THE BLOG

25
Sep

25% of Homes with a Mortgage are Now Equity Rich!

25% of Homes with a Mortgage are Now Equity Rich! | MyKCM

Rising home prices have been in the news a lot lately and much of the focus has been on whether home prices are accelerating too quickly, as well as how sustainable the growth in prices really is. One of the often-overlooked benefits of rising prices, however, is the impact that they have on a homeowner’s equity position.

Home equity is defined as the difference between the home’s fair market value and the outstanding balance of all liens (loans) on the property. While homeowners pay down their mortgages, the amount of equity they have in their homes climbs each time the value of their homes go up!

According to the latest Equity Report from ATTOM Data Solutions, “13.9 million U.S. properties in Q2 2018 were equity rich — where the combined estimated balance of loans secured by the property was 50 percent or less of the property’s estimated market value — representing 24.9% of all U.S. properties with a mortgage.”

This means that nearly a quarter of Americans who have a mortgage would be able to sell their homes and have a significant down payment toward their next home. Many who sell could also use their new-found equity to pay off high-interest credit cards or help children with tuition costs.

The map below shows the percentage of properties with a mortgage in each state that were equity rich in Q2 2018.

25% of Homes with a Mortgage are Now Equity Rich! | MyKCM

Bottom Line

If you are a homeowner looking to take advantage of your home equity by moving up to your dream home, let’s get together to discuss your options!

24
Sep

Spooky Halloween Events in San Diego 2018

2018 Halloween Events in the San Diego Area You Don’t want to miss by Willis Allen Real Estate

Halloween is just around the corner… How do plan on spending it.  Here is a list of the events happening around San Diego this year!

 HAUNTED HOUSES   

The Haunted Hotel, Sept. 28-Oct. 31
Gaslamp District
www.hauntedhotel.com/home/
Recently ranked the “Scariest Haunt in America,” the Haunted Hotel in the Gaslamp District is San Diego’s longest-running haunted house. There is a half-price preview weekend on Sept. 21-22.  

The Haunted Trail, Sept. 28-Oct. 31
Balboa Park
www.hauntedtrail.net
If you dare, take a terrifying traipse through the trails of twisted pines and gnarled oaks. It’s so scary that you must be at least 10 years old to enter!

The Scream Zone, Sept. 28-Oct. 31
Del Mar
www.thescreamzone.com
This is San Diego County’s largest haunted experience. It’s also considered one of Southern California’s scariest and goriest haunted houses. There are also food vendors, photo opps and the Spirit Lounge bar.

Savage House Haunted Attraction, Oct. 4-31
Mission Valley
A new twist on the haunted house experience, the Savage House will immerse you in a storyline fit for a horror film from beginning to end.

Ghostly Happenings, Oct. 12
Hotel Del Coronado
www.hoteldel.com/events/ghostly-happenings/
World-renowned medium James Van Praagh conjures up spirits and personal messages from the other side.  There might even be an appearance by one of the hotel’s ghostly guest! The VIP ticket includes a ghost tour.

FRIGHT-FREE FESTIVALS

LEGOLAND Brick-or-Treat, Sept. 29-Oct. 27
Carlsbad 
www.legoland.com/california/legoland-california/entertainment/events/brick-or-treat/
This family event includes live entertainment, character meet-and-greets, a costume contest, trick-or-treating, an AstroBash Dance Party and more!

Pumpkin Express, Oct. 6-28
Campo & La Mesa 

www.psrm.org/pumpkin/
Join the Pacific Southwest Railway Museum Association in the Pumpkin Express Halloween Celebration. It is complete with a train ride, pumpkin patch and more.

Haunted Tales, Oct. 20 and 27
Star of India, Downtown San Diego 

www.sdmaritime.org/visit/public-events/haunted-tales/
Aspiring ghosts, goblins, pirates and princesses are invited to the Star of India for some ghostly tales. At the event, storytellers reveal the eerie legends of our seafaring past.

Trick-or-Treat on India Street, Oct. 26
Little Italy
www.littleitalysd.com/events/trick-or-treat-on-india-street
This fun and safe Halloween event makes it possible for urban families to enjoy authentic trick-or-treating fun. That’s because Little Italy businesses along historic India Street open their doors to give out candy and Halloween treats.

Haunted Aquarium: Sea Monster Mash, Oct. 26-27
Scripps Aquarium, La Jolla
Discover a sea of glowing beasts, get sticky with slime, and enjoy shipwrecked stories. At the same time, you can boo-gy down to live music and having a monstrous good time.

