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The Best Time to Buy Real Estate in Over 15 Months is Right Now—Here’s Why

September 25th, 2023 | 5 minute read

Making the move before the market does is the ultimate sign of an investor plugged into their environment. Being able to go against the consensus of “logical” thinking is a difficult task, but soon after, when the market follows, you’ll look like a genius. 

So right now, while real estate supply is still historically short, people aren’t buying (because they can’t afford it), and investors don’t want to borrow because they are waiting for rates to drop (and they will very soon), you need to buy. Here’s why. 

Interest Rates: The Poster Child of the Soft Landing 

Interest rates have played the biggest role in the market for over a year now. The Federal Reserve’s attempt at slowing down inflation and the economy and stuffing the record-breaking housing market in 2022 has, for the most part, been a success in their book. 

Even though interest rates may have absolutely sideswiped the market, the decently high rates are shaping a new market that can help investors make huge gains down the road. 

First, we must look at the sole purpose of raising interest rates in the first place: to slow down the rapid inflation the economy was facing in the first half of 2022. Coming off the hottest real estate market in recent history, where prices were skyrocketing, and buyers could not bid high enough to buy any property that was on the market for more than three days, the Fed needed to get it under control. 

Once interest rate spikes started, they continued to rise for over 15 months. The hike has been effective. The rapidly rising home prices of 2022 have slowed down significantly, and homes are not flying off the market like they were a year ago. In fact, according to data from the National Association of Realtors, existing home sales were down 16.6% from last year in July—in other words, the market has sufficiently slowed down. 

The Fed is satisfied with its job, so we should expect interest rates to be cut soon. In fact, it’s widely expected the Fed will cut interest rates in 2024. 

Related: The Federal Reserve is Suddenly Doubling Its Forecast For Growth—But Will They Keep Hiking Rates?

Cutting interest rates will free up the market, boost the economy, and allow many people to sell and buy their homes more easily. But you should buy before this happens. 

It may seem contradictory to accept the current higher rates and buy, only to sit and watch the rates fall for everyone else as they jump into the market all at once. But that’s exactly what you must do to win big right now. 

We are on the back end of the interest rate trend, which is now on the clock. That means that interest rates probably won’t go up anymore, meaning prices will drop only slightly more between now and the end of the year. Once rates begin to be cut, demand will increase, and prices will immediately start to skyrocket again. By this time, it will be too late. 

Buy now while prices are low. You will be able to refinance as soon as the rates drop, and you will have locked up your assets for a lower price. After refinancing, watch as the market skyrockets again (more modestly this time) and sell when the time is right—instant profit. 

But how can we be so sure? First, you must look at the umbrella trends that will have a significant impact on the market behavior over the next 12 months. Understanding where we stand in the market today will help you maximize your success right now and position yourself for more success in the future. 

The Historic Effect of Election Years 

As we approach a presidential election year, history dictates we could see a bolstered economy that would favor the incumbent. It’s happened before in 1984 (Reagan), 1996 (Clinton), and 2012 (Obama). The Biden administration will want the economy to be in a good state as we approach November, and the housing market should be a big factor in this. 

Therefore, as we head into the election year of 2024, based on this historical evidence, anticipate the positive outcomes of lower interest rates, decreased construction expenses, and additional advantages. 

Keep an Eye on Seasonal Trends

Macro trends like election years, the economic outlook from the media, and the Fed’s decisions sometimes overshadow the local trends that can help you get more out of your assets as we approach 2024. 

The slow season is something to take note of in any market you look to invest in. For many markets, the slow season comes during the winter months. As summer ends, people nationwide begin to settle in for the new school year and the holidays, especially those living in states that experience harsh winters. The heavy snow and freezing temperatures are less enticing for people to move into a new home. 

Take advantage of this upcoming slow season by becoming more active as a buyer. Chances are you will get more attention from real estate agents because interest is low. Due to a lack of offers, you may even be able to get a better deal for the sake of the seller wanting to get the burden off of their hands. 

The Real Estate Cycle

Once you dominate the offseason, it’s important to note where you stand in the broader sense of things to position yourself for maximum success in the future. 

The real estate market is cyclical, and understanding the four major phases of the cycle is essential for recognizing the current state of the market. The four phases are: 

• Recovery

• Expansion

• Hyper-supply

• Recession 

We currently sit in an expansion phase. Despite what it may feel like right now, if you look at the symptoms of an expansion market, you can see why: 

• Active new construction: Check 

• Low vacancy rates: Check 

• Increased rents: Check 

• General optimism for the future: Eh 

• Rising prices: Check 

• Readily available financing: Check (if you’re willing to accept the rates) 

We’re at the end of the expansion phase now. Although you can still navigate the market with an expansive mindset, it would be better to begin positioning yourself for the next phase: hyper-supply.

You can expect a foreclosure wave as properties begin to make their way through the system after being backed up for two years because of pandemic-era protections expiring. Maximize cash on hand to utilize and dominate short sale opportunities before they go up for auction. This is where you can grab huge market share, which may be the start of your fortune as a real estate investor. 

The Bottom Line

The upcoming election, a bolstered economy boosted by interest rates dropping, and the end of a substantial expansion phase in real estate are setting us up for one of the biggest market share grabs in our lifetime.  

You have about four months to set up and acquire huge profit margins and get in on the market share in 2024. A seismic shift in the market is on the horizon. Getting ahead of the curve paves the way for success in the years to come.

This fall and winter, act quickly. Anticipate lower interest rates post-calendar flip to 2024 and secure assets at reduced prices that will soar when the Fed makes its move.

Don’t delay. Seize this opportunity before it moves again. Do you want to look back and wish you did, or be glad you took action? Reach out!

Adapted from www.biggerpockets.com

Building Our Guest House

August 14th, 2023

The Back Story, we purchased a property in Whitefish, MT on an idyllic 5 acres in May of 2022. The property was a one bedroom, complete fixer, with a detached garage. Here is the how and the why we converted our garage into a luxury two bedroom, 1 bath guest house.

Our garage was a 620 sq ft rectangle shell, initially we were going to make it a one bedroom space so it wouldn’t feel cramped but after turning to AirDNA for actual short term rental data for the area, we found for the 59937 zip code, the most sought after rental size was a 2 bedroom that could sleep a good amount of people. It was then we decided it had to be a two bedroom house.

After multiple revisions we had our layout nailed down (see below). We knew we needed to have full size bunkbeds, a sleeper sofa and an island that doubled as a dining table so that helped informed the layout. Since it will primarily be used as a short term rental, we forwent closets in the bedrooms, this allowed for more living space and a full size kitchen. The biggest hurdles were the utilities, which we ended up sticking in the attic, and a linen closet for our cleaning staff. The big advantage we had were our ten foot ceilings, high ceilings make any small space feel larger! Once we actually got furniture in the space things changed a little, but for the most part everything feels spacious enough and we have room to sleep 6!

From there we had to decide on our finishes (i.e. doors, windows, cabinets, flooring etc). A few factors played into our decision making process for this, we wanted it to match the main house aesthetically, so our cabinet and color palette was somewhat set from there. Being a design forward brand we wanted some standout details and luxury finishes and lastly we turned to AirDNA again to see how much we could charge for a luxury rental. As you can see below, the nightly rates dramatically increase for luxury rental properties in the area so we went for it!

The design features we were most excited about were the moody bedrooms with wood ceilings and our huge wood accent wall in the living room. We wanted to keep the living space bright and open but give it a little character. For a fresh, lived in feel we mixed new furniture with some vintage pieces. And of course we’ve always wanted a black house, so we went dark on the exterior too. Our goal someday is to reside the main house black as well!

If you’re interested in booking one of our Montana vacation homes follow us here!

The Numbers Behind Our Bungalow Addition

August 9th, 2023

The Back Story, we purchased a property in Whitefish, MT on an idyllic 5 acres in May of 2022. The property was a one bedroom, complete fixer, with a detached garage.

When we first started our home search in Montana one of our main criteria was that the property already had an accessory dwelling unit (i.e. a garage, a workshop, etc). We weren’t sure if or when we would utilize an additional living space but we wanted to keep our options open.

Enter october 2022, in true jason & Erin fashion, two months after we finished the main house renovations, we were planning for the garage conversion!

The main house of the property we bought in Montana was great but it was an 1,800 sq ft one bedroom home. We were able to convert a large walk-in closet into an additional bedroom but we still felt we would personally like more space. Our initial thoughts were, let’s spend $65,000-$85,000 to create an entire new rental unit (cheaper than buying a new property right!) and it will double as additional space for our enjoyment. Now our budget may have nearly doubled on the project (that’s a story for another time), but we couldn’t be happier with the outcome!

While we may have wanted more space, our decision making process in these types of situations usually comes down to the numbers. We turned to AirDNA to lean on actual short term rental data for the area and here is what we found for Whitefish, Montana:

Now AirDNA has many other features that allowed us to hone in on what attributes perform best in this market and that data helped inform some of our other decisions - like 2 bedrooms and luxury finishes. Using some basic math we crunched these profit numbers, keeping in mind there are lots of costs associated to operating a short term rental.

It will take some time to gain momentum on rental platforms and payback the investment we made to create this rental opportunity, but at the end of the day it will be a profitable investment for us!

If you’re interested in booking one of our Montana vacation homes follow us here!

BRRRR Method of Real Estate

June 5th, 2023

Buy, Rehab, Rent, Refinance, Repeat (BRRRR): Tips For Each Step

When practicing the BRRRR Method, it’s important to take the following steps in their exact order. Here are a few tips for following each step of the process.

Buy

The BRRRR Strategy relies on you purchasing a distressed property in need of updates and repairs, so it may be hard to get a traditional mortgage on the home. There are a few reasons for this. Most lenders require an appraisal on the property, but the value is difficult to assess on this type of property. Depending on the type of loan you get, the property may also need to pass specific guidelines to qualify. A distressed property will most likely not meet those requirements.

Before you rule out financing completely, talk to a lender to see if you do have any options. It may be possible to use a home equity line of credit (HELOC) or a hard money loan to finance the purchase, but these options can be high-risk and are often not recommended.

When buying a distressed property, it’s important to calculate the after-repair value (ARV). ARV is the estimated value of the home after you renovate or rehab the property. To determine ARV, you compare the planned final result of the home to similar homes, or comparables, that have recently sold in the area. These homes should be similar in size, number of bedrooms and bathrooms, age, type of build and condition.

When deciding how much to offer on the home, follow the 70% rule in real estate. Avoid investing more than 70% of the property’s ARV. For example, if a home’s ARV is $300,000, you shouldn’t pay more than $210,000 for the home.

Rehab

When you rehab a home, the first improvements you’ll need to make are any that will bring the home up to code and ensure it’s safe to live in. Next, you’ll want to identify the types of improvements that will truly increase value. These may include updating the kitchen and bathroom, improving the curb appeal and installing energy-efficient windows, appliances and other features.

Before you start your project, make sure you create a realistic budget and timeline for it.

Rent

It’s important to find renters before you refinance (the next step) because lenders generally won’t refinance until a property has tenants.

When it comes to choosing tenants, you’ll want to look for certain qualities:

• A good record of on-time payments

• A stable job with steady income

• A good credit report

• No criminal behavior or history of eviction

• Positive references

You can find this information by meeting with the potential tenant, having them fill out an application, reviewing their credit report, asking for references and performing a background check. Of course, you’ll want to make sure you get their consent and follow all housing laws.

When determining the rent, it’s important that it’s both fair to your renter and able to produce a positive cash flow for you. You can determine this by subtracting the total expenses to own the home from the total amount of monthly rent you’ll charge. Let’s say you charge $1,500 per month for rent and your mortgage payment is $800. Barring any other expenses, your cash flow is $700 per month. Look at rental rate comparables to help you find the right price.

Refinance

In the BRRRR method, you do a cash-out refinance on your investment property so you can use the money to purchase another distressed property to flip and rent out. To do this, you’ll need to find a lender that offers a cash-out refinance, and you’ll need to meet the qualifications of the loan.

While the lender may have its own set of requirements, you’ll need to meet a minimum credit score requirement (typically around 620 for a cash-out refinance), a maximum debt-to-income ratio (usually around 50% or less) and have equity in the home. You may also need to own the property for a certain amount of time before you can get a cash-out refinance.

Keep in mind that you’ll also need an appraisal – and there may be additional fees, including closing costs, that you’ll need to pay to do the loan.

Repeat

In the final step of the BRRRR Method, you’ll go back and repeat the previous steps, in the same order as before. If you want to continue to repeat these steps, it’s a good idea to take notes each time you go through the process so you can learn from past mistakes.

Ready to get your house hunt started? Reach out — We’re happy to help!

Adapted from www.RocketMortgage.com

Tips on HOW to Purchase an Investment Property

May 10th, 2023

Three of the most commonly used practices for investing in real estate. Each of these have their pros and cons and it’s always best to talk to a lender - credit unions are good place to start for HELCOs!

Ready to get your house hunt started? Reach out — We’re happy to help!

Buyers Have Accepted 6% Mortgage Rates as the New Normal

APRIL 24th, 2023

Compass CEO: “Homebuyers have accepted 6% mortgage rates as the new normal”

Robert Reffkin, Compass co-founder and CEO, joins ‘Squawk on the Street’ to discuss the data behind Compass’ quarterly earnings results, if there’s been movement in home prices, and more.

Bottom Line

There are more buyers than sellers giving clear opportunities for sellers this spring. If you’re wondering if it’s the right time to make a move, we’d love to connect!

Two Things Sellers Need To Know This Spring

March 9th, 2023

A lot has changed over the past year, and you might be wondering what’s in store for the spring housing market. If you’re planning to sell your house this season, here’s what real estate experts are saying you should keep in mind.

1. Houses That Are Priced Right Are Still Selling

Houses that are updated and priced at their current market value are still selling. Jeff Tucker, Senior Economist at Zillow, says:

“. . . sellers who price and market their home competitively shouldn’t have a problem finding a buyer.”

The need to price your house right is so important today because the market has changed so much over the past year. Danielle Hale, Chief Economist at realtor.com, explains:

“With a smaller pool of buyers today and more competition from other homes on the market, homesellers will likely need to adjust their price expectations in the market this spring.”

While this spring housing market is different than last year’s, sellers with proper expectations who lean on a real estate expert for the best advice on pricing their house well are still finding success. And that’s great news if you’re thinking about selling.

2. Buyers Are Still Out There

As mortgage rates have risen and remain volatile, some buyers have pressed pause on their plans. But there are still plenty of reasons people are buying homes today. Lisa Sturtevant, Chief Economist at Bright MLS, spells out the mindset of today’s buyers:

“For some buyers, higher mortgage rates simply means buying a home is out of the question unless home prices fall. For others, higher mortgage rates will be a hurdle but ultimately will not keep them from getting back into the market after sitting on the sidelines for months.”

That’s why, if you’re interested in selling your house this spring, it’s helpful to work with a real estate agent who can help connect you with those buyers who are ready to purchase a home.

Bottom Line

There are still clear opportunities for sellers this spring. If you’re wondering if it’s the right time to make a move, we’d love to connect!

*Adapted from www.keepingcurrentmatters.com

Building Wealth Through Real Estate - Considering Short Term Rentals?

