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Home Prices Are Rebounding

Home Prices Are Rebounding Simplifying The Market

If you’re following the news today, you may feel a bit unsure about what’s happening with home prices and fear whether or not the worst is yet to come. That’s because today’s headlines are painting an unnecessarily negative picture. If we take a year-over-year view, home prices did drop some, but that’s because we’re comparing to a ‘unicorn’ year when prices peaked well beyond the norm.

To avoid an unfair comparison to that previous peak, we need to look at monthly data. And that tells a very different and much more positive story. While local home price trends still vary by market, here’s what the national data tells us.

The graphs below use recent monthly reports from three sources to show the worst home price declines are already behind us, and prices are appreciating nationally.

 

Looking at this monthly view, we can see the past year in the housing market can be divided into two parts. In the first half of 2022, home prices were going up, and fast. However, starting in July, prices began to go down (shown in red in the graphs above). By around August or September, the trend started to stabilize. But, looking at the most recent data for early 2023, these graphs also show that prices are going up again.

The fact that all three reports show prices have been going up for three or more straight months is an encouraging sign for the housing market. The month-over-month data indicates a national shift is happening – home prices are rising again.

Craig J. Lazzara, Managing Director at S&P Dow Jones Indices, says this about home price trends:

“If I were trying to make a case that the decline in home prices that began in June 2022 had definitively ended in January 2023, April’s data would bolster my argument.” 

Experts believe one of the reasons prices didn’t crash like some expected is because there aren’t enough available homes for the number of people who want to buy them. Even with today’s mortgage rates, there are more people looking to buy than there are homes available for sale.

Mark Fleming, Chief Economist at First American, explains how more demand than supply keeps upward pressure on prices:

“History has shown that higher rates may take the steam out of rising prices, but it doesn’t cause them to collapse entirely. This is especially true in today’s housing market, where the demand for homes continues to outpace supply, keeping the pressure on house prices.”

Doug Duncan, Senior VP and Chief Economist at Fannie Mae, states home price growth is exceeding expectations thanks to that high demand:

“. . . housing prices continue to show stronger growth than what was previously expected . . . Housing’s performance is a testimony to the strength of demographic-related demand . . .”

Here’s How This Affects You

  • Buyers: If you’ve been holding off on buying because you were worried the value of your home would go down, knowing home prices have bounced back should bring you some relief. It also gives you the opportunity to own something that usually becomes more valuable as time goes on.
  • Sellers: If you’ve been waiting to sell your house because you were concerned about how changing home prices would affect its value, it might be a good idea to team up with a real estate agent to list your house. You don’t have to wait any longer because the latest data suggests things are turning in your favor.

Bottom Line

If you delayed your moving plans because you were concerned about home prices dropping, the latest data reveals the worst is already over, and prices are appreciating nationally. Partner with a local real estate agent so you know what’s happening with home prices in your area.

     

JERRY TORRES’
TEAM

Sr. Mortgage Loan Originator
NMLS #365615



THE PERFORMANCE TEAM





Cell: (626) 269-9945

Fax: (800) 339-5004

Team@JerryTorres.Pro

https://www.JerryTorres.Pro/

#TechieLoanOriginator | #JerryTorresPro


Prime & NON-Prime Home Loans | Bank Statement Loans | ITIN | HELOCs


Low Housing Inventory Is a Sweet Spot for Sellers [INFOGRAPHIC]

Low Housing Inventory Is a Sweet Spot for Sellers [INFOGRAPHIC] Simplifying The Market

Some Highlights

     

JERRY TORRES’
TEAM

Sr. Mortgage Loan Originator
NMLS #365615



THE PERFORMANCE TEAM





Cell: (626) 269-9945

Fax: (800) 339-5004

Team@JerryTorres.Pro

https://www.JerryTorres.Pro/

#TechieLoanOriginator | #JerryTorresPro


Prime & NON-Prime Home Loans | Bank Statement Loans | ITIN | HELOCs


Renting or Selling Your House: What’s the Best Move?

Renting or Selling Your House: What's the Best Move? Simplifying The Market

If you’re a homeowner ready to make a move, you may be thinking about using your current house as a short-term rental property instead of selling it. A short-term rental (STR) is typically offered as an alternative to a hotel, and they’re an investment that’s gained popularity in recent years.

While a short-term rental can be a tempting idea, you may find the reality of being responsible for one difficult to take on. Here are some of the challenges you could face if you rent out your house instead of selling it.

A Short-Term Rental Comes with Responsibilities

Successfully managing your house as a short-term rental takes a lot of time and effort. You’ll have to juggle tasks like dealing with reservations, organizing check-ins, and tackling cleaning, landscape, and maintenance duties. Any one of those can feel demanding, but all together it’s a lot to handle.