Balboa Park Halloween Family Day, Oct. 27
San Diego
San Diego’s Balboa Park and its museums treat families to a free Halloween Family Day with a spooky array of hands-on activities and other free goodies.

Monster Bash, Oct. 27
Downtown San Diego
www.sandiegomonsterbash.com
San Diego’s favorite Halloween festival returns with a new WCKD twist. Six blocks in the East Village transform to offer entertainment, supernatural experiences and more!

24
Sep
24
Sep

How Much Has Your Home Increased in Value?

How Much Has Your Home Increased in Value? | MyKCM

Home values have risen dramatically over the last twelve months. In CoreLogic’s most recent Home Price Index Report, they revealed that national home prices have increased by 6.2% year-over-year.

CoreLogic broke down appreciation even further into four price ranges, giving us a more detailed view than if we had simply looked at the year-over-year increases in national median home price.

The chart below shows the four price ranges from the report, as well as each one’s year-over-year growth from July 2017 to July 2018 (the latest data available). 

How Much Has Your Home Increased in Value? | MyKCM

It is important to pay attention to how prices are changing in your local market. The location of your home is not the only factor which determines how much your home has appreciated over the course of the last year.

Lower-priced homes have appreciated at greater rates than homes at the upper ends of the spectrum due to demand from first-time home buyers and baby boomers looking to downsize.

Bottom Line

If you are planning to list your home for sale in today’s market, let’s get together to go over exactly what’s going on in your area and your price range.

17
Sep
14
Sep

NAR Reports Show It’s A Great Time to Sell!

NAR Reports Show It’s A Great Time to Sell! | MyKCM

We all realize that the best time to sell anything is when the demand for that item is high and the supply of that item is limited. The last two major reports issued by the National Association of Realtors (NAR) revealed information that suggests that right now continues to be a great time to sell your house.

Let’s look at the data covered in the latest Pending Home Sales Report and Existing Home Sales Report.

THE PENDING HOME SALES REPORT

The report announced that pending home sales (homes going into contract) are down 2.3% from last year and have continued to fall on an annual basis for seven straight months.

Lawrence Yun, NAR’s Chief Economist, had this to say:

“The reason sales are falling off last year’s pace is that multiple years of inadequate supply in markets with strong job growth have finally driven up home prices to a point where an increasing number of prospective buyers are unable to afford it.”

Takeaway: Demand for housing is strong and will continue to grow in 2019. Without an influx of new listings for sale, pending home sales will continue to decline. Listing now means you will be able to take advantage of the demand currently in the market.

THE EXISTING HOME SALES REPORT

The most important data point revealed in the report was not sales-based, but was instead the inventory of homes for sale (supply). The report explained:

  • Total housing inventory decreased 0.7% to 5.34 million homes available for sale in July
  • This represents a 4.3-month supply at the current sales pace
  • Sales are now 1.5% below a year ago

There were two more interesting comments made by Yun in the report:

“Led by a notable decrease in closings in the Northeast, existing home sales trailed off again last month, sliding to their slowest pace since February 2016 at 5.21 million.”

In real estate, there is a guideline that often applies: When there is less than a 6-month supply of inventory available, we are in a seller’s market and we will see appreciation; between 6-7 months is a neutral market, where prices will increase at the rate of inflation; and more than a 7-month supply means we are in a buyer’s market and should expect depreciation in home values. As Yun notes, we are (and will remain) in a seller’s market and prices will continue to increase unless more listings come to the market.

“Listings continue to go under contract in under a month, which highlights the feedback from Realtors® that buyers are swiftly snatching up moderately-priced properties. Existing supply is still not at a healthy level, and new home construction is not keeping up to meet demand.”

Takeaway: Inventory of homes for sale is still well below the 6-month supply needed for a normal market. Prices will continue to rise if a sizable supply does not enter the market.

11
Sep
07
Sep

What Does the Future Hold for Home Prices?

What Does the Future Hold for Home Prices? | MyKCM

Home prices are at the top of everyone’s minds. Can they maintain their current pace of appreciation? Will rising mortgage rates negatively impact home values? Will the next economic slowdown cause prices to crash?

Let’s try to answer these questions based on what has happened in the past as well as what we know about the current real estate market.

The Impact of Rising Interest Rates

We explained earlier this year that rising mortgage rates have not negatively impacted home prices in the past and probably wouldn’t this time either. Freddie Mac’s comments were very direct:

“In the current housing market, the driving force behind the increase in prices is a low supply of both new and existing homes combined with historically low rates. As mortgage rates increase, the demand for home purchases will likely remain strong relative to the constrained supply and continue to put upward pressure on home prices.”

