Home Sales And Sketchy Headlines
Real Estate Realities With The RebelBroker
Release Date: 02/27/2023
NAR Settlement - For Buyers And Sellers
Real Estate Realities With The RebelBroker
The NAR settlement is in the final stages of approval and will likely go into effect in the middle of July 2024. It is not an understatement when I say that this change to how buyers agents are being compensated will introduce chaos into the real estate world until the systems in place adapt to this new reality. BUYERS HIT HARDEST These changes will leave Buyers having to directly pay their agents themselves. However, none of the current systems in place, including lending, are ready for this change. While it will lead to many more options for buyers in terms of representation, it also...
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California Deficits And Taxes 2024
Real Estate Realities With The RebelBroker
Things are looking rough for California residents in 2024. A nearly $100 billion dollar surplus has been turned into $73 billion (and growing) deficit. Sadly, the solution from Sacramento seems to be doubling down on the policies that are causing many of these issues. New changes to the law have been proposed that will be voted on later this year designed to make it easier for California politicians to raise taxes. In addition, this approach seems poised to try and challenge the one thing that has at least kept property taxes at bay - proposition 13. Instead of making the needed...
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Digital Curb Appeal
Real Estate Realities With The RebelBroker
Welcome to "Real Estate Realities with The RebelBroker" – your go-to podcast for expert insights into the dynamic world of real estate. In this episode, we delve into a crucial aspect of selling your home: digital curb appeal. In today's digital age, first impressions are made online. Potential buyers scroll through listings, making split-second decisions based on visual appeal. That's where mastering digital curb appeal comes in. Join us as we explore the art of crafting compelling digital presentations for your property. From stunning photos capturing every angle to immersive virtual tours...
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Local Pending Sales Vs. The National Trend
Real Estate Realities With The RebelBroker
In this episode, dive deep into the intriguing world of real estate data with Robert Whitelaw, the seasoned real estate broker from Morgan Hill, California. Join us as we unravel the disparities between pending home sales on a national scale and the dynamic market of Santa Clara County. 📊 Key Takeaways: Analyzing the latest trends in pending home sales nationwide. Unveiling the unique factors influencing Santa Clara County's real estate landscape. Expert insights into what these divergences mean for both buyers and sellers. Whether you're a seasoned investor or a first-time homebuyer,...
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De-Mystifying Home Status
Real Estate Realities With The RebelBroker
Welcome to "Real Estate Realities with The RebelBroker," your go-to podcast for demystifying all things relating to real estate, including the status of homes for sale! Join us as we navigate the dynamic world of real estate, providing valuable insights and expert analysis. 🏡 Unlock the Secrets: Delve into the nuances of home listings – from active and contingent to pending and sold. We break down the complexities, empowering you with the knowledge needed to make informed decisions. 🔍 Insider Perspectives: As a seasoned real estate broker with over 35 years of experience, The...
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What's Wrong With Real Estate Agents?
Real Estate Realities With The RebelBroker
Welcome to another eye-opening episode of "Real Estate Realities with The RebelBroker"! Today, we're diving deep into a topic that affects both seasoned and aspiring real estate agents—the real problems plaguing today's real estate professionals. Join me as we explore the notion that bad agents are made, not born. Many agents are trained to prioritize quantity over quality, a trend that leads to a decrease in overall service quality. As agents focus on increasing their transaction numbers, key metrics that matter to clients often fall below average. We'll uncover shocking examples, like a...
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New FHA 5% Down Multifamily Loan!
Real Estate Realities With The RebelBroker
Welcome to another edition of Real Estate Realities! Today we are covering the FHA loan for multifamily purchases that just got WAY better. In fact, it makes it possible for much easier house hacking! Don't know what house hacking is? Not sure why I am so excited about changes to a loan? Then make sure to check out todays show and realize that this could be the first step in reaching your real estate empire goals! —————————————————————————————————————————————————— ➡️ Instagram: ...
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Questioning the $1.8B Realtor Conspiracy Verdict
Real Estate Realities With The RebelBroker
In this episode of Real Estate Realities with The RebelBroker, we delve deep into the crucial topic of compensating real estate agents when selling your home while keeping in mind the recent court case where Sellers won a $1.8 billion judgement against the National Association of Realtors and a number of real estate brokerages. Finding the right compensation structure is pivotal for buyers, sellers and agents, impacting the quality of service and the overall success of the transaction. This latest court case covers ground that have been visited many times over the years. However, in todays...
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Interest Rates Hit 23 Year High!
