Talking Real Estate with Hope

Whether you own a home or looking to buy or sell one, here are the latest Good to Know articles for when you’re ready to take the next step in finding your Forever Home. This edition of the eNewsletter also contains some helpful advice for our new residents in San Diego - The mosquitos. Mosquito populations in San Diego have been on the rise due to increased temperatures and humidity these past few years. 

The Real Estate Market is changing quite a lot this summer. You might have questions regarding the effects of our current economics, even if you're just curious, give me call. I love hearing from everyone on this email list. I am here to support you whatever your real estate needs might be.  

PONDER THIS - “Live in the sunshine, swim in the sea, drink in the wild air.” ~ Ralph Waldo Emerson. If you haven’t done any of these things yet this summer, do them now! Also, be grateful that here in San Diego summer will really last until about Thanksgiving. 

As always, I am here for you, your family, and friends.

MARKET CONDITIONS, HOMEBUYERS, HOME SELLERS
About Institutional Homebuyers

One reason there’s a shortage of available homes to buy across the U.S. is that corporate investors are snapping up single-family homes to use as rentals or to flip back onto the market after making improvements. Institutional homebuyers (companies, corporations, LLCs) have always been around but a new report by the National Association of REALTORS (NAR) found their market share rose 84% in 2021. Based on deed records, institutional homebuyers accounted for 15% of residential purchases in 2021.

The record low interest rates of 2020 and 2021 and rising inflation – 8.5% in March 2022 – are ideal incentives for institutional homebuyers to turn to residential real estate for asset acquisition as a hedge against inflation. They buy properties to turn into rentals where rents can be raised annually. Investors look for dense populations with fast growth, fast rent growth and home appreciation, fast home sales volume, and low vacancy rates. NAR also found they look for areas with higher incomes and education, more young people and minorities, and a high density of renters.

In those areas where institutional investors are more than 30% of market share, the number of household formations grew 11%, average rents increased more than 30%, home prices rose 40% or more, and home sales rose 70%, all over the last decade.

The top five states with the largest market share of institutional homebuyers were:

Texas (28%),
Georgia (19%)
Oklahoma(18%)
Alabama (18%)
Mississippi (17%)

Closely followed by:
Florida (16%)
Missouri (16%)
North Carolina (16%)
Ohio (16%)
Utah (16%)

California is not at the top of the list but, we are not exempt from this trend. 

HOME IMPROVEMENT, HOMEOWNER, HOME SELLER
Don’t Let Them Bug You

August is typically the hottest month of the year making it an ideal time to be outside for fresh air and sunshine, but mosquitoes and other flying biting stinging insects can take the fun out of it. You want to enjoy your outdoor spaces, so what can you do? Here are some fun facts and tips about these pests.

In studying how wind affects mosquitoes, researchers found that mosquitoes are attracted to carbon dioxide which humans and pets emit. When you turn on a fan to blow on you, it disperses the concentration of carbon monoxide, which is why fans are such a good deterrent for mosquitoes.

Male mosquitoes like nectar, not humans, but the females seek blood to nourish their eggs, using receptors and vision for cues such as body heat, perspiration and skin odor to find a potential host according to Off.com.

What doesn’t work to repel mosquitoes, says Science.org are citronella candles, bracelets containing herbal extracts and sonic mosquito repellant which claim to use high-frequency sound to drive them away. Instead, try spray repellents with DEET and products with lemon eucalyptus oil. 
 
HOMEBUYERS, HOME SELLERS, HOME IMPROVEMENT, LUXURY
Surprising Features Homebuyers Want in 2022

Virtual interior designer/home stager Stuccco.com compiled a wish list from numerous online sources that experts say homebuyers want in 2022. Many popular features aren’t what home sellers may think. Before you upgrade your home to sell, consider these top five homebuyer preferences:
 
Laundry rooms 
Exterior lighting 
Ceiling fans 
Patios  
Walk-in pantries 

Laundry rooms. Homebuyers don’t want to go out to the hot garage to do laundry, so make room somewhere on the first floor. Include a built-in table for sorting, room for a steamer and drip-dry area.

Well-lit outdoor living spaces. Homebuyers want exterior lighting (87%), patio (82%) and a front porch (81%), a rear porch (75%) or a deck (75%). Landscape lighting adds a luxurious glow to outdoor spaces as well as an extra element of security.

Ceiling fans. With the sudden rise in energy prices, it’s not surprising that homebuyers want lighting fixtures to do double duty as an air conditioning aid, especially when cooling or heating a larger home.

Walk-in pantries and greater kitchen functionality. Homebuyers want to be able to stockpile food and paper goods. They want to open the door to the pantry and see at a glance what’s on hand. Homebuyers also prefer two-sided kitchen sinks over farmhouse sinks (81%.)  Plus, they prefer kitchens open to the dining room for less formal dining, and more friendly environment for the cook to mix with party guests. (85%.)  

Homebuyer preferences are changing home design. The National Association of Home Builders reports that new home buyers want bigger homes which now average 2,524 square feet.