Mohammed Salim Shaikh (Realtor, Corona)

Homeownership Is an Investment in Your Future There are many people thinking about buying a home, but with everything affecting the economy , some are wondering if it's a smart decision to buy now or if it makes more sense to wait it out. As Bob Broeksmit, President and CEO of the Mortgage Bankers Association (MBA), explains : " The desire for homeownership is strong . Many prospective buyers are waiting for the volatility in mortgage rates to subside, as well as for a clearer picture of the economic outlook." If you're in that position, remember that it's important to consider not just what's happening today but also what benefits you may gain in the long run. There's a lot of information out there about how homeownership helps build a homeowner's net worth over time. But even today, many people think first about things like 401(k)s before they think of owning a home as a wealth-building tool. It's especially important if you're a youn

Reasons To Consider Condos in Your Home Search Are you having trouble finding a home that fits your needs and your budget? If so, you should know there's an option worth considering – condominiums, also known as condos. According to Bankrate : " A condo can be a more affordable entry point to homeownership than a single-family home. And as a homeowner, you'll build equity over time and have access to tax benefits that a renter wouldn't." That's why expanding your search to include additional housing types, like condominiums, could help you accomplish your homeownership goals this spring, especially if you can be flexible about the space you need. Condos are typically smaller than a single-family home, but that's part of what can make them more budget-friendly ( see graph below ): In addition to providing more options in your home search and possibly your price point, there are several other benefits to condo living. They tend to require less upkeep an

The Role of Access in Selling Your House Once you've made the decision to sell your house and have hired a real estate agent to help, they'll ask how much access to your home you want to give potential buyers. Your answer matters more now than it did in recent years. Here's why. At the height of the buying frenzy seen during the pandemic, there was a rise in the number of homebuyers who put offers on houses sight unseen. That happened for three reasons: Extremely low housing inventory A lot of competition from other buyers wanting to take advantage of historically low mortgage rates And general wariness of in-person home tours during a pandemic Today, the market's changing, and buyers can usually be more selective and take more time to explore their options . So, in order to show your house and sell it efficiently, you'll want to provide buyers with as much access as you can. Before letting your agent know what works for you, consider these five levels of access

What's Ahead for Home Prices in 2023 Over the past year, home prices have been a widely debated topic. Some have said we'll see a massive drop in prices and that this could be a repeat of 2008 – which hasn't happened . Others have forecasted a real estate market that could see slight appreciation or depreciation depending on the area of the country. And as we get closer to the spring real estate market, experts are continuing to forecast what they believe will happen with home prices this year and beyond. Selma Hepp, Chief Economist at CoreLogic , says : " While 2023 kicked off on a more optimistic note for the U.S. housing market, recent mortgage rate volatility highlights how much uncertainty remains. Nevertheless, the continued shortage of for-sale homes is likely to keep price declines modest, which are projected to top out at 3% peak to trough." Additionally, every quarter, Pulsenomics surveys a panel of over 100 economists, investment strategists, and hous

What Buyer Activity Tells Us About the Housing Market Though the housing market is no longer experiencing the frenzy of a year ago, buyers are showing their interest in purchasing a home. According to U.S. News : "Housing markets have cooled slightly, but demand hasn't disappeared, and in many places remains strong largely due to the shortage of homes on the market." That activity can be seen in the latest ShowingTime Showing Index , which is a measure of buyers actively touring available homes ( see graph below ): The 62% jump in showings from December to January is one of the largest on record. There were also more showings in January than in any other month since last May. As you can see in the graph, it's normal for showings to increase early in the year, but the jump this January was larger than usual, and a lot of that has to do with mortgage rates. Michael Lane, VP of Sales and Industry at ShowingTime+ , explains : "It's typical to see a seasonal inc

An Expert Gives You Clarity in Today's Housing Market The housing market has been going through shifts lately. That's why it's so important to work with an industry professional who can be your guide throughout the process. A real estate expert uses their knowledge of what's really happening with home prices, housing supply, expert projections, and more to give you the best advice. Someone who can provide clarity like that is critical right now. Jay Thompson, Real Estate Industry Consultant, explains : "Housing market headlines are everywhere. Many are quite sensational, ending with exclamation points or predicting impending doom for the industry. Clickbait, the sensationalizing of headlines and content, has been an issue since the dawn of the internet, and housing news is not immune to it ." Unfortunately, when information in the media isn't clear, it can generate a lot of fear and uncertainty in the market. As Jason Lewris, Co-Founder and Chief Data Of

Balancing Your Wants and Needs as a Homebuyer This Spring Though there are more homes for sale now than there were at this time last year, there's still an undersupply with fewer houses available than in more normal, pre-pandemic years. The Monthly Housing Market Trends Report from realtor.com puts it this way:  "While the number of homes for sale is increasing, it is still 43.2% lower than it was before the pandemic in 2017 to 2019. This means that there are still fewer homes available to buy on a typical day than there were a few years ago." The current housing shortage has an impact on how you search for a home this spring . With limited options on the market, buyers who consider what's a necessity versus what's a nice-to-have will be more successful in their home search. The first step? Get pre-approved for a mortgage . Pre-approval helps you better understand what you can borrow for your home loan, and that plays an important role in how you'll put

Wondering How Much You Need To Save for a Down Payment? If you're getting ready to buy your first home, you're likely focused on saving up for everything that purchase involves. One cost that's likely top of mind is your down payment. But don't let a common misconception about how much you need to save make the process harder than it could be. Understand 20% Isn't Always the Typical Down Payment Freddie Mac  explains : ". . . nearly a third of prospective homebuyers think they need a down payment of 20% or more to buy a home.  This myth remains one of the largest perceived barriers to achieving homeownership. " Unless specified by your loan type or lender, it's typically not required to put 20% down. This means you could be closer to your homebuying dream than you realize. According to the  National Association of Realtors  (NAR), the median down payment hasn't been over 20% since 2005. In fact, the median down payment today is only 14%.  And it

The Two Big Issues the Housing Market's Facing Right Now The biggest challenge the housing market's facing is how few homes there are for sale. Mark Fleming, Chief Economist at  First American,  explains  the root causes of today's low supply: "Two dynamics are keeping existing-home inventory historically low –  rate-locked existing homeowners   and   the fear of not finding something to buy ." Let's break down these two big issues in today's housing market. Rate-Locked Homeowners According to the  Federal Housing Finance Agency  (FHFA), the  average interest rate  for current homeowners with mortgages is less than 4% ( see graph below ): But today, the typical mortgage rate offered to buyers is  over 6% . As a result, many homeowners are opting to stay put instead of moving to another home with a higher borrowing cost. This is a situation known as being  rate locked . When so many homeowners are rate locked and reluctant to sell, it's a challenge for

4 Tips for Making Your Best Offer on a Home Are you planning to buy a home this spring? Though things are more balanced than they were at the height of the pandemic, it's still a sellers' market. So, when you find the home you want to buy, remember these four  tips  to make your best offer. 1.Lean on a Real Estate Professional Rely on an agent who can support your goals. As  Bankrate   notes : ". . . select the best real estate agent for your needs. They will be a critical part of your home buying process." Agents are local market experts. They know what's worked for other buyers in your area and what sellers may be looking for in an offer. It may seem simple, but catering to what a seller needs can help your offer stand out. 2.Know Your Budget Understanding your  budget  is especially important right now. As Sandy Higgins, Senior Wealth Advisor at  Capstone Financial Advisors ,  puts  it: "Understand your current budget … what are your expenses, how's yo