Was buying or selling your home one of your resolutions for 2020? After the first few months of the year have passed and we’ve experienced the sudden changes that the coronavirus pandemic has brought, many people are left wondering if they should give up on their dreams to buy or sell this year. Thankfully, the real estate market is no stranger to navigating big changes. Let’s learn about this summer’s predictions for the Southern California housing market and find out if now is a good time to buy or sell.

 

A New Way to Buy and Sell

With the social distancing and safety precautions in effect for California residents due to COVID-19, buying and selling a home looks very different these days. Instead of a Sunday open house, most viewings are happening online via video calls. While we are uncertain how long these measures will be in effect, it is likely that distance viewings will be part of the real estate future in Southern California through the summer.

 

Will the Drops in Sales Continue?

Through April, California saw a 10% drop in home sales and general delays in the home buying process. While this could last through summer, there are still many buyers who are eager to get their hands on a new home. Interest rates continue to be low which is a major incentive for buyers and good news for hopeful sellers. There is good news for eager buyers, too. Not everyone will be ready to take the financial risk of buying a home in uncertain times. If you managed a locked-in interest rate, have sound employment, and are still interested in buying, you may benefit from fewer buyers in the usually saturated Southern California market.

 

On the Bright Side

When we consider the long-term benefits of owning a home in Southern California, we find that buying property here has always been a good investment. Southern California remains one of the most desirable places to live, making the housing market relatively steady with the promise of a good return on investment. For buyers, this means that even when purchasing a home in an uncertain economic time, you’ll likely be making a good investment for the future. For sellers, rest assured that even in trying times there are still many buyers looking to relocate and buy in this area.

 

Real Estate Lives On

No matter what happens over the coming months, there will be buyers and sellers. While we can expect to notice a few changes compared to previous years in Southern California, predictions remain relatively steady. If you are a buyer and were hoping to buy a home this summer, now is the time to start looking. There may be fewer options, but you can find your next home with a little diligence and the right real estate team. Sellers are also encouraged to list their properties and carry on with their hopes to sell this summer.

There’s nothing worse than a raging case of buyer’s remorse. It’s one thing to detest the jacket you just bought. It’s another to regret purchasing your house. While buying a home is an excellent investment that pays a lot of dividends in the long-run, daily life can make it harder to see the big picture. Some of the bumps along the road may cause you to feel moments of regret, but they shouldn’t. 

There are moments where you’ll feel blindsided as a homeowner. You feel that if you knew about these problems earlier in life, it could have made these blows easier to deal with. In fact, you can even plan for them, which would severely decrease any feelings of buyer’s regret. Here are five things homeowners wish they knew before they bought or renovated their home. 

Fix the Little Things As They Happen 

A slow leak can cause structural damage, while a clogged gutter can make a hole in the roof. There are little inconveniences that will inevitably pop up in your home. You might feel tempted to deal with these issues “tomorrow.” 

After all, you don’t plan on moving any time soon, so you’re bound to fix this issue. Well, that issue isn’t going anywhere either. Suddenly, it becomes a game of chicken as to what will crack first–the ceiling tiles or your procrastination. 

You Might Not Be Able to Renovate Upon Moving in 

Part of the allure of buying a house is making the place feel like yours. Sure, you can move in and rip up the carpet and paint the walls. However, you might not be allowed to get an addition or upgrade the electrical on day one.

For instance, adding another room onto the side of your house might be a zoning or conservation issue. Plus,installing a new bathroom will require a plumbing permit, just as blowing out the kitchen wall requires its own. 

Furthermore, these permits can only be obtained by the homeowners. It doesn’t matter if you’re closing tomorrow. They will make you wait until tomorrow to start the process. Depending on your situation, approval may take months.

Get to Know Your Neighbors

It’s good to have people you trust that live around you. Even the biggest introverts can benefit from a last minute cat-sitter or someone close who can lend you a lawnmower when yours goes kaput. 

Also, bad neighbors can really impede your quality of life. Try getting a gauge of the people in your neighborhood before moving in. Say “hi” and chat if you see them outside. Drive around at different hours of a day to get a feel for the neighborhood’s vibe. Make an educated decision about your location before settling in. 

