Tag Archives: real estate news

Median Price of Single Family Homes Already On The Rise In 2016

Santa Clarita Home Prices Take a Sizable Upswing In January

Last year, there were some experts and analysts wondering just how long the real estate market could continue to rise. There were definitely rumors of changes in light of What is your home's value?interest rates being raised by the Federal Reserve at the end of last year.

January is usually a very slow month for real estate. Many buyers and sellers are recovering from the holidays, and it's usually not at the forefront of the "to do" list. Typically, we see a slight drop in home values between December and January. For example, last year January saw a $15,000 drop in home prices from December of 2014. At the beginning of 2013, home prices dropped nearly $40,000 in one month. You get the picture, right?

However, this January saw single family home prices actually JUMP by $12,000 over December's closing price of $518,000. That's right. TWELVE THOUSAND IN ONE MONTH!

How is this happening in what's normally a slow month for real estate?

For one, mortgage rates are still dropping. That's right! We've seen them go down almost half a percentage point in recent months, and currently (As of the date of this post), rates for a 30 year fixed rate mortgage are at the nearly historic low of 3.64 percent. Qualified buyers can get a 15 year fixed rate home loan for just UNDER 3 percent.

If that's not motivation to get "off the fence" and find your dream home, then what else is there?

Continue reading Median Price of Single Family Homes Already On The Rise In 2016

Interest Rates Went Up…But They Didn’t Go Up!

A big deal was made out of the Federal Reserve raising rates last month, so why are they still at historic lows?

It was one of the biggest “hold  your breath” moments in the financial community. They said it was coming all year long. What would happen when it Mortgage applications on the rise in 2015did? Would it change the mortgage and real estate industry as we know it? Are the good times over?

Yes, we’re talking about the Federal Reserve finally following through on a promise they’ve been making for quite some time: The raising of interest rates. Now, when we discuss raising rates from a Federal Reserve standpoint, we’re talking about the rate lenders pay the Federal Bank to borrow money at what would be in laymen’s terms, a “wholesale” rate. For the first time in nearly a decade, the Fed bumped their rates a quarter percent.

So what are interest rates for home buyers today?

As of the date of this article, rates for a 30 year fixed-rate mortgage stand at 3.98 percent*, which is a near record low. If you want an even lower rate, shoot for a 15 year fixed-rate mortgage, which is holding at just 3.15 percent.  Continue reading Interest Rates Went Up…But They Didn’t Go Up!

Shift In Real Estate Market Creating More Opportunities For Buyers

SCV housing prices leveled off in September while interest rates dropped. Is it time to jump into home ownership?

New statistics recently released from the Southland Regional Association of Realtors showed single family home

Team Avalos Real Estate Santa Clarita
Rose and Carlos Avalos

prices leveling off in the Santa Clarita Valley for the month of September.

Home values dropped slightly from $523,000 in August to $515,000, which is not untypical for this time of year. Condo prices held steady, with no decrease month over month between August and September.

This however may create better opportunities for home buyers looking to get into property ownership before the end of the year.

Interest rates still dropping.

Despite rumors of a rise by year’s end, mortgage interest rates continue to fall, and are holding below 4 percent, giving home buyers a continued boost in their purchasing power. As of the date of this article, mortgage rates are holding as follows: Continue reading Shift In Real Estate Market Creating More Opportunities For Buyers

Fed Hints At Possible Rate Hikes

The Federal Reserve has held off on raising rates for now, but how long will it last?

Buyers have been very fortunate for the past several years to enjoy what has become historically low interest rates. In 2008, the Federal Reserve dropped their base rate (The rate at which lending institutions can borrow money) to practically zero percent. Of course, consumers pay a bit more on their rates, but even still, home buyers have been able to take advantage of rates as low as 3 and a half percent. Currently, rates stand just below 4 percent.

Why are interest rates so low, and why might they rise again?

You might say that interest rates can reflect economic conditions nationally, and even internationally. In most cases, rates rise or fall based on Tips for first time home buyerseconomic forecasts that include the potential for inflation as our economy improves. That being said, in 2008 the Federal Reserve dropped rates in an effort to stabilize the real estate and credit markets, which were struggling due to issues that affected our economy and put the US on shaky financial footing.

Why would rates rise? As our economy improves, there is more money for goods and services, which in turn may cause prices to rise, or “inflate,” due to demand. There’s a delicate balance between inflation that could get out of hand (Known as “runaway inflation”) and putting systems in place that can maintain our economy without becoming volatile or unpredictable.

Raising interest rates has the ability to control the purchasing power of consumers to the degree that it could make them think twice about how they spend their money. This in turn could help to keep the price of goods and services steady, thus avoiding potential runaway inflation.

The Federal Reserve recently held off on raising rates due to our economy not showing any warning signs of unpredictable inflation. That being said, they may revisit this before the end of the year, with news that rates could rise as early as December.

Don’t wait! Qualify for a loan today!

If you’re on the fence about buying a home, now is the time to find out if you qualify for a mortgage and begin to take advantage of all the benefits of home ownership. Contact Team Avalos today for a no obligation consultation.

 

Home Prices Hold Steady Through August

Santa Clarita holding its own in housing sales.

As summer sizzled its way through August, the SCV saw only a slight uptick in overall median housing prices, holding at $468,600, rising $4,000 Overlooking Saugusfrom July. This median level includes all homes, including single family and condominium sales.

