East San Diego County Real Estate BlogRecently posted or modified blog postshttps://www.eastsandiegocounty.com/blog/Copyright EastSanDiegoCounty.com2024-03-01T11:02:54-07:00tag:eastsandiegocounty.com,2012-09-20:33213Selling As-Is: Pros and Cons for Sellers in San Diego 2024San Diego's real estate market is known for its competitiveness and diversity. No matter where you are in San Diego, selling a property can be both exciting and challenging. One question sellers often face when selling their home is whether or not they should sell “as-is.” Let's dive into the pros and cons of selling as-is in today’s San Diego housing market.
Understanding As-Is Sales
Selling a property as-is means offering it in its current condition without making any repairs or renovations. In California, including San Diego, sellers are legally required to disclose any known defects or issues with the property. This differs from traditional sales where sellers typically invest time and money into sprucing up their homes before listing.
Pros of Selling As-Is
One of the primary benefits of selling as-is is the flexibility it offers to sellers. By avoiding the need for repairs or upgrades, sellers can save both time and money. In a competitive market like San Diego, where buyers often seek move-in ready homes, selling as-is can attract investors and cash buyers who are willing to overlook cosmetic flaws for the sake of a quicker transaction.
Flexibility: Sellers have the flexibility to sell the property without making any repairs or renovations.
Time Savings: Selling as-is can save time, as there's no need to wait for repairs or updates to be completed before listing the property.
Cost Savings: Avoiding repairs and upgrades can save sellers money on renovation expenses.
Attracting Investors: As-is properties often attract investors and cash buyers who are willing to overlook cosmetic flaws for the sake of a quicker transaction.
Quicker Sale: In competitive markets, selling as-is can lead to a quicker sale due to the appeal to investors and buyers looking for fixer-upper opportunities.
Simplified Process: Selling as-is simplifies the selling process, as there's less negotiation over repairs or credits during the transaction.
Potential for Higher ROI: For sellers who are unable or unwilling to invest in repairs, selling as-is may still yield a higher return on investment compared to the cost of renovations.
Cons of Selling As-Is
However, selling as-is can also have its drawbacks. One significant concern is the potential for a lower sale price compared to properties that have been updated or renovated. Additionally, limiting the buyer pool to those willing to accept the property's current condition may result in longer listing times or difficulty finding the right buyer.
Lower Sale Price: As-is properties typically sell for less than homes that have been updated or renovated.
Limited Buyer Pool: Selling as-is may limit the buyer pool to those willing to accept the property's current condition, potentially prolonging the listing period.
Risk of Inspection Issues: Buyers conducting inspections may uncover issues with the property, leading to renegotiation or even deal termination.
Perception Challenges: Some buyers may perceive as-is properties as neglected or poorly maintained, impacting the property's marketability.
Potential Legal Liability: Sellers are still obligated to disclose known defects or issues with the property, which could lead to legal issues if not properly addressed.
Difficulty Securing Financing: Buyers using conventional financing may face challenges securing loans for as-is properties, as lenders may require certain repairs to be completed before approval.
Emotional Attachment: Sellers may find it difficult to part with their home in its current condition, especially if it holds sentimental value or requires significant repairs.
Selling As-Is in East County San Diego
In recent years, the San Diego real estate market has seen inventory shortages and rising home prices. The demand for as-is properties varies depending on factors such as location, demographics, and economic conditions.
In East County San Diego, selling as-is aligns well with the preferences of certain buyer demographics. Properties with acreage or unique features may appeal to buyers seeking a project or investment opportunity. However, sellers should be mindful of the potential challenges.
Strategies for Maximizing Your Success
To maximize success when selling your property in East County San Diego, sellers should first define their goals. Are you hoping for a preparation process without spending time on repairs? Are you hoping to maximize your profit? Consulting with an experienced real estate agent can be extremely helpful when deciding your goals.
If selling as-is, focus on highlighting the property's potential while being transparent about its current condition. Pricing strategies should be competitive, and reflective of the property's value in its current state. Marketing efforts should target investors, cash buyers, and individuals seeking renovation projects.
Conclusion
Selling as-is in the San Diego market, particularly in East County, can offer both advantages and challenges for sellers. By understanding the market dynamics, implementing effective strategies, and leveraging the property's unique features, sellers can navigate the process successfully and achieve their goals in today's competitive real estate landscape.
Ready to sell your house in San Diego? Contact Steven Rotsart, your local East County San Diego real estate agent. 2024-03-14T09:36:00-07:002024-03-01T11:02:54-07:00Steven Rotsarttag:eastsandiegocounty.com,2012-09-20:33212What You Need to Know About Moving to San Diego from Out of StateMoving to a new city, especially one as vibrant and diverse as San Diego can be thrilling and daunting. In this guide, we'll discover the top 5 things to know before moving to San Diego, explore the San Diego lifestyle, and learn about housing options in San Diego.
San Diego Overview
San Diego, often referred to as "America's Finest City," is a coastal metropolis located in Southern California. The city is known for its stunning beaches, diverse neighborhoods, and thriving economy. With its rich cultural influences, food, traditions, and beautiful weather, San Diego offers residents an enviable lifestyle year-round.
5 Things to Know Before Moving to San Diego
1. Weather
San Diego is known for being sunny year-round, and there is truth to that stereotype. San Diego averages only 41 days of rain per year, with sunny skies for over 70% of the year. So enjoy the warm, sunny weather!
Unfortunately, with the sun comes drought. San Diego has been in and out of drought for decades. So it’s extremely important to be water-conscious when living in San Diego.
2. Earthquakes
Like most places in California, San Diego experiences earthquakes. The USGS predicts that San Diego may experience a 7.0 or greater magnitude quake in the next 30 years. If you live near a fault line, taking out earthquake insurance isn’t a bad idea. That said, most earthquakes here are very minor and hardly even noticeable.
3. Cost of Living
No surprises here, the cost of living in San Diego is very high. In 2023, San Diego became the #1 most expensive place to live in the United States. Before making your move, make sure you consider all the costs of moving to and living in San Diego.
4. Traffic and Transit
With the increasing population, traffic in San Diego can be no joke. While nowhere near LA level, driving during rush hour can be a nightmare. However, outside of rush hour driving in San Diego isn’t that bad.
Another way to avoid the traffic is to take advantage of San Diego’s public transportation system. Over the past several years, San Diego has been investing in making public transport more accessible and available. The trolley system especially is a great way to beat road traffic.
5. Recreation
Thanks to the nice weather and gorgeous landscapes, outdoor recreation is a San Diego favorite year-round. San Diegans love surfing at the beaches, hiking our local mountains, and picnicking at Balboa Park or by the Bay. In the winter, locals also love making the short drive up our local mountains for snowboarding and skiing.
San Diego Lifestyle
Embracing the Laid-back Vibe
Embrace San Diego’s relaxed pace of life and laid-back attitude. As a newcomer, make sure you take time to get to know the city. Explore the city's diverse neighborhoods, culinary scene, and outdoor attractions. It's common to see locals enjoying outdoor pursuits like surfing, hiking, or simply lounging at the beach.
Adapting to Local Norms and Values
Living in San Diego it’s important to respect cultural diversity and be open to new experiences. San Diego prides itself on its inclusivity and tolerance. Embracing different perspectives and customs is key to thriving in the community.
Housing Options and Neighborhoods
The cost of living in San Diego is expensive, but there are more affordable options. Communities in East County San Diego, such as El Cajon, Spring Valley, and Santee, are great options. Located along major freeways, these neighborhoods are all less than half an hour from the beach.
Conclusion
Moving to San Diego from out of state is a journey filled with opportunities for growth and discovery. Whether you're drawn to the surf, sunshine, or culture, San Diego invites you to make America's Finest City your own.
Ready to make San Diego your home? Contact Steven Rotsart, your local San Diego Real Estate Agent.2024-03-05T10:18:00-07:002024-03-01T11:02:15-07:00Steven Rotsarttag:eastsandiegocounty.com,2012-09-20:33211Suburban Homesteading in East County San Diego 2024If you have been on social media lately, you may have heard of “suburban homesteading.” Suburban homesteading is a sustainable living and self-sufficiency movement that started in the 90s and has been picking up steam in recent years. Today’s suburban homesteaders prove you don’t need acres of land to live a self-sufficient lifestyle. Having your own homestead is completely doable!
If you’re looking for somewhere to start a suburban homestead, East County San Diego is the perfect place. Suburban homesteading has gained popularity in East County San Diego thanks to the favorable climate, available land, and supportive community.
What is suburban homesteading?
Suburban homesteading is all about self-sufficiency and sustainability. It’s perfect for those who want to live self-sufficiently, but lack the acreage for a traditional homestead or farm. Suburban homesteading practices include growing fruits and vegetables, raising livestock, and preserving food. Many suburban homesteaders also use sustainable water and energy practices.
In short, the goal of suburban homesteading is to live a more fulfilling and environmentally friendly lifestyle.
Sustainable Water and Energy Practices in Suburban Homesteading
It isn’t all about growing food. Suburban homesteads use sustainable water and energy practices to save money and for efficiency. Many suburban homesteaders use rainwater harvesting and drip irrigation systems to minimize water usage in their gardens. In the home, grey-water recycling is another great way to limit excess water usage.
As for electricity, homesteaders often invest in solar panels to lower their energy bills.
Benefits and Challenges of Suburban Homesteading
When done right, suburban homesteading can have huge benefits. That said, suburban homesteading isn’t for everyone. It’s important to consider both the benefits and challenges of suburban homesteading.
Benefits of Suburban Homesteading
By growing their own food, homesteaders have fresh produce without relying on grocery stores and industrial agriculture. Some suburban homesteads are completely self-sufficient: growing food, raising small livestock, and generating electricity. Suburban homesteading also promotes environmental sustainability by preserving natural resources.
Suburban Homesteading Challenges
In the long run suburban homesteading can save you money, but the initial investment can be steep. As a new homesteader, you'll have to consider the costs of equipment, infrastructure, plants, and livestock. Depending on where you live, zoning and regulations can also present obstacles as well. Suburban homesteading also has a steep learning curve for those new to the lifestyle.
It’s important to keep these challenges in mind before starting your suburban homestead.
Why East County San Diego is a Suburban Homestead Paradise
It may sound shocking, but East County is the best place to have a suburban homestead in San Diego.
Availability of Land: Compared with other San Diego areas, East County has larger properties and cheaper land. This makes it a lot easier to break into the market and start your homestead. Suburban homesteading is possible on any size plot of land, but having more space does open up more opportunities.
Climate and Growing Conditions: The mild San Diego weather means growing seasons never have to end. As a homesteader in East County, you can take advantage of the climate and grow a wide variety of crops year-round.
Fewer Regulations: Zoning and regulations can be challenges when starting up a suburban homestead. However, East County San Diego typically has lighter restrictions and regulations when compared with other parts of San Diego.
Supportive Community: East County already has a thriving suburban homestead community ready to welcome new members. As a suburban homesteader in East County San Diego, support is always right around the corner.
Conclusion
Suburban homesteading is a lifestyle based on sustainable living and self-sufficiency. As interest in suburban homesteading continues to grow, East County San Diego stands out as a welcoming and supportive environment for future homesteaders. If you’re interested in buying a home in East County San Diego contact Steven Rotsart, your local East County Real Estate Agent.2024-03-01T09:49:08-07:002024-03-01T10:17:34-07:00Steven Rotsarttag:eastsandiegocounty.com,2012-09-20:31970Why La Mesa is a Great Place to Live 2024
Nestled in the heart of San Diego's East County, La Mesa offers a blend of charm, character, and an urban flair. That blend makes La Mesa an ideal haven for young professionals, growing families, and retirees alike. Now, let's dive into why La Mesa is a great place to live in 2024.
The Allure of La Mesa
La Mesa's Charm and Character
La Mesa's charm comes from its community spirit and captivating landscape. Picture this: tree-lined streets and majestic views from Mount Helix on the east side of the city. You'll discover locally-owned shops, cozy cafes, and delectable restaurants in "The Village," La Mesa's downtown. And don't miss the weekly farmer's market, injecting a lively vibe into the heart of La Mesa.
Suburban Tranquility and Urban Conveniences
La Mesa has the perfect balance of suburban tranquility and urban conveniences; offering a serene suburban retreat just moments away from the buzz of downtown San Diego. It's a place where you can unwind in the tranquility of a close-knit community while having the vibrant energy of the city at your fingertips. Bonus: La Mesa is a mere 20-minute drive from the sandy shores, making beach days a regular possibility.
Excellent Weather
Nestled in San Diego County, La Mesa boasts excellent weather all year round. With summer highs averaging a comfortable 82°F (perfect for a pool day) and winter lows at a mild 45°F, it's a climate that complements the city's inviting atmosphere.
Consistent Recognition as One of the Best Neighborhoods
No surprises here—La Mesa is consistently celebrated as one of San Diego's finest neighborhoods. Its reputation for nurturing a sense of community togetherness makes it a welcoming haven for residents and visitors alike.
Housing Options
When it comes to housing, La Mesa caters to everyone's tastes. From cozy single-family homes to stylish condominiums and trendy townhouses, the real estate market offers a diverse range of options.
Affordable Choices for Various Budgets
Affordability is a shining star in La Mesa's constellation. With a median home value of around $800,000 and the cost of living below the county average, there's a home sweet home for every budget. For those pursuing the perfect home, teaming up with a savvy real estate agent ensures access to current market insights and guidance.
Overview of La Mesa's Real Estate Market
La Mesa's housing market is buzzing with activity. Offering prices lower than the San Diego average La Mesa is a sought-after place to live. The market continues to grow steadily, witnessing around 3% year-over-year growth. We expect this trend to persist into the next year, keeping La Mesa a more budget-friendly option than many other San Diego neighborhoods.
Vibrant Community Life
La Mesa's warmth and friendliness set it apart from other San Diego neighborhoods. It’s all about community in La Mesa.
Imagine strolling along the streets, discovering locally-owned shops, cozy cafes, and delectable restaurants. La Mesa's downtown comes alive with events like the La Mesa Farmers Market and the Back to the '50s Car Show, creating opportunities for residents to connect and celebrate.
Exceptional Amenities and Attractions
Access to Major Freeways and Seamless Connectivity
La Mesa's prime location ensures residents have easy access to major freeways, effortlessly connecting them to the rest of San Diego County. Whether you're commuting to work or embarking on a beach day, the well-connected road network makes it a breeze.
Outdoor Recreation Opportunities
Outdoor enthusiasts, rejoice! The nearby Lake Murray Recreation Area offers a picturesque setting for hiking, boating, and picnicking. Meanwhile, Mission Trails Regional Park, a stone's throw away, invites exploration and adventure, featuring Cowles Mountain—the highest peak in San Diego.
Family-Friendly Environment
Highly Regarded Schools in La Mesa
Families gravitate toward La Mesa for its esteemed schools and family-friendly atmosphere. From La Mesa Arts Academy to Helix Charter High School, the neighborhood boasts top-notch educational institutions with excellent academic programs and extracurricular activities. The community of La Mesa creates an environment where both parents and children can thrive.
Moving to La Mesa 2024
While La Mesa boasts numerous perks, it's crucial to weigh potential drawbacks. The city's popularity has nudged housing prices upward, and residents should be mindful of traffic during peak hours and limited downtown parking.
Pros and Cons of Living in La Mesa
Pros:
Prime location with easy access to nearby cities.
Affordable housing options.
High quality of life with excellent schools and recreational facilities.
Abundance of outdoor activities.
Cons:
Traffic congestion, especially during peak hours.
Limited local employment opportunities.
La Mesa in 2024: What's New
La Mesa is a city in motion. The city has many development and revitalization projects, including new housing, and a new gas station along El Cajon Blvd. These and more developments make 2024 an exciting time to call La Mesa home.
Conclusion
La Mesa in 2024 is a thriving community that encapsulates the essence of a perfect home. Whether you're drawn to a close-knit community, a lively downtown scene, or the proximity to outdoor escapades, La Mesa is poised to capture your heart. Dive into the unique offerings of this dynamic city and consider making La Mesa your home in 2024. The possibilities are as vibrant as the community itself.
2023-12-20T23:04:44-07:002024-02-16T13:58:34-07:00Steven Rotsarttag:eastsandiegocounty.com,2012-09-20:31669Top 5 Places to Buy a Home in San DiegoNeighborhood Guide for Future San Diego Homeowners
San Diego, with its sun-soaked days, diverse communities, and endless possibilities, is undeniably a fantastic place to live. The dream of owning a home here is not far-fetched, and with the right insights, you can make it a reality. In this guide, we'll walk you through our top 5 neighborhoods in San Diego. Learn what makes them stand out, from affordability to community and environment.
Getting to Know Sunny San Diego
Before we delve into each neighborhood, let's talk about San Diego. Nestled on California's southwestern tip, San Diego seamlessly combines coastal ease with urban vibrancy. With hills, mesas, and a breathtaking 70-mile coastline, it's a magnet for diverse individuals. Known for its sunny weather, laid-back vibe, and local treasures, San Diego boasts over 3 million residents, making it California's second most populous county.
Is San Diego a Safe Place to Live?
Yes, with crime rates below the national average, San Diego is a safe place to live. Still, like any city, some areas are safer than others. Our guide will walk you through the best places to buy a home in each of our top 5 San Diego neighborhoods.
Housing Affordability in San Diego
While San Diego's average home value is close to a million dollars, our top neighborhoods offer more reasonable options. As of November 2023, the average home price in these areas is $750,000. Dive into each neighborhood for insights into affordability.
Our Top 5 Neighborhoods for San Diego Homebuyers
1. La Mesa
Nestled in the heart of San Diego County, <a href="https://www.eastsandiegocounty.com/property-search/results/?searchtype=3&searchid=409954">La Mesa, California</a>, welcomes residents with its vibrant mix of history, culture, and modern amenities. Boasting a population of over 60,000, La Mesa caters to young professionals, growing families, and retirees alike.
What Makes La Mesa Special?
La Mesa is home to the charming Mount Helix, offering breathtaking panoramic views. Stroll along La Mesa Boulevard and the La Mesa Walkway of the Stars, a tribute to local celebrities. The weekly farmer's market adds a lively atmosphere, while easy access to San Diego's renowned beaches and entertainment enhances the overall experience.
La Mesa Affordability and Market Trends
La Mesa stands out for its affordability compared to other San Diego County areas. With a median home value of around $800,000 and the cost of living below the county average, La Mesa provides a diverse range of housing options for various lifestyles and budgets. For those considering a home purchase, partnering with a knowledgeable real estate agent ensures access to up-to-date information, insights into market trends, and guidance to find the perfect home.
Community and Amenities
La Mesa exudes a strong sense of community spirit, celebrated through its vibrant lifestyle. The city hosts delightful restaurants, beautiful parks, and the famous La Mesa Village Farmers Market. Outdoor enthusiasts can explore activities at Lake Murray Reservoir and Mission Trails Regional Park, while foodies can savor culinary delights at top-rated restaurants and cafes like Farmer's Table and La Mesa Bistro & Bakery.
Schools in La Mesa
Boasting a range of high-quality schools, La Mesa is an ideal location for families. The La Mesa-Spring Valley School District, with 23 schools, offers diverse educational programs. Notable schools like La Mesa Arts Academy and Helix Charter High School, ranked among the best in California, contribute to the community's educational excellence.
Best Neighborhoods in La Mesa
Explore La Mesa's diverse neighborhoods, each with its unique character:
Mount Helix: Revel in stunning views from this hilltop neighborhood known for its large and luxurious homes.
La Mesa Village: Immerse yourself in a vibrant downtown atmosphere filled with shops, restaurants, and a bustling social scene.
Lake Murray: Find tranquility near the lake, perfect for boating, fishing, and scenic views.
Fletcher Hills: Embrace family-friendly living with large homes and well-manicured lawns.
Grossmont: Experience a diverse and close-knit community near Grossmont College.
Whether you seek a peaceful retreat or a lively downtown vibe, La Mesa offers the perfect neighborhood for every preference. Explore the beauty and diversity of this San Diego gem, where every corner has something unique to offer. For more information on home buying in La Mesa, visit our <a href="https://www.eastsandiegocounty.com/la-mesa-homes-for-sale/">La Mesa Homes</a> page.
2. El Cajon
<a href="https://www.eastsandiegocounty.com/property-search/results/?searchtype=3&searchid=409956">El Cajon, California</a>, welcomes you to East County San Diego with its rich history and diverse population, creating an ideal home for families, professionals, and retirees. Offering a perfect blend of a bustling city and a small-town feel, El Cajon provides the best of both worlds.
What Makes El Cajon Special?
Nestled between mountains and the coast, El Cajon boasts sunny weather and abundant opportunities for outdoor activities like hiking and surfing. Parks such as Wells Park enhance residents' quality of life with playgrounds, tennis courts, and picnic areas.
El Cajon Affordability and Market Trends
El Cajon's real estate market remains consistently strong, witnessing steady growth in property values. Affordability sets the city apart, with average home values around $775,000, making it an attractive and stable long-term investment.
Community and Amenities
Experience El Cajon's vibrant lifestyle through diverse dining options, including The Downtown Cafe and The Hills Local Pub. Beautiful parks like Kennedy Park and Wells Park offer playgrounds, sports facilities, and walking trails. Landmarks such as the Water Conservation Garden and the Wieghorst Museum add cultural richness to the community.
Schools in El Cajon
El Cajon provides excellent educational opportunities, with top-rated schools such as Fletcher Hills Elementary School and Valhalla High School. The El Cajon Branch Library supports early literacy, while nearby institutions like Grossmont College and San Diego State University offer exceptional higher education options.
Best Neighborhoods in El Cajon
Explore El Cajon's unique neighborhoods:
Fletcher Hills: Tree-lined streets and stunning views, with easy access to Mission Trails Regional Park.
Rancho San Diego: A master-planned community offering diverse housing options, excellent schools, and family-friendly amenities.
Downtown El Cajon: Currently undergoing redevelopment, this urban area boasts trendy shops, restaurants, and community events like the weekly farmer's market.
El Cajon serves as your gateway to vibrant living in San Diego County, providing easy access to the mountains and the beach—an outdoor haven for all. For more information on home buying in El Cajon, visit our <a href="https://www.eastsandiegocounty.com/el-cajon-california-homes-for-sale/">El Cajon Homes</a> page.
3. Lemon Grove
<a href="https://www.eastsandiegocounty.com/property-search/results/?searchtype=3&searchid=2500170">Lemon Grove, California</a>, a hidden gem in San Diego County, offers a tranquil atmosphere, making it an ideal retreat from the city's hustle and bustle. Despite its small size, Lemon Grove provides ample opportunities for families and individuals, boasting an affordable cost of living that appeals to first-time homebuyers.
What Makes Lemon Grove Special?
Lemon Grove's charm lies in its family-friendly community, affordable living, and rich heritage. Ideal for those desiring a small-town ambiance with convenient access to city amenities, Lemon Grove takes pride in its annual events and festivals, like the Lemon Grove Community Bonfire, fostering cultural celebration and community engagement.
