Area Real Estate News & Market Trends

You’ll find our blog to be a wealth of information, covering everything from local market statistics and home values to community happenings. That’s because we care about the community and want to help you find your place in it. Please reach out if you have any questions at all. We’d love to talk with you!

Jan. 29, 2021

January Real Estate Report - Are We at a Boiling Point?

 

With record low mortgage rates, there is almost too much demand. (Not to mention: Buyers are consumed with how their current home doesn't have the space or features they want in a pandemic reality.) It is like a pot of spaghetti that is boiling over. A quick fix would be to turn down the temperature. That is not that easy in housing. The only way to turn down the heat is for rates to rise. Buyers may be rooting for an easier market with less competition, fewer competing offers, and a gentler rise in values, but that would come at the expense of higher rates and higher monthly payments.

 

 
It is the very thing that buyers are eager to take advantage of that is causing all their frustrations, record low mortgage rates below 3%. It seems that everyone wants to cash in on these incredible savings at the same time. At lower rates, homes become a lot more affordable, even for Southern California’s high dollar value housing stock. It improves a buyer’s purchasing power as well, allowing a family on a budget to afford a lot more home.
Because of these low rates, demand is off the charts and everything that comes on the market is gobbled up almost immediately. Today’s demand (a snapshot of the prior 30-days of pending sales activity) is at 2,055 pending sales compared to 1,702 last year, 21% higher.
 

 

 
The current active inventory (the number of available homes to purchase) is at 2,627 compared to 4,023 last year. There were 53% more homes available to purchase only one year ago. With rock solid demand and an exceptionally low supply, the market is unbelievably hot and lines up heavily in the seller’s favor. The Expected Market Time (the number of months to sell all Orange County listings at the current buying pace) is at 38 days. Last year it was at 71 days, and in November 2018 it was at 122 days.

 

 
While today’s housing market may be boiling over on the backs of record low mortgage rates, buyers should keep the pedal to the metal and not give up. Home values are on the rise and mortgage rates are slated to increase to the mid-3’s by year’s end. Waiting is quite simply not the answer. The same goes for sellers. Waiting until the second half of the year when inventory increases (meaning your property has more competition) and interest rates increase (meaning buyers have less purchasing power) could result in your home taking longer to sell and not selling for as much as you would like. If you are considering selling your home or someone you know is thinking of selling their home but want to wait until the pandemic is over...DON'T WAIT! Striking while the iron is hot is key to your success; just as working with the right real estate team is paramount to selling it quickly and for top dollar. That is where The Swan Team comes in!
Contact us now at 949-444-1601 and get the best team in the business working for you!
Posted in Market Updates
Jan. 15, 2021

What You Need to Know About Prop 19

 


With the new year comes new laws and rules that take effect. This year, the most talked about new rules regarding real estate revolve around the approved Prop 19.
 
Take a quick read to see if you or your family members might be affected by the legal and tax implications.
 
EXPANDED SPECIAL RULES FOR ELIGIBLE HOMEOWNERS Effective April 1, 2021: Homeowners 55 years of age and older, severely disabled, or whose property was extensively destroyed by wildfire or other natural disasters may be eligible to transfer the taxable value of their primary residence to a replacement primary residence:
  • „ Anywhere in California
  • „ Of any value, but with upward adjustments if replacement is of greater value
  • „ Purchased or newly constructed within two years of sale
  • „ Up to three times (previously one time), but without limitation for properties destroyed by fire
TAXATION OF INHERITED PROPERTY TRANSFERS Effective February 16, 2021: Prop 19 narrows the rules allowing properties to pass from parent to child and grandparent to grandchild without an increase in the property tax bill. The taxable value can be transferred:
  • „ To only those properties used as a primary home or farm by the child or grandchild
  • „ If homeowners’ exemption is filed within one year of transfer
  • „ If the value of the property is less than $1M over the original tax basis. If the property value, at the time of transfer, is more than $1M over the original tax basis, some upward adjustment in assessed value would occur.
For more information on Prop 19, visit Prop19Attorney.com or boe.ca.gov/prop19.
Posted in Market Updates
July 31, 2017

Curious About Local Real Estate?

Receive the Latest Local Market Stats

Curious about local real estate? So are we! Every month we review trends in our real estate market and consider the number of homes on the market in each price tier, the amount of time particular homes have been listed for sale, specific neighborhood trends, the median price and square footage of each home sold and so much more. We’d love to invite you to do the same!

Get Local Market Reports Sent Directly to You

You can sign up here to receive your own market report, delivered as often as you like! It contains current information on pending, active and just sold properties so you can see actual homes in your neighborhood. You can review your area on a larger scale, as well, by refining your search to include properties across the city or county. As you notice price and size trends, please contact us for clarification or to have any questions answered.

We can definitely fill you in on details that are not listed on the report and help you determine the best home for you. If you are wondering if now is the time to sell, please try out our INSTANT home value tool. You’ll get an estimate on the value of your property in today’s market. Either way, we hope to hear from you soon as you get to know our neighborhoods and local real estate market better.

Posted in Market Updates