Page not found – Real Estate https://karabrem.com Real Estate Wed, 13 Mar 2024 15:16:12 +0000 en-US hourly 1 Your Home Is a Powerful Investment https://karabrem.com/2024/03/13/your-home-is-a-powerful-investment https://karabrem.com/2024/03/13/your-home-is-a-powerful-investment#respond Wed, 13 Mar 2024 15:16:12 +0000 https://karabrem.com/?p=1877 Going into 2023, there was a lot of talk about a possible recession that would cause the housing market to crash. Some in the media were even forecasting home prices would drop by as much as 10-20%—and that might have made you feel a bit unsure about buying a home. But here’s what actually happened: home prices went up more […]

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Going into 2023, there was a lot of talk about a possible recession that would cause the housing market to crash. Some in the media were even forecasting home prices would drop by as much as 10-20%—and that might have made you feel a bit unsure about buying a home.

But here’s what actually happened: home prices went up more than usual. Brian D. Luke, Head of Commodities at S&P Dow Jones Indicesexplains:

“Looking back at the year, 2023 appears to have exceeded average annual home price gains over the past 35 years.”

To put last year’s growth into context, the graph below uses data from Freddie Mac on how home prices have changed each year going back to 1980. The dotted line shows the long-term average for appreciation:

a graph showing the average of a home appreciation

The big takeaway? Home prices almost always go up.

As an article from Forbes says:

“. . . the U.S. real estate market has a long and reliable history of increasing in value over time.”

In fact, since 1980, the only time home prices dropped was during the housing market crash (shown in red in the graph above). Fortunately, the market today isn’t like it was in 2008. For starters, there aren’t enough available homes to meet buyer demand right now. On top of that, homeowners have a tremendous amount of equity, so they’re on much stronger footing than they were back then. That means there won’t be a wave of foreclosures that causes prices to fall.

The fact that home values went up every single year except those four in red is why owning a home can be one of the smartest moves you can make. When you’re a homeowner, you own something that typically becomes more valuable over time. And as your home’s value appreciates, your net worth grows.

So, if you’re financially stable and prepared for the costs and expenses of homeownership, buying a home might make a lot of sense for you.

Bottom Line

Home prices almost always go up over time. That makes buying a home a smart move, if you’re ready and able. Let’s connect to talk about your goals and what’s available in our area.

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How Changing Mortgage Rates Impact You https://karabrem.com/2024/02/27/how-changing-mortgage-rates-impact-you https://karabrem.com/2024/02/27/how-changing-mortgage-rates-impact-you#respond Tue, 27 Feb 2024 17:07:10 +0000 https://karabrem.com/?p=1873 Some Highlights If you’re looking to buy a home, it’s important to know how mortgage rates impact what you can afford and how much you’ll pay each month. That’s because even a small change in mortgage rates can have a big impact on your purchasing power. The best way to navigate changing mortgage rates and make an informed buying decision is to rely on the expertise of a […]

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a house with many different colored numbers

Some Highlights

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Are More Homeowners Selling as Mortgage Rates Come Down? https://karabrem.com/2024/01/25/are-more-homeowners-selling-as-mortgage-rates-come-down https://karabrem.com/2024/01/25/are-more-homeowners-selling-as-mortgage-rates-come-down#respond Thu, 25 Jan 2024 21:10:51 +0000 https://karabrem.com/?p=1865 If you’re looking to buy a home, the recent downward trend in mortgage rates is good news because it helps with affordability. But there’s another way this benefits you – it may inspire more homeowners to put their houses up for sale. The Mortgage Rate Lock-In Effect Over the past year, one factor that’s really limited the options […]

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If you’re looking to buy a home, the recent downward trend in mortgage rates is good news because it helps with affordability. But there’s another way this benefits you – it may inspire more homeowners to put their houses up for sale.