Lemon Grove Affordability and Market Trends
The town's real estate market is thriving, offering an opportune time for property investment. With a median home price of around $715,000, relatively affordable compared to other San Diego areas, Lemon Grove's real estate value has shown consistent growth.
Community and Amenities
Embracing a family-friendly environment, Lemon Grove promotes a tight-knit community with a low crime rate, ensuring safety and security. The town provides diverse community amenities, from historic landmarks like the Lemon Grove Depot to parks such as Lemon Grove Park and Berry Street Park. Culinary enthusiasts can explore a variety of dining options, including Giardino Neighborhood Cucina and El Pollo Grill.
Schools in Lemon Grove
Lemon Grove boasts excellent schools, with Lemon Grove Academy offering a rigorous K-8 curriculum focusing on STEAM education. Nearby institutions like Helix Charter High School and options at Grossmont College and San Diego State University provide outstanding higher education opportunities.
Best Neighborhoods in Lemon Grove
Explore Lemon Grove's diverse neighborhoods:
Country Club: Known for its large, well-maintained homes and tree-lined streets, offering beautiful views of surrounding hills.
San Altos: A southwestern neighborhood with quiet streets, well-maintained homes, and proximity to parks.
Downtown Lemon Grove: Ideal for an urban vibe, featuring restaurants, cafes, and shops with smaller, more affordable housing options.
Lemon Grove caters to every preference, from peaceful suburban streets to lively urban centers—a city with something for everyone. For more information on home buying in Lemon Grove, visit our <a href="https://www.eastsandiegocounty.com/lemon-grove-california-homes-for-sale/">Lemon Grove Homes</a> page.
4. Santee
<a href="https://www.eastsandiegocounty.com/property-search/results/?searchtype=3&searchid=409975">Santee, California</a>, a picturesque suburban community in San Diego County, is renowned for its warm climate, scenic views, and tight-knit community feel.
What Makes Santee Special?
With just over 58,000 residents, Santee is a perfect haven for families, couples, and individuals. Its proximity to the heart of San Diego ensures easy access to attractions, job opportunities, and outdoor activities, including nearby beaches and hiking trails.
Santee Affordability and Market Trends
Santee's real estate market is thriving, witnessing a steady increase in home values over recent years. The median home value, currently around $750,000, reflects the area's sought-after location and high quality of life. Diverse housing options cater to every buyer's preference and budget, from spacious single-family homes with yards to modern townhouses and new constructions.
Community and Amenities
Santee takes pride in its small-town charm, friendly ambiance, and commitment to safety. Boasting excellent schools and a rich cultural tapestry, it offers a diverse and welcoming environment. Santee is full of picturesque parks like Santee Lakes Regional Park and Mast Park, offering scenic trails and recreational facilities. The town also boasts a vibrant dining scene, featuring local favorites like the Omelette Factory and Phil's BBQ. Santee is an ideal place to call home, offering a blend of suburban tranquility, community warmth, and amenities.
Schools in Santee
Santee is a prime location for families seeking top-quality education, offering a range of schools and access to renowned higher education institutions. Santee hosts several highly rated schools, including Carlton Hills School and Rio Seco School, ensuring an excellent education for students. Residents also have access to prestigious institutions like the University of California San Diego, San Diego State University, and the University of San Diego, providing diverse higher education options.
Best Neighborhoods in Santee
Santee's diverse neighborhoods cater to various preferences, providing a range of settings from quiet suburban streets to lively urban environments.
Carlton Hills: Known for beautiful homes, tree-lined streets, and easy access to local schools and parks.
Riverwalk: Situated along the San Diego River, it offers residents access to outdoor activities.
Sky Ranch: Features stunning views of the surrounding hills and valleys.
Santee offers a welcoming community with diverse neighborhoods, ensuring there's a perfect place for everyone. For more information on home buying in Santee, visit our <a href="https://www.eastsandiegocounty.com/santee-california-homes-for-sale/">Santee Homes</a> page.
5. Spring Valley
<a href="https://www.eastsandiegocounty.com/property-search/results/?searchtype=3&searchid=409976">Spring Valley, California</a> is a serene community nestled in San Diego County, boasting a population of around 30,000 residents. This idyllic town, located just east of San Diego, offers a mild climate, rolling hills, and lush greenery, providing a perfect setting for a year-round outdoor lifestyle.
What makes Spring Valley Special?
Spring Valley stands out as a great place to live for several reasons. Residents enjoy an array of community amenities, including parks like Sweetwater Reservoir and Spring Valley Community Park, alongside diverse dining and shopping options. Not to mention, the area prides itself on safety, reflected in its low crime rate.
Spring Valley Affordability and Market Trends
The real estate market in Spring Valley has seen consistent growth, drawing homebuyer interest. With a current median home value of approximately $725,000, below San Diego’s median, Spring Valley offers a stable, growing, and competitive housing market. Collaborating with a local real estate agent provides essential insights for navigating the home-buying process.
Community and Amenities
Enriching residents' lives, Spring Valley provides something for everyone. Parks like Spring Valley Community Park and Sweetwater Reservoir cater to outdoor enthusiasts, while local eateries like Coop's West Texas BBQ and La Posta de Acapulco offer delightful culinary experiences.
Schools in Spring Valley
Prioritizing education, Spring Valley boasts excellent options for families. Notable elementary and middle schools include La Presa Elementary, Avondale Elementary, and Spring Valley Middle School. High school students can choose between Mount Miguel High School and Monte Vista High School, both offering diverse academic programs and extracurricular activities. Private schools like Santa Sophia Academy and Santa Fe Christian Schools provide additional educational choices.
Best Neighborhoods in Spring Valley
Casa de Oro: A suburban neighborhood with a mix of single-family homes and apartment complexes.
La Presa: Known for its welcoming atmosphere that embraces diversity and fosters community connections.
Pointe Parkway: A booming neighborhood with larger homes and newer developments
Spring Valley beckons potential homebuyers with its dynamic real estate market. Partnering with a knowledgeable local agent ensures a smooth and informed home-buying experience. For more information on home buying in Spring Valley, visit our <a href="https://www.eastsandiegocounty.com/spring-valley-california-homes-for-sale/">Spring Valley Homes</a> page.
Planning Your Move to San Diego
Considerations
Budget
Establish a realistic budget. Make sure to consider the cost of living as well as potential expenses related to the move itself. Each San Diego neighborhood has its housing market, so research thoroughly to find an area that aligns with your financial plans.
Timeline
San Diego's housing market can be competitive, so having a clear timeline is essential. Start your search early and be prepared to act swiftly when you find the right property.
Safety
While San Diego is generally safe, we recommend researching specific neighborhoods for crime rates and safety considerations, especially if you are unfamiliar with the area. Local law enforcement websites and community forums can be valuable resources for gathering safety information.
Different Neighborhood Cultures and Attractions
Before settling on a location, explore different neighborhoods to find the one that aligns with your lifestyle and preferences. Consider factors such as proximity to beaches, cultural events, and community amenities.
Conclusion
Embark on your home-buying journey with our top 5 places in mind: La Mesa, El Cajon, Lemon Grove, Santee, and Spring Valley. Each neighborhood is a unique blend of amenities, culture, and lifestyle. Whether you seek a mix of urban and suburban living, multicultural experiences, affordable opportunities, family-friendly environments, or serene surroundings, San Diego's diverse communities cater to various preferences. As you explore, consider your priorities, from community events to educational opportunities, and make San Diego's vibrant neighborhoods your home. Your dream awaits—explore, discover, and make it yours.
2023-12-04T09:22:58-07:002024-02-07T11:21:27-07:00Steven Rotsarttag:eastsandiegocounty.com,2012-09-20:21627Why You May Want to Start Your Home Search TodayIf you’re thinking about <a href="https://www.simplifyingthemarket.com/2022/08/10/is-the-shifting-market-a-challenge-or-an-opportunity-for-homebuyers/?a=371365-96f38d4df44d5627725612a3244e4929" target="_blank" title="buying a home">buying a home</a> in La Mesa, El Cajon, Alpine, Descanso, Santee, Lakeside, Lemon Grove, Spring Valley or anywhere in East San Diego County, you likely have a lot of factors on your mind. You’re weighing your own needs against higher <a href="https://www.simplifyingthemarket.com/2022/08/05/housing-market-forecast-for-the-rest-of-2022-infographic/?a=371365-96f38d4df44d5627725612a3244e4929" target="_blank" title="mortgage rates">mortgage rates</a>, today’s home prices, and more to try to decide if you want to jump into the market. While some buyers may wait things out, there’s a reason serious buyers are making moves right now, and that’s the growing number of homes for sale.
So far this year, <a href="https://www.simplifyingthemarket.com/2022/07/26/a-window-of-opportunity-for-homebuyers/?a=371365-96f38d4df44d5627725612a3244e4929" target="_blank" title="housing inventory">housing inventory</a> has been increasing and that’s making the prospect of finding your dream home less difficult. While there are always reasons you could delay making a big decision, there are also always reasons to consider moving forward. And having a <a href="https://www.simplifyingthemarket.com/2022/07/22/great-news-about-housing-inventory-infographic/?a=371365-96f38d4df44d5627725612a3244e4929" target="_blank" title="growing number of options">growing number of options</a> for your home search may be exactly what you needed to feel more confident in making a move.
What’s Causing Housing Inventory To Grow?
As new data comes out, we're getting an updated picture of why housing supply is increasing so much this year. As Bill McBride, Author of Calculated Risk, <a href="https://calculatedrisk.substack.com/p/1st-look-at-local-housing-markets-fb2" target="_blank" title="explains">explains</a>:
“We are seeing a significant change in inventory, but no pickup in new listings. Most of the increase in inventory so far has been due to softer demand - likely because of higher mortgage rates.”
Basically, the inventory growth is primarily from homes staying on the market a bit longer (known as active listings). And that’s happening because higher mortgage rates and <a href="https://www.simplifyingthemarket.com/2022/08/11/what-does-the-rest-of-the-year-hold-for-home-prices/?a=371365-96f38d4df44d5627725612a3244e4929" target="_blank" title="home prices">home prices</a> have helped moderate the peak frenzy of buyer demand.
The graph below uses <a href="https://www.realtor.com/research/data/" target="_blank" title="data">data</a> from realtor.com to show how much active listings have risen over the past five months as a result (shown in green):
<img src="https://assets.site-static.com/userfiles/1763/image/kcm-infographic-1661465675.jpg" width="960" height="840" />
Why This Growth Is Good News for You
Regardless of the source, the increase in available housing supply is good for buyers. More housing supply actively for sale means you have more options as your search for your next home. A <a href="https://www.realtor.com/research/july-2022-data/" target="_blank" title="recent article">recent article</a> from realtor.com explains just how significant the inventory growth has been and why it’s good news for your plans to buy:
“Nationally, the inventory of homes actively for sale on a typical day in July increased by 30.7% over the past year, the largest increase in inventory in the data history and higher than last month’s growth rate of 18.7% which was itself record-breaking. This amounted to 176,000 more homes actively for sale on a typical day in July compared to the previous year and more choice for buyers who are still looking for a new home.”
The growth this year is certainly good news for you, especially if you’ve had trouble finding a home that meets your needs. If you start your search today, those additional options should make it less difficult to find a home than it would have been over the past two years.
Bottom Line
If you’re ready to jump into the East County market and take advantage of the increasing supply of homes for sale, let’s connect today. The opportunity is knocking, will you answer?2022-08-26T06:28:00-07:002023-12-04T10:18:42-07:00Steven Rotsarttag:eastsandiegocounty.com,2012-09-20:21603Why Today’s Housing Inventory Proves the Market Isn’t Headed for a CrashWhether or not you owned a home in 2008, you likely remember the housing crash that took place back then. And news about an <a href="https://www.simplifyingthemarket.com/2022/07/07/what-does-an-economic-slowdown-mean-for-the-housing-market/?a=371365-96f38d4df44d5627725612a3244e4929" target="_blank" title="economic slowdown">economic slowdown</a> happening today may bring all those concerns back to the surface. While those feelings are understandable, data can help reassure you the situation today is nothing like it was in 2008.
One of the key reasons why the market <a href="https://www.simplifyingthemarket.com/2022/08/12/why-experts-say-the-housing-market-wont-crash-infographic/?a=371365-96f38d4df44d5627725612a3244e4929" target="_blank" title="won’t crash">won’t crash</a> this time is the current undersupply of inventory. Housing supply comes from three key places:
Current homeowners putting their homes up for sale
Newly built homes coming onto the market
Distressed properties (short sales or foreclosures)
For the market to crash, you’d have to make a case for an oversupply of inventory headed to the market, and the numbers just don’t support that. So, here’s a deeper look at where inventory is coming from today to help prove why the housing market isn’t headed for a crash.
Current Homeowners Putting Their Homes Up for Sale
Even though <a href="https://www.simplifyingthemarket.com/2022/08/10/is-the-shifting-market-a-challenge-or-an-opportunity-for-homebuyers/?a=371365-96f38d4df44d5627725612a3244e4929" target="_blank" title="housing supply">housing supply</a> is increasing this year, there’s still a limited number of existing homes available. The graph below helps illustrate this point. Based on the latest weekly <a href="https://www.calculatedriskblog.com/2022/08/housing-inventory-august-29th-update.html" target="_blank" title="data">data</a>, inventory is up 27.8% compared to the same week last year (shown in blue). But compared to the same week in 2019 (shown in the larger red bar), it’s still down by 42.6%.
<img src="https://assets.site-static.com/userfiles/1763/image/kcm-infographic-1661379070.jpg" width="960" height="840" />
So, what does this mean? Inventory is still historically low. There simply aren’t enough homes on the market to cause prices to crash. There would need to be a flood of people getting ready to sell their houses in order to tip the scales toward a buyers’ market. And that level of activity simply isn’t there.
Newly Built Homes Coming onto the Market
There’s also a lot of talk about what’s happening with newly built homes today, and that may make you wonder if we’re overbuilding. But home builders are actually slowing down their production right now. Ali Wolf, Chief Economist at Zonda, <a href="https://www.entrepreneur.com/article/433166" target="_blank" title="notes">notes</a>:
“It has become a very competitive market for builders where they are trying to offload any standing inventory.”
To avoid repeating the overbuilding that happened leading up to the <a href="https://www.simplifyingthemarket.com/2022/08/02/3-graphs-to-show-this-isnt-a-housing-bubble/?a=371365-96f38d4df44d5627725612a3244e4929" target="_blank" title="housing crisis">housing crisis</a>, builders are reacting to higher mortgage rates and softening buyer demand by slowing down their work. It’s a sign they’re being intentional about not overbuilding homes like they did during the bubble.
And according to the latest data from the U.S. Census, at today’s current pace, we’re headed to build a seasonally adjusted annual rate of about <a href="https://www.census.gov/construction/nrc/pdf/newresconst.pdf" target="_blank" title="1.4 million homes">1.4 million homes</a> this year. While this will add more inventory to the market, it’s not on pace to create an oversupply because builders today are more cautious than the last time when they built more homes than the market could absorb.
Distressed Properties (Short Sales or Foreclosures)
The last place inventory can come from is distressed properties, including short sales and foreclosures. Back in the housing crisis, there was a flood of foreclosures due to lending standards that allowed many people to secure a home loan they couldn’t truly afford. Today, <a href="https://www.simplifyingthemarket.com/2022/06/01/why-home-loans-today-arent-what-they-were-in-the-past/?a=371365-96f38d4df44d5627725612a3244e4929" target="_blank" title="lending standards">lending standards</a> are much tighter, resulting in more qualified buyers and far fewer foreclosures. The graph below uses <a href="https://www.attomdata.com/news/market-trends/foreclosures/attom-year-end-2021-u-s-foreclosure-market-report/" target="_blank" title="data">data</a> from ATTOM Data Solutions on properties with foreclosure filings to help paint the picture of how things have changed since the crash:
<img src="https://assets.site-static.com/userfiles/1763/image/kcm-infographic-1661379230.jpg" width="960" height="840" />
This graph shows how in the time around the housing crash there were over one million foreclosure filings per year. As lending standards tightened since then, the activity started to decline. And in 2020 and 2021, the <a href="https://www.simplifyingthemarket.com/2022/08/08/why-the-forbearance-program-changed-the-housing-market/?a=371365-96f38d4df44d5627725612a3244e4929" target="_blank" title="forbearance program">forbearance program</a> was a further aid to help prevent a repeat of the wave of foreclosures we saw back around 2008.
That program was a game changer, giving homeowners options for things like loan deferrals and modifications they didn’t have before. And <a href="https://www.mba.org/news-and-research/newsroom/news/2022/08/15/share-of-mortgage-loans-in-forbearance-decreases-to-0.74-in-july" target="_blank" title="data">data</a> on the success of that program shows four out of every five homeowners coming out of forbearance are either paid in full or have worked out a repayment plan to avoid foreclosure. These are a few of the biggest reasons there won’t be a wave of foreclosures coming to the market.
Bottom Line
Although housing supply is growing this year, the market certainly isn’t anywhere near the inventory levels that would cause prices to drop significantly. That’s why inventory tells us the housing market won’t crash. Ready to buy or sell in La Mesa, El Cajon, Alpine, Descanso, Santee, Lakeside, Lemon Grove, Spring Valley or anywhere in East San Diego County? Let’s connect.2022-08-25T06:20:00-07:002023-12-04T10:26:15-07:00Steven Rotsarttag:eastsandiegocounty.com,2012-09-20:21576What Sellers Need to Know in Today’s East County Housing MarketIf you’re thinking about <a href="https://www.simplifyingthemarket.com/2022/07/18/wondering-where-youll-move-if-you-sell-your-house-today/?a=371365-96f38d4df44d5627725612a3244e4929" target="_blank" title="selling your house">selling your house</a> in La Mesa, El Cajon, Alpine, Descanso, Santee, Lakeside, Lemon Grove, Spring Valley or anywhere in East San Diego County, you may have heard about the housing market slowing down in recent months. While it’s still a sellers’ market, the peak frenzy the market saw over the past two years has cooled some. If you’re asking yourself if you’ve missed your chance to sell your house and make a move, the good news is you haven’t – motivated buyers are still out there. But you do need to price your house right for today’s market. Here’s why.
As Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), <a href="https://www.nar.realtor/newsroom/existing-home-sales-slid-5-4-in-june" target="_blank" title="says">says</a>:
“Homes priced right are selling very quickly, but homes priced too high are deterring prospective buyers.”
It’s true buyer demand has slowed over the past few months as higher mortgage rates made it more expensive to buy a home. The result is fewer <a href="https://www.simplifyingthemarket.com/2022/08/10/is-the-shifting-market-a-challenge-or-an-opportunity-for-homebuyers/?a=371365-96f38d4df44d5627725612a3244e4929" target="_blank" title="bidding wars">bidding wars</a> and less competition among buyers (see visual below):
<img src="https://assets.site-static.com/userfiles/1763/image/kcm-infographic-1661292634.jpg" width="1000" height="870" />
But don’t forget – that’s compared to the severely overheated market we saw over the past two years. According to the latest <a href="https://cdn.nar.realtor/sites/default/files/documents/2022-07-realtors-confidence-index-08-18-2022.pdf" target="_blank" title="Confidence Index">Confidence Index</a> from NAR:
“. . . 39% of homes sold above list price, down from 51% a month ago and 50% a year ago.”
While this is a slower pace than even one month ago, serious buyers are still actively in the market, and they’re buying homes that are priced right. In fact, the Confidence Index also notes the average home is selling in just 14 days.
If you’re aiming to sell your house, be sure you’re working with your agent to price it for today’s housing market. As buyer demand softens, it’s important to understand this isn’t the same market as last year. It’s not even the same market as just a few months ago. But it is still a <a href="https://www.simplifyingthemarket.com/2022/08/04/why-its-still-a-sellers-market/?a=371365-96f38d4df44d5627725612a3244e4929" target="_blank" title="sellers’ market">sellers’ market</a>.
If you’re ready to sell your house, seek the advice of a <a href="https://www.simplifyingthemarket.com/2022/07/28/a-real-estate-professional-helps-you-separate-fact-from-fiction/?a=371365-96f38d4df44d5627725612a3244e4929" target="_blank" title="real estate professional">real estate professional</a>. In some cases, you’ll need to adjust your expectations accordingly to meet the market where it is today. Selma Hepp, Interim Lead, Deputy Chief Economist at CoreLogic, <a href="https://www.corelogic.com/intelligence/u-s-home-price-insights-august-2022/" target="_blank" title="explains">explains</a> what’s happening and what it means when you sell:
“Signs of a broader slowdown in the housing market are evident, . . . This is in line with our previous expectations and given the notable cooling of buyer demand due to higher mortgage rates. . . . Nevertheless, buyers still remain interested, which is keeping the market competitive — particularly for attractive homes that are properly priced.”
Bottom Line
While the housing market has cooled from its overheated frenzy, it’s still a sellers’ market. Let’s connect so you understand what’s happening with buyer demand and home prices in East County as you get ready to enter the market.2022-08-24T06:20:00-07:002023-12-04T10:28:03-07:00Steven Rotsarttag:eastsandiegocounty.com,2012-09-20:215593 Tips for Buying a Home Today in East CountyIf you put off your home search at any point over the past two years, you may want to consider picking it back up based on today’s housing market conditions. Recent data shows the <a href="https://www.mykcm.com/2022/07/29/three-reasons-to-buy-a-home-in-todays-shifting-market-infographic/" title="supply of homes">supply of homes</a> for sale is increasing, giving buyers like you additional options.
But it’s important to keep in mind that while <a href="https://www.mykcm.com/2022/07/22/great-news-about-housing-inventory-infographic/" title="inventory is improving">inventory is improving</a>, it’s still a <a href="https://www.mykcm.com/2022/08/04/why-its-still-a-sellers-market/" title="sellers’ market">sellers’ market</a>. And that means you need to be prepared as you set out on your home search. Here are three tips for buying the East County home of your dreams today.
1. Understand How Mortgage Rates Impact Your Homebuying Power
Mortgage rates have <a href="https://www.freddiemac.com/pmms/archive" target="_blank" title="increased">increased</a> significantly this year, and over the past few weeks, they’ve been fluctuating quite a bit. It’s important to stay up to date on what’s happening with rates and understand how they can impact your purchasing power when you’re thinking of buying a home. The chart below can help.
Let’s say your budget allows for a monthly mortgage payment in the $2,100-$2,200 range. The green in the chart indicates a payment within or below that range, while the red is a payment that exceeds it.
<img src="https://assets.site-static.com/userfiles/1763/image/kcm-infographic-1661206458.jpg" width="1000" height="870" />
As the chart shows, even a small change in mortgage rates can have a big impact on your monthly payments. If rates rise, you could exceed your budget unless you pursue a lower home loan amount. If rates fall, your purchasing power may increase, which could give you additional options for your search.