March 9th, 2023

Short-term rentals can be a highly lucrative investment and a fun way to make money. Here are some things to consider before you hang up that “vacancy” sign.

1. Managing short term rentals is not exactly passive income. If you don’t have the time it takes to manage, property managers take 10%-15%.

2. Think beyond vacation rentals. Short term rentals don’t have to be on the beach or a ski slope - think about vicinity to hospitals, business hubs and other area attractions.

3. Do your due diligence when buying an investment property - assess the existing short-term rental market with tools like AirDNA.

4. Treat it like a business - know your ROI.

5. Work with an agent who knows the area. Buying the right property at the right price takes some experience.  Remember that the purchase of the property is the bigger investment than the rentals to follow.

Wondering which U.S. destinations are leading the pack in the short-term rental market? According to an analysis of Airbnb and Vrbo data, here are the markets with the highest potential profits:

- Maui, Hawaii - $375 average daily rate

- Kenai Peninsula, Alaska - $262 average daily rate

- Chattanooga, Tennessee - $180 average daily rate

- Gulfport/Biloxi, Mississippi - $196 average daily rate

- Slidell, Louisiana - $339 average daily rate

- Crystal River, Florida - $221 average daily rate

- Joshua Tree, California - $327 average daily rate

Wondering how to get started? Send us a DM — We’re happy to help!

ProSource Feature 2023

January 30th, 2023

We are honored to be included in the 2023 Edition of ProSource Possibilities Home Improvement Catalog. Our Olivenhain kitchen remodel project is featured above, more photos of that project can be found here! We source most of the materials we use in model projects from ProSource North in Vista. Ask for Doug! And if you’re not local you’re in luck, ProSource has store locations nationwide!

Building Wealth Through Real Estate - WHAT type of investment to buy?

January 25th, 2023

Now that you’re seriously thinking about building wealth through real estate it’s important to determine which type of investment is right for your needs. Sticking close to home will make management of the investment easier, however an out of area investment can also be beneficial. We were looking for a family vacation home that could double as a short term rental and write off for work which is why we decided on Montana.

Researching an area to determine the supply and demand for travel and tourism can be a helpful first step. Glacier National Park welcomes 3 million visitors each year and with minimal housing options, statistics told us it would be a good short term rental. Our next step was to confirm we were buying the right house, in the right area so we turned to AirDNA. AirDNA utilizes rankings, resources, tools, and reports to help pinpoint short term rental opportunities.

Our final thoughts, if you want to see the largest equity gains, looking for an investment property that needs some work has the potential to add $ to your bottomline! More on the later…

We’ll be sharing everything we’ve learned on our journey and when you’re ready to start building wealth through real estate we’re here to answer all of your questions!

8 Reasons Why Real Estate is the Best Investment

January 18th, 2023

We’re kicking off our Investment Series with WHY it is a good idea to build wealth through real estate. There are many different types of investments out there and a multitude of reasons for why people choose to build wealth through real estate. Jason and I have experience in long term investments with annual tenants, short term investment options like AirBnBs and flipping properties. We’ll be sharing everything we’ve learned along the way and when you’re ready to start building wealth through real estate we’re here to answer all of your questions!

A First Look at Our Montana Bungalow

January 16th, 2023

Happy Monday friends! Today we’re featuring the design plan for our Montana Shop Conversion. If you’re new here, we bought and renovated our first short term rental house in Montana last summer. This year we’re converting the 620 sq ft shop into a two bedroom, 1 bath bungalow! A few of the many goals of this project are to host more family, have an additional stream of income and increase property value.

As always, we needed a jumping off point! Needless to say, we are carrying over the moody mountain vibes you saw in our Montana Modern Cabin and adding a few hints of warmth. Because access and timing of materials is a big deal up in North Western Montana we’re using readily available building materials and sourcing vintage furniture pieces where we can!

We have a fun mix of texture happening - rugged concrete tile, smooth Alder doors, quartz soapstone counters, woven light fixtures and even a velvet bed!

We’re sticking with the same moody Railings by Farrow & Ball paint color for the bedroom and bathroom walls, complimented by warm wooden shiplap ceilings. In the common area were sticking to the lighter palette with White Dove by Benjamin Moore.

We’re opting for oversized tile floor throughout, vertical straight stacked tile in the shower and the same moody soapstone counters in the kitchen.

This time around we’re most excited about what the bungalow will have to offer that our main house didn’t, a fireplace, a spa and an undone exterior (which means new siding and windows)! More on all of those features to come! For links to everything you see on our mood board and more, click here!

For more real estate and design tips like these, subscribe to our blog below!

What Experts Are Saying About the 2023 Housing Market

January 9th, 2023

If you’re thinking about buying or selling a home soon, you probably want to know what you can expect from the housing market this year. In 2022, the market underwent a major shift as economic uncertainty and higher mortgage rates reduced buyer demand, slowed the pace of home sales, and moderated home prices. But what about 2023?

An article from HousingWire offers this perspective:

“The red-hot housing market of the past 2 ½ years was characterized by sub-three percent mortgage rates, fast-paced bidding wars and record-low inventory. But more recently, market conditions have done an about-face. . . . now is the opportunity for everyone to become re-educated about what a ‘typical’ housing market looks like.”

This year, experts agree we may see the return of greater stability and predictability in the housing market if inflation continues to ease and mortgage rates stabilize. Here’s what they have to say.

The 2023 forecast from the National Association of Realtors (NAR) says:

“While 2022 may be remembered as a year of housing volatility, 2023 likely will become a year of long-lost normalcy returning to the market, . . . mortgage rates are expected to stabilize while home sales and prices moderate after recent highs, . . .”

Danielle Hale, Chief Economist at realtor.com, adds:

“. . . buyers will not face the extreme competition that was commonplace over the past few years.”

Lawrence Yun, Chief Economist at NAR, explains home prices will vary by local area, but will net neutral nationwide as the market continues to adjust:

“After a big boom over the past two years, there will essentially be no change nationally . . . Half of the country may experience small price gains, while the other half may see slight price declines.”

Mark Fleming, Chief Economist at First American, says:

“The housing market, once adjusted to the new normal of higher mortgage rates, will benefit from continued strong demographic-driven demand relative to an overall, long-run shortage of supply.” 

Bottom Line

If you’re looking to buy or sell a home this year, the best way to ensure you’re up to date on the latest market insights is to partner with a trusted real estate advisor. We’re ready to serve your needs, reach out to learn more!

*Adapted from www.keepingcurrentmatters.com

A Window of Opportunity for Homebuyers

July 27th, 2022

Mortgage rates are much higher today than they were at the beginning of the year, and that’s had a clear impact on the housing market. As a result, the market is seeing a shift back toward the range of pre-pandemic levels for buyer demand and home sales.

But the transition back toward pre-pandemic levels isn’t a bad thing. In fact, the years leading up to the pandemic were some of the best the housing market has seen. That’s why, as the market undergoes this shift, it’s important to compare today not to the abnormal pandemic years, but to the most recent normal years to show how the current housing market is still strong.

Higher Mortgage Rates Are Moderating the Housing Market 

The ShowingTime Showing Index tracks the traffic of home showings according to agents and brokers. It’s also a good indication of buyer demand over time. Here’s a look at their data going back to 2017 (see graph below):

Here’s a breakdown of the story this data tells:

• The 2017 through early 2020 numbers (shown in gray) give a good baseline of pre-pandemic demand. The steady up and down trends seen in each of these years show typical seasonality in the market.

• The blue on the graph represents the pandemic years. The height of those blue bars indicates home showings skyrocketed during the pandemic.

• The most recent data (shown in green), indicates buyer demand is moderating back toward more pre-pandemic levels.

This shows that buyer demand is coming down from levels seen over the past two years, and the frenzy in real estate is easing because of higher mortgage rates. For you, that means buying your next home should be less challenging than it would’ve been during the pandemic because there is more inventory available.

Higher Mortgage Rates Slow the Once Frenzied Pace of Home Sales

As mortgage rates started to rise this year, other shifts began to occur too. One additional example is the slowing pace of home sales. Using data from the National Association of Realtors (NAR), here’s a look at existing home sales going all the way back to 2017. Much like the previous graph, a similar trend emerges (see graph below):

Again, the data paints a picture of the shift:

• The pre-pandemic years (shown in gray) establish a baseline of the number of existing home sales in more typical years.

• The pandemic years (shown in blue) exceeded the level of sales seen in previous years. That’s largely because low mortgage rates during that time spurred buyer demand and home sales to new heights.

• This year (shown in green), the market is feeling the impact of higher mortgage rates and that’s moderating buyer demand (and by extension home sales). That’s why the expectation for home sales this year is closer to what the market saw in 2018-2019.

Why Is All of This Good News for You?

Both of those factors have opened up a window of opportunity for homeowners looking to move and for buyers looking to purchase a home. As demand moderates and the pace of home sales slows, housing inventory is able to grow – and that gives you more options for your home search.

So don’t let the headlines about the market cooling or moderating scare you. The housing market is still strong; it’s just easing off from the unsustainable frenzy it saw during the height of the pandemic – and that’s a good thing. It opens up new opportunities for you to find a home that meets your needs.

Bottom Line

The housing market is undergoing a shift because of higher mortgage rates, but the market is still strong. If you’ve been looking to buy a home over the last couple of years and it felt impossible to do, now may be your opportunity. Buying a home right now isn’t easy, but there is more opportunity for those who are looking.

*Adapted from www.keepingcurrentmatters.com

What Does the Rest of the Year Hold for the Housing Market?

June 6th, 2022

If you’re thinking of buying or selling a house, you’re at an exciting decision point. And anytime you make a big decision like that, one thing you should always consider is timing. So, what does the rest of the year hold for the housing market? Here’s what experts have to say.

The Number of Homes Available for Sale Is Likely To Grow

There are early signs housing inventory is starting to grow and experts say that should continue in the months ahead. According to Danielle Hale, Chief Economist at realtor.com:

“The gap between this year’s homes for sale and last year’s is one-fifth the size that it was at the beginning of the year. The catch up is likely to continue, . . . This growth will mean more options for shoppers than they’ve had in a while, even though inventory continues to lag pre-pandemic normal.”

• As a buyer, having more options is welcome news. Just remember, housing supply is still low, so be ready to act fast and put in your best offer up front.

• As a seller, your house may soon face more competition when other sellers list their homes. But the good news is, if you’re also buying your next home, having more options to choose from should make that move-up process easier.

Mortgage Rates Will Likely Continue To Respond to Inflationary Pressures

Experts also agree inflation should continue to drive up mortgage rates, albeit more moderately. Odeta Kushi, Deputy Chief Economist at First American, says:

“… ongoing inflationary pressure remains likely to push mortgage rates even higher in the months to come.”  

• As a buyer, work with trusted real estate professionals, including your lender, so you can learn how rising mortgage rate environments impact your purchasing power. It may make sense to buy now before it costs more to do so, if you’re ready.

• As a seller, rising mortgage rates are motivating some homeowners to make a move up sooner rather than later. If you’re planning to buy your next home, talk to a trusted real estate advisor to decide how to time your move.

Home Prices Are Projected To Continue To Climb

Home prices are forecast to keep appreciating because there are still fewer homes for sale than there are buyers in the market. That said, experts agree the pace of that appreciation should moderate – but home prices won’t fall. Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), explains:

“Prices throughout the country have surged for the better part of two years, including in the first quarter of 2022. . . Given the extremely low inventory, we’re unlikely to see price declines, but appreciation should slow in the coming months.” 

• As a buyer, continued home price appreciation means it’ll cost you more to buy the longer you wait. But it also gives you peace of mind that, once you do buy a home, it will likely grow in value. That makes it historically a good investment and a strong hedge against inflation.

• As a seller, price appreciation is great news for the value of your home. Again, lean on a professional to strike the right balance of the best conditions possible for both selling your house and buying your next one.

Bottom Line

Whether you’re a homebuyer or seller, you need to know what’s happening in the housing market, so you can make the most informed decision possible. Connect us to discuss your goals and what lies ahead, so you can pick your best time to make a move.

*Adapted from www.keepingcurrentmatters.com

Why This Housing Market Is Not A Bubble Ready to Pop

April 25th, 2022

Homeownership has become a major element in achieving the American Dream. A recent report from the National Association of Realtors (NAR) finds that over 86% of buyers agree homeownership is still the American Dream.

Prior to the 1950s, less than half of the country owned their own home. However, after World War II, many returning veterans used the benefits afforded by the GI Bill to purchase a home. Since then, the percentage of homeowners throughout the country has increased to the current rate of 65.5%. That strong desire for homeownership has kept home values appreciating ever since. The graph below tracks home price appreciation since the end of World War II:

The graph shows the only time home values dropped significantly was during the housing boom and bust of 2006-2008. If you look at how prices spiked prior to 2006, it looks a bit like the current spike in prices over the past two years. That may lead some people to be concerned we’re about to see a similar fall in home values as we did when the bubble burst. To help alleviate those worries, let’s look at what happened last time and what’s happening today.

What Caused the Housing Crash 15 Years Ago?

Back in 2006, foreclosures flooded the market. That drove down home values dramatically. The two main reasons for the flood of foreclosures were:

1. Many purchasers were not truly qualified for the mortgage they obtained, which led to more homes turning into foreclosures.

2. A number of homeowners cashed in the equity on their homes. When prices dropped, they found themselves in an underwater situation (where the home was worth less than the mortgage on the house). Many of these homeowners walked away from their homes, leading to more foreclosures. This lowered neighboring home values even more.

This cycle continued for years.

Why Today’s Real Estate Market Is Different

Here are two reasons today’s market is nothing like the one we experienced 15 years ago.

1. Today, Demand for Homeownership Is Real (Not Artificially Generated)

Running up to 2006, banks were creating artificial demand by lowering lending standards and making it easy for just about anyone to qualify for a home loan or refinance their current home. Today, purchasers and those refinancing a home face much higher standards from mortgage companies.

Data from the Urban Institute shows the amount of risk banks were willing to take on then as compared to now.

There’s always risk when a bank loans money. However, leading up to the housing crash 15 years ago, lending institutions took on much greater risks in both the person and the mortgage product offered. That led to mass defaults, foreclosures, and falling prices.

Today, the demand for homeownership is real. It’s generated by a re-evaluation of the importance of home due to a worldwide pandemic. Additionally, lending standards are much stricter in the current lending environment. Purchasers can afford the mortgage they’re taking on, so there’s little concern about possible defaults.

And if you’re worried about the number of people still in forbearance, you should know there’s no risk of that causing an upheaval in the housing market today. There won’t be a flood of foreclosures.

2. People Are Not Using Their Homes as ATMs Like They Did in the Early 2000s

As mentioned above, when prices were rapidly escalating in the early 2000s, many thought it would never end. They started to borrow against the equity in their homes to finance new cars, boats, and vacations. When prices started to fall, many of these homeowners were underwater, leading some to abandon their homes. This increased the number of foreclosures.

Homeowners didn’t forget the lessons of the crash as prices skyrocketed over the last few years. Black Knight reports that tappable equity (the amount of equity available for homeowners to access before hitting a maximum 80% loan-to-value ratio, or LTV) has more than doubled compared to 2006 ($4.6 trillion to $9.9 trillion).

