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Two Questions Every Homebuyer Should Ask Themselves Right Now
Rising interest rates have begun to slow an overheated housing market as monthly mortgage payments have risen dramatically since the beginning of the year. This is leaving some people who want to purchase a home priced out of the market and others wondering if now is the time to buy one. But this rise in borrowing cost shows no signs of letting up soon.
Economic uncertainty and the volatility of the financial markets are causing mortgage rates to rise. George Ratiu, Senior Economist and Manager of Economic Research at realtor.com, says this:
“While even two months ago rates above 7% may have seemed unthinkable, at the current pace, we can expect rates to surpass that level in the next three months.”
So, is now the right time to buy a home? Anyone thinking about buying a home today should ask themselves two questions:
1. Where Do I Think Home Prices Are Heading?
There are two places to turn to answer this question. First is the consensus of what experts are saying. If you look at what experts are projecting for home prices in 2023, they’re forecasting home price appreciation around 2%. While it’s true some are calling for depreciation, most are calling for appreciation in home values over the next year.
The second spot to turn to for information is the Home Price Expectation Survey from Pulsenomics – a survey of a national panel of over one hundred economists, real estate experts, and investment and market strategists. According to the latest release, the experts surveyed are also calling for home price appreciation for the next several years (see graph below):
2. Where Do I Think Interest Rates Are Heading?
Like mentioned above, Ratiu sees mortgage rates rising over the next several months. Another expert agrees. Mark Fleming, Chief Economist at First American, says:
“While mortgage rates are expected to continue to drift higher over the coming months, much of the rapid increase in rates is likely behind us.”
The instability in the world and higher inflation are driving this volatile market, resulting in higher borrowing rates for those looking to buy homes.
Bottom Line
If you’re thinking about buying a home, asking yourself about home prices and mortgage rates will help you make a powerful and confident decision. Experts see both prices and rates rising in the future. The alternative is to rent, but rents are also increasing. That may mean buying a home makes more sense than renting.
Lynne Watanabe MacFarlane, Realtor | CA DRE # 02066698
Senior Real Estate Specialist, Seller Representative Specialist, Master of Communication Digital Media/Marketing
Professional Fiduciary Assoc, of CA, Silicon Valley Chapter affiliate
INTERO, A BERKSHIRE HATHAWAY AFFILIATE Los Altos office
Covering SF Bay Area & Coastal Communities of Monterey Bay
408-800-114
LMACFARLANE@INTERO.COM
Demo Using Home Search RealScout – Helping Sellers Connect With Buyers in Silicon Valley & Beyond [video]
One of the great tools we use to communicate with our buyers and match them with our listings is the use of RealScout, an award-winning listing alert platform, it’s an industry-first computer-vision powered home search! This is a quick demo of Capitola single family homes. Let me know if you’re ready to find the home of your dreams. Call to schedule an appointment today.
The market is shifting. Don’t wait until you find the right home, let’s connect to discuss how we can prepare and get you ready!
Lynne Watanabe MacFarlane, Realtor
SRES, SRS, MCDM | DRE # 02066698
INTERO, A BERKSHIRE HATHAWAY AFFILIATE
Los Altos office / covering Bay Area & coastal communities on Monterey Bay
831-346-2743 408-800-1141
LMACFARLANE@INTERO.COM
Lynne MacFarlane – Top Listing Agent – Units, Volume and Producer Dec 2021
Open House – Hot Paseo Presada Saratoga Single Family Home (SAT & SUN 1-4PM)
Welcome Home!
Weekly Update Look at Five SF Bay Area Counties
It’s the Weekly Update look at real estate activity in the five SF Bay Area counties (San Mateo, Santa Clara, Santa Cruz, San Benito and Monterey). Take a look at the contrast between 2019 vs. 2020 (March 1st – Aug 22nd) and how far we have bounced back from SIP looking at May, June and July differences between the years. In July 2019 we had a total of 2,757 Closed Sales, but July 2020 we had 3,134 Sales, that’s a 13% Year over Year difference.