2. Be Open to Exploring Different Options During Your Search
The <a href="https://www.mykcm.com/2022/07/27/want-to-buy-a-home-now-may-be-the-time/" title="supply of homes">supply of homes</a> for sale is improving, which gives you more homes to choose from. But historically, supply is still low. That means as you search for homes, if you still don’t find something that meets your needs, it may be worth expanding your search.
A <a href="https://www.washingtonpost.com/business/2022/07/28/navigating-crazy-housing-market/" target="_blank" title="recent article">recent article</a> from the Washington Post highlights a few things buyers can consider today. It encourages opening yourself up to more areas. For example, if there’s a location you’ve previously ruled out (like a particular town, for example) it may be worth taking another look.
And if you’re able to, opening your search up to include other housing types, like newly built homes, condominiums, or townhomes can further increase your pool of options. Even as the inventory of <a href="https://www.mykcm.com/2022/08/10/is-the-shifting-market-a-challenge-or-an-opportunity-for-homebuyers/" title="homes for sale">homes for sale</a> improves today, finding ways to cast a wider net during your search could help you find a hidden gem.
3. Work with a Local Real Estate Professional for Expert Guidance
Ultimately, you need to be prepared when you set out to buy a home. Jeff Ostrowski, Senior Mortgage Reporter for Bankrate, <a href="https://www.bankrate.com/real-estate/how-to-buy-a-house/" target="_blank" title="explains">explains</a>:
“Taking the leap to homeownership can provide a feeling of pride while boosting your long-term financial outlook, if you go in well-prepared and with your eyes open.”
No matter where you’re at in your homeownership journey, the best way to make sure you’re set up for success is to work with a <a href="https://www.mykcm.com/2022/07/28/a-real-estate-professional-helps-you-separate-fact-from-fiction/" title="real estate professional">real estate professional</a>. If you’re just starting your search, I can help you understand the current market and search for available homes in La Mesa, El Cajon, Alpine, Descanso, Santee, Lakeside, Lemon Grove, Spring Valley or anywhere in East San Diego County. And when it’s time to make an offer, I’ll be an expert advisor and negotiator to help yours stand out above the rest.
Bottom Line
Strategically planning your home search by understanding today’s mortgage rates, casting a wide net, and building a team of experts can be the keys to finding the home of your dreams. To make sure you have expert advice each step of the way, let’s connect.2022-08-23T06:48:00-07:002023-12-04T10:30:25-07:00Steven Rotsarttag:eastsandiegocounty.com,2012-09-20:21533Why a Home Inspection Is Important<img src="https://assets.site-static.com/userfiles/1763/image/kcm-infographic-1660950014.jpg" width="1046" height="2087" />
If you’re buying a home in La Mesa, El Cajon, Alpine, Descanso, Santee, Lakeside, Lemon Grove, Spring Valley or anywhere in East San Diego County, here’s what you should know about your <a href="https://www.homeinspector.org/Buyers-And-Owners/Homebuyers-Guide/FAQs-about-Home-Inspection" target="_blank" title="home inspection">home inspection</a> and why it’s so important.
A <a href="https://www.nar.realtor/home-inspections" target="_blank" title="home inspection">home inspection</a> is a crucial step in the homebuying process. It assesses the <a href="https://www.realtor.com/advice/buy/how-much-does-a-home-inspection-cost/" target="_blank" title="condition">condition</a> of the home you plan to purchase so you can avoid <a href="https://magazine.realtor/daily-news/2022/07/28/real-estate-forecast-market-to-ease-despite-high-home-prices" target="_blank" title="costly surprises">costly surprises</a> down the road.
Let’s connect so you have an East County <a href="https://www.mykcm.com/2022/07/28/a-real-estate-professional-helps-you-separate-fact-from-fiction/" title="expert">expert</a> on your side to guide you through the process.2022-08-20T06:46:00-07:002022-08-19T16:08:18-07:00Steven Rotsarttag:eastsandiegocounty.com,2012-09-20:21503Planning To Retire in East County? Your Equity Can Help You Reach Your Goal.Whether you’ve just retired or you’re thinking about retirement, you may be considering your options and trying to picture a whole new stage of your life. And you’re not alone. <a href="https://ritaus.org/2022-retirement-stats-you-should-know/" target="_blank" title="Research">Research</a> from the Retirement Industry Trust Association (RITA) shows 10,000 Baby Boomers reach the typical retirement age (65) every day, and only 47% of the people in that generation have already retired.
If this sounds like you, one thing worth considering is whether or not your current home will suit your new lifestyle. If your home doesn’t have the features or benefits you’re looking for, the good news is, you may be in a better position to move than you realize.
That’s because, if you already own a home, you’ve likely built-up significant <a href="https://www.mykcm.com/2022/07/06/how-your-equity-can-grow-over-time/" title="equity">equity</a>, and that can help you fuel your next move to La Mesa, El Cajon, Alpine, Descanso, Santee, Lakeside, Lemon Grove, Spring Valley or anywhere in East San Diego County. <a href="https://www.nar.realtor/blogs/economists-outlook/metro-wealth-reports-as-of-2022-q1" target="_blank" title="According">According</a> to the National Association of Realtors (NAR):
“A homeowner who purchased a typical home five years ago would have gained $125,300 from just price appreciation alone.”
In fact, over the last twelve months, CoreLogic <a href="https://www.corelogic.com/intelligence/homeowner-equity-insights/" target="_blank" title="reports">reports</a> the average homeowner in the United States gained roughly $64,000 in equity due to <a href="https://www.mykcm.com/2022/07/25/whats-causing-ongoing-home-price-appreciation/" title="home price appreciation">home price appreciation</a>.
You can use your equity to help you achieve your <a href="https://www.mykcm.com/2022/08/01/why-are-people-moving-today/" title="homeownership goals">homeownership goals</a>. Whether you want to downsize, move closer to loved ones, or buy a home in a dream destination, your <a href="https://www.mykcm.com/2022/07/08/why-growing-home-equity-is-great-news-if-you-plan-to-move-infographic/" title="equity">equity</a> can help get you there. It may be some (if not all) of what you’d need as your down payment on a home that better fits your changing needs.
To find out how much equity to have in your home, reach out to a trusted <a href="https://www.mykcm.com/2022/05/23/work-with-a-real-estate-professional-if-you-want-the-best-advice/" title="real estate professional">real estate professional</a> today.
Bottom Line
Retirement is a big step and so is buying or selling a home. As you move into this new phase of life, let’s connect so you have an expert to guide you through the process as you sell your East County home and give you expert advice as you buy one that’ll better suit your needs.2022-08-19T06:16:00-07:002022-08-18T15:18:27-07:00Steven Rotsarttag:eastsandiegocounty.com,2012-09-20:21479Experts Increase 2022 Home Price ProjectionsIf you’re wondering if <a href="https://www.mykcm.com/2022/07/21/think-home-prices-are-going-to-fall-think-again/" title="home prices">home prices</a> are going to come down due to the cooldown in the <a href="https://www.mykcm.com/2022/06/14/is-the-housing-market-correcting/" title="housing market">housing market</a> or a <a href="https://www.mykcm.com/2022/08/16/what-would-a-recession-mean-for-the-housing-market/" title="potential recession">potential recession</a>, here’s what you need to know. Not only are experts forecasting home prices will continue to appreciate nationwide this year, but most of them also actually increased their projections for home price appreciation from their original 2022 forecasts (shown in green in the chart below):
<img src="https://assets.site-static.com/userfiles/1763/image/kcm-infographic-1660774061.jpg" width="960" height="840" />
As the chart shows, most sources adjusted up, and now call for more appreciation in 2022 than they originally projected this January. But why are experts so confident the housing market will see ongoing appreciation? It’s because of <a href="https://www.mykcm.com/2022/07/25/whats-causing-ongoing-home-price-appreciation/" title="supply and demand">supply and demand</a> in most markets. As Bankrate <a href="https://www.bankrate.com/real-estate/june-2022-fed-housing-comments/" target="_blank" title="says">says</a>:
“After all, supplies of homes for sale remain near record lows. And while a jump in mortgage rates has dampened demand somewhat, demand still outpaces supply, thanks to a combination of little new construction and strong household formation by large numbers of millennials.”
Knowing that experts forecast home prices will continue to appreciate in most markets and that they’ve actually increased their original projections for this year should help you answer the question: will home prices fall? According to the latest forecasts, experts are confident prices will <a href="https://www.mykcm.com/2022/08/11/what-does-the-rest-of-the-year-hold-for-home-prices/" title="continue to appreciate">continue to appreciate</a> this year, although at a more moderate rate than they did in 2021.
Bottom Line
If you’re worried home prices are going to decline, rest assured many experts raised their forecasts to say they’ll continue to appreciate in most markets this year. If you have questions about what’s happening with home prices in La Mesa, El Cajon, Alpine, Descanso, Santee, Lakeside, Lemon Grove, Spring Valley or anywhere in East San Diego County, let’s connect.2022-08-18T06:15:00-07:002022-08-17T15:24:32-07:00Steven Rotsarttag:eastsandiegocounty.com,2012-09-20:21451What Would a Recession Mean for the Housing Market?According to a <a href="https://www.wsj.com/articles/economic-forecasting-survey-archive-11617814998" target="_blank" title="recent survey">recent survey</a> from the Wall Street Journal, the percentage of economists who believe we’ll see a recession in the next 12 months is growing. When surveyed in July 2021, only 12% of economists consulted thought there’d be a recession by now. But this July, when polled, 49% believe we will see a recession in the coming 12 months.
And as more recession talk fills the air, one concern many people have is: should I delay my homeownership plans if there’s a recession?
Here’s a look at historical data to show what happened in real estate during previous recessions to help prove why you shouldn’t be afraid of what a recession would mean for the housing market today.
A Recession Doesn’t Mean Falling Home Prices
To show that home prices don’t fall every time there’s a <a href="https://www.corelogic.com/blog/2019/03/housing-recessions-and-recoveries.aspx" target="_blank" title="recession">recession</a>, it helps to turn to <a href="https://www.thebalance.com/the-history-of-recessions-in-the-united-states-3306011" target="_blank" title="historical data">historical data</a>. As the graph below illustrates, looking at the recessions going all the way back to 1980, <a href="https://www.mykcm.com/2022/08/11/what-does-the-rest-of-the-year-hold-for-home-prices/" title="home prices">home prices</a> appreciated in four of the last six recessions. So, historically, when the economy slows down, it doesn’t mean home values will fall.
<img src="https://assets.site-static.com/userfiles/1763/image/kcm-infographic-1660687814.jpg" width="1000" height="870" />
Most people remember the housing crisis in 2008 (the larger of the two red bars in the graph above) and think another recession would repeat what happened then. But this housing market <a href="https://www.mykcm.com/2022/08/02/3-graphs-to-show-this-isnt-a-housing-bubble/" title="isn’t about to crash">isn’t about to crash</a>. The <a href="https://www.mykcm.com/2022/07/14/housing-experts-say-this-isnt-a-bubble/" title="fundamentals">fundamentals</a> are very different today than they were in 2008. So, don’t assume we’re heading down the same path.
A Recession Means Falling Mortgage Rates
<a href="https://mtg-specialists.com/2022/05/11/recession-interest-rates-and-real-estate/" target="_blank" title="Research">Research</a> also helps paint the picture of how a recession could impact the cost of financing a home. As the chart below shows, historically, each time the economy slowed down, <a href="https://www.freddiemac.com/pmms/archive" target="_blank" title="mortgage rates">mortgage rates</a> decreased.
<img src="https://assets.site-static.com/userfiles/1763/image/kcm-infographic-1660687871.jpg" width="1000" height="870" />
Fortune <a href="https://fortune.com/2019/06/19/next-recession-assets-mortgage-rates/" target="_blank" title="explains">explains</a> that mortgage rates typically fall during an economic slowdown:
“Over the past five recessions, mortgage rates have fallen an average of 1.8 percentage points from the peak seen during the recession to the trough. And in many cases, they continued to fall after the fact as it takes some time to turn things around even when the recession is technically over.”
And while history doesn’t always repeat itself, we can learn from and find comfort in the historical data.
Bottom Line
There’s no doubt everyone remembers what happened in the housing market in 2008. But you don’t need to fear the word recession if you’re planning to buy or sell a home. According to historical data, in most recessions, home price gains have stayed strong, and mortgage rates have declined. Let’s have a chat if you if you to move to La Mesa, El Cajon, Alpine, Descanso, Santee, Lakeside, Lemon Grove, Spring Valley or anywhere in East San Diego County and help you WIN!2022-08-17T06:20:00-07:002022-08-16T15:27:11-07:00Steven Rotsarttag:eastsandiegocounty.com,2012-09-20:21428The U.S. Homeownership Rate Is GrowingThe desire to own a home is <a href="https://www.mykcm.com/2022/07/05/is-homeownership-still-the-american-dream/" title="still strong">still strong</a> today. In fact, according to the <a href="https://www.census.gov/housing/hvs/files/currenthvspress.pdf" target="_blank" title="Census">Census</a>, the U.S. homeownership rate is on the rise. To illustrate the increase, the graph below shows the homeownership rate over the last year:
<img src="https://assets.site-static.com/userfiles/1763/image/kcm-infographic-1660601459.jpg" width="1000" height="870" />
That data shows more than half of the U.S. population live in a home they own, and the percentage is growing with time.
If you’re thinking about <a href="https://www.mykcm.com/2022/07/27/want-to-buy-a-home-now-may-be-the-time/" title="buying a home">buying a home</a> this year, here are just a few reasons why so many people see the value of homeownership.
Why Are More People Becoming Homeowners?
There are several benefits to owning your home. A significant one, especially when <a href="https://www.mykcm.com/2022/07/20/should-you-buy-a-home-with-inflation-this-high/" title="inflation">inflation</a> is high like it is today, is that homeownership can help protect you from rising costs. Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), <a href="https://sponsorcontent.cnn.com/interactive/nar/benefits-of-home-ownership/" target="_blank" title="explains">explains</a>:
“In the 1970s, when inflation was running around 10%, home prices were rising at approximately the same rate. Renters actually have a harder time in inflationary periods, because rents tend to rise along with inflation, whereas mortgage payments stay the same for homeowners with fixed-rate mortgages.”
When you <a href="https://www.mykcm.com/2022/08/03/buying-a-home-may-make-more-financial-sense-than-renting-one/" title="buy a home">buy a home</a> with a fixed-rate mortgage, you can lock in what’s likely your biggest monthly expense – your housing payment – for the duration of that loan, often 15-30 years.
That gives you a predictable monthly housing expense that can benefit you in the short term, but you’ll also <a href="https://www.mykcm.com/2022/07/06/how-your-equity-can-grow-over-time/" title="gain equity">gain equity</a> over time as your home appreciates in value and you make your monthly mortgage payment.
And with that growing equity, your <a href="https://www.mykcm.com/2022/07/13/should-i-buy-a-home-right-now/" title="net worth">net worth</a> will increase as well. In fact, the <a href="https://cdn.nar.realtor/sites/default/files/documents/2022-snapshot-of-race-and-home-buying-in-the-us-report-02-23-2022_0.pdf" target="_blank" title="latest data">latest data</a> from NAR shows the median household net worth of a homeowner is roughly $300,000, while the median net worth of renters is only about $8,000. That means a homeowner’s net worth is nearly 40 times that of a renter.
<img src="https://assets.site-static.com/userfiles/1763/image/kcm-infographic-1660601493.jpg" width="1000" height="870" />
Bottom Line
The U.S. homeownership rate is growing. If you’re ready to purchase the home of your dreams in La Mesa, El Cajon, Alpine, Descanso, Santee, Lakeside, Lemon Grove, Spring Valley or anywhere in East San Diego County, let’s connect so you can begin the homebuying process today.2022-08-16T06:30:00-07:002022-08-15T15:33:53-07:00Steven Rotsarttag:eastsandiegocounty.com,2012-09-20:21403Why Experts Say the Housing Market Won’t Crash<img src="https://assets.site-static.com/userfiles/1763/image/kcm-infographic-1660342368.jpg" width="1046" height="2041" />
Many people remember the housing crash in 2008, but experts say today’s market is <a href="https://www.mykcm.com/2022/08/02/3-graphs-to-show-this-isnt-a-housing-bubble/" title="fundamentally different">fundamentally different</a> in many ways.
First, there isn’t an <a href="https://www.realtor.com/news/trends/housing-market-showing-signs-of-correction-what-buyers-sellers-need-to-know/" target="_blank" title="oversupply">oversupply</a> of homes for sale today. Plus, <a href="https://www.forbes.com/advisor/mortgages/real-estate/will-housing-market-crash/" target="_blank" title="lending standards">lending standards</a> are much tighter, and homeowners have <a href="https://www.attomdata.com/news/market-trends/home-sales-prices/attom-q1-2022-u-s-home-equity-and-underwater-report/" target="_blank" title="record levels of equity">record levels of equity</a>. That means signs say there won’t be a wave of <a href="https://www.mykcm.com/2022/08/08/why-the-forbearance-program-changed-the-housing-market/" title="foreclosures">foreclosures</a> like the last time.
If you have questions about the East County housing market, let’s connect.2022-08-13T06:19:00-07:002022-08-12T15:30:46-07:00Steven Rotsarttag:eastsandiegocounty.com,2012-09-20:21372What Does the Rest of the Year Hold for Home Prices?Whether you’re a potential <a href="https://www.mykcm.com/2022/07/29/three-reasons-to-buy-a-home-in-todays-shifting-market-infographic/" title="homebuyer">homebuyer</a>, <a href="https://www.mykcm.com/2022/07/18/wondering-where-youll-move-if-you-sell-your-house-today/" title="seller">seller</a>, or both, you probably want to know: will home prices fall this year? Let’s break down what’s happening with home prices, where experts say they’re headed, and why this matters for your <a href="https://www.mykcm.com/2022/07/05/is-homeownership-still-the-american-dream/" title="homeownership">homeownership</a> goals.
Last Year’s Rapid Home Price Growth Wasn’t the Norm
In 2021, home prices appreciated quickly. One reason why is that record-low mortgage rates motivated more buyers to enter the market. As a result, there were more people looking to make a purchase than there were homes available for sale. That led to competitive bidding wars which drove prices up. CoreLogic helps <a href="https://www.corelogic.com/intelligence/corelogic-hpi-posted-record-year-over-year-growth-in-2021/" target="_blank" title="explain">explain</a> how unusual last year’s appreciation was:
“Price appreciation averaged 15% for the full year of 2021, up from the 2020 full year average of 6%.”
In other words, the pace of appreciation in 2021 far surpassed the 6% the market saw in 2020. And even that appreciation was greater than the pre-pandemic norm which was typically around 3.8%. This goes to show, 2021 was an anomaly in the housing market spurred by more buyers than homes for sale.
Home Price Appreciation Moderates Today
This year, home price appreciation is slowing (or decelerating) from the feverish pace the market saw over the past two years. According to the latest forecasts, experts say on average, nationwide, prices will still appreciate by roughly 10% in 2022 (see graph below):
<img src="https://assets.site-static.com/userfiles/1763/image/kcm-infographic-1660255665.jpg" width="960" height="840" />
Why do all of these experts agree prices will continue to rise? It’s simple. Even though <a href="https://www.mykcm.com/2022/07/27/want-to-buy-a-home-now-may-be-the-time/" title="housing supply">housing supply</a> is growing today, it’s still low overall thanks to several factors, including a long period of <a href="https://www.mykcm.com/2022/07/25/whats-causing-ongoing-home-price-appreciation/" title="underbuilding homes">underbuilding homes</a>. And experts say that’s going to help keep upward pressure on <a href="https://www.mykcm.com/2022/07/21/think-home-prices-are-going-to-fall-think-again/" title="home prices">home prices</a> this year. Additionally, since mortgage rates are higher this year than they were last year, buyer demand has slowed.
As the market undergoes this change, it’s true price appreciation this year won’t match the feverish pace in 2021. But the rapid appreciation the market saw last year wasn’t sustainable anyway.
What Does That Mean for You?
Today, the market is beginning to move back toward pre-pandemic levels. But even the forecast for 10% home price growth in 2022 is well beyond the 3.8% that’s more typical for a normal market.
So, despite what you may have heard, experts say home prices won’t fall in most markets. They’ll just appreciate more moderately.
If you’re worried the house you’re trying to sell or the home you want to buy will decrease in value, you should know experts aren’t calling for depreciation in most markets, just <a href="https://www.mykcm.com/2022/06/16/home-price-deceleration-doesnt-mean-home-price-depreciation/" title="deceleration">deceleration</a>. That means your home should still grow in value, just not as fast as it did last year.
Bottom Line
If you’re thinking of making a move in La Mesa, El Cajon, Alpine, Descanso, Santee, Lakeside, Lemon Grove, Spring Valley or anywhere in East San Diego County, you shouldn’t wait for prices to fall. Experts say nationally, prices will continue to appreciate this year, just at a more moderate pace. When you’re ready to begin the process of buying or selling, let’s connect so you have a local market expert on your side each step of the way.2022-08-12T06:19:00-07:002022-08-11T15:29:43-07:00Steven Rotsarttag:eastsandiegocounty.com,2012-09-20:21334Is the Shifting Market a Challenge or an Opportunity for East County Homebuyers?If you tried to <a href="https://www.mykcm.com/2022/07/13/should-i-buy-a-home-right-now/" title="buy a home">buy a home</a> East San Diego county during the pandemic, you know the limited supply of homes for sale was a considerable challenge. It created intense bidding wars which drove <a href="https://www.mykcm.com/2022/07/21/think-home-prices-are-going-to-fall-think-again/" title="home prices">home prices</a> up as buyers competed with one another to be the winning offer.
But what was once your greatest challenge may now be your greatest opportunity. Today, data shows <a href="https://www.mykcm.com/2022/07/26/a-window-of-opportunity-for-homebuyers/" title="buyer demand">buyer demand</a> is moderating in the wake of higher mortgage rates. Here are a few reasons why this shift in the <a href="https://www.mykcm.com/2022/07/29/three-reasons-to-buy-a-home-in-todays-shifting-market-infographic/" title="housing market">housing market</a> is good news for your <a href="https://www.mykcm.com/2022/07/15/should-i-rent-or-should-i-buy-infographic/" title="homebuying plans">homebuying plans</a>.
The Challenge
There were many reasons for the limited number of homes on the market during the pandemic, including a <a href="https://www.mykcm.com/2022/07/25/whats-causing-ongoing-home-price-appreciation/" title="history of underbuilding">history of underbuilding</a> new homes since the market <a href="https://www.mykcm.com/2022/07/14/housing-experts-say-this-isnt-a-bubble/" title="crash in 2008">crash in 2008</a>. As the graph below shows, housing supply is well below what the market has seen for most of the past 10 years (see graph below):
<img src="https://assets.site-static.com/userfiles/1763/image/kcm-infographic-1660169060.jpg" width="960" height="840" />
The Opportunity
But that graph also shows a trend back up in the right direction this year. That’s because moderating demand is slowing the <a href="https://www.mykcm.com/2022/07/26/a-window-of-opportunity-for-homebuyers/" title="pace of home sales">pace of home sales</a> and that’s one of the reasons housing supply is finally able to grow. For you, that means you’ll have <a href="https://www.mykcm.com/2022/07/22/great-news-about-housing-inventory-infographic/" title="more options">more options</a> to choose from, so it shouldn’t be as difficult to find your next home as it has been recently.