The latest Homeowner Equity Insights report from CoreLogic reveals that the average homeowner gained $55,300 in home equity over the past year alone. Odeta Kushi, Deputy Chief Economist at First American, reports:

“Homeowners in Q4 2021 had an average of $307,000 in equity – a historic high.”

ATTOM Data Services also reveals that 41.9% of all mortgaged homes have at least 50% equity. These homeowners will not face an underwater situation even if prices dip slightly. Today, homeowners are much more cautious.

Bottom Line

The major reason for the housing crash 15 years ago was a tsunami of foreclosures. With much stricter mortgage standards and a historic level of homeowner equity, the fear of massive foreclosures impacting today’s market is not realistic.

*Adapted from www.keepingcurrentmatters.com

A Key To Building Wealth Is Homeownership

March 28th, 2022

The link between financial security and homeownership is especially important today as inflation rises.  But many people may not realize just how much owning a home contributes to your overall net worth. As Leslie Rouda Smith, President of the National Association of Realtors (NAR), says:

“Homeownership is rewarding in so many ways and can serve as a vital component in achieving financial stability.”

Here are just a few reasons why, if you’re looking to increase your financial stability, homeownership is a worthwhile goal.

Owning a Home Is a Building Block for Financial Success

A recent NAR report details several homeownership trends and statistics, including the difference in net worth between homeowners and renters. It finds:

“. . . the net worth of a homeowner was about $300,000 while that of a renter’s was $8,000 in 2021.”

To put that into perspective, the average homeowner’s net worth is roughly 40 times that of a renter (see visual below):

The results from this report show that owning a home is a key piece to the puzzle when building your overall net worth.

Equity Gains Can Substantially Boost a Homeowner’s Net Worth

The net worth gap between owners and renters exists in large part because homeowners build equity. As a homeowner, your equity grows as your home appreciates in value and you make your mortgage payments each month.

In other words, when you own your home, you have the benefit of your mortgage payment acting as a contribution to a forced savings account. And when you sell, any equity you’ve built up comes back to you. As a renter, you’ll never see a return on the money you pay out in rent every month.

To sum it up, NAR says it simply:

“Homeownership has always been an important way to build wealth.”

Bottom Line

The gap between a homeowner’s net worth and a renter’s shows how truly foundational homeownership is to wealth-building. If you’re ready to start on your journey to homeownership, let’s talk today!

*Adapted from www.keepingcurrentmatters.com

Jugador Hill Exterior

February 7th, 2022

Our Jugador Hill home needed some serious vision everywhere you looked, including the exterior! When we purchased the home it felt like a fortress! Our vision was for a light & airy, welcoming exterior that started with removing the 6’ cinder block wall and security gate at the front door.

From there we dove into the hardscape and entrance. Two big ticket items we wanted to change from the beginning, the roof and driveway, ended up not being financially feasible so we took those into consideration in the design process. You could basically drive your car up to the front door and that needed to change! We settled for removing a panel and a half of concrete and created a new approach with oversized poured concrete pavers and a new front porch.

From there it was all about making the tan concrete and brown roof work with our new vision for the front. We chose oversized Arterra Golden White porcelain pavers for the large walkup/porch area that had a nice mix of warm and cool tones. The warmer tones tied in the existing driveway and the cooler tones opened the door for us to incorporate some softer blues, greens and grays with the landscaping! For a more modern feel, we chose an oversized 6“ minus stone in Fossil Gray to line the walkup and complimented it with a mix of evergreen shrubbery (because they don’t go dormant), blue green succulents and a few olive trees.

Meanwhile we honed in on the perfect warm white for our exterior paint, Benjamin Moore, White Dove! We decided to paint the entire house, including the trim, eves and garage doors in the same color. Our thin framed black windows complimented the white exterior and to tie in the roof, we decided to splurge on copper gutters for the front of the house.

The final touches included some new exterior lighting, we went timeless with these more traditional rectangle wall sconces. A new stained black front door brought some depth to the space and this Article Sofa is a nice spot to watch the kids shoot some hoops. Our finishing touch was the 2x6 Doug Fir modern accent fence we added, this brought an entire new dimension to the space and we love the way it turned out! Our favorite part about this transformation, being able to built and entire vision that we love around a driveway and roof we hated originally! Check out our finished product below!

4 Ways Homeowners Can Use Their Equity

November 23rd, 2021

Your equity is a powerful tool that can help you achieve your goals as a homeowner. And chances are, your equity grew substantially over the past year. According to the latest Equity Insights Report from CoreLogic, homeowners gained an average of $51,500 in equity over the past year.

If you’re looking for the best ways to use your growing equity, here are four options:

1. Use Your Equity To Buy a Home That Fits Your Needs

If you’re finding you no longer have the space you need, it might be time to move into a larger home. Or, it’s possible you have too much space and would like something smaller. No matter the situation, consider using your equity to power a move into a home that fits your changing lifestyle. Moving into a larger home can provide extra space for remote work or loved ones. Downsizing, on the other hand, may mean saving time and money by caring for a smaller home.

2. Move to the Location of Your Dreams

If the size of your home isn’t a challenge but your current location is, it could be time to relocate to a new area. Maybe you enjoy vacationing in the mountains, at the beach, or another area, and you’re dreaming of living there year-round. Or perhaps the distance between you and your loved ones is greater than you’d like, and you want to close the gap. No matter what, your home equity can fuel your move to the location where you really want to live.

3. Start a New Business

If you’re not ready to move into a new home, you can use your equity to invest in a new business venture. As the U.S. Small Business Administration Office of Advocacy says:

“There is an estimate of 31.7 million small business owners in the United States, many of them started their business with the equity they had in their home.”

While it’s not recommended that homeowners use their equity for unnecessary spending, leveraging your equity to start a business that you’re passionate about can potentially grow your nest egg further.

4. Fund an Education

Whether you have a loved one preparing to head off to college or you’re planning to go back to school yourself, the thought of paying for higher education can be daunting. In either situation, using a portion of your growing equity can help with those costs, so you can make an investment in someone’s future.

Bottom Line

Your equity can help you achieve your goals. If you’re unsure how much equity you have in your home, connect with us so you can start planning your next move!

*Adapted from www.keepingcurrentmatters.com

What Does the Future Hold for Home Prices?

October 19th, 2021

If you’re looking to buy or sell a house, chances are you’ve heard talk about today’s rising home prices. And while this increase in home values is great news for sellers, you may be wondering what the future holds. Will prices continue to rise with time, or should you expect them to fall?

To answer that question, let’s first understand a few terms you may be hearing right now.

• Appreciation is an increase in the value of an asset.

• Depreciation is a decrease in the value of an asset.

• Deceleration is when something happens at a slower pace.

It’s important to note home prices have increased, or appreciated, for 114 straight months. To find out if that trend may continue, look to the experts. Pulsenomics surveyed over 100 economists, investment strategists, and housing market analysts asking for their five-year projections. In terms of what lies ahead, experts say the market may see some slight deceleration, but not depreciation.

Here’s the forecast for the next few years:

As the graph above shows, prices are expected to continue to rise, just not at the same pace we’ve seen over the last year. Over 100 experts agree, there is no expectation for price depreciation. As the arrows indicate, each number is an increase, which means prices will rise each year.

Bill McBride, author of the blog Calculated Risk, also expects deceleration, but not depreciation:

“My sense is the Case-Shiller National annual growth rate of 19.7% is probably close to a peak, and that year-over-year price increases will slow later this year.”

A recent article from realtor.com indicates you should expect:

“. . . annual price increases will slow to a more normal level, . . .”

What Does This Deceleration Mean for You?

What experts are projecting for the years ahead is more in line with the historical norm for appreciation. According to data from Black Knight, the average annual appreciation from 1995-2020 is 4.1%. As you can see from the chart above, the expert forecasts are closer to that pace, which means you should see appreciation at a level that’s aligned with a more normal year.

If you’re a buyer, don’t expect a sudden or drastic drop in home prices – experts say it won’t happen. Instead, think about your homeownership goals and consider purchasing a home before prices rise further.

If you’re a seller, the continued home price appreciation is good news for the value of your house. Work with an agent to list your house for the right price based on market conditions.

Bottom Line

Experts expect price deceleration, not price depreciation over the coming years. Reach out discuss what’s happening in the housing market today, where things are headed, and what it means for you.

*Adapted from www.keepingcurrentmatters.com

 Is It Time To Move on to a New Home?

September 21st, 2021

If you’ve been in your home for longer than five years, you’re not alone. According to recent data from First American, homeowners are staying put much longer than historical averages (see graph below):

As the graph shows, before 2008, homeowners sold their houses after an average of just five years. Today, that number has more than doubled to over 10 years. The housing industry refers to this as your tenure.

To really explore tenure, it’s important to understand what drives people to make a move. An article from The Balance explores some of the primary reasons individuals choose to sell their houses. It says:

“People who move for home-related reasons might need a larger home or a house that better fits their needs, . . . Financial reasons for moving include wanting a nicer home, moving to a newer home to avoid making repairs on the old one, or cashing in on existing equity.”

If you’ve been in your home for longer than the norm, chances are you’re putting off addressing one, if not several, of the reasons other individuals choose to move. If this sounds like you, here are a few things to consider:

If your needs have changed, it may be time to re-evaluate your home.

As the past year has shown, our needs can change rapidly. That means the longer you’ve been in your home, the more likely it is your needs have evolved. The Balance notes several personal factors that could lead to your home no longer meeting your needs, including relationship and job changes.

For example, many workers recently found out they’ll be working remotely indefinitely. If that’s the case for you, you may need more space for a dedicated home office. Other homeowners choose to sell because the number of people living under their roof changes. Now more than ever, we’re spending more and more time at home. As you do, consider if your home really delivers on what you need moving forward.

It’s often financially beneficial to sell your house and move.

One of the biggest benefits of homeownership is the equity your home builds over time. If you’ve been in your house for several years, you may not realize how much equity you have. According to the latest Homeowner Equity Report from CoreLogic, homeowners gained an average of $33,400 in equity over the past year.

That equity, plus today’s low mortgage rates, can fuel a major upgrade when you sell your home and purchase a new one. Or, if you’re looking to downsize, your equity can help provide a larger down payment and lower your monthly payments over the life of your next loan. No matter what, there are significant financial benefits to selling in today’s market.

Bottom Line

If you’ve been in your home for 5-10 years or more, now might be the time to explore your options. Today’s low rates and your built-up equity could provide you with the opportunity to address your evolving needs. Reach out today if you feel it’s time to discuss selling.

*Adapted from www.keepingcurrentmatters.com

 Is Homeownership Still Considered Part of the American Dream?

March 31st, 2021

Since the birth of our nation, homeownership has always been considered a major piece of the American Dream. As Frederick Peters reports in Forbes:

“The idea of a place of one’s own drives the American story. We became a nation out of a desire to slip the bonds of Europe, which was still in many respects a collection of feudal societies. Old rich families, or the church, owned all the land and, with few exceptions, everyone else was a tenant. The magic of America lay not only in its sense of opportunity, but also in the belief that life could in every way be shaped by the individual. People traveled here not just for religious freedom, but because in America anything seemed possible.”

Additionally, a research paper released just prior to the shelter-in-place orders issued last year concludes:

“Homeownership is undeniably the cornerstone of the American Dream, and is inseparable from our national ethos that, through hard work, every American should have opportunities for prosperity and success. It is the stability and wealth creation that homeownership provides that represents the primary mechanism through which many American families are able to achieve upward socioeconomic mobility and greater opportunities for their children.”

Has the past year changed the American view on homeownership?

Definitely not. A survey of prospective homebuyers released by realtor.com last week reveals that becoming a homeowner is still the main reason this year’s first-time homebuyers want to purchase a home. When asked why they want to buy, three of the top four responses center on the financial benefits of owning a home. The top four reasons for buying are:

• 59% – “I want to be a homeowner”

• 33% – “I want to live in a space that I can invest in improving”

• 31% – “I need more space”

• 22% – “I want to build equity”

Millennials believe most strongly in homeownership.

The survey also reports that 62% of millennials say a desire to be a homeowner is the main reason they’re buying a home. This contradicts the thinking of some experts who had believed millennials were going to be the first “renter generation” in our nation’s history.

While reporting on the survey, George Ratiu, Senior Economist at realtor.com, said:

“Americans, even millennials who many thought would never buy, have a strong preference for homeownership for the same reasons many generations before them have — to invest in a place of their own and in their communities, and to build a solid financial foundation for themselves and their families.”

Odeta Kushi, Deputy Chief Economist for First American, also addresses millennial homeownership:

“Millennials have delayed marriage and having children in favor of investing in education, pushing marriage and family formation to their early-to-mid thirties, compared with previous generations, who primarily made these lifestyle choices in their twenties…Delayed lifestyle choices delay the desire for homeownership.”

Kushi goes on to explain:

“As more millennials get married and form families, millennials remain poised to transform the housing market. In fact, the housing market is already experiencing the earliest gusts of the tailwind.”

Bottom Line

As it always has been and very likely always will be, homeownership continues to be a major component in every generation’s pursuit of the American Dream. Ready to make homeownership a reality - we’d love to be of service!

*Adapted from www.keepingcurrentmatters.com

How Much Leverage Do Today’s House Sellers Have?

February 25th, 2021

The housing market has been scorching hot over the last twelve months. Buyers and their high demand have far outnumbered sellers and a short supply of houses. According to the latest Existing Home Sales Report from the National Association of Realtors (NAR), sales are up 23.7% from the same time last year while the inventory of homes available for sale is down 25.7%. There are 360,000 fewer single-family homes for sale today than there were at this time last year. This increase in demand coupled with such limited supply is leading to more bidding wars throughout the country.

Rose Quint, Assistant Vice President for Survey Research with the National Association of Home Builders (NAHB), recently reported:

“The number one reason long-time searchers haven’t made a home purchase is not because of their inability to find an affordably-priced home, but because they continue to get outbid by other offers.”

A survey in the NAHB report showed that 40% of buyers have been outbid for a home they wanted to purchase. This is more than twice the percentage in 2019, which was 19%.

What does this mean for sellers today?

It means sellers have tremendous leverage when negotiating with buyers.

In negotiations, leverage is the power that one side may have to influence the other side while moving closer to their negotiating position. A party’s leverage is based on its ability to award benefits or eliminate costs on the other side.

In today’s market, a buyer wants three things:

1. To buy a home

2. To buy now before prices continue to appreciate

3. To buy now and take advantage of historically low mortgage rates while they last

These three buyer needs give the homeowner tremendous leverage when selling their house. Most realize this leverage enables the seller to sell at a good price. However, there may be another need the seller has that can be satisfied by using this leverage.

Here’s an example:

Odeta Kushi, Deputy Chief Economist at First American, recently identified a situation in which many sellers are finding themselves today:

“As mortgage rates are expected to remain near 3%, millennials continue to form households and more existing homeowners tap their equity for the purchase of a better home…Many homeowners may want to upgrade, but do not for fear that they will be unable to find a home to buy.”

She then offers a possible solution:

“While the fear of not being able to find something to buy will not disappear in a limited supply environment, new housing supply can incentivize existing homeowners to move.”