#realestate #bayarearealestate #sfbayarea #housingmarket #bayarearealtor #Intero #MLSlisting #Aculist
Our Life in 2020 [Original Video]
We’re all trying to figure out life during this health crisis. We all have different needs, our priorities have shifted and our lives have been permanently been effected. We’ve learned how much our lives are intertwined with services, businesses but most importantly, our friends and family. How has your life changed since March 2020?
My focus is helping others in transition so that they can focus on what’s important in their lives.
I’ve experienced multiple transitions in my life and I know that when one must make a move, it is not easy AND the last thing you want to worry about is the physical move (prepping a home, the sale of a home, where will I live, etc…)
If you’re considering a move and change in life, feel free to reach out, we can talk over the phone or on a Zoom or Facetime chat. I can assist with not only the sale of your home (and educate you about the real estate market and home’s worth) but help plan what’s the next steps and discuss your options. I’m a Professional Fiduciary Association California ( #PFAC) affiliate member and a senior resource specialist in real estate #SRES ready to help you or family members.
Lynne Watanabe MacFarlane, MCDM, SRES | Realtor
PFAC Silicon Valley affiliate
Intero | A Berkshire Hathaway Affiliate
phone 831.346.2743
DRE# 02066698
https://www.instagram.com/lynnemacfar…
https://www.facebook.com/LynneMacFarl…
https://twitter.com/lynnewatanabe
Know Why Tech Hubs in the S.F. Bay Area / Silicon Valley Have Edge in the Housing Recovery
Tech Hubs, such as #SanJose, #Sunnyvale, #santaclaracounty may have the edge in the housing recovery. “New supply” and “pace of sales” remained below during COVID19/SIP January, but in the West Coast, by June 21, it surpasses and continues to lead the recovery with the overall index now visibly above the pre-COVID benchmark.
What’s Driving Our Recovery?
1) Weather 2) COVID-19 containment 3) Economic resilience are three key factors driving regional differences in the housing recovery.
Realtor’s previous study about the spread of COVID-19 is closely linked to the housing slowdown, with markets with higher cases per capita more likely to see a bigger impact on supply and the pace of sales. It found that the speed and sustainability of the reopening, and each market’s ability to contain COVID-19, are dictating the speed of recovery across the regions.
Resilient economies may have an edge in the housing recovery, and areas with strong job markets before COVID-19, especially those with thriving #tech sectors, are seeing buyers and sellers reconnect faster than the rest of the country.
Yep, “West Coast rocks!” says this proud NorCal gal! 🙂
If you have any questions, or looking to relocate and would like any market stats or reports about schools in your desired area, I’m always happy to assist you in your next transition or move.
Prosperity Home Mortgage – Interview with Rashel Yadegari [Video]
Today I interviewed Rashel Yadegari, Prosperity Home Mortgage as we discuss the common lending myths in the home buying process. If you have any questions with the lending process, please don’t hesitate to contact me or Rashel. Hope you enjoy my interview, as it is meant to be a open conversation and an ongoing discussion; I believe it’s best be informed so you can make smarter decisions.
Rashel Yadegari, Prosperity Home Morgage, Mortgage Consultant
NMLSR ID: 1246397
Cell: 408-912-0570
email: Rashel.Yadegari@phmloans.com
Lynne Watanabe MacFarlane, MCDM, SRES | Realtor
PFAC Silicon Valley affiliate
Intero | A Berkshire Hathaway Affiliate
phone 831.346.2743
DRE# 02066698
www.Intero.com | facebook | linkedin | blog | videos| luxury home collection | committed to our community
Thanks for your interest!
SF Bay Area Real Estate Market Doesn’t Stop After Shelter-In-Place
The San Francisco Bay Area real estate market had begun to rebound in the first two months of the year 2020, with strong buyer demand, often with multiple offers, after a flattening of prices in 2019. But the shelter-in-place (SIP) and stock market tumble caused by uncertainty of the pandemic slowed listings and sales.