And having more options may also lead to less intense bidding wars. <a href="https://cdn.nar.realtor/sites/default/files/documents/2022-05-realtors-confidence-index-06-21-2022.pdf" target="_blank" title="Data">Data</a> from the <a href="https://cdn.nar.realtor/sites/default/files/documents/2022-06-realtors-confidence-index-report-07-20-2022.pdf" target="_blank" title="Realtors Confidence Index">Realtors Confidence Index</a> from the National Association of Realtors (NAR) shows this trend has already begun. In their recent reports, bidding wars are easing month-over-month (see graph below):
<img src="https://assets.site-static.com/userfiles/1763/image/kcm-infographic-1660169116.jpg" width="960" height="840" />
If you’ve been outbid before or you’ve struggled to find a home that meets your needs, breathe a welcome sigh of relief. The big takeaway here is you have more options and less competition today.
Just remember, while easing, data shows multiple-offer scenarios are still happening – they’re just not as intense as they were over the past year. You should still lean on <a href="https://www.mykcm.com/2022/07/28/a-real-estate-professional-helps-you-separate-fact-from-fiction/" title="an agent">an agent</a> to guide you through the process and help you make your strongest offer up front.
Bottom Line
If you’re still looking to make a move in La Mesa, El Cajon, Alpine, Descanso, Santee, Lakeside, Lemon Grove, Spring Valley or anywhere in East San Diego County, it may be time to pick your home search back up today. Let’s connect to kick off the homebuying process.2022-08-11T06:13:00-07:002022-08-10T15:21:10-07:00Steven Rotsarttag:eastsandiegocounty.com,2012-09-20:21311Selling Your East County House? Your Asking Price Matters More Now Than EverThere’s no doubt about the fact that the <a href="https://www.mykcm.com/2022/07/28/a-real-estate-professional-helps-you-separate-fact-from-fiction/" title="housing market">housing market</a> is slowing from the frenzy we saw over the past two years. But what does that mean for you if you’re thinking of selling your house in East San Diego County?
While <a href="https://www.mykcm.com/2022/06/16/home-price-deceleration-doesnt-mean-home-price-depreciation/" title="home prices">home prices</a> are still appreciating in most markets and experts say that will continue, they’re climbing at a slower pace because rising mortgage rates are creating less <a href="https://www.mykcm.com/2022/07/26/a-window-of-opportunity-for-homebuyers/" title="buyer demand">buyer demand</a>. Because of this, there are <a href="https://www.mykcm.com/2022/07/22/great-news-about-housing-inventory-infographic/" title="more homes">more homes</a> on the market. And in a shift like this one, the way you price your home matters more than ever.
Why Today’s Housing Market Is Different
During the pandemic, sellers could price their homes higher because demand was so high, and supply was so low. This year, things are shifting, and that means your approach to pricing your house needs to shift too.
Because we’re seeing less buyer demand, sellers have to recognize this is a different market than it was during the pandemic. Here’s what’s at stake if you don’t.
Why Pricing Your House at Market Value Matters
The price you set for your house sends a message to potential buyers. If you price it too high, you run the risk of deterring buyers.
When that happens, you may have to lower the price to try to reignite interest in your house when it sits on the market for a while. But be aware that a price drop can be seen as a red flag for some buyers who will wonder what that means about the home or if in fact it’s still overpriced. Some sellers aren’t adjusting their expectations to today’s market, and realtor.com <a href="https://www.realtor.com/research/weekly-housing-trends-view-data-week-july-23-2022/" target="_blank" title="explains">explains</a> the impact that’s having:
“. . . the share of listings with a price cut was nearly double its year ago level even as it remains well below pre-pandemic levels.”
To avoid the headache of having to lower your price, you’ll want to price it right from the onset. A <a href="https://www.mykcm.com/2022/05/23/work-with-a-real-estate-professional-if-you-want-the-best-advice/" title="real estate advisor">real estate advisor</a> knows how to determine that perfect asking price. To find the right price, they balance the value of homes in your neighborhood, current market trends and buyer demand, the condition of your house, and more.
Not to mention, pricing your house fairly based on market conditions increases the chance you’ll have more buyers who are interested in purchasing it. This helps lead to stronger offers and a greater likelihood it’ll sell quickly.
Why You Still Have an Opportunity When You Sell Today
Rest assured, it’s still a <a href="https://www.mykcm.com/2022/08/04/why-its-still-a-sellers-market/" title="sellers’ market">sellers’ market</a>, and you’ll still get great benefits if you plan accordingly and work with an agent to set your price at the current market value. As Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), <a href="https://www.nar.realtor/newsroom/existing-home-sales-slid-5-4-in-june" target="_blank" title="says">says</a>:
“Homes priced right are selling very quickly, but homes priced too high are deterring prospective buyers.”
Mike Simonsen, the Founder and CEO of Altos Research, also <a href="https://www.housingwire.com/articles/mike-simonsen-inventory-is-climbing-is-the-supply-crisis-over/" target="_blank" title="notes">notes</a>:
“We can see that demand is still there for the homes that are priced properly.”
Bottom Line
Homes priced right are selling quickly in today’s real estate market. Let’s connect to make sure you price your house in La Mesa, El Cajon, Alpine, Descanso, Santee, Lakeside, Lemon Grove, Spring Valley or anywhere in East San Diego County based on current market conditions so you can maximize your sales potential and minimize your hassle in a shifting market.2022-08-10T06:19:00-07:002022-08-09T15:20:34-07:00Steven Rotsarttag:eastsandiegocounty.com,2012-09-20:21283Why the Forbearance Program Changed the Housing MarketWhen the pandemic hit in 2020, many experts thought the housing market would crash. They feared job loss and economic uncertainty would lead to a wave of <a href="https://www.wsj.com/articles/many-who-lost-homes-to-foreclosure-in-last-decade-wont-return-nar-1429548640" target="_blank" title="foreclosures">foreclosures</a> similar to when the housing bubble burst over a decade ago. Thankfully, the forbearance program changed that. It provided much-needed relief for homeowners so a foreclosure crisis wouldn’t happen again. Here’s why forbearance worked.
Forbearance enabled nearly five million homeowners to get back on their feet in a time when having the security and protection of a home was more important than ever. Those in need were able to work with their banks and lenders to stay in their homes rather than go into foreclosure. Marina Walsh, Vice President of Industry Analysis at the Mortgage Bankers Association (MBA), <a href="https://www.mba.org/news-and-research/newsroom/news/2022/06/21/share-of-mortgage-loans-in-forbearance-decreases-to-085-in-may" target="_blank" title="notes">notes</a>:
“Most borrowers exiting forbearance are moving into either a loan modification, payment deferral, or a combination of the two workout options.”
As the graph below shows, with modification, deferral, and workout options in place, four out of every five homeowners in forbearance are either paid in full or are exiting with a plan. They’re able to stay in their homes.
<img src="https://assets.site-static.com/userfiles/1763/image/kcm-infographic-1659996798.jpg" width="1000" height="870" />
What does this mean for the housing market?
Since so many people can stay in their homes and work out alternative options, there won’t be a wave of foreclosures coming to the market. And while rising slightly since the foreclosure moratorium was lifted this year, <a href="https://www.mykcm.com/2022/05/12/what-you-actually-need-to-know-about-the-number-of-foreclosures-in-todays-housing-market/" title="foreclosures">foreclosures</a> today are still nowhere near the levels seen in the housing crisis.
Forbearance wasn’t the only game changer, either. Lending <a href="https://www.mykcm.com/2022/06/01/why-home-loans-today-arent-what-they-were-in-the-past/" title="standards">standards</a> have improved significantly since the housing bubble burst, and that’s one more thing keeping foreclosure filings low. Today’s borrowers are much more qualified to pay their home loans.
And while the majority of homeowners are exiting the forbearance program with a plan, for those who still need to make a change due to financial hardship or other challenges, today’s record-level of <a href="https://www.mykcm.com/2022/07/08/why-growing-home-equity-is-great-news-if-you-plan-to-move-infographic/" title="equity">equity</a> is giving them the opportunity to sell their houses and avoid foreclosure altogether. Homeowners have options they just didn’t have in the housing crisis when so many people owed more on their mortgages than their homes were worth. Thanks to their equity and the current <a href="https://www.mykcm.com/2022/08/02/3-graphs-to-show-this-isnt-a-housing-bubble/" title="undersupply">undersupply</a> of homes on the market, homeowners can sell their houses, make a move, and not have to go through the foreclosure process that led to the housing market crash in 2008.
Thomas LaSalvia, Chief Economist with Moody’s Analytics, <a href="https://www.newsweek.com/housing-market-crash-could-see-values-homes-plummet-these-11-states-1720651" target="_blank" title="states">states</a>:
“There’s some excess savings out there, over 2 trillion worth. . . . There are people that have ownership of those homes right now, that even in a downturn, they’d still likely be able to pay that mortgage and won’t have to hand over keys. And there won’t be a lot of those distressed sales that happened in the 2008 crisis.”
Bottom Line
The forbearance program was a game changer for homeowners in need. It’s one of the big reasons why we won’t see a wave of foreclosures coming to the market. Let’s have a chat to know your options in making a move to La Mesa, El Cajon, Alpine, Descanso, Santee, Lakeside, Lemon Grove, Spring Valley or anywhere in East San Diego County.2022-08-09T06:20:00-07:002022-08-08T15:22:22-07:00Steven Rotsarttag:eastsandiegocounty.com,2012-09-20:21253Housing Market Forecast for the Rest of 2022<img src="https://assets.site-static.com/userfiles/1763/image/kcm-infographic-1659737615.jpg" width="1046" height="2065" />
The housing market is <a href="https://www.mykcm.com/2022/07/29/three-reasons-to-buy-a-home-in-todays-shifting-market-infographic/" title="shifting">shifting</a> away from the intensity of the past two years. Here’s what <a href="https://www.fanniemae.com/media/44131/display" target="_blank" title="experts project">experts project</a> for the remainder of 2022.
<a href="https://www.corelogic.com/intelligence/find-stories/corelogic-hpi-posted-record-year-over-year-growth-in-2021/" target="_blank" title="Home prices">Home prices</a> are forecast to <a href="https://pulsenomics.com/surveys/#home-price-expectations" target="_blank" title="rise">rise</a> more moderately than last year. <a href="https://www.nar.realtor/newsroom/existing-home-sales-slid-5-4-in-june" target="_blank" title="Mortgage rates">Mortgage rates</a> will respond to inflation, and <a href="https://www.nar.realtor/research-and-statistics/housing-statistics/existing-home-sales" target="_blank" title="home sales">home sales</a> will be <a href="https://www.freddiemac.com/research/forecast/20220720-quarterly-forecast-market-slowdown-will-continue-high-rates-and-prices-exacerbate" target="_blank" title="more in line">more in line</a> with pre-pandemic years.
Let’s connect so you can make your best move in La Mesa, El Cajon, Alpine, Descanso, Santee, Lakeside, Lemon Grove, Spring Valley or anywhere in East San Diego County this year.2022-08-06T06:22:00-07:002022-08-05T15:29:25-07:00Steven Rotsarttag:eastsandiegocounty.com,2012-09-20:21227Why It’s Still a Sellers’ MarketAs there’s more and more talk about the <a href="https://www.mykcm.com/2022/08/02/3-graphs-to-show-this-isnt-a-housing-bubble/" title="real estate market">real estate market</a> cooling off from the peak frenzy it saw during the pandemic, you may be questioning what that means for your plans to <a href="https://www.mykcm.com/2022/07/18/wondering-where-youll-move-if-you-sell-your-house-today/" title="sell your house">sell your house</a>. If you’re thinking of making a move in East County, you should know the market is still anything but normal.
Even though the supply of <a href="https://www.mykcm.com/2022/06/17/more-listings-are-coming-onto-the-market-infographic/" title="homes for sale">homes for sale</a> has been growing this year, there’s still a shortage of homes on the market. And that means conditions continue to favor sellers today. That’s because the level of <a href="https://www.mykcm.com/2022/07/22/great-news-about-housing-inventory-infographic/" title="inventory">inventory</a> of homes for sale can help determine if buyers or sellers are in the driver’s seat. Think of it like this:
A buyers’ market is when there are more homes for sale than buyers looking to buy. When that happens, buyers have the negotiation power because sellers are more willing to compromise so they can sell their house.
In a sellers’ market, it’s just the opposite. There are too few homes available for the number of buyers in the market and that gives the seller all the leverage. In that situation, buyers will do what they can to compete for the limited number of homes for sale.
A neutral market is when supply is balanced and there are enough homes to meet buyer demand at the current sales pace.
And for the past two years, we’ve been in a red-hot sellers’ market because inventory has been near record lows. The blue section of this graph <a href="https://www.nar.realtor/topics/existing-home-sales" target="_blank" title="highlights">highlights</a> just how far below a neutral market inventory still is today.
<img src="https://assets.site-static.com/userfiles/1763/image/kcm-infographic-1659651575.jpg" width="960" height="840" />
What Does This Mean for You?
Ed Pinto, Director of the American Enterprise Institute’s Housing Center, gives a perfect summary of what’s happening in today’s market, <a href="https://fortune.com/2022/06/26/housing-market-outlook-prices-appreciation/" target="_blank" title="saying">saying</a>:
“Overall, the best summary is that we’ll move from a gangbuster sellers’ market to a modest sellers’ market.”
Conditions are still in your favor even though the market is cooling. If you work with an agent to price your house at market value, you’ll find success when you <a href="https://www.mykcm.com/2022/06/30/if-youre-selling-your-house-this-summer-hiring-a-pro-is-critical/" title="sell your house">sell your house</a> today. While buyer demand is softening due to higher mortgage rates, homes that are <a href="https://www.mykcm.com/2022/06/06/why-you-need-an-expert-to-determine-the-right-price-for-your-house/" title="priced right">priced right</a> are still selling fast. That means your window of opportunity to list your house hasn’t closed.
Bottom Line
Today’s housing market still favors sellers. If you’re ready to sell your house in La Mesa, El Cajon, Alpine, Descanso, Santee, Lakeside, Lemon Grove, Spring Valley or anywhere in East San Diego County, let’s connect so you can start making your moves.2022-08-05T06:39:00-07:002022-08-04T15:45:48-07:00Steven Rotsarttag:eastsandiegocounty.com,2012-09-20:21206Buying a Home May Make More Financial Sense Than Renting OneIf rising home prices leave you wondering if it makes more sense to <a href="https://www.mykcm.com/2022/07/15/should-i-rent-or-should-i-buy-infographic/" title="rent or buy">rent or buy</a> a home in today’s housing market, consider this. It’s not just <a href="https://www.mykcm.com/2022/07/25/whats-causing-ongoing-home-price-appreciation/" title="home prices">home prices</a> that have risen in recent years – rental prices have skyrocketed as well. As a recent article from realtor.com <a href="https://www.realtor.com/research/june-2022-rent/" target="_blank" title="says">says</a>:
“The median rent across the 50 largest US metropolitan areas reached $1,876 in June, a new record level for Realtor.com data for the 16th consecutive month.”
That means <a href="https://www.mykcm.com/2022/07/21/think-home-prices-are-going-to-fall-think-again/" title="rising prices">rising prices</a> will likely impact your housing plans either way. But there are a few key differences that could make <a href="https://www.mykcm.com/2022/07/13/should-i-buy-a-home-right-now/" title="buying a home">buying a home</a> a more worthwhile option for you.
If You Need More Space, Buying a Home May Be More Affordable
What you may not realize is that, according to the latest data from <a href="https://www.realtor.com/research/june-2022-rent/" target="_blank" title="realtor.com">realtor.com</a> and the <a href="https://cdn.nar.realtor/sites/default/files/documents/hai-05-2022-housing-affordability-index-2022-07-08.pdf" target="_blank" title="National Association of Realtors">National Association of Realtors</a> (NAR), it may actually be more affordable to buy than rent depending on how many bedrooms you need. The graph below uses the median rental payment and median mortgage payment across the country to show why.
<img src="https://assets.site-static.com/userfiles/1763/image/kcm-infographic-1659564774.jpg" width="960" height="840" />
As the graph conveys, if you need two or more bedrooms, it may actually be more affordable to buy a home even as prices rise. While this doesn’t take into consideration the interest deduction or other financial advantages that come with owning a home, it does help paint the picture that it may be more affordable to buy than rent for that unit size based on nationwide averages. So, if one of the factors motivating you to move is a desire for more space, this could be the added encouragement you need to consider homeownership.
Homeownership Also Provides Stability and a Chance to Grow Your Wealth
In addition to being more affordable depending on how many bedrooms you need, buying has two other key benefits: payment stability and equity.
When you <a href="https://www.mykcm.com/2022/07/27/want-to-buy-a-home-now-may-be-the-time/" title="buy a home">buy a home</a>, you lock in your monthly payment with your fixed-rate mortgage. And that’s especially important in today’s <a href="https://www.mykcm.com/2022/07/20/should-you-buy-a-home-with-inflation-this-high/" title="inflationary economy">inflationary economy</a>. With <a href="https://www.mykcm.com/2022/06/23/homeownership-is-a-great-hedge-against-the-impact-of-rising-inflation/" title="inflation">inflation</a>, prices rise across the board for things like gas, groceries, and more. Locking in your housing payment, which is likely your largest monthly expense, can provide greater long-term stability and help shield you from those rising expenses moving forward. Renting doesn’t provide that same predictability. A recent article from CNET <a href="https://www.cnet.com/personal-finance/mortgages/should-you-buy-a-home-in-2022-or-wait-3-factors-to-consider/" target="_blank" title="explains">explains</a> it like this:
“…if you buy a house and secure a fixed-rate mortgage, that means that no matter how much prices or interest rates go up, your fixed payment will stay the same every month. That’s an advantage over renting since there’s a good chance your landlord will raise your rent to counter inflationary pressures.”
Not to mention, when you buy, you have the chance to build <a href="https://www.mykcm.com/2022/06/21/the-average-homeowner-gained-64k-in-equity-over-the-past-year/" title="equity">equity</a>, which in turn grows your <a href="https://www.mykcm.com/2022/03/28/a-key-to-building-wealth-is-homeownership/" title="net worth">net worth</a>. It works like this. As you pay down your home loan over time and as home values continue to appreciate, so does your <a href="https://www.mykcm.com/2022/07/06/how-your-equity-can-grow-over-time/" title="equity">equity</a>. And that equity can make it easier to <a href="https://www.mykcm.com/2022/07/08/why-growing-home-equity-is-great-news-if-you-plan-to-move-infographic/" title="fuel a move">fuel a move</a> into a future home if you decide you need a bigger home later on. Again, the CNET article mentioned above helps explain:
“Homeownership is still considered one of the most reliable ways to build wealth. When you make monthly mortgage payments, you’re building equity in your home that you can tap into later on. When you rent, you aren’t investing in your financial future the same way you are when you’re paying off a mortgage.”
Bottom Line
If you’re trying to decide whether to keep renting or buy a home in La Mesa, El Cajon, Alpine, Descanso, Santee, Lakeside, Lemon Grove, Spring Valley or anywhere in East San Diego County, let’s connect to explore your options. With home equity and a shield against inflation on the line, it may make more sense to buy a home if you’re able to.2022-08-04T06:25:00-07:002022-08-03T15:33:06-07:00Steven Rotsarttag:eastsandiegocounty.com,2012-09-20:211873 Graphs to Show This Isn’t a Housing BubbleWith all the headlines and buzz in the media, some consumers believe the market is in a <a href="https://www.mykcm.com/2022/07/14/housing-experts-say-this-isnt-a-bubble/" title="housing bubble">housing bubble</a>. As the housing <a href="https://www.mykcm.com/2022/06/14/is-the-housing-market-correcting/" title="market shifts">market shifts</a>, you may be wondering what’ll happen next. It’s only natural for concerns to creep in that it could be a repeat of what took place in 2008. The good news is, there’s concrete data to show why this is nothing like the last time.
There’s a Shortage of Homes on the Market Today, Not a Surplus
The supply of inventory needed to sustain a normal real estate market is approximately six months. Anything more than that is an overabundance and will cause prices to depreciate. Anything less than that is a shortage and will lead to continued price appreciation.
For historical context, there were too many homes for sale during the housing crisis (many of which were short sales and foreclosures), and that caused prices to tumble. Today, <a href="https://www.mykcm.com/2022/07/22/great-news-about-housing-inventory-infographic/" title="supply is growing">supply is growing</a>, but there’s still a shortage of inventory available.
The graph below uses <a href="https://www.nar.realtor/research-and-statistics/housing-statistics/existing-home-sales" target="_blank" title="data">data</a> from the National Association of Realtors (NAR) to show how this time compares to the crash. Today, unsold inventory sits at just a <a href="https://www.nar.realtor/newsroom/existing-home-sales-slid-5-4-in-june" target="_blank" title="3.0-months’ supply">3.0-months’ supply</a> at the current sales pace.
<img src="https://assets.site-static.com/userfiles/1763/image/kcm-infographic-1659478177.jpg" width="1000" height="870" />
One of the reasons inventory is still low is because of <a href="https://www.mykcm.com/2022/07/25/whats-causing-ongoing-home-price-appreciation/" title="sustained underbuilding">sustained underbuilding</a>. When you couple that with ongoing buyer demand as millennials age into their peak homebuying years, it continues to put upward pressure on <a href="https://www.mykcm.com/2022/07/21/think-home-prices-are-going-to-fall-think-again/" title="home prices">home prices</a>. That limited supply compared to buyer demand is why <a href="https://www.mykcm.com/2022/07/12/expert-housing-market-forecasts-for-the-second-half-of-the-year/" title="experts forecast">experts forecast</a> home prices won’t fall this time.
Mortgage Standards Were Much More Relaxed During the Crash
During the lead-up to the housing crisis, it was much easier to get a home loan than it is today. The graph below showcases <a href="https://www.mba.org/news-and-research/newsroom/news/2022/06/09/mortgage-credit-availability-decreased-in-may" target="_blank" title="data">data</a> on the Mortgage Credit Availability Index (MCAI) from the Mortgage Bankers Association (MBA). The higher the number, the easier it is to get a mortgage.
<img src="https://assets.site-static.com/userfiles/1763/image/kcm-infographic-1659478251.jpg" />
Running up to 2006, banks were creating artificial demand by lowering lending standards and making it easy for just about anyone to qualify for a home loan or refinance their current home. Back then, lending institutions took on much greater risk in both the person and the mortgage products offered. That led to mass defaults, foreclosures, and falling prices.
Today, things are different, and purchasers face much higher standards from mortgage companies. Mark Fleming, Chief Economist at First American, <a href="https://blog.firstam.com/economics/how-the-fundamentals-influencing-housing-market-potential-have-changed" target="_blank" title="says">says</a>:
“Credit standards tightened in recent months due to increasing economic uncertainty and monetary policy tightening.”
