So Things are slower this summer, but what does that mean? It doesn’t mean the sky is falling.
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2018
So, we can all agree that we are not yet at the top of the market, but we are getting closer. – Mike Meena, Augusta Financial
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Opening Gateways To Opportunity
So Things are slower this summer, but what does that mean? It doesn’t mean the sky is falling.
So, we can all agree that we are not yet at the top of the market, but we are getting closer. – Mike Meena, Augusta Financial
With home prices continuing to appreciate above historic levels, some are concerned that we may be heading for another housing ‘boom & bust.’ It is important to remember, however, that today’s market is quite different than the bubble market of twelve years ago.
There is no doubt that home prices have reached 2006 levels in many markets across the country. However, after more than a decade, home prices should be much higher based on inflation alone.
Last week, CoreLogic reported that,
“The inflation-adjusted U.S. median sale price in June 2006 was $247,110 (or $199,899 in 2006 dollars), compared with $213,400 in March 2018.” (This is the latest data available.)
Many are concerned that lending institutions are again easing standards to a level that helped create the last housing bubble. However, there is proof that today’s standards are nowhere near as lenient as they were leading up to the crash.
The Urban Institute‘s Housing Finance Policy Center issues a monthly index which,
“…measures the percentage of home purchase loans that are likely to default—that is, go unpaid for more than 90 days past their due date. A lower HCAI indicates that lenders are unwilling to tolerate defaults and are imposing tighter lending standards, making it harder to get a loan. A higher HCAI indicates that lenders are willing to tolerate defaults and are taking more risks, making it easier to get a loan.”
Their July Housing Credit Availability Index revealed:
“Significant space remains to safely expand the credit box. If the current default risk was doubled across all channels, risk would still be well within the pre-crisis standard of 12.5 percent from 2001 to 2003 for the whole mortgage market.”
A major cause of the housing crash last decade was the number of foreclosures that hit the market. They not only increased the supply of homes for sale but were also being sold at 20-50% discounts. Foreclosures helped drive down all home values.
Today, foreclosure numbers are lower than they were before the housing boom. Here are the number of consumers with new foreclosures according to the Federal Reserve’s most recent Household Debt and Credit Report:
Foreclosures today are less than 40% of what they were in 2003.
Contrary to many headlines, home affordability is better now than it was prior to the last housing boom. In the same article referenced in #1, CoreLogic revealed that in the vast majority of markets, “the inflation-adjusted, principal-and-interest mortgage payments that homebuyers have committed to this year remain much lower than their pre-crisis peaks.”
They went on to explain:
“The main reason the typical mortgage payment remains well below record levels in most of the country is that the average mortgage rate back in June 2006, when the U.S. typical mortgage payment peaked, was about 6.7 percent, compared with an average mortgage rate of about 4.4 percent in March 2018.”
The “price” of a home may be higher, but the “cost” is still below historic norms.
After using these four key housing metrics to compare today to last decade, we can see that the current market is not anything like that bubble market. Are we seeing a correction. Yes, but a bubble? Doesn’t appear to be one. Call our offices and speak with one of our Real Estate professionals to get the latest information. Call 661.220.5506 and get going with GATELY!
Across the United States, there is a severe mismatch between the low number of houses for sale and the high demand for those houses! First-time homebuyers are out in force and are being met with a highly competitive summer real estate market.
According to the National Association of Realtors (NAR), the inventory of homes for sale “has fallen year-over-year for 36 consecutive months,” and now stands at a 4.1-month supply. A 6-month supply of inventory is necessary for a balanced market and has not been seen since August of 2012.
NAR’s Chief Economist Lawrence Yun had this to say,
“Inventory coming onto the market during this year’s spring buying season – as evidenced again by last month’s weak reading – was not even close to being enough to satisfy demand.
That is why home prices keep outpacing incomes and listings are going under contract in less than a month – and much faster – in many parts of the country.”
According to the CoreLogic’s 2018 Consumer Housing Sentiment Study, four times as many renters are considering buying homes in the next 12 months than homeowners who are planning to sell, “which is the crux of the available housing-supply imbalance.”
