Blog / Real Estate News

Back to Blog →

  • According to the latest Quicken Loans National Home Price Perception Index, homeowners are getting less than they expected after their homes are appraised. Appraised values were 1.35% lower than homeowners expectations in August which has narrowed from a 1.55% difference in July.

    It appears as if their perceptions can vary across the country. Home values are 3% higher than homeowners estimated values in the West, while they are 3% lower than expected in the Midwest and Northeast.

    The Quicken Loans study states that while a 3% difference may seem small, "a homeowner in Denver may have upwards of $11,000 in additional equity they can access for home improvements or loan consolidation."

    To learn more about local real estate market trends or if you're interested in buying or selling in Orange County, contact us,TheWiseTeam, directly at(714) 698-9473for a free consultation.

    [Source]

  • Zestimates. It's Zillow's own automated valuation model that is designed to estimate a home's sales price.The key word here is, of course, estimate. They're not meant to be taken at face value. In fact, Zillow readily acknowledges that Zestimates can be inaccurate.

    For example, the CEO of Zillow himself, Spencer Rascoff, sold a Seattle home for $1.05 million which was 40% less than the Zestimate of $1.75 million. Shocking, right? Well first, consider this.

    These numbers are based on algorithms that draw from similar homes in the area that were recently sold. One of the biggest issues with Zestimates is that those searching for a home might glance at a Zestimate and move on to the next property if it doesn't match their budget. However, Zestimates can't takeinto account non-quantifiable facts such as layout design or lighting.

    In the case of Rascoffs listing, Zillow was unfairly comparing its triangular lot that sat on an arterial road to other homes with rectangular lots on quieter streets. The Zestimate algorithm is not designed to take into account how special features impact a property's value. In other words, the numbers you see on Zillow are meant to be a starting point. Its worth knowing that Zillow puts the Zestimates national median error rate at 7.9 percent, meaning half of Zestimates nationwide are within 7.9 percent of a homes sales price and half are off by more than 7.9 percent. That's where experienced real estate agents, like us, come in.So if you're interested in finding out what your home is actually worth, visit our website or contact us, The Wise Team, directly at (714) 698-9473for a free consultation.

    Source:http://www.inman.com/2016/05/18/zillow-ceo-spencer-rascoff-sold-home-for-much-less-than-zestimate/amp/

  • For a few years now, real estate experts have been predicting a market re-correction for Southern California. Many thought 2016 was the year to bring prices crashing back down but it didnt happen. The question is why? The answer is the market continues to function rather unconventionally and the old investment play books might as well be used as firewood. When we examine affordability, we see mortgages are up by a whopping 41% since 2012 which, equates to an average monthly payment of around $3K a month. Considering wages have been stagnating for years, its puzzling how so many consumers can manage but, when facing rents that are maybe only a few hundred dollars less than a mortgage, a lot of consumers realize buying is the smarter move. Supply is also contributing to the rise in prices as last year an average of 5,965 homes were listed for sale on broker networks which, was down by 2% in 2015. Another note of interest is building is on the rise. Orange County hired 11,600 new construction workers last year which, was an uptick by 5.5%. With building on the move, its safe to say real estate investors arent going forward with projects without having done economic forecasting which, looks promising at the moment.

  • A new study out from the Journal of Housing Research has revealed that pricing your home just below a round number i.e. $299,999 will likely entice more prospective buyers versus using a number riddled in zeros. The crux of it is consumers will tend to round down rather than up so that $299,999 will appear more as $200,000. Also, research suggests consumers make left to right comparisons and when shown price reductions which were the same only reflected with differing numerical values, the reductions ending in 9 were perceived as the better deal despite them being the same.

    The bottom line is weve been conditioned to think bargain when we see a price ending in the number 9 and when selling your property its advantageous to capitalize on this psychology. Youll likely sell your home faster, for more money.

  • If you're looking to refinance using the HARP program, we have good news. The program, created back in 2009, was due to expire Dec. 31, 2013. As the housing market stalled, the agency has continued to extend the expiration date which greatly contributed to the stabilization of the housing market. The FHFA is expected to unveil a new finance program in 2017 and bridging the gap between the two offers security to borrowers.