Stricter standards, like there are today, help prevent a risk of a rash of foreclosures like there was last time.
The Foreclosure Volume Is Nothing Like It Was During the Crash
The most obvious difference is the number of homeowners that were facing foreclosure after the housing bubble burst. Foreclosure activity has been on the way down since the crash because buyers today are more qualified and less likely to default on their loans. The graph below uses <a href="https://www.attomdata.com/news/market-trends/foreclosures/attom-year-end-2021-u-s-foreclosure-market-report/" target="_blank" title="data">data</a> from ATTOM Data Solutions to help tell the story:
<img src="https://assets.site-static.com/userfiles/1763/image/kcm-infographic-1659478288.jpg" width="1000" height="870" />
In addition, homeowners today are <a href="https://www.mykcm.com/2022/06/21/the-average-homeowner-gained-64k-in-equity-over-the-past-year/" title="equity rich">equity rich</a>, not tapped out. In the run-up to the housing bubble, some homeowners were using their homes as personal ATMs. Many immediately withdrew their equity once it built up. When home values began to fall, some homeowners found themselves in a negative equity situation where the amount they owed on their mortgage was greater than the value of their home. Some of those households decided to walk away from their homes, and that led to a wave of distressed property listings (foreclosures and short sales), which sold at considerable discounts that lowered the value of other homes in the area.
Today, prices have risen nicely over the last few years, and that’s given homeowners an <a href="https://www.mykcm.com/2022/07/06/how-your-equity-can-grow-over-time/" title="equity">equity</a> boost. According to <a href="https://www.blackknightinc.com/black-knights-april-2022-mortgage-monitor/" target="_blank" title="Black Knight">Black Knight</a>:
“In total, mortgage holders gained $2.8 trillion in tappable equity over the past 12 months – a 34% increase that equates to more than $207,000 in equity available per borrower. . . .”
With the average home equity now standing at $207,000, homeowners are in a completely different position this time.
Bottom Line
If you’re worried we’re making the same mistakes that led to the housing crash, the graphs above should help alleviate your concerns. Concrete data and expert insights clearly show why this is nothing like the last time. Let’s connect so that I can help you relocate in La Mesa, El Cajon, Alpine, Descanso, Santee, Lakeside, Lemon Grove, Spring Valley or anywhere in East San Diego County.2022-08-03T06:27:00-07:002022-08-02T15:35:24-07:00Steven Rotsarttag:eastsandiegocounty.com,2012-09-20:21160Why Are People Moving Today?Buying a home is a major life <a href="https://www.mykcm.com/2022/07/13/should-i-buy-a-home-right-now/" title="decision">decision</a>. That’s true whether you’re purchasing for the first time or selling your house to fuel a move. And if you’re planning to buy a home in East County, you might be hearing about today’s <a href="https://www.mykcm.com/2022/07/07/what-does-an-economic-slowdown-mean-for-the-housing-market/" title="shifting market">shifting market</a> and wondering what it means for you.
While <a href="https://www.mykcm.com/2022/07/12/expert-housing-market-forecasts-for-the-second-half-of-the-year/" title="mortgage rates">mortgage rates</a> are higher than they were at the start of the year and <a href="https://www.mykcm.com/2022/06/16/home-price-deceleration-doesnt-mean-home-price-depreciation/" title="home prices">home prices</a> are rising, you shouldn’t put your plans on hold based solely on market factors. Instead, it’s necessary to consider why you want to move and how important those reasons are to you. Here are two of the biggest personal motivators driving people to buy homes today.
A Need for More Space
Moving.com looked at <a href="https://www.moving.com/tips/where-are-people-moving-to-top-trends-2022/" target="_blank" title="migration patterns">migration patterns</a> to determine why people moved to specific areas. One trend that emerged was the need for additional space, both indoors and outdoors.
Outgrowing your home isn’t new. If you’re craving a large yard, more entertaining room, or just need more storage areas or bedrooms overall, having the physical space you need for your desired lifestyle may be reason enough to make a change.
A Desire to Be Closer to Loved Ones
Moving and storage company United Van Lines <a href="https://www.unitedvanlines.com/newsroom/movers-study-2021" target="_blank" title="surveys">surveys</a> customers each year to get a better sense of why people move. The latest survey finds nearly 32% of people moved to be closer to loved ones.
Another moving and storage company, Pods, also <a href="https://www.pods.com/blog/2022/04/moving-trends/" target="_blank" title="highlights">highlights</a> this as a top motivator for why people move. They note that an increase in flexible work options has helped many homeowners make a move closer to the people they care about most:
“. . . a shifting of priorities has also affected why people are moving. Many companies have moved to permanent remote working policies, giving employees the option to move freely around the country, and people are taking advantage of the perk.”
If you can move to another location because of remote work, retirement, or for any other reason, you could leverage that flexibility to be closer to the most important people in your life. Being nearby for caregiving and being able to attend get-togethers and life milestones could be exactly what you’re looking for.
What Does That Mean for You?
If you’re thinking about moving in La Mesa, El Cajon, Alpine, Descanso, Santee, Lakeside, Lemon Grove, Spring Valley or anywhere in East San Diego County, one of these reasons might be a top motivator for you. And while what’s happening with mortgage rates and <a href="https://www.mykcm.com/2022/07/25/whats-causing-ongoing-home-price-appreciation/" title="home prices">home prices</a> in the <a href="https://www.mykcm.com/2022/07/14/housing-experts-say-this-isnt-a-bubble/" title="housing market">housing market</a> today will likely play a role in your decision, it’s equally important to make sure your home meets your needs. Like Charlie Bilello, Founder and CEO of Compound Capital Advisors, <a href="https://compoundadvisors.com/2020/homes-castles-and-price-expectations" target="_blank" title="says">says</a>:
“Your home is your castle and should confer benefits beyond just the numbers.”
Bottom Line
There are many reasons why people decide to move. No matter what the reason may be, if your needs have changed, let’s connect to discuss your options in today’s East County housing market.2022-08-02T06:29:00-07:002022-08-01T15:31:44-07:00Steven Rotsarttag:eastsandiegocounty.com,2012-09-20:21095Three Reasons to Buy a Home in Today’s Shifting Market<img src="https://assets.site-static.com/userfiles/1763/image/kcm-infographic-1659132763.jpg" />
The housing market is moving away from the frenzy of the past year and it’s opening doors for you if you’re thinking about <a href="https://www.mykcm.com/2022/07/27/want-to-buy-a-home-now-may-be-the-time/" title="buying a home">buying a home</a>.
<a href="https://www.globenewswire.com/news-release/2022/05/19/2447085/0/en/Existing-Home-Sales-Retract-2-4-in-April.html" target="_blank" title="Housing inventory">Housing inventory</a> is <a href="https://www.nar.realtor/newsroom/existing-home-sales-slid-5-4-in-june" target="_blank" title="increasing">increasing</a>, which means <a href="https://www.mykcm.com/2022/07/22/great-news-about-housing-inventory-infographic/" title="more options">more options</a> for your search. Plus, the intensity of <a href="https://cdn.nar.realtor/sites/default/files/documents/2022-06-realtors-confidence-index-report-07-20-2022.pdf" target="_blank" title="bidding wars">bidding wars</a> may ease as buyer demand moderates, leading to fewer homes selling above <a href="https://cdn.nar.realtor/sites/default/files/documents/2022-05-realtors-confidence-index-06-21-2022.pdf" target="_blank" title="asking price">asking price</a>.
If you’re ready to buy a home in La Mesa, El Cajon, Alpine, Descanso, Santee, Lakeside, Lemon Grove, Spring Valley or anywhere in East San Diego County, now may be the moment you’ve been waiting for. Let’s connect to start the homebuying process today.2022-07-30T06:25:00-07:002022-07-29T15:29:57-07:00Steven Rotsarttag:eastsandiegocounty.com,2012-09-20:21072A Real Estate Professional Helps You Separate Fact from FictionIf you’re following the news, chances are you’ve seen or heard some headlines about the housing market that don’t give the full picture. The real estate market is shifting, and when that happens, it can be hard to separate fact from fiction. That’s where a trusted real estate professional comes in. I can help debunk the headlines so you can really understand today’s East County market and what it means for you.
Here are three common housing market myths you might be hearing, along with the expert analysis that provides better context.
Myth 1: Home Prices Are Going to Fall
One piece of fiction many buyers may have seen or heard is that <a href="https://www.mykcm.com/2022/07/25/whats-causing-ongoing-home-price-appreciation/" title="home prices">home prices</a> are going to crash. That’s because headlines often use similar, but different, <a href="https://www.mykcm.com/2022/06/16/home-price-deceleration-doesnt-mean-home-price-depreciation/" title="terms">terms</a> to describe what’s happening with prices. A few you might be seeing right now include:
Appreciation, or an increase in home prices.
Depreciation, or a decrease in home prices.
And deceleration, which is an increase in home prices, but at a slower pace.
The fact is, <a href="https://www.mykcm.com/2022/07/12/expert-housing-market-forecasts-for-the-second-half-of-the-year/" title="experts">experts</a> aren’t calling for a decrease in prices. Instead, they forecast <a href="https://www.mykcm.com/2022/07/21/think-home-prices-are-going-to-fall-think-again/" title="appreciation will continue">appreciation will continue</a>, just at a decelerated pace. That means home prices will continue rising and won’t fall. Selma Hepp, Deputy Chief Economist at CoreLogic, <a href="https://www.bankrate.com/real-estate/housing-market-predictions/" target="_blank" title="explains">explains</a>:
“. . . higher mortgage rates coupled with more inventory will lead to slower home price growth but unlikely declines in home prices.”
Myth 2: The Housing Market Is in a Correction
Another common myth is that the housing market is in a correction. Again, that’s not the case. Here’s why. According to <a href="https://www.forbes.com/advisor/investing/what-is-market-correction/" target="_blank" title="Forbes">Forbes</a>:
“A correction is a sustained decline in the value of a market index or the price of an individual asset. A correction is generally agreed to be a 10% to 20% drop in value from a recent peak.”
As mentioned above, home prices are still appreciating, and experts project that will continue, just at a slower pace. That means the housing market <a href="https://www.mykcm.com/2022/06/14/is-the-housing-market-correcting/" title="isn’t in a correction">isn’t in a correction</a> because prices aren’t falling. It’s just moderating compared to the last two years, which were record-breaking in nearly every way.
Myth 3: The Housing Market Is Going to Crash
Some headlines are generating worry that the housing market is a bubble ready to burst. But experts say today is <a href="https://www.mykcm.com/2022/07/14/housing-experts-say-this-isnt-a-bubble/" title="nothing like 2008">nothing like 2008</a>. One of the reasons why is because lending standards are very different today. Logan Mohtashami, Lead Analyst for HousingWire, <a href="https://www.housingwire.com/articles/will-mortgage-lending-get-tighter-in-the-next-recession/" target="_blank" title="explains">explains</a>:
“As recession talk becomes more prevalent, some people are concerned that mortgage credit lending will get much tighter. This typically happens in a recession, however, the notion that credit lending in America will collapse as it did from 2005 to 2008 couldn’t be more incorrect, as we haven’t had a credit boom in the period between 2008-2022.”
During the last <a href="https://www.mykcm.com/2022/06/27/two-reasons-why-todays-housing-market-isnt-a-bubble/" title="housing bubble">housing bubble</a>, it was much easier to get a mortgage than it is today. Since then, <a href="https://www.mykcm.com/2022/06/01/why-home-loans-today-arent-what-they-were-in-the-past/" title="lending standards">lending standards</a> have tightened significantly, and purchasers who acquired a mortgage over the last decade are much more qualified than they were in the years leading up to the crash.
Bottom Line
No matter what you’re hearing about the housing market, let’s connect so that I can help you make informed decisions. That way, you’ll have a knowledgeable authority on your side that knows the ins and outs of the East County market, including current trends, historical context, and so much more.2022-07-29T06:20:00-07:002022-07-28T15:21:29-07:00Steven Rotsarttag:eastsandiegocounty.com,2012-09-20:21056Want To Buy a Home in East County? Now May Be the Time.There are <a href="https://www.mykcm.com/2022/07/22/great-news-about-housing-inventory-infographic/" title="more homes for sale">more homes for sale</a> today than at any time last year. So, if you tried to <a href="https://www.mykcm.com/2022/07/13/should-i-buy-a-home-right-now/" title="buy a home">buy a home</a> in East County last year and were outbid or out priced, now may be your opportunity. The number of homes for sale in the U.S. has been growing over the past four months as rising <a href="https://www.mykcm.com/2022/07/26/a-window-of-opportunity-for-homebuyers/" title="mortgage rates">mortgage rates</a> help slow the frenzy the <a href="https://www.mykcm.com/2022/07/14/housing-experts-say-this-isnt-a-bubble/" title="housing market">housing market</a> saw during the pandemic.
Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), <a href="https://www.bloomberg.com/news/articles/2022-07-08/should-i-buy-a-house-with-rates-lower-experts-say-prices-may-fall-more" target="_blank" title="explains">explains</a> why the shifting market creates a window of opportunity for you:
“This is an opportunity for people with a secure job to jump into the market, when other people are a little hesitant because of a possible recession. . . They’ll have fewer buyers to compete with.”
Two Reasons There Are More Homes for Sale
The first reason the market is seeing more homes available for sale is the number of sales happening each month has decreased. This slowdown has been caused by rising mortgage rates and rising <a href="https://www.mykcm.com/2022/07/25/whats-causing-ongoing-home-price-appreciation/" title="home prices">home prices</a>, leading many to postpone or put off buying. The graph below uses data from realtor.com to show how <a href="https://www.realtor.com/research/data/" target="_blank" title="active real estate listings">active real estate listings</a> have risen over the past four months as a result.
<img src="https://assets.site-static.com/userfiles/1763/image/kcm-infographic-1658959548.jpg" width="960" height="840" />
The second reason the market is seeing <a href="https://www.mykcm.com/2022/06/28/a-key-opportunity-for-homebuyers/" title="more homes available">more homes available</a> for sale is because the number of people selling their homes is also rising. The graph below outlines <a href="https://www.realtor.com/research/data/" target="_blank" title="new monthly listings">new monthly listings</a> coming onto the market compared to last year. As the graph shows, for the past three months, more people have put their homes on the market than the previous year.
<img src="https://assets.site-static.com/userfiles/1763/image/kcm-infographic-1658959572.jpg" width="960" height="840" />
Bottom Line
The number of homes for sale across the country is growing, and that means more options for those thinking about buying a home in La Mesa, El Cajon, Alpine, Descanso, Santee, Lakeside, Lemon Grove, Spring Valley or anywhere in East San Diego County. Whether you were outbid or out priced last year and have been waiting for this opportunity, let’s connect so that I can help you win in today’s market.2022-07-28T06:13:00-07:002022-07-27T15:16:23-07:00Steven Rotsarttag:eastsandiegocounty.com,2012-09-20:21031A Window of Opportunity for East County HomebuyersMortgage rates are much higher today than they were at the beginning of the year, and that’s had a clear impact on the <a href="https://www.mykcm.com/2022/07/12/expert-housing-market-forecasts-for-the-second-half-of-the-year/" title="housing market">housing market</a>. As a result, the market is seeing a shift back toward the range of pre-pandemic levels for buyer demand and home sales.
But the transition back toward pre-pandemic levels isn’t a bad thing. In fact, the years leading up to the pandemic were some of the best the housing market has seen. That’s why, as the market undergoes this shift, it’s important to compare today not to the abnormal pandemic years, but to the most recent normal years to show how the current <a href="https://www.mykcm.com/2022/07/14/housing-experts-say-this-isnt-a-bubble/" title="housing market">housing market</a> is still strong.
Higher Mortgage Rates Are Moderating the Housing Market
The <a href="https://www.showingtime.com/showingtime-showing-index/" target="_blank" title="ShowingTime Showing Index">ShowingTime Showing Index</a> tracks the traffic of home showings according to agents and brokers. It’s also a good indication of buyer demand over time. Here’s a look at their <a href="https://www.showingtime.com/blog/may-2022-showing-index-results/" target="_blank" title="data">data</a> going back to 2017 (see graph below):
<img src="https://assets.site-static.com/userfiles/1763/image/kcm-infographic-1658873333.jpg" width="1000" height="870" />
Here’s a breakdown of the story this data tells:
The 2017 through early 2020 numbers (shown in gray) give a good baseline of pre-pandemic demand. The steady up and down trends seen in each of these years show typical seasonality in the market.
The blue on the graph represents the pandemic years. The height of those blue bars indicates home showings skyrocketed during the pandemic.
The most recent data (shown in green), indicates buyer demand is moderating back toward more pre-pandemic levels.
This shows that buyer demand is coming down from levels seen over the past two years, and the frenzy in real estate is easing because of higher mortgage rates. For you, that means buying your next home should be <a href="https://www.mykcm.com/2022/06/28/a-key-opportunity-for-homebuyers/" title="less challenging">less challenging</a> than it would’ve been during the pandemic because there is more inventory available.
Higher Mortgage Rates Slow the Once Frenzied Pace of Home Sales
As mortgage rates started to rise this year, other shifts began to occur too. One additional example is the slowing pace of home sales. Using <a href="https://www.nar.realtor/newsroom/existing-home-sales-slid-5-4-in-june" target="_blank" title="data">data</a> from the National Association of Realtors (NAR), here’s a look at <a href="https://www.nar.realtor/research-and-statistics/housing-statistics/existing-home-sales" target="_blank" title="existing home sales">existing home sales</a> going all the way back to 2017. Much like the previous graph, a similar trend emerges (see graph below):
<img src="https://assets.site-static.com/userfiles/1763/image/kcm-infographic-1658873442.jpg" width="1000" height="870" />
Again, the data paints a picture of the shift:
The pre-pandemic years (shown in gray) establish a baseline of the number of existing home sales in more typical years.
The pandemic years (shown in blue) exceeded the level of sales seen in previous years. That’s largely because low mortgage rates during that time spurred buyer demand and home sales to new heights.
This year (shown in green), the market is feeling the impact of higher mortgage rates and that’s moderating buyer demand (and by extension home sales). That’s why the expectation for home sales this year is closer to what the market saw in 2018-2019.
Why Is All of This Good News for You?
Both of those factors have opened up a window of opportunity for homeowners <a href="https://www.mykcm.com/2022/07/18/wondering-where-youll-move-if-you-sell-your-house-today/" title="looking to move">looking to move</a> and for <a href="https://www.mykcm.com/2022/07/13/should-i-buy-a-home-right-now/" title="buyers">buyers</a> looking to purchase a home. As demand moderates and the pace of home sales slows, housing inventory is able to grow – and that gives you <a href="https://www.mykcm.com/2022/06/17/more-listings-are-coming-onto-the-market-infographic/" title="more options">more options</a> for your home search.
So don’t let the headlines about the market cooling or moderating scare you. The housing market is still strong; it’s just easing off from the unsustainable frenzy it saw during the height of the pandemic – and that’s a good thing. It opens up new opportunities for you to find a home that meets your needs.
Bottom Line
The housing market is undergoing a shift because of higher mortgage rates, but the market is still strong. If you’ve been looking to buy a home over the last couple of years and it felt impossible to do, now may be your opportunity. Buying a home right now isn’t easy, but there is more opportunity for those who are looking. Let’s connect today so I can guide you through the process of moving to your dream home in La Mesa, El Cajon, Alpine, Descanso, Santee, Lakeside, Lemon Grove, Spring Valley or anywhere in East San Diego County.
2022-07-27T06:34:00-07:002022-07-26T15:38:15-07:00Steven Rotsarttag:eastsandiegocounty.com,2012-09-20:21003What’s Causing Ongoing Home Price Appreciation?If you’re thinking about <a href="https://www.mykcm.com/2022/07/13/should-i-buy-a-home-right-now/" title="making a move">making a move</a>, you probably want to know what’s going to happen to <a href="https://www.mykcm.com/2022/06/16/home-price-deceleration-doesnt-mean-home-price-depreciation/" title="home prices">home prices</a> for the rest of the year. While experts say <a href="https://www.mykcm.com/2022/07/21/think-home-prices-are-going-to-fall-think-again/" title="price growth">price growth</a> will moderate due to the shifting market, ongoing appreciation is expected. That means home prices won’t fall. Here’s a look at two key reasons experts forecast continued price growth: supply and demand.
While Growing, Housing Supply Is Still Low
Even though <a href="https://www.mykcm.com/2022/06/28/a-key-opportunity-for-homebuyers/" title="inventory is increasing">inventory is increasing</a> this year as the <a href="https://www.mykcm.com/2022/06/14/is-the-housing-market-correcting/" title="market moderates">market moderates</a>, supply is still low. The graph below helps tell the story of why there still aren’t enough homes on the market today. It uses <a href="http://www.census.gov/construction/nrc/xls/co_cust.xls" target="_blank" title="data">data</a> from the Census to show the number of single-family homes that were built in this country going all the way back to the 1970s.
<img src="https://assets.site-static.com/userfiles/1763/image/kcm-infographic-1658786943.jpg" width="1000" height="870" />
The blue bars represent the years leading up to the housing crisis in 2008. As the graph shows, right before the crash, homebuilding increased significantly. That’s because buyer demand was so high due to loose <a href="https://www.mykcm.com/2022/06/01/why-home-loans-today-arent-what-they-were-in-the-past/" title="lending">lending</a> standards that enabled more people to qualify for a home loan.
The resulting oversupply of homes for sale led to prices dropping during the crash and some builders leaving the industry or closing their businesses – and that led to a long period of underbuilding of new homes. And even as more new homes are constructed this year and, in the years, ahead, this isn’t something that can be resolved overnight. It’ll take time to build enough homes to meet the deficit of underbuilding that took place over the past 14 years.
Millennials Will Create Sustained Buyer Demand Moving Forward
The frenzy the market saw during the pandemic is because there was more demand than homes for sale. That drove home prices up as buyers competed with one another for available homes. And while buyer demand has moderated today in response to higher mortgage rates, <a href="https://data.census.gov/cedsci/table?q=United%20States&t=Populations%20and%20People&g=0100000US&tid=ACSST5Y2020.S0101" target="_blank" title="data">data</a> tells us demand will continue to be driven by the large generation of millennials aging into their peak homebuying years (see graph below):
<img src="https://assets.site-static.com/userfiles/1763/image/kcm-infographic-1658787006.jpg" width="1000" height="870" />
Odeta Kushi, Deputy Chief Economist at First American, <a href="https://blog.firstam.com/economics/millennials-continued-to-drive-homeownership-demand-in-2021" target="_blank" title="explains">explains</a>:
“. . . millennials continue to transition to their prime home-buying age and will remain the driving force in potential homeownership demand in the years ahead.”
That combination of millennial demand and low housing supply continues to put upward pressure on home prices. As Bankrate <a href="https://www.bankrate.com/real-estate/june-2022-fed-housing-comments/" target="_blank" title="says">says</a>:
“After all, supplies of homes for sale remain near record lows. And while a jump in mortgage rates has dampened demand somewhat, demand still outpaces supply, thanks to a combination of little new construction and strong household formation by large numbers of millennials.”
