer. Due to the Trust, there was not a single dispute as to how things were to be handled. AND, the taxes for us were completely different from what they would have been if not in a Trust.

The Brief Benefits of Having a Trust:

* Protecting and preserving your assets.

* Customizing and controlling how your wealth is distributed.

* Minimizing federal or state taxes.

* Addressing family dynamics; for example, divorce or blended families.

* Helping a parent or other relative manage their financial affairs.

As a 20+ year Realtor, I've had my fair share of selling properties with and without a Trust in place after the owner passes. Take my word for it, a WILL does not suffice. And, without a Trust, there will be Probate involved, and more taxes to the beneficiaries. 

Family, Money, Death..... there are high emotions and, unfortunately, there can be lots of different opinions. Families can fall apart after a death. But, if you have a Trust in place, it will go a lot smoother. And, yes, I'm saying it again, a lot less costly. 

If you care about your family after death, put your home and assets in a Trust....Now.

If A Seller Gets A Better Offer....

What happens then? Well, once all parties have fully executed a complete contract, the Seller can't do anything. If the Seller submits a Seller Counter Offer to the Buyer via their agent, that opens up a different scenario.

And, therefore, if a Seller receives a better offer from a second buyer before buyer # 1 signs the counter offer and is returned to seller?

Yep, the Seller can orally withdraw, via their agent, that counter offer sent to # 1 buyer and accept buyer # 2 offer. Listing agent must call buyers agent to inform, then immediately send to Buyers agent a W.O.O., Withdrawal of Offer. Can it get sticky? Sure. Times noted and meticulous documentation must be kept if Buyer # 1indicates they have already signed the Sellers Counter Offer and sent back to seller via sellers agent. Unfortunately, if it has not been sent by Buyers agent to Listing agent in a timely manner, that can be the caveat, because to have the sellers counter offer be part of the contract, the buyer must execute and it must be received by Seller, or their agent, prior to Seller accepting another offer.

And, I'd be hopeful that you've hired an agent that does things in a timely manner.

Whether working with a Seller, or a Buyer, timeliness is definitely a huge aspect for a clean transaction.

Oh, and here's a picture of our Valencia Coming Soon listing that Jennifer is taking care of!

And, this girl is definitely timely!

That's why she's working so well with Leslie and I.

Feel free to call Jennifer for any questions @ (661) 435-0935

Hasn't Happened Since April 2002

I got my Real Estate license in June of 2002. April of 2002, home loan rates were 7.13%.  Per CNN, as of yesterday afternoon, mortgage rates were 7.09%. Well, damn. Copied & Pasted a section of that same article for you. See below the picture that I pulled from one of my fave lenders. Definitely seems right today. Do you think we'll feel it's right in 2028?

Rates and home prices expected to stay elevated

With inflation still a concern for the Fed, home buyers can expect borrowing costs to stay elevated.

The bottom line for home buyers is that it will continue to be difficult to find affordable homes as rising mortgage rates are tacked onto already elevated home prices.

This year home buyers have seen rates rise a whole percentage point from the lowest point of 2023, 6.09% in February, to this week’s 7.09%. Compared to a year ago, rates are nearly 2 percentage points higher.

Today’s mortgage rate is 196 basis points higher than a year ago when rates were 5.13%, which means that for the buyer of a median-priced home, the monthly mortgage payment is 17% higher.

More than 90% of homeowners with mortgages currently have a rate of 6% or lower, according to a recent Redfin study, meaning they are staying in their current home, not selling and trading up, which would come with higher borrowing costs. This is making the number of already built homes available to buy extraordinarily low — keeping prices elevated for those looking to buy.

A homeowner who bought a median-priced home with a 20% down payment in January 2022 with a 3.1% mortgage rate is paying about $1,300 a month. That same home at today’s rate would mean a $2,300 monthly mortgage payment, excluding taxes and insurance. Well, Damn again.

For current homeowners who decide to sell, high home prices can help ease the blow of higher mortgage rates. “It is not surprising that with equity near all-time high, over one-in-four buyers is paying all cash for their next home.” 

But unlike existing home owners who can leverage home equity – which is near all time high – to reduce the size of mortgage loans, first-time home buyers are facing much more challenging market conditions.

Plus, with asking rents dipping for two consecutive months, according to Realtor.com, potential first-time home buyers may not feel the same urgency to expedite their home purchase as they did when rents were escalating at a double-digit pace.

“This may result in slower sales churn, but it also provides potential home shoppers with an extended timeframe to carefully consider crucial decisions during the home buying journey.” 

Hard Decision To Make, Yes?

Interest Rates & Buyers Thoughts

I can't even recall the number, but it was a high percentage rate that came back in a buyer survey that 'It Was Not A Good Time To Buy A Home'. I wanna say it was about 92%. That seems crazy high as we are still selling homes in Santa Clarita.

Oh, and then there is this that I just read this morning:

Mortgage rates rise again, but look poised to drop in the fall

The 30-year fixed rate climbed to 6.96% for the week ending August 10, the highest rate since November 2022

Buyers have become accustomed to the lack of inventory and the higher rates...presumably.

However, I've said this before, and I'll just keep saying it. Buyers buy, and Sellers sell, when the time is right for them. Regardless of the lack of inventory, the high interest rates, or the color of the moon.

If the time is right for you, to sell or buy, just holler. 

We'll make it as easy as possible for you.

Santa Clarita Valley Home Sales Activity - August 4, 2023

Good Morning! Housing inventory is still extremely low, but it has gone up 20% in the last couple of months in our pretty valley.

As a reminder, I include: Acton, Agua Dulce, Canyon Country, Saugus, Newhall, Valencia, Stevenson Ranch, and Castaic. They aren't all part of the incorporated SCV, but they do get 'shopped' by home buyers looking in SCV.

I ran these numbers late last night. I was actually kind of surprised by the number of Coming Soon at 19. They'd been hovering under 10 for a few months.

The Active (Available in the picture above) are at 296. Mid June they were 228. Beginning of May, they were 241. So, yes, up 20%. But, still remarkably low. 

In escrow is 287. And, Sold (Closed in the picture) in the last 30 days is 224.

I will tell you that my team has 3 new listings. One that just hit yesterday, 2 more in the 'getting ready' stages. We were pretty quiet for a couple of months, then poof, 3 Sellers said they were ready to sell. Not surprisingly, all 3 are leaving SCV. One out of state, one is actually 75% gone already, the 3rd is moving to another city.

Why is inventory so low? It's been low for a few years. For many reasons of course. Right now, I truly believe it's the interest rates. If Sellers want to sell and Buy a replacement property, it's a tough pill to swallow to go from a 3.5% interest rate to an almost 7% rate. The 3 we have are going to be cashing out. Not rebuying with a loan either. So, those make complete sense.

If you have questions, just holler. We're happy to help.

This is the one that just hit the market!

28377 Connie Court, Santa Clarita, CA 91387

Listed at $649,999

Lauren Witz Greber

Realty Executives Homes

(661) 313-5470 - cell

Leslie Babikan

Keller Williams VIP Properties

(661) 312-3669 – cell

Jennifer Herring

HomeSmart Evergreen

(661) 435-0935 - cell

Excited About A Referral From YOU! 😊
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