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Blog Posts in Category: Real Estate

05/08/2022

The New California program for first-time homebuyers will let you borrow a down payment at 0% interest!

The New California program for first-time homebuyers will let you borrow a down payment at 0% interest!

Photo by Kindel Media.
California launched two programs last month to help those interested in becoming homeowners, and one allows first-time homebuyers to borrow a down payment at 0% interest.   more...

04/28/2022

Economists and Real Estate Pros Predict Mortgage Rates Will Hit 6%

Economists and Real Estate Pros Predict Mortgage Rates Will Hit 6%

Photo by Pavel Danilyuk
Mortgage rates have finally hit 5% and if mortgage rates continue on their current trajectory, some experts predict 30-year fixed rates could hit 6% within the next few months. But others say the timeline is a little longer. Whenever rates hit this benchmark, one thing is clear: Though a 6% mortgage rate is still considered historically low, it would signify the highest level for rates in about the last decade.   more...

04/01/2022

Mortgage Refinances Fall Amid Higher Rates!

Mortgage Refinances Fall Amid Higher Rates!

Photo by Andrea Piacquadio.
Mortgage rates took another jump higher last week, taking their toll on current borrowers who might have wanted to refinance. Demand from homebuyers, however, appears to be hanging in for now.   more...

02/22/2022

Tenant protection bill is failing in California Legislature, again

Tenant protection bill is failing in California Legislature, again

Photo by Kimson Doan on Unsplash
Assembly Bill 854 would’ve curbed an owner’s ability to evict tenants using the Ellis Act in rent-controlled jurisdictions. Tenant advocates, racial equity groups, YIMBYs, and even some of their usual opponents wanted to see the bill pass. The cities of San Francisco and Los Angeles — which rarely see eye to eye on housing issues — as well as every Democrat on the Assembly Housing and Community Development Committee, signed on.   more...

02/22/2022

Building Materials Prices Jump in January

Building Materials Prices Jump in January

Photo by Brett Jordan on Unsplash According to the latest Producer Price Index (PPI) report released by the Bureau of Labor Statistics, the prices of goods used in residential construction ex-energy climbed 3.6% in January (not seasonally adjusted). The index was higher by a 25.4% jump in softwood lumber prices and 9.0% price increases for indoor and outdoor paint.
Building materials prices increased 20.3% year over year and have risen 28.7% since January 2020. Over the past four months, the index has climbed 8.4%.   more...

01/28/2022

ATTOM Reports: Home Ownership Is More Affordable Than Renting!

ATTOM Reports: Home Ownership Is More Affordable Than Renting!

On January 6th, 2022, ATTOM released its 2022 Rental Affordability Report, which proves that owning a median-priced home is more affordable than average rents on a three-bedroom property in 666, or 58%, of the 1,154 U.S. counties analyzed in this report. That means major homeownership expenses consume a smaller portion of average local wages than renting.
That can be pretty hard to believe, considering how much the median price of homes skyrocketed since the start of the pandemic, but the data does not lie. Home prices have increased more than average rents and more than average wages in 88% of the counties analyzed.   more...

01/28/2022

Lumber Prices Nearly Triple in Last Four Months

Lumber Prices Nearly Triple in Last Four Months

Following a few months of moderating prices last spring and summer, lumber prices are soaring once again; Disrupting the housing market and harming housing affordability.
Over the past four months, lumber prices have nearly tripled — causing the cost of an average new single-family home to increase by more than $18,600, according to NAHB standard estimates of lumber used to build the average home. This lumber price hike has also added nearly $7,300 to the market value of the average new multi-family home, which translates into households paying $67 a month more to rent a new apartment.   more...

09/29/2021

What Happens After September 30th, 2021?

What Happens After September 30th, 2021?

'The state legislature adjourned this month without extending its eviction moratorium and the terms of AB 832. So, barring any extraordinary effort on either the governor or lawmakers, the state moratorium should, therefore, finally lapse on September 30, 2021. Beginning October 1, 2021, and continuing through March 2022, California will enter into the "COVID-19 Rental Housing Recovery Act." What this means in Alameda County
Nothing at all! For some of you, September 30, 2021, will be the proverbial "light at the end of the tunnel." But for those with rentals in Alameda County, the end of California's moratorium will have absolutely no effect, and properties will remain mired in local "emergency" ordinances, which still effectively prohibit ALL evictions indefinitely. Laws in both Oakland and Alameda County will only expire 60 days after the local emergency ends. Our honest assessment is that regular evictions will not be allowed in Alameda County until 2022 at the earliest. Only cases involving an "imminent threat to health and safety," post-foreclosure, forcible detainer, and at-will tenancies may move forward for the time being. Please reach out to us if these issues relate to your tenancy. What this Means Everywhere Else   more...

