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Displaying blog entries 11-20 of 40

Clients Deserve Honesty, Integrity and a Hard Working Realtor!

by Sonja Coffee
I'm so grateful to be able to represent my clients with the utmost integrity, honesty and great negotiating skills. This was a rollercoaster of a sale, however my clients received $25K over asking price, $50K over appraised value and it closed in 33 days! I learn and grow from each transaction I close. Tenacity, perseverance, kindness and ethics! Boom...mic drop! Lol ๐Ÿ˜‰
 
If you are looking to buy, sell or invest in either residential or commercial real estate, give me a call, I would love to help you too.
 
Give me a call and I'll handle the rest.
Sonja Coffee
YourSoCalTrustedRealEstateExpert
909-917-8129
sonja@sonjacoffee.com

Homes More Affordable Today than 1985-2000

by Sonja Coffee

Homes More Affordable Today than 1985-2000

Homes More Affordable Today than 1985-2000 | MyKCM

Rising home prices have many concerned that the average family will no longer be able to afford the most precious piece of the American Dream – their own home.

However, it is not just the price of a home that determines its affordability. The monthly cost of a home is determined by the price and the interest rate on the mortgage used to purchase it.

Today, mortgage interest rates stand at about 4.5%. The average annual mortgage interest rate from 1985 to 2000 was almost double that number, at 8.92%. When comparing affordability of homeownership over the decades, we must also realize that incomes have increased.

This is why most indexes use the percentage of median income required to make monthly mortgage payments on a typical home as the point of comparison.

Zillow recently released a report comparing home affordability over the decades using this formula. The report revealed that, though homes are less affordable this year than last year, they are more affordable today (17.1%) than they were between 1985-2000 (21%). Additionally, homes are more affordable now than at the peak of the housing bubble in 2006 (25.4%). Here is a chart of these findings:

Homes More Affordable Today than 1985-2000 | MyKCM

What will happen when mortgage interest rates rise?

Most experts think that the mortgage interest rate will increase to about 5% by year’s end. How will that impact affordability? Zillow also covered this in their report:

Homes More Affordable Today than 1985-2000 | MyKCM

Rates would need to approach 6% before homes became less affordable than they had been historically.

Bottom Line

Though homes are less affordable today than they were last year, they are still a great purchase while interest rates are below the 6% mark.

Next Recession in 2020? What Will Be the Impact?

by Sonja Coffee

Next Recession in 2020? What Will Be the Impact?

Next Recession in 2020? What Will Be the Impact? | MyKCM

Economists and analysts know that the country has experienced economic growth for almost a decade. They also know that a recession can’t be too far off. A recent report by Zillow Research shed light on a survey conducted by Pulsenomics in which they asked economists, investment strategists and market analysts how they felt about the current housing market. That report revealed the possible timing of the next recession:

Experts largely expect the next recession to begin in 2020.”

That timing concurs with a recent survey of economists by the Wall Street Journal:

“The economic expansion that began in mid-2009 and already ranks as the second-longest in American history most likely will end in 2020 as the Federal Reserve raises interest rates to cool off an overheating economy, according to forecasters surveyed.”

Here is a graph comparing the opinions of those surveyed by both the Wall Street Journal and Pulsenomics:

Next Recession in 2020? What Will Be the Impact? | MyKCM

Recession DOES NOT Equal Housing Crisis

According to the Merriam-Webster Dictionary, a recession is defined as follows:

“A period of temporary economic decline during which trade and industrial activity are reduced, generally identified by a fall in GDP in two successive quarters.”

A recession means the economy has slowed down markedly. It does not mean we are experiencing another housing crisis. Obviously, the housing crash of 2008 caused the last recession. However, during the previous five recessions home values appreciated.

Next Recession in 2020? What Will Be the Impact? | MyKCM

According to the experts surveyed by Pulsenomics, the top three probable triggers for the next recession are:

  • Monetary policy
  • Trade policy
  • A stock market correction

A housing market correction was ranked ninth in probability. Those same experts also projected that home values would continue to appreciate in 2019, 2020, 2021 and 2022.  

Others agree that housing will not be impacted like it was a decade ago.

Mark Fleming, First American’s Chief Economistexplained:

“If a recession is to occur, it is unlikely to be caused by housing-related activity, and therefore the housing sector should be one of the leading sources to come out of the recession.”

And U.S. News and World Report agreed:

“Fortunately – and hopefully – the history of recessions and current issues that could harm the economy don’t lead many to believe the housing market crash will repeat itself in an upcoming decline.”

Bottom Line

A recession is probably less than two years away. A housing crisis is not.