    In a press release on behalf of the agency it was stated, The new refinance offering will provide much-needed liquidity for borrowers who are current on their mortgage but are unable to refinance through traditional programs based on their LTV ratio exceeds the maximum limit.

    These kinds of efforts have proven to be effective and shows the FHFA is a viable agency. This latest edition only further displays their effectiveness and continues to demonstrate their market savvy.

  • A recent report by ReportsOnHousing which tracked the home sales in nine Orange County markets has further demonstrated the fact that we continue to be in a sellers market. On the whole, inventory is still tight and homes are selling relatively quickly but this may be a temporary situation.

    The fastest selling homes were in Cypress where the average length of time on the market was 17 days. As of May 19th, there were 44 homes on the market with an average asking price of 683K, which was down 27% from a year ago.

    La Palma was the second most active with eight homes listed at an average price of 644K but supply was down 56% in a year.

    Portola Hills came in third with 8 homes listed where the average price was 760K and a market time of 22 days. Supply there was down 27% in a year.

    Further down the list at No. 9 was Buena Park with 66 homes listed average price $576,000 vs. 62 new escrows for a market time of 32 days. Inventory is lower by 36 percent in a year.

    Despite the fact that we're in a sellers market, it may not be wise to push your limits. With construction on the rise and more sellers entering the market wanting to cash in, the current market conditions may not be sustainable.

    If you're looking to sell, consult a Realtor, like us, to market your property accordingly. We will know the market and are best qualified to maximize whatever equity you might have in your home.

  • If you're feeling the pain of high rents in Southern California don't look for things to change anytime soon.

    New home construction is not keeping up with demand causing an uptick in rents which puts increased pressure on renters who are on a budget.

    According to a USC Casden Multifamily Forecast, the average rent in LA County is expected to hit $1,416 a month in 2018, an 8.3% increase from a year ago, while in the OC, average rents are projected to rise 9.4% to an average of $1,736.

    These forecasts come on the heels of news of 38,000 building permits being pulled across Southern California, an obvious sign we are in the midst of a housing shortage.

    Population and employment growth are driving up demand faster than new inventory can hit the market," said Raphael Bostic, Interim Director of the USC Lusk Center for Real Estate.

    California has a history of not keeping up with housing demand which, again is the leading cause of higher prices. The job market in Southern California has also become increasingly competitive, a good sign for the economy and another factor contributing to the upward trend.

    This Spring is likely to be a very busy season in real estate and its looking like a seller's market. Interest rates are still low and if you're sharp and knowledgeable about where to look, there are still some bargains out there. Be prepared to move quickly and get pre-approved for a loan. You'll be well-prepared to jump on an opportunity at a time when inventory is relatively low.

    Thank you for reading our latest real estate blog. For more information, contact us The Wise Team by calling/texting (714)698-WISE or emailingDustinandLeah@TheWiseTeamOC.com. As always, if you or someone you know is looking for assistance with purchasing a home, selling a house, or leasing Wed love to speak with you!

  • Terrorism. National security. The Crisis of 08. Job security. These concerns have defined our time and are making Americans think long and hard about whether or not the American Dream is still worth pursuing. According to the Value Insured Modern Homebuyer Survey, 72% of millennials admitted that the crash of 08 has impacted their decision to either purchase or upgrade their home. The survey also revealed that 68% of Americans and 81% of millennials said they would have already purchased a home if they would have had more confidence in the market.

    The survey also said that the global economy has 63% of Americans and 70% of millennials worried. Other concerns include national security where 48% of Americans and 61% of millennials are worried and job security where 55% of Americans and 71% of millennials are on edge.

    The thing to keep in mind is that the crisis of 08 was an anomaly and real estate is still a sound investment. People will always need a place to live and as supply continues to tighten the prices will always go up. It's simple economics and it never fails so if you view real estate as a gamble, think again. Its rock solid.

  • Experts are saying that after a decade of a repeating bubble-and-bust cycle, the housing market is stabilizing with supply and demand. This means that prices are going up at an acceptable rate which is good news because the volatility was not good for the economy.

