Myeshia "MY" Abdul-Hakeem 7/26/23 Myeshia "MY" Abdul-Hakeem 7/26/23

#HWMY Quick Market Analysis: July 26, 2023

July 24, 2023 –June home sales came in below the 300,000-benchmark for the ninth consecutive month, as rates remained elevated in the past couple of months. The year-over-year decline, however, moderated further with the annual dip dropping below 20% for the first time in 12 months. Meanwhile, the statewide median price remained above $800,000 for the third straight month, as tight supply continued to provide upward support. Monthly price dips in the coming months are anticipated, however, as the market goes through its typical seasonal pattern and rates remain elevated for most if not the entire third quarter. As for the economy, consumers appear to be more resilient than predicted six months ago, and economists are lowering the odds of a recession for the U.S. That’s good news, except a solid economy could mean a delay in the Fed loosening its monetary policy, which could be translated as mortgage rates staying high for a little longer.

Elevated rates and limited supply continue to suppress California home sales: Sales of existing homes in California continued to decline on a year-over-year basis for the 24th straight month in June but registered the smallest yearly drop since May 2022. Short supply and high mortgage rates continued to suppress home sales, while heated market competition remained the driving force that put upward pressure on home prices. As the market moves closer and closer to the end of the home buying season, the statewide median price is near its peak and will level off in July or August. If interest rates start coming down in the next couple of months, the market will see some improvement in affordability, which could help push sales up in the second half of the year.

Supply remains stuck and may not improve any time soon: Housing inventory in California inched up in June from the prior month but dipped again from the same month of last year, as tight supply continued to be the norm. The statewide unsold inventory index in June 2023 dropped 8.3% from a year ago and increased 4.8% on a month-over-month basis. Active listings at the state level fell sharply by 34% from last year and registered the largest year-over-year decline since May 2021. With mortgage rates expected to be high in the next couple of months, California may not see any meaningful improvement in its supply condition for the rest of the third quarter.

Retail sales continue to climb but at a slower pace: Consumers continued to spend in June and pushed up retail sales activity for the third straight month. The pace of growth in the latest month was softer than that observed in May and April, which suggests a stalling in momentum on consumer spending despite easing inflation. After accounted for price growth adjustment, real retail sales were up 0.1% from May and were up 2.4% from June 2022. While the overall growth was slowing, ecommerce remained a bright spot, topping all categories with a gain of 9.4% on a year-over-year basis. With Amazon claiming the first 24 hour of its Prime Day promotion in July as the “single largest sales day in the company history”, next month’s report could be even more impressive for ecommerce, and could help maintain a positive month-to-month growth rate for retail sales overall.

Single-Family rent growth back to pre-pandemic levels: U.S. single-family rent continued to grow year-over-year in May with a gain of 3.4% from last year. The annual increase, however, continued to slow and was back to the rate recorded in the decade before the pandemic. The decelerating trend in rent growth is consistent with the pattern shown in the June’s consumer price index report, where shelter inflation also began to show signs of easing. The mid-single digit increase on rent was a relief for many renters who had to pay a double-digit growth rate on rent in May 2022. At the national level, rent growth for the lowest price tier was more than double that of the highest price tier, which suggest a bigger imbalance between supply and demand in the more affordable segment. Rent growth has been slowing throughout the year and could see further softening before the end of the year, as more multifamily supply continues to come on board.

Builders remain confident as residential construction falls back: Residential construction took a step back last month, with total housing starts falling 8% during June, partially offsetting the robust gain in May. The sizable drop was broad-based with single-family dipping 7.0% from May to June, while multi-family sliding 9.9% over the same period. Despite a pullback in starts, the outlook for single-family constructions remained positive, as single-family permits continued to rise modestly by 2.2% on a month-over-month basis. With solid demand and a lack of supply in the resale market, developers continue to shift their focus to single-family housing units. Builder confidence remained on the rise for the seventh straight month, with the NAHB/Wells Fargo Housing Market Index gaining 25 points since the December 2022 low.

Myeshia "MY" Abdul-Hakeem 6/9/23 Myeshia "MY" Abdul-Hakeem 6/9/23

Del Mar introduces ordinance for SB 9 construction

Since SB 9 went into effect on Jan. 1, 2022, cities have been adopting ordinances to apply objective standards to new units constructed under the ordinance, which provide a limited set of criteria for oversight. Cities typically have a more thorough discretionary review for new construction that can be tailored to each project, but the new law largely supersedes local zoning.