Monday Morning Coffee with Sonja - June 4, 2018

by Sonja Coffee
Monday morning coffee logo
 
 
 
 
(Scroll Down to get Your Real Estate News)
 
"It is time I stepped aside for a less experienced and less able man."
 
~ Professor Scott Elledge on his retirement from Cornell
 
MASTER OF THE UNIVERSE?
 
Today's quote has got to make you laugh. Professor Elledge had a clear concept of his intelligence and qualifications, but also a sense of humor about his confidence in himself (or lack of confidence in others!). Then his words make us start to think about how we perceive our own talents, and how unwilling we might be to "let go" of some of our control, meaning our control over our responsibilities and tasks - what we are expected to do and how well we are expected to do it.
 
What happens when the time comes to relinquish some of that control? Perhaps you have finally gotten to the point of needing an assistant or - horrors - to train someone else to perform your duties. Personal confidence is a superb trait, to be sure, but what happens when that confidence makes you feel like you're the only person in the world who can handle what you do? Maybe it's time for a reality check.
 
If you have these feelings, it's possible that you've already got too much responsibility in the first place. Sometimes it is very difficult to give up some of your responsibilities out of the fear that someone else will just "screw it up." Did you know how to do everything your job involves on the first day you started? A time always comes to let someone else learn how to do things, and allow them to help you if necessary.
 
Chances are that we all started out as "less experienced and less able," and along the way we surely made our own mistakes, learned and coped and ended up where we are today - Masters of the Universe! So don't worry about relinquishing some control - in the end it often proves to be better for you and for whomever needs to develop the experience that led to your own success!
I can't say too much about this inspiration this morning, as I struggle with control all the time. Letting it go and trusting others to do what needs to be done is one of the hardest things for me.....don't know why other than I'm a perfectionist (so I think) and I care so deeply that tasks get done correctly that I hinder others from their potential by giving them a chance, and maybe my vainness has something to do with it too by not wanting to look bad in others eyes..lol...  It's a work in progress for sure for me. Wishing you a fantastic week ahead! Join me in giving up some control and allowing others to learn, prosper and have a piece of the task. 
 
Blessings to you and yours, Sonja :) 

 
 
ON THE REAL ESTATE SIDE...
 
Will Home Prices Fall as Mortgage Rates Rise?
Mortgage interest rates have increased by more than half of a point since the beginning of the year. They are projected to increase by an additional half of a point by year's end. Because of this increase in rates, some are guessing that home prices will depreciate.
 
However, some prominent experts in the housing industry doubt that home values will be negatively impacted by the rise in rates.
Mark Fleming, First American's Chief Economist:
"Understanding the resiliency of the housing market in a rising mortgage rate environment puts the likely rise in mortgage rates into perspective - they are unlikely to materially impact the housing market...
The driving force behind the increase are healthy economic conditions...The healthy economy encourages more homeownership demand and spurs household income growth, which increases consumer house-buying power. Mortgage rates are on the rise because of a stronger economy and our housing market is well positioned to adapt."
Terry Loebs, Founder of Pulsenomics:
"Constrained home supply, persistent demand, very low unemployment, and steady economic growth have given a jolt to the near-term outlook for U.S. home prices. These conditions are overshadowing concerns that mortgage rate increases expected this year might quash the appetite of prospective home buyers."
Laurie Goodman, Codirector of the Housing Finance Policy Center at the Urban Institute:
"Higher interest rates are generally positive for home prices, despite decreasing affordability...There were only three periods of prolonged higher rates in 1994, 2000, and the 'taper tantrum' in 2013. In each period, home price appreciation was robust."
Industry reports are also calling for substantial home price appreciation this year. Here are three examples:
Bottom Line
As Freddie Mac reported earlier this year in their Insights Report, "Nowhere to go but up? How increasing mortgage rates could affect housing,"
"As mortgage rates increase, the demand for home purchases will likely remain strong relative to the constrained supply and continue to put upward pressure on home prices."
Are you or someone you know looking for an investment property? Below is a link and info to a property I just listed for sale. Please share if you know someone who may be interested. Thank you. :) 
 
Click on link for more info and photos.  
 
Great investment property in the city of Upland. Opportunity to live in one and rent out the other 3. Unit A has 3 bed/2 ba with new central air, new carpet, new dishwasher, fireplace, private covered back patio and more. Unit B has 1 bed / 1 ba with private patio, new carpet, new stove/oven, 2 A/C wall units newer vanity. Unit C has 2 bed / 1.5 baths with private patio, new Kitchen counter tops, new carpet, new dishwasher, 3 wall A/C units, newer vanity in bath. Unit D has 2 bed / 1.5 baths, new kitchen counter tops, new carpet newer vanity. All 4 units have ceiling fans and maintained nicely. This property has been in the same family since 1967. Each unit has their own enclosed garage space with automatic garage door and lots of street parking available. Community laundry room and well-manicured yard. Conveniently located and close to shopping, restaurants, parks malls and entertainment. Just minutes to the Metro Link and 10 and 210 Fwy. Call today! There aren't many opportunities like this one that come up for sale. The time Is now to invest in this gem of a property! Click on the link above for more info and photos.
 
