Do the Boomers have it right?

It's not about timing the market, it's about time in the market. 

I have a few homebuyers who are very concerned about buying right now.

The group most deterred by the recent mortgage interest rate hikes is Millennials.  They are daunted by the headlines in their Instagram feed touting doom and gloom "housing market crash" and "interest rates double" etc.  

Those Baby Boomers though...they keep on truckin'.  You know why?  Because this ain't nothing considering the last forty years of mortgage interest rate ups and downs, recessions, market crashes, and more - oh my!  They take this hit like a notch on their belt strap and keep on truckin'. They scoff at 6.4% while whispering under their breath that this latest generation is soft, a bunch of whiners, and then hearken back to 1981 when mortgage interest rates were as high as 18.45%. Then was a time when we had something to whine about.  

According to the National Association of Realtors® Baby Boomers have surpassed Millennials as the largest generation of home buyers making up 39% of the home buying market in 2023.  

To all you fearful potential homebuyers, Los Angeles County has not seen a significant dip in home values.  Agents in my office are still congratulating their buyers for beating out the other offers and homes are still going over asking price. And if anything, the mortgage interest rate increases have stabilized the market after years of unsubstantiated market gains.  Between October 2021 and June 2022, the market was nuts. I still scratch my head about the correlation between the pandemic and the housing market and stock market simultaneously going bananas.  It was time for a correction. 

Look, real estate is still the best investment for your money.  Yes financial portfolio diversity is important, so keep those mutual funds and that financial advisor on payroll, but learn from the Baby Boomers.  This is a blip in economic history.  Real estate will continue to appreciate simply because it's a brick and mortar asset (one of the few) and a necessity.  Every human needs a home.  

Don't be deterred by social media doom and gloom headline, one liner, click-bait, malarkey (shout out to the Baby Boomers.)  Educate yourself and find out the real cost to buy a home.  Crunch the numbers with a lender then make an educated decision about the possibility of buying a home.  You may be surprised. 

Let me ask you this.....do you want to buy in a hot market, competing with your hard earned dollars with every Tom, Dick and Suzie Q?  In a hot market you have no leverage and your chances of getting your offer accepted could be 1 in 25 - your offer will need to be better than those 25 other offers?  Are you tracking?

OR would you rather get in during a market when your odds are 1 in 4.  Think about the difference in the offer you would need to make if you're competing with 4 offers versus 25 offers.  Your interest rate means little when you are overpaying.  And when those interest rates go back down, refinance.  

Are the Boomers right? 

Good Credit v. Bad Credit

information courtesy of lending company 
GUARANTEED RATE
rate.com/jessierobertson

Credit scores are a reflection of your credit history, distilling years of credit card balances, rent payments and utility bills down to a three-digit number. Credit scores can range from 300 to 850, but most people will probably have a score between 580 and 800.

Here’s how these credit score charts usually break down:

  • Less than 580 = Poor

  • 580-669 = Fair

  • 670-739 = Good

  • 740-799 = Very Good

  • 800-850 = Exceptional

Are you looking to work on improving your credit score for a personal loan? Get in touch with me and I can direct you to a lender who will educate you on how to increase your credit score. 
 

What goes into your credit score?

Credit bureaus look at a lot of factors when crunching the numbers and determining your credit score:

  • Payment history: Do you consistently keep up with your debt payments?

  • Credit use: Are you close to maxing out your available credit or do you give yourself plenty of breathing room?

  • Credit file age: How long have you been managing your credit account balances?

  • Account type: Do you carry multiple types of debt — credit cards, auto loans, personal loans — or just one or two?

  • Credit application history: Have you attempted to open up new lines of credit recently or several in a short span of time? 

At its most basic level, a credit score helps financial institutions determine how much risk they take on by loaning money to someone.


What credit score do you need for a loan?

Many lenders may have their own set of criteria you’ll need to meet in order to secure a loan. Lenders may also review each loan application on a case-by-case basis. They often look beyond your credit score number to weigh other aspects of your risk profile. Certain loan options may be better for people in different financial situations.

Higher is generally viewed as more likely to get approved, but there are several factors that a lender looks at. Having a high credit score doesn't guarantee approval, and having a lower than average credit score doesn't make rejection a certainty.
 

What other loan requirements do you need to meet?

