Reality Check on Foreclosures
There's been a buzz about foreclosure rates across the country recently. People are asking if foreclosures are spiking and what can we do with this current data. What are the real stats on foreclosures? Before we examine our current situation, let us first look at what happened in the past 2 years. 2019 was the last normal year the whole world had, which includes the real estate market. According to Rick Sharga, the Executive Vice President of the firm that issued the Q3 2021 U.S. Foreclosure report, "September 2020 foreclosures were 70% less than September 2019. " This is due to extended forbearance plans. If we look at the current data that says foreclosures are 68% higher than last year's, this might be shocking until we compare the rates from 2019 and 2020. If you take a closer examination of the data, foreclosures are still significantly lower than what can be seen in a normal housing market pre-pandemic. Should you be concerned about the foreclosure rates? In a statement released recently by Rohit Chopra, the Director of the Consumer Financial Protection Bureau (CFPB), it is said that the government is doing everything it can to make sure that homeowners can still stay in their homes. They have released a statement to mortgage servicers to continue and reinforce their efforts to assist customers and members affected by the pandemic. In the Q4 2021 Foreclosure Market Outlook by auction.com, foreclosures' prices are up by 42% caused by a strong demand for more inventory. It is with hope that through these statements, along with the guidance of your trusted real estate professional, you can debunk any misinformation disseminated and make necessary steps that are applicable to your current situation. UPDATE ON FORECLOSURES: Among the homeowners who were in the forbearance program, more than half were able to exit either fully paid or arranged changes in terms. Only 16.8% left the program still in trouble. However, those who left the program who were still in trouble are given the chance to still negotiate a repayment plan. The government is giving more opportunities for homeowners to be able to retain their houses as they navigate the market. If all else fails, the option to sell their home is still a great one especially with the growth of equity the past years. This will give homeowners to start a new chapter without being heavily burdened financially. If you have any questions about this matter, or would like to know more about what you can do in today's market, we'd be glad to help out! Call 925-415-0835 today! Sources: https://image.adc.auction.com/lib/fe391570756404787c1774/m/3/c441fd11-2b21-40ac-9da2-ce7836e5e0ae.pdf https://dsnews.com/daily-dose/11-10-2021/foreclosures-tick-up-in-october https://www.attomdata.com/news/market-trends/foreclosures/attom-september-and-q3-2021-u-s-foreclosure-market-report/ https://www.mykcm.com/2021/11/23/dont-believe-everything-you-read-the-truth-many-headlines-overlook/
Taking a Break in the Home Hunt? You are Not Alone...
Homebuying can be very stressful for many reasons. The prices are high, the competition is tough and the available homes are low. Yes, there are a few improvements in the market that are favoring buyers but that is not the case for everyone. If you're one of those who stopped the home hunt, tired of it, or just even thinking of stopping, you are not alone. In fact, according to the National Association of Realtors (NAR), there's a 2.3% decrease in pending home sales in September as compared to August. Let's look at the current numbers: Tight Inventory As of the time this blog is written, there are only 31 available listings in Danville, 28 listings in San Ramon, 23 listings in Dublin and only 22 available listings in Pleasanton. The current inventory across the country is at its lowest as compared to the past years. There is no certainty of an increase in the inventory but the current situation suggests that competition is still quite tough. Rising Mortgage Rates The mortgage rates have stopped plunging after the half of 2021. Even though the rates are now rising, they are still comparably lower than the rates 5 years before the pandemic. Price Growth is Slowing Down, but not Falling House prices shot up the ceiling from the end of 2020 up until the 3rd quarter of 2021. However, things are slowing down as the year ends. Prices of homes are still higher as compared to their pre-pandemic value, but there are no signs of stopping of price appreciation. Is this your sign to stop home buying? Assess your current situation and ask yourself the following questions: Am I prepared to battle it out in the bidding war? How urgently do I need to move? What are the compromises I can make during the home search? Do I have a trusted realtor whom I know will be taking it upon themselves to give me the best advice? What's the Next Step for You? With the advice of the real estate professional, you can wisely gauge the best step for you. Assess your season, your needs and your realistic budget. Consult a real estate expert that is trusted by many to ensure that you'll make a wise investment. If you're looking around East Bay, contact our team at 925-415-0835. Sources: Market Watch1 Market Watch2 Realtor.com
Hidden Costs Homebuyers in California are Unaware Of
In a recent article by realtor.com, they reported that 44% of homeowners were not completely aware of the costs when buying a home. It’s a common misconception that home buying is just that, buying a home. But there are a lot of additional costs you have to be aware of when you are planning to buy your dream home in California. Some of the fees that are commonly known are home inspection costs, document fees, property taxes, home insurance, and title fees. The following are some of the lesser-known ones that you should take into consideration as you save for your dream home. CLOSING COSTS According to the real estate data and technology company ClosingCorp, the average closing cost for single-family homes is $6,087. That includes title policies, appraisals, settlement and recording fees, land surveys, and transfer taxes. That being said, in California, the closing cost is between 0.98% and 1.15% of the total purchase price. The price of an average home is $600,000 to $700,000. If the home you’ll be buying is within that range then prepare an amount between $5,880 and $8,050 — before taxes — in closing costs. POTENTIAL RENOVATIONS 53% of homeowners interviewed in the same study didn’t consider potential renovations as part of the budget when buying a home but not improving the build of the home could be more costly than renovating. HomeAdvisor.com gives a range of $18, 077-$76, 454 in renovating your home, depending on the size of the room, the materials that will be used, the extent of the renovation, and what the problems are. MELLO-ROOS TAXES Mello-Roos taxes are applicable to residents of the district who will benefit from them. Basically, Mello-Roos taxes fund improvements done to local services and infrastructure like building and repairing streets, sewers and sanitation systems, etc. If you want to read more about it, read this article by Investopedia. ARE THERE MORE HIDDEN COSTS? These are just some of the “hidden” costs when purchasing a home. Yes, there are more. But don't worry. With us, nothing is hidden from you. Every member of our team is very upfront and trustworthy, which are the exact values of the Rama Mehra team. But don’t take our word for it, read our more than 350 5-star reviews on Zillow. We’ll be glad to give you a wonderful home buying experience. Call us today at 925-415-0835! SOURCE
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