The Mortgage Rate Lock-In Effect

Over the past year, one factor that’s really limited the options for your move is how few homes were on the market. That’s because many homeowners chose to delay their plans to sell once mortgage rates went up. An article from Freddie Mac explains:

The lack of housing supply was partly driven by the rate lock-in effect. . . . With higher rates, the incentive for existing homeowners to list their property and move to a new house has greatly diminished, leaving them rate locked.”

These homeowners decided to stay put and keep their current lower mortgage rate, rather than move and take on a higher one on their next home.

Early Signs Show Those Homeowners Are Ready To Move Again

According to the latest data from Realtor.com, there were more homeowners putting their houses up for sale, known in the industry as new listings, in December 2023 compared to December 2022 (see graph below):

Here’s why this is so significant. Typically, activity in the housing market cools down in the later months of the year as some sellers choose to delay their moves until January rolls around.

This is the first time since 2020 that we’ve seen an uptick in new listings this time of year. This could be a signal that the rate lock-in effect is easing a bit in response to lower rates.

What This Means for You

While there isn’t going to suddenly be an influx of options for your home search, it does mean more sellers may be deciding to list. According to a recent article from the Joint Center for Housing Studies (JCHS):

A reduction in interest rates could alleviate the lock-in effect and help lift homeowner mobility. Indeed, interest rates have recently declined, falling by a full percentage point from October to November 2023 . . . Further decreases would reduce the barrier to moving and give homeowners looking to sell a newfound sense of urgency . . .”

And that means you may see more homes come onto the market to give you more fresh options to choose from.

Bottom Line

As mortgage rates come down, more sellers may re-enter the market – that gives you an opportunity to find the home you’re looking for. Let’s connect so you’ve got a local expert on your side who’ll help you stay on top of the latest listings in our area.

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*Monthly Market Recap* https://karabrem.com/2024/01/10/monthly-market-recap https://karabrem.com/2024/01/10/monthly-market-recap#respond Wed, 10 Jan 2024 16:28:30 +0000 https://karabrem.com/?p=1853 December numbers are in. Here’s the scoop: Existing-home sales across the US rose in December climbing 0.8% from the previous month and breaking a five-month streak in which sales declined, according to the National Association of REALTORS® (NAR). Despite the increase, sales were down compared to the same period last year, as affordability challenges continued […]

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December numbers are in. Here’s the scoop:
Existing-home sales across the US rose in December climbing 0.8% from the previous month and breaking a five-month streak in which sales declined, according to the National Association of REALTORS® (NAR).
Despite the increase, sales were down compared to the same period last year, as affordability challenges continued to hinder prospective buyers. Most of this period’s closed sales went under contract in October, when mortgage rates were at a two-decade high.
With rates having dropped more than a full percentage point since then, existing-home sales are forecasted to pick up in the coming months.

With average, 30-yr mortgage rates DROPPING, and inflation abating, the outlook for 2024 is positive. That being said, homebuyer demand is picking up, and without a significant increase in supply, experts believe home prices will likely remain elevated for some time to come.
NOTE: There are two photos. One is for detached homes in North county, SD and the other is for attached (condos and townhomes). If you would like specific cities or zip codes reach out to me for a more tailored synopsis.
Every buyer and seller’s situation is different and personal. Is it the right time for you to buy or list your property? Give me a call and let’s assess together. I will provide you accurate and relevant data so you can make the most informed decision possible.
Kara Brem REALTOR®
DRE Lic. #01939667
(831) 818-3050
kara@karabrem.com

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Expert Quotes on the 2024 Housing Market Forecast https://karabrem.com/2023/12/23/expert-quotes-on-the-2024-housing-market-forecast https://karabrem.com/2023/12/23/expert-quotes-on-the-2024-housing-market-forecast#respond Sat, 23 Dec 2023 19:37:38 +0000 https://karabrem.com/?p=1849 Expert Quotes on the 2024 Housing Market Forecast If you’re thinking about buying or selling a home soon, you probably want to know what you can expect from the housing market in 2024. In 2023, higher mortgage rates, confusion over home price headlines, and a lack of homes for sale created some challenges for buyers and sellers looking to make a move. But […]

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Expert Quotes on the 2024 Housing Market Forecast

If you’re thinking about buying or selling a home soon, you probably want to know what you can expect from the housing market in 2024. In 2023, higher mortgage rates, confusion over home price headlines, and a lack of homes for sale created some challenges for buyers and sellers looking to make a move. But what’s on the horizon for the new year?

