Canyon Lake Real Estate Trends Issue CL02

Real Estate Trends Newsletter MORE USEFUL REAL ESTATE INFO AT: WWW.BEVINSGROUP.COM Beautiful Mediterranean Home For Sale Real Estate Trends Keeping you up to date with useful real estate news and intelligence ISSUE NO. CL02 FEBRUARY 2014 Brought to you by Justin Bevins Real Estate Headlines Confusing? Mortgage Corner How to make sense of all the market news. There are a lot of conflicting reports out there about real estate and it seems that with so many places to get news - television, blogs, financial sites, real estate sites - that it’s easy to get confused about what’s going on in our market. me that they think prices will go down based on what they’ve heard in the news. So what do you believe and what’s really going on with Canyon Lake real estate? The first thing to remember is that real estate is local, meaning that what’s going on in Southern California housing markets could be much different than what’s happening in other states or cites. In fact, it could be different than a neighboring town. Right now, the number of available homes in Canyon Lake is near the highest it’s been in the last few years, but it’s still historically low. With about 105 homes and condos currently available, there is a 4.9 month supply of inventory at the current sale rate. So when you read national real estate headlines in the newspaper or online, or hear national news, it might not have much bearing on our local market. For instance, here are a few recent headlines and an interpretation for our local market: How does this compare to previous years? By Justin Bevins Gorgeous Canyon Lake Property Reminiscent of an Italian Hillside Villa! A Must See for The Most Discriminating Buyer. Enjoy the views from nearly every room of this highly upgraded home sitting above prestigious Gray Fox Dr. The state-of-the-art kitchen includes a 48” dual fuel commercial style range, GE Monogram refrigerator with custom matching panels, beautiful exotic leatherette granite, custom hood, handmade copper sinks, radiant heated floor, and far too many extras to list here. An open floor plan features 3 bedrooms (2 on main level) include two master suites with view verandas. Hand Scraped Hickory, Walnut hardwood and Travertine floors throughout, Custom Paint and Crown Mouldings, Stunning rock walls tower over the pebble-tech saltwater pool and spa with 2 elevated waterfalls, lush landscaping with automatic irrigation and no lawns to mow, All Propane appliances, tank less hot water heater and furnace to save on electric bills, Newly installed 16 SEER Energy Star HVAC Fully finished insulated 2 car garage with Cabinets, Ample Under house storage area, Boat and Possible RV parking. “Report: 2013 Ended With Higher Housing Demand, Prices” -Realtor.com With 7 California Markets in the top ten in the nation for median price increases, 4 markets in the top ten for shortest days on market, this report is probably more true in Southern California and our area than anywhere else. “Builders Hike Their Prices” -Realtor Mag via Wall Street Journal For more information about this beautiful home, contact Justin at 951-326-0521 “Builder Confidence Slips One Notch in January” -National Association of Home Builders HOUZZ Inspiration Looking for inspiration for that next home project? Check out a website called HOUZZ.com where you can see thousands of ideas for every room in the house. “Justin worked with my mother & I to sell her home. We lived in another state and needed to sell the home quickly. Justin walked us through everything to get the house listed and ensured we felt the house was selling at the correct price range. Not only did we get 12 offers the first day it was listed, most were above asking price. We sold the home within a week and escrow closed in 15 days. Equally as important as selling the house, Justin helped keep us at ease with the process and kept our best interests a priority. I would HIGHLY recommend anyone selling or buying a home to reach out to Justin. Thank you again Justin for all your help!” -Sharon Clark Download updated market reports, neighborhood statistics, and even request a free market valuation for your home at www.BevinsGroup.com INSIDE THIS ISSUE Real Estate Headlines Can Be Confusing. New Mortgage Rules for 2014; Should You Be Worried? It’s Tax Time Again... and more. PLUS: Your Canyon Lake Market Report Justin Bevins, REALTOR®, BRE #01407424 tel [phone]  fax [phone]  email [email protected] Those two headlines came out within a week of each other. The Wall Street Journal says new home prices are going up and builders say their confidence is down. So which is it? Well, homebuilders did well in 2013, but December and January where slow and seasonal dips and peaks are normal. “Americans