Look Out for Problem Trees

Trees are essential and are an excellent spot for your children to read a book. However, these big beauties can become even bigger pains. If your potential house is close to a big tree, Google it. See how aggressive their root systems are. 

Aggressive roots are strong and will expand many feet. In turn, they can pull up piping or damage the structure of the house. Think of a tree that destroys a sidewalk. That can be the slab of your future home’s foundation. 

Plan Renovations 

Your house needs to change as your family continues to evolve. These changes are going to be costly. However, their necessity will be inevitable. So, don’t live in denial. Come up with a plan.

Talk to pros about potential renovations. Get a gauge for how much they will be. Choose one big project every year or two. Save up and see it through. Then, start thinking of your next long-term goal. You’ll be surprised at how productive you can be! 

 

Once you’ve decided to sell your home, it can be tricky to figure out exactly when is the best time. There are many factors at play. What season is best? What the economy like? Are there any important personal times that factor in? Is your home ready to sell? 

 

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While it can be tricky to navigate just when is the best time to sell your home, we’d like to share with you some reasons why right now is a great time is to sell in Southern California. 

 

 

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New Buyers are Entering the Market
Millennials are currently making up the biggest group of homebuyers in 2020, which means that if your home is great for a young couple, young professional, or small family, you could be just what they’re looking for. 

 

 

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Interest Rates are Low in 2020
Interest rates are expected to remain low this year, meaning that homebuyers will have a great opportunity to secure an affordable mortgage. This will encourage many to become new homeowners or to take the change to move up to a new house. Rates may change drastically as the year goes on and we move into 2021, so buyers are likely to make a purchase earlier in the year. 

 

 

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2021 Could Mean Trouble
Economists and forecasters have reason to believe that we might head into a recession in late 2020 or 2021. For this reason, many people are considering jumping on selling their house sooner rather than waiting for a potentially tougher climate. 

 

 

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Spring is in the Air…and the Buyers are Out Hunting
Spring is one of the most popular times of year to sell a house. Moving in spring is typically much easier than the holiday-packed winter or the vacation-packed summer. The weather is great, there is less going on in general, and most buyers are eager to settle in before all the entertaining of the rest of the year begins. 

 

 

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Should You Sell?

If you have been considering selling your home, you might want to take action now. The real estate climate is good for sellers with encouraging economic forecasts for early 2020 and low bank rates to encourage buyers. With an active selling season coming up, now is the time to prepare your home for a sale and reap the rewards of good planning!

 

Do you own a house and are on the verge of foreclosure? Many people will do almost anything to maintain the roof over their heads. As a last-ditch effort, thousands of homeowners are turning to equity stripping to make their homes less attractive to creditors. However, don’t let desperate times call for desperate measures. While on paper this method seems fool-proof, it’s leaving people with even less than what they started with. Let’s take a look at what is “stripping the equity,” why it’s dangerous, and how to avoid it. 

What is Equity Stripping?

Equity stripping is considered a form of asset protection. When someone is in debt (such as facing a foreclosure) and are having trouble making payments, creditors start to look at the assets that the debtor owns for collateral. For many, the most valuable asset we own is our home.

 

If you have a mortgage, you have been paying on your house. That means you have some equity in your asset. This is valuable to those who you are in debt to. 

 

In order to shell out less money to creditors, you need to prove you have less assets than you actually do. The only way to do that is to hurt your assets. That’s why many are turning to equity stripping.

Types of Equity Stripping

There are a number of ways to go about lowering your equity on your house. Here are some of the most common:

Home Equity Line of Credit

The best way to keep creditors away from your equity is to tie your equity up elsewhere. To do this, many are putting their house up as collateral while they get a home equity line of credit (HELOC). This loan allows you to draw a maximum amount of the equity you already have in your house. The beauty? You don’t need to draw from the money…ever. There’s no penalty for not taking from the loan. Meanwhile, creditors looking at your assets will be turned off by seeing a HELOC.

Second Mortgage

While more effective, this is even riskier. Your equity is pretty much null and void because you will owe even more on the house than it’s worth. This might be a quick fix in fighting off a creditor, but it sets up a lifetime of debt.

