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How high can prices go?

How high can prices go? It’s only up these days. Many thought real estate would take a pause.  But that didn’t happen. Instead, the lid blew off and the sky’s now the limit.

The price range for modest homes in the greater Foothills: is
$ 1 million dollars. For a first time home?

No, I am not kidding.  Money is cheap, people are aggressively looking and there’s an air of desperation on the part of buyers. I HAVE to find another place to live. Sellers are starting to think, if I can get THAT much for my home, maybe it is time to sell. With all the changes in how and where people can work, all of a sudden for some there’s no compelling reason to stay in California anymore.

America has opened its doors and the flight is to a less urban lifestyle. But it’s not just in California. So expect to pay more wherever you go.

Testimonials

Nancy knows the real estate business very thoroughly. She has proven this by helping our family three times over the past eleven years. Each time she displayed knowledge, experience, and care that generated confidence and comfort in the process, ensuring everything went very smoothly. The first time we worked with her involved the sale of a family home of more than fifty years. The second time involved the purchase of a condominium. The third time was the sale of another home of almost thirty years. Each transaction was unique due to different neighborhoods, market conditions, and other circumstances. Each involved the many complications and details that are expected in a real estate transaction.

In our most recent sale, during COVID, Nancy guided us wisely through each step. Her experience with real estate marketing and managing the chain of events helped the process move smoothly. It helps that she knows the real estate market so well, knows the features buyers are looking for, and the issues that might concern them. Her advice on timing and pricing was right on. She explained how the methods of marketing homes have changed in recent years and she let us know what was expected and what had to be done. Once the house was listed, she kept an eye on each step, made us aware of the progress, and advised us regarding responsibilities and options so that everything stayed on schedule. As an experienced professional, she anticipated and guided us to a smooth closing of the sale. To put it simply: Nancy is a professional, is knowledgeable, and can be trusted.

Historic Wexler Condo

Sizzlingly hot describes summer in the Desert and means a slower real estate market. But this year is different.  People are flooding to what are traditionally weekend or 2nd home locations and that includes the Desert areas near LA. Real Estate is even hotter than in LA.

Take a look at my newest listing: a 2 bedroom 2 bath condo in a complex that is architecturally significant with a garage. Single level and in a complex with a swimming pool and amenities. Super affordable at only $ 299K!!

Visit Property Website: http://www.1724sandalwood.com/

A Tale of Two Markets: Dream Homes and Looming Evictions

A divide is growing between the haves and have-nots in real estate. While the housing market sees a frenzied number of home shoppers eager to purchase and move into a larger home, the other side of the market is facing job losses and fears of losing their current home.

The unemployment rate was 8.4% in August. Many Americans are still struggling to buy a home or afford rent. Another 10 million jobs are needed to get the economy back to pre-pandemic conditions, says Lawrence Yun, chief economist of the National Association of REALTORS®.

A recent Census survey shows that 42% of renter households earning less than $35,000 per year have slight or no confidence in their ability to pay September rent.

“The level of economic suffering for families is heartbreaking if we don’t figure out how to help unemployed Americans pay rent,” Sam Gilman, co-founder of the COVID-19 Eviction Defense Project, told USA Today. “Eviction leads to horrible consequences for families. It can lead to homelessness, kids not going to school, and is linked to deaths of despair.”

Up to 40 million Americans could possibly be at risk of eviction by the end of the year, Gilman estimates. Eviction and foreclosure moratoriums that stretch to the end of the year may be postponing the inevitable, housing analysts say. “We are only delaying this huge build-up in rental debt and the precursor to eviction,” Gilman told USA Today. “Once rent comes due after the holidays, the circumstances for millions of Americans likely will not have changed.”

Under the eviction moratorium that went into effect Friday, a tenant has to testify or certify under penalty of perjury that they’re doing everything they can to pay. Obstacles may include job or wage loss, or medical expenses (not necessarily COVID-19 related) that preclude them from paying their rent.

But as millions of renters fear losing their homes, the housing market also shows the opposite end of the spectrum as buyers with secure paying jobs flood the market. The housing market has emerged as one of the drivers of the economic recovery. A vibrant housing market has added 27,700 construction workers and trade specialists. Further, the NAR’s membership is at a record high, Yun says.