Just last week real estate agents and other professionals who are deemed as ‘essential workers’ are allowed to work with the CDC guidelines. With these new strict guidelines real estate agents can not show open houses, give tours and must not show homes with sellers who are still residents of the property. Empty residential properties can be shown with a single agent and with only two prospective buyers. Virtual tours using video (real-time or recorded) is highly encouraged (more on Virtual Agents here).
As one can suspect, this has caused much disruption in the buying and selling of homes but it has not prevented sales by any means! Here’s a snapshot of the most important metrics to keep you informed on the real estate landscape, it includes sold homes, new listings, Transactions Fell Through (TFT) and withdrawn homes. These graphs are gathered and summarized for all five MLSListings’ Counties (San Mateo, Santa Clara, Monterey, San Benito and Santa Cruz Counties) by Aculist/ MLSListings.
Interesting to note is that despite the fact that there is a -25% difference between last year and this year’s new properties on the market, there is -14% difference of sold. This could be because it usually lags 30 days (entered escrow around that time). But not surprising we see an increase of TFT (40%), cancelled (34%) and withdrawn (87%) from last year.
Here we see a big difference between the new 2019 listings in blue vs. the new 2020 listings in orange after SIP.
Here we find a fairly regular pattern between the sold listings in 2019 vs 2020 (by the week). It will be very interesting to note what will happen in the next two weeks.
Until then we wish you good health and take the necessary precautions to keep you and your family well!
Questions? Text me if you have any plans on selling, buying or investing in 2020. Feel free to ask for a complimentary market analysis and we can discuss your needs!
(831) 346-2743 text/voice anytime
lmacfarlane@intero.com
If you want to know what’s going on in the market, sign up here!
Will The Corona Virus Create A Housing Crisis …And Our New Norms
I provide a Home & Lifestyle Consultation to prepare what buyers want now! Today’s modern savvy realtor uses virtual real estate technologies. I provide what buyers and sellers truly want in experience and safety. Click on image to learn more!
Concerns about the impact COVID-19 will have on the global and local economy are real. They’re scary too as the health and wellness of our friends, families, and loved ones are high on everyone’s emotional radar.
While we don’t know the exact impact the virus will have on the housing market, we do know that housing isn’t the driver as it was in 2008.
A Recession Does Not Equal A Housing Crisis:
- The COVID-19 pandemic is causing an economic slowdown.
- The good news is, home values actually increased in 3 of the last 5 U.S. recessions and decreased by less than 2% in the 4th.
- All things considered, an economic slowdown does not equal a housing crisis, and this will not be a repeat of 2008.
As our country begins to collectively roll out shelter in place, I hope we can come together, take the time to share gratitude; let’s remember that this will pass. As a country we’ve experienced multiple divisive events such as Civil War, WWII, and more recent traumatic events as 9/11. The concerns about an impending recession are real, but housing isn’t the driver. During the Dot.com bubble starting in late 90’s, a period of massive growth of Internet & telcos, in 2002 (the dot.bomb) I personally would have lost my entire wealth because I was young (& mostly naive) never imagined stocks could crash! The only thing that helped preserve it was a little Los Altos house we divested. I sure am grateful for owning real estate – I am not a financial planner by any means, but I am conservative and because I’ve seen these recessions I advise my buyers to diversify their portfolios; try to have 6 months to a year’s worth of savings, have savings that are a mix of stocks, bonds, mutual funds but work towards owning property. the SF Bay Area our homes are not only places to live, but a wonderful wealth generating asset over time. With our current ongoing global uncertainty, including a U.S. stock market correction, no one could have seen coming. We first should do what’s best for our country, and for our families and that is to take care of one another.
Let’s fight this COVID-19 epidemic together by staying indoors & practicing social distancing, and checking up on loved ones and neighbors.
Take care of your needs now & let me know if I can help in anyway!
We’ve got this!
Lynne MacFarlane, MCDM, Realtor, PFAC affiliate
DRE# 02066698
(831) 346-2743 text/voice anytime