There’s no doubt many sellers would love to build a new home to perfectly fit their changing wants and needs. However, most builders require that they sell their house first. If the seller sells their home, where would they live while their new home is being constructed?

Going back to the concept of leverage:

As mentioned, buyers have compelling reasons to purchase a home now, and many homeowners have challenges to address if they want to sell. Perhaps they can make a deal to satisfy each party’s needs. But how?

The seller may decide to sell their home to the buyer at today’s price, which will enable the purchaser to take advantage of current mortgage rates. In return, the buyer might lease the house back to the seller for a pre-determined length of time while the seller’s new home is being built. A true win-win negotiation.

Not every buyer will agree to such a deal – but you only need one.

That’s just one example of how a seller might be able to overcome a challenge because of the leverage they have in today’s market. Maybe you feel a need to make certain repairs before selling. Perhaps you need time to get permits or approvals for certain upgrades you made to the house. Whatever the challenge, you may be able to work it out.

Bottom Line

If you’re considering selling your house now but worry a huge obstacle stands in your way, contact us we’d love to be of service. Maybe with the leverage you currently have, you can negotiate a deal that will allow you to make the move of your dreams.

*Adpated from www.keepingcurrentmatters.com

2021 Real Estate Market Outlook

February 10th, 2021

The housing market was a shining star in 2020, fueling the economic turnaround throughout the country. As we look forward to 2021, can we expect real estate to continue showing such promise? Here’s what experts have to say about the year ahead.

Lawrence Yun, Chief Economist, National Association of Realtors (NAR)

“In 2021, I think rates will be similar or modestly higher, maybe 3%…So, mortgage rates will continue to be historically favorable.”

Danielle Hale, Chief Economist, realtor.com

“We expect sales to grow 7 percent and prices to rise another 5.7 percent on top of 2020’s already high levels.”

Mark Fleming, Chief Economist, First American

“Mortgage rates are expected to remain low for the foreseeable future and millennials will continue forming households, keeping demand robust, even if income growth moderates. Despite the best intentions of home builders to provide more housing supply, the big short in housing supply will continue into 2021 and likely keep house price appreciation flying high.”

Bottom line, whether you’re looking to buy or sell this year we would be happy to help you learn more about your options!

Studio McGee x Target Spring 2021 Collaboration

January 23rd, 2021

Studio McGee x Target Spring 2021 is here! Just a few of our faves you can shop here.
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Some tips for getting your hands on these goodies… They seem to be rolling out in phases, so mark your calendars for their release dates at midnight PST to shop, hit that notify me button if something is already sold out (add to cart + checkout the second you get that back in stock email) or be like us and just check back hourly to see if/when they release their patio furniture to masses online! ⁣

Our Go To White Paint Colors

January 23rd, 2021

What’s your favorite white paint? This is the #1 question we get asked. There are hundreds of white paint colors and it can be overwhelming to narrow one down. The first step is to determine whether a space needs a warm or cool white.

Once you have a few colors narrowed down we like to order samples from www.samplize.com so you can try the color on in multiple rooms during different times of day with one convenient peel-and-stick sample. Happy painting! 

 4 Reasons People Are Buying Homes in 2021

January 18th, 2021

According to many experts, the real estate market is expected to continue growing in 2021, and it’s largely driven by the lasting impact the pandemic is having on our lifestyles. As many of us spend extra time at home, we’re reevaluating what “home” means and what we may need in one going forward.

Here are 4 reasons people are reconsidering where they live and why they’re expecting to buy a home this year. 

1. Record-Low Mortgage Interest Rates

In 2020, the average interest rate for a 30-year fixed mortgage hit a record low 16 times, continuing to fall further below 3%. According to Freddie Mac, the average 30-year fixed interest rate today is 2.65%. Many wonder how low these rates will go and how long they’ll last. Len Keifer, Deputy Chief Economistfor Freddie Mac, advises:

“If you’ve found a home that fits your needs at a price you can afford, it might be better to act now rather than wait for future rate declines that may never come and a future that likely holds very tight inventory.”

This sense of urgency is driving many to buy this year.

2. Working from Home

Remote work is a new normal for many businesses, and it’s lasting longer than most expected. Many in the workforce today are discovering they don’t need to live close to the office anymore and they can get more for their money by moving a little further outside of the city limits. David Mele, President at Homes.com, says: 

“The surge in the work-from-home population has rewritten the playbook for many homebuying and rental decisions, from when and where to relocate, to what people are looking for in their next residence.”

The reality is, for some people, working remotely in their current home is challenging, especially when there may be other options available.

3. More Outdoor Space

Another new priority for homeowners is having more usable outdoor space. Being at home is driving those in some areas to seek less densely populated neighborhoods so they have more room to stretch their legs. In addition, those living in apartments and townhomes are often looking for extra square footage, both inside and out.

According to the State of Home Spending report by HomeAdvisor, of the households surveyed, almost half reported spending 27% more on outdoor living over the past year. This is a trend that’s expected to grow in 2021 and beyond.

4. Avoiding Renovations

It’s recently come to light that many homeowners would also rather buy a new home than go through the process of fixing up the one they have. According to the 2020 Profile of Home Buyers and Sellers report from the National Association of Realtors (NAR), 44% of homebuyers purchased a new home to “avoid renovations or problems with the plumbing or electricity.”

Depending on what needs to be addressed, today’s high buyer demand may make it possible to skip some renovations before selling. Many of these homeowners have prioritized buying over renovating for convenience and potential cost savings.

Bottom Line

It’s clear that homeownership needs are changing. As a result, Americans are expected to move in record numbers this year. If you’re trying to decide if now is the right time to buy a home, we’d be happy to help you discuss your options!

*Adapted from www.keepingcurrentmatters.com

Our 2021 To-Do List (check out the last one - ekkk!)

 January 13, 2021

Happy New Year friends! We may be a couple weeks into 2021 but let’s face it, we think we all needed a bit of a slower start after 2020! Jason and I have been dreaming up some big things for the new year and we wanted to share our list of projects we’re aiming to achieve. In no particular order here there are below:

2. The next item on our to-do list are small lingering projects from 2020. This includes finally installing hardwood floors throughout the house! We so excited for the transformation this will give our home but not looking forward to the install. As far as order of projects go, we usually tell our clients to at least get flooring and paint done before you move in to your home and well, we should have listened to our own advice - haha! We will have to move out and remove everything from our house for a week while the floors get installed which is why the flooring we purchased has been sitting in storage since September. This will happen soon though!

Another lingering project are the kids bathrooms. Their vanities are being built as we speak! The end result will hopefully evoke the same feeling you get from these inspiration photos below!

3. Another big ticket item that Jason and I hope to-do this year is purchase an investment property! Having owned multiple investment properties in his 20’s, Jason is well seasoned in this realm. We are not sure what exactly this will entail - whether it’s a flip here in Southern California, a vacation home out of state (in the mountains is my dream!) or a short/long term rental property outside of California - time will tell. We’re taking into consideration what makes the most financial and logistical sense and staying open to all opportunities!

5. Next on the list is sharing more lifestyle stuff with you all! A new component we’re excited to offer our community are tips for creating not just beautiful, functional spaces but also healthy & happy homes. Health & Wellness has been big journey for us over the last 10 years, we’ve learned a lot along the way and we want to share all of that knowledge with you! If you’ve been around for awhile you may have heard us talk about some of these topics so we’ll also be exploring new topics like technology, gut health, whole living etc… If there’s anything you’re interested in learning more about let us know!

7. And we’ve saved the most exciting to-do for last, we’ll be traveling for a project this year to… MONTANA! We are so excited to be partnering with Park Place Hospitality while they renovate a 32 room Inn in Columbia Falls, Montana! The property is located on the west entrance of Glacier National Park and about 30 minutes south east of revered White Fish, Montana. I can not wait to share the concept behind the hotel and how we’ll be dividing and conquering the design to completely transform this Super 8 hotel! Here’s a sneak peek of what we’re proposing for the space!

Now we still have a few other small to-dos for #jugadorhill that aren’t listed here, as well as some family goals, but we’re dying to know… which project are you most excited about for us and for you!

Xx,

December 15th, 2020

The Holidays Aren't Stopping Home Buyers This Year 

Black Friday and Cyber Monday are behind us, yet finding the perfect holiday gifts for friends and family is certainly still top of mind for many right now. This year, there’s another type of buyer that’s very active this holiday season – the homebuyer.

Each month, ShowingTime releases their Showing Index which tracks the average number of appointments received on active U.S. house listings. The most recent index notes:

“The Showing Index reported a 60.9 percent jump in nationwide showing traffic year over year in October, the sixth consecutive month to see an increase over last year.”

Here’s the breakdown of the latest activity by region of the country compared to this time last year:

• The Northeast increased by 65.5%

• The West increased by 64.7%

• The Midwest increased by 55.7%

• The South increased by 54.7%

Why is the traffic so active?

The health crisis definitely put homebuying plans on pause for many earlier this year. Buyers, however, are in the market and making moves well past the typical busy homebuying seasons of spring and summer.

One of the main reasons buyer traffic has continued to soar in the second half of 2020 is how dramatically mortgage rates have fallen. According to Freddie Mac, the average mortgage rate last December was 3.72%. Today, the rate is a full percentage point lower.

Bottom Line

There are first-time, move-up, and move-down buyers actively looking for the home of their dreams this winter. If you’re thinking of selling your house in 2021, you don’t need to wait until the spring to do it. Your potential buyer is very likely searching for a home in your neighborhood right now. Reach out we’d love to be of service to your family!

*Adapted from www.keepingcurrentmatters.com

November 10th, 2020

Homeownership Is a Key to Building Wealth

 For years, real estate has been considered the best investment you can make. A major reason for this is due to the net worth a household gains through homeownership. In fact, according to the 2019 Survey of Consumer Finance Data from the Federal Reserve, for the average homeowner:

“…a primary home accounts for 90% of the total wealth of a family in the U.S.”

How do homeowners gain wealth?

Most large purchases, like cars and appliances, depreciate in value as they age, so it’s understandable to question how owning a home can increase wealth over time. In a simple equation, the National Association of Realtors (NAR) explains how the combination of paying your mortgage and home price appreciation grow overall wealth:

Principal Payments + Price Appreciation Gains = Housing Wealth Gain

As home values increase and you make payments toward your home loan, you’ll gain wealth through equity. The same article from NAR also addresses how wealth gains tend to play out over time:

“Housing wealth accumulation takes time and is built up by paying off the mortgage debt and by price appreciation. And while home prices can fall, home prices tend to recover and go up over the longer term. As of September 2020, the median sales price of existing home sales was $311,800, a 35% gain since July 2006 when prices peaked at $230,000.”

Taking a look at how equity has grown for the typical homeowner, it’s clear to see how real estate is a sound long-term investment. NAR notes:

“Nationally, a person who purchased a typical home 30 years ago would have typically gained about $283,000 as of the second quarter of 2020.” (See graph below):

Bottom Line

Whether you’re a current homeowner planning to put your equity toward a new home or have hopes of buying your first home soon, homeownership will always be a great opportunity to build your net worth and overall wealth. Owning a home is truly an investment in your financial future.

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*Adapted from keeping current matters.com

October 23rd, 2020

Selling Your House Is the Right Move, Right Now 

Why selling your house right now is the right move:

• Demand from homebuyers has skyrocketed this year, which means today’s sellers are poised to win big. This ideal moment in time to sell your house won’t last forever, though.

• With more sellers coming to the market in the spring, waiting until next year means buyers will have more choices, so your home may not stand out from the crowd.

  If you’re interested in taking advantage of this seller’s market, reach out, we’d love to discuss why now may be the right time to make a move on your terms.

For more real estate and design tips like these, subscribe to our blog below!

*Information adapted from www.keepingcurrentmatters.com

September 30th, 2020

HOW WILL THE 2020 ELECTION AFFECT REAL ESTATE?

Whether we’re ready for it or not, the 2020 presidential election is right around the corner.

As if this year hasn’t brought enough uncertainty, an election could be causing your clients to question their buying and selling plans…again.

Rocky political environments can create instability in the stock market-causing consumer confidence to drop. But the real estate market isn’t rocky…it’s rock solid. And delaying plans could mean your clients missing out on once-in-a-lifetime affordability.

To get to the heart of this, it’s important to understand how the history of past presidential elections combined with today’s market factors might play out in real estate this time around.

Here’s what we know…

The Real Estate Market Might Slow Down-But Not for Long

Historically speaking, home sales typically slow down in the fall following the spring and summer rush. BTIG, a research and analysis company, looked at new home sales from 1963-2019 and noted an average decline of -9.8% in November compared to October.

In that same report, they noticed that this decline becomes slightly more exaggerated in presidential election years, dropping as much as -15% from October to November.

So, why the decline? BTIG attributes it mostly to do with buyers and sellers just becoming more cautious during that time.

They go on to explain, “This caution is temporary, and ultimately results in deferred sales, as the economy, jobs, interest rates and consumer confidence all have far more meaningful roles in the home purchase decision than a Presidential election result in the months that follow.”

Considering the current state of real estate across the country, we can anticipate that while a slow down may occur, its effects will only be temporary. Home sales have remained strong throughout the last couple of winters, and the competitive nature of today’s current market suggests this year should be no different.

The First Year After an Election is the Best for Real Estate

While presidential election years may cause consumer weariness, another study looked at how the housing market performs after too.

Meyers Research and Zonda, a leading real estate research firm, found additional data that the year following an election can be the best of the presidential term for home sales.

According to their findings:

“In fact, the year after a presidential election is the best of the four-year cycle. This suggests that demand for new housing is not lost because of election uncertainty, rather it gets pushed out to the following year as long as the economy stays on track.”

While this is definitely not your typical election year (understatement of the century), experts believe that once the election is over, we could see the real estate market perform even better in the months following.

It’s All About Consumer Confidence

The economy is tightly connected to politics, and real estate is tightly connected to the economy.

While many other parts of our economy have made a slow and steady recovery, the housing market’s rebound was miraculous, stunning even housing market experts.

“The housing recovery has been nothing short of remarkable. The expectation was that housing would be crushed. It was—for about two months—and then it came roaring back,” said Ali Wolf, Chief Economist for Meyers Research.

A big piece of this puzzle is consumer confidence. Low-mortgage rates have continued to drive once-in-a-lifetime affordability for homeowners, and buyers have been more concerned about missing out on the deal of the century than anything else.

Therefore, confidence in the real estate industry has remained relatively high, driving a record number of buyers into the market and put us in a position to potentially outperform last year’s sales.

Bottom Line

While our country’s overall economic state may be slowly but surely returning, the presidential election may cause consumers to watch and wait in the weeks to come.

However, as we saw with the pandemic, the reward of locking in record-low mortgage rates also may continue to outweigh any consumer caution and drive buyers and sellers to act.

Plus, low inventory and high buyer demand puts sellers in a very powerful position.

History suggests that a slowdown in the housing market is inevitable, but this is definitely not your typical presidential election and every real estate professional should keep a close eye on what’s happening.