Buyers with high-paying jobs are rushing to take advantage of record-low mortgage rates and possibly even purchase larger homes during the pandemic.

“There’s a fortunate group of Americans with a steady paycheck that didn’t go on a big vacation, but did end up buying new furniture, appliances, or are renovating,” Ted Rossman, industry analyst at Bankrate, told USA Today. About 59% of homeowners have completed at least $500 of home upgrades during the pandemic or are planning to before the end of the year, according to a survey from Bankrate.

But some are choosing not to spruce up but instead buy a new home. Home prices are escalating during the pandemic as buyer demand surges. The median national price for an existing home in July was $304,100, the first time ever surpassing $300,000, according to NAR.

“There’s still a lot of interest in sellers getting top dollar for their homes and buyers getting more space,” Rossman told USA Today. “The work-from-home trend has legs even beyond the pandemic because many companies have found that workers can be productive from home and it saves them money on office space. That has big ripple effects for the housing market if work-from-home becomes more permanent.”

Five-Unit Apartment Complex

1203 Stanley Avenue, Glendale, CA, 91206

For Sale $1,750,000

Excellent opportunity to acquire a five-unit apartment building located in the City of Glendale. This property is in an excellent location near shopping, restaurants, Glendale Adventist Hospital and all that the exciting things Glendale has to offer. The units are fully occupied with good, long-term tenants who love where they live. Offers spacious two bedroom, two bath units. One unit has a den and functions as a three bedroom unit. The property features on-site parking, on-site laundry with new commercial machines (lease to be assumed by buyer) and storage. Six electric and six gas meters. The available financials are only for the last seven months and may not be complete. The sale is subject to Probate. The Administrator of the Estate has full authority. However the seller’s final acceptance of the highest and best offer is subject to the Estate giving a Notice of Proposed Action to all interested parties. The time period for the notice is 15 days from the date of acceptance of the offer. Although not anticipated, if an objection is received within the 15 day period, the sale would then be subject to court confirmation. Make any offers subject to interior inspection. Do not disturb the tenants.

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  • 10 Bedrooms
  • 10 Bathrooms
  • 6779 Sqft
  • 7758 Lot
California housing market claws back past two months of losses in June as median home price sets another record high, C.A.R. reports

Right now, there is a tug of war playing out between normal real estate cycles and what has become a backlash against the current Covid-19 situation, aka the “New Normal”. Change is happening daily and just like being on a rollercoaster ride, it is disorienting.

“Washington and the Fed continue to push money into the system. The historically low levels to borrow money is driving even more buyers into a market with low inventory. There is an unprecedented willingness on the part of buyers to remove all contingencies and to offer prices that cannot be backed up by comparable sales.

What about the massive debt that the US is accumulating? Will it affect buyers and sellers: it depends. Many fear inflation or even hyper-inflation and the standard answer to that is to buy hard assets, like real estate. Others fear the massive debt: who’s going to pay for it and how? Where is there any safety? Has real estate become “the new Treasurys”?

It appears that a full recovery isn’t needed to boost real estate. Just hope. Many professionals believe that the work world has been changed forever and that the New Normal of work from home will remain. This dictates that changes need to be made in their living situation NOW! So closing of the credibility gap between temporary vs permanent change has catapulted the real estate market. It has been fast and violent.

All of this news is on track with the C.A.R. statements and predictions:

– Existing, single-family home sales totaled 339,910 in June on a seasonally adjusted annualized rate, up 42.4 percent from May and down 12.8 percent from June 2019.

– June’s statewide median home price was $626,170, up 6.5 percent from May and up 2.5 percent from June 2019.

– Year-to-date statewide home sales were down 12.9 percent in June.

LOS ANGELES (July 16) – After falling to the lowest level since the Great Recession, California’s housing market rebounded in June with the largest month-to-month sales increase in nearly 40 years, while the median home price set another record high, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) said today.

Closed escrow sales of existing, single-family detached homes in California totaled a seasonally adjusted annualized rate of 339,910 units in June, according to information collected by C.A.R. from more than 90 local REALTOR® associations and MLSs statewide. The statewide annualized sales figure represents what would be the total number of homes sold during 2020 if sales maintained the June pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.