Your credit score is just one of several loan requirements. Other factors include:

  • Cash flow: It gives lenders a better sense of how much financial flexibility you have and your ability to repay your personal loan.

  • Debt-to-income (DTI) ratio: DTI ratio compares how much money you have coming in vs. what you owe each month. It lets financial institutions know if you’re living within your means.

  • Credit history: Lenders prefer borrowers who have a strong track record of managing and repaying debt. In the eyes of lenders, carrying credit cards for several years is viewed as a positive.

  • Credit mix: If you’re like most people, you’re carrying a lot of different types of debt: credit cards, auto loans, student loans, mortgage, etc. Staying on top of a variety of debt shows lenders you have the financial discipline to handle a personal loan.

 

How does applying for a loan impact your credit score?

Not all credit checks are the same. There are two types of credit inquiries: a soft pull and a hard pull.

  • Soft pull: Very surface-level review of your credit — similar to checking your credit score through your bank or credit company. Lenders run a soft pull when they want to take a broad view of your credit. More importantly, soft pulls don’t impact your credit score.

  • Hard pull: In-depth review of your credit history involving a full credit report. Lenders run hard pulls when you officially apply for a loan, whether that’s a mortgage, auto loan or personal loan. A hard pull can affect your credit score. 

Reach out and we can come up with a plan to increase your credit score and make buying a home a reality.  

The Fair Housing Act (1968)

I am proud to be a member of the National Association of Realtors, a powerful organization of people that promote and enforce respect in all communities. If you are a member of the N.A.R. then you are a Realtor - a title that is only designated for our members. Realtors are obligated to continue their education year after year to make sure that home sellers and buyers are protected against discrimination. This video is a mandatory educational tool discussing the history of discrimination in the housing market and shows just how seriously N.A.R. is working to eliminate racial, gender, age, creed, sexual orientation and disability bias in our industry.

Is Rolling Hills Estates the best neighborhood to live in the South Bay?

What’s it like to live in Rolling Hills Estates?  Check out my video on Youtube about this hauntingly beautiful neighborhood nestled in the hills of the Palos Verdes Peninsula.  Follow my tour of all those things I love about this remarkable neighborhood in the South Bay including the decadent amount of open space, the community, the schools, the lifestyle and more.

#rollinghillsestates #palosverdes #realestate

First Time Homebuyer Checklist

What does it take to buy a home? It’s a process!

 Calculate what you can afford

 Make sure you’re mentally and emotionally ready

 Get pre-approved

 Choose a real estate agent you trust

 Decide what kind of home you want

 Find your home

 Make an offer

 Schedule a home inspection

 Adjust your offer if the inspector finds issues

 Choose a lender and the loan type that works for you

 Apply for a loan

 Find homeowners insurance

 Close on the loan

 Get your keys

 Move in!

Offer Accepted

Our Gardena listing was on the market for 2 days before we received an offer. We had open houses scheduled but had to cancel the second one because the offer came in above asking and the seller was happy. The market is not dead!

Reach out to me and I will connect you with a lender that can tell you exactly what you can afford and we can hit the ground running. It’s not about timing the market, it’s about time in the market so the sooner you get into Los Angeles real estate, the better.

Lomita, California

Here’s the thing…

Lomita is a small town. 1.9 by 1.9 miles nestled in the South Bay of Los Angeles County. No one knows where Lomita is and if they do, they they underestimate what it’s like to live here. And that’s good for Lomita!

It is one of the best kept secrets in Los Angeles. If you like waking up to the sound of birds, a rooster and the distant murmurs of a major city, with an ocean breeze, then Lomita is the place for you.

Fifteen minutes to the beach, thirty five minutes to LAX airport, five minutes to Whole Foods and Trader Joes. You like to go for runs in nature? Then drive 8 minutes to the horse trails in Rolling Hills Estates where you will see wild peacocks and every other house has a horse stable, chickens, goats and the like. Hiking? Head up the hill on Crenshaw to Portuguese Bend with 180 views of the Pacific out to Catalina. You like to golf? There are seven golf courses or resorts within 10 miles of Lomita. You want to raise a pot bellied pig? West Lomita is zoned A-1 for residential agriculture. You are looking for a local watering hole? Lomita has not one, but two breweries - Burnin Daylight and Project Barley and the Lomita Alehouse is a good place for a local bar. Are you looking for one of the best dirty chai lattes this side of the 405? Corridor Flow has excellent coffee, food and wifi. Are you looking for top level dining? You might not find it in Lomita proper but drive ten minutes to Hollywood Riviera and hit up Rex, Bettolino or Gabi James.