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Adapted from www.keepingcurrentmattes.com

September 25th, 2020

What our economy and your favorite sneakers have in common…

Earlier this year, many economists and market analysts were predicting an apocalyptic financial downturn that would potentially rattle the U.S. economy for years to come. They immediately started to compare it to the Great Depression of a century ago. Six months later, the economy is still trying to stabilize, but it is evident that the country will not face the total devastation projected by some. As we continue to battle the pandemic, forecasts are now being revised upward. The Wall Street Journal (WSJ) just reported:

“The U.S. economy and labor market are recovering from the coronavirus-related downturn more quickly than previously expected, economists said in a monthly survey.

Business and academic economists polled by The Wall Street Journal expect gross domestic product to increase at an annualized rate of 23.9% in the third quarter. That is up sharply from an expectation of an 18.3% growth rate in the previous survey.”

What Shape Will the Recovery Take?

Economists have historically cast economic recoveries in the form of one of four letters – V, U, W, or L.

A V-shaped recovery is all about the speed of the recovery. This quick recovery is treated as the best-case scenario for any economy that enters a recession. NOTE: Economists are now also using a new term for this type of recovery called the “Nike Swoosh.” It is a form of the V-shape that may take several months to recover, thus resembling the Nike Swoosh logo.

A U-shaped recovery is when the economy experiences a sharp fall into a recession, like the V-shaped scenario. In this case, however, the economy remains depressed for a longer period of time, possibly several years, before growth starts to pick back up again.

A W-shaped recovery can look like an economy is undergoing a V-shaped recovery until it plunges into a second, often smaller, contraction before fully recovering to pre-recession levels.

An L-shaped recovery is seen as the worst-case scenario. Although the economy returns to growth, it is at a much lower base than pre-recession levels, which means it takes significantly longer to fully recover.

Many experts predicted that this would be a dreaded L-shaped recovery, like the 2008 recession that followed the housing market collapse. Fortunately, that does not seem to be the case.

The same WSJ survey mentioned above asked the economists which letter this recovery will most resemble. Here are the results:

What About the Unemployment Numbers?

It’s difficult to speak positively about a jobs report that shows millions of Americans are still out of work. However, when we compare it to many forecasts from earlier this year, the numbers are much better than most experts expected. There was talk of numbers that would rival the Great Depression when the nation suffered through four consecutive years of unemployment over 20%.

The first report after the 2020 shutdown did show a 14.7% unemployment rate, but much to the surprise of many analysts, the rate has decreased each of the last three months and is now in the single digits (8.4%).

Economist Jason Furman, Professor at Harvard University‘s John F. Kennedy School of Government and the Chair of the Council of Economic Advisers during the previous administration, recently put it into context:

“An unemployment rate of 8.4% is much lower than most anyone would have thought it a few months ago. It is still a bad recession but not a historically unprecedented event or one we need to go back to the Great Depression for comparison.”

The economists surveyed by the WSJ also forecasted unemployment rates going forward:

• 2021: 6.3%

• 2022: 5.2%

• 2023: 4.9%

The following table shows how the current employment situation compares to other major disruptions in our economy:

Bottom Line

The economic recovery still has a long way to go. So far, we are doing much better than most thought would be possible. If you have questions about your specific homeownership situation, reach out, we’d be happy to assist!

For more real estate and design tips like these, please subscribe to our blog below!

Adapted from www.keepingcurrentmaters.com

August 24th, 2020

The Top Reasons People Are Moving This Year

Today, Americans are moving for a variety of different reasons. The current health crisis has truly re-shaped our lifestyles and our needs. Spending extra time where we currently live is enabling many families to re-evaluate what homeownership means and what they find most important in a home.

According to Zillow:

“In 2020, homes went from the place people returned to after work, school, hitting the gym or vacationing, to the place where families do all of the above. For those who now spend the majority of their hours at home, there’s a growing wish list of what they’d change about their homes, if possible.” 

With a new perspective on homeownership, here are some of the top reasons people are reconsidering where they live and making moves this year.

1. Working from Home

Remote work is becoming the new norm in 2020, and it’s continuing on longer than most initially expected. Many in the workforce today are discovering they don’t need to live close to the office anymore, and they can get more for their money if they move a little further outside the city limits. Lawrence Yun, Chief Economist for the National Association of Realtors (NAR) notes:

“With the sizable shift in remote work, current homeowners are looking for larger homes and this will lead to a secondary level of demand even into 2021.”

If you’ve tried to convert your guest room or your dining room into a home office with minimal success, it may be time to find a larger home. The reality is, your current house may not be optimally designed for this kind of space, making remote work and continued productivity very challenging.

2. Virtual Schooling

With school about to restart this fall, many districts are beginning the new academic year online. Education Week is tracking the reopening plans of schools across the country, and as of August 21, 21 of the 25 largest school districts are choosing remote learning as their back-to-school instructional model, affecting over 4.5 million students.

With a need for a dedicated learning space, it may be time to find a larger home to provide your children with the same kind of quiet room to focus on their schoolwork, just like you likely need for your office work.

3. A Home Gym

Staying healthy and active is a top priority for many Americans. With various levels of concern around the safety of returning to health clubs across the country, dreams of space for a home gym are growing stronger. The Home Builders Association of Greater New Orleans explains:

“For many in quarantine, a significant decrease in activity is more than a vanity issue – it’s a mental health issue.”

Having room to maintain a healthy lifestyle at home – mentally and physically – may prompt you to consider a new place to live that includes space for at-home workouts.

4. Outdoor Space 

Especially for those living in an apartment or a small townhouse, this is a new priority for many as well. Zillow also notes the benefits of being able to use yard space throughout the year:

“People want more space in their next home, and one way to get it is by turning part of the backyard into a functional room, ‘an outdoor space for play as well as entertaining or cooking.’”

You may, however, not have the extra square footage today to have these designated areas – indoor or out.

Moving May Be Your Best Option

If you’re clamoring for extra space to accommodate your family’s changing needs, making a move may be your best bet, especially while you can take advantage of today’s low mortgage rates. Low rates are making homes more affordable than they have been in years. According to Black Knight:

“Buying power for those shopping for a home is up 10% year over year, with home buyers able to afford nearly $32,000 more home than they could have 1 year ago while keeping their monthly payment the same.”

It’s a great time to get more home for your money, just when you need the extra space.

Bottom Line 

People are moving for a variety of different reasons today, and many families’ needs have changed throughout the year. If you’ve been trying to decide if now is the time to buy a new home, reach out we’d love to help!

August 10th, 2020

How Remote Work Is Changing Homebuyer Needs

With more companies figuring out how to efficiently and effectively enable their employees to work remotely (and for longer than most of us initially expected), homeowners throughout the country are re-evaluating their needs. Do I still need to live close to my company’s office building? Do I need a larger home with more office space? Would making a move to the suburbs make more sense for my family? All of these questions are on the table for many Americans as we ride the wave of the current health crisis and consider evolving homeownership needs.

According to George Ratiu, Senior Economist for realtor.com:

“The ability to work remotely is expanding home shoppers’ geographic options and driving their motivation to buy, even if it means a longer commute, at least in the short term…Although it’s too early to tell what long-term impact the COVID-era of remote work will have on housing, it’s clear that the pandemic is shaping how people live and work under the same roof.” 

Working remotely is definitely changing how Americans spend their time at home, and also how they use their available square footage. Homeowners aren’t just looking for a room for a home office, either. The desire to have a home gym, an updated kitchen, and more space in general – indoor and outdoor – are all key factors motivating some buyers to change their home search parameters.

A recent realtor.com-HarrisX survey indicates:

“In a June poll of 2,000 potential home shoppers who indicated plans to make a purchase in the next year, 63% of those currently working from home stated their potential purchase was a result of their ability to work remotely, while nearly 40% [of] that number expected to purchase a home within four to six months and 13% said changes related to pandemic fueled their interest in buying a new home.

Clearly, Americans are thinking differently about homeownership today, and through a new lens. The National Association of Home Builders (NAHB) notes:

“New single-family home sales jumped in June, as housing demand was supported by low interest rates, a renewed consumer focus on the importance of housing, and rising demand in lower-density markets like suburbs and exurbs.”

Through these challenging times, you may have found your home becoming your office, your children’s classroom, your workout facility, and your family’s safe haven. This has quickly shifted what home truly means to many American families. More than ever, having a place to focus on professional productivity while many competing priorities (and distractions!) are knocking on your door is challenging homeowners to get creative, use space wisely, and ultimately find a place where all of these essential needs can realistically be met. In many cases, a new home is the best option.

In today’s real estate market, making a move while mortgage rates are hovering at historic lows may enable you to purchase more home for your money, just when you and your family need it most.

Bottom Line

If your personal and professional needs have changed and you’re ready to accommodate all of your family’s competing priorities, reach out! Making a move into a larger home may be exactly what you need to set your family up for optimal long-term success.

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July 7th, 2020

Why Home Staging Sells

What is Home Staging? Home staging is the art of preparing a home for sale. It aims to improve the flow of your home, to eliminate clutter, and to make your home appear bigger and brighter. And guess what, staged homes sell 73% faster and for 10% more on average.

The real estate market is competitive and sellers should always be looking for ways to gain an edge over the competition. 95% of buyers now begin their home searches online, having your home professional staged can be crucial toward that first step of attracting an interested buyer and a walk-through.

The good news, when you work with us you get home preparation, de-cluttering and staging FREE of charge! To learn more, contact us here.

Now you tell us… what feels more like home, the empty or staged photos below?

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July 3rd, 2020

A Historic Rebound for the Housing Market

Pending Home Sales increased by 44.3% in May, registering the highest month-over-month gain in the index since the National Association of Realtors (NAR) started tracking this metric in January 2001. So, what exactly are pending home sales, and why is this rebound so important?

According to NAR, the Pending Home Sales Index (PHS) is:

“A leading indicator of housing activity, measures housing contract activity, and is based on signed real estate contracts for existing single-family homes, condos, and co-ops. Because a home goes under contract a month or two before it is sold, the Pending Home Sales Index generally leads Existing-Home Sales by a month or two.”

In real estate, pending home sales is a key indicator in determining the strength of the housing market. As mentioned before, it measures how many existing homes went into contract in a specific month. When a buyer goes through the steps to purchase a home, the final one is the closing. On average, that happens about two months after the contract is signed, depending on how fast or slow the process takes in each state.

Why is this rebound important?

With the COVID-19 pandemic and a shutdown of the economy, we saw a steep two-month decline in the number of houses that went into contract. In May, however, that number increased dramatically (See graph below):

This jump means buyers are back in the market and purchasing homes right now. Lawrence Yun, Chief Economist at NAR mentioned:

“This has been a spectacular recovery for contract signings and goes to show the resiliency of American consumers and their evergreen desire for homeownership…This bounce back also speaks to how the housing sector could lead the way for a broader economic recovery.”

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*Adapted from www.keepingcurrentmatters.com

June 23rd, 2020

Real Estate Tops Best Investment Poll for 7th Year Running

Every year, Gallup conducts a survey of Americans to determine their choice for the best long-term investment. Respondents are asked to select real estate, stocks/mutual funds, gold, savings accounts/CDs, or bonds.

For the seventh year in a row, real estate has come out on top as the best long-term investment. Gallup explained:

“Real estate remains the most favored investment to Americans, as has been the case since 2013, when the housing market was on the rebound. More than a third of Americans have named real estate as the top investment since 2016.”

This year’s results indicated 35% of Americans chose real estate, followed by stocks at 21%. The full results covering the last decade are shown in the chart below:

Bottom Line

The belief of the American people in the stability of housing as a long-term investment remains strong, even through the many challenges our economy faces today.

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*Adapted from www.keepingcurrentmatters.com

June 8th, 2020

The Shocking News in the Unemployment Report 

Last Friday, the U.S. Bureau of Labor Statistics released their May Employment Situation Summary. Leading up to the release, most experts predicted the unemployment rate would jump up to approximately 20% from the 14.7% rate announced last month.

The experts were shocked.

The Wall Street Journal put it this way:

“The May U.S. jobless rate fell to 13.3% and employers added 2.5 million jobs, blowing Wall Street expectations out of the water: Economists had forecast a loss of 8.3 million jobs and a 19.5% unemployment rate.”

In addition, CNBC revealed:

“The May gain was by far the biggest one-month jobs surge in U.S. history since at least 1939.”

Here are some of the job gains by sector:

• Food Service and Bartenders – 1,400,000

• Construction – 464,000

• Education and Health Services – 424,000

• Retail – 368,000

• Other Services – 272,000

• Manufacturing – 225,000

• Professional Services – 127,000

There’s still a long way to go before the economy fully recovers, as 21 million Americans remain unemployed. That number is down, however, from 23 million just last month. And, of the 21 million in the current report, 73% feel their layoff is temporary. This aligns with a recent Federal Reserve Bankreport that showed employers felt 75% of the job losses are temporary layoffs and furloughs.

The Employment Situation Summary was definitely a pleasant surprise, and evidence that the country’s economic turnaround is underway. The data also offers a labor-market snapshot from mid-May, when the government conducted its monthly survey of households and businesses. Many states did not open for business until the second half of May. This bodes well for next month’s jobs report.

Bottom Line

We cannot rejoice over a report that reveals millions of American families are still without work. We can, however, feel relieved that we are headed in the right direction, and much more quickly than most anticipated.

Note: In its original report, the BLS explained that a misclassification error could have occurred over the last 3 months, starting in March of 2020. Readjusting for this error, the unemployment rate would actually show a drop from 19.7% in April to 16.3% in May. Nobody would say the original report of 13.3% unemployment was a good number, nor is the revised 16.3%. What is a positive move for our country and the economy is the significant drop in the rate from April to May, meaning more people are getting jobs than losing them. That’s the key takeaway.

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*Adapted from www.keepingcurrentmatters.com

May 27th, 2020

Why This Summer Is the 2020 Real Estate Season 

With stay-at-home orders starting to gradually lift throughout parts of the country, data indicates homebuyers are jumping back into the market. After many families put their plans on hold due to the COVID-19 pandemic, what we once called the busy spring real estate season is shifting into the summer. In 2020, summer is the new spring for real estate.

Joel Kan, Economist at The Mortgage Bankers Association (MBA) notes:

“Applications for home purchases continue to recover from April’s sizable drop and have now increased for five consecutive weeks…Government purchase applications, which include FHA, VA, and USDA loans, are now 5 percent higher than a year ago, which is an encouraging turnaround after the weakness seen over the past two months.”

Additionally, according to Google Trends, which scores search terms online, searches for real estate increased from 68 points the week of March 15th to 92 points last week. As we can see, more potential homebuyers are looking for homes virtually.

What’s the Opportunity for Buyers?

Another reason buyers are coming back to the market, even with forced unemployment and stay-at-home orders, is historically low mortgage rates. Sam Khater, Chief Economist at Freddie Mac indicates:

“For the fourth consecutive week, the 30-year fixed-rate mortgage has been below 3.30 percent, giving potential buyers a good reason to continue shopping even amid the pandemic…As states reopen, we’re seeing purchase demand improve remarkably fast, now essentially flat relative to a year ago.”

With mortgage rates at such low levels and states gradually beginning to reopen, there’s more incentive than ever to buy a home this summer.

What’s the Opportunity for Sellers?