As more and more renters realize the benefits of homeownership, the demand for housing will continue to rise.
Do homeowners realize demand is so high? With home prices rising across the country, homeowners gained over a trillion dollars in equity over the last 12 months, with the average homeowner gaining over $16,000!
The map below shows the breakdown by state:
Many homeowners who have not thought about listing their homes may not even realize how much equity they have gained, or the opportunity available to them in today’s market!
If you are one of the many homeowners across the country who hasn’t quite found their forever home, now may be a great time to list your house for sale and find your dream home! Call our of office 661.220.5506 and get going with GATELY!
In today’s market, with home prices rising and a lack of inventory, some homeowners may consider trying to sell their home on their own, known in the industry as a For Sale by Owner (FSBO). There are several reasons why this might not be a good idea for the vast majority of sellers.
Here are the top five reasons:
According to the 2017 Profile of Home Buyers and Sellers from NAR, last year 95% of buyers search online for a home. That is in comparison to only 15% looking at print newspaper ads. Most real estate agents have an internet strategy to promote the sale of your home. Do you?
Where did buyers find the home they actually purchased?
The days of selling your house by just putting up a sign and putting it in the paper are long gone. Having a strong internet strategy is crucial.
Here is a list of some of the people with whom you must be prepared to negotiate if you decide to For Sale by Owner:
The paperwork involved in selling and buying a home has increased dramatically as industry disclosures and regulations have become mandatory. This is one of the reasons that the percentage of people FSBOing has dropped from 19% to 8% over the last 20+ years.
Many homeowners believe that they will save the real estate commission by selling on their own. Realize that the main reason buyers look at FSBOs is because they also believe they can save the real estate agent’s commission. The seller and buyer can’t both save the commission.
A study by Collateral Analytics revealed that FSBOs don’t actually save anything, and in some cases, may be costing themselves more, by not listing with an agent. One of the main reasons for the price difference at the time of sale is:
“Properties listed with a broker that is a member of the local MLS will be listed online with all other participating broker websites, marketing the home to a much larger buyer population. And those MLS properties generally offer compensation to agents who represent buyers, incentivizing them to show and sell the property and again potentially enlarging the buyer pool.”
If more buyers see a home, the greater the chances are that there could be a bidding war for the property. The study showed that the difference in price between comparable homes of size and location is currently at an average of 6% this year.
Why would you choose to list on your own and manage the entire transaction when you can hire an agent and not have to pay anything more?
Before you decide to take on the challenges of selling your house on your own, sit with one of our professionals and see what they have to offer. Call 661.220.5506 and get going with GATELY!
According to the Realtors Confidence Index from the National Association of Realtors, 61% of first-time homebuyers purchased their homes with down payments below 6% in 2017.
Many potential homebuyers believe that a 20% down payment is necessary to buy a home and have disqualified themselves without even trying, but in March, 71% of first-time buyers and 54% of all buyers put less than 20% down.
Ralph McLaughlin, Chief Economist and Founder of Veritas Urbis Economics, recently shed light on why buyer demand has remained strong,
“The fact that we now have four consecutive quarters where owner households increased while renters households fell is a strong sign households are making the switch from renting to buying.
Households under 35 – which represent the largest potential pool of new homeowners in the U.S. – have shown some of the largest gains. While they only make up a third of all homebuyers, the steady uptick in their homeownership rate over the past year suggests their enormous purchasing power may be finally coming to [the] housing market.”
It’s no surprise that with rents rising, more and more first-time buyers are taking advantage of low-down-payment mortgage options to secure their monthly housing costs and finally attain their dream homes.
If you are one of the many first-time buyers unsure of whether or not they would qualify for a low-down payment mortgage, consult a local real estate professional who can set you on your path to homeownership!
Summer’s almost upon us. That means more ice cream, fewer snowball fights and, of course, the battle to keep your house cool as the heat bears down. As it turns out, you don’t have to build your own ice cave to keep cool until fall. There are plenty of easy changes you can put into action to get a lot more out of your air conditioning budget this year.