Short-term rentals experience high turnover rates, as new guests check in and out frequently. This home traffic can lead to increased wear and tear on your property—meaning you may need to make more frequent repairs or replace your furniture, fixtures, and appliances more often. 

Think through your ability to make that level of commitment, especially if you plan to use a platform that advertises your rental listing. Most of them have specific requirements hosts must meet. An article from Bankrate explains:

Managing a rental property can be time-consuming and challenging. Are you handy and able to make some repairs yourself? If not, do you have a network of affordable contractors you can reach out to in a pinch? Consider whether you want to take on the added responsibility of being a landlord, which means screening tenants and fielding issues, among other responsibilities, or paying for a third party to take care of things instead.”

There’s a lot to consider before taking the leap and converting your house into a short-term rental. If you aren’t ready for the work it takes, it could be wise to sell instead.

Short-Term Rental Regulations

As the short-term rental industry continues to grow, regulations have increased. Legal restrictions commonly include limits on the number of vacation rentals in a particular location. This is especially true in larger cities and tourist destinations where there may be concerns about overcrowding or housing shortages for permanent residents. Restrictions may also apply to the type of property that can be used for short-term rentals.

Many cities also require homeowners to obtain a license or permit before renting out their properties. Nick Del Pego, CEO at Deckard Technologies, explains:

Renting short-term rentals is considered a business by most local governments, and owners must comply with specific workplace regulations and business licensing rules established in their local communities.”

It is important to thoroughly check whether short-term rentals are regulated or prohibited by the local government and your homeowners association (HOA) before even considering renting out your home. 

Bottom Line

Converting your home into a short-term rental isn’t a decision you should make without doing your research. To decide if selling your house is a better alternative, talk with a local real estate agent today.

     

JERRY TORRES’
TEAM

Sr. Mortgage Loan Originator
NMLS #365615



THE PERFORMANCE TEAM





Cell: (626) 269-9945

Fax: (800) 339-5004

Team@JerryTorres.Pro

https://www.JerryTorres.Pro/

#TechieLoanOriginator | #JerryTorresPro


Prime & NON-Prime Home Loans | Bank Statement Loans | ITIN | HELOCs


Today’s Housing Inventory Is a Sweet Spot for Sellers

Today’s Housing Inventory Is a Sweet Spot for Sellers Simplifying The Market

One of the biggest challenges in the housing market right now is how few homes there are for sale compared to the number of people who want to buy them. To help emphasize just how limited housing inventory still is, let’s take a look at the latest information on active listings, or homes for sale in a given month, as it compares to more normal levels.

According to a recent report from Realtor.com

 “On average, active inventory in June was 50.6% below pre-pandemic 2017–2019 levels.”

The graph below helps illustrate this point. It uses historical data to provide a more concrete look at how much the numbers are still lagging behind the level of inventory typical of a more normal market (see graph below):

It’s worth noting that 2020-2022 are not included in this graph. That’s because they were truly abnormal years for the housing market. To make the comparison fair, those have been omitted so they don’t distort the data.

When you compare the orange bars for 2023 with the last normal years for the housing market (2017-2019), you can see the count of active listings is still far below the norm.

What Does This Mean for You? 

If you’re thinking about selling your house, that low inventory is why this is a great time to do so. Buyers have fewer choices now than they did in more normal years, and that’s continuing to impact some key statistics in the housing market. For example, sellers will be happy to see the following data from the latest Confidence Index from the National Association of Realtors (NAR):

  • The percent of homes that sold in less than a month ticked up slightly to 74%. 
  • The median days on market went down to 18 days, showing homes are still selling fast when priced right. 
  • The average number of offers on recently sold homes went up to 3.3 offers.

Bottom Line

When supply is so low, your house is going to be in the spotlight. That’s why sellers are seeing their homes sell a little faster and get more offers right now. If you’ve thought about selling, now’s the time to make a move. Connect with a trusted real estate professional to get the process started.

     

JERRY TORRES’
TEAM

Sr. Mortgage Loan Originator
NMLS #365615



THE PERFORMANCE TEAM





Cell: (626) 269-9945

Fax: (800) 339-5004

Team@JerryTorres.Pro

https://www.JerryTorres.Pro/

#TechieLoanOriginator | #JerryTorresPro


Prime & NON-Prime Home Loans | Bank Statement Loans | ITIN | HELOCs


The True Cost of Selling Your House on Your Own

The True Cost of Selling Your House on Your Own Simplifying The Market

Selling your house is no simple task. While some homeowners opt to sell their homes on their own, known as a FSBO (For Sale by Owner), they often encounter various challenges without the guidance of a real estate agent. If you’re currently considering selling your house on your own, here’s what you should know.

The most recent Profile of Home Buyers and Sellers from the National Association of Realtors (NAR) surveyed homeowners who’d recently sold their own homes and asked what difficulties they faced. Those sellers say some of the greatest challenges were prepping their home for sale, pricing it right, and properly managing the required paperwork, just to name a few.