The good news is, many experts are optimistic we’ve turned a corner and are headed in a positive direction.

Mortgage Rates Expected To Ease

Recently, mortgage rates have started to come back down. This has offered hope to buyers dealing with affordability challenges. Mark Fleming, Chief Economist at First Americanexplains how they may continue to drop:

Mortgage rates have already retreated from recent peaks near 8 percent and may fall further . . .

Jessica Lautz, Deputy Chief Economist at the National Association of Realtors (NAR), says:

“For home buyers who are taking on a mortgage to purchase a home and have been wary of the autumn rise in mortgage rates, the market is turning more favorable, and there should be optimism entering 2024 for a better market.”

The Supply of Homes for Sale May Grow

As rates ease, activity in the housing market should pick up because more buyers and sellers who had been holding off will jump back into action. If more sellers list, the supply of homes for sale will grow – a trend we’ve already started to see this year. Lisa Sturtevant, Chief Economist at Bright MLSsays:

Supply will loosen up in 2024. Even homeowners who have been characterized as being ‘locked in’ to low rates will increasingly find that changing family and financial circumstances will lead to more moves and more new listings over the course of the year, particularly as rates move closer to 6.5%.”

Home Price Growth Should Moderate

And mortgage rates pulling back isn’t the only positive sign for affordabilityHome price growth is expected to moderate too, as inventory improves but is still low overall. As the Home Price Expectation Survey (HPES) from Fannie Mae, a survey of over 100 economists, investment strategists, and housing market analysts, says:

“On average, the panel anticipates home price growth to clock in at 5.9% in 2023, to be followed by slower growth in 2024 and 2025 of 2.4 percent and 2.7 percent, respectively.” 

To wrap it up, experts project 2024 will be a better year for the housing market. So, if you’re thinking about making a move next year, know that early signs show we’re turning a corner. As Mike Simonsen, President and Founder of Altos Researchputs it:

“We’re going into 2024 with slight home-price gains, somewhat easing inventory constraints, slightly increasing transaction volume . . . All in all, things are looking up for the U.S. housing market in 2024.”

Bottom Line

Experts are optimistic about what 2024 holds for the housing market. If you’re looking to buy or sell a home in the new year, the best way to ensure you’re up to date on the latest forecasts is to partner with a trusted real estate agent. Let’s connect.

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December Real Estate Market and Mortgage Update https://karabrem.com/2023/12/09/december-real-estate-market-and-mortgage-update https://karabrem.com/2023/12/09/december-real-estate-market-and-mortgage-update#respond Sat, 09 Dec 2023 19:26:17 +0000 https://karabrem.com/?p=1845 Well, well, well…here we are already in DECEMBER! I am truly boggled as to how the holidays and the end of 2023 is among us already. Not only am I excited for holiday lights (see below for a list of to check out) parades, hot cider and of course SANTA (!) but I’m equally excited […]

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Well, well, well…here we are already in DECEMBER! I am truly boggled as to how the holidays and the end of 2023 is among us already.
Not only am I excited for holiday lights (see below for a list of to check out) parades, hot cider and of course SANTA (!) but I’m equally excited for what is happening this week in the mortgage market. Let’s dive right in and take a look at what’s going on!

Remember, every buyer and seller’s situation is different and personal. Is it the right time for you to buy or list your property? Give me a call and let’s assess together. I will provide you accurate and relevant data so you can make the most informed decision possible.

Holiday Cheers-
Kara Brem

Real Estate News and Market Trends

November numbers are in. Here’s the scoop:

The mortgage market just had its strongest week in months and I cannot begin to explain how happy this makes me for my buyers AND sellers.