Finding a home to buy, however, is still a challenge, as this spring sellers removed many listings from the market. Though more people are now putting their houses up for sale this month as compared to last month, current inventory is still well below last year’s level.

According to last week’s Weekly Economic and Housing Market Update from realtor.com:

“Weekly Housing Inventory showed continued tightening. New Listings declined 28% compared with a year ago, as sellers grappled with uncertainty and hesitated bringing homes to market. Total Listings dropped 20% YoY, a faster rate than in prior weeks, leaving very few homes available for sale. As Time on Market was 15 days slower YoY, asking prices moved up 1.5% YoY.”

If you’re thinking of selling your house this summer, now may be your best opportunity. With so few homes on the market for buyers to purchase, this season may be the time for your house to stand out from the crowd. Trusted real estate professionals can help you list safely and effectively, keeping your family’s needs top of mind. Buyers are looking, and your house may be at the top of their list.

Bottom Line

If you’re thinking of selling, many buyers may be eager to find a home just like yours. We would love to help you get your house in on the action this summer.

For more real estate and design updates like these, subscribe to our blog below!

*Adapted from www.keepingcurrentmatters.com

May 18th, 2020

#1 Financial Benefit of Homeownership: Family Wealth 

While growing up, we were taught by our parents and grandparents that owning a home is a financially savvy move. They explained how a mortgage is like a “forced savings plan.” When you pay rent, that money is lost forever. When you make a mortgage payment, much of that money accumulates as equity in the home. So, what exactly is equity?

The equity in your home is the amount of money you can sell it for minus what you still owe on the mortgage. Every month you make a mortgage payment, and every month a portion of what you pay reduces the amount you owe. That reduction of your mortgage every month increases your equity.

A recent study by CoreLogic explained that homeowners gained substantial equity over the last twelve months, and are essentially sitting on large sums of cash in their homes. In the study, Frank Nothaft, Chief Economist for CoreLogic explained:

“The CoreLogic Home Price Index recorded a quickening of home price gains during the fourth quarter of 2019, helping to boost home equity wealth. The average family with a mortgage had a $7,300 gain in home equity during the past year, and a total of $177,000 in home equity wealth.”

For most families, their home is their largest financial asset. This increase in equity drives the net worth, or family wealth, of the homeowner. Renters are not earning that benefit. Instead, they’re building the net worth of their landlord.

Bottom Line

Home price growth will moderate during the pandemic. But once a cure is available, most experts agree that home values will again begin to appreciate at levels similar to what we’ve seen over the last several years. In the long run, our family elders will be proven correct: owning a home is a savvy financial move.

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 *Adapted from www.keepingcurrentmatters.com

May 13th, 2020

DIY Shiplap Wall 

We love a good shiplap wall for the texture and subtle design it offers and have installed numerous to date. Below is a run down of what we’ve used, how we did it and some tricks we’ve learned along the way!

Our first shiplap experience was in 2016 with the fireplace of our San Julian home. It was our first big remodel and we had our contractor install two of the three accent walls in the house. Pictured below, we attached 7” baseboard siding to the original brick fireplace and installed a piece of black leathered granite around the opening. We went for a moody feel with Dunn Edwards Charcoal Smudge paint.

We loved it so much we had our contractor install the same horizontal material in our dining room. Here we painted it Dunn Edwards Cool December to match the surrounding walls.

Now it was our turn. Our master bedroom would be our first DIY shiplap wall. For this project we used 7” baseboard material (with no relief) and flipped it around backwards. We started at the bottom but in hindsight it may have been easier to start at the top, more on that in a minute. We used a table saw to trim the boards to length, two nickels (yes the cents) as spacers and a nail gun with 2” brad nails. In older homes the ceilings/walls can we extremely uneven but nothing that a little (or lot) of caulking can’t fix! Since we were going to reinstall the baseboard on top of the shiplap on the bottom it would have been easier to hide any imperfections in our cutting there and would recommend starting at the top next time.

Now when we say we DIY’ed this, it’s not from start to finish. We cheat and have our painter come in and fill and sand all of the nail holes, caulk the edges of the walls and spray on the paint for a nice smooth finish! The end result was moody and dramatic and just what the room needed!

Fast forward to our new #jugadorhill home and we’ve installed three of the five walls that we want to have shiplapped. Of course the designer in me couldn’t repeat what we did in our last house and we also wanted to make it easier on ourselves so this time we’re installing vertical shiplap with tongue and groove material (which costs a little more than using baseboard material).

Step 1: If you are laying the boards horizontal use a stud finder to pre mark the walls where the studs are and that is where your nails should hit. If you are laying the boards vertical we spaced nails out every 18'“ or so (you can just eyeball this). Also, be sure to be mindful of any plumbing that may be behind the walls you are nailing in to.

Step 2: Be sure to align the first board flush and level to wherever you are starting to ensure the rest of the wall is lined up. Use the level down the entire length of the board to ensure it’s continuously level all the way down. Really take your time here!

Step 3: Click in your second board and each board thereafter using the level the entire length of each board. Tip - we had to use a hammer to tap the level a smidge in some areas to help the shiplap tongue click in to the next groove fully.

Step 4: Once you come to an outlet do your best to mark the outline of the outlet (not the face plate) and use a jigsaw to cut it out. This can be tricky and we didn’t worry much about it because usually they are hiding behind furniture anyways. (Don’t forget to turn off electricity to the outlet, we’ve learned that the hard way a few times!)

Step 5: Depending on how your wall lays out you may need to use a saw to trim your last piece (if you’re laying horizontal, this is where ending at the bottom comes in handy).

Step 6: Caulk, fill and sand all of the nail holes and we always use a spray application for the paint so there is a nice smooth finish.

We are waiting until we finish installing all of the walls in the house then we will call in our painter. Can’t wait to show you the reveals! Until then here is our daughters room and I am obsessed with the subtle texture the wall adds to the space! For more details check out our Shiplap DIY IG highlight here.

For more real estate and design tips like these, subscribe to our blog below!

April 28th, 2020

THE MARKET IS HOLDING STRONG - WHY SELLER’S ARE IN THE DRIVER’S SEAT

With the release of the latest Economic Pulse Flash Survey from the National Association of Realtors(NAR), results show that people selling their houses today are holding strong on price. According to the most recent data, 74% of real estate agents noted that sellers are not dropping listing prices to attract more buyers.

Lawrence Yun, Chief Economist at NAR, noted: 

“The housing market faced an inventory shortage before the pandemic. Given that there are even fewer new listings during the pandemic, home sellers are taking a calm approach and appear unwilling to lower prices to attract buyers during the temporary disruptions to the economy.”

This inventory shortage, which spread widely throughout the housing market going into today’s economic slowdown, created an environment where there were not enough homes for sale for those who wanted to buy them. With that backdrop setting the stage, Yun also notes:

“With the current quarantine recommendations in place, fewer sellers are listing homes, which will limit buyer choices.” 

So, with buyer choices already limited going into this season, and more sellers removing listings today, if you’ve been thinking about listing your house, it’s a great time to do so. Many others in your neighborhood may be waiting to make a move or removing their listings, so staying on the market – or jumping into it – could work to your advantage.

Buyers today are serious ones, and with prices holding steady in this low-inventory market, you can feel confident about selling today. Embracing the process virtually, where available, could help your house hit the top of an eager buyer’s list. While your neighbors miss out on this opportunistic time, you don’t have to.

Bottom Line For Sellers…

Realize that, in some ways, you’re in the driver’s seat. When there is a shortage of an item at the same time there is a strong demand for that item, the seller of that item is in a good position to negotiate. Whether it is price, moving date, possible repairs, or anything else, you’ll be able to demand more from a potential purchaser at a time like this – especially if you have multiple interested buyers. Don’t be unreasonable, but understand you probably have the upper hand.

The housing market is forecasted to remain strong throughout 2020. And if buyer choices are limited in your neighborhood, selling now may help your listing rise to the top of the pool. As always, reach out if you’re interested in having a conversation about your specific real estate needs.

For more real estate and design tips like these, subscribe to our blog below!

*Adapted from www.keepingcurrentmatters.com.

April 27th, 2020

Will This Economic Crisis Have a V, U, or L-Shaped Recovery? 

Many American businesses have been put on hold as the country deals with the worst pandemic in over one hundred years. As the states are deciding on the best strategy to slowly and safely reopen, the big question is: how long will it take the economy to fully recover? 

Let’s look at the possibilities. Here are the three types of recoveries that follow most economic slowdowns (the definitions are from the financial glossary at Market Business News):

• V-shaped recovery: an economic period in which the economy experiences a sharp decline. However, it is also a brief period of decline. There is a clear bottom (called a trough by economists) which does not last long. Then there is a strong recovery.

• U-shaped recovery: when the decline is more gradual, i.e., less severe. The recovery that follows starts off moderately and then picks up speed. The recovery could last 12-24 months.

• L-shaped recovery: a steep economic decline followed by a long period with no growth. When an economy is in an L-shaped recovery, getting back to where it was before the decline will take years.

What type of recovery will we see this time?

No one can answer this question with one hundred percent certainty. However, most top financial services firms are calling for a V-shaped recovery. Goldman Sachs, Morgan Stanley, Wells Fargo Securities, and JP Morgan have all recently come out with projections that call for GDP to take a deep dive in the first half of the year but have a strong comeback in the second half.

Is there any research on recovery following a pandemic?

There have been two extensive studies done that look at how an economy has recovered from a pandemic in the past. Here are the conclusions they reached:

1. John Burns Consulting:

“Historical analysis showed us that pandemics are usually V-shaped (sharp recessions that recover quickly enough to provide little damage to home prices), and some very cutting-edge search engine analysis by our Information Management team showed the current slowdown is playing out similarly thus far.”

2. Harvard Business Review:

“It’s worth looking back at history to place the potential impact path of Covid-19 empirically. In fact, V-shapes monopolize the empirical landscape of prior shocks, including epidemics such as SARS, the 1968 H3N2 (“Hong Kong”) flu, 1958 H2N2 (“Asian”) flu, and 1918 Spanish flu.”

The research says we should experience a V-shaped recovery.

Does everyone agree it will be a ‘V’?

No. Some are concerned that, even when businesses are fully operational, the American public may be reluctant to jump right back in.

As Market Business News explains:

“In a typical V-shaped recovery, there is a huge shift in economic activity after the downturn and the trough. Growing consumer demand and spending drive the massive shift in economic activity.”

If consumer demand and spending do not come back as quickly as most expect it will, we may be heading for a U-shaped recovery.

In a message last Thursday, Chris Hyzy, Chief Investment Officer for Merrill and Bank of America Private Bank, agrees with other analysts who are expecting a resurgence in the economy later this year:

“We’re forecasting real economic growth of 30% for the U.S. in the 4th quarter of this year and 6.1% in 2021.”

His projection, however, calls for a U-shaped recovery based on concerns that consumers may not rush back in:

“After the steep plunge and bottoming out, a ‘U-shaped’ recovery should begin as consumer confidence slowly returns.”

Bottom Line

The research indicates the recovery will be V-shaped, and most analysts agree. However, no one knows for sure how quickly Americans will get back to “normal” life. We will have to wait and see as the situation unfolds.

For the latest in real estate and design please subscribe to our blog below.

*Adapted from www.keepingcurrentmatters.com

April 14th, 2020

What If I Need to Sell My Home Now? Here’s What You Can Do…

Every day that passes, people have a need to buy and sell homes. That doesn’t stop during the current pandemic. If you’ve had a major life change recently, whether with your job or your family situation, you may be in a position where you need to sell your home – and fast. While you probably feel like timing with the current pandemic isn’t on your side, making a move is still possible. Rest assured, with technology at your side and fewer sellers on the market in most areas, you can list your house and make it happen safely and effectively, especially when following the current COVID-19 guidelines set forth by the National Association of Realtors (NAR) and the Centers for Disease Control and Prevention (CDC).

You may have a new baby, a new employment situation, a parent who moved in with you, you just built a home that’s finally ready to move into, or some other major part of your life that has changed in recent weeks. Buyers have those needs too, so rest assured that someone is likely looking for a home just like yours.

According to the NAR Flash Survey: Economic Pulse taken April 5 – 6, real estate agents indicate, not surprisingly, that there’s a noticeable decline in current homebuyer interest. That said, 10% of agents said in the same survey that they saw no change or even an increase in buyer activity. So, while buyer interest is low compared to normal spring markets, there are still buyers in the market. Don’t forget, you only need one buyer – the right one for your home.

Here’s the other thing – people are spending a lot of time on the Internet right now, given the stay-at-home orders implemented across the country. Buyers are actively looking at homes for sale online. Some of them are reaching out to real estate professionals for virtual tours and getting ready to make offers too. Homes are being sold in many markets.

There Is Less Competition Right Now

The same survey indicates that 56% of NAR members said sellers are removing their homes from the market right now. This can definitely work in your favor. If other sellers are removing their listings, your home has a better chance of rising to the top of a buyer’s search list and being seen. Keep in mind, listings will pick up again soon, as 57% of the respondents note that sellers are only planning to delay the process by a couple of months. If you need to sell right now, don’t wait for the competition to get back into the market again.

This year, delayed listings from the typically busy spring season will push into the summer months, so more competition will be coming to the market as the pandemic passes. Getting ahead of that wave now might be your biggest opportunity.

We Can Help 

We’ve been working hard every single day under untraditional circumstances, utilizing technology to help both our buyers and sellers who need to continue with their plans. We’re using virtual tours to show homes currently on the market, staying connected with the buyers and sellers through video chats, and leveraging resources to complete transactions electronically. We’re making sure the families we support remain safe and can keep their real estate needs on track, especially as life is changing so rapidly.

Bottom Line

Homes are still being bought and sold in the midst of this pandemic. If you need to sell your house and would like to know the current status in your local market, please reach out to create a safe and effective plan that works for you and your family.

Adapted from Keeping Current Matters*

April 3rd, 2020

Target X Studio McGee

Happy Friday ya’ll! We’re combining our #DHCFridayFeature and #DHCMoodBoard this week to highlight the ultimate partnership launching tomorrow, Saturday, April 4th! To say we were excited when Studio McGee announced their partnership with Target would be an understatement! Shea McGee’s clean, timeless style is to die for and the fact that it will now be accessible at an affordable price point is just amazing! We love everything in the entire collection and we rounded up our ultimate favorites in three sections below - Accessories, Furniture and Textiles! Scroll, click and add to cart tomorrow!

Textiles

(click image to shop)

Furniture

(click image to shop)

Accessories

(click on image to shop)

March 30th, 2019

Don’t Let Frightening Headlines Scare You 

There’s a lot of anxiety right now regarding the coronavirus pandemic. The health situation must be addressed quickly, and many are concerned about the impact on the economy as well.

Amidst all this anxiety, anyone with a megaphone – from the mainstream media to a lone blogger – has realized that bad news sells. Unfortunately, we will continue to see a rash of horrifying headlines over the next few months. Let’s make sure we aren’t paralyzed by a headline before we get the full story.

When it comes to the health issue, you should look to the Centers for Disease Control and Prevention(CDC) or the World Health Organization (WHO) for the most reliable information.