“To the extent we can manage that, it’s in our interest to do that,” Del Mar City Councilmember Dwight Worden said during the meeting.

The bill allows duplexes, fourplexes and accessory dwelling units in any combination that adds up to no more than four units of housing in single-dwelling residential zones. There are certain exemptions, such as historically designated lots or lots that are also within environmental overlay zones.

There are 768 lots in Del Mar that are eligible for SB 9, equal to about 38% of the city’s residential lots, according to city staff.

Through the ordinance, and a planned update to the city’s inclusionary housing policy, council members said they want to make sure SB 9 contributes to the city’s affordable housing stock. Affordable housing requirements were at the forefront of a Planning Commission meeting last month during a discussion of the proposed ordinance.

“Almost from the beginning we’ve been talking about these issues of affordability and opening up more housing all throughout California,” Planning Commissioner John Farrell said at the time. “It’s been front and center for at least the last three years. I think we have to address it. If we don’t address it, I think we’re being negligent in our duties.”

Council members discussed other standards that would help integrate SB 9 units into the community, such as setbacks and floodlights. But with a persisting housing affordability crisis, some residents throughout the state have raised concerns that objective design standards inhibit new SB 9 construction.

“I appreciate that we’re trying to strike a balance between following the law and doing it the ‘Del Mar way,’ but I fear this rather exhaustive list of SB-9 regulations will unduly kneecap the intent of the legislation, which is to increase the supply of available housing — full stop,” Del Mar resident Brad Walters wrote in an email to the city ahead of the meeting this week. “This is certain to invite state scrutiny, perhaps even further delaying the certification of our latest Housing Element.”

BY LUKE HAROLDSTAFF WRITER

JUNE 6, 20231:41 PM PT

Original posts at Del Mar Times

Myeshia "MY" Abdul-Hakeem 7/29/21 Myeshia "MY" Abdul-Hakeem 7/29/21

How the Race to Space Could Impact Real Estate

July 20, 2021

Amazon and Blue Origin founder Jeff Bezos flew to suborbital space and back on Tuesday. His journey follows Virgin Records founder Richard Branson’s space trip last week. But what do these billionaire space joyrides have to do with real estate? A lot, if this trend truly takes off, real estate experts say.

The hub locations for aerospace giants such as Elon Musk’s SpaceX and Bezos’ Blue Origin could drive average median real estate prices as they attract job growth and higher incomes.

“If, say, a large tech company decided to open another headquarters with high-income jobs, then the local area will experience a sizable growth in home prices,” NAR’s Chief Economist Lawrence Yun told Fox Business. “Given that SpaceX and Blue Origin employees have sophisticated high-tech skills with presumably high income, the impacted small community real estate market will clearly benefit.”

SpaceX, located in Cameron County, Texas, and founded in 2002, plans to transport passengers to Mars by 2024. It also has a launchpad in Santa Barbara County, Calif. Bezos’ Blue Origin was founded in 2000 and conducted its first flight in 2006 from its Van Horn, Texas, launch site in Culbertson County. These companies also use Kennedy Space Center and Cape Canaveral Space Force Station in Brevard County, Fla. Both companies are actively hiring.

Musk issued an open invitation in March to anyone interested in joining the SpaceX team and noted the area is “expected to grow by several thousand over the next year or two,” as reported by FOX Business.

Virgin Galactic, which also offers suborbital spaceflights, is located at the Mojave Air and Space Port in Kern County, Calif., and Spaceport America in Sierra County, N.M. Virgin Galactic completed its first fully crewed test flight last week with founder Branson.

To what extent can space rides affect the local real estate prices in these areas? In Cameron and Santa Barbara counties, home prices have climbed 51% and 108%, respectively, between 2000 and 2020, according to the Federal Housing Finance Agency’s housing price index map. In Sierra County, N.M., and Kern County, Calif., real estate prices have surged 80% and 114%, respectively, between 2000 and 2020. In Brevard County, Fla., prices are up 128% in that time period.

Yun told Fox Business that there could be a long-term benefit to local housing markets because of these space companies' hubs, particularly on smaller communities that may have an easier time building more homes to meet higher demand. But price growth likely would be tempered even as demand increases, he said.