Please keep me top of mind when you, a family member, neighbor or co-worker needs a professional, honest Realtor to assist them with their real estate needs.  I thank you in advance for your faith in me to serve your referrals with the utmost care, courtesy and excellent service. 
 
 
Want To Know How Much Your Home Is Worth? Go Towww.MySmartHomeValue.com
  I'm  here to help with all your Real Estate needs, I'm just a call/text or email away. 

Will Home Prices Fall as Mortgage Rates Rise?

by Sonja Coffee

Will Home Prices Fall as Mortgage Rates Rise?

Will Home Prices Fall as Mortgage Rates Rise? | MyKCM

Mortgage interest rates have increased by more than half of a point since the beginning of the year. They are projected to increase by an additional half of a point by year’s end. Because of this increase in rates, some are guessing that home prices will depreciate.

However, some prominent experts in the housing industry doubt that home values will be negatively impacted by the rise in rates.

Mark FlemingFirst American’s Chief Economist:

“Understanding the resiliency of the housing market in a rising mortgage rate environment puts the likely rise in mortgage rates into perspective – they are unlikely to materially impact the housing market…

The driving force behind the increase are healthy economic conditions…The healthy economy encourages more homeownership demand and spurs household income growth, which increases consumer house-buying power. Mortgage rates are on the rise because of a stronger economy and our housing market is well positioned to adapt.”

Terry LoebsFounder of Pulsenomics:

“Constrained home supply, persistent demand, very low unemployment, and steady economic growth have given a jolt to the near-term outlook for U.S. home prices. These conditions are overshadowing concerns that mortgage rate increases expected this year might quash the appetite of prospective home buyers.”

Laurie GoodmanCodirector of the Housing Finance Policy Center at the Urban Institute:

“Higher interest rates are generally positive for home prices, despite decreasing affordability…There were only three periods of prolonged higher rates in 1994, 2000, and the ‘taper tantrum’ in 2013. In each period, home price appreciation was robust.”

Industry reports are also calling for substantial home price appreciation this year. Here are three examples:

Bottom Line

As Freddie Mac reported earlier this year in their Insights Report“Nowhere to go but up? How increasing mortgage rates could affect housing,”

“As mortgage rates increase, the demand for home purchases will likely remain strong relative to the constrained supply and continue to put upward pressure on home prices.”

This Just In: Data Says May is the Best Month to Sell Your Home

This Just In: Data Says May is the Best Month to Sell Your Home | MyKCM

According to a newly released study by ATTOM Data Solutions, selling your home in the month of May will net you an average of 5.9% above estimated market value for your home.

For the study, ATTOM performed an “analysis of 14.7 million home sales from 2011 to 2017” and found the average seller premium achieved for each month of the year. Below is a breakdown by month:

This Just In: Data Says May is the Best Month to Sell Your Home | MyKCM

ATTOM even went a step further and broke their results down by day.

Top 5 Days to Sell:

  • June 28th – 9.1% above market
  • February 15th – 9.0% above market
  • May 31st – 8.3% above market
  • May 29th – 8.2% above market
  • June 21st – 8.1% above market

It should come as no surprise that May and June dominate as the top months to sell and that 4 of the top 5 days to sell fall in those two months. The second quarter of the year (April, May, June) is referred to as the Spring Buyers Season, when competition is fierce to find a dream home, which often leads to bidding wars.

One caveat to mention though, is that when broken down by metroATTOM noticed that while warmer climates share in the overall trend, it turns out that they have different top months for sales. The best month to get the highest price in Miami, FL, for instance, was January, and Phoenix, AZ came in with November leading the charge.

If you’re thinking of selling your home this year, the time to list is NOW! According to the National Association of Realtors, homes sold in an average of just 30 days last month! If you list now, you’ll have a really good chance to sell in May or June, setting yourself up for getting the best price!

Bottom Line

Let’s get together to discuss the market conditions in our area and get you the most exposure to the buyers who are ready and willing to buy!

Why Home Prices Are Increasing

by Sonja Coffee

Why Home Prices Are Increasing

Why Home Prices Are Increasing | MyKCM

There are many unsubstantiated theories as to why home values are continuing to increase. From those who are worried that lending standards are again becoming too lenient (data shows this is untrue), to those who are concerned that prices are again approaching boom peaks because of “irrational exuberance” (this is also untrue as prices are not at peak levels when they are adjusted for inflation), there seems to be no shortage of opinion.