Real Estate Realities With The RebelBroker
As interest rates snuggle up to 8%, we find ourselves in a place that we have not been in 23 years! An entire generation of business people, home buyers and home sellers have become comfortable with interest rates in the sub 5% range. So what will this interest rate mean for home buyers, sellers and investors? Could this be the element that finally tips the scales and causes a boost in inventory that brings down sales prices? We will explore all of that in todays podcast! ...
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2023 California Rent Control Laws Will Ruin The Rental Market
Real Estate Realities With The RebelBroker
Welcome to "Real Estate Realities with The RebelBroker," the ultimate destination for in-depth explorations of recent California rent control real estate law changes. With our finger on the pulse of recent California legal changes, todays podcast serves as your comprehensive guide to understanding the nuances of the ever-evolving legal landscape governing landlords, tenants, and homeowners in the Golden State and California rent control efforts that seem to grow each year. In today's show, we embark on a journey through the recent law changes in California, unraveling their impact on property...
info_outlineWhen headlines imply things are better than they feel, it is always good to take a closer look. January home sales headlines are a good example.
The Latest Headlines
In the most recent headlines for the home sales number in January, you could be forgiven for thinking that things are looking up. Sadly, that is not the case. At least, it is not giving the right overall impression as they focus on month to month numbers instead of year over year numbers. So today, we are going to look at the real numbers, but also compare those national and regional numbers to what we are seeing right here in Santa Clara County.
New Home Sales
The U.S. new-home sales rose 7.2% to a seasonally adjusted rate of 670,000 in January, up from a revised 625,000 in the prior month, the Commerce Department reported on Friday. However, the year-over-year new-home sales are still down by 19.4%, which indicates a decline in the housing market. Regionally, the South led the U.S. in the number of new homes sold, with the figure surging by 17.1%, while sales of new homes dropped across the rest of the country—most sharply in the Northeast, by 19.4%.
Despite the overall decline in home sales, home builders are offering incentives like mortgage-rate buydowns to entice buyers, and it’s working. However, mortgage rates crept back up this month, which is prompting more buyers and sellers to back off. Home-purchase applications dropped to the lowest level since 1995 last week as mortgage rates jumped on expectations that the Federal Reserve will need to raise interest rates again to combat inflation. The average 30-year-fixed mortgage rate is now 6.5%, up from an average of 6.27% in January and 3.89% a year ago. That has caused the typical home buyer’s monthly payment to rise more than $500 year over year.
Some Existing Home Sales Numbers
Closed home sales fell 1.4% from a month earlier in January and slumped a record 36.6% from a year earlier. Many homeowners are reluctant to sell because they don’t want to give up their relatively low mortgage rates. About 85% of mortgage holders have a rate far below today’s level of roughly 6%. The median sale price of homes nationwide was $383,249 in January, down 1.4% from December and 11.5% below the May all-time high. Still, prices were up 1.5% from a year earlier, in part because low supply kept prices afloat.
Mortgage Rates And New Home Incentives
The housing market is facing challenges due to rising mortgage rates and inflation. Many home buyers are now hesitant to make a purchase due to the increased cost of borrowing. In addition, many homeowners are holding onto their properties because they have low mortgage rates, which is creating a shortage of homes for sale. This supply-demand imbalance is leading to higher prices for the homes that are available on the market.
Despite the challenges, home builders are continuing to offer incentives to buyers to entice them into the market. These incentives may include mortgage-rate buydowns, cash-back offers, or other perks. The incentives are helping to keep the market afloat, but they may not be enough to reverse the overall decline in home sales.
Different Regions, Different Results
The decline in home sales is not uniform across the country. The South, which is the largest region in the U.S., saw a surge in new-home sales, while the Northeast saw the sharpest decline in sales. The regional disparities in the housing market may be attributed to a variety of factors, such as job growth, affordability, and population growth.
The housing market is facing significant challenges due to rising mortgage rates and inflation. Home buyers are now more cautious about making purchases due to the higher cost of borrowing. In addition, many homeowners are reluctant to sell because they have low mortgage rates, which is creating a shortage of homes for sale. While home builders are offering incentives to entice buyers, the market is likely to remain weak until there is more stability in the economy and interest rates.
SOURCES:
- https://www.forbes.com/sites/brendarichardson/2023/02/25/high-housing-costs-low-supply-hamper-market-recovery-in-january/
- https://www.realtor.com/news/real-estate-news/u-s-new-home-sales-rise-by-7-2-despite-weakness-in-the-broader-sector/
- https://www.mortgagenewsdaily.com/mortgage-rates/30-year-fixed