Gold Country CA Real Estate Blog and News

How Is Remote Work Changing Homebuyer Needs?

How Is Remote Work Changing
Homebuyer Needs? | MyKCM

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 ...

Homeownership Rate Continues to Rise in 2020

Homeownership Rate Continues
to Rise in 2020 | MyKCM

So far, it's been quite a ride this year, and our nation has truly seen its fair share of hurdles. From COVID-19 to record unemployment and then the resulting recession, just to name a few, the second quarter of 2020 has had more than a few challenges. Amidst the many roadblocks, however, the U.S. homeownership rate rose again, signaling great strength in the recovery of the housing market and an indication that even in a time of crisis, Americans still feel confident about buying a home.

Yesterday, the U.S. Census Bureau announced:

The homeownership rate of 67.9 percent was 3.8 percentage points higher than the rate in the second quarter 2019 (64.1 percent) and 2.6 percentage points higher than the rate in the first quarter 2020 (65.3 percent).

Homeownership Rate Continues to Rise in 2020 | MyKCMThe increase is also represented by race and ethnicity of the householder:Homeownership Rate Continues to Rise in 2020 | MyKCM...

Guidance and Support Are Key When Buying Your First Home

Guidance and Support Are Key
When Buying Your First Home | MyKCM

In June, the number of first-time homebuyers accounted for 35% of the existing homes sold, a trend that's been building steadily throughout the year. According to the National Association of Realtors (NAR):

The share of first-time buyers increased in March through June—right into the heart of the pandemic period and the surge in unemployment—and is now trending higher than the 29% to 32% average in past years since 2012. (See graph below):

Guidance and Support Are Key When Buying Your First Home | MyKCM

Why the rise in first-time homebuying?

NAR continues to say:

The major factor is, arguably, ...

Two Reasons We Won't See a Rush of Foreclosures This Fall

Two Reasons We Won't See a
Rush of Foreclosures This Fall | MyKCM

The health crisis we face as a country has led businesses all over the nation to reduce or discontinue their services altogether. This pause in the economy has greatly impacted the workforce and as a result, many people have been laid off or furloughed. Naturally, that would lead many to believe we might see a rush of foreclosures like we saw in 2008. The market today, however, is very different from 2008.

The concern of more foreclosures based on those that are out of work is one that we need to understand fully. There are two reasons we won't see a rush of foreclosures this fall: forbearance extension options and strong homeowner equity.

1. Forbearance Extension

Forbearance, according to the Consumer Financial Protection Bureau (CFPB), is when your mortgage servicer or lender allows you to temporarily pay your mortgage at a lower payment or pause paying your mortgage. This is an option for those who need immediate relief. In today's economy, the CFPB has given homeowners a way to extend their forbearance, which will greatly assist those families who need it at this critical time.

Under the CARES Act, the CFPB ...

Mortgage Rates Hit Record Lows for Three Consecutive Weeks

Mortgage Rates Hit Record
Lows for Three Consecutive Weeks | MyKCM

Over the past several weeks, Freddie Mac has reported the average 30-year fixed mortgage rate dropping to record lows, all the way down to 3.03%. Last week's reported rate reached the lowest point in the history of the survey, which dates back to 1971 (See graph below):Mortgage Rates Hit Record Lows for Three Consecutive Weeks | MyKCM

What does this mean for buyers?

This is huge for homebuyers. Those currently taking advantage of the increasing affordability that comes with historically low interest rates are winning big. According to Sam Khater, Chief Economist at Freddie Mac:

The summer is heating up as record low mortgage rates continue to spur homebuyer demand.

In addition, move.com ...

Not All Agents Are Created Equal

Not All Agents Are Created
Equal | MyKCM

In today's fast-paced world where answers are just a Google search away, there are some who may question the benefits of hiring a real estate professional when selling a house. The reality is, the addition of more information can lead to more confusion. A real estate agent can be your essential guide, but truth be told, not all agents are created equal. Finding the right agent for you and your family should be your top priority when you're ready to sell your house.

The right agent is the person who can truly walk you through the whole process, look out for your best interest, and seamlessly lead you through all the steps along the way. In today's complex market, the way we execute real estate transactions is changing constantly, especially as more elements can be done virtually. Making sure you have the best advice on your side is more important than ever.

