Orange County Real Estate Thoughts

A Slowing Market: The Expected Market Time is continuing to rise rapidly.

There is a distinct chill in the morning air. Pumpkin Spice Lattes are the drink of choice at Starbucks®. Major League baseball playoffs have fans glued to their television sets. And, trees are slowly shedding their browning leaves. It is that time of the year again; it is autumn.

 Just as life transitions from summer to autumn, the housing market evolves as well. Traditionally, since the kids are back in school, the Autumn Market is when the inventory drops from its summer peak and demand fades. With the inventory dropping along with demand, the overall Expected Market Time (how long it would take to list a home today and open escrow down the road) typically does not

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OPEN HOUSE, October 06, Saturday 12:00 PM - 4:00 PM
16727 Drury Drive, Whittier, CA
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3 BEDROOMS
2 BATHROOMS (2 full)
1893 Square Feet

Coveted North East Whittier single level family pool home with 3 bedrooms, 2 baths in 1893 sq. ft. of living space on a super large lot of 15,936 sq. ft. that is perfectly situated on a private cul de sac street of 16 large lot homes that is adjacent to La Habra Heights.This beautiful homes formal living room,

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Where Are Mortgage Interest Rates Headed In 2019? | MyKCM

The interest rate you pay on your home mortgage has a direct impact on your monthly payment; the higher the rate, the greater the payment will be. That is why it is important to know where rates are headed when deciding to start your home search.

Below is a chart created using Freddie Mac’s U.S. Economic & Housing Marketing Outlook. As you can see, interest rates are projected to increase steadily over the course of the next year.

Where Are Mortgage Interest Rates Headed In 2019? | MyKCM

How Will This Impact Your Mortgage Payment?

Depending on the amount of the loan that you secure, a half of a percent (.5%) increase in interest rate can increase your monthly mortgage payment significantly.

According to CoreLogic’s latest Home Price Index, national home prices have appreciated 6.2%

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How Much Has Your Home Increased in Value? | MyKCM

Home values have risen dramatically over the last twelve months. In CoreLogic’s most recent Home Price Index Report, they revealed that national home prices have increased by 6.2% year-over-year.

CoreLogic broke down appreciation even further into four price ranges, giving us a more detailed view than if we had simply looked at the year-over-year increases in national median home price.

The chart below shows the four price ranges from the report, as well as each one’s year-over-year growth from July 2017 to July 2018 (the latest data available). 

How Much Has Your Home Increased in Value? | MyKCM

It is important to pay attention to how prices are changing in your local market. The location of your home is not the only factor which determines how much your home has appreciated over

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Love landed Elinor Frerichs in a secured facility for people with dementia.

Twelve days after the death of her husband, 95-year-old Frerichs married a friend 26 years her junior, a man who watched the same TV shows and made her feel “happier than ever.”

But shortly after saying “I do,” Frerichs was placed under a court conservatorship at the recommendation of a psychologist and Adult Protective Services. She was hospitalized and her marriage was annulled — partly to shield her estate, estimated at $1 million.

Despite concerns over her mental capacity, Frerichs appeared lucid in a transcript of a rare visit with friends, vowing, “I’m not going to sit there and rot and die in that damn room.”

 

She also had a few words for her

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What Does the Future Hold for Home Prices? | MyKCM

Home prices are at the top of everyone’s minds. Can they maintain their current pace of appreciation? Will rising mortgage rates negatively impact home values? Will the next economic slowdown cause prices to crash?

Let’s try to answer these questions based on what has happened in the past as well as what we know about the current real estate market.

The Impact of Rising Interest Rates

We explained earlier this year that rising mortgage rates have not negatively impacted home prices in the past and probably wouldn’t this time either. Freddie Mac’s comments were very direct:

“In the current housing market, the driving force behind the increase in prices is a low supply of both new and existing homes combined with historically low

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Homeownership is a Dominant Gene | MyKCM

There are many things that factor into the decision to buy a home. New research from the Urban Institute suggests that one of those things may be inherited from your parents.

Children are More Likely to Own a Home if Their Parents Did

According to an analysis of millennial homeowners, the homeownership rate of those whose parents rent their homes is 14.4%, while the rate amongst millennials whose parents are homeowners is 31.7%!

“A young adult’s odds of homeownership are highly correlated with their parent’s homeownership.

Without controlling for such factors as age, income, education, marital status, and race or ethnicity, there is a 17 percentage-point gap between the homeownership rate for young adults whose parents are

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Rents Are on The Rise: Don’t Get Caught in The Rental Trap! | MyKCM

There are many benefits to homeownership, but one of the top benefits is protecting yourself from rising rents by locking in your housing cost for the life of your mortgage.

Don’t Become Trapped 

A recent article by Apartment List addressed rising rents by stating:

“Our national rent index is up 0.1 percent month-over-month, marking the sixth straight month of increasing rents. Year-over-year growth now stands at 1.2 percent.”

The article continues, explaining that:

“Rents increased month-over-month in 62 of the nation’s 100 largest cities, down significantly from the 85 cities that saw rents rise last month. That said, rents are still up year-over-year in most of the nation’s largest markets — 77 of the 100 largest

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Why are Existing Home Sales Down? | MyKCM

The latest Existing Home Sales Report issued by the National Association of Realtors (NAR) revealed that home sales have decreased for four consecutive months and are at their slowest pace in over two years. This has some industry leaders puzzled considering the fact that the economy is strengthening, unemployment is down, and wages are beginning to rise. This begs the question: “Where are the buyers?”

Actually, agents in the field of most communities are still seeing strong desire from prospective purchasers. They have a list of potential buyers ready to go if the right houses come on the market and they claim it is not a shortage of demand, but is instead a shortage of inventory that is causing the market to soften.

Why is

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Top 3 Myths About Today’s Real Estate Market | MyKCM

There are many conflicting headlines when it comes to describing today’s real estate market. Some are making comparisons to the market we experienced 10 years ago and are starting to believe that we may be doomed to repeat ourselves. Others are just plain wrong when it comes to what it takes to qualify for a mortgage.

Today, we want to try and clear the air by shedding some light on what’s causing some of these headlines, as well as what’s truly going on.

Myth #1: We Are Headed for Another Housing Bubble

Home prices have appreciated year-over-year for the last 76 straight months. Many areas of the country are at or near their peak prices achieved before the last housing bubble burst. This has many worried that we are headed towards

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