Gold Country CA Real Estate Blog and News

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...

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...

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...

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...

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...