When it comes to selling your most valuable asset, consider the invaluable support that a real estate agent can provide. By partnering with an agent, you can navigate the complexities of the selling process with confidence. Here are just a few of the many ways an agent is essential to your home sale:

1. Marketing and Exposure

Effective marketing is a key piece of attracting qualified buyers to your property. Real estate agents have access to various marketing tools and platforms, including MLS listings, professional photography, virtual tours, and extensive professional networks. They can create a compelling listing that highlights your home’s best features and reaches a wider audience.

If you sell on your own, you may struggle to match the reach of agents, resulting in limited exposure and, ultimately, fewer potential buyers.

2. Managing Liability and Legal Considerations

Today, more disclosures and regulations are mandatory when selling a house. And all that paperwork and all the legal aspects of selling a home can be a lot to manage. Selling a house without professional guidance exposes homeowners to potential liability risks and legal complications.

Real estate agents are well-versed in the contracts, disclosures, and regulations necessary during a sale. Their expertise helps minimize the risk of errors or omissions that could lead to legal disputes or delays.

3. Negotiations and Contracts

Negotiating the terms of a home sale can be challenging, especially when emotions are involved. You may find it overwhelming to navigate these negotiations alone. Without an agent, you assume this responsibility on your own. This means you’ll have full accountability for working and negotiating with:

  • The buyer, who wants the best deal possible.
  • The buyer’s agent, who will use their expertise to advocate for the buyer.
  • The home inspection company, who works for the buyer.
  • The home appraiser, who assesses the property’s value to protect the lender.

Rather than going toe-to-toe with all these parties alone, lean on an expert. Real estate agents act as intermediaries, skillfully negotiating on your behalf and ensuring that your best interests are protected. They have experience in handling tough negotiations, counteroffers, and contingencies. When you sell your house yourself, you’ll need to be prepared to manage these vendors on your own.

4. Pricing and Housing Market Knowledge

Determining the right asking price for your property is crucial. It requires in-depth knowledge of the local real estate market, including recent sales data, neighborhood trends, and the current demand for properties. Real estate agents have access to comprehensive market data and the expertise to analyze it accurately.

When you sell your house on your own without this comprehensive information, you risk overpricing or underpricing your home. This can result in an extended time on the market and also the risk of leaving money on the table – which decreases your future buying power. An agent is a key piece of the pricing puzzle.

Bottom Line

While selling a home on your own might seem appealing at first, the challenges that come with it can quickly become overwhelming. The expertise that a real estate agent brings to the table is vital for a successful sale. Instead of tackling it alone, make sure you have an expert on your side.

     

JERRY TORRES’
TEAM

Sr. Mortgage Loan Originator
NMLS #365615



THE PERFORMANCE TEAM





Cell: (626) 269-9945

Fax: (800) 339-5004

Team@JerryTorres.Pro

https://www.JerryTorres.Pro/

#TechieLoanOriginator | #JerryTorresPro


Prime & NON-Prime Home Loans | Bank Statement Loans | ITIN | HELOCs


Por qué tiene sentido vender su casa esta temporada festiva

Si usted es uno de los muchos propietarios de vivienda que están pensando sacar su casa del mercado durante los días festivos, espere. Definitivamente no querrá perderse la gran oportunidad de venta que tiene en este momento. He aquí por qué este mes es el momento óptimo para asegurarse de que su casa está disponible para los compradores de los días festivos.

El último informe de las ventas de las casas ya existentes de la Asociación nacional de Realtors (NAR por sus siglas en inglés), muestra que el inventario de las casas para la venta ha caído a un sorprendente mínimo histórico. Ahora se encuentra con un suministro para 2.5 meses al ritmo de ventas actual.

Históricamente, una oferta para 6 meses es necesaria para un mercado ‘normal’ o “neutral”, en el que hay suficientes casas disponibles para los compradores activos (ver la gráfica a continuación):Por qué tiene sentido vender su casa esta temporada festiva | Simplifying The Market
Cuando la oferta de las casas en venta es tan baja como lo está hoy día, es mucho mas fácil para los compradores encontrar casas que comprar. Esto significa que la competencia entre los compradores aumenta y se producen más guerras de ofertas, por lo que es esencial que los compradores presenten ofertas muy atractivas.

A medida que esto sucede, los precios suben y los vendedores están en la mejor posición para negociar acuerdos que cumplan sus términos ideales. Por lo tanto, si sus vecinos deciden sacar las casas de la venta esta temporada, posiblemente su casa ocupe el primer puesto en la lista de deseos de un comprador si se queda en el mercado.