Finding reliable resources with information on the economic impact of the virus is more difficult. For this reason, it’s important to shed some light on the situation. There are already alarmist headlines starting to appear. Here are two such examples surfacing this week.

1. Goldman Sachs Forecasts the Largest Drop in GDP in Almost 100 Years

It sounds like Armageddon. Though the headline is true, it doesn’t reflect the full essence of the Goldman Sachs forecast. The projection is actually that we’ll have a tough first half of the year, but the economy will bounce back nicely in the second half; GDP will be up 12% in the third quarter and up another 10% in the fourth.

This aligns with research from John Burns Consulting involving pandemics, the economy, and home values. They concluded:

“Historical analysis showed us that pandemics are usually V-shaped (sharp recessions that recover quickly enough to provide little damage to home prices), and some very cutting-edge search engine analysis by our Information Management team showed the current slowdown is playing out similarly thus far.”

The economy will suffer for the next few months, but then it will recover. That’s certainly not Armageddon.

2. Fed President Predicts 30% Unemployment!

That statement was made by James Bullard, President of the Federal Reserve Bank of St. Louis. What Bullard actually said was it “could” reach 30%. But let’s look at what else he said in the same Bloomberg News interview:

“This is a planned, organized partial shutdown of the U.S. economy in the second quarter,” Bullard said. “The overall goal is to keep everyone, households and businesses, whole” with government support.

According to Bloomberg, he also went on to say:

“I would see the third quarter as a transitional quarter” with the fourth quarter and first quarter next year as “quite robust” as Americans make up for lost spending. “Those quarters might be boom quarters,” he said.

Again, Bullard agrees we will have a tough first half and rebound quickly.

Bottom Line

There’s a lot of misinformation out there. If you want honest advice reach out, we’d love to have a real conversation with you.

Thank you Keeping Current Matters this sharing informative facts when we need them most! For more real estate and design tips like these be sure to subscribe to our blog below.

March 23rd, 2020

Mood Board Monday - #JugadorHill Dining Room

 Happy Monday friends! For this week’s #DHCMoodBoard we’re featuring the plan for our formal dining room. The goal of this space was to keep it light and airy so we could focus on the views right outside the room. We were also on a shoe string budget for this space so we’re sharing some tips on how to spend your money wisely!

As always, we needed a jumping off point, hence the inspiration photo above. From there it started with the light fixture. We wanted to stay true to the architecture of the space so we incorporated a fun, mid-century chandelier that really emphasized the vaulted ceilings in the space. The one we chose had just the right amount of understated style, airiness and price point was pocket friendly!

From there, the hunt for our dining room table began. This was a tough one because we needed a sizable black table that was simplistic and budget friendly. When we could not find what we were looking for within budget we landed on this CB2 dark brown table (comes in two sizes). It was a better than expected piece, but we will be staining it black to achieve the look we’re going for. Stay tuned for that DIY!

I have always wanted wishbone dining chairs. With kids I feel like the cleaning of crumbs in all the little woven cracks can be risky but because this isn’t our everyday dining space we went for these on Amazon! Our bar cart was from our previous house and the brass fit in nicely and I was finally able to hang a piece of my grandma’s art I had been carrying around for years!

Another main part of the room, and our splurge for the space, will be the sideboard that we have yet to buy. I have had my eye on this one from McGee & Co. At 80” in length and 33” tall, it is one of the largest sideboard’s I’ve come across and fits our space perfectly. I plan to stage it with some oversized art work and soft table lighting and it’ll double as the perfect serving area for holiday meals with family.

From there, we accessorized with unique glassware and mixed materials.

For more real estate and design tips like these, please subscribe to our blog below!

March 19th, 2020

Three Reasons Why This Is Not a Housing Crisis

In times of uncertainty, one of the best things we can do to ease our fears is to educate ourselves with research, facts, and data. Digging into past experiences by reviewing historical trends and understanding the peaks and valleys of what’s come before us is one of the many ways we can confidently evaluate any situation. With concerns of a global recession on everyone’s minds today, it’s important to take an objective look at what has transpired over the years and how the housing market has successfully weathered these storms.

1. The Market Today Is Vastly Different from 2008

We all remember 2008. This is not 2008. Today’s market conditions are far from the time when housing was a key factor that triggered a recession. From easy-to-access mortgages to skyrocketing home price appreciation, a surplus of inventory, excessive equity-tapping, and more – we’re not where we were 12 years ago. None of those factors are in play today. Rest assured, housing is not a catalyst that could spiral us back to that time or place.

According to Danielle Hale, Chief Economist at Realtor.com, if there is a recession:

“It will be different than the Great Recession. Things unraveled pretty quickly, and then the recovery was pretty slow. I would expect this to be milder. There’s no dysfunction in the banking system, we don’t have many households who are overleveraged with their mortgage payments and are potentially in trouble.”

In addition, the Goldman Sachs GDP Forecast released this week indicates that although there is no growth anticipated immediately, gains are forecasted heading into the second half of this year and getting even stronger in early 2021.

Both of these expert sources indicate this is a momentary event in time, not a collapse of the financial industry. It is a drop that will rebound quickly, a stark difference to the crash of 2008 that failed to get back to a sense of normal for almost four years. Although it poses plenty of near-term financial challenges, a potential recession this year is not a repeat of the long-term housing market crash we remember all too well.

2. A Recession Does Not Equal a Housing Crisis

Next, take a look at the past five recessions in U.S. history. Home values actually appreciated in three of them. It is true that they sank by almost 20% during the last recession, but as we’ve identified above, 2008 presented different circumstances. In the four previous recessions, home values depreciated only once (by less than 2%). In the other three, residential real estate values increased by 3.5%, 6.1%, and 6.6% (see below):

3. We Can Be Confident About What We Know 

Concerns about the global impact COVID-19 will have on the economy are real. And they’re scary, as the health and wellness of our friends, families, and loved ones are high on everyone’s emotional radar.

According to Bloomberg,

“Several economists made clear that the extent of the economic wreckage will depend on factors such as how long the virus lasts, whether governments will loosen fiscal policy enough and can markets avoid freezing up.”

That said, we can be confident that, while we don’t know the exact impact the virus will have on the housing market, we do know that housing isn’t the driver.

The reasons we move – marriage, children, job changes, retirement, etc. – are steadfast parts of life. As noted in a recent piece in the New York Times, “Everyone needs someplace to live.” That won’t change.

Bottom Line

Concerns about a recession are real, but housing isn’t the driver. If you have questions about what it means for your family’s homebuying or selling plans, reach out to us and we can help you discuss your needs.

For more real estate and design tips like these, subscribe to our blog below!

Information adapted from www.keepingcurrentmatters.com.

March 9th, 2020

Mood Board Monday - La Casa Family Room

This weeks #MoodBoardMonday is brought to you buy our La Casa remodel that just got underway! We’ll be transforming this 1970s ranch home into a clean and causal space for one lucky buyer. This home features vaulted ceilings + beams that set the stage for the light and bright feel we’re going for!

The home has existing warm wood flooring and beige vinyl windows that we are keeping and designed around so our first order of business was to find an inspiration photo (pictured above). We’ll be painting the walls Simply White and beams Natural Cream by Benjamin Moore which will evoke a similar airy feel.

From there we layered in neutrals and mixed in some textures with the seagrass coffee table and sideboard, concrete side table and brass light fixture and mirror. We’re excited to see how this project unfolds and hope that you’ll follow along with us over on #DHCtransformations.

For this mood board we turned to one of our favorite places to shop, Lulu and Georgia! For links on where to shop plus 10% off your purchase, click on each item pictured below!

For more real estate and design tips like these, be sure to subscribe to our blog below!

March 4th, 2020

Real Estate Is Soaring - In a Good Way

Unlike last year, the residential real estate market kicked off 2020 with a bang! In their latest Monthly Mortgage Monitor, Black Knight proclaimed:

“The housing market is heating entering 2020 and recent rate declines could continue that trend, a sharp contrast to the strong cooling that was seen at this same time last year.”

Zillow revealed they’re also seeing a robust beginning to the year. Jeff Tucker, Zillow Economist, said:

“Our first look at 2020 data suggests that we could see the most competitive home shopping season in years, as buyers are already competing over…homes for sale.”

Buying demand is very strong. The latest Showing Index from ShowingTime reported a 20.2% year-over-year increase in purchaser traffic across the country, the sixth consecutive month of nationwide growth, and the largest increase in the history of the index.

The even better news is that buyers are not just looking. The latest Existing Home Sales Report from the National Association of Realtors (NAR) showed that closed sales increased 9.6% from a year ago.

This increase in overall activity has caused Zelman & Associates to increase their projection for home price appreciation in 2020 from 3.7% to 4.7%.

Are we headed for another housing crash like we had last decade?

Whenever price appreciation begins to accelerate, the fear of the last housing boom and bust creeps into the minds of the American population. The pain felt during the last housing crash scarred us deeply, and understandably so. The crash led us into the Great Recession of 2008.

If we take a closer look, however, we can see the current situation is nothing like it was in the last decade. As an example, let’s look at price appreciation for the six years prior to the last boom (2006) and compare it to the last six years:

There’s a stark difference between these two periods of time. Normal appreciation is 3.6%, so while current appreciation is higher than the historic norm, it’s certainly not accelerating beyond control as it did leading up to the housing crash.

Today, the strength of the housing market is actually helping prevent a setback in the overall economy. In a recent post, Odeta Kushi, Deputy Chief Economist for First American explained:

“While the housing crisis is still fresh on the minds of many, and was the catalyst of the Great Recession, the U.S. housing market has weathered all other recessions since 1980. With the exception of the Great Recession, house price appreciation hardly skipped a beat and year-over-year existing-home sales growth barely declined in all the other previous recessions in the last 40 years…In 2020, we argue the housing market is more likely poised to help stave off recession than fall victim to it.”

Bottom Line

The year has started off very nicely for the residential housing market. If you’re thinking of buying or selling, we would be happy to meet with you to discuss your options.

For more real estate and design tips like these, subscribe to our blog below!

Adapted from www.keepingcurrentmatters.com

March 2nd, 2020

#MoodBoardMonday - Monochromatic Girls Room

We’re back with another Mood Board Monday! The thing about completely renovating and designing an entire house is… it can take some time (aka $$$), am I right?! Since we moved into our #jugadorhill home 4 months ago we’ve been busy furnishing it piece by piece and I’m happy to say, Ella’s room is almost done!

We had a little set back after building a closet that didn’t pan out as we had hoped, so we’ll be relocating it and Ella will be the only room in the house that is getting carpet! Additionally, we included bathroom finishes on this week’s mood board because her ensuite bathroom will be getting finished shortly as well. We always take the full picture into account when designing a space so it was crucial for the bedroom and bathroom to flow well.

Below you’ll find links to all of the pieces pictured above. Her Mid-century bed in Pebble set the tone for the room and, with a few tweaks, we were able to incorporate a vintage dresser we had. We love the contrasting soft curves of the pendant light & nightstands against her more square bed & dresser. The details really pull this space together… our sweet neighbor (and amazing florist) made these baby wreaths for above Ella’s bed and an equally creative mama makes these adorable wall-hanging rainbows.

Can’t wait for the final reveal!

Faucet | Tile | Rainbow | Chair | Pendant | Nightstand | Dresser | Bed | Rug

For more real estate and design tips like these, subscribe to our blog below!

February 28, 2020

#DHC Friday Feature - Where We SHOP!

For more real estate and design tips like these be sure to subscribe to our blog below! 

February 23, 2020

Sunday Shelfie

Sunday shelfie! If I’m being honest, shelves are not my favorite thing to style. They’re like a tetris puzzle that takes forever. For each shelf we style I take into consideration the palette, texture and scale of each piece. I like to mix in a few personal touches, like family photo or a keepsake. And balance, the biggest thing to keep in mind while styling shelves is bringing balance to each shelf in relation to the big picture. My number one tip - only use pieces that you adore! Shop some of my favorite shelf styling pieces below!

1 | 2 | 3 | 4 | 5 | 6 | 7

8 | 9 | 10 | 11 | 12 | 13

For more real estate and design tips like these, subscribe to our blog below.

February 17th, 2020

#MoodBoardMonday - Pottery Barn Master Bedroom

You all asked for it so here it is! A round up of some of our favorite Pottery Barn pieces, to elevate your master bedroom this spring! We’ve sprinkled in some everyday affordable pieces with some upscale ones for a timeless look. Read on for some of our top tips for creating a cohesive, unique space.

Our number one tip, don’t buy a bedroom set, mix and match pieces that work well together to give your space character. Mix textures. For example, in this design we use an upholstered linen bed, wood bedside tables and dresser and a woven seating option. Keep the larger, more expensive pieces neutral and mix in color and pattern with pillows and rugs that can be changed out as your style evolves. Accessorize your space to complete the feel you’re going for. We love the look of these stone table lamps and that double as soft lighting for any space.

SHOP THE STORY

Bed | Mirror | Lamp | Bedside Table | Stool

Bench | Dresser | Faux Olive Tree | Rug

Stayed tuned for more #MoodBoardMonday’s. For more real estate and design tips like these, be sure to subscribe to our blog below!

February 5th, 2020

2020 Home Buying Checklist

The new year is a time for new beginnings and, of course, resolutions. Are you ready to make the switch from renting to owning? Here are four things you'll need to consider if you're looking to become a homeowner in the new year.

1. Find your team. You don't want to navigate the homebuying process alone. The better prepared you are the better your experience will be, so consider hiring a trusted team of industry professionals to help you through the homebuying journey.

2. Get your finances in order. Before you start house hunting, you need to get a firm handle on your finances. That means making a budget to help determine if you are financially ready for homeownership.

3. Gather your documents. A lot of paperwork is involved in the buying process, so it's important to get organized as early as possible. Your lender will need both personal and financial documentation to determine your creditworthiness and eligibility for a loan. Being well-organized at the outset of the home buying process will limit mishaps down the road.

4. Understand the Responsibilities. The financial obligations of owning a home go beyond just saving for a down payment. As a homeowner, you will be responsible for:

   • Paying your mortgage on time. You made a financial commitment to your lender to pay your mortgage on time and in-full every month.

   • Home repairs and maintenance costs. You'll need to account for the time and money spent on routine home maintenance. Buying a home is a big investment—and that investment will need regular upkeep.

   • Other housing-related costs. These include homeowner association dues (if applicable), homeowners insurance, property taxes and life's unexpected emergencies.

As trusted professionals we would be happy to assist you and your friends + family in 2020 with your home buying needs. For more real estate and design tips like these, please be sure to subscribe to our blog below!

Information adapted from freddiemac.com

January 16th, 2020

Want a Fixer But Don’t Have the Cash to Fix Up?

203k Loans

So you want to buy a fixer-upper…

Buying a home that needs some TLC can be a good choice. Imperfect homes come with less competition from other buyers, and you can build tens of thousands of dollars in additional equity in a short time by making relatively minor improvements.

But there’s a reason not as many people want to buy a fixer. It does take more work, planning, and time compared to buying your standard “turn-key” home.

WHAT IS AN FHA 203K LOAN?

An FHA 203k loan, (sometimes called a Rehab Loan or FHA Construction loan) allows you to finance not one, but two major items 1) the house itself, and; 2) needed/wanted repairs. Because the lender tracks and verifies repairs, it is willing to approve a loan on a home it wouldn’t otherwise consider.