    In 2015, home prices hit numbers last witnessed at the peak of the housing bubble. This was after 4 years in a row of increases. In fact, the median went above $600,000 for the 1st time in 8 years.

    Specifically, at the end of 2015, median home prices were up over $187,000 from the worst part of the recession. This helped those who purchased homes 2 or 3 years ago to see gains from the market. In fact, as an example, a 2-bed, 2-bath home in Sane Juan Capistrano that was purchased for $475,000 in mid 2013 would now be worth at least $70,000 more (According to Zillow/Redfin). Even bigger jumps were seen in The City of Orange where the average home increased in value by over $130,000.

    Another good sign of stabilization is that foreclosures, short sales, and bank-owned homes have nearly disappeared. In Orange, 1 in 8 homeowners lost their homes during the depression, so this turnaround is very encouraging. Overall, its safe to say that the housing market is doing better and experts predict it will only improve over the course of 2016.

    Thank you for reading our latest article. If you, or someone you know, are thinking about buying a home or selling a house, then please do not hesitate to contact us The Wise Team. We can be reached by calling 714-698-WISE (9473).

    We look forward to hearing from you!

  • The Internal Revenue Service has released new tax return data that shows about 5 million people left California between 2004 and 2013. During that same period, approximately 3.9 million people came to the state from other states.

    The net loss of about 1 million people has resulted in the loss about $26 billion in annual income in the state. Of all the states, most Californians moved to Texas approximately 600,000 people to be exact. Experts believe that a major cause of the exodus was that California was hit much harder than most other states by the housing boom, bust, and recession.

    Interestingly, most of these people left during them housing boom because they were not able to afford a home. Then, during the recession, many people lost their jobs and homes and decided to move to places with more job opportunities. Even though so many Californians left, the states population continues to grow because of birth rates and people moving to the state from other countries.

    The most common states that Californians moved to were:

    TexasArizonaNevadaWashingtonOregon

    The most common states that people moved to California from were:

    New YorkMichiganIllinoisMassachusettsNew Jersey

    Thank you for reading our latest article. If you, or someone you know, are thinking about buying a home or selling a house, then please do not hesitate to contact us The Wise Team. We can be reached by calling 714-698-WISE (9473).

    We look forward to hearing from you!

  • The Latest numbers are showing that house hunting season is heating up. Orange County in particular is seeing a huge boom with 2,891 new escrows being opened within in a 30-day period that included most of February. This number is double what it was when the year began, and up 18% from a year ago.

    Notably, supply is not increasing with the demand. The number of homes in the county that are currently listed has remained essentially unchanged from a year ago hovering around 5,500. The current average amount of time a home remains on market before closing is about 56 days, which is the 2nd fastest for this time of year since the Great Recession. This time last year the number was around 66 days.

    In other words its currently a sellers market. The majority of sales were resale homes sold through the broker system, but new home developers are also reporting a strong rebound in their sales for the month of February. Overall, purchases of new homes in Orange County have doubled in the past two years.

    With real estate experts predicting that FHA rates will increase over the year, it may be a sellers market due to supply and demand, but it is still wise to purchase a home now before rates go up.

    If you want to work with professional real estate and community experts to find your next home, or if you need someone to expertly list, market, and sell your house, then contact us here at The Wise Team. You can reach us at 714-698-WISE.

  • As you can see, the National Association of REALTORS have done the research for you. Last month, buyer activity was THREE TIMES greater than what is was exactly a year before. What does this mean? There is a high demand for homes right now. So what about home supplies?

    Clearly, home inventory has taken a very big dip. In fact, its the lowest is has been in over a year. So demand is high, supply is low basic economics is telling you that NOW is the time to list your home. You are more likely to get several competing offers from several interested buyers landing you an offer of what your home is truly valued at, or even more.

    If you want to work with professional real estate and community experts who will expertly list, market, and sell your home, then contact us here at The Wise Group. You can call us at 714-698-WISE.

  • Currently there are many great incentives to make that real estate move that youve been thinking about. Read on to see 3 reasons to buy, sell, or refinance right now!

    Just 3% Will Get You in The Door!