Daryl Fairweather, Redfin’s chief economist, agreed, telling Fox Business that the abundance of land surrounding these space company hubs will likely allow home prices to stay relatively stable even as the population of high-income earners increases. “More land means there’s room to add housing stock, which will temper price growth,” Fairweather says.

Myeshia "MY" Abdul-Hakeem 7/29/21 Myeshia "MY" Abdul-Hakeem 7/29/21

Eviction Ban Set to Expire?

The Biden Administration on Thursday said it would not attempt to unilaterally extend the Centers for Disease Control and Prevention’s (CDC) national eviction moratorium, allowing it to expire on July 31.
In a statement, the White House acknowledged a recent Supreme Court ruling on the issue, saying, “. . . the Supreme Court has made clear that this option is no longer available.” President Biden is now asking Congress to intervene and extend the ban.

“NAR is prepared to oppose vigorously any unreasonable effort by Congress to extend the ban without assistance for small housing providers,” says Shannon McGahn, chief advocacy officer for NAR. “We have argued all along that the best solution for all parties is rental assistance for tenants in need paid directly to housing providers. Nearly half of all rental housing in America is a mom-and-pop operation, and these providers cannot continue to live in a state of financial hardship.”

“With the economy improving, rental assistance now available in all 50 states, and millions of unfilled jobs, it is time to return the housing market to its former, healthy function,” McGahn says. The CDC ban has been in place since September 2020. It was first imposed by the Trump Administration and then extended multiple times by the Biden Administration.

With many mom-and-pop housing providers facing financial ruin and unable to pay their bills or keep up their properties, NAR launched a massive advocacy effort last year to secure rental assistance for tenants. Nearly $50 billion was obtained through two pieces of legislation. As a result of subsequent eviction ban extensions, however, the Georgia and Alabama associations of REALTORS® and two housing providers—with NAR’s help—filed a lawsuit in federal court challenging the CDC’s authority to impose the ban. In May, U.S. District Court Judge for the District of Columbia Dabney Friedrich ruled that the CDC exceeded its authority and sided with small housing providers, overturning the ban.

The ruling was put on hold pending appeal. The Georgia and Alabama associations appealed the stay to the D.C. Circuit Court; after their appeal was denied, the associations asked the U.S. Supreme Court to intervene and immediately end the eviction ban. In June, a majority of the U.S. Supreme Court agreed that the CDC exceeded its authority with the ban.

Four Justices wanted to end it immediately. A fifth justice said explicitly the CDC exceeded its authority but allowed the ban to stay in effect a few more weeks to keep an orderly transition and provide more time for rental assistance distribution. “With NAR's support, the Alabama and Georgia REALTORS® have achieved a tremendous victory for property rights that will reverberate far into the future,” McGahn says. “The Administration has now officially said any future national eviction ban would need to go through Congress.” Tenants are now eligible for up to a year-and-a-half of back and future rent.

MORE:

Rental assistance guidance is available on NAR’s website.

The White House has also been preparing tenants for weeks for the end of the moratorium, issuing new guidance yesterday on how to obtain rental assistance.

Myeshia "MY" Abdul-Hakeem 5/21/20 Myeshia "MY" Abdul-Hakeem 5/21/20

Prices Strong Despite Lockdowns Hindering April Sales

May 21, 2020

The latest existing-home sales numbers show a housing market facing the headwinds of the COVID-19 pandemic in April. Existing-home sales fell 17.8% last month compared to March, marking a two-month decline in sales, the National Association of REALTORS® reported Thursday.

Still, home prices remain resilient in the face of the pandemic. The median existing-home price for all housing types in April jumped 7.4% compared to a year ago ($286,800). All four major regions of the U.S. saw annual gains in home prices, too.

But total existing-home sales—which are completed transactions that include single-family homes, townhomes, condos, and co-ops—fell to a seasonally adjusted annual rate of 4.33 million in April. Sales were down 17.2% compared to a year ago (5.23 million existing-home sales in April 2019). Existing-home sales are at the lowest level since July 2010

“The economic lockdowns—occurring from mid-March through April in most states—have temporarily disrupted home sales,” says Lawrence Yun, NAR’s chief economist. “But the listings that are on the market are still attracting buyers and boosting home prices.”