Quit-Claim Deed

This used to be a lot more common before divorce became a regular occurence. Here, people sign over their property to a family member or spouse who has less debt. While it seems like a no-brainer, you are handing over your property rights to another person. If the person you signed the house over to doesn’t hold up their end of the bargain, you may find yourself up the creek without a paddle.

What to Do Instead of Equity Stripping?

Equity stripping may be effective, but it’s also dangerous. You can end up with worse credit, no equity, or even homeless. While these are worst-case scenarios, they should be taken into consideration. Before turning to equity stripping as your answer, try these tips first:

 

• Create a Budget and See Where You Can Cut Costs
• Contact the Lender About a New Payment Plan
• AirBnB or Rent Out an In-Law
• Refinance Your Mortgage with a Lower Interest Rate
• Sell Your House and Downsize or Rent

 

While none of these seem like easy answers, they are far less risky than opening up more lines of credit or signing over your house. Equity stripping might seem like answer, but it also can end up becoming a foreclosure scam. Be sure you make an educated decision before doing something as important as equity stripping.

 

Are you dreaming of buying a home in 2020? Congratulations! Buying your first home is an amazing goal to work towards. The idea, however, can feel overwhelming and daunting if you have never bought or owned a home. 

2020 is your year to become a homeowner. Let’s start the year off right with some helpful resolutions that put you on the path to homeownership before the end of the year. 

 

5 New Year’s Resolutions for Buying Your First Home

 

I will save $X each month to reach my goal of a $Y down payment.
The first resolution you need for 2020 is to determine what your desired down payment is. Without a clear idea, it’s an impossible goal to towards. Once you have your number, decide how much more you need to save to reach that, and divide by the number of months you have before you hope to buy a home. That’s your monthly goal. Now stick to it!

I will unsubscribe to unnecessary, costly subscription services by February 1st, 2020.

This is a simple, but important resolution that’s great for anyone saving up to make any kind of large purchase. In the first few weeks of the new year, track down any less-than-necessary subscription services you have and cancel them. Do you really watch that much cable? What about that monthly subscription box? This goes for other purchases as well. Trim down as much as possible by reducing your coffee shop habit, grocery splurges, or impulse buying.

I will avoid making any large purchases until I have reached my down payment goal.
This goal pairs well with the previous resolution. Limit any unnecessary purchases – especially big ones – until you’ve reached your biggest goal. New cars, technology, and fancy vacations can wait. This year the focus is buying a home!

I will reach out to a real estate agent and mortgage broker by April 1, 2020 to discuss my plans to buy a home this year.
You may have browsed available homes in your desired neighborhood and gotten an idea of what’s out there. That’s great! But the first step to making real progress with finding a home is reaching out to a real estate agent and a mortgage broker. If possible, get pre-approved for a home loan and solidify an agent you’d love to work with when you’re ready to serious start the search.

I will pay off other outstanding debts to improve my credit by (date).
This resolution will vary greatly from person to person. Consider the amount of outstanding debt you have from credit cards, car loans, student loans. Pay these off to the best of your ability while also saving money for your down payment. Reducing these debts will help you funnel money into your house fund, while also improving your credit score to improve your chances at better mortgages rates.

 

 

Ring in 2021 in Your New Home
This year is the year you’ll finally become a homeowner! Starting 2021 off in your new home requires sticking to your resolutions this year. With a little determination, you can save, search, and sign those papers.  

 

Southern California boasts a plethora of longstanding traditional events and festivals. This curated list highlights the longer running events in the area throughout the holiday season. 

 

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November 2 – Long Beach Festival of Flight

Long Beach Airport

Enjoy viewing aircraft up close while dining at local food trucks. There will also be a beer garden for the 21+ crowd. 

 

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November 2 & 9 – Dia De Los Muertos Annual Art Exhibit and Altar Display

Museum of Latin American Art

This annual event will highlight the impacts of family history on current beliefs and customs. Be prepared for some introspection as a look back may explain a lot about who you are today!

 

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November 16 – 7 – Autumn Festival at the Aquarium

Aquarium of the Pacific

Experience Asian maritime culture with a hands on experience full of learning opportunities. Take in the food and cultures of China, Japan, Korea, and the Philippines.