Falling mortgage rates brought increased demand as well. Total home loan applications increased 2.8% for the week ending Dec. 1 compared to the previous week, according to data from the Mortgage Bankers Association (MBA).

Slower inflation, along with the confidence financial markets have that we are nearing the end of the Fed’s hiking cycle, has brought mortgage rates to the lowest level since early August.

Now all we can do is hope that we continue to move in this direction!

 

 

Other big news is the new loan limits for 2024. In San Diego County, the Conventional limit is up to $766,550 and the high loan limit is up to $1,006,250. Most lenders begin using these new limits right away.

NOTE: There are two slides. One is for detached homes in North county, SD and the other is for attached (condos and townhomes). If you would like specific cities or zip codes reach out to me for a more tailored synopsis.

 

 

 

Mortgage Rate Update:

The holiday season is delivering early gifts to would-be buyers. Having climbed relentlessly for most of 2023, from just below 6% to just over 8% in October/November, average 30 year mortgage rates have plummeted in recent weeks to mid 6’s. Woohoo! Furthermore, with inflation continuing to trend lower, the markets are increasingly convinced that the Fed it’s done hiking rates and could start CUTTING rates in the first half of 2024.

It’s beginning to look a lot like Christmas. 🙂

FUN FACT: Interest rates reached their highest point in modern history in October 1981 when they peaked at 18.63%!

*No points purchased. Rates are based on 30 year fixed with excellent credit score and 20% down. This is just an estimate. Rates may vary.

If you would like to know your market value
or find out if it is a good time for you to sell or buy, I am here. Reach out and let’s get started!

REALTOR®
Windermere Real Estate
DRE Lic. #01939667
Phone: 831-818-3050
Email: kara@karabrem.com
Website: www.karabrem.com

View full version online here

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THIS WEEKS MORTGAGE UPDATE: INTEREST RATES PLUNGE https://karabrem.com/2023/12/02/this-weeks-mortgage-update-interest-rates-plunge https://karabrem.com/2023/12/02/this-weeks-mortgage-update-interest-rates-plunge#respond Sat, 02 Dec 2023 17:36:17 +0000 https://karabrem.com/?p=1839 THIS WEEKS MORTGAGE UPDATE: The holiday season is delivering early gifts to would-be buyers. Having climbed relentlessly for most of 2023, from just below 6% to just over 8%, average 30 year mortgage rates have plummeted in recent weeks to mid 6’s. Woohoo! Furthermore, with inflation continuing to trend lower, the markets are increasingly convinced […]

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THIS WEEKS MORTGAGE UPDATE:


The holiday season is delivering early gifts to would-be buyers.

Having climbed relentlessly for most of 2023, from just below 6% to just over 8%, average 30 year mortgage rates have plummeted in recent weeks to mid 6’s. Woohoo! Furthermore, with inflation continuing to trend lower, the markets are increasingly convinced that the Fed it’s done hiking rates and could start CUTTING rates in the first half of 2024.

Other big news is the new loan limits for 2024. In San Diego County, the Conventional limit is up to $766,550 and the high loan limit is up to $1,006,250. Most lenders begin using these new limits right away.

It’s beginning to look a lot like Christmas. 🙂

*No points purchased. Rates are based on 30 year fixed with excellent credit score and 20% down. This is just an estimate. Rates may vary.
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Kara Brem REALTOR®
DRE Lic. #01939667
(831) 818-3050
kara@karabrem.com

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4 Signs Your Property Values are About to Skyrocket https://karabrem.com/2023/11/11/4-signs-your-property-values-are-about-to-skyrocket https://karabrem.com/2023/11/11/4-signs-your-property-values-are-about-to-skyrocket#respond Sat, 11 Nov 2023 15:54:49 +0000 https://karabrem.com/?p=1833 Signs that your neighborhood is about to POP and your property values are about to skyrocket 🚀 *Whole Foods/Starbucks/Target moves in* Studies have proven that neighborhood amenities have a direct impact on property values. When household-name brands set up shop in your community, it’s usually a good sign as those companies are researching way ahead […]

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Signs that your neighborhood is about to POP and your property values are about to skyrocket 🚀

*Whole Foods/Starbucks/Target moves in*

Studies have proven that neighborhood amenities have a direct impact on property values. When household-name brands set up shop in your community, it’s usually a good sign as those companies are researching way ahead of time where to go next. Often times their research teams know better than any of us where the next up and coming areas are. These amenities bring traffic into the neighborhood and jobs to the local economy, and make the area more convenient and attractive to prospective buyers.