What This Means for Home Prices
If you’re worried home values will fall, rest assured that experts forecast ongoing home price appreciation thanks to the lingering imbalance of supply and demand. That means home prices won’t decline.
Bottom Line
Based on today’s factors driving supply and demand, experts project home price appreciation will continue. It’ll just happen at a more moderate pace as the housing market continues its shift back toward pre-pandemic levels. If you’re looking for an expert in La Mesa, El Cajon, Alpine, Descanso, Santee, Lakeside, Lemon Grove, Spring Valley or anywhere in East San Diego County to guide you buy or sell, let’s connect.2022-07-26T06:19:00-07:002022-07-25T15:22:50-07:00Steven Rotsarttag:eastsandiegocounty.com,2012-09-20:20974Great News About Housing Inventory in East County<img src="https://assets.site-static.com/userfiles/1763/image/kcm-infographic-1658528180-min-min.jpg" width="1046" height="2165" />
Experts say the number of homes for sale is <a href="https://www.mykcm.com/2022/06/28/a-key-opportunity-for-homebuyers/" title="growing">growing</a> this year, and that can have a big impact on your move.
If you’re planning to buy in La Mesa, El Cajon, Alpine, Descanso, Santee, Lakeside, Lemon Grove, Spring Valley or anywhere in East San Diego County, <a href="https://news.move.com/2022-06-13-Realtor-com-R-2022-Forecast-Update-Real-Estate-Gets-a-Refresh-from-the-Frenzy" target="_blank" title="additional options">additional options</a> in today’s market may be just what you’ve been waiting for. More <a href="https://www.mykcm.com/2022/06/17/more-listings-are-coming-onto-the-market-infographic/" title="inventory">inventory</a> means <a href="https://www.nar.realtor/blogs/economists-outlook/measuring-affordability-and-availability-of-homes-as-mortgage-rates-continue-to-rise" target="_blank" title="added opportunities">added opportunities</a> to find the home of your dreams.
Let’s connect so you have the latest information on available homes in East County.2022-07-23T06:30:00-07:002022-07-22T15:33:07-07:00Steven Rotsarttag:eastsandiegocounty.com,2012-09-20:20948Think Home Prices Are Going to Fall in East County? Think AgainOver the last two years, the rate of home prices appreciated at a dramatic pace. While that led to incredible <a href="https://www.mykcm.com/2022/06/21/the-average-homeowner-gained-64k-in-equity-over-the-past-year/" title="equity gains">equity gains</a> for homeowners, it’s also caused some buyers to wonder if home prices will fall. It’s important to know the housing market <a href="https://www.mykcm.com/2022/07/14/housing-experts-say-this-isnt-a-bubble/" title="isn’t a bubble">isn’t a bubble</a> about to burst, and home price growth is supported by strong market fundamentals.
To understand why price declines are unlikely, it’s important to explore what caused home prices to rise so much recently, and where experts say home prices are headed. Here’s what you need to know.
Home Prices Rose Significantly in Recent Years
The graph below uses the latest data from <a href="https://www.corelogic.com/press-releases/corelogic-data-national-home-price-gains-continue-to-exceed-20-in-may/" target="_blank" title="CoreLogic">CoreLogic</a> to illustrate the rise in home prices over the past year and a half. The gray bars represent the dramatic increase in the rate of home price appreciation in 2021. The green bars show home prices are still rising in 2022, but not as quickly:
<img src="https://assets.site-static.com/userfiles/1763/image/kcm-infographic-1658441263.jpg" width="960" height="840" />
You might be asking: why did home prices climb so much last year? It’s because there were more buyers than there were homes for sale. That imbalance put upward pressure on home prices because demand was extremely high, and supply was record low.
Where Experts Say Prices Will Go from Here
While <a href="https://www.mykcm.com/2022/06/28/a-key-opportunity-for-homebuyers/" title="housing inventory">housing inventory</a> is increasing and buyer demand is softening today, there’s still a shortage of homes available for sale. That’s why the market is seeing ongoing price appreciation. Mark Fleming, Chief Economist at First American, <a href="https://twitter.com/YahooFinance/status/1545073046393802757" target="_blank" title="explains">explains</a> it like this:
“. . .we’re still well below normal levels of inventory and that’s why even with the pullback in demand, we still see house prices appreciating. While there is more inventory, it’s still not enough.”
As a result, experts are projecting a more moderate rate of <a href="https://www.mykcm.com/2022/06/16/home-price-deceleration-doesnt-mean-home-price-depreciation/" title="home price appreciation">home price appreciation</a> this year, which means home prices will continue rising, but at a slower pace. That doesn’t mean prices are going to fall. As Selma Hepp, Deputy Chief Economist at CoreLogic, <a href="https://www.bankrate.com/real-estate/housing-market-predictions/" target="_blank" title="says">says</a>:
“The current home price growth rate is unsustainable, and higher mortgage rates coupled with more inventory will lead to slower home price growth but unlikely declines in home prices.”
In other words, even with higher mortgage rates, moderating buyer demand, and more <a href="https://www.mykcm.com/2022/06/17/more-listings-are-coming-onto-the-market-infographic/" title="homes for sale">homes for sale</a>, experts say home price appreciation will slow, but prices won’t decline.
If you’re planning to buy a home in La Mesa, El Cajon, Alpine, Descanso, Santee, Lakeside, Lemon Grove, Spring Valley or anywhere in East San Diego County, that means you shouldn’t wait for home prices to drop to make your purchase. Instead, buying today means you can get ahead of future price increases, and benefit from the rise in prices in the form of <a href="https://www.mykcm.com/2022/07/08/why-growing-home-equity-is-great-news-if-you-plan-to-move-infographic/" title="home equity">home equity</a>.
Bottom Line
Home prices skyrocketed in recent years because there was more demand than supply. As the market shifts, experts aren’t forecasting a drop in prices, just a slowdown in the rate of price growth. To understand what’s happening with home prices in East San Diego County, let’s connect today.2022-07-22T06:19:00-07:002022-07-21T15:21:24-07:00Steven Rotsarttag:eastsandiegocounty.com,2012-09-20:20896Should You Buy a Home in East County with Inflation This High?While the Federal Reserve is working hard to bring down inflation, the <a href="https://www.nytimes.com/live/2022/07/12/business/cpi-report-inflation" target="_blank" title="latest data">latest data</a> shows the inflation rate is still going up. You no doubt are feeling the pinch on your wallet at the gas pump or the grocery store, but that news may also leave you wondering: should I still buy a home right now?
Greg McBride, Chief Financial Analyst at Bankrate, <a href="https://www.bankrate.com/mortgages/inflation-housing-market/" target="_blank" title="explains">explains</a> how inflation is affecting the housing market:
“Inflation will have a strong influence on where mortgage rates go in the months ahead. . . . Whenever inflation finally starts to ease, so will mortgage rates — but even then, home prices are still subject to demand and very tight supply.”
No one knows how long it’ll take to bring down <a href="https://www.mykcm.com/2022/05/20/dont-let-rising-inflation-delay-your-homeownership-plans-infographic/" title="inflation">inflation</a>, and that means the future trajectory of mortgage rates is also unclear. While that uncertainty isn’t comfortable, here’s why both inflation and mortgage rates are important for you and your homeownership plans.
When you buy a home, the mortgage rate and the price of the home matter. Higher mortgage rates impact how much you’ll pay for your monthly mortgage payment – and that directly affects how much you can comfortably afford. And while there’s no denying it’s more expensive to buy and finance a home this year than it was last year, it doesn’t mean you should pause your search. Here’s why.
Homeownership Is Historically a Great Hedge Against Inflation
In an inflationary economy, prices rise across the board. Historically, homeownership is a <a href="https://www.mykcm.com/2022/06/23/homeownership-is-a-great-hedge-against-the-impact-of-rising-inflation/" title="great hedge">great hedge</a> against those rising costs because you can lock in what’s likely your largest monthly payment (your mortgage) for the duration of your loan. That helps stabilize some of your monthly expenses. Not to mention, as <a href="https://www.mykcm.com/2022/06/16/home-price-deceleration-doesnt-mean-home-price-depreciation/" title="home prices">home prices</a> continue to appreciate, your home’s value will too. That’s why Mark Cussen, Financial Writer at Investopedia, <a href="https://www.investopedia.com/articles/investing/060916/top-5-ways-hedge-against-inflation.asp" target="_blank" title="says">says</a>:
“Real estate is one of the time-honored inflation hedges. It’s a tangible asset, and those tend to hold their value when inflation reigns, unlike paper assets. More specifically, as prices rise, so do property values.”
Also, no one is calling for homes to lose value. As Selma Hepp, Deputy Chief Economist at CoreLogic, <a href="https://www.bankrate.com/real-estate/housing-market-predictions/" target="_blank" title="says">says</a>:
“The current home price growth rate is unsustainable, and higher mortgage rates coupled with more inventory will lead to slower home price growth but unlikely declines in home prices.”
In a nutshell, your home search doesn’t have to go on hold because of rising inflation or higher mortgage rates. There’s more to consider when it comes to why you want to buy a home. In addition to shielding yourself from the impact of inflation and growing <a href="https://www.mykcm.com/2022/07/06/how-your-equity-can-grow-over-time/" title="your wealth">your wealth</a> through ongoing price appreciation, there are other reasons to buy a home right now like addressing your changing needs and so much more.
Bottom Line
Homeownership is one of the best decisions you can make in an inflationary economy. You get the benefit of the added security of owning your home in a time when experts are forecasting prices to continue to rise. Let’s connect so that I can help you find opportunities in La Mesa, El Cajon, Alpine, Descanso, Santee, Lakeside, Lemon Grove, Spring Valley or anywhere in East San Diego County.2022-07-21T06:28:00-07:002022-07-20T15:31:17-07:00Steven Rotsarttag:eastsandiegocounty.com,2012-09-20:20878Why Pre-Approval Is a Game Changer for East County HomebuyersIf you’re planning to <a href="https://www.mykcm.com/2022/06/28/a-key-opportunity-for-homebuyers/" title="buy a home">buy a home</a> this year, you might have heard that pre-approval is a necessary step to take before starting out on your journey. But why is that? And is it still important in <a href="https://www.mykcm.com/2022/07/12/expert-housing-market-forecasts-for-the-second-half-of-the-year/" title="today’s shifting market">today’s shifting market</a>?
The truth is, getting a pre-approval letter from your lender is critical, and when it comes to your home search, it can be a game changer in so many ways.
To better understand why, it’s important to know what pre-approval is. Freddie Mac <a href="https://myhome.freddiemac.com/blog/homeownership/how-do-i-get-pre-approved-mortgage" target="_blank" title="defines">defines</a> the process like this:
“A pre-approval is an indication from your lender that they are willing to lend you a certain amount of money to buy your future home. The lender you work with will provide you with a pre-approval letter, which is an official document that states the maximum amount they are willing to lend you, . . .”
Put simply, pre-approval from a lender helps you understand your true price range and how much money you can borrow for <a href="https://www.mykcm.com/2022/06/22/things-to-avoid-after-applying-for-a-home-loan/" title="your loan">your loan</a>. That can make it easier when you set out to search for homes in La Mesa, El Cajon, Alpine, Descanso, Santee, Lakeside, Lemon Grove, Spring Valley or anywhere in East San Diego County. And since you’ll know what you’re approved for, it’ll also help once it’s time to submit an offer on the home of your <a href="https://www.mykcm.com/2022/07/05/is-homeownership-still-the-american-dream/" title="dreams">dreams</a>.
Another added benefit is that pre-approval lets the seller know you’re qualified to buy their house. Paul Centopani, Editor for the Mortgage Reports, <a href="https://themortgagereports.com/92875/first-time-buyer-expert-financial-tips-podcast" target="_blank" title="explains">explains</a>:
“. . . most sellers won’t even consider an offer unless the buyer is pre-approved at the right price point. Sellers and their agents want to know you’re ready and able to finance your offer amount. So you’ll want to have your preapproval teed up as soon as you’re serious about bidding on a home you like.”
Every advantage you can gain as a buyer is crucial in a market that’s <a href="https://www.mykcm.com/2022/06/14/is-the-housing-market-correcting/" title="constantly changing">constantly changing</a>. You’re going to need guidance to navigate these waters, so it’s important to have a team of professionals, such as a real estate advisor and trusted lender, on your side. They’ll help make sure you’re ready to put your best foot forward.
Bottom Line
Getting pre-approved for a mortgage helps you better understand what you can borrow and shows sellers you’re serious about purchasing their home. Let’s connect so you have the tools you need to succeed as a homebuyer in today’s shifting market.2022-07-20T06:19:00-07:002022-07-19T15:24:17-07:00Steven Rotsarttag:eastsandiegocounty.com,2012-09-20:20855Wondering Where You’ll Move if You Sell Your East County House Today?If you put a pause on your home search because you weren’t sure where you’d go once you sold your East County house, it might be a <a href="https://www.mykcm.com/2022/06/07/why-the-growing-number-of-homes-for-sale-is-good-for-your-move-up/" title="good time">good time</a> to get back into the market. That’s because today’s market is <a href="https://www.mykcm.com/2022/06/14/is-the-housing-market-correcting/" title="undergoing a shift">undergoing a shift</a>, and the supply of homes for sale is increasing as a result. That means you may have a better chance of finding a home that will meet your current needs. Here are some options to consider.
Buying an Existing Home Can Give You That Lived-in Charm
According to the National Association of Realtors (NAR), the supply of <a href="https://www.nar.realtor/newsroom/existing-home-sales-fell-3-4-in-may-median-sales-price-surpasses-400000-for-the-first-time" target="_blank" title="existing homes">existing homes</a> (a home that’s been previously owned) has steadily increased since the beginning of the year. The graph below indicates inventory levels are rising, and that’s largely due to <a href="https://www.mykcm.com/2022/06/28/a-key-opportunity-for-homebuyers/" title="more homes">more homes</a> coming onto the market and the pace of sales slowing:
<img src="https://assets.site-static.com/userfiles/1763/image/kcm-infographic-1658181998.jpg" width="960" height="840" />
As the graph shows, if you’re looking for a home with lived-in charm, supply is rising, and that’s great news for you.
Danielle Hale, Chief Economist for realtor.com, gives <a href="https://www.realtor.com/research/weekly-housing-trends-view-data-week-june-18-2022/" target="_blank" title="insight">insight</a> into why more homeowners are listing their homes and adding to the growing supply of existing homes today:
“Home sellers in many markets across the country continue to benefit from rising home prices and fast-selling homes. That’s prompted a growing number of homeowners to sell homes this year compared to last, giving home shoppers much needed options. We’ve seen more homes come up for sale this year compared to last year . . .”
There are several benefits to buying an existing home. Many buyers want to purchase a home with history, and the character of older houses is hard to reproduce. Existing homes can often be part of an established neighborhood featuring mature landscaping that can give you additional privacy and boost your curb appeal.
Plus, timing can be a consideration as well. With an existing home, you can move in based on the timeline you agree to with the sellers, rather than building a new home and waiting for construction to finish. This is something to keep in mind, especially if you need to move sooner rather than later.
Just remember, while more sellers are listing their homes, supply is still low overall. That means you’ll have more options to choose from as you search for your next home, but you’ll still need to be prepared for a fast-moving market.
Purchasing a Newly Built or Under Construction Home Means Brand New Everything
Census <a href="https://www.census.gov/construction/nrs/pdf/newressales.pdf" target="_blank" title="data">data</a> shows there’s an increasing number of new homes available for sale. It includes homes that are under construction, soon to be completed, and fully built. As the graph below highlights, the supply of new homes for sale has also grown this year:
<img src="https://assets.site-static.com/userfiles/1763/image/kcm-infographic-1658182047.jpg" width="960" height="840" />
When building a new home, you can create your perfect living space and customize it to your lifestyle. That could mean everything from requesting energy efficient options to specific design features. Plus, you’ll have the benefit of all new appliances, windows, roofing, and more. These can all help lower your <a href="https://www.mykcm.com/2022/03/25/how-an-energy-efficient-home-can-be-a-bright-idea-infographic/" title="energy costs">energy costs</a>, which can add up to significant savings over time.
The lower maintenance that comes with a newer home is another great advantage. When you have a new home, you likely won’t have as many little repairs to tackle, like leaky faucets, shutters to paint, and other odd jobs around the house. And with new construction, you’ll also have warranty options that may cover portions of your investment for the first few years.
Keep in mind, purchasing a new home could mean waiting a considerable amount of time before you can move. Robert Dietz, Chief Economist and Senior Vice President for Economics and Housing Policy at the National Association of Home Builders (NAHB), <a href="https://eyeonhousing.org/2022/06/new-home-sales-increase-in-may-before-feds-june-rate-rise/" target="_blank" title="explains">explains</a>:
“New single-family home inventory remained elevated at a 7.7 months’ supply. . . . However, only 8.3% of new home inventory is completed and ready to occupy. The remaining have not started construction (25.9%) or are currently under construction.”
That’s an important factor when making your decision and one you should discuss with a trusted real estate advisor. I’ll help you think through all the pros and cons of both new and existing homes to help you arrive at your best decision.
Bottom Line
With the supply of homes for sale rising in East San Diego County, you have options for your next home no matter what your preferences are. If you have questions or want help deciding what’s best for you, let’s connect and start the conversation today.2022-07-19T06:21:00-07:002022-07-18T15:33:58-07:00Steven Rotsarttag:eastsandiegocounty.com,2012-09-20:20836Should I Rent or Should I Buy in East County?<img src="https://assets.site-static.com/userfiles/1763/image/kcm-infographic-1657924089-min-min.jpg" width="1046" height="2259" />
It’s worth considering the many benefits of homeownership before you make the decision to rent or buy a home in La Mesa, El Cajon, Alpine, Descanso, Santee, Lakeside, Lemon Grove, Spring Valley or anywhere in East San Diego County.
When you buy, you can <a href="https://www.mykcm.com/2022/06/23/homeownership-is-a-great-hedge-against-the-impact-of-rising-inflation/" title="stabilize">stabilize</a> your housing costs, own a tangible <a href="https://www.mykcm.com/2022/07/01/real-estate-consistently-voted-best-investment-infographic/" title="asset">asset</a>, and grow your <a href="https://www.mykcm.com/2022/07/06/how-your-equity-can-grow-over-time/" title="net worth">net worth</a> as you <a href="https://www.mykcm.com/2022/06/21/the-average-homeowner-gained-64k-in-equity-over-the-past-year/" title="gain equity">gain equity</a>. When you rent, you face <a href="https://www.census.gov/housing/hvs/files/currenthvspress.pdf" target="_blank" title="rising housing costs">rising housing costs</a>, won’t see a return on your investment, and limit your ability to save.
If you want to learn more about the benefits of homeownership, let’s connect today.2022-07-16T06:36:00-07:002022-07-15T15:41:09-07:00Steven Rotsarttag:eastsandiegocounty.com,2012-09-20:20805Housing Experts Say This Isn’t a Bubble With so much talk about an <a href="https://www.mykcm.com/2022/06/03/history-proves-recession-doesnt-equal-a-housing-crisis-infographic/" title="economic slowdown">economic slowdown</a>, some people are asking if the housing market is heading for a <a href="https://www.mykcm.com/2022/06/27/two-reasons-why-todays-housing-market-isnt-a-bubble/" title="crash">crash</a> like the one in 2008. To really understand what’s happening with real estate today, it’s important to lean on the experts for reliable information.
Here’s why economists and industry experts say the <a href="https://www.mykcm.com/2022/06/14/is-the-housing-market-correcting/" title="housing market">housing market</a> is not a <a href="https://www.mykcm.com/2022/04/21/why-this-housing-market-is-not-a-bubble-ready-to-pop/" title="bubble">bubble</a> ready to pop.
Today Is Nothing Like 2008
The 2008 housing crash is still fresh in the minds of many homebuyers and sellers. But today’s market is different. Odeta Kushi, Deputy Chief Economist at First American, <a href="https://www.businessinsider.com/housing-crash-unlikely-but-correction-is-probable-2022-5" target="_blank" title="says">says</a>:
“This is not the same market of 2008. . . . It’s no secret the housing market played a central role in the Great Recession, but this market is just fundamentally different in so many ways.”
Natalie Campisi, Advisor Staff for Forbes, <a href="https://www.forbes.com/advisor/mortgages/real-estate/will-housing-market-crash/" target="_blank" title="explains">explains</a> how today’s <a href="https://www.mykcm.com/2022/06/01/why-home-loans-today-arent-what-they-were-in-the-past/" title="lending standards">lending standards</a> are different than those during the lead-up to the housing market crash:
“Among the differences between today’s housing market and that of the 2008 housing crash is that lending standards are tighter due to lessons learned and new regulations enacted after the last crisis. Essentially, that means those approved for a mortgage nowadays are less likely to default than those who were approved in the pre-crisis lending period.”
Another reason today’s housing market is nothing like 2008 is that the number of people looking to buy a home still outweighs the supply of homes for sale. As realtor.com <a href="https://www.realtor.com/news/trends/housing-market-showing-signs-of-correction-what-buyers-sellers-need-to-know/" target="_blank" title="notes">notes</a>:
“. . . experts don’t believe the market is in a bubble or a crash is in the cards, like during the Great Recession. The nation is still suffering from a housing shortage that has reached crisis proportions at a time when many millennials are reaching the age when they start to consider homeownership. That’s likely to keep prices high.”
Bottom Line
Experts say the housing market isn’t a bubble, and we’re not heading for a crash. Let’s connect so you can have a full picture of today’s housing market in East County.2022-07-15T06:19:00-07:002022-07-14T15:20:24-07:00Steven Rotsarttag:eastsandiegocounty.com,2012-09-20:20772Should I Buy a Home Right Now?If you’ve been thinking about <a href="https://www.mykcm.com/2022/06/28/a-key-opportunity-for-homebuyers/" title="buying a home">buying a home</a> in East County, you likely have one question on the top of your mind: should I buy right now, or should I wait? While no one can answer that question for you, here’s some information that could help you make your decision.
The Future of Home Price Appreciation
Each quarter, Pulsenomics <a href="https://pulsenomics.com/surveys/#home-price-expectations" target="_blank" title="surveys">surveys</a> a national panel of over 100 economists, real estate experts, and investment and market strategists to compile projections for the future of <a href="https://www.mykcm.com/2022/06/16/home-price-deceleration-doesnt-mean-home-price-depreciation/" title="home price appreciation">home price appreciation</a>. The output is the Home Price Expectation Survey. In the latest release, it forecasts home prices will continue appreciating over the next five years (see graph below):
<img src="https://assets.site-static.com/userfiles/1763/image/kcm-infographic-1657750034.jpg" width="1000" height="870" />
As the graph shows, the rate of appreciation will moderate over the next few years as the <a href="https://www.mykcm.com/2022/06/14/is-the-housing-market-correcting/" title="market shifts">market shifts</a> away from the unsustainable pace it saw during the pandemic. After this year, experts project home price appreciation will continue, but at levels that are more typical for the market. As Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), <a href="https://www.marketplace.org/2022/05/18/signs-that-red-hot-housing-market-may-be-cooling-down/" target="_blank" title="says">says</a>:
“People should not anticipate another double-digit price appreciation. Those days are over. . . . We may return to more normal price appreciation of 4%, 5% a year.”