WHO IS ELIGIBLE?

FICO: FHA allows credit scores down to 580, although some lenders might require a score of 620-640 to qualify for a 203k. Still, that’s much lower than the 720+ you would probably need for a conventional construction loan.

Down Payment: FHA requires just a 3.5 percent down payment, based on the purchase price + total project cost. For instance:

• Home price $200,000

• Total project cost: $25,000

• Down payment: $7,875 (3.5 percent of $225,000)

You can receive 100 percent of your down payment requirement via a gift from family.

Debt Payments and Income: Lenders will examine your debt-to-income ratio. This is the comparison of your income and debt payments. Typically, less than 43 percent of your income should go toward your proposed house payment plus all other debts. That’s $430 in payments per $1,000 of before-tax income.

Loan amount: You can borrow up to 110 percent of the property’s proposed future value, or the home price plus repair costs, whichever is less.

Occupancy: You must plan to live in the property you are buying.

Citizenship: All FHA loans are available to U.S. citizens and lawful permanent residents.

Bottom line, there are loan options out there to suit each buyers individual needs. Interested in learning what you’re eligible for? Let us know and we’ll connect you with our preferred lenders.

For more real estate and design tips like these, be sure to subscribe to our blog below!

Adapted from www.themortgagereports.com.

January 6th, 2020

Happy New Year - SD Voyager Feature

Happy New Year friends! We’re excited to be starting off the new decade with a feature in the SD Voyager Magazine. We were asked to share our journey as part of their inspiring stories segment. We decided to take this opportunity and get real personal about our journey in hopes of inspiring others to follow their passions. Thank you for supporting us and loving on our family. NONE of this would be possible without YOU! Enjoy!

Today we’d like to introduce you to Erin Daniels.

Erin, before we jump into specific questions about the business, why don’t you give us some details about you and your story.

Hey there, I’m Erin Daniels, the creative behind Daniels Home Collective. I’m a born and raised Encinitas girl and now work, love and live in a little slice of heaven here in North County, Lake San Marcos! I met my husband (and east coast counterpart), Jason Daniels, 11 years ago and we’ve been dreaming big ever since!

The fun story behind DHC… Our growing family allowed us to move around A LOT (like five times) during our first five years of our marriage. Each new home offered a new remodel opportunity and five years later, what started as a passion for transforming our own homes turned into a successful real estate and design business!

Our love for all things real estate and design is no coincidence though, we both wanted to be architects when we were growing up! Jason’s knack for real estate was evident from a young age, after college, he started his first successful company selling residential real estate. Early in my career, I worked as a Land Use Planner and enjoyed being involved in all aspects of a community. I now help people transform their homes into beautiful, functional spaces that are simple, fresh and timeless.

After having our two kiddos, we were looking for a special place to raise our family and now call Lake San Marcos home!

We’re always bombarded by how great it is to pursue your passion, etc – but we’ve spoken with enough people to know that it’s not always easy. Overall, would you say things have been easy for you?

First of all, is any road ever smooth?! After the market crashed in 2008 I heavily encouraged my husband to get a “corporate job.” You know… The ones that have stability and benefits and set hours. And he did – for nine years – but he HATED it because he’s a dreamer and a believer and an entrepreneur at heart. So we always knew all roads would lead back to real estate, but the timing was never right. Now we had two kids, a mortgage and a steady paycheck. That is until everything changed…

They say to only take on one major life event per year to stay sane and our family lived through multiple within a matter of weeks. Suddenly faced with a career change for Jason, the sale of our current home and the purchase of another fixer, everything was on the line.

Probably contrary to what most sane people would do, we stayed the course and decided to be fully committed to building Daniels Home Collective. On the horizon was a move, a renovation, instability and uncertainty, but we were up for it because it was now or never to follow our passion and start living our dreams.

Three weeks later our daughter was diagnosed with Type One Diabetes and our whole world turned upside down for months. If at any point we thought about giving up, it was then, but we held on and rode the wave of fear and doubt over the next few months and we made it.

Life is all about the journey and we are firm believers in following our passions, working hard to accomplish things and knowing when to shift gears and deviate. Where there is a will there is always a way as they say.

Please tell us about your business.

We like to think we offer a refreshing approach to residential home buying, selling, designing, and remodeling. DHC is truly a full-service residential Real Estate & Design company that offers a wide range of services for home buyers, sellers and renovators. We specialize in North County, San Diego, and offer boutique communities that have a unique story to tell!

Buy: From targeting your ideal neighborhood to projecting your costs of improvement, DHC has the knowledge and vision to help you recognize the potential of your home.

Sell: From assistance on updating and staging to elevating your home’s exposure, DHC has the market knowledge and trade relationships to help you maximize your homes’ value.

Remodel: We leverage and manage our network of trusted tradesmen to ensure the best possible outcome for your home.

So, what’s next? Any big plans?

What we know for sure is that we’re just getting started! We’ll be renovating our #jugadorhill home for the next few years, working on growing our DHC presence and we’re always looking for ways to diversify in life. Balance has been a big focus for us this year. Family is our priority and being able to provide for them in ways that keep us present in their lives is what we’re after!

Link to full article here.

December 9, 2019

Why Who You Hire Matters

Our Fairway listing is officially under contract - in THREE days we might add! We were happy to aid our sellers with design and renovation assistance, home staging and house cleaning services. When you list with us you have access to our network of trusted tradesmen and services which helps you get the highest price in the shortest time possible. Our services:

• Home Repair

• Renovation

• Staging

• Design

• Landscape Services

• House Cleaning/Decluttering

We were able to aid our sellers in transforming the look and feel of their Fairway home to a light, bright and airy Modern Farmhouse feel. Check out the Before & After’s below! Interested in maximizing your homes potential? Reach out here for a free home valuation.

For more real estate and design tips like these, be sure to subscribe to our blog below!

November 25, 2019

7 Reasons to List Your Home This Holiday Season

Around this time each year, many homeowners decide to wait until after the holidays to list their houses. Similarly, others who already have their homes on the market remove their listings until the spring. Let’s unpack the top reasons why listing your house now or keeping it on the market this winter may be the best choice you can make.

Here are seven great reasons not to wait:

1. Relocation buyers are out there now. Many companies are still hiring throughout the holidays, and they need their new employees to start as soon as possible.

2. Purchasers who are looking for homes during the holidays are serious buyers and are ready to buy now.

3. You can restrict the showings on your home to days and times that are most convenient for you. You will remain in control.

4. Homes show better when decorated for the holidays.

5. There is minimal competition for you as a seller right now. Over the past few months we’ve seen the supply of homes for sale decreasing year-over-year, as shown in the graph below:

6. The desire to own a home doesn’t stop during the holidays. Buyers who were unable to find their dream homes during the busy spring and summer months are still searching, and your home may be the answer.

7. Late fall and early winter make up the “sweet spot” for sellers. The supply of listings increases substantially after the holidays. Also, in many parts of the country, new construction will continue to surge and reach new heights in 2020, which will lessen the demand for your house next year.

BOTTOM LINE 

It may make the most sense to list your home this holiday season. Reach out to a local real estate professional to determine if selling now is your best move.

For more real estate and design tips like these, be sure to subscribe to our blog below!

Information adapted from www.keepingcurrentmatters.com 

November 13, 2019

Buyer’s Demand is GROWING

Buyers are out in full force this fall, increasing the demand for home buying across the country.

According to the latest ShowingTime Showing Index,

“Home showing activity was up again nationwide with a 4.6 percent rise in traffic, as the traditionally slow fall season began with a marked boost in buyer interest.”

Buyers clearly have the right idea, as mortgage rates have dropped over a full percentage point since the fall of 2018. They’ve hovered in a historically low range since this summer, making the overall cost of homeownership significantly more attractive and affordable.

Bottom Line

If you’re thinking of waiting until spring to sell, think again! We would love to discuss listing your house now while buyer traffic is actively surging throughout the country.

For more real estate and design tips like these, be sure to subscribe to our blog below!

Information adapted from www.keepingcurrentmatters.com

October 11, 2019

#PABLO has Officially CLOSED!

Our #Pablo remodel has officially closed escrow so we thought we’d celebrate with a little trip down memory lane! We were lucky enough to work with an investor who realized the potential of this home and was willing to see our vision through! The home had been neglected for years so we revitalized every square inch of the space inside and out. The end result was a clean, transitional space that paid tribute to the home’s potential.

The largest transformation was relocating the kitchen to the existing dining room. Yes we had to enclose a wood burning fireplace, but we think the trade-off was worth it! The home now boasts a large gourmet kitchen with island seating for 6. Some of the finish details include, Quartz counter tops, Jeffery Court backsplash tile and Kitchen Aid appliances.

What was once a dark and enclosed living space was updated to a light and bright entertainment space with the removal of the old kitchen and the walls surrounding it. To help ground the space, we added a fireplace on the main wall. We updated the doors to a single panel shaker, painted the walls in Dunn Edwards, Cool December and installed luxury vinyl Coretec flooring in Noble Oak - which all added to light, bright and airy feel you encounter when you walk through the front door!

The bathrooms in the home had a nice layout. Simply updating the finishes and going from a single to a double sink in the master bathroom transformed the spaces. We installed 12x24 porcelain tile on the floors, white Quartz countertops and carried the same slate cabinetry from the kitchen into the bathrooms.

This was such a fun project for us to work and we’re so glad you all were able to follow along with us! If you missed the highlights you can find them here!

For more real estate and design tips like these, be sure to subscribe to our blog below!

October 7, 2019

Do You Really Need 20% DOWN to Buy? 

62% of Buyers Are Wrong About Down Payment Needs

According to the ‘2019 Home Buyer Report’, many first-time buyers still believe they need a 20% down payment to buy a home in today’s market:

“More than 6 in 10 (62%) Americans believe you must put at least 20% down in order to purchase a home.”

When potential homebuyers think they need a 20% down payment to enter the market, they also tend to think they’ll have to wait several years (in some markets) to come up with the necessary funds to buy their dream homes. The report continues to say,

“The truth: 32% of current U.S. homeowners put 5% or less down on their home, according to census data.” (as shown below):

The lack of knowledge about the home-buying process is unfortunately keeping many motivated buyers on the sidelines. If you are considering buying, we would love to help you navigate your home purchase.

For more real estate and design tips like these, be sure to subscribe to our blog below!

Information adapted from www.keepingcurrentmatters.com 

September 5, 2019

TRADING UP? 

What exactly is Trading Up? Trading up is when you use the equity you have built in your current home to help you finance a home that is bigger, in a better neighborhood, or has some other “step up” feature.

Why is this fall the time to sell and trade up?

1. Demand Is Strong

The latest Buyer Traffic Report from the National Association of Realtors (NAR) shows that buyer demand remains strong throughout the vast majority of the country. These buyers are ready, willing, and able to purchase…and are in the market right now. Bonus: More often than not, multiple buyers are competing with each other to buy the same home. Take advantage of the buyer activity currently in the market!

2. There Is Less Competition Now

Housing inventory is still under the 6-month supply that is needed for a normal market. This means that in the majority of the country, there are not enough homes for sale to satisfy the number of buyers.

Further, many homeowners were reluctant to list their homes over the last couple years, for fear that they would not find a home to move to. That is all changing now as more homes come to market at the higher end. The choices buyers have will continue to increase. Don’t wait until additional inventory comes to market before you decide to sell.

3. The Process Will Be Quicker

Today’s competitive environment has forced buyers to do all they can to stand out from the crowd, including getting pre-approved for their mortgage financing. This makes the entire selling process much faster and simpler.

4. There Will Never Be a Better Time to Move Up

If your next move will be into a premium or luxury home, now is the time to move up. There is currently ample inventory for sale at higher price ranges. This means if you’re planning on selling a starter or trade-up home and moving into your dream home, you’ll be able to do that in the luxury or premium market.

According to CoreLogic, prices are projected to appreciate by 5.2% over the next year. If you’re moving to a higher-priced home, it will wind up costing you more in raw dollars (both in down payment and mortgage) if you wait.

Bottom line: If you’re looking to trade up, now is the time and we’d love to help! For more real estate and design tips like these, be sure to subscribe to our blog below!

Information adapted from www.keepingcurrentmatters.com

September 2, 2019

REIMAGINING YOUR SPACE

Whether you’re house hunting for a new home or ready to reimagine your current space, there’s one step we always recommend before you get started, understanding the structure of your home. Load bearing walls and roof structure play an important role in design + budget and we always like to consult with a licensed contractor and draftsman prior to beginning any project.

For example, our #jugadorhill home had the square footage that we desired but the layout needed to be reworked. While in escrow we consulted with our contractor on a general scope of work + budget and decided to move forward with having plans drawn up.

The benefit of having plans drawn up gave us a better idea of what our overall project cost would be, which helped informed other spending decisions we were considering.

Pro tip: Hiring a draftsman vs. an architect will save you money.

For more real estate and design tips like these, be sure to subscribe to our blog below!

August 29, 2019

BEFORE YOU BUY…

Home buying can be a roller coaster of emotions - am I right!? In between all of the anxiety, excitement, let down and jubilation, make sure you set yourself up for success. When representing our home buyers we like to dig a little deeper, literally.

It’s important to know and understand the age of the home you’re looking to buy. For example, homes in the Lake were built in the 1960s which usually means slab plumbing and cast iron sewer pipes. So we always recommend hiring a company to scope the pipes while in escrow. Yes it may cost a little more upfront BUT checking for blockages, leaks and misalignments prior to the close of escrow can give you a piece of mind, and often times an opportunity to engage in a request for repairs.

Working with an experienced, trusted real estate professional will help you navigate the complexities of your home buying experience and we’d love to help!

For real estate and design tips like these, be sure to subscribe to our blog below!

August 26, 2019

MARKET MONDAY

Here’s what one expert has to say:

Freddie Mac

“The drop in mortgage rates continues to stimulate the real estate market and the economy. Home purchase demand is up five percent from a year ago and has noticeably strengthened since the early summer months…The benefit of lower mortgage rates is not only shoring up home sales, but also providing support to homeowner balance sheets via higher monthly cash flow and steadily rising home equity.”

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June 18, 2019

SAN JULIAN REMODEL

We’re so excited to share the before and after transformation of our San Julian remodel and what better place to start than the heart of the home! This 1969 one-story ranch-home needed some TLC and the first thing to go were the walls that enclosed the space. Our family spends 70% of our time in the kitchen so we knew we needed to enlarge it. To improve functionality we relocated the refrigerator, added a walk-in pantry and centered the space around an island. 

Before pics

The palette for the kitchen was light and airy so we forgoed upper cabinetry with the exception of two counter to ceiling, glass-faced cabinets to achieve this feel. Anchored by a charcoal grey island, we also used the oven nook as an opportunity to create a focal point. New cabinetry, new counter tops and backsplash, fresh paint and sleek Kitchen Aid appliances we all added to give this space a fresh update. 

Some of our favorite details were the Top Knobs pulls that gave the space an edgy feel, the custom wood beam that added a touch of warmth and the sleek island Agnes Pendant.

For more real estate and design tips like these, be sure to subscribe to our blog below!