December Newsletter
Here are the Bullet Points
Lots of inventory coming on the market in the first quarter Jan/Feb/Mar.
Values are the highest they have ever been and will continue to go up-up-up in California!
Rumor has it the Fed plans to lower interest rates six times in 2024 speculations is likely 3/4 point and in 2025 we should see them drop another full point. If this happens it will be great for that monthly mortgage payment!!!
If you are looking to buy in the next 6 months to a year, get prequalified now and consider buying sooner than later. When those rates come down it's going to be very busy and competitive market and that means values will go up.
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It's not about timing the market, it's about time in the market.
Prop 19 allows homeowners who are over 55 years of age, disabled, or victims of a wildfire or natural disaster, to transfer their lower assessed property value of their primary home to a newly purchased or newly constructed replacement principal residence up to three times (or once per disaster). The tax base may be transferred to a property located anywhere in the state. Also under Prop 19, a child or children may keep the lower property tax base of the parent(s) ONLY if the property is the principal residence of the parent(s) and the child or children make it their principal residence within one year.
DSCR Loans - Want to buy a rental but don't show any income? This loan will use the income the rental property makes to qualify you. This is great for buyers who write off a lot of their income.
Mortgage rate buy downs. - Lenders are giving 2% off rates in the first year and 1% off in the second year and this is paid for by the seller. Talk to your lender about 2-1 Mortgage Buy-Down.
New Investment Property Lending Law - Fannie Mae will be implementing new guidelines that allow for a Loan-To-Value (LTV) ratio of up to 95% for 2-4 unit properties. That means you only need to put 5% down and the property income will count toward the loan (not unlike a DSCR Loan). Keep in mind you do need to live in one of the units for this type of loan.
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Los Angeles Housing Provider and Tenant Protections
Looking for free legal advice on your rights as a housing provider/landlord or a tenant living in LA County. Click on the image above to go to the website for more information.
You can reach a skilled counselor Monday through Friday from 8 a.m. to 4:30 p.m. at (800) 593-8222 or via email at rent@dcba.lacounty.gov For the most efficient service, schedule an appointment on their website to speak with a counselor at your preferred time.
Where home prices are cooling off and where they aren’t
Where home prices are cooling off…
Median listing price: $609,875
Change year-over-year: -7.8%
During the pandemic, home prices in Boise rose 63%. This outdoor playground was popular with remote workers looking for more space and fun in the natural environment. And who wasn’t during the first couple years of lockdowns?
But now that those conditions aren’t driving up prices, Boise has lost some ground and is providing a good opportunity for those looking to buy.
Median listing price: $583,751
Change year-over-year: -7.7%
This was another hot place to move during the pandemic, and the capital of Texas is boosted by also being a hub for tech companies. The prices per square foot for homes in Austin shot up a shocking 75% during the pandemic. But now those prices are coming down, which is likely welcome news for all of those residents who want to keep Austin weird.
Median listing price: $366,075
Change year-over-year: -7.3%
Vacation areas, like Myrtle Beach—situated on the Atlantic Coast—became popular places to buy during the pandemic. But with fewer able to work remotely from a permanent vacation spot, the demand for homes in this area has dropped, as have prices.
Median listing price: $529,450
Change year-over-year: -5.6%
Phoenix has long been one of the fastest growing metro areas in the country, and the speed it grew over the last few years pushed home prices higher. But Phoenix has the ability to keep growing. Warm enough for home construction to keep chugging along year-round, and with plenty of land available in the Valley of the Sun, low inventory isn’t as much of issue here as it is in other parts of the country. And that has allowed home prices to come down from their recent highs.
Median listing price: $549,900
Change year-over-year: -4.7%
Another vacation destination that benefitted from the work from home crowd over the last few years, Sarasota has lost some of the helium that was pushing prices higher. But with plenty of homes for sale, it’s a great spot for those looking for options.
Median listing price: $635,000
Change year-over-year: -4.0%
Salt Lake City is an outdoor lover’s paradise with a healthy amount of tech jobs, two qualities that proved popular with homebuyers during the pandemic. Now that the frenzy of those heady days have died down a bit, home prices have levelled off, maybe even dipping slightly.
