Sunday, June 26, 2016

‘Brexit’ Could Give U.S. Real Estate Brief Boost

Britain's vote to exit the European Union will likely have a long-term impact on the world economy, but in the short-term, U.S. real estate could be flooded with investors flocking to the U.S. as a safe haven, pushing up the dollar and sending down mortgage rates.
"Demand for U.S. real estate could rise," says NAR Chief Economist Lawrence Yun.
On the commercial side, global corporations could show additional interest in U.S. real restate as they come to see the U.K. as a less certain place to set up or maintain their businesses, Yun says, "especially in London, as it becomes a less attractive place to conduct global business."
While a rise in the dollar could hurt U.S. exports, it's also expected to put downward pressure on long-term mortgage interest rates. "Mortgage rates will tumble," says Greg McBride, chief financial analyst at Bankrate.com, "possibly hitting new record lows. If you're a borrower, don't wait to lock in your rate, as this opportunity may not last long."
However, Fannie Mae Chief Economist Doug Duncan says low rates because of economic uncertainty could last for a while. "The Fed will very likely be on hold for some time as it observes the impact on U.S. and global financial markets and economic activity," he says.
If mortgage rates — already at historic lows — drop even further, that could help drive up sales of all types of U.S. real estate, including on the residential side. Foreign households who might have otherwise looked to London to buy might turn to U.S. residential real estate, although U.K. citizens, who historically are among the top buyers of investment and vacation homes in the U.S., could pull back. "The British economy will be disrupted, and hence we should expect fewer Brits able to buy in the U.S.," Yun says.
Steve Rick, chief economist at CUNA Mutual Group, was quoted in a Bankrate.com article saying a further drop in mortgage interest rates could give new life to home-mortgage refinancing, which started to cool early this year after several years of big growth. "This would create another mini refinance mortgage boom at financial institutions, as homeowners rush to lock in near-historic low interest rates," he said.
In the long run, though, the uncertainty stemming from the vote could cause broad global weakening, which would hurt jobs, income, and consumer confidence. That would be a net-negative for U.S. real estate, even if it sees gains in the short-term.   
—Robert Freedman, REALTOR® Magazine

This Summer, Homes Are Selling Faster



Homes for sale in June are selling 2 percent more quickly than last year as prices soar to record highs, according to new data on inventory and user activity on realtor.com®.
The median age of inventory nationwide for June is projected to be 65 days, which is 2 percent less than a year ago. One-third of the 300 medium to large markets surveyed posted a month-over-month drop in days that homes spent on the market. Some markets even posted a double-digit drop.
“Continuing this spring’s trend, pent-up demand from buyers who weren’t able to purchase a home last year, combined with low inventory, pushed up prices and got homes to sell quickly,” realtor.com®’s report notes.
For-sale inventory typically increases this time of season, however, total inventory still remains lower than last year at this time. An estimated 525,000 new listings are expected to come onto the market by the end of the month. Still, compared with June 2015, listing inventory dropped 5 percent.
The low inventories are pushing up home prices. The median home list price was $252,000 in June – 8 percent higher than a year ago, realtor.com® reports.
“However, much of the effect of higher prices is being offset by mortgage rates that are the lowest we’ve seen in three years,” Smoke notes.
Source: “America’s 20 Hottest Real Estate Markets for June 2016,” realtor.com® (June 23, 2016)

Thursday, June 23, 2016

8 Critical Trends in Real Estate

Every year, the Counselors of Real Estate, a group of real estate professionals who hold the CRE designation and seek to offer unbiased guidance on real estate topics, offers a list of major issues that they feel could affect the industry.
Learn what the implications of these potential shifts could be for your business. 
  1. Shifts in the World Economy
In response to economic and political uncertainties, the International Monetary Fund amended GDP growth to spiral downward for much of the globe in 2016 and 2017.