They were correct. So far this year, home values have continued to appreciate above normal historic percentages and it appears the gradual increase in rates has had little impact on prices.

The Impact of an Economic Slowdown

Many people fear that when the economy turns, we may see the same depreciation in home values as we did a decade ago.

However, we recently reported that the same group of economists, real estate experts, and investment & market strategists who predicted the next recession will occur in the next 18-24 months have also projected that house prices will continue to appreciate for the next five years, albeit at smaller percentages.

It Comes Down to Supply and Demand

As always, home prices will be determined by the demand to purchase compared to the available inventory of homes for sale. For the last six years, demand has far exceeded the available supply which has resulted in the average annual appreciation to top 6% since 2012. That is far greater than the historic norm of 3.6% annual appreciation that we saw prior to the housing boom.

There are currently small signs that housing inventory is slowly beginning to increase. Months supply of houses for sale matched last year’s numbers for the last two months after 37 consecutive months of decreasing inventory. New construction data has also shown positive signs that inventory will be increasing.

As inventory begins to meet demand, we will see appreciation return to more normal levels. We are already seeing projections coming in lower than the 6.2% annual average we have seen more recently.

CoreLogic is predicting that home values will appreciate by 5.1% over the next twelve months and the Home Price Expectation Survey calls for values to increase by 4.2% in 2019.

Bottom Line

Mark Fleming, Chief Economist at First American, explained it best:

“We’re seeing the first indications that price appreciation may be slowing, but the underlying fundamental housing market conditions support a natural moderation of house prices rather than a sharp decline.”

07
Sep

Home Prices Up 6.49% Across the Country!

Home Prices Up 6.49% Across the Country! [INFOGRAPHIC] | MyKCM

The information contained, and the opinions expressed, in this article are not intended to be construed as investment advice. We do not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision.  We will not be liable for any loss or damage caused by your reliance on the information or opinions contained herein.

04
Sep

5 Reasons You Should Sell This Fall!

5 Reasons You Should Sell This Fall! | MyKCM

Here are five reasons why listing your home for sale this fall makes sense.

1. Demand Is Strong

The latest Buyer Traffic Report from the National Association of Realtors (NAR) shows that buyer demand remains very strong throughout the vast majority of the country. These buyers are ready, willing and able to purchase…and are in the market right now! In fact, more often than not, multiple buyers end up competing with each other to buy the same homes.

Take advantage of the buyer activity currently in the market.

2. There Is Less Competition Now 

Housing inventory is still under the 6-month supply needed for a normal housing market. This means that, in the majority of the country, there are not enough homes for sale to satisfy the number of buyers in the market. This is good news for homeowners who have gained equity as their home values have increased. However, additional inventory could be coming to the market soon!

Historically, a homeowner stayed in his or her home for an average of six years, but that number has hovered between nine and ten years since 2011. Many homeowners have a pent-up desire to move as they were unable to sell over the last few years because of a negative equity situation. As home values continue to appreciate, more and more homeowners will be given the freedom to move.

The choices buyers have will continue to increase. Don’t wait until this other inventory comes to market before you decide to sell.

3. The Process Will Be Quicker

Today’s competitive environment has forced buyers to do all that they can to stand out from the crowd, including getting pre-approved for their mortgage financing. This makes the entire selling process much faster and much simpler as buyers know exactly what they can afford before home shopping. According to Ellie Mae’s latest Origination Insights Report, the average time it took to close a loan was 44 days.

4. There Will Never Be a Better Time to Move Up

If your next move will be into a premium or luxury home, now is the time to move up! The abundance of inventory available in these higher price ranges has created a buyer’s market for anybody looking to purchase these homes. This means that if you are planning on selling a starter or trade-up home, your home will sell quickly AND you’ll be able to find a premium home to call your own!

According to CoreLogic, prices are projected to appreciate by 5.1% over the next year. If you are moving to a higher-priced home, it will wind up costing you more in raw dollars (both in down payment and mortgage payment) if you wait.

5. It’s Time to Move on With Your Life 

Look at the reason you decided to sell in the first place and determine whether it is worth waiting. Is money more important than being with family? Is money more important than your health? Is money more important than having the freedom to go on with your life the way you feel you should?

Only you know the answers to the questions above. You have the power to take control of the situation by putting your home on the market. Perhaps the time has come for you and your family to move on and start living the life you desire.

That is what is truly important.