*Local school scores are increasing*

Whether or not there are children in your family or future, local school scores definitely impact resale value. San Diego is home to some of the best private and public schools in the state and has an inarguable impact on local property values.

*Planter boxes and flower beds start cropping up*

Do your neighbors take pride in maintaining their homes? Do you have a tight-knit community where neighbors look out for each other? Believe it or not, neighborhood pride can increase property values. Property maintenance can be indicative of what your lifestyle will be like in a specific neighborhood, both for you as a homeowner and for future prospective buyers who would rather see a well-manicured lawn and flower pots on the front porch than peeling paint and broken front steps.

*A major corporation sets up headquarters nearby*
When big businesses move to town, they not only bring jobs but also head count. If you have an influx of people moving into your community, there’s going to be more competition for existing homes and possibly more development opportunities for local investors. Not to mention, big corporations want to entice workers and tend to give back to make their surrounding communities a comfortable place to live.

Questions about property values in your neighborhood? Reach out anytime and we can schedule a casual coffee or quick phone call!

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Kara Brem REALTOR®

DRE Lic. #01939667

(831) 818-3050

kara@karabrem.com

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23 Southern California Real Estate Market Update https://karabrem.com/2023/11/06/23-southern-california-real-estate-market-update https://karabrem.com/2023/11/06/23-southern-california-real-estate-market-update#respond Mon, 06 Nov 2023 18:02:38 +0000 https://karabrem.com/?p=1825 The following analysis of select counties of the Southern California real estate market is provided by Windermere Real Estate Chief Economist Matthew Gardner. I hope that this information may assist you with making better-informed real estate decisions. For further information about the housing market in your area, please don’t hesitate to contact me.   Regional […]

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The following analysis of select counties of the Southern California real estate market is provided by Windermere Real Estate Chief Economist Matthew Gardner. I hope that this information may assist you with making better-informed real estate decisions. For further information about the housing market in your area, please don’t hesitate to contact me.

 

Regional Economic Overview

The Southern California market areas contained in this report have been experiencing a fairly significant slowdown in job growth. That said, the region has added 164,700 jobs since the third quarter of 2022, representing a growth rate of 1.7%. The end of the writers’ strike will add a little boost to the Los Angeles area, which has still added over 89,000 jobs over the past 12 months. Orange County employment has grown by 34,100 jobs; San Diego County is higher by 31,400; and employment was up 9,700 jobs in Riverside.

The region’s unemployment rate in August was 5.2%, which was up from 4.2% in the third quarter of 2022. The lowest jobless rate was in San Diego County, where it was 4.3%. The highest rate was in Los Angeles County, where 5.8% of the workforce was without a job.

Southern California Home Sales

❱ In the third quarter of 2023, 32,398 homes sold, which was 16% lower than in the third quarter of 2022 and down 8.6% compared to the second quarter of this year.

❱ Pending home sales, which are an indicator of future closings, were 8.2% lower than in the second quarter, suggesting that closing numbers may be down in the final quarter of 2023.

❱ Compared to the third quarter of 2022, sales fell the most in San Bernardino County, though there was a significant decline in all markets. The quarter-over-quarter decline was disconcerting given that the number of homes for sale rose more than 14%. Rising mortgage rates are clearly taking their toll on the market.

❱ It’s discouraging that there were fewer sales despite rising inventory levels. Mortgage rates are definitely hobbling the market and until they start to drop, I think things will continue to be lackluster. List prices have started to pull back in response, as sellers realize that the market is not what it once was.