However, the increase in prices is easily explained by the theory of supply & demand. Whenever there is a limited supply of an item that is in high demand, prices increase.

It is that simple. In real estate, it takes a six-month supply of existing salable inventory to maintain pricing stability. In most housing markets, anything less than six months will cause home values to appreciate and anything more than seven months will cause prices to depreciate (see chart below).

Why Home Prices Are Increasing | MyKCM

According to the Existing Home Sales Report from the National Association of Realtors (NAR), the monthly inventory of homes for sale has been below six months for the last five years (see chart below).

Why Home Prices Are Increasing | MyKCM

Bottom Line

If buyer demand continues to outpace the current supply of existing homes for sale, prices will continue to appreciate. Nothing nefarious is taking place. It is simply the theory of supply & demand working as it should.

How Much Do You Need to Make to Buy a Home in Your State?

by Sonja Coffee

How Much Do You Need to Make to Buy a Home in Your State?

How Much Do You Need to Make to Buy a Home in Your State? | MyKCM

It’s no mystery that cost of living varies drastically depending on where you live, so a new study by GOBankingRates set out to find out what minimum salary you would need to make in order to buy a median-priced home in each of the 50 states, and Washington, D.C.

States in the Midwest came out on top as most affordable, requiring the smallest salaries in order to buy a median-priced home. States with large metropolitan areas saw a bump in the average salary needed to buy with California, Washington, D.C., and Hawaii edging out all others with the highest salaries required.

Below is a map with the full results of the study:

How Much Do You Need to Make to Buy a Home in Your State? | MyKCM

GoBankingRates gave this advice to anyone considering a home purchase,

“Before you buy a home, it’s important to find out if you can afford the monthly mortgage payment. To do this, some financial experts recommend your housing costs — primarily your mortgage payments — shouldn’t consume more than 30 percent of your monthly income.”

As we recently reported, research from Zillow shows that historically, Americans had spent 21% of their income on owning a median-priced home. The latest data from the fourth quarter of 2017 shows that the percentage of income needed today is only 15.7%!

Bottom Line

If you are considering buying a home, whether it’s your first time or your fifth time, let’s get together to evaluate your ability to do so in today’s market!

Are You Aware Of How Much Equity You Have In Your Home? You May Be Surprised!

Are You Aware of How Much Equity You Have in Your Home? You May Be Surprised!

CoreLogic’s latest Equity Report revealed that 675,000 US homeowners regained positive equity in their homes in 2017. This is great news for the country, as 95.1% of all mortgaged properties are now in a positive equity situation.

U.S homeowners with mortgages (roughly 63% of all the properties) have seen their equity increase by a total of $908.4 billion since the fourth quarter 2016, an increase of 12.2%, year over year.”

Price Appreciation = Good News for Homeowners

Frank Nothaft, CoreLogic’s Chief Economist, explains:

Home-price growth has been the primary driver of home-equity wealth creation. The CoreLogic Home Price Index grew 6.2 percent during 2017. The largest calendar-year increase since 2013. Likewise, the average growth in home equity was more than $15,000 during 2017, the most in four years.”

He also believes this is a great sign for the market in 2018, saying:

“Because wealth gains spur additional consumer purchases, the rise in home-equity wealth during 2017 should add more than $50 billion to U.S. consumption spending over the next two to three years.”  

This is great news for homeowners! But, do they realize that their equity position has changed?

A study by Fannie Mae suggests that many homeowners are not aware that they have regained equity in their homes as their investment has increased in value. For example, their study showed that 23% of Americans still believe their home is in a negative equity position when, in actuality, CoreLogic’s report shows that only 4.9% of homes are in that position (down from 6.3% in Q4 2016).

The study also revealed that only 37% of Americans believe that they have “significant equity” (greater than 20%) when in actuality, 83% do!

Are You Aware of How Much Equity You Have in Your Home? You May Be Surprised! | Keeping Current Matters

This means that 46% of Americans with a mortgage fail to realize the opportune situation they are in. With a sizeable equity position, many homeowners could easily move into a house (either larger or smaller) that better meets their current needs.

Fannie Mae spoke out on this issue in their report:

“Homeowners who underestimate their homes’ values not only underestimate their home equity, they also likely underestimate 1) how large a down payment they could make with their home equity, 2) their chances of qualifying for mortgages, and, therefore, 3) their opportunities for selling their current homes and for buying different homes.”

Bottom Line

If you are one of the many Americans who is unsure of how much equity you have built in your home, don’t let that be the reason you fail to move on to your dream home in 2018! Meet with a local real estate professional today who can help you evaluate your situation and assist you along the way!

 

Displaying blog entries 11-20 of 40

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