 

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November 28 – Long Beach Turkey Trot

Granada Boat Launch Ramp

Get in a morning run with the Long Beach community before devouring all those calories you earned later on Thanksgiving Day! This event also features a .5-mile kid’s walk to keep the whole family involved. 

 

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December 2 – Christmas Tree Lighting

Terrace Theater Plaza

The ceremony to light the Long Beach, California Christmas tree begins at 6:00 PM. Kids can meet the Claus family and go for a train ride while adults can snack at local food trucks and enjoy a live band. 

 

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December 14 – Annual Parade of 1000 Lights

Shoreline Marina

This isn’t your average holiday parade! Well lit boats will set sail from the Shoreline Marina area and float past the Pine Avenue Pier, moving across the water alongside the Queen Mary. Get the best vantage point at Shoreside Village, the Queen Mary, or Rainbow Harbor.

December 14 – Annual Daisy Avenue Christmas Tree Lane Parade

 

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Daisy Avenue between PCH and Willow Street

This parade has been going strong for 66 years and 2019 will be no different. Stake out your spot before the 5:00 PM start time to make sure you can see it all!

 

Earthquakes are more dangerous than other natural events like hurricanes and tornadoes because there is rarely warning that one will occur. The key to earthquake safety is primarily preparation.

 

It is important to prepare your home for the possibility of an earthquake and ensure your family knows what to do during one. Follow this quick guide to be ready always.

 

Evaluate the Safety of Your Home

 

Some older homes do not feature the safety mechanisms of newer builds. If you are a homeowner, have an inspector come to do an evaluation. Renters should inquire with their landlords to determine what vulnerabilities may exist.

 

Do a Home Walkthrough to Identify Dangers

 

Tall bookshelves, heavy objects on shelves, and priceless items are all risks associated with earthquakes. While it is unreasonable to remove furniture from your home, it is important to know what to avoid during an earthquake.

 

If you live in an earthquake-prone region, consider taking expensive or priceless items off high shelves and securing them in a safe place where falling is not a threat.

 

Perform Family Drills

 

Determine the best places to get low and under sturdy supports or cover during an earthquake. Practice proceeding to these places and utilizing them quickly. Practice is essential to responding appropriately during a disaster.

 

Form an Earthquake Kit

 

First aid supplies should be kept in a kit that can be easily recovered after an earthquake. Non-perishable food and water for three days should be on hand in the event an earthquake makes transportation impossible. Keep the kit and food in a place that is accessible for every member of the family.

 

Have a Contact Plan

 

Make sure the family is aware of the contact plan in the event you are separated during the earthquake. Decide where everyone will meet if phones are rendered out of service.

 

Preparation is the key to survival during earthquakes. Take these steps now to ensure your home and family are prepared for the next one.

 

The temptation to refinance and increase your monthly budget is enticing. There are several benefits to refinancing your home loan – getting a lower interest rate, shorten the time left on your mortgage, or escaping the unpredictability of an adjustable-rate mortgage (ARM). 

 

 

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Refinancing requires a fee of up to 6% of the principal on the loan and can require the appraisal, titling, and application fees just like an original loan. With this in mind, when is it appropriate to refinance? When do the pros outweigh this con of extra effort? 

 

 

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The best reason to refinance a mortgage is to save money on interest. While the recent announcement by the Federal Reserve has led many to investigate their options, it has little to do with the current low mortgage rates. The market has simply settled with rates averaging around 4.5%. This is great news for someone sitting with a 6% or higher mortgage rate!

 

Experts suggest that a reduction of 1-2% makes refinancing worth the effort. A decrease in your interest rate means lower payments and speeding up your equity-building process. 

 

 

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Another reason to consider refinancing, if you can qualify for these lower rates, is to procure a shorter-term loan. If your mortgage payments are manageable as they currently stand, you could shorten the term on your loan with a relatively similar payment. Paying a few dollars more a month could be worth finishing off your loan years earlier.

 

Most homeowners with an ARM are interested in getting out of the unpredictable rate adjustments inherent to such loans. While a downturn in rates can be a boon, the subsequent increase in mortgage rates can be disappointing and stress your budget. 