Now let’s talk real estate. There’s a little something for everyone. Whether your budget is 200k or 1,200k you will find something in Lomita.

Yes, there are Mobile Home Parks in Lomita, but this is not your second cousin twice removed’s Mobile Park. This is So-Cal tiny house living. It’s all the rage! Just don’t forget to add in the land lease when you are doing the math on a $200k mortgage - check with your lender on loans for manufactured homes.

Now let’s talk about this A-1 section of Lomita where your neighbor will leave fresh chicken eggs on your door step in exchange for lemons from your tree. You may see the woman down the street walking her horse. Odds are you will be living on a cul-de-sac and have a white picket fence. If you want dirt and a garden, this is the best deal in the South Bay. FYI you are in the flight path of Zamperini municipal airport in this section, but the planes are small and they take off on the west side of the airport away from Lomita.

Lomita Pines is a little gem that no one seems to realize exists. During my door knocking the other day a gentleman put it this way - in Lomita Pines, we live in Palos Verdes with Lomita property taxes. Lomita Pines sits up on the hill and isn’t connected to the rest of Lomita. You have to drive through Palos Verdes to get to Lomita Pines. The views in this section are the best in the South Bay- if you live on the north side of Via Madonna, you can see downtown LA, Long Beach, San Bernardino Mountains, Santa Monica Mountains, the Pacific and Palos Verdes hills. If you live in this section chances are you will be there for the rest of your life. Most of the residents have been there for 40+ years and they all know each other. It’s a close knit neighborhood.

Downtown Lomita has restaurants, shopping, City Hall, a library, and the Farmers Market. The streets are flat and the neighbors are friendly. Drop into the Lomita Feed Store which has been there for 102 years. A little piece of history for this old western agricultural gem that has now become a modern town. Check out City Hall’s black and white photos of what Lomita was then as compared to now.

Reach out if you are looking for a local Lomita expert. I’m happy to be your realtor!

Happy New Year

Did you set intentions for the coming year? I did. For me, this year is about kindness.

Giving to others without expecting anything in return. Giving hope to others who think that they are alone. Encouraging the best in others when they can’t see it in themselves. For myself I want to focus on making even the smallest moments enjoyable. I want to laugh a lot and I want to make my people laugh a lot this year.

Let’s go 2023!

Dear Friends,

We are seeing a very different market than what we were experiencing even four months ago. Interest rates are up and down. Today rates are just under 7% making it very challenging to get into that home that you might have been able to afford just a few months ago. In order to get a foot hold in this market, buyers and sellers need to be creative and think outside the box. Reach out to hear some of my ideas for new homebuyers and investors.

Home Buyers: First time home buyers are challenged by the current values, interest rates and monthly payments. Before you get discouraged, talk to your lender. There are plenty of creative financing options that can help get around these high interest rates and make your dream of buying a home a reality. If you don't have a lender, let me know and I'll put you in touch with a great one.

Home Sellers: Home prices in Los Angeles county are holding strong even with the increase in interest rates. The average home price in Los Angeles is still up from a year ago and sellers are still enjoying multiple offers over asking. The reason for this...Los Angeles is the most populated county in the United States, so there's that. Also home owners who are locked into the "Rates of the Good Ol' Days" aren't going anywhere, keeping inventory low, and home prices high. The market will most likely continue to cool with low inventory over the next few months.

Notary Public: In other news I am now a commissioned Notary Public. If you or your business needs documents notarized, you have my contact information. Use it!

Election Day: I had the honor and pleasure of working on a committee to elect George Barks who ran for California State Assembly in my district. It was a very fulfilling experience and I highly recommend getting involved in local politics for the next election. I experienced what it takes to be elected in the South Bay Los Angeles district. It was both enlightening and exciting. Congratulations to Al Muratsuchi who held onto the seat for State Assembly District 66 - South Bay Los Angeles! Looking forward to seeing what he does with the next term.

Keep in touch. I'm here to answer your questions. You can email me at JessiqaPaceRealtor@gmail.com with questions about the market, real estate or what it takes to be a new agent in today’s market. I’m happy to answer all your questions.

Sincerely,
Jessiqa