sandy beachSouth Bay News

The South Bay is a collection of 13 cities that offer a vibrant Southern California lifestyle along the coast.

There's always something to do that is fun, entertaining, healthy, and close by. We'll keep you updated on a variety of events going on in our community

 

May 12, 2021

Why You Should Sell Your House Now: 3 Telling Graphs

All signs point to 2021 reigning as Year of the Seller when it comes to the housing market.

For those thinking of moving to a home that better suits changing needs, now is the perfect time to do so. With low mortgage rates still offering favor combined with high buyer demand offer opportunity to negotiate the best contract terms on the sale of a home at this hour.

The following three key graphs share insight at that which is driving the sellers’ advantage.

1. Historically Low Inventory

According to the National Association of Realtors (NAR), even with a slight rise in the number of houses for sale just this spring, inventory remains near an all-time low, as shown in the graph below.

A small uptick in inventory shows that sellers are beginning to reenter the market. Selling one’s home right now takes advantage of buyer demand and gets the most attention for the home – before more listings come to the market later this year.

2.  Frequent Bidding Wars

As a result of the supply and demand imbalance, homebuyers are entering bidding wars at an accelerating rate. NAR reports that the average number of bids received on the most recently closed sales is 4.8 offers.

The flexibility buyers may be forced into during bidding wars gives a seller the opportunity to choose the best buyer for their needs and be selective about contingencies.  Partnering with a trusted agent is the best way to determine how to best handle such negotiations; leaning on that expertise to navigate a deal will yield the most desired results.

3. Days on the Market

NAR reports:

Properties typically remained on the market for 18 days in March, down from 20 days in February and from 29 days in March 2020. 83% of the homes sold in March 2021 were on the market for less than a month.” 

 

 

Posted in Market Updates
May 5, 2021

Buy Now or Wait?

Thinking of waiting to buy a home in the next year or two?

Experts across the board are predicting increases in both home prices and interest rates. It’s unlikely that waiting to buy will mean saving money.

 

There is much to be said for buying now, which will equal less spending in the long run. 

Posted in Market Updates
April 27, 2021

The Heart of Homeownership

Homeownership has likely found its most sentimental and powerful meaning this past year, as many have found solace, safety, and serenity at home with those they love.

These results are exemplary of just how much a contented home contributes to quality of life.

April 21, 2021

Homeownership Is Full of Financial Benefits

According to a recent Fannie Mae survey, these were the most highly-rated benefits of homeownership that inspired consumer respondents:

  • 88% – a better chance of saving for retirement
  • 87% – the best investment plan
  • 85% – the chance to be better off financially
  • 85% – the chance to build up wealth

Respondents also cited that other benefits include having a better overall tax situation and being able to live within a budget.

Still, others may ask, Does homeownership actually give you a better chance to build wealth?

 

While each person’s / family’s unique feelings about the importance of homeownership will inevitably vary, it is fair to ask if the numbers justify owning a home as a financial asset.

In a (done every 3 years) Federal Reserve Survey of Consumer Finances – the latest edition covering through 2019 – findings confirmed that homeownership is a clear financial benefit. The survey found that homeowners have forty times higher net worth than renters ($255,000 for homeowners compared to $6,300 for renters).

The graph below only includes data through 2019, but according to CoreLogic, the equity held by homeowners grew by $26,300 over the last twelve months alone. So, the gap between the net worth of homeowners and renters has probably widened even further over the last year.

It might be argued that the difference in net worth may be due to homeowners normally having larger incomes than renters and therefore the ability to save more money. However, a study by First American shows homeowners have greater net worth than renters regardless of their income level, as seen in the graphic below.

Others may think homeowners are older and that’s why they have a greater net worth. However, a Joint Center for Housing Studies of Harvard University report on homeowners and renters over the age of 65 revealed the following:

“The ability to build equity puts homeowners far ahead of renters in terms of household wealth…the median owner age 65 and over had home equity of $143,500 and net wealth of $319,200. By comparison, the net wealth of the same-age renter was just $6,700.”

Homeowners 65 and older have 47.6 times greater net worth than renters.

The idea of homeownership as a direct way to build net worth has met the test of time. Now may be just the right time to take steps toward becoming a homeowner.

April 20, 2021

Multigenerational Housing is Gaining Momentum

Many homes are feeling a little cramped with adult children and/or aging parents living under the same roof.

There is inherent value in such a move, which benefits all household members including combined budgets and shared caregiving duties.

An enhanced, safe sense of home makes all generations feel welcome. With such a high demand for houses today, now is a great time to sell and upgrade to a home that meets your family’s evolving needs.

 

April 14, 2021

Homeownership Still Considered the American Dream

Since the birth of our nation, homeownership has always been considered a major piece of the American Dream.

This excerpt from a Forbes article says it well:

"The magic of America lay not only in its sense of opportunity, but also in the belief that life could in every way be shaped by the individual. People traveled here not just for religious freedom, but because in America anything seemed possible.”

A paper published a little over a year ago - just prior to the shelter-in-place orders issued -concurs:

“Homeownership is undeniably the cornerstone of the American Dream, and is inseparable from our national ethos that, through hard work, every American should have opportunities for prosperity and success. It is the stability and wealth creation that homeownership provides that represents the primary mechanism through which many American families are able to achieve upward socioeconomic mobility and greater opportunities for their children.”