Record low mortgage rates likely will be a key factor in driving housing demand as state economies gradually reopen, Yun adds. “Still, more listings and increased home construction will be needed to tame price growth,” he notes.

Here is an overview of additional key indicators from NAR’s latest housing report:

Inventory: Total housing inventory at the end of April was 1.47 million units, down 19.7% from a year ago. Unsold inventory is currently at a 4.1-month supply at the current sales pace.
Days on the market: Properties typically stayed on the market for 27 days in April, up from 24 days a year ago. Fifty-six percent of homes sold in April were on the market for less than a month.
First-time home buyers: More sales last month were from buyers who were purchasing their first home. First-time buyers accounted for 36% of sales in April, up from 32% a year ago.
All-cash sales: All-cash sales comprised 15% of transactions in April, down from 20% a year ago. Individual investors and second-home buyers, who make up the biggest bulk of cash sales, purchased 10% of homes in April, down from 16% in April 2019.
Distressed sales: Foreclosures and short sales represented 3% of sales in April, which is about the same as a year ago.

Regional Breakdown

The following is a closer look at how existing-home sales fared across the country in April:

Northeast: Existing-home sales dropped 16.9% in April to an annual rate of 540,000—an 18.2% decrease compared to a year ago. Median price: $312,500, up 8.7% from April 2019.
Midwest: Existing-home sales fell 12% to an annual rate of 1.10 million—an 8.3% decrease compared to a year ago. Median price: $229,200, a 9.3% increase compared to April 2019.
South: Existing-home sales dropped 17.9% to an annual rate of 1.88 million in April, down 16.8% from the same time a year ago. Median price: $249,400, a 6.4% increase compared to April 2019.
West: Existing-home sales dropped 25% to an annual rate of 810,000 in April—a 27% decrease compared to April 2019. Median price: $419,300, up 6.1% from a year ago.

Original article found atRealtor

Myeshia "MY" Abdul-Hakeem 5/1/20 Myeshia "MY" Abdul-Hakeem 5/1/20

What’s the Market Saying?

Greetings from HWMY!

I wanted to share some information and focus on the positive. The first chart below regarding closed sales from March 2019 to March 2020 are up almost 6%. This is great information I wanted to share with you all! The average Sales Price is up 9.7% from 2019. The days on the market is better also by 15.8%.

Take a peek. Let me know if you have any questions. And remember, “To Sell or Buy, ALWAYS Call Homes With TeamMY, (619) 887 - 4969 (HWMY)!”

Be Well!

Myeshia "MY" Abdul-Hakeem 11/8/19 Myeshia "MY" Abdul-Hakeem 11/8/19

5 Trends You’ll Notice Among Sellers and Buyers

Who are selling and buying these days?

Home buyers are ready to plant roots: Today’s buyers are young, multicultural, tech-savvy, and eager to buy a home as a personal investment, according to the National Association of REALTORS®’ 2019 Profile of Home Buyers and Sellers. Sellers, on the other hand, are already rooted, having lived in their current home an average of 10 years, NAR’s report shows. Sellers are equity-rich and rely on real estate professionals for guidance now more than ever before.

Five key themes emerged from NAR’s annual survey of recent home buyers and sellers, ranging from what buyers are looking for in a house to what both buyers and sellers expect from a real estate agent. NAR has been providing an in-depth analysis of home buyers and sellers since 1981. This year’s report is based on surveys of more than 5,800 consumers.