Median listing price: $238,250
Change year-over-year: -3.9%
The only city in the Northeast on this list, Pittsburgh is also the city with the lowest median listing price included here as well. That’s due in part to the fact that Pittsburgh also features smaller homes than the metro areas out West, with a median home size around 1,600 square feet.
The Steel City didn’t see as much price appreciation as others, but the downturn seems to be due to the housing slowdown we’re seeing across the country. But that makes it a good option to finding potential value on the homes for sale there.
Median listing price: $345,899
Change year-over-year: -3.6%
Warm temps and tech jobs helped drive Winston-Salem home prices up over the last few years. Still a robust housing market, the area is seeing a shift in buyer preference, with more folks scooping up cheaper, smaller homes and eschewing the larger, more expensive homes that had been in vogue recently.
Median listing price: $662,875
Change year-over-year: -3.4%
Sacramento lies within the interior of the state not too far from the Nevada border and has seen its housing market undergo a cooling in recent months as mortgage rates have continued to climb. It’s a tradeoff for sure, but with an increase in supply and a decrease in competition, many houses are being sold below the initial asking prices—which is good news for homebuyers.
Median listing price: $376,000
Change year-over-year: -1.1%
The Windy City, home of Guaranteed Rate, has seen a big shift in buyer preference based on neighborhood. Remote work has cooled off the housing market in the city center, those neighborhoods near the iconic Loop, as that part of town has become downright sleepy. While home prices in the city in general were slightly down, the majority of the drop came from those downtown neighborhoods.
Metro regions avoiding the chill
So where is it good to be a seller? As mentioned earlier, there are plenty of regions that have yet to see home prices cool down in a significant way. Interestingly, the metro areas that are seeing home prices rise are mainly in the Midwest and the South.
Davenport, IA
Montgomery, AL
Wichita, KS
Tulsa, OK
Youngstown, OH
Minneapolis, MN
McAllen, TX
Harrisburg, PA
Little Rock, AR
Knoxville, TN
These areas have relatively strong local economies, home prices that are less than the national average in terms of price per square foot. Add to that the fact that there aren’t enough homes for sale in these metro areas and you have a recipe for a warming local housing market.
The Kondo Group
If you are looking to buy, sell or lease your home you won’t find a more comprehensive real estate team than The Kondo Group. We have 15 agents and when you work with one of us, you work with all of us. We meet weekly to discuss our clients needs, and each one brings their own expertise to the table.
Asking questions costs you nothing so send me an email or give me a call. Let’s talk about your vision for your real estate dreams and make them come true.
Selling Your Home in the Middle of a Divorce?
First of all, divorce is BRUTAL and if you are going through this unfortunate time in your life, strive for the happier times ahead. Things will be better soon.
Now, if you need to sell your home because you are getting a divorce, this video has some helpful insights into what you can do to make this process more streamline. First things first, find a good lawyer in line with your philosophy on how to handle this very difficult situation. Work quickly to get through the financial separation - don’t draw it out. And lastly, no matter what, take a deep breath, listen to your advisors (Realtor, Lawyer and Friends), and move onto greener pastures.
This video is great for people who are just starting the process of untangling from your partner.
South Bay Magazine - September 2023
So proud to be working with this incredible group of women, The Kondo Group! When you work with me, you work with all of us! Each one bringing their own expertise to every transaction. If you want to work with the best, contact me and we can schedule a meeting.
Jessiqa.Pace@compass.com
Living in Hawthorne, California
What’s it like to live in Hawthorne California? Watch this video to find out!
The Hub of the South Bay, Hawthorne has a lot to offer its residents. Explore one of the best central Los Angeles cities and reach out if you are looking to buy. I’ve got the lock down on Hawthorne!
Advantages of buying a Short Term or Long Term Rental Property in California
If you have some money that you want to invest in real estate, consider California as the gold standard for long term real estate investing. Building a business plan around your investment goals can be daunting but if you are trying to decide if you want to invest in California real estate then watch this video.
Reach out if you have any questions or want to explore your real estate investment options in California.
Century City - the jewel of Los Angeles
Did you know Los Angeles County has 88 cities?!? In an effort to explore the many neighborhoods of Los Angeles we have been producing videos for people moving to LA who want to know what it's like to live here. Finding the right place neighborhood to live in Los Angeles is key to your success.
This week we explored Century City! Check out my YouTube video on the history, neighborhood feel, things to do, places to eat and what it's like to live in the most glamorous city within a city!