To really get to the heart of the matter, it’s important that you understand how an air conditioner works. This way, you can strategically plan ways to help it work better, rather than doing things that are counter to its function.
Room air is cooled by an air conditioning unit (or heat pump) in three basic steps:
1. The fan located inside your indoor air handler or furnace kicks on, sucking room air in through your cold air returns. The air passes through your filter, so make sure it’s clean!
2. The warm room air then moves over a set of coils that contain a refrigerant, which cools the indoor air and causes it to release water. The water drops into a pan and is removed via the condensation line. At the same time, the liquid refrigerant inside the coils absorbs the heat, changing into a warm vapor, which is then pushed outside to the condenser coil in your outdoor unit, where it releases the heat from your home.
3. Since the fan is still running on your air handler, cold air comes out the vents and more warm air is sucked across the evaporator coil (also known as the a-coil because of the inverted v shape). Meanwhile, the fan in the outdoor unit is cooling the refrigerant down until it turns back into a liquid and moves back into your home toward the evaporator coil where this whole cycle started.
It’s the cycle of life for refrigerant. That sounds more epic than it is, but hey, air conditioning is pretty great when it’s hot enough to cook an egg in your hammock.
Though your A/C unit is absolutely doing the best it can, it could probably do a lot better if you’d lend it a hand. As a homeowner, this benefits you in two ways: first, your house is cheaper to cool and secondly, not pushing your condenser unit as hard as it possibly can go can help prolong its life. Some of the things that can make a big impact should really be performed by a pro, but there are lots of little ways you can contribute to the health and happiness of your entire household. Try these out:
Start with the outside unit. Your condenser unit should always be free of weeds and debris, no matter what time of year it is, but it’s doubly important in the summer. The more garbage that’s plugging up the fins on the coil, the less air movement — and more effort required — for cooling the refrigerant down.
You can also help your unit by giving it a bath at least once a month. Just take a regular garden hose with a trigger sprayer and go all the way around the unit, spraying between the fins, until the water runs clear. Lots of dirt and sand could be hiding up in there, reducing your unit’s efficiency. A fin comb can also help straighten bent fins.
While you’re at it, make sure that unit has plenty of shade. Plant a tree, erect a sunshade, build a little roof over it (but allow at least two feet all around and on top for adequate air flow). The heat from the sun is yet another enemy of the refrigerant in the coil. Keep it as cool as you can with what you have to work with.
Take advantage of those ceiling fans. As the days get warmer, make it a point to set your ceiling fans to rotate in a counter-clockwise direction, pushing air down. You do double duty with this one. The proper rotation creates a chilling effect that allows the average homeowner to keep their thermostat as much as four degrees Fahrenheit higher than they would without the fans blowing. It also helps keep the cold air more evenly distributed, assuming you have ceiling fans in all or most of your rooms.
Cover the windows. Seriously. It doesn’t matter how good your windows are when the worst of the summer’s heat is beating down on them, there’s going to be a noticeable warming coming from that direction. This is when having heavy curtains, thick blinds or other heavy-duty window coverings comes in handy. During the part of the day when the sun hits your windows the hardest, cover them up to reduce heat radiating into your cool spaces. Another option for places where it stays hot a lot of the year is to add awnings over windows that are chronic sources of radiant heat.
Do hot stuff at night. Meaning your cooking, your drying, your extra hot baths — whatever produces heat that’s not really tied to any specific point in the day should be moved to the night shift. If you absolutely need to do these things during the day, keep the cooking limited to the small appliances, dry your laundry outside in the smouldering heat and maybe try a warmish shower. Remember, the more heat you add to the house, the more heat your air conditioner has to move out of your house. Don’t make it an unwinnable battle.
There are other improvements to your home that can help keep the heat out — they should be performed by a professional installer. Most of this takes place in the attic or on the roof, including installing radiant barriers to reflect the sun’s heat, attic fans that can push the super hot air out and suck in relatively cooler outside air and verifying that you have adequate attic ventilation and insulation.