Hoy, hay muchos compradores que están listos, dispuestos, y en capacidad para comprar. Las tasas hipotecarias históricamente bajas y un año lleno de cambios únicos han llevado a los compradores a pensar de manera diferente sobre dónde viven y a tomar medidas. La oferta de casas para la venta no se mantiene con la demanda alta, por lo que ahora es el momento óptimo para vender su casa.

En conclusión,

Los precios de las casas están apreciando en el mercado actual de los vendedores. Tener su casa disponible durante las próximas semanas le dará la mayor exposición a los compradores que competirán activamente entre sí para comprarla.

JERRY TORRES’
TEAM

Sr. Mortgage Loan Originator
NMLS #365615


THE PERFORMANCE TEAM



Cell: (626) 269-9945

Fax: (800) 339-5004

Team@JerryTorres.Pro

https://www.JerryTorres.Pro/

#TechieLoanOriginator | #JerryTorresPro


Prime & NON-Prime Home Loans | Bank Statement Loans | ITIN | HELOCs


Una nueva manera de comprar casas en un mundo virtual

En un año en el que estamos aprendiendo a hacer tantas cosas de forma remota, comprar una casa no es la excepción. Desde ir al trabajo hasta asistir a la escuela, comprar alimentos e incluso ver a nuestro médico en línea. Las consultas digitales han cambiado la forma en que vivimos.

Este año, en vez de retrasar las compras de sus viviendas, los compradores, junto con sus profesionales en bienes raíces de confianza, recurrieron a internet para hacer más que una simple búsqueda de casas. En algunos casos, compraron casas sin siquiera pisar el interior. Jessica Lautz, Vicepresidenta de Demografía y Perspectivas del Comportamiento de la Asociación Nacional de Realtors (NAR por sus siglas en inglés), dice:

“Tradicionalmente, la gente no compra las casas sin verlas. Todavía no es un gran número, pero ha aumentado, y definitivamente hemos visto que la tendencia se acelera”.

Según NAR, a lo largo de la pandemia del Coronavirus, uno de cada 20 compradores de vivienda compró una casa sin verla.

Como su agente en bienes raíces preparará el camino

Hoy, los profesionales en bienes raíces están utilizando practicas digitales para ayudar virtualmente a los compradores de vivienda y a los vendedores a través de los muchos pasos en el proceso. Mientras que siguen las regulaciones establecidas por los CDC y todas las pautas locales este año, los agentes rápidamente empoderaron a los compradores y vendedores con visitas virtuales, planos de planta en 3D, fotos de alta calidad, videos, casas abiertas en línea y más. Para aquellos que tenían la necesidad de comprar y vender en 2020, los asesores de confianza lo hicieron posible en muchos mercados.

Aquí hay una gráfica que muestra algunas de las opciones digitales que los compradores encontraron mas útiles en su búsqueda este año. Como señaló NAR en el Perfil de los compradores y vendedores de viviendas de 2020Una nueva manera de comprar casas en un mundo virtual | Simplifying The Market

El informe también menciona que los compradores este año generalmente buscaron durante ocho semanas. A lo largo de esa búsqueda, vieron una mediana de 9 casas, pero no todas fueron vistas en persona. Yahoo Finance señala:

“Los compradores vieron cinco casas en línea y cuatro casas en persona durante la pandemia, en comparación con nueve casas en persona en 2019, según NAR. Este fue el primer año que NAR pidió a los compradores que especificaran el número de casas recorridas virtualmente”.

En cierto modo de 2020, las practicas virtuales ayudaron a los compradores a elegir de forma segura sus mejores opciones, por lo que no tuvieron que entrar innecesariamente en mas casas de las que necesitaban ver durante todo el proceso. Este es el desglose por región:Una nueva manera de comprar casas en un mundo virtual | Simplifying The Market

En un momento en que la salud y la seguridad son prioridades, la tecnología actual esta haciendo posible que los compradores y vendedores avancen con sus planes de bienes raíces a su propio nivel de comodidad, incluso a través de una pandemia mundial. Para muchos, esto significa que los compradores ya no tienen que recorrer físicamente cada casa que quieren ver, y los vendedores no necesitan abrir sus puertas una y otra vez durante todo el proceso. La seguridad puede ser lo primordial, y los profesionales en bienes raíces de confianza están aquí para ayudar.

En conclusión,

Si está listo para mudarse, es posible que tuvo que hacer una pausa en sus planes esta temporada. Comuniquémonos para determinar las opciones seguras y efectivas para comprar o vender una casa en nuestra área o dondequiera que esté buscando mudarse.

JERRY TORRES’
TEAM

Sr. Mortgage Loan Originator
NMLS #365615


THE PERFORMANCE TEAM



Cell: (626) 269-9945

Fax: (800) 339-5004

Team@JerryTorres.Pro

https://www.JerryTorres.Pro/

#TechieLoanOriginator | #JerryTorresPro


Prime & NON-Prime Home Loans | Bank Statement Loans | ITIN | HELOCs