Reversing a two-month consecutive drop below 300,000 units caused by the coronavirus pandemic, June’s sales total climbed 42.4 percent from 238,740 in May and was down 12.8 percent from a year ago, when 389,730 homes were sold on an annualized basis. The month-to-month increase was the largest since C.A.R. began reporting monthly sales in January 1979.

“Home sales bounced back solidly in June after hitting a record bottom in May, as lockdown restrictions loosened and pent up demand driven by record-low interest rates roared back,” said 2020 C.A.R. President Jeanne Radsick, a second-generation REALTOR® from Bakersfield, Calif. “While the momentum is expected to be sustained as we kick off the third quarter, the resurgence in coronavirus cases remains a concern and may hinder the market recovery in the second half of the year.”

A strong surge in home sales in June provided support to home prices, as the statewide median price set a new record high after dipping briefly below $600,000 in May. California’s median home price reached $626,170 in June, improving 6.5 percent from May and 2.5 percent from June 2019. The monthly price increase was higher than the historical average price change from May to June and, in fact, was the highest ever recorded for a May-to-June change.

A change in the mix of sales was one primary factor that pushed the median price higher in June, as sales of higher-priced properties bounced back stronger than lower-priced homes.

Homes priced below $500,000, which made up 48 percent of total sales in the California market in May 2020, only comprised 44 percent of all sales in June 2020. Sales of million-dollar properties, on the other hand, increased in market share to 18.1 percent in the most recent month compared with 15.6 percent in May 2020.

“A new record high in the statewide median price suggests that there is stronger housing demand from more qualified, affluent buyers in this extremely favorable lending environment,” said C.A.R. Senior Vice President and Chief Economist Leslie Appleton-Young. “It also highlights both the affordability and supply issues created by the uneven impact of the coronavirus pandemic as the more affordable segments of the state’s housing market are recovering at a slower pace.”

Reflecting the uncertainty in market conditions, a monthly Google poll conducted by C.A.R. in early July found that 44 percent of consumers said it is a good time to sell, up from 40 percent a month ago, but down from 49 percent a year ago. Meanwhile, low interest rates continue to fuel the optimism for homebuying; 31 percent of the consumers who responded to the poll believed that now is a good time to buy a home, sharply higher than last year, when 23 percent said it was a good time to buy a home.

Other key points from C.A.R.’s June 2020 resale housing report include:

  • At the regional level, all major regions declined in sales from last year with Southern California dropping the most at -12.2 percent, while the Central Valley had the smallest dip of only -1.5 percent.
  • Slightly more than half of all counties – 26 of 51 – tracked by C.A.R. experienced a year-over-year loss in closed sales, with Mono declining the most from last year at -40.0 percent, followed by Napa (-28.2%), and Orange (-20.4%). Counties with a sales decline from last year averaged a loss of 12.5 percent from the year before. Of all the counties with a gain in sales, Glenn had the biggest increase from last year, growing 23.5 percent on a year-over-year basis from last June.
  • Median prices increased in all regions in June, with the more affordable markets increasing year-over-year in the high-single digits. The Bay Area and the Central Coast regions, which experienced a dip in price in May, bounced back in June with a moderate increase of 4.2 percent and 5.4 percent, respectively.
  • Meanwhile, median prices in the Central Valley and the Southern California continued to rise from last year by 7.4 percent and 3.3 percent, respectively, as pent-up demand returned to the market.
  • Forty-three of the 51 counties tracked by C.A.R. reported a year-over-year gain in price in May, with Lake growing the most at 19.4 percent. Of the eight counties that experienced a price drop from last June, Del Norte had the biggest decline of 31.5 percent.
  • Housing supply continued to trend downward on a year-over-year basis, with active listings falling more than 25 percent for the seventh consecutive month. A sizable year-over-year drop in active listings of 43 percent, coupled with a robust gain in closed sales, led to a decline in C.A.R.’s Unsold Inventory Index (UII) in June. The Index dropped to 2.7 months in June from 4.3 months in May and was down from 3.4 months in June 2019. The index indicates the number of months it would take to sell the supply of homes on the market at the current rate of sales.
  • Housing supply continued to decline significantly across the state, with all areas falling more than 30 percent in active listings from last year. Southern California had the biggest drop in supply, with for-sale properties plunging 47.3 percent year-over-year.  While all counties in the region dropped at least 40 percent from a year ago, both Riverside and San Bernardino plummeted more than 50 percent in active listings.
  • Despite a more modest decline in supply in the region when compared to other areas, eight of the San Francisco Bay Area’s nine counties still experienced an annual drop in active listings. Seven of them, in fact, declined more than 23 percent from the prior year.San Francisco was the only county in the region with an increase in active listings.
  • The median number of days it took to sell a California single-family home was unchanged from a year ago at 19 days in June.
  • C.A.R.’s statewide sales-price-to-list-price ratio* was 99.5 percent in June 2020, up slightly from 99.2 in June 2019.
  • The statewide average price per square foot** for an existing single-family home was $293 in June 2020 and $291 in June 2019.
  • The 30-year, fixed-mortgage interest rate averaged 3.16 percent in June, down from 3.80 percent in June 2019, according to Freddie Mac. The five-year, adjustable mortgage interest rate was an average of 3.09 percent, compared to 3.48 percent in June 2019.