Are you trying to sell your house this spring? Now’s a great time to fix odds and ends around the home. There are always a few things around the house that you can live with that buyers can’t and WON’T! And that could make your house harder to sell. Find out what the 10 worst offenders are now!
If there’s a switch, it should do something. There should be a working light bulb so that people can see it in action–and for goodness sake, the switch should not come with any warning labels! (See picture). Don’t leave any questions about the integrity of your electrical system and make sure all fixtures work properly and safely.
While you may know where to grab the basement handrail so it doesn’t wiggle, buyers won’t and inspectors will be sure to notice and list the item in the report. So walk through the house as if you are a buyer, note any items that need securing and fix them right away. (You might even enlist the help of a friend since it will likely be hard to find these things that you are so used to).
If there is an item in your home that requires a “magic touch” to properly operate, chances are it’s something that should be on your list of necessary repairs. People who walk through your home will expect every item to work the way it’s supposed to–without jiggling, banging, jerking, or secret combinations of lifting, turning and shoving. (This includes stuck windows and doors).
We get used to sinks or showers that don’t drain well, but this is a symptom of an issue. It’s time to remove the stopper, remove clogs, and if necessary, snake drains. Buyers will appreciate it, and you’ll probably realize how much nicer your bathroom functions (and wish you’d fixed the issue years ago).
Buyers don’t want to see any little brown spots, no matter how small or old the stains are. If you have water anywhere where it shouldn’t be, it’s time to take care of it and repair the damage it left behind.
Do you have low pressure in your shower or do you lose pressure if anyone else in your house so much as thinks about using another fixture? This may seem like a minor nuisance, but your buyers probably won’t think so. Start by checking for a clogged shower head or a shower shut-off valve that has been inadvertently knocked partially closed. If that doesn’t work, have a plumber evaluate the system to determine what and where the problems are.
The first thing buyers think when they smell a musty basement is water problems. So take an assessment of your basement: why does it smell musty? Do you need a dehumidifier? Do your walls need to be sealed? Is a basement professional necessary for water penetration issues? It’s better to address this now, rather than later. A musty smell is something that could instantly turn-off potential buyers.
It’s a great idea to make sure that your fireplace is in tip-top shape when you are selling. Fireplaces are features that draw buyers, but they can also bring worry if there is any uncertainty about its condition, especially for a buyer who has never had one before. If it’s functional and recently serviced or clean, that’s one less thing the buyer has to worry about–and just think how nice winter showings can be with the fireplace going in the background.
Can you say tripping hazard? Now can you say it five times fast while a stranger walks up your path for the first time with a baby in her arms? Are you wincing? Anyone visiting your house should be able to safely navigate your walkways without risking bodily harm. So if that’s not the case at your place, fix it, and fix it fast–you’re about to have a lot of foot traffic!
One thing MANY of us get used to over the years is our quirky toilets. I’m sure all of us have been to someone’s home and witnessed first-hand a toilet that doesn’t operate as expected–or you are laughing to yourself right now because you have one of these trick toilets. Toilets are a great invention, but they’re also pretty simple–one of the easiest items around the home to fix.
So address any issues right away so they don’t end up being another question on the mind of a buyer.
And when you’re ready to sell your home call 661.220.5506 and get going with GATELY!
Whether you’re motivated by financial benefits or lifestyle perks, moving to a smaller space can be a smart idea with lasting benefits. Ready to start this daunting but exciting task? Here are some tips to help you seamlessly and successfully downsize your home:
Start early. While it’s not always possible, you’ll fare better if you give yourself ample time to make the transition. Plan to allow at least three months to downsize; that’s long enough to sort through your possessions and manage all the details of a move..
Take inventory. It’s not easy, but giving all your belongings an honest assessment will ensure that you only keep items that really matter. Ask yourself: If your possessions were lost in a fire, what would you actually replace? Outlived items tend to get stored in the basement, attic or garage, so it’s wise to start the decluttering process there.
Make a plan. As you sort, begin grouping items that don’t make the cut: Will they go to family, friends or charities? Another option is to sell them online or at a consignment shop. Before you bring the “keepers” to your new space, make a simple floor plan with measurements and assign each item a spot to make sure everything fits.