So, how do you choose the perfect agent?

It starts with trust. You must trust the advice this person is going to give you, and you'll want to begin by making sure you're connected to a true professional. An agent can't give you perfect advice because it's impossible to know exactly what's going to happen at every turn – especially in this unique market. A true professional agent can, however, give you the best advice possible based on the information and situation at hand, helping you make the necessary adjustments and best decisions along the way. The right agent – the professional –...

Are New Homes Going to Be Available to Buy This Year?

Are New Homes Going to Be
Available to Buy This Year? | MyKCM

In today's economy, everyone seems to be searching for signs that a recovery is coming soon. Many experts agree that it may actually already be in motion or will be starting by the 3rd quarter of this year. With the housing market positioned to lead the way out of this recession, builder confidence might be a bright spark that gets the recovery fire started. The construction of new homes coming right around the corner is a huge part of that effort, and it may drive your opportunity to make a move this year.

According to the National Association of Home Builders (NAHB):

New home sales jumped in May, as housing demand was supported by low interest rates, a renewed household focus on housing, and rising demand in lower-density markets. Census and HUD estimated new home sales in May at...

Want to Make a Move? Homeowner Equity is Growing Year-Over-Year

Want to Make a Move?
Homeowner Equity is Growing Year-Over-Year | MyKCM

One of the bright spots of the 2020 real estate market is the growth in equity homeowners are experiencing across the country. According to the recently released Homeowner Equity Insights Report from CoreLogic, in nearly every state there was a year-over-year first-quarter equity increase, averaging out to a 6.5% overall gain.

The report notes:

CoreLogic analysis shows U.S. homeowners with mortgages (roughly 63% of all properties) have seen their equity increase by a total of nearly $590 billion since the first quarter of 2019, an increase of 6.5%, year over year. (See map below):

Want
to Make a Move? Homeowner Equity is Growing Year-Over-Year | MyKCMThis means that In the first quarter of 2020, the average homeowner gained approximately $9,600 in equity during the past year.

That's a huge win for homeowners, especially for those looking to sell their houses and make a move this summer. Having equity to re-invest...

Three Reasons Homebuyers Are Ready to Purchase This Year

Three Reasons Homebuyers Are
Ready to Purchase This Year | MyKCM

A recent survey by Lending Tree tapped into behaviors of over 1,000 prospective buyers. The results indicated 53% of all homebuyers are more likely to buy a home in the next year, even amid the current health crisis. The survey further revealed why, naming several reasons buyers are more likely to move this year (see graph below):Three Reasons Homebuyers Are Ready to Purchase This Year | MyKCMLet's break down why these are a few of the key factors motivating buyers to actively engage in the home search process, and the corresponding wins for sellers as well.

1. Low Mortgage Rates

The biggest reason potential homebuyers indicated they're eager to purchase this year is due to current mortgage rates, which are hovering near all-time lows. Today's low rates are making it more affordable than ever to buy a home, which is a huge incentive for purchasers. In fact, 67% of respondents in the Lending Tree...

Is a Recession Here? Yes. Does that Mean a Housing Crash? No.

Is a Recession Here? Yes.
Does that Mean a Housing Crash? No. | MyKCM

On Monday, the National Bureau of Economic Research (NBER) announced that the U.S. economy is officially in a recession. This did not come as a surprise to many, as the Bureau defines a recession this way:

A recession is a significant decline in economic activity spread across the economy, normally visible in production, employment, and other indicators. A recession begins when the economy reaches a peak of economic activity and ends when the economy reaches its trough. Between trough and peak, the economy is in an expansion.

Everyone realizes that the pandemic shut down the country earlier this year, causing a significant decline in economic activity.

Though not surprising, headlines announcing the country is in a recession will cause consumers to remember the devastating impact the last recession had on the housing market just over a decade ago.

The real estate market, however, is in a totally different position than it was then. As Mark Fleming, Chief Economist at First American, explained:

Many still bear scars from the Great Recession and may expect the housing market to follow a similar trajectory in response to the coronavirus outbreak. But, there are distinct differences that indicate the housing...