 

 

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Getting out of an ARM when rates are low is ideal. Rates are currently lower than they were several years ago and are unlikely to decrease much more. Switching to a fixed-rate at these low numbers can provide stability to your budget. 

If you are looking to refinance your mortgage, now is the time. Rates are relatively low and could go up in the coming year. Homeowners who want lower payments, faster payoff, or a fixed-rate should contact lenders and see what rate they can qualify for.

A US Federal Housing Administration (FHA) Loan is a great way for first-time home buyers to those with low credit scores to secure their new home. For many starting this exciting new chapter in their life, they don’t have the liquidity to afford a mortgage on their own. The FHA loan allows Southern California homebuyers the opportunity to get their new house without much financial burden up front. However, there are a few drawbacks to an FHA loan that might make you reconsider. Let’s examine the pros and cons of an FHA loan. 

 

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Pros of an FHA Loan

The minimum credit score that someone applying for an FHA loan can have is 500. At such a low number, that means many people are qualified for an FHA loan. This is excellent news for anyone who is dreaming of buying a house in Southern California. 

 

With an FHA loan, the initial down payment is incredibly low. You only need to put down 3.5%. Also, new homebuyers can seek more relief from the sellers when it comes to closing costs. In most standard loans, sellers can only cover closing costs up to 3% of the loan amount. With an FHA loan, the home seller can contribute up to double that amount. 

 

Lastly, FHA loans are assumable. Therefore, if you go to sell your Southern California house in the future, the next buyer can be locked in at your interest rate. Getting an FHA loan is an additional investment in your future because it will increase the value of your house as market prices rise. 

 

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Cons of an FHA Loan  

FHA loans may seem too good to be true. In some cases, they might just be. If you are looking to buy a fixer-upper, the potential house might not be qualified for an FHA loan. The home must be in excellent condition and look like it will be that way throughout the remainder of the mortgage.

 

The biggest con with FHA loans is insurance. As per the FHA website, “FHA requires both upfront and annual mortgage insurance for all borrowers, regardless of the amount of down payment.” You need to comply with these insurance laws until you have paid at least 80% of the mortgage down. 

 

Lastly, FHA loans have a cap. If you are buying in the Southern California areas, here are the max amounts you can be approved for per style of home:

 

• Single – $726,525
• Duplex  – $930,300
• Tri-plex – $1,124,475
• Four-plex – $1,397,400

 

So, if you are applying for an FHA loan and actively looking for homes in Long Beach, California, keep these numbers in mind.

 

The housing market isn’t much different than the stock market. You have to pick your spots. Sometimes your chips fall on the right number, other times the house wins. In February, the housing market saw a 12% drop in house sales across southern California. This decrease has left a rippled effect that will flow through the summer months. While the following months are going to heat up temperature-wise, the housing market is going to cool down. That’s why right now is the time to buy if you are looking to buy a house in southern California.

Summer 2019 is a Buyer’s Market in Southern California

Currently, home sales are down. Many of the houses that are up for sale have been for a while. Therefore, some of the owners are getting a bit antsy to cut bait. One’s loss is another’s victory, making right now a prime time for buyers.

 

Typically, the summer months are a popular time for people to start shopping for houses anyway. However, many of the sellers have been sitting with the same inventory as last summer. So, you can expect two things as the season starts–prices dropping and sellers caving.

As a buyer, you are holding a good portion of the power. So, it’s wise to get yourself pre-approved for a loan now. That way, you know how much you have to play with when you start your search. Knowing how much you can afford will go a long way if you find yourself in a bargaining war. It’s like having an ace up your sleeve that the seller has no idea you are carrying.

Why You Should Buy a House in Southern California Right Now

With all these buyers looking to sell their southern California house, you might not feel like you’re in no rush. However, you should act now to take advantage of the current rates. For one, while the number of properties sold in southern California is down, the median price is up 1.2% from last year. So, while there is room to negotiate, sellers are still making a good profit in many booming neighborhoods.

In addition, rumors are circling that mortgage rates will increase from 4.5% to 5% by the end of the year. So, if you wait too long to buy your house in southern California, you might see a price hike and a mortgage percentage jump. All of these analyses make right now the ideal window to buy a home in southern California.