Live creatively. You’ll live large in your new small space if you follow some basic decorating and storage tips:
Downsizing is going to be a big change, but a good attitude and some careful planning can help make sure your new space is a good fit.
Thinking about downsizing? Give our office a call 661.220.5506 and get going with GATELY!
When it comes to buying a home, whether it is your first time or your fifth, it is always important to know all the facts. With the large number of mortgage programs available that allow buyers to purchase homes with down payments below 20%, you can never have too much information about Private Mortgage Insurance (PMI).
Freddie Mac defines PMI as:
“An insurance policy that protects the lender if you are unable to pay your mortgage. It’s a monthly fee, rolled into your mortgage payment, that is required for all conforming, conventional loans that have down payments less than 20%.
Once you’ve built equity of 20% in your home, you can cancel your PMI and remove that expense from your mortgage payment.”
As the borrower, you pay the monthly premiums for the insurance policy, and the lender is the beneficiary. Freddie Mac goes on to explain that:
“The cost of PMI varies based on your loan-to-value ratio – the amount you owe on your mortgage compared to its value – and credit score, but you can expect to pay between $30 and $70 per month for every $100,000 borrowed.”
According to the National Association of Realtors, the average down payment for all buyers last year was 10%. For first-time buyers, that number dropped to 5%, while repeat buyers put down 14% (no doubt aided by the sale of their homes). This just goes to show that for a large number of buyers last year, PMI did not stop them from buying their dream homes.
Here’s an example of the cost of a mortgage on a $200,000 home with a 5% down payment & PMI, compared to a 20% down payment without PMI:
The larger the down payment you can make, the lower your monthly housing cost will be, but Freddie Mac urges you to remember:
“It’s no doubt an added cost, but it’s enabling you to buy now and begin building equity versus waiting 5 to 10 years to build enough savings for a 20% down payment.”
If you have questions about whether you should buy now or wait until you’ve saved a larger down payment, call our office and speak with one of our trusted professionals who can explain your market’s conditions and help you make the best decision for you and your family. Call 661.220.5506 and get going with GATELY!
Home office are one of the most in-demand home features today and continue to rise in popularity as more and more people work from home (or bring their work home!). A new report from Upwork found that nearly two-thirds of companies today have remote workers, and, according to Forbes, more and more Americans are quitting their day jobs to start their own businesses.
But creating a home office that functions well takes more than simply dragging an old desk out of the garage and pulling up a dining chair. The right elements can help you work better and more efficiently.
You don’t always have the option of choosing the location for your home office; your place may already have a dedicated space. But if you are choosing between a few locations, consider this: “You’ll likely spend many hours in your home office, so don’t stiff yourself on space (e.g. squishing a tiny desk into a windowless closet to preserve the rarely-used guest room),” said HGTV. “Also consider traffic flow and your ability to withstand distractions. Do you work best in the thick of activity, or should your office be tucked away in a quiet space? If clients will be stopping by, a private space with ample seating is a must.”
Even if you’re a “keep the door open” type, having one you can close when you need to mega-concentrate or take a phone call is key to creating a functional home office. If your home doesn’t have a dedicated office space and there isn’t a bedroom you can convert, a dining room may be your best bet. Many families today don’t use their dining room, especially if they have a breakfast nook and/or an island with eating bar. Adding glass doors to the room will give you privacy without visually closing off the space.
When you’re sitting for hours a day, you want to be comfortable. A supportive chair is worth the expense to ensure you’re not fidgety and distracted, and that you don’t end up with a back injury. “Don’t underestimate the power of a good chair,” said Forbes. “The right support, while working, can help you prevent postural problems, like back pain, later on. If you want to be trendy, you can try to use a stability ball, or if you’re interested in avoiding the problems with sitting in general, you can invest in a standing desk. In any case, you need a comfortable, healthy way to work.”