Home Prices: It's All About Supply and Demand

Home Prices: It's All About
Supply and Demand | MyKCM

As we enter the summer months and work through the challenges associated with the current health crisis, many are wondering what impact the economic slowdown will have on home prices. Looking at the big picture, supply and demand will give us the clearest idea of what's to come.

Making our way through the month of June and entering the second half of the year, we face an undersupply of homes on the market. Keep in mind, this undersupply is going to vary by location and by price point. According to the National Association of Realtors (NAR), across the country, we currently have a 4.1 months supply of homes on the market. Historically, 6 months of supply is considered a balanced market. Anything over 6 months is a buyer's market, meaning prices will depreciate. Anything below 6 months is a seller's market, where prices appreciate. The graph below shows inventory across the country since 2010 in months supply of homes for sale.Home
Prices: It's All About Supply and Demand | MyKCMRobert Dietz, Chief Economist for the ...

6 Reasons Why Selling Your House on Your Own Is a Mistake

6 Reasons Why Selling Your
House on Your Own Is a Mistake | MyKCMThere are many benefits to working with a real estate professional when selling your house. During challenging times like the one we face today, it becomes even more important to have an expert help guide you through the process. If you're considering selling on your own, known in the industry as a For Sale By Owner or FSBO, please consider the following:

1. Your Safety Is a Priority

During this pandemic, your family's safety comes first. When you FSBO, it is incredibly difficult to control entry into your home. A real estate professional will have the proper protocols in place to protect not only your belongings, but your family's health and well-being too. From regulating the number of people in your home at one time to ensuring proper sanitization during and after a showing, and even facilitating virtual tours for buyers, agents are equipped to follow the latest industry standards recommended by the National Association of Realtors (NAR) to help protect you and your family.

2....

Why the Housing Market Is a Powerful Economic Driver

Why the Housing Market Is a
Powerful Economic Driver | MyKCM

With businesses starting to slowly open back up again in some parts of the country, it's important to understand how housing can have a major impact on the recovery of the U.S. economy. As we've mentioned before, buying a home is a driving financial force in this process. Today, many analysts believe one of the first things we'll be able to safely bring back is the home building sector, creating more jobs and impacting local neighborhoods in a big way. According to Robert Dietz in The Eye on Housing:

The pace of new home sales will post significant declines during the second quarter due to the impacts of higher unemployment and shutdown effects of much of the U.S. economy, including elements of the real estate sector in certain markets. However, given the momentum housing construction held at the start of 2020, the housing industry will help lead the economy in the eventual recovery.

The National Association of Home Builders (...

Are We About to See a New Wave of Foreclosures?

Are We About to See a New
Wave of Foreclosures? | MyKCM

With all of the havoc being caused by COVID-19, many are concerned we may see a new wave of foreclosures. Restaurants, airlines, hotels, and many other industries are furloughing workers or dramatically cutting their hours. Without a job, many homeowners are wondering how they'll be able to afford their mortgage payments.

In spite of this, there are actually many reasons we won't see a surge in the number of foreclosures like we did during the housing crash over ten years ago. Here are just a few of those reasons:

The Government Learned its Lesson the Last Time

During the previous housing crash, the government was slow to recognize the challenges homeowners were having and waited too long to grant relief. Today, action is being taken swiftly. Just this week:

  • The Federal Housing Administration indicated it is enacting an immediate foreclosure and eviction moratorium for single family homeowners with FHA-insured mortgages for the next 60 days.
  • The Federal Housing Finance Agency announced it is directing Fannie Mae and Freddie Mac to suspend foreclosures and evictions for at least 60 days.

Homeowners Learned their Lesson the Last Time

When the housing market...

Buying a new Home: Do You Know the Lingo? [INFOGRAPHIC]

Buying a Home: Do You Know
the Lingo? [INFOGRAPHIC] | MyKCM

Highlights:

  • Buying a home can be intimidating if you're not familiar with the terms used throughout the process.
  • To point you in the right direction, here's a list of some of the most common language you'll hear along the way.
  • The best way to ensure your homebuying process is a positive one is to find a real estate professional who will guide you through every aspect of the transaction with ‘the heart of a teacher.'

Contact Gold Country Modern Real Estate, experienced Realtors in Amador County, for help purchasing or selling a home in Amador County, California.

...

How Much Housing Wealth Can You Build in a Decade?