Implications for real estate: The CRE sees China as the primary competition in this sector, having capped a five-year real estate investment total to more than $110 billion. They caution that economic deceleration could lead to lower investment in infrastructure worldwide.
  1. Lending Issues
CRE is predicting lending for commercial projects will decrease as many insurance companies, bank lenders, and debt markets reach allocation limits. Further, the group sees no legislative action on the horizon to change retention rules set to go into effect this summer.
Implications for real estate: With more restrictions on risky commercial real estate lending, CRE predicts it’ll be tough to finance projects. But the group also sees this as an opportunity for “other, less regulated lenders to enter the market,” including crowdfunding.
  1. Demographics
The millennial population is growing as approximately 10,000 baby boomers as retire each day, according to The CRE. The group finds an increasing number of buyers from every generation want homes in the same places.
Implications for real estate: CRE predicts continued strength in multifamily, and growth in boomer-focused housing offering medical, assisted living, and memory care services. In retail, expect more “experiential” shopping/dining/entertainment destinations, but nothing too luxurious as wages continue to stagnate.
  1. Increased Urbanization
To cater to the demands of urbanization, a thriving live-work-play rental market will see higher migrations of residents and businesses seeking densely populated areas, according to CRE research.
Implications for real estate: Suburbs will see increased pressure to urbanize, and “high density mixed-use centers” that offer transit, luxury living spaces, retail, work space, and entertainment will continue to be popular. Watch out for specialized spaces centered around “innovation” and “education” hubs.
  1. Unattainable Affordability
The CRE says affordable homes and flexible credit have grown more unattainable, which challenges both the rental and homeownership markets. The lack of housing inventory is another contributing factor.
Implications for real estate: As buyers flock to purchase starter homes, micro homes may provide affordable alternatives for millennials.
  1. Energy Affecting Development
The instability in the oil industry has not only been a threat to global economic security, it also has led to the restriction of commercial real estate debt in some areas.
Implications for real estate: According to the CRE, oil instability—currently at its highest level in 50 years—stunts economic growth and job opportunities in areas where production is prevalent. Demand from China could turn this around, but it remains a volatile market that could affect development.
  1. The Sharing Economy
Airbnb and Uber, companies that operate outside traditional regulations and offer alternatives for employment are two examples that show how the sharing economy is becoming more firmly established.
Implications for real estate: Just as Uber caused taxi revenue to decrease, shared and virtual office spaces could negatively impact commercial real estate values.
  1. Online Retail
According to the CRE, traditional retail is beginning to thrive in an e-friendly cyberspace, expanding its reach and adhering to downsizing trends.
Implications for real estate: With product purchases shifting to online, a shift from large chains to neighborhood shops is key to attracting consumers while building profit, according to the CRE. Many customers today visit retail locations for the experience alone.
Source: “The CRE 2016-2017 Top Ten Issues Affecting Real Estate,” The Counselors of Real Estate (June 8, 2016).

Monday, June 20, 2016

The Best Choices for Pet-Friendly Flooring



If you're looking for pet-friendly flooring, you can't go wrong with porcelain tile. A recent article from This Old House points out that not only is porcelain tile moisture-proof, it's also not prone to scratches.
Concrete can also be a good flooring choice. Epoxy grout (tile) or an epoxy finish (concrete) can help minimize the upkeep further.
Prime Homes for Pets
Hardwood flooring – particularly oak, hickory, or Brazilian cherry – can also be a good options for pets. “Prefinished wood floors with a factory-applied aluminum oxide top coat resist scratches and dings best,” This Old House notes. “A matte penetrating-oil finish can disguise scuffs and is less slipper – just touch up nicks with a stain pen or putty.”
Vinyl and linoleum also can be a good low-maintenance option. However, frequent pet accidents eventually can become an issue with these flooring types since they are glued-down.
Some of the worst options are laminate (it can be prone to moisture damage and noisy with pet feet) and carpets and rugs (prone to staining).
Source: “Ground Rules for Dog-Friendly Flooring,” This Old House (June 2016)

Newbury Park Home for Sale!


Located on a nice cul-de-sac which leads to walking trails and community amenities.


Light and bright spacious floor plan with vaulted ceilings.


Enjoy this cozy fireplace while relaxing in your living room.


Put your culinary skills to work in this beautiful updated kitchen that overlooks back yard.


Lounge in this quiet and peaceful yard that is drought resistant.


Have fun on the tennis courts that are within walking distance of the home.


Relax and enjoy the refreshing pools on those hot summer days.

Contact Angela Yglesias at 805.490.4944 and/or yglesias75@gmail.com for a showing of this lovely property!  Outstanding schools, and close to shopping and restaurants!!!  You don't want to miss this!

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Sunday, June 12, 2016

Mortgage Rates Dip After Bad Jobs Report

On the heels of this week's negative jobs report, long-term U.S. mortgage rates dropped for the first time in three weeks.
According to Freddie Mac, this drop marks the 10th consecutive week the 30-year mortgage rate averaged under 3.7 percent, which is allowing buyers an extended chance to lock in low rates during housing's busiest time of year.
"Growing optimism about the state of the economy was quickly erased with May's employment report," says Sean Becketti, Freddie Mac’s chief economist. "The disappointing release caused an immediate flight to quality resulting in the 10-year Treasury yield dropping 10 basis points on Friday."
Freddie Mac reports the following national mortgage rate averages for the week:
  • 30-year fixed-rate mortgages: averaged 3.60 percent with an average 0.5 point this week, down from its average of 3.66 percent last week. A year ago rates averaged 4.04 percent. 
  • 15-year fixed-rate mortgages: this week averaged 2.87 percent with an average 0.5 point, down from last week when it averaged 2.92 percent. A year ago rates averaged 3.25 percent. 
  • 5-year hybrid adjustable-rate mortgages: averaged 2.82 percent this week with an average 0.5 point, down from last week when it averaged 2.88 percent. A year ago, the 5-year ARM averaged 3.01 percent.
Source: Freddie Mac

Realtor in Thousand Oaks, Conejo Valley

I help people selling their homes get them sold quickly and almost always at 100% asking, even over in some markets. I save my real estate b...