    In December of 2014 Fannie Mae and Freddie Mac announced they will start backing mortgages with as little as 3% down. Previously, the minimum down payment for these loans was 5%. With tax returns coming in the next few months this makes buying a home in Orange County even more viable. When you consider that a townhome in most of inland North Orange County ranges between $250,000-$350,000 (depending on location, size, amenities, etc) that is only a down payment of $7,500-$10,500.

    Source

    FHA Loan Payments Have Become More Affordable.

    On January 7th President Obama announced that the Federal Housing Administration (FHA) will lower its fees for mortgage insurance. Currently the mortgage insurance rate is 1.35% and the new proposed rate is 0.85%. This is a substantial savings and will save most borrowers hundreds of dollars each month!

    Source

    The Current, Historically-Low Rates Will Not Last Long

    As of 1-15-15 interest rates for a 30 year fixed conventional loan are starting as low as 3.5% and 30 year fixed FHA loans are as low as 3.25%. Thats almost free money and considerably lower than they were just a few short months ago.

    Source

    Do you have questions about any of this data? Are you interested to find out what your next step is? Who knows how long these interest rates will be this low! Call, text or email us today to take advantage of this rare opportunity!

    Dustin and Leah WiseThe Wise TeamKeller Williams Realty(714)698-WISEDustinandLeah@TheWiseTeamOC.comBRE #s 01762984 01520106

  • Fannie Mae and Freddie Mac announced they plan to suspend evictions on foreclosed single-family properties nationwide during the holidays, from Dec. 17, 2014 through Jan. 2, 2015.

    Legal and administrative proceedings for evictions may continue, as well as pre-foreclosure activities, but families who are living in foreclosed homes will be allowed to remain in their homes during that time.

    Freddie Mac says that the foreclosure moratorium applies to all foreclosed occupied single-family homes as well as properties with two to four units that have mortgages owned or guaranteed by Freddie Mac.

    Todays announcement will bring some holiday relief to borrowers who went through foreclosure and were preparing to move, Chris Bowden, senior vice president of REO at Freddie Mac, said in a statement.We strongly urge home owners with financial challenges to start the New Year by calling their mortgage servicer to explore one of the Freddie Mac workout optionsthat have prevented over 1 million foreclosures since 2009.

    The foreclosure moratorium has become a holiday tradition, which Freddie Mac and Fannie Mae both have extended the past few holidays.

    As in previous years, we believe it is important to extend the timeline of help for struggling borrowers during the holidays, says Joy Cianci, senior vice president of credit portfolio management for Fannie Mae.If you are in trouble or facing foreclosure, reach out to Fannie Mae or your servicer today to get help.There are more options than ever before to avoid foreclosure. We want to help struggling borrowers whenever possible.

    Fannie Mae reports that it has completed more than 1.6 million loan workout solutionsto help distressed families avoid foreclosure since 2009.

    Source:Freddie MacandFannie Mae

  • Expect the home-purchase market to strengthen along with the economy in 2015, according to Freddie Macs U.S. Economic and Housing Market Outlook for November.

    The good news for 2015 is that the U.S. economy appears well-poised to sustain about a 3 percent growth rate in 2015 only the second year in the past decade with growth at that pace or better, says Frank Nothaft, Freddie Macs chief economist. Governmental fiscal drag has turned into fiscal stimulus; lower energy costs support consumer spending and business investment; further easing of credit conditions for business and real estate lending support commerce and development; and consumers are more upbeat and businesses are more confident, all of which portend faster economic growth in 2015. And with that, the economy will produce more and better-paying jobs, providing the financial wherewithal to support household formations and housing activity.

    Freddie Mac economists have made the following projections in housing for the new year:

    Mortgage rates:Interest rates will likely be on the rise next year. In recent weeks, the 30-year fixed-rate mortgage has dipped below 4 percent. But by next year, Freddie projects mortgage rates to average 4.6 percent and inch up to 5 percent by the end of the year.Home prices:By the time 2014 wraps up, home appreciation will likely have slowed to 4.5 percent this year from 9.3 percent last year. Appreciation is expected to drop further to an average 3 percent in 2015. Continued house-price appreciation and rising mortgage rates will dampen affordability for home buyers, according to Freddie economists. Historically speaking, thats moving from very high levels of affordability to high levels of affordability.Housing starts:Homebuilding is expected to ramp up in the new year, projected to rise by 20 percent from this year. That will likely help total home sales to climb by about 5 percent, reaching the best sales pace in eight years.Single-family originations:Mortgage originations of single-family homes will likely slip by an additional 8 percent, which can be attributed to a steep drop in refinancing volume. Refinancings are expected to make up only 23 percent of originations in 2015; they had been making up more than half in recent years.Multi-family mortgage originations:Mortgage originations for the multi-family sector have surged about 60 percent between 2011 and 2014. Increases are expected to continue in 2015, projected to rise about 14 percent.