How Much Housing Wealth Can
You Build in a Decade? | MyKCM

Earlier this month, the National Association of Realtors (NAR) released a special study titled Single-Family Home Price Gains by Years of Tenure. The study estimates median home price appreciation over the last 30 years based on the length of homeownership.

Below are three graphs depicting the most important data revealed in the study.

How much have home prices increased?

One of the first measures of the financial benefits of homeownership is the net worth (in the form of equity) an owner can build over time. The study showed the average increase in home values based on how long homeowners stayed in a home.How
Much Housing Wealth Can You Build in a Decade? | MyKCM

What was the percentage of appreciation?

Another way to look at this is by the percentage increase in value over time, called appreciation:...

Entry-Level Homeowners Are in the Driver's Seat

Entry-Level Homeowners Are in
the Driver's Seat | MyKCM

One thing helping homeowners right now is price appreciation, especially in the entry-level market. In the latest Home Price Insights report, CoreLogic reveals how home prices increased by 4% year-over-year and projects prices will rise 5.2% by December 2020.

Why is this good news for the homeowners?

When prices appreciate, homeowners gain equity. In addition, those planning to sell this year, especially in the entry-level market, can potentially earn a substantial profit.

Dr. Frank Nothaft, Chief Economist at CoreLogic, says:

Moderately priced homes are in high demand and short supply, pushing up values…Homes that sold for 25% or more below the local median price experienced a 5.9% price gain in 2019, compared with a 3.7% gain for homes that sold for 25% or more above the median.

As Dr. Nothaft indicates, the lack of ...

Make the Dream of Homeownership a Reality in 2020

Make the Dream of
Homeownership a Reality in 2020 | MyKCM

In 1963, Martin Luther King, Jr. led and inspired a powerful movement with his famous I Have a Dream speech. Through his passion and determination, he sparked interest, ambition, and courage in his audience. Today, reflecting on his message encourages many of us to think about our own dreams, goals, beliefs, and aspirations. For many Americans, one of those common goals is owning a home: a piece of land, a roof over our heads, and a place where our families can grow and flourish.

If you're dreaming of buying a home this year, the best way to start the process is to connect with a Real Estate professional to understand what goes into buying a home. Once you have that covered, then you can answer the questions below to make the best decision for you and your family.

1. How Can I Better Understand the Process, and How Much Can I Afford?

The process of buying a home is not one to enter into lightly. You need to decide on key things like how long you plan on living in an area, school districts you prefer, what kind of commute works for you, and how much you can afford to spend.

Keep in mind, before you start the process to purchase a home, you'll also need to apply for a mortgage. Lenders will evaluate several factors connected to your financial...

Buying a Home Early Can Significantly Increase Future Wealth

Buying a Home Early Can
Significantly Increase Future Wealth | MyKCM

According to an Urban Institute study, homeowners who purchase a house before age 35 are better prepared for retirement at age 60.

The good news is, our younger generations are strong believers in homeownership.

According to a Freddie Mac survey,

The dream of homeownership is alive and well within Generation Z, the demographic cohort following Millennials.

Our survey…finds that Gen Z views homeownership as an important goal. They estimate that they will attain this goal by the time they turn 30 years old, three years younger than the current median homebuying age (33).

Buying a Home Early Can Significantly Increase Future Wealth | MyKCM...

The New Spring Real Estate Market is Here. Are You Ready?

The New Spring Real Estate
Market is Here. Are You Ready? | MyKCM

Which month do you think most people who are considering buying a home actually start their search? If you're like most of us, you probably think the surge happens in the spring, likely in April. Not anymore. According to new research, January 2019 was only 1% behind February for the most monthly views per listing on realtor.com.

So, what does that mean? The busiest season in real estate has just begun.

The same research indicates,

Historically, April launched the kickoff of the home shopping season as buyers would come out of their winter hibernation looking for their new home. However, the spring shopping season now starts in January for many of the nation’s largest markets.

With the reality of fewer homes on the market in the winter, and that supply naturally increases as we head to the spring market, waiting for more competition to list in your neighborhood this year might put you behind the curve. Perhaps now is the time to jump into the market.

George Ratiu, Senior Economist at realtor.com says,

As shoppers...