Happy New Year! Did you ever wonder where the “New Year” really started? In my interest to find this out, a quick internet search let me know that the Babylonians and Chinese had
2021 Real Estate Market Focus Points
Dated: January 25 2021
If you would like to see the video instead of reading! (Hey! I don't blame ya!)
Here is the link to my YouTube Channel 2021 Real Estate Market Focus Points
Hey everybody, I am Christyna Butcher, your local realtor. My crystal ball is not working now however, the Real Estate Industry is not short of opinions or forecasts. So, I have accumulated my notes and decided to share them with you on this quick video.
New Homes have seen an increase in sales and while that is a great thing, I recently heard one of my clients say that the options are not as vast as they use to be. In fact, even though she went through the new home builder’s lender, they received a credit but did not allow for exterior and interior options to be interchangeable from the other models to the one she purchased. However, in a recent zoom with Mr. Randall Lewis of Lewis Group of Companies regarding the Inland Empire and California, it began to make sense why options might not be as available in the past. Mr. Lewis stated the cost of lumber is up. Costing around $10,000 per home. Thus affecting; designs, finishes and even appliances. It might be safe to say that while sales of new homes are up, and so are the prices, the increased costs are being recalculated and creating slower roll outs of new phases and not allowing for interchangeable options.
General economic predictions or forecasts are about inflation, increases to interest rates, increases of home prices (Now that is a crazy “prediction”) and possible fees and higher taxes here in California. I have heard a mix of prediction, but all are optimistic. We are not seeing the pouring of outcries that our economy is going to tank worse than in 2008, like we did 4, 3 and even 2 years ago. That is something that should be encouraging. Something, not so encouraging is Inflation. This is something that I have been complaining about for a few years and while in the past, I have been brushed off when I bring it up, I am happy and not so happy to hear it is entering into the mainstream conversations. The prediction is that to stabilize inflation we will see interest rates increase. Higher Interest Rates! How dare she say that! I know. If this scares you away from purchasing real estate, then I would like to share some advice that I share with some of my clients. No matter where the price points are, there is usually balance. High price points usually come with low interest rates. Low price points come with higher interest rates. In the early days of my real estate career, Interest rates were 13-25%. If you wanted an FHA insured loan to help you fix up your home, you were excited to have 18% interest. Let those rates sink in for a minute. It is what some credit cards are charging right now. However, they are not charging those interest rates on a $650,000 loan amount but back in the mid-nineties. The average price in 1996 for a Single-Family residence in Los Angeles County was $181,000. Get what I am saying?
2 tid bits to leave with you that are happening in California. #1. Prop 19. If you have a principal residence here in California that you want to leave to a child or grandchild, you might want to speak to your tax person or an attorney – if you do not already have it in an irrevocable trust. Deadlines differ based on who you consult with but I would aim to have that remedied by April 1. #2. California’s Regional Housing and Needs Assessment at this time is requesting 1.3M houses being built this year. RHNA is interesting and has been around since 1969. If you want to learn more about it, I will link their website in my vlog or description below. https://hcd.ca.gov/community-development/housing-element/index.shtml
Christyna Butcher has been in the Real Estate Industry since 1995 and licensed since 1997. In her years of experience she has been involved in different types of markets; standard sales, short sales,....