    Source = Realtor Mag

    Dustin and Leah Wise

    The Wise Team

    Keller Williams Realty

    DustinandLeah@TheWiseTeamOC.com

    714.698.WISE Call/Text

    BRE License #s 01762984 01520106

  • A recent slowing in home price increases due to many areas having a big jump in for-sale inventories is signaling that the real estate market is seeing a change from a sellers to a buyers market. Due to these factors, many are predicting that there will be an above average surge in home sales during the fall months.

    If you are one of those home buyers who has been waiting for better prices, you are likely to be satisfied with the upcoming drops in listing prices. Indeed, analysts at Redfin believe that September and October will see pricing changes benefiting the buyer.

    We continue to see strong buyer demand as we head into fall, stated Redfins housing report, which shows the number of tours and offers picking up from July into August. The buyer fatigue from competing against multiple offers, bidding wars, and tight inventory is diminishing. Additionally, the widespread increase in price drops is likely to give buyers even more confidence that they have regained some of the bargaining power lost last year.

    Areas like Ventura County have seen moderate price growth since last year, but also, for-sale inventories have gone up over 25%. As such, Ventura County has had the 2nd largest percentage of homes for sale that have dropped in price over the month of July. Notably, the Los Angeles market itself does continue to sell at rates that tend to be higher than the list price. However, because borrowing costs are very reasonable right now, this is encouraging more buyers to make offers.

  • The average list price for single family homes in Buena Park for the month of July 2014 is $576,101. That is up compared to July 2013 when the average list price was $548,084.

    Average days on market for July 2014 is 85 which is also up when compared to one year ago when the average was nearly half that at 47 days on market.

    The July average sale price is up slightly from last year to $474,762 when compared to $460,272 from last July. That price is down though from May of 2014 when the average sale price was $523,069.

    Listing inventory levels havent changed much. July of 2014 was at 2.73 months of inventory while last July was 2.35. According to local economists and housing experts this is an indication that we are still in a sellers market. They claim 5-6 months of inventory is a normal market and anything more than that would indicate a buyers market.

    For questions or more information reach us directly!

    Dustin and Leah Wise

    The Wise Team

    Keller Williams Realty

    (714)698-WISE

    DustinandLeah@TheWiseTeamOC.com

    6101 W. Ball Road Suite 212

    Cypress, CA 90630

    BRE No.s 01762984 01520106

    All data extracted from CRMLS Matrix.

  • A recent slowing in home price increases due to many areas having a big jump in for-sale inventories is signaling that the real estate market is seeing a change from a sellers to a buyers market. Due to these factors, many are predicting that there will be an above average surge in home sales during the fall months.

    If you are one of those home buyers who has been waiting for better prices, you are likely to be satisfied with the upcoming drops in listing prices. Indeed, analysts at Redfin believe that September and October will see pricing changes benefiting the buyer.

    We continue to see strong buyer demand as we head into fall, stated Redfins housing report, which shows the number of tours and offers picking up from July into August. The buyer fatigue from competing against multiple offers, bidding wars, and tight inventory is diminishing. Additionally, the widespread increase in price drops is likely to give buyers even more confidence that they have regained some of the bargaining power lost last year.

    Areas like Ventura County have seen moderate price growth since last year, but also, for-sale inventories have gone up over 25%. As such, Ventura County has had the 2nd largest percentage of homes for sale that have dropped in price over the month of July. The Los Angeles market itself does continue to sell at rates that tend to be higher than the list price. Finally, because borrowing costs are very reasonable right now, this is encouraging more buyers to make offers.