Talking Real Estate with Hope - September 2022 Newsletter

 Whether you own a home or are 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 month's newsletter covers our ever-changing real estate market.

 

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 a 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.

 

Hope Leitner, CRS,

CalDRE #01874321

Hope Opens Doors

HOMEBUYERS, HOME SELLERS, MARKET CONDITIONS, MORTGAGE INTEREST RATES, FINANCE, TRENDS

 

Homebuyers Catch a Break

 

If you’ve been discouraged about buying a home because the housing market is too competitive, you’ll like the latest 2022 forecast update from Realtor.com.

 

Inflation, higher home prices and higher mortgage rates are impacting affordability, which caused many homebuyers to move to the sidelines. In April 2022, existing home sales dropped 2.4% from March, and 5.9% year-over-year, partly due to mortgage interest rates crossing 5% for the first time in decades. Meanwhile, home prices in April rose 14.8%.

Home sellers are responding by putting more homes on the market in an effort to cash in before prices possibly begin to fall. Active listings, or homes listed for sale, are anticipated to grow 15% year-over-year in the second half of 2022. Home builders are stepping up production too, by about 5%, so buyers will have more inventory to choose from. Home sellers will have to become more competitive, which will invite wait-and-see homebuyers back into the market. Housing sales volume for 2022 should be the second-highest in 15 years, even though a decline of 6.7% from 2021 is anticipated.

 

With unemployment rate near 50-year lows, wage growth should rise 3.8%, and flexibility to work remotely, even out of state, will continue. First quarter data showed that 40.5% of Realtor.com® home shoppers viewed listings located outside of their current state, up from 33.4% in 2020.

 

That said, affordability will remain an issue for many homebuyers as home sales prices rise 6.6% and mortgage rates reach 5.5% by the end of the year.

 

 

TRENDS, HOMEBUYERS, HOMEOWNERS

 

How NIMBYism Stunts Housing Growth

 

 

In addition to supply chain interruptions, high material costs and labor shortages, badly needed new home construction is also being curtailed by NIMBYism, says the National Association of Home Builders. “Not in my backyard” homeowners may not realize that by preventing development in their towns and neighborhoods that they’re making homeownership much more expensive for themselves as well as others.

 

The root cause of nimbyism is that homeowners are afraid that their home values will fall if they allow less expensive homes to be built in their neighborhoods. While this is common in master-planned developments that require new homes to be built using only construction and materials approved by the homeowner’s association, many communities have put their land-use regulations and restrictions in place against rental properties or smaller multi-family homes being built next to single-family homes.

 

Detached single-family home zoning means that builders can only build a single-family home on a given lot, which prevents more affordable multi-family homes such as duplexes, townhomes and apartments from being built. The net result is fewer available homes to rent or buy and skyrocketing prices. As land values increase, these limitations prevent workforce personnel such as fire fighters, police, paramedics, teachers and others from living in the communities they serve.

 

Housing regulations and restrictions are set by individual cities and counties and some states, including Oregon and Washington, rewrote statutes to make affordable housing a protected class for fair housing.