believe housing prices will rise, poll says.” -The Washington Post That’s the headline, but I’ve had many clients tell Real Estate Agents Rank Biggest Home Seller Mistakes A recent survey of real estate agents by ActiveRain has confirmed that there are certain things a seller should avoid if they are trying to get their home sold for the best price in the least amount of time. In the worst part of the market from 2008-2010 we usually had over 200 homes available at any given time and most of them were short sales and foreclosures. Then in late 2012 things changed a bit and in 2013, we had a housing shortage with only about 70 homes available at any given times Canyon Lake saw almost a 30% increase in median home prices overall as a result of the inventory shortage. Some experts are predicting a continued housing shortage, which should help continue to lift prices. And while the first few weeks of 2014 were a little slow, activity is already picking up towards the end of January with more than 18 properties going into contract during the month. Interest rates and new lending rules will squeeze affordability for some folks, but the market will adapt and people will adjust spending patterns and lifestyle expenses to work towards buying homes. For now, our local market is still healthy with agents showing clients around every weekend, new listings coming on the market daily, and an average of about 20-30 homes closing each month. To help sort out the news, follow the local real estate news sources or check out our weekly market reports at BevinsGroup.com/market-reports -Justin New Mortgage Rules for 2014... Should you be worried? By Dave Fitzpatrick Hi Folks! Happy February to all, and please don’t forget your loved ones on February 14th. Speaking of ‘loved ones’, the CFPB and Congress are pushing lenders into an arena of even more compliance, under the guise or name of ‘QM’ or Qualified Mortgage. Now there has been a good amount of ‘talk’ over the past few months, with moments of ‘panic’ from some facets of the lending industry. This talk over ‘QM’ is really just an over-sensationalizing of standard lending practices that have ‘gone away’, ‘been left to the side’, ‘put on hold’. Standard (traditional) lending practices have always centered around making sound decision(s) about a borrowers’ capacity/ability to make their mortgage payment every month, given certain ‘minor’ things like……is your client employed? For how long? What is the client’s debt load vs. income? What kind of money is left after the bills are paid? Do your clients have the ability to save money (do they have any ‘reserves’ for a ‘rainy day’)? What does their credit look like? Is your client likely to still have his/her job the week after they get their new home? Here is some Information from Vicki Needham, writing for The Hill, on January 14th, 2014: Financial institutions are pressing Congress and federal regulators to scale back sweeping new mortgage rules for fear they could impede the housing market’s recovery. Credit unions in particular are seeking an exemption from the regulations and have asked Congress to protect them from punishment while they work to comply with the more than 5,000 pages of rules. They say their low delinquency and default rates should be all the evidence that the Consumer Financial Protection Bureau (CFPB) needs to carve them out of the qualified mortgage rules. Many credit unions have indicated they would not be able to comply with the regulations on time. To that end, the CFPB has said it is taking a lighthanded approach by issuing warnings rather than penalties as the industry adjusts. (continued on page 3) The results of this survey are no surprise to real estate agents, but sellers need to understand that eliminating as many hurdles as possible to the sale of your home will help you achieve your desired outcome. Dave Fitzpatrick Of the top mistakes, most are ultimately in the hands of the seller. Working with your real estate agent to minimize the impact of each of these mistakes will make the sale of your home a reality. Ph: 951/296-6066 www.BevinsGroup.com The infographic to the right shows the six most common mistakes. If your property is currently listed with a real estate broker, please disregard this notice. It is not our intention to solicit the offerings of other real estate brokers. Equal Housing Opportunity. Source: ActiveRain.com Wallick and Volk, Temecula 27708 Jefferson Ave. #105 Temecula, CA 92590 Fax: [phone] www.davidfitzpatrick.wvmbtemecula.com NMLS #259057, Licensed by the Dept. of Corporations under the California Residential Mortgage Lending Act. License #4130785. Corporate NMLS 2973. Notice: This is not an offer to lend or extend credit. All loans are subject to credit approval.