08/27/2021

A New Fannie Mae Rule Could Help Renters Qualify for Mortgages

A New Fannie Mae Rule Could Help Renters Qualify for Mortgages

Photo by RODNAE Productions via. Pexels.com
Would-be homebuyers with thin credit files will have a better chance of getting approved for a mortgage if they’ve been paying their rent consistently, thanks to changes to Fannie Mae’s automated underwriting system taking effect next month.   more...

07/29/2021

The Pros and Cons of Owning Multiple Rental Properties

The Pros and Cons of Owning Multiple Rental Properties

Being a rental property owner is something many strive for in their lives. Most of the time, financial advisors recommend owning a rental home is a great investment strategy in building wealth. But, “with great power comes great responsibility,” as you’ll always be required to adhere to the ever-changing local and statewide housing policies and laws. Owning multiple rental properties only ups the stakes, and as with anything else, there are plenty of pros and cons — but that’s where hiring a Property Management company plays a role; we’ll get into that throughout this article too.
Related: How to Hire a Property Manager (Webinar)   more...

07/26/2021

The Cost of Construction Materials is Rising Nationwide

The Cost of Construction Materials is Rising Nationwide

Nationwide, the challenges contractors are experiencing with fast-rising materials costs, uncertain delivery times, and rationing of vital inputs are due to the ongoing global construction struggles with materials shortages and prices.
The steep material cost increases tell only part of the story — One example is a potential shortage of steel form ties used in concrete formwork. The US-based Concrete Foundations Association (CFA), representing cast-in-place contractors, has announced an industry-wide effort to mitigate the shortage.   more...

07/15/2021

The Latest COVID-19 Tenant Relief Act Extension

The Latest COVID-19 Tenant Relief Act Extension

The California Apartment Association has published an array of compliance materials — including an Industry Insight document, an FAQ, and related forms — to help rental housing providers comply with AB 832, legislation signed into law earlier this month that extends the state’s COVID-19 eviction moratorium by three months.
The moratorium had been scheduled to expire with SB 91 on Wednesday, June 30th, 2021 but will remain in effect through September 30th, 2021. AB 832 also expands the existing State Rental Assistance Program to provide landlords with 100% of rent owed by qualifying residents. Compliance materials: The California Apartment Association has published an Industry Insight document and an FAQ to help rental housing providers comply with AB 832. If you are a CAA member, the Industry Insights are accessible for your viewing.   more...

05/28/2021

4 Big Incentives for Homeowners to Sell Now

4 Big Incentives for Homeowners to Sell Now

The housing market keeps sailing along. The only headwind that could take it off course is the lack of inventory for sale. The National Association of Realtors (NAR) reports 410,000 fewer single-family homes for sale this March than March 2020. The key to continued success in the residential housing market is for more listings to come on the market. However, many homeowners are concerned that selling their homes could be challenging for several reasons.
Recently, Homes.com released the findings of a survey that identified these concerns, as well as what it will take for homeowners to feel comfortable selling their houses. Here are the four major homeowner concerns and a quick explanation of what’s happening in the housing market today.   more...

05/28/2021

Facts About Selling a Home to Your Family

Facts About Selling a Home to Your Family

It’s not uncommon to wish to sell a home to a family member, but it can become a tricky situation. You have to be mindful of not only the personal elements that can come with doing this type of transaction with a relative, but the IRS may also scrutinize the transaction if you don’t avoid certain red flags. It’s perfectly legal to sell a home to a family member as long as you’re not just doing it to avoid taxes. If you’re selling the property at a steeply discounted rate, you might have to pay an estate and gift tax, but beyond that, it’s just like any other real estate transaction.
Owner-Financed: One option if you’re selling your home to your child, for example, is to select an owner-financed sale. Then, your family member would make payments to you instead of a bank. However, you’ll need to legally arrange it so that if your relative defaults, the home goes back to you automatically, enabling you to sell it.   more...

05/28/2021

Spring Real Estate Trends to Lookout For

Spring Real Estate Trends to Lookout For

Spring is always an interesting and exciting time in real estate, so what are analysts expecting we can see this year?
Increasing Mortgage Rates Depending on how the economic recovery comes along, that mortgage rates could continue to increase. Rates have been on the rise for weeks, while earlier in the year, rates held under 3%. Analysts believe that it would be a good time for borrowers to try and lock in low rates now, with the anticipation they’ll tick upward through the year.   more...