For you, that ongoing appreciation should give you peace of mind <a href="https://www.mykcm.com/2022/07/01/real-estate-consistently-voted-best-investment-infographic/" title="your investment">your investment</a> in homeownership is worthwhile because you’re buying an asset that’s projected to grow in value in the years ahead.
What Does That Mean for You?
To give you an idea of how this could impact your <a href="https://www.mykcm.com/2021/08/30/the-difference-in-net-worth-between-homeowners-and-renters-is-widening/" title="net worth">net worth</a>, here’s how a typical home could grow in value over the next few years using the expert price appreciation projections from the Pulsenomics survey mentioned above (see graph below):
<img src="https://assets.site-static.com/userfiles/1763/image/kcm-infographic-1657750085.jpg" width="1000" height="870" />
As the graph conveys, even at a more typical pace of appreciation, you still stand to make significant <a href="https://www.mykcm.com/2022/06/21/the-average-homeowner-gained-64k-in-equity-over-the-past-year/" title="equity gains">equity gains</a> as your home grows in value. That’s what’s at stake if you delay your plans.
Bottom Line
If you’re ready to become a homeowner in La Mesa, El Cajon, Alpine, Descanso, Santee, Lakeside, Lemon Grove, Spring Valley or anywhere in East San Diego County, know that buying today can set you up for long-term success as your asset’s value (and your own net worth) is projected to grow with the ongoing home price appreciation. Let’s connect to begin your homebuying process today.2022-07-14T06:17:00-07:002022-07-13T15:26:19-07:00Steven Rotsarttag:eastsandiegocounty.com,2012-09-20:20747Expert Housing Market Forecasts for the Second Half of the YearThe <a href="https://www.mykcm.com/2022/06/14/is-the-housing-market-correcting/" title="housing market">housing market</a> is at a turning point, and if you’re thinking of buying or selling a home, that may leave you wondering: is it still a good time to buy a home? Should I make a move this year? To help answer those questions, let’s turn to the experts for projections on what the second half of the year holds for residential real estate.
Where Mortgage Rates Will Go Depends on Inflation
While one of the big questions on all buyers’ minds is where will mortgage rates go in the months ahead, no one has a crystal ball to know exactly what’ll happen in the future. What <a href="https://www.mykcm.com/2022/06/27/two-reasons-why-todays-housing-market-isnt-a-bubble/" title="housing market">housing market</a> experts know for sure is that the record-low mortgage rates during the pandemic were an outlier, not the norm.
This year, rates have climbed <a href="https://www.freddiemac.com/pmms/archive" target="_blank" title="over 2%">over 2%</a> due to the Federal Reserve’s response to <a href="https://www.mykcm.com/2022/06/23/homeownership-is-a-great-hedge-against-the-impact-of-rising-inflation/" title="rising inflation">rising inflation</a>. If inflation continues to rise, it’s likely that mortgage rates will respond. Greg McBride, Chief Financial Analyst at Bankrate, <a href="https://www.marketwatch.com/picks/until-inflation-peaks-mortgage-rates-wont-either-we-asked-3-economists-and-real-estate-pros-will-mortgage-rates-climb-higher-this-summer-01655941487" target="_blank" title="explains">explains</a> it well:
“Until inflation peaks, mortgage rates won’t either. Without improvement on the inflation front, we don’t know where the interest rate ceiling will be.”
Whether you’re buying your <a href="https://www.mykcm.com/2022/06/08/what-are-the-best-options-for-todays-first-time-homebuyers/" title="first home">first home</a> or selling your current house to <a href="https://www.mykcm.com/2022/06/07/why-the-growing-number-of-homes-for-sale-is-good-for-your-move-up/" title="make a move">make a move</a>, today’s mortgage rate is an important factor to consider. When rates rise, they impact affordability and your purchasing power. That’s why it’s crucial to work with a team of professionals, so you have expert advice to help you make an informed decision about your best move.
The Supply of Homes for Sale Projected to Continue Increasing
This year, particularly this spring, the <a href="https://www.mykcm.com/2022/06/28/a-key-opportunity-for-homebuyers/" title="number of homes for sale">number of homes for sale</a> has grown. That’s partly due to more homeowners listing their houses, but also because higher mortgage rates have helped ease the intensity of buyer demand. Moderating buyer demand slows down the pace of home sales, which in turn helps <a href="https://www.mykcm.com/2022/06/17/more-listings-are-coming-onto-the-market-infographic/" title="inventory rise">inventory rise</a>.
Experts say that growth will continue. Recently, realtor.com updated their <a href="https://news.move.com/2022-06-13-Realtor-com-R-2022-Forecast-Update-Real-Estate-Gets-a-Refresh-from-the-Frenzy" target="_blank" title="2022 inventory forecast">2022 inventory forecast</a>. In the latest release, they increased their projections for inventory gains dramatically, going from a 0.3% increase at the beginning of the year to a 15.0% jump by the end of 2022 (see graph below):
<img src="https://assets.site-static.com/userfiles/1763/image/kcm-infographic-1657663804.jpg" width="960" height="840" />
More homes to choose from is great news if you’re craving more options for your home search – just know that there isn’t a sudden surplus of inventory on the horizon. Housing supply is still low, so you’ll need to partner with an agent to stay on top of what’s available in your market and move fast when you find the one. It’s not going to be easy to find a home, but it certainly won’t be as difficult as it has been over the past two years.
Home Price Forecasts Call for Ongoing Appreciation
Due to the imbalance between the number of homes for sale and the number of buyers looking to make a purchase, the pandemic led to record-breaking increases in home prices. According to <a href="https://www.corelogic.com/intelligence/corelogic-hpi-posted-record-year-over-year-growth-in-2021/" target="_blank" title="CoreLogic">CoreLogic</a>, homes appreciated by 15% in 2021, and they’ve continued to rise this year.
Even though housing supply is increasing today, there are still more buyers than there are homes for sale, and that’s maintaining the upward pressure on <a href="https://www.mykcm.com/2022/06/16/home-price-deceleration-doesnt-mean-home-price-depreciation/" title="home prices">home prices</a>. That’s why experts are not calling for prices to decline, rather they’re forecasting they’ll continue to climb, just at a more moderate pace this year. On average, homes are projected to appreciate by about 8.5% in 2022 (see graph below):
<img src="https://assets.site-static.com/userfiles/1763/image/kcm-infographic-1655419278.jpg" width="1000" height="870" />
Selma Hepp, Deputy Chief Economist at CoreLogic, <a href="https://www.bankrate.com/real-estate/housing-market-predictions/" target="_blank" title="explains">explains</a> why the housing market will see deceleration, but not depreciation, in prices:
“The current home price growth rate is unsustainable, and higher mortgage rates coupled with more inventory will lead to slower home price growth but unlikely declines in home prices.”
For current homeowners looking to sell, know your home’s value isn’t projected to fall, but waiting to make your purchase does mean your next home could cost more as home prices continue to appreciate. That’s why, if you’re thinking about buying your first home or you’re ready to make a move, it may make sense to do so now before prices climb higher. But rest assured, once you buy a home, that price appreciation will help grow the value of your <a href="https://www.mykcm.com/2022/06/13/more-americans-choose-real-estate-as-the-best-investment-than-ever-before/" title="investment">investment</a>.
Bottom Line
Whether you’re a homebuyer or seller, you need to know what’s happening in the East San Diego County housing market, so you can make the most informed decision possible. Let’s connect to discuss your goals and what lies ahead, so you can determine the best plan for your move.2022-07-13T06:38:00-07:002022-07-12T15:43:04-07:00Steven Rotsarttag:eastsandiegocounty.com,2012-09-20:20710The Drop in Mortgage Rates Brings Good News for East County HomebuyersOver the past few weeks, the average 30-year fixed mortgage rate from <a href="https://www.freddiemac.com/pmms" target="_blank" title="Freddie Mac">Freddie Mac</a> fell by half a percent. The drop happened over concerns about a <a href="https://www.mykcm.com/2022/07/07/what-does-an-economic-slowdown-mean-for-the-housing-market/" title="potential recession">potential recession</a>. And since mortgage rates have risen dramatically this year, <a href="https://www.mykcm.com/2022/06/08/what-are-the-best-options-for-todays-first-time-homebuyers/" title="homebuyers">homebuyers</a> across the country should see this decline as welcome news.
Freddie Mac <a href="https://www.freddiemac.com/pmms/archive" target="_blank" title="reports">reports</a> that the average 30-year rate was down to 5.30% from 5.81% two weeks prior (see graph below):
<img src="https://assets.site-static.com/userfiles/1763/image/kcm-infographic-1657577450.jpg" width="1000" height="870" />
But why is this recent dip such good news for <a href="https://www.mykcm.com/2022/06/28/a-key-opportunity-for-homebuyers/" title="homebuyers">homebuyers</a>? As Nadia Evangelou, Senior Economist and Director of Forecasting at the National Association of Realtors (NAR), <a href="https://www.instagram.com/p/Cft5YXTO5UR/?hl=en" target="_blank" title="explains">explains</a>:
“According to Freddie Mac, the 30-year fixed mortgage rate dropped sharply by 40 basis points to 5.3 percent. . . . As a result, home buying is about 5 percent more affordable than a week ago. This translates to about $100 less every month on a mortgage payment.”
That’s because when rates go up (as they have for the majority of this year), they impact how much you’ll pay in your monthly mortgage payment, which directly affects how much you can comfortably afford. The inverse is also true. A decrease in mortgage rates means an increase in your purchasing power.
The chart below shows how a half-point, or even a quarter-point, change in mortgage rates can impact your monthly payment:
<img src="https://assets.site-static.com/userfiles/1763/image/kcm-infographic-1657577768.jpg" width="1000" height="870" />
Bottom Line
If your home doesn’t meet your needs, this may be the opportunity you’ve been waiting for to move to La Mesa, El Cajon, Alpine, Descanso, Santee, Lakeside, Lemon Grove, Spring Valley or anywhere in East San Diego County. Let’s connect to see how you can benefit from the current drop in mortgage rates.2022-07-12T06:23:00-07:002022-07-11T15:28:43-07:00Steven Rotsarttag:eastsandiegocounty.com,2012-09-20:20669Why Growing Home Equity Is Great News if You Plan to Move in East County<img src="https://assets.site-static.com/userfiles/1763/image/kcm-infographic-1657318193.jpg" width="1046" height="1981" />
According to the latest <a href="https://www.corelogic.com/intelligence/homeowner-equity-insights/" target="_blank" title="data">data</a> from CoreLogic, the average Californian homeowner gained $141,000 in <a href="https://www.mykcm.com/2022/06/21/the-average-homeowner-gained-64k-in-equity-over-the-past-year/" title="home equity">home equity</a> over the past 12 months.
That much <a href="https://www.mykcm.com/2022/07/06/how-your-equity-can-grow-over-time/" title="equity">equity</a> can be a game-changer when you move in La Mesa, El Cajon, Alpine, Descanso, Santee, Lakeside, Lemon Grove, Spring Valley or anywhere in East San Diego County. When you sell, it could be some (if not all) of what you need for a down payment on your <a href="https://www.mykcm.com/2022/06/07/why-the-growing-number-of-homes-for-sale-is-good-for-your-move-up/" title="next home">next home</a>.
To find out how much equity you have in your home and how you can use it, let’s connect today.2022-07-09T06:22:00-07:002022-07-08T15:24:01-07:00Steven Rotsarttag:eastsandiegocounty.com,2012-09-20:20636What Does an Economic Slowdown Mean for the Housing Market?According to a recent <a href="https://www.cnbc.com/2022/05/23/americans-worried-about-the-economy-even-before-inflation-boom-fed-survey-shows.html" target="_blank" title="survey">survey</a>, more and more Americans are concerned about a possible recession. Those concerns were validated when the Federal Reserve met and confirmed they were strongly committed to bringing down inflation. And, in order to do so, they’d use their tools and influence to slow down the economy.
All of this brings up many fears and questions around how it might affect our lives, our jobs, and business overall. And one concern many Americans have is: how will this affect the housing market? We know how <a href="https://www.mykcm.com/2022/05/19/the-one-thing-every-homeowner-needs-to-know-about-a-recession/" title="economic slowdowns">economic slowdowns</a> have impacted home prices in the past, but how could this next slowdown affect real estate and the cost of financing a home?
<a href="https://mtg-specialists.com/2022/05/11/recession-interest-rates-and-real-estate/" target="_blank" title="According">According</a> to Mortgage Specialists:
“Throughout history, during a recessionary period, interest rates go up at the beginning of the recession. But in order to come out of a recession, interest rates are lowered to stimulate the economy moving forward.”
Here’s the data to back that up. If you look back at each recession going all the way to the early 1980s, here’s what happened to mortgage rates during those times (see chart below):
<img src="https://assets.site-static.com/userfiles/1763/image/kcm-infographic-1657231783.jpg" width="1000" height="870" />
As the chart shows, historically, each time the economy slowed down, mortgage rates decreased. Fortune.com helps <a href="https://fortune.com/2019/06/19/next-recession-assets-mortgage-rates/" target="_blank" title="explain">explain</a> the trend like this:
“Over the past five recessions, mortgage rates have fallen an average of 1.8 percentage points from the peak seen during the recession to the trough. And in many cases, they continued to fall after the fact as it takes some time to turn things around even when the recession is technically over.”
And while history doesn’t always repeat itself, we can learn from it. While an economic slowdown needs to happen to help taper inflation, it hasn’t always been a bad thing for the housing market. Typically, it has meant that the cost to finance a home has gone down, and that’s a good thing.
Bottom Line
Concerns of a recession are rising. As the economy slows down, history tells us this would likely mean lower mortgage rates for those looking to refinance or buy a home. While no one knows exactly what the future holds, you can make the right decision for you by working with a trusted real estate professional to get expert advice on what’s happening in the housing market in La Mesa, El Cajon, Alpine, Descanso, Santee, Lakeside, Lemon Grove, Spring Valley or anywhere in East San Diego County and what that means for your homeownership goals.2022-07-08T06:18:00-07:002022-07-07T15:23:20-07:00Steven Rotsarttag:eastsandiegocounty.com,2012-09-20:20607How Your Equity Can Grow over TimeIt’s true that record levels of <a href="https://www.mykcm.com/2022/06/16/home-price-deceleration-doesnt-mean-home-price-depreciation" title="home price appreciation">home price appreciation</a> have spurred significant <a href="https://www.mykcm.com/2022/06/21/the-average-homeowner-gained-64k-in-equity-over-the-past-year/" title="equity gains">equity gains</a> for homeowners over the past few years. As Diana Olick, Real Estate Correspondent at CNBC, <a href="https://www.cnbc.com/2022/02/03/housing-wealth-is-setting-new-records-for-both-owners-and-sellers.html#:~:text=The%20stunning%20jump%20in%20home,in%202020%2C%20according%20to%20CoreLogic" target="_blank" title="says">says</a>:
“The stunning jump in home values over the course of the Covid-19 pandemic has given U.S. homeowners record amounts of housing wealth.”
That’s great for your home’s value over the last couple of years, but what if you’ve lived in your home for longer than that? You may be wondering how much equity you truly have.
The National Association of Realtors (NAR) has done <a href="https://www.nar.realtor/blogs/economists-outlook/metro-wealth-reports-as-of-2022-q1" target="_blank" title="a study">a study</a> to calculate the typical equity gains over longer spans of time. The data they compiled could be enough to motivate you to move. Just remember, to find out how much equity you have in your specific home, you’ll want to get a professional equity assessment from a trusted real estate advisor.
How Your Equity Grows
Let’s start by establishing how you build equity in your home. While price appreciation is clearly a factor that can help boost your equity, you also build equity over time as you pay down your <a href="https://www.mykcm.com/2022/06/22/things-to-avoid-after-applying-for-a-home-loan/" title="home loan">home loan</a>. NAR <a href="https://www.nar.realtor/research-and-statistics/research-reports/metro-area-housing-wealth-gains" target="_blank" title="explains">explains</a>:
“Home equity gains are built up through price appreciation and by paying off the mortgage through principal payments.”
Average Equity Growth over Time
The study from NAR breaks down the <a href="https://cdn.nar.realtor/sites/default/files/documents/2022-q1-metro-area-housing-wealth-gains-05-24-2022.pdf" target="_blank" title="typical equity gain">typical equity gain</a> over time (see graph below). It calculates the equity a homeowner potentially gained if they purchased the median-priced home 5, 10, or 30 years ago and still own it today.
<img src="https://assets.site-static.com/userfiles/1763/image/kcm-infographic-1657146058.jpg" width="1000" height="870" />
These six-figure numbers are impressive and certainly enough to help you fuel a move into your next home, but they’re not a promised amount. Remember, your own equity gain will be different. It depends on how long you’ve been in the house, your home’s condition, any upgrades you’ve made, your area, and much more.
If you want to find out how much equity you have, partner with a trusted real estate professional for an equity assessment on your home. I can provide you an expert opinion on what your house is worth today and how the equity you’ve gained over time can help you when you purchase your next home. It may be some (if not all) of what you need for your next down payment.
Bottom Line
If you’re thinking about <a href="https://www.mykcm.com/2022/06/15/a-majority-of-consumers-say-its-a-good-time-to-sell-your-house/" title="selling your house">selling your house</a> and making a move in La Mesa, El Cajon, Alpine, Descanso, Santee, Lakeside, Lemon Grove, Spring Valley or anywhere in East San Diego County, home equity can be a real game-changer, especially if you’ve been in your current home for a while. If you’re ready to find out how much equity you have, let’s connect.2022-07-07T06:31:00-07:002022-07-06T15:33:15-07:00Steven Rotsarttag:eastsandiegocounty.com,2012-09-20:20567Is Homeownership Still the American Dream?Defining the American dream is personal, and no one individual will have the same definition as another. But the feelings it brings about – success, freedom, and a sense of prosperity – are universal. That’s why, for many people, <a href="https://www.mykcm.com/2022/06/02/how-homeownership-impacts-you/" title="homeownership">homeownership</a> remains a key part of the <a href="https://www.mykcm.com/2022/04/27/the-dream-of-homeownership-is-worth-the-effort/" title="American dream">American dream</a>. Your home is your stake in the community, a strong financial investment, and an achievement to be proud of.
A recent <a href="https://www.bankrate.com/mortgages/homeownership-remains-centerpiece-of-american-dream/" target="_blank" title="survey">survey</a> from Bankrate asked respondents to rank achievements as indicators of financial success, and the responses prove that owning a home is still important to so many Americans today (see graph below):
<img src="https://assets.site-static.com/userfiles/1763/image/kcm-infographic-1657059190.jpg" width="1000" height="870" />
As the graph shows, homeownership ranks above other significant milestones, including retirement, having a successful career, and earning a college degree.
That could be because owning a home is a significant wealth-building tool and provides meaningful financial stability. The National Association of Realtors (NAR) <a href="https://www.nar.realtor/june-is-national-homeownership-month" target="_blank" title="explains">explains</a>:
“Homeownership builds financial security. With 65.5% of Americans owning homes, the net worth of a typical homeowner is nearly 40 times the net worth of a non-owner.”
There are other ways your home acts as more than just a roof over your head, too. The Mortgage Reports highlights a few of the many <a href="https://themortgagereports.com/91167/is-buying-a-house-a-waste-of-money-in-2022#benefits" target="_blank" title="benefits">benefits</a> homeowners enjoy, including:
Your <a href="https://www.mykcm.com/2022/06/21/the-average-homeowner-gained-64k-in-equity-over-the-past-year/" title="equity">equity</a> (and wealth) grows through <a href="https://www.mykcm.com/2022/06/16/home-price-deceleration-doesnt-mean-home-price-depreciation/" title="home price appreciation">home price appreciation</a>.
Your housing costs are fixed – and that can help combat rising costs from <a href="https://www.mykcm.com/2022/06/23/homeownership-is-a-great-hedge-against-the-impact-of-rising-inflation/" title="inflation">inflation</a>.
You’ll have greater privacy and the opportunity to <a href="https://www.mykcm.com/2022/05/18/how-homeownership-can-bring-you-joy/" title="customize">customize</a> your living space.
Plus, homeowners tend to be more active in their community. Like NAR <a href="https://www.nar.realtor/promoting-home-ownership" target="_blank" title="says">says</a>:
“Living in one place for a longer amount of time creates and [sic] obvious sense of community pride, which may lead to more investment in said community.”
What Does That Mean for You?
If your definition of the American Dream involves greater freedom and prosperity, then <a href="https://www.mykcm.com/2022/06/10/the-top-reasons-to-own-your-home-infographic/" title="homeownership">homeownership</a> could play a major role in helping you achieve that dream. When you set out to buy, know there are incredible benefits waiting for you at the end of your journey. You’ll have a place you can call your own, feel most comfortable, and <a href="https://www.mykcm.com/2022/03/28/a-key-to-building-wealth-is-homeownership/" title="grow your wealth">grow your wealth</a>.
First American puts it best, <a href="https://www.firstam.com/economics/homeownership/" target="_blank" title="saying">saying</a>:
“Homeownership remains central to the pursuit of the American Dream. It is a critical driver of economic mobility, delivering financial and social advantages. . . .”
Bottom Line
Buying a home is a powerful decision and a key part of the American Dream. And if homeownership in La Mesa, El Cajon, Alpine, Descanso, Santee, Lakeside, Lemon Grove, Spring Valley or anywhere in East San Diego County is part of your personal dreams this year, let’s connect and start the process today.2022-07-06T06:23:00-07:002022-07-05T15:32:14-07:00Steven Rotsarttag:eastsandiegocounty.com,2012-09-20:20532Real Estate Consistently Voted Best Investment<img src="https://assets.site-static.com/userfiles/1763/image/kcm-infographic-1656714427.jpg" />
Based on a recent Gallup <a href="https://news.gallup.com/poll/392330/record-low-say-good-time-buy-house.aspx" target="_blank" title="poll">poll</a>, real estate has been rated the best <a href="https://www.mykcm.com/2022/06/13/more-americans-choose-real-estate-as-the-best-investment-than-ever-before/" title="long-term investment">long-term investment</a> for nine years in a row.
Owning real estate is more than just a place to call home. It’s also an investment in your future. That’s because it’s typically a <a href="https://www.mykcm.com/2022/06/23/homeownership-is-a-great-hedge-against-the-impact-of-rising-inflation/" title="stable">stable</a> and secure asset that can <a href="https://www.mykcm.com/2022/06/21/the-average-homeowner-gained-64k-in-equity-over-the-past-year/" title="grow in value">grow in value</a> over time.