I've Joined Compass
A New Direction with
Compass and The Kondo Group
I am very excited to announce that have joined Compass and one of the top producing teams on the Palos Verdes Peninsula, The Kondo Group. I will continue to residential real estate on both sides of the transaction so don't hesitate to reach out. Flanked by Tadashi Kondo and a highly experienced group, I will continue to provide high standards of service, with quick response times, while looking out for the best interest of my clients.
I am very grateful to my team at Sabra Sellers Realty. I learned so much from Sabra and her team, but it was time to move to an office closer to home.
I'm a Commissioner!
Very excited and honored to be appointed by the city council to the Public Safety and Traffic Commission for the city of Lomita! Looking forward to serving my community and working with my fellow commissioners. Always happy to take comments and suggestions to the board so don’t hesitate to message me. It takes a village, right?
Are you considering living in Rancho Palos Verdes?
Check out my video on Rancho Palos Verdes, one of my favorite places in Los Angeles county. This incredible community has so much to offer and this video explores all the things I love about this town. If it’s not your speed it’s still a wonderful place to visit. Check out my video on RPV and don’t forget to like and subscribe to our channel. You know the drill. Now get out there and live your best life!
Build Home Equity by Going Green
Let's forget about interest rates for a minute and look at the big picture. Many people want to sell their home but are worried that their home value has gone down and don't believe it is a good time to sell. Prioritizing the impact of your home will increase your home value. This is the perfect time to do an audit of your home and see how you can add value by going GREEN.
Homes with third-party certifications like Energy Star, National Green Building Standard, Pearl Certification, or LEED for Homes have proven to add contributory value to properties.
In March 2023, the National Association of Realtors surveyed its members about sustainability issues facing the industry. Some of the findings are as follows:
32% of respondents reported that their MLS has green data fields, and respondents typically used the green data fields to promote green features and energy information.
63% said energy efficiency promotion in listings was very or somewhat valuable.
48% of respondents found clients were at least somewhat interested in sustainability.
42% of homes with green certifications spent neither more nor less time on the market.
Ways to Go Green
Energy Audit: Reach out to a local Energy Audit company and schedule an appointment. The cost is between $400-$500. They will assess your appliances, HVAC system, insulation, water flow, etc. and give you a detailed report on how you can improve the energy consumption of your home. Yelp's Best Energy Auditors LA
Energy Star: When buying appliances, water heaters, air conditioners, windows, doors and even lightbulbs look for that Energy Star logo.
Windows: Eco-friendly windows can improve your home's energy efficiency bot in heating and cooling. Not only will this have global impact but you will also save in monthly utility bills. Also Energy Star rated windows will improve your property value and attract buyers when it’s time to sell.
Insulation: Adding insulation to your walls, ceilings and floors can greatly improve your home’s energy efficiency, decreasing your heating and cooling needs and reducing energy costs.
Solar Panels: Solar panels increase the appraisal value of a house by 4.1% on average, according to a study conducted by Zillow. Solar panels lower monthly costs and are an abundance of energy. In Los Angeles a majority of days will have sun exposure so why not reap the benefits of living here. Plus energy companies will buy back energy which is also an added financial benefit.
Use eco-friendly paints: Conventional paints and stains are often full of toxic chemicals that get into the air in your home. Make the switch to better paints that are lower in volatile organic compounds (VOCs) and other toxic substances for a healthier home environment, as well as a lower ecological footprint.
Native Plant Landscaping: Drought tolerant plants are certainly the way to go, particularly if you live in Los Angeles which is technically a desert climate. Check your local city government website for rebates for removing water-inefficient grass with drought-tolerant landscaping. LA Cash for Grass Rebate Program
GOING GREEN REBATE FINDER Check out this website for tax credits and rebates for GOING GREEN!
Reach out with any other ideas and stories about GOING GREEN that I can share in my next newsletter.
How do I make my home value go up?
No one wants to hear that their home value has depreciated, especially when they are trying to sell. If you have an older home and have not done any improvements then chances are your home is losing value. How do you make the value of your home go up? Renovations!!! Here are some quick tips on how to improve your home value in the short term and the long term. It will cost you time and money but there is no doubt that you will see your home value go up and that will come back to you when you do sell your home.
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.
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