Note:  The County MLS median price and sales data in the tables are generated from a survey of more than 90 associations of REALTORS® throughout the state and represent statistics of existing single-family detached homes only. County sales data are not adjusted to account for seasonal factors that can influence home sales. Movements in sales prices should not be interpreted as changes in the cost of a standard home. The median price is where half sold for more and half sold for less; medians are more typical than average prices, which are skewed by a relatively small share of transactions at either the lower end or the upper end. Median prices can be influenced by changes in cost, as well as changes in the characteristics and the size of homes sold. The change in median prices should not be construed as actual price changes in specific homes.

*Sales-to-list-price ratio is an indicator that reflects the negotiation power of home buyers and home sellers under current market conditions. The ratio is calculated by dividing the final sales price of a property by its last list price and is expressed as a percentage. A sales-to-list ratio with 100 percent or above suggests that the property sold for more than the list price, and a ratio below 100 percent indicates that the price sold below the asking price.

**Price per square foot is a measure commonly used by real estate agents and brokers to determine how much a square foot of space a buyer will pay for a property. It is calculated as the sale price of the home divided by the number of finished square feet. C.A.R. currently tracks price-per-square foot statistics for 50 counties.

Leading the way…® in California real estate for more than 110 years, the CALIFORNIA ASSOCIATION OF REALTORS® (www.car.org) is one of the largest state trade organizations in the United States with more than 200,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles.

Credit: CAR.org

What’s Motivating Moves During the Pandemic

Americans have been on the move for more reasons than just to snag record low mortgage rates, shows a new survey of 2,000 real estate agents from HomeLight, a company that provides software and services to the real estate industry, a company that provides software and services to the real estate industry. The survey was conducted in a series of seven separate polls from April to the end of June.

The top moving motivators cited include the need for space (44%), a desire to buy versus rent (41%), and to relocate to the suburbs (37%).

The home office is also taking front and center as a prime home feature attracting buyers, agents reported in HomeLight’s Q2 2020 Top Agent Insights report. As remote work grows more common, home buyers need a formal home office. Designated home offices were the top feature in demand among home shoppers, followed by a home in a less dense location, single-family living, a private and spacious outdoor area, and a well-appointed kitchen, the survey shows.

“Prior to the pandemic, many viewed their homes as landing pads, a place to change clothes and rest before they were off on the next trip, the next social outing, the next go-go-go adventure,” the report notes. “Quarantine provided a chance, for better or worse, to experience our homes full time and with new purpose.”

For homeowners wanting to add a home office onto their existing space, they’ll likely spend, on average, $12,000. However, the home office can recoup 87% of that spend at resale, according to HomeLight. Another remodeling project that can recoup the most at resale: Walk-in pantries (a 76% ROI of its average $3,400 cost).

Source: “Top Agent Insights Q2 2020 Report,” HomeLight (2020) & CAR.org

Signs of a Market Uptick?

Purchase loan applications are up

Home searches are up

Home prices are steady or even increasing

Agents and brokers are seeing bidding wars

Interest rates are at historic lows

VA loans now available for $1,000,000+

 

 

 

 

Happy Independence Day

Freedom is a gift, given to us by our freedom fighters. They had to struggle to win independence and sacrificed their whole lives so that we could live in a free country. Let their sacrifice not go in vain. Let us promise to work hard towards making America a better nation each day.
May this day be a symbol of joy, prosperity, and happiness in your lives.

Happy Independence Day