A graph showing the annual change in home sales by county in Southern California from Q3 2022 to Q3 2023. Orange County had the least drastic change at -12.1%, while San Bernardino had the largest change at -18.9%. San Diego and Riverside County are in the middle at -17.1 percent.

Southern California Home Prices

❱ Home sale prices were up 5.7% from the third quarter of 2022 and were 3.8% higher than in the second quarter of 2023.

❱ Affordability continues to be a major constraint in the region, which is being magnified by persistently high mortgage rates. Prices are holding, but growth has slowed significantly.

❱ Year over year, prices rose in all the markets contained in this report, with significant increases in San Diego and Orange counties. Compared to the second quarter of 2023, Riverside County saw prices fall by 5.8%, but they rose in the balance of the market areas.

❱ I expect price growth in Southern California to hold at or near the current pace. However, it’s very possible that home sale prices could drop a little if list prices fall further.

A map showing the real estate home prices percentage changes for various counties in Southern California. Different colors correspond to different tiers of percentage change. San Diego had percentage change above 5% and is represented in the corresponding navy color. Los Angeles and San Bernardino were in the 2-2.9% range. Riverside was in the -1-1.9% range and is represented in the light grey color on the map.

A bar graph showing the annual change in home sale prices by county in Southern California from Q3 2022 to Q3 2023. Riverside County is represented by the at the bottom at 1.2% increase. San Diego is at the top with a 11.1% increase.

Mortgage Rates

Mortgage rates continued trending higher in the third quarter of 2023 and are now at levels we have not seen since the fall of 2000. Mortgage rates are tied to the interest rate (yield) on 10-year treasuries, and they move in the opposite direction of the economy. Unfortunately for mortgage rates, the economy remains relatively buoyant, and though inflation is down significantly from its high, it is still elevated. These major factors and many minor ones are pushing Treasury yields higher, which is pushing mortgage rates up. Given the current position of the Federal Reserve, which intends to keep rates “higher for longer,” it is unlikely that home buyers will get much reprieve when it comes to borrowing costs any time soon.

With such a persistently positive economy, I have had to revise my forecast yet again. I now believe rates will hold at current levels before starting to trend down in the spring of next year.

A bar graph showing the mortgage rates from Q3 2021 to the present, as well as Matthew Gardner's forecasted mortgage rates through Q3 2024. In Q3 2023 Mortgage Rates hit 7.04% and Matthew Gardner predicts rates will decrease steadily over the next 4 quarters.

Southern California Days on Market

❱ In the third quarter of 2023, the average time it took to sell a home in the region was 27 days. This was up two days compared to the same period of 2022.

❱ Compared to the second quarter of 2023, market time fell six days and was lower across all counties covered by this report.

❱ Homes in San Diego County continue to sell at a faster rate than other markets in the region, but it took two fewer days to sell a home than it did in the third quarter of 2022. Orange County saw days on market fall by one day compared to the third quarter of 2022, but market time rose everywhere else.

❱ Homebuyers saw rising inventories, and those who chose to make offers did so relatively quickly, even though the total number of sales fell. If the number of homes for sale continues to rise, it may also cause market time to rise as buyers become more selective.

A bar graph showing the days on market by county for homes in Southern California in Q3 2023. San Diego County had the lowest DOM at 19, while Riverside County had the highest at 35. Los Angeles is in the middle at 26 days.

Conclusions

This speedometer reflects the state of the region’s real estate market using housing inventory, price gains, home sales, interest rates, and larger economic factors.

With inventory levels rising, and sales and asking prices falling, it would be easy to suggest that home buyers have the upper hand. However, home prices are still rising, albeit slowly, which tends to favor sellers.

The quandary really comes down to the fact that while inventory levels have risen, they remain remarkably low compared to historic averages. It’s also likely that the buyers who are still in the market are looking to move more from necessity than desire, which makes sense given today’s high mortgage rates.

