The start of a new year always compels people to take a fresh look at their health, career, relationships, and financial goals. But with historically low mortgage rates, increased home sales and price growth, and tight housing inventory, the time is right to also make some homeownership resolutions for 2021.
While the U.S. economy is experiencing turmoil in many segments due to the global coronavirus pandemic, real estate has remained relatively unscathed. Historically low mortgage interest rates have led to increased demand for home purchases. Combined with relatively low home inventory in many markets, home prices are reaching record levels with no clear end in sight. One market expert predicts that demand for home purchases will remain strong throughout 2021 and beyond — especially given statements from the Federal Reserve indicating a regime of near-zero interest rates for the foreseeable future.
We hear a lot about encouraging our kids and the power of “Yes”. But I actually think it’s really important and relevant to say “No”.
If you grow up always hearing “Yes” or having the path cleared for you, it can be very difficult when you encounter hardships in life.
I’ve spent time these past couple of weeks and months thinking about constructive ways I can say “No” to my kids. I want to have them develop some inner resourcefulness that will help them later on with their careers and just make them better human beings to be around.
Shelter-in-Place orders have led to limitations on in-person home showings. These changes have forced agents to quickly adapt to an entirely new landscape. Unsurprisingly, some agents are more comfortable with virtual technologies than others. How do you ensure you are partnering with an agent who is a master of digital systems? A few things to ask:
This year has demonstrated, perhaps more than ever, the importance of our family, friends, neighbors, and community. It truly takes a village to keep a community functioning effectively, whether that’s by keeping our waterways clean, feeding the hungry, teaching our kids, or supporting small businesses.
“2020 will be known for a lot of things, and a record-breaking year for real estate will certainly be one of its more unexpected legacies,” prominent economist Daryl Fairweather said. And he’s right: most of us would have expected the housing market to suffer from circumstances like a once-in-a-hundred-years pandemic and historic inventory shortages.
For years now, virtual home tours have helped real estate buyers far and wide find the perfect home. From long-distance military personnel being relocated, to investors expanding their portfolio, to homeowners looking for a vacation getaway, this technology makes finding a house that’s a bit out of driving distance much easier. And for real estate agents, virtual tours have been a useful way to help buyers with their home search and to assist sellers in creatively marketing their listings.
The pandemic has changed the way many of us live, work, and attend school—and those changes have impacted our priorities when it comes to choosing a home.
According to a recent survey by The Harris Poll, 75% of respondents who have begun working remotely would like to continue doing so—and 66% would consider moving if they no longer had to commute as often. Some of the top reasons were to gain a dedicated office space (31%), a larger home (30%), and more rooms overall (29%).
Are you considering a home renovation as a way to increase the value of your propety? There are two ways that you can build value with any real estate investment. The first is through natural appreciation where the value of the property grows over time due to increased demand. Historically real estate has appreciated at a much faster pace than the rate of inflation. In California, real estate has appreciated at nearly 5% annually since the year 2000 which exceeds the inflation rate of about 2.2% over the same period.
The Bay Area real estate market continues to confound experts with high property prices which counters commonly held economic theory. Mortgage interest rates are at historic lows, buyer demand remains robust even in the face of widespread job losses, and prices for homes are at record high levels. So what gives? The basic supply and demand curve from microeconomic theory explains that as demand increases while supply remains constant (or declines), prices will go up.