Typically we do see an upswing in August from July as it represents the peak of the summer buying season. August also showed less listings and escrow closings than July, with 446 homes being listed for sale, and 415 homes closing.

Of course, even with home prices on the rise, buyers are still finding their purchasing power boosted by interest rates that are still below 4 percent, despite worries that they may rise. That fear was put on hold last week when, after a two day conference held by the heads of the Federal Reserve, it was decided that rates would remain at their current position for a while longer. There are hints that they may rise as early as December, however.  Continue reading Home Prices Hold Steady Through August

SCV Home Sales Up Nearly 20 Percent Over This Time Last Year

Santa Clarita single family homes holding at just over $500K, while condos take a leap forward in July.

Recent statistics released by the Southland Regional Association of Realtors showed home prices holding, with single family homes in the Santa Team Avalos Real EstateClarita Valley at an 8 year high, and condo prices jumping $15,000 from June.

The median price of a single family home in the SCV clocked in at $509,500 for the month of July. Condominiums in the valley are currently at a median price of $330,000.

442 homes closed escrow in July, which is a 16% increase over July of 2014. A total of 546 residential properties were listed last month, with 470 homes opening escrow.

Home Mortgage Rates

Home mortgage rates have dropped once again below 4 percent, holding as of the date of this article at 3.93 percent for a traditional 30 fixed rate loan. Some other loan options have even more favorable rates, including: Continue reading SCV Home Sales Up Nearly 20 Percent Over This Time Last Year

What It Takes To Earn Our Commission

Some owners think a Realtor’s commission is too high a price to pay. Here’s the real story on how we actually earn it.

It’s rare to find a real estate agent who works on a salary. In fact, as far as residential real estate sales goes, they’re practically a non existent entity.

Team Avalos Real Estate Santa Clarita
Rose and Carlos Avalos

Real estate agents (Like us) earn a living through the sale of homes…period. The commission amount usually equals a small percentage of the home’s total selling price that is negotiated between the seller and the agent. Even still, in some homeowner’s eyes that’s a lot of money. So we’ll break it down a bit more for you to show you what (and how) we actually earn when escrow is closed and we hand the keys to the buyer. Oh yeah, we don’t get paid a dime until escrow is closed!

Commission Split Between Listing Agent and Buyer’s Agent

Real estate agents who work with buyers also work on commission, and without this networking opportunity, the number of buyers coming through your home may be extremely limited. Offering a portion (usually half, maybe a bit more, maybe a bit less depending on the situation) of the total commission to an agent who brings a buyer is standard fare in the real estate world.

Okay, we’re down in commission by half…so what?

Marketing Your Listing Continue reading What It Takes To Earn Our Commission

The Pros and Cons Of The 15 Year Home Mortgage Loan

There are many benefits to paying off your mortgage more quickly, but is a 15 year loan right for you?

Interest rates are a sticky business. They rise, they fall…and while we try to predict their outcome, they’re a “moving target” when it comes to really 15yearfixedtrying to pinpoint where they will land on any given day.

We’ve noticed just a little bit of a bump in rates over the past month or so. Even still, they are holding just over 4 percent, which is still incredible. Are you aware that there are loan programs out there that are not only available at lower than standard rates, but will help you own your home more quickly?

The 15 Year Home Loan

Wouldn’t it be great to not have to make your mortgage payments for 30 years? What about the possibility of putting more of your house payment toward your principle, which increases your equity as you pay down your loan faster? What if, on top of all this, your loan is at a lower interest rate than a traditional 30 year home mortgage? Continue reading The Pros and Cons Of The 15 Year Home Mortgage Loan

Where Will You Get Your Home Buying Money From?

Buying a home requires more than just funds from your home loan. Here are some tips that will help you cover other costs.

Yes, now is the perfect time to buy a home! Of course, a home purchase comes with costs you may incur above the price of the home. Insurance, Is your home a worthwhile investment?escrow and title fees, are just a few of the “closing costs” as part of the purchase process.

Then of course, is your down payment. Whether you’re going with a traditional fixed-rate mortgage with 20 percent down, or taking advantage of a loan with a lower down payment (Some loans are available with as little as 3 percent down), you still need to come up with that cash. So where does that cash come from? Here are a few suggestions.

Save it up!

Yes, here’s doing it the old fashioned, but tried and true way. When it comes to buying a home, it’s best to make your financial plan that gives you enough time to make sure your money is in order. This includes debt management and budgeting, so that you have the best opportunity to qualify for a low interest rate. While you’re making this plan, include a way to save some of that cash and put it away for your home purchase costs. Continue reading Where Will You Get Your Home Buying Money From?

Santa Clarita Home Prices Jump To Over $500K

Median Single Family Home Prices Rise 6% In One Month

Good news for Santa Clarita homeowners! Recent statistics released by the Southland Regional Association of Realtors showed the median price of a Team Avalos Real Estatesingle family home in the SCV rose to $520,000 in March; up a little more than 6 percent from February’s median price of $490,000.

That’s a $30,000 increase in equity in one month!

Are you starting to see why it’s better to own than to rent your home?

Now to be clear, home equity doesn’t jump this much every single month, but year over year, real estate in the Santa Clarita Valley has averaged an increase of over 6 percent since 1998 (The first full year the Southland Regional Association of Realtors provided public statistics). This includes the short term declines in the real estate market during the darkest years of the recent recession between 2008-2011.  Continue reading Santa Clarita Home Prices Jump To Over $500K