If anything remains constant - even with all that this last year has brought on - it would be the American view of homeownership.

A survey of prospective homebuyers released by realtor.com last week reveals that becoming a homeowner is still the main reason this year’s first-time homebuyers want to purchase a home. When asked why they want to buy, three of the top four responses center on the financial benefits of owning a home. The top four reasons for buying are:

·         59% – “I want to be a homeowner”

·         33% – “I want to live in a space that I can invest in improving”

·         31% – “I need more space”

·         22% – “I want to build equity”

The survey also reports that 62% of millennials say a desire to be a homeowner is the main reason they’re buying a home. 

While reporting on the survey, George Ratiu, Senior Economist at realtor.com, said:

“Americans, even millennials who many thought would never buy, have a strong preference for homeownership for the same reasons many generations before them have — to invest in a place of their own and in their communities, and to build a solid financial foundation for themselves and their families.”

Odeta Kushi, Deputy Chief Economist for First American, says this about millennial homeownership:

“Millennials have delayed marriage and having children in favor of investing in education, pushing marriage and family formation to their early-to-mid thirties, compared with previous generations, who primarily made these lifestyle choices in their twenties…Delayed lifestyle choices delay the desire for homeownership.”

Kushi goes on to explain:

“As more millennials get married and form families, millennials remain poised to transform the housing market. In fact, the housing market is already experiencing the earliest gusts of the tailwind.”

As it always has been and very likely always will be, homeownership continues to be a major component in every generation’s pursuit of the American Dream.

Image by 460273 from Pixabay 

April 13, 2021

Buyer Competition is Good News for Sellers

This information is from the latest Realtors Confidence Index Survey by the National Association of Realtors (NAR).

If making a move is a serious consideration, Sellers are wise to partner with an experienced agent to take optimal opportunity of the market’s favor right now.

Posted in Market Updates
April 9, 2021

Tax Refund and Stimulus May Help Achieve Homeownership This Year

Plans to buy a home in 2021 may start with saving for a down payment, and a great way to jumpstart this savings is with the help of one’s tax refund.

The IRS estimates that Americans can expect an average refund of $2,925 when filing their taxes this year. The map below shows the average anticipated tax refund by state.

Thanks to programs from the Federal Housing Authority, Freddie Mac, and Fannie Mae, many first-time buyers can purchase a home with as little as 3% down. In addition, Veterans Affairs Loans allow many veterans to put 0% down.

It is actually a common myth that you need to put 20% down when you buy a home, but thankfully for most homebuyers, 20% down is not actually required. It’s important to work with an experienced real estate professional and lender to understand all available options.   

In addition, it has been reported that one third of households that received a stimulus check last year had primarily saved the money. Putting this sum toward a down payment or closing costs is an option that a trusted agent can advise toward.

While saving for a down payment can seem like a daunting task, there are likely options that first-time buyers especially may not be aware of. Wisely using tax refund and/or stimulus savings can be instrumental in moving toward homeownership this year.

Posted in Market Updates
April 6, 2021

2021 Real Estate Myth Buster

The current housing market is tricky to understand and even more challenging to navigate on one’s own.

Clarity that busts myths is worth a lot right now.

Having an experienced real estate professional as partner – who can accurately separate fact from fiction - is worth its weight in gold.

April 2, 2021

In the Community - April 2021

Spring is in the air and with local businesses opening again one-by-one, there is a lot to appreciate and revel in, right here close to home. Here is just some of the fun our neighborhood has to offer this month and beyond.

The Roundhouse Aquarium re-opens after one year of closure, on Saturday, April 3. With safety guidelines in place and a reservation system for visits 7 days a week, guests are welcomed back to explore marine exhibits and learn about fascinating sea life.

The Village Garden in Riviera Village is hosting a Garden Concert on Friday, April 9. Under the stars and a block from the sea, guests are entertained by a live strings concert by the Constellation Quartet. 

An Orphan Car Show at El Segundo’s Automotive Driving Museum is on Saturday, April 24 from 10am-2pm, to showcase rare and discontinued cars. Food trucks, contests and prizes are all part of the fun for this free event.

Terranea Resort on the PV Peninsula is offering a spring staycation opportunity with the third night free, for stays through May 26. Lots of luxurious amenities, fine dining, and outdoor adventures welcome the entire family for an unforgettable stay. 

At the South Coast Botanic Garden, April 1 begins an extraordinary new event. SOAR will feature a tropical butterflies exhibit in a specially-built pavilion next to a new garden area of amazing flowers and pollinators. Learn more about their exciting Spring and Fall offerings, and even volunteer opportunities.

The Roadium Drive-In Movie Theatre has announced its April screenings. For just $30/car, families and friends can enjoy a blockbuster title each Friday night:

  • Toy Story 2, Friday, April 2
  • Spiderman Into the Spiderverse, Friday, April 9
  • The Little Rascals, Friday, April 16
  • Sister Act, Friday, April 23
  • Liar Liar, Friday, April 30 

 

Posted in South Bay Events