Buyers, sellers turn to agents in record numbers. The internet hasn’t replaced real estate professionals. Eighty-nine percent of buyers—a record high for the report—say they used an agent to purchase a home. On the seller side, the share of For Sale by Owner transactions hovers at 8%, on par with recent years. “While the home search process has shifted toward digital technology, the need for a trusted real estate agent to help sell a home is still paramount,” NAR notes in its report. “Personal relationships and connections remained the most important feature of the agent-buyer/seller bond.”
Unmarried buyers are on the rise. Young adults ages 25 to 34 make up a quarter of all home buyers, the largest share. Meanwhile, first-time buyers are getting older: The median age of this cohort rose to 33—the highest on record in the NAR survey. The median age of first-time buyers in 1981 was 29. While most people who buy together still wait for marriage, unmarried buyers make up a growing share of the market, 9% compared with 8% a year ago. Married buyers made up 61% of the market. That’s down from 73% in 1981. Single female buyers made up 17% of the market, while the share of single male buyers was 9%.
Debt remains a hurdle to saving for a down payment. More than a quarter of buyers—28%—say they delayed their home purchase because of debt. The median amount of time homeowners spent saving for a down payment was four years, according to NAR’s survey. Many buyers cited saving for a down payment as the most difficult step in the homebuying process, indicating that student loans, credit card debt, and car loans diminished their purchasing power. The median down payment on a home purchase is 12% for all buyers. Broken out, the median down payment is 6% for first-time buyers and 16% for repeat buyers, according the report.
Equity gains prove a boon to sellers. Higher home prices have translated into faster appreciation for homeowners. Sellers this year sold their homes for a median of $60,000 more than they paid at the time of purchase, up from $55,500 a year ago, NAR’s survey shows. Sellers who owned their home for six to seven years reported a median $72,200 gain, while those who sold after 21 years of ownership saw a median gain of $162,000.
Inventory woes continue. “Due to suppressed inventory levels in many areas of the country, buyers are typically purchasing more expensive homes as prices increase,” the NAR report notes. The average number of weeks a buyer searched for a home was 10 weeks. New-home construction has failed to catch up to buyer demand, with the share of new-home sales falling to an all-time low of 13%, NAR reports. For comparison, new-home sales held steady at 16% from 2011 to 2015. Existing-home sales have edged up from 86% of the market last year to 87% this year. In 1981, new-home purchases comprised 18% of the market, while existing-home purchases made up 82%.

Article found in Realtor Magazine

Myeshia "MY" Abdul-Hakeem 2/19/19 Myeshia "MY" Abdul-Hakeem 2/19/19

Don't Get Sidelined!

Dear HWMY Readers,

What is your dream home worth? Many buyers face this dilemma with the realization with that all homes there is some sort of compromise. Whether it is on a repair or a “must-have” you originally thought you could not live without to closing on a less than perfect home (which by the way, unless you build it, there will always be a compromise). Check out the below article on how to not let your dream home get sidelined.

Myeshia "MY" Abdul-Hakeem 11/20/18 Myeshia "MY" Abdul-Hakeem 11/20/18

'Tis the Season To Sell! Why You Should Keep Your Home On the Market

Happy Thanksgiving HWMY Readers,

Here’s a dilemma faced by many sellers right now: do I continue to sell or pull my home off the market until after the holidays? Well here are six reasons why you should keep your home listed and why this time for selling can actually be ideal!

#1 When people pull their listing now, yours automatically rises to the top! And that means less competition and more buyers to see your home.

#2 What DO the holidays smell like? Well pies, cakes, yummy dinners and all the fixings of course! On top of all the decorations, believer it or not, homes actually show better during this time of the year because of the holiday cheer. And why wouldn’t those warm and fuzzy feeling translate to an easy escrow?

#3 Because of the holidays, buyers tend to be very serious and want quicker escrows. This makes sense, why not enjoy the gift of your new home for the holidays?

#4 And on that note, kids are out of school during this time which makes it a lot easier for families, both from and out-of-town, to look at homes together. Decisions are made faster if all family members are present and that means a faster sell for you!

#5 Since volume trends lower during December, that can translate to a faster escrow too. Title and escrow officers are celebrating and waiting for your escrow to keep them busy. So let’s not disappoint them.

Hello HWMY Readers!

When preparing for an emergency, are your little ones protected? Not just our upright walking family members, but our four-legged ones too. Take a quick look at the ways to make sure you and your family stay protected! And remember, to Sell or Buy, ALWAYS call Homes With MY 619-887-4969 (HWMY)!

Yours Truly, MY

Myeshia "MY" Abdul-Hakeem 7/23/18 Myeshia "MY" Abdul-Hakeem 7/23/18

What's Your 'Housiversary?'

Hello HWMY Readers!

Have you heard the latest trend called, “housiversaires?” Well it’s exactly what it sounds like: a celebration of when you bought your house. Oh how much fun do these sound?? Would you host a housiversary? Or have you attended one? Please let us know in the comment section below! And remember, to Sell or Buy, ALWAYS Call Homes With MY 619-887-4969!

Yours Truly, MY

Your new home awaits.