You probably don’t want to paint your home office a color that clashes with the rest of your decor, especially if it’s visible from other parts of the house. But expressing some individuality in the space can help fuel creativity and productivity. “Colors and moods are interconnected, and the psychological impact of color should be considered when interior designers work with home owners to select a color palette,” said Harrington College of Design. “When chosen with care, paint colors can enhance the atmosphere of every room in the house. Blue is a great color choice for a home office or study because it creates a soothing, relaxed and comfortable setting. Blue also helps maintain concentration, lowers your heart rate and boosts productivity.”
Remember you can use vertical space to make up for a lack square footage and give you more storage options.
Sure, your home office is a professional place where important stuff gets done. But don’t forget to put a little “you” into it. Studies show that we work better when surrounded by things that make us happy. “Incorporate elements you love into the design,” said Glassdoor. “Most corporate offices don’t allow you to decorate your space. You might get to have a family picture at your desk, but not much else.
At home, though, you are at liberty to decorate your office any way you like.”
Lighting is essential for being able to see properly, obviously. Too little light can create eye strain and headaches, so make sure you have a good mix of overhead and task lighting. But don’t forget about the natural light.
“When putting a new desk into a home office, a lot of people kind of reflexively put it right up against the wall in the darkest corner of the room,” said Linda Varone, author of The Smarter Home Office, on Fast Company. “What they’ve inadvertently done is recreated the corporate cubicle. And who wants that? Move your desk close to the windows, but place it parallel to the panes. This ideal set-up gives you the happiness benefits of natural light, and a good reason to turn away from your computer every few minutes to take in the scene.”
Just like you do a regular inventory of your kitchen essentials to keep the fridge and pantry well-stocked, you want to do the same in your office. “Don’t let yourself get hung up because you ran out of printer ink or can’t find a pen,” said Small Biz Trends. “A functional office needs supplies and the proper equipment to function.”
Buying, Selling or Investing… Get Going… With GATELY! Call 661.220.5506 and speak with one of our Real Estate Professionals today.
Specializing in residential resale and new construction of North Los Angeles County (Antelope Valley, Santa Clarita Valley, and San Fernando Valley). GATELY Properties is dedicated to helping you make the best financial and lifestyle choice for your situation. If it is cashing out, upgrading, downgrading, or even relocating we're here to help. Gately Properties was founded on the premise of building a Boutique Real Estate Office that focused on the client and community. Gately Properties helps strengthen the community where they we work and practice real estate because by combining real estate professionals and local neighborhood experience with up-to-the-minute real estate resources we deliver the results home buyers and sellers need today.
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• Within 7 business days
We also agree to the Individual Redress Principle which requires that individuals have the right to legally pursue enforceable rights against data collectors and processors who fail to adhere to the law. This principle requires not only that individuals have enforceable rights against data users, but also that individuals have recourse to courts or government agencies to investigate and/or prosecute non-compliance by data processors.
CAN SPAM Act
The CAN-SPAM Act is a law that sets the rules for commercial email, establishes requirements for commercial messages, gives recipients the right to have emails stopped from being sent to them, and spells out tough penalties for violations.
We collect your email address in order to:
• Send information, respond to inquiries, and/or other requests or questions
• Process orders and to send information and updates pertaining to orders.
• Send you additional information related to your product and/or service
• Market to our mailing list or continue to send emails to our clients after the original transaction has occurred.
To be in accordance with CANSPAM, we agree to the following:
• Not use false or misleading subjects or email addresses.
• Identify the message as an advertisement in some reasonable way.
• Include the physical address of our business or site headquarters.
• Monitor third-party email marketing services for compliance, if one is used.
• Honor opt-out/unsubscribe requests quickly.
• Allow users to unsubscribe by using the link at the bottom of each email.
If at any time you would like to unsubscribe from receiving future emails, you can email us at
• Follow the instructions at the bottom of each email.
and we will promptly remove you from ALL correspondence.
Contacting Us
If there are any questions regarding this privacy policy, you may contact us using the information below.
GATELYProperties
28103 Vista View Dr.
Santa Clarita, CA 91351
USA
[email protected]
Last Edited on 2017-01-30
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