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.