If you’re ready to buy a home in La Mesa, El Cajon, Alpine, Descanso, Santee, Lakeside, Lemon Grove, Spring Valley or anywhere in East San Diego County and invest in your future, let’s connect.2022-07-02T06:41:00-07:002022-07-01T15:44:21-07:00Steven Rotsarttag:eastsandiegocounty.com,2012-09-20:20485If You’re Selling Your East County House This Summer, Hiring a Pro Is CriticalIt can be tempting, especially with how hot the housing market has been over the past two years, to consider <a href="https://www.mykcm.com/2022/06/15/a-majority-of-consumers-say-its-a-good-time-to-sell-your-house/" title="selling your home">selling your home</a> on your own. But today’s market is at a <a href="https://www.mykcm.com/2022/06/14/is-the-housing-market-correcting/" title="turning point">turning point</a>, making it more essential than ever to work with a real estate professional.
Not only will a trusted real estate advisor keep you updated and help you make the best decisions based on current <a href="https://www.mykcm.com/2022/05/31/what-does-the-rest-of-the-year-hold-for-the-housing-market/" title="market trends">market trends</a>, but they’re also experts in managing the many aspects of selling your house.
Here are five key reasons why working with a real estate professional makes sense today.
1. A Professional Follows the Latest Market Trends
With higher <a href="https://www.mykcm.com/2022/05/17/why-rising-mortgage-rates-push-buyers-off-the-fence/" title="mortgage rates">mortgage rates</a>, rising <a href="https://www.mykcm.com/2022/06/16/home-price-deceleration-doesnt-mean-home-price-depreciation/" title="home prices">home prices</a>, and a growing number of <a href="https://www.mykcm.com/2022/06/07/why-the-growing-number-of-homes-for-sale-is-good-for-your-move-up/" title="homes for sale">homes for sale</a>, today’s housing market is showing signs of a shift back toward more pre-pandemic levels. When conditions change, following the trends and staying on top of new information is crucial when you sell.
That makes working with an expert real estate advisor critical today. They know your local area and follow national trends too. More importantly, they’ll know what this data means for you, and as the market shifts, they’ll be able to help you navigate it and make your <a href="https://www.mykcm.com/2022/05/23/work-with-a-real-estate-professional-if-you-want-the-best-advice/" title="best decision">best decision</a>.
2. A Professional Helps Maximize Your Pool of Buyers
Your agent’s role in bringing in buyers is important. Real estate professionals have a large variety of tools at their disposal, such as social media followers, agency resources, and the Multiple Listing Service (MLS) to ensure your house is viewed by the most buyers. Investopedia <a href="https://www.investopedia.com/articles/personal-finance/071514/8-reasons-not-sell-your-home-without-agent.asp#toc-4-agents-access-large-networks" target="_blank" title="explains">explains</a> why it’s risky to sell on your own without the network an agent provides:
“You don’t have relationships with clients, other agents, or a real estate agency to bring the largest pool of potential buyers to your home. A smaller pool of potential buyers means less demand for your property, which can translate into waiting longer to sell your home and possibly not getting as much money as your house is worth.”
3. A Professional Understands the Fine Print
Today, more disclosures and regulations are mandatory when selling a house. That means the number of legal documents you’ll need to juggle is growing. The National Association of Realtors (NAR) explains it best, <a href="https://magazine.realtor/sales-and-marketing/handouts-for-customers/for-sellers/8-reasons-to-work-with-a-realtor" target="_blank" title="saying">saying</a>:
“Selling a home typically requires a variety of forms, reports, disclosures, and other legal and financial documents. . . . Also, there’s a lot of jargon involved in a real estate transaction; you want to work with a professional who can speak the language.”
A real estate professional knows exactly what needs to happen, what all the paperwork means, and how to work through it efficiently. They’ll help you review the documents and avoid any costly missteps that could occur if you try to handle them on your own.
4. A Professional Is a Trained Negotiator
If you sell without a professional, you’ll also be solely responsible for all the negotiations. That means you’ll have to coordinate with:
The buyer, who wants the best deal possible
The buyer’s agent, who will use their expertise to advocate for the buyer
The inspection company, which works for the buyer and will almost always find concerns with the house
The appraiser, who assesses the property’s value to protect the lender
Instead of going toe-to-toe with all these parties alone, lean on an expert. They’ll know what levers to pull, how to address everyone’s concerns, and when you may want to get a second opinion.
5. A Professional Knows How to Set the Right Price for Your House
If you sell your house on your own, you may over or undershoot your asking price. That could mean you’ll leave money on the table because you priced it too low or your house will sit on the market because you priced it too high. <a href="https://www.mykcm.com/2022/06/06/why-you-need-an-expert-to-determine-the-right-price-for-your-house/" title="Pricing a house">Pricing a house</a> requires expertise. NAR <a href="https://magazine.realtor/sales-and-marketing/handouts-for-customers/for-sellers/8-reasons-to-work-with-a-realtor" target="_blank" title="explains">explains</a> it like this:
“A great real estate agent will look at your home with an unbiased eye, providing you with the information you need to enhance marketability and maximize price.”
Real estate professionals know the ins and outs of how to price your house accurately and competitively. To do so, they compare your house to recently sold homes in your area and factor in the current condition of your home. These steps are key to making sure it’s set to move quickly while still getting you the highest possible final <a href="https://www.mykcm.com/2022/06/24/why-an-agent-is-essential-when-pricing-your-house-infographic" title="sale price">sale price</a>.
Bottom Line
Whether it’s following local and national trends and guiding you through a shifting market or pricing your house right, a real estate agent has essential insights you’ll want to rely on throughout the transaction. Don’t go at it alone. If you plan to sell your house in La Mesa, El Cajon, Alpine, Descanso, Santee, Lakeside, Lemon Grove, Spring Valley or anywhere in East San Diego County, let’s connect so you have an expert on your side.2022-07-01T06:28:00-07:002022-06-30T15:29:46-07:00Steven Rotsarttag:eastsandiegocounty.com,2012-09-20:20463East County Homeownership Could Be in Reach with Down Payment Assistance ProgramsA recent <a href="https://www.bankrate.com/mortgages/homeownership-remains-centerpiece-of-american-dream/" target="_blank" title="survey">survey</a> from Bankrate asks prospective buyers to identify the biggest obstacles in their homebuying journey. It found that 36% of those polled said saving for a down payment is one of their primary hurdles to buying a home.
If you feel the same way, the good news is there are many down payment assistance programs available that can help you achieve your <a href="https://www.mykcm.com/2022/06/10/the-top-reasons-to-own-your-home-infographic/" title="homeownership goals">homeownership goals</a>. The key is understanding where to look and learning what options are available. Here’s some information that can help you.
You Can Qualify Even if You’ve Purchased a Home Before
There are several misconceptions about down payment assistance programs. For starters, many people believe there’s only assistance available for <a href="https://www.mykcm.com/2022/06/08/what-are-the-best-options-for-todays-first-time-homebuyers/" title="first-time homebuyers">first-time homebuyers</a>. While first-time buyers have many options to explore, repeat buyers have some, too. According to the latest <a href="https://downpaymentresource.com/professional-resource/more-homebuyer-assistance-programs-introduced-as-affordability-declines-in-most-u-s-counties/" target="_blank" title="Homeownership Program Index">Homeownership Program Index</a> from downpaymentresource.com:
“It is a common misconception that homebuyer assistance is only available to first-time homebuyers, however, 38% of homebuyer assistance programs in Q1 2022 did not have a first-time homebuyer requirement.”
That means repeat buyers could qualify for over one-third of the assistance programs available. And if you’re a repeat buyer, you may still be able to take advantage of some first-time homebuyer programs, depending on your personal situation. That’s because downpaymentresource.com also <a href="https://downpaymentresource.com/homebuyer-resource/4-common-down-payment-assistance-program-myths-debunked/" target="_blank" title="notes">notes</a> many of the first-time homebuyer programs use the U.S. Department of Housing and Urban Development’s definition of a first-time homebuyer. Under their <a href="https://archives.hud.gov/offices/hsg/sfh/ref/sfhp3-02.cfm" target="_blank" title="definition">definition</a>, you could qualify as a first-time buyer if you’re:
Someone who hasn’t owned a primary residence in 3 years.
A single parent who’s only ever owned a home with a former spouse.
That means no matter where you are in your <a href="https://www.mykcm.com/2022/06/02/how-homeownership-impacts-you/" title="homeownership">homeownership</a> journey, there could be an option available for you.
You May Be Eligible for Programs Based on Your Location or Profession
In addition to broader options available for repeat and first-time homebuyers, there are other types of down payment assistance programs that you could qualify for based on your location. <a href="https://www.nar.realtor/first-time-homebuyers/first-time-homebuyer-loans-grants" target="_blank" title="According">According</a> to the National Association of Realtors (NAR):
“Many local governments and non-profit organizations offer down-payment assistance grants and loans, targeted to area borrowers and often with specific borrower requirements.”
Plus, there are programs and special benefits for individuals working in certain professions or with unique statuses, including teachers, doctors and nurses, and veterans.
Ultimately, that means there are many federal, state, and local programs available for you to explore. The best way to do that is to connect with a local real estate professional and your lender to learn more about what’s available in your area.
Bottom Line
Down payment assistance programs have helped many homebuyers achieve their dreams, and if you qualify, they could help you too. Let’s connect today so you can begin exploring your options here in La Mesa, El Cajon, Alpine, Descanso, Santee, Lakeside, Lemon Grove, Spring Valley or anywhere in East San Diego County.2022-06-30T06:24:00-07:002022-06-29T15:26:03-07:00Steven Rotsarttag:eastsandiegocounty.com,2012-09-20:20429A Key Opportunity for Homebuyers in East CountyThere’s no denying the housing market has delivered a fair share of challenges to homebuyers over the past two years. Two of the biggest hurdles homebuyers faced during the pandemic were the limited number of homes for sale and the intensity and frequency of bidding wars. But those two things have reached a turning point.
As you may have already heard, the <a href="https://www.mykcm.com/2022/06/17/more-listings-are-coming-onto-the-market-infographic/" title="number of homes">number of homes</a> for sale has increased this year, and even more so this spring. As Danielle Hale, Chief Economist for realtor.com, <a href="https://www.realtor.com/research/weekly-housing-trends-view-data-week-june-18-2022/" target="_blank" title="explains">explains</a>:
“New listings–a measure of sellers putting homes up for sale–were up 6% above one year ago. Home sellers in many markets across the country continue to benefit from rising home prices and fast-selling homes. That’s prompted a growing number of homeowners to sell homes this year compared to last, giving home shoppers much needed options.”
This is encouraging news. <a href="https://www.mykcm.com/2022/05/11/are-there-more-homes-coming-to-the-market/" title="More homes">More homes</a> coming onto the market give you a greater chance of finding one that checks all your boxes.
Buyer Competition Moderating Helps Inventory Grow Even More
Mark Fleming, Chief Economist at First American, <a href="https://blog.firstam.com/economics/the-reconomy-podcast-heres-how-we-know-that-housing-supply-is-still-low" target="_blank" title="says">says</a> inventory growth is happening not just because there’s an increase in the number of listings coming onto the market, but also because buyer demand has moderated some in light of higher mortgage rates and other economic factors:
“There has been a pickup in the inventory that we’ve seen recently, but it’s not from a big increase in new listings . . . but rather a slowdown in the pace of sales. And remember that months’ supply measures the inventory of sale relative to the pace of sales. Same inventory, fewer sales, means more months’ supply.”
Basically, the market is shifting away from the frenzy of buyer competition seen during the pandemic, and that’s helping available inventory grow. In their <a href="https://news.move.com/2022-06-13-Realtor-com-R-2022-Forecast-Update-Real-Estate-Gets-a-Refresh-from-the-Frenzy" target="_blank" title="latest forecast">latest forecast</a>, realtor.com also mentions the moderation of demand as a key factor and projects the inventory growth should continue:
“As rising inflation and mortgage rates bring U.S. housing demand back from the 2021 frenzy, . . . inventory will grow double-digits over 2021 and offer buyers a better-than-expected chance to find a home.”
How This Impacts You
The combination of more homes coming onto the market and a slower pace of home sales means you’ll have more options to choose from as you search for your next home. That’s great news if you’ve been searching for a while with little to no luck. Just remember, there isn’t a sudden surplus of inventory, just more homes to choose from than even a few months ago. So, you’ll still want to be decisive and move fast when you find the right home for you.
And when you do, you may be faced with less competition from other buyers too. If you’ve been waiting to jump into the market because the intensity of the bidding wars was intimidating or if you’ve been outbid on several homes, this moderation could help make the homebuying process a bit smoother. It’s not that it’ll be easy or that bidding wars are a thing of the past – that’s not the case. But it won’t feel nearly as impossible.
Bottom Line
As the housing market begins its shift back toward pre-pandemic levels, you could have a unique opportunity in front of you. With moderating levels of buyer competition and more homes actively for sale, your home search in La Mesa, El Cajon, Alpine, Descanso, Santee, Lakeside, Lemon Grove, Spring Valley or anywhere in East San Diego County may have gotten a bit less challenging. Let’s connect to begin the process today.2022-06-29T06:36:00-07:002022-06-28T15:39:53-07:00Steven Rotsarttag:eastsandiegocounty.com,2012-09-20:20405Two Reasons Why Today’s East County Housing Market Isn’t a BubbleYou may be reading headlines and hearing talk about a potential housing bubble or a crash, but it’s important to understand that the data and expert opinions tell a different story. A <a href="https://pulsenomics.com/surveys/#home-price-expectations" target="_blank" title="recent survey">recent survey</a> from Pulsenomics asked over one hundred housing market experts and real estate economists if they believe the housing market is in a <a href="https://www.mykcm.com/2022/04/21/why-this-housing-market-is-not-a-bubble-ready-to-pop/" title="bubble">bubble</a>. The results indicate most experts don’t think that’s the case (see graph below):
<img src="https://assets.site-static.com/userfiles/1763/image/kcm-infographic-1656367665.jpg" width="960" height="840" />
As the graph shows, a strong majority (60%) said the real estate market is not currently in a bubble. In the same survey, experts give the following reasons why this isn’t like 2008:
The recent growth in <a href="https://www.mykcm.com/2022/06/16/home-price-deceleration-doesnt-mean-home-price-depreciation/" title="home prices">home prices</a> is because of demographics and low inventory
Credit risks are low because underwriting and <a href="https://www.mykcm.com/2022/06/01/why-home-loans-today-arent-what-they-were-in-the-past/" title="lending standards">lending standards</a> are sound
If you’re concerned a crash may be coming, here’s a deep dive into those two key factors that should help ease your concerns.
1. Low Housing Inventory Is Causing Home Prices to Rise
The supply of homes available for sale needed to sustain a normal real estate market is approximately <a href="https://www.mykcm.com/2022/04/28/what-you-need-to-know-about-selling-in-a-sellers-market/" title="six months">six months</a>. Anything more than that is an overabundance and will causes prices to depreciate. Anything less than that is a shortage and will lead to continued price appreciation.
As the graph below shows, there were too many homes for sale from 2007 to 2010 (many of which were short sales and <a href="https://www.mykcm.com/2022/05/12/what-you-actually-need-to-know-about-the-number-of-foreclosures-in-todays-housing-market/" title="foreclosures">foreclosures</a>), and that caused prices to tumble. Today, there’s still a <a href="https://www.nar.realtor/research-and-statistics/housing-statistics/existing-home-sales" target="_blank" title="shortage of inventory">shortage of inventory</a>, which is causing ongoing home price appreciation (see graph below):
<img src="https://assets.site-static.com/userfiles/1763/image/kcm-infographic-1656367813.jpg" width="960" height="840" />
Inventory is nothing like the last time. Prices are rising because there’s a healthy demand for homeownership at the same time there’s a limited supply of homes for sale. Odeta Kushi, Deputy Chief Economist at First American, <a href="https://www.realtor.com/news/trends/housing-market-showing-signs-of-correction-what-buyers-sellers-need-to-know/" target="_blank" title="explains">explains</a>:
“The fundamentals driving house price growth in the U.S. remain intact. . . . The demand for homes continues to exceed the supply of homes for sale, which is keeping house price growth high.”
2. Mortgage Lending Standards Today Are Nothing Like the Last Time
During the housing bubble, it was much easier to get a mortgage than it is today. Here’s a graph showing the <a href="https://www.newyorkfed.org/medialibrary/interactives/householdcredit/data/pdf/hhdc_2022q1.pdf" target="_blank" title="mortgage volume">mortgage volume</a> issued to purchasers with a credit score less than 620 during the housing boom, and the subsequent volume in the years after:
<img src="https://assets.site-static.com/userfiles/1763/image/kcm-infographic-1656367862.jpg" />
This graph helps show one element of why mortgage standards are nothing like they were the last time. Purchasers who acquired a mortgage over the last decade are much more qualified than they were in the years leading up to the crash. Realtor.com <a href="https://www.realtor.com/news/trends/housing-market-showing-signs-of-correction-what-buyers-sellers-need-to-know/" target="_blank" title="notes">notes</a>:
“. . . Lenders are giving mortgages only to the most qualified borrowers. These buyers are less likely to wind up in foreclosure.”
Bottom Line
A majority of experts agree we’re not in a housing bubble. That’s because home price growth is backed by strong housing market fundamentals and lending standards are much tighter today. If you have questions, let’s connect to discuss why today’s East San Diego County housing market is nothing like 2008.2022-06-28T06:21:00-07:002022-06-27T15:25:05-07:00Steven Rotsarttag:eastsandiegocounty.com,2012-09-20:20376Why an Agent Is Essential When Pricing Your East County House<img src="https://assets.site-static.com/userfiles/1763/image/kcm-infographic-1656110688.jpg" />
When it comes to <a href="https://www.nar.realtor/determining-asking-price%E2%80%8B" target="_blank" title="pricing your house">pricing your house</a>, there’s a lot to consider. The only way to ensure you price it right is by partnering with a trusted real estate professional.
To find the best price, I will balance current market demand, the values of homes in your neighborhood, where prices are headed, and your home’s condition.
Don’t pick just any price for your house. If you’re ready to sell in La Mesa, El Cajon, Alpine, Descanso, Santee, Lakeside, Lemon Grove, Spring Valley or anywhere in East San Diego County, let’s connect to find the perfect price for your house.2022-06-25T06:59:00-07:002022-06-24T16:01:03-07:00Steven Rotsarttag:eastsandiegocounty.com,2012-09-20:20348Homeownership Is a Great Hedge Against the Impact of Rising InflationIf you’re following along with the news today, you’ve heard about rising inflation. Today, <a href="https://www.mykcm.com/2022/05/20/dont-let-rising-inflation-delay-your-homeownership-plans-infographic/" title="inflation">inflation</a> is at a <a href="https://www.cnbc.com/2022/06/10/consumer-price-index-may-2022.html" target="_blank" title="40-year high">40-year high</a>. According to the <a href="https://eyeonhousing.org/2022/06/inflation-hits-a-fresh-40-year-high-in-may/" target="_blank" title="National Association of Home Builders">National Association of Home Builders</a> (NAHB):
“Consumer prices accelerated again in May as shelter, energy and food prices continued to surge at the fastest pace in decades. This marked the third straight month for inflation above an 8% rate and was the largest year-over-year gain since December 1981.”
With inflation rising, you’re likely feeling it impact your day-to-day life as prices go up for gas, groceries, and more. These climbing consumer costs can put a pinch on your wallet and make you re-evaluate any big purchases you have planned to ensure they’re still worthwhile.
If you’ve been thinking about purchasing a home this year, you’re probably wondering if you should continue down that path or if it makes more sense to wait. While the answer depends on your situation, here’s how homeownership can help you combat the rising costs that come with inflation.
Homeownership Helps You Stabilize One of Your Biggest Monthly Expenses
Investopedia <a href="https://www.investopedia.com/terms/i/inflation.asp" target="_blank" title="explains">explains</a> that during a period of high inflation, prices rise across the board. That’s true for things like food, entertainment, and other goods and services, even housing. Both rental prices and <a href="https://www.mykcm.com/2022/06/16/home-price-deceleration-doesnt-mean-home-price-depreciation/" title="home prices">home prices</a> are on the rise. So, as a buyer, how can you protect yourself from increasing costs? The answer lies in <a href="https://www.mykcm.com/2022/06/10/the-top-reasons-to-own-your-home-infographic/" title="homeownership">homeownership</a>.
Buying a home allows you to stabilize what’s typically your biggest monthly expense: your housing cost. When you have a fixed-rate mortgage on your home, you lock in your monthly payment for the duration of your loan, often 15 to 30 years. James Royal, Senior Wealth Management Reporter at Bankrate, <a href="https://www.bankrate.com/investing/inflation-hedges-to-protect-against-rising-prices/" target="_blank" title="says">says</a>:
“A fixed-rate mortgage allows you to maintain the biggest portion of housing expenses at the same payment. Sure, property taxes will rise and other expenses may creep up, but your monthly housing payment remains the same. That’s certainly not the case if you’re renting.”
So even if other prices increase, your housing payment will be a reliable amount that can help keep your budget in check. If you rent, you don’t have that same benefit, and you won’t be protected from rising housing costs.
Investing in an Asset That Historically Outperforms Inflation
While it’s true rising home prices and higher mortgage rates mean that buying a house today costs more than it did even a few months ago, you still have an opportunity to set yourself up for a long-term win. That’s because, in inflationary times, you want to be invested in an asset that outperforms inflation and typically holds or grows in value.
The graph below shows how the average home price appreciation outperformed the average inflation rate in most decades going all the way back to the seventies – making homeownership a historically strong hedge against inflation (see graph below):
<img src="https://assets.site-static.com/userfiles/1763/image/kcm-infographic-1656022146.jpg" width="1000" height="870" />
So, what does that mean for you? Today, experts <a href="https://www.mykcm.com/2022/05/31/what-does-the-rest-of-the-year-hold-for-the-housing-market/" title="forecast">forecast</a> home prices will only go up from here thanks to the ongoing imbalance of supply and demand. Once you buy a house, any home price appreciation that does occur will grow your <a href="https://www.mykcm.com/2022/06/21/the-average-homeowner-gained-64k-in-equity-over-the-past-year/" title="equity">equity</a> and your <a href="https://www.mykcm.com/2022/03/28/a-key-to-building-wealth-is-homeownership/" title="net worth">net worth</a>. And since homes are typically assets that grow in value, you have peace of mind that history shows your investment is a strong one.
That means, if you’re ready and able, it makes sense to buy today before prices rise further.
Bottom Line
If you’ve been thinking about buying a home this year in La Mesa, El Cajon, Alpine, Descanso, Santee, Lakeside, Lemon Grove, Spring Valley or anywhere in East San Diego County, it makes sense to act soon, even with inflation rising. That way you can stabilize your monthly housing cost and invest in an asset that historically outperforms inflation. If you’re ready to get started, let’s connect so you have expert advice on your specific situation when you’re ready to buy a home.2022-06-24T06:07:00-07:002022-06-23T15:35:37-07:00Steven Rotsart