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!