A speedometer graph indicating a light seller's market in Southern California for Q3 2023. The meter is solidly in the “balanced market” portion of the chart leaning closer to “seller’s market” than the center of “balanced market.”

That has put us in a very unusual situation. Although sellers are being a little more competitive, as evidenced by the drop in list prices, they have not totally capitulated. Taking all these factors into consideration, I have moved the needle back to the middle of the speedometer. I simply don’t see either side as having the upper hand at the present time.

About Matthew Gardner

Matthew Gardner - Chief Economist for Windermere Real Estate

As Chief Economist for Windermere Real Estate, Matthew Gardner is responsible for analyzing and interpreting economic data and its impact on the real estate market on both a local and national level. Matthew has over 30 years of professional experience both in the U.S. and U.K.

In addition to his day-to-day responsibilities, Matthew sits on the Washington State Governors Council of Economic Advisors; chairs the Board of Trustees at the Washington Center for Real Estate Research at the University of Washington; and is an Advisory Board Member at the Runstad Center for Real Estate Studies at the University of Washington where he also lectures in real estate economics.

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Are Higher Mortgage Rates Here To Stay? https://karabrem.com/2023/10/16/are-higher-mortgage-rates-here-to-stay https://karabrem.com/2023/10/16/are-higher-mortgage-rates-here-to-stay#respond Mon, 16 Oct 2023 17:51:19 +0000 https://karabrem.com/?p=1757 Mortgage rates have been back on the rise recently and that’s getting a lot of attention from the press. If you’ve been following the headlines, you may have even seen rates recently reached their highest level in over two decades (see graph below): That can feel like a little bit of a gut punch if you’re thinking about making […]

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Mortgage rates have been back on the rise recently and that’s getting a lot of attention from the press. If you’ve been following the headlines, you may have even seen rates recently reached their highest level in over two decades (see graph below):

That can feel like a little bit of a gut punch if you’re thinking about making a move. If you’re wondering whether or not you should delay your plans, here’s what you really need to know.

 How Higher Mortgage Rates Impact You 

There’s no denying mortgage rates are higher right now than they were in recent years. And, when rates are up, that affects overall home affordability. It works like this. The higher the rate, the more expensive it is to borrow money when you buy a home. That’s because, as rates trend up, your monthly mortgage payment for your future home loan also increases.

Urban Institute explains how this is impacting buyers and sellers right now:

 When mortgage rates go up, monthly housing payments on new purchases also increase. For potential buyers, increased monthly payments can reduce the share of available affordable homes . . . Additionally, higher interest rates mean fewer homes on the market, as existing homeowners have an incentive to hold on to their home to keep their low interest rate.”

Basically, some people are deciding to put their plans on hold because of where mortgage rates are right now. But what you want to know is: is that a good strategy?

 Where Will Mortgage Rates Go from Here?

If you’re eager for mortgage rates to drop, you’re not alone. A lot of people are waiting for that to happen. But here’s the thing. No one knows when it will. Even the experts can’t say with certainty what’s going to happen next.

Forecasts project rates will fall in the months ahead, but what the latest data says is that rates have been climbing lately. This disconnect shows just how tricky mortgage rates are to project.

The best advice for your move is this: don’t try to control what you can’t control. This includes trying to time the market or guess what the future holds for mortgage rates. As CBS News states:

 “If you’re in the market for a new home, experts typically recommend focusing your search on the right home purchase — not the interest rate environment.”

Instead, work on building a team of skilled professionals, including a trusted lender and real estate agent, who can explain what’s happening in the market and what it means for you. If you need to move because you’re changing jobs, want to be closer to family, or are in the middle of another big life change, the right team can help you achieve your goal, even now.

Bottom Line

The best advice for your move is: don’t try to control what you can’t control – especially mortgage rates. Even the experts can’t say for certain where they’ll go from here. Instead, focus on building a team of trusted professionals who can keep you informed. When you’re ready to get the process started, let’s connect.

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