Your Local Home Advisor

What's going on with this market?

July 26, 2018
All indications point to a turning point - we may be turning faster than it was thought, toward a more buyer-friendly market. That means homes won't be selling as fast, and they will either stay at the prices they are now or even go down!  

If you want to sell - now is the time!!

Here's an article from Tim and Julie Harris, written by Tim Ventura to Agents who listen to their podcast:


Is the market going to crash? On yesterday’s show we cited data from CNBC, and in today’s show we’re discussing “The U.S. Housing Market Looks Headed for Its Worst Slowdown in Years” – published today on Bloomberg.

“A slew of figures released over the past three days gives ample evidence of at least a cooling. Existing-home sales dropped in June for a third straight month. Purchases of new homes are at their slowest pace in eight months.

Inventory, which plunged for years, has begun to grow again as buyers move to the sidelines, sapping the fuel for surging home values. Prices for existing homes climbed 6.4 percent in May, the smallest year-over-year gain since early 2017, and have gained the least over three months since 2012, according to the Federal Housing Finance Agency.”

Suddenly, Redfin’s Shoshana Godwin told the couple, sellers were getting jumpy, even here in the hottest of markets. Homes that should have vanished in days were sitting on the market for weeks. There was a three-bedroom fixer-upper just north of the city going for $550,000, down from more than $600,000. They made the leap in early June and had closed by the end of the month, for list price.

The U.S. housing market — particularly in cutthroat areas like Seattle, Silicon Valley and Austin, Texas — appears to be headed for the broadest slowdown in years. Buyers are getting squeezed by rising mortgage rates and by prices climbing about twice as fast as incomes, and there’s only so far they can stretch.

“This could be the very beginning of a turning point,” said Robert Shiller, a Nobel Prize-winning economist who is famed for warning of the dot-com and housing bubbles, in an interview. He stressed that he isn’t ready to make that call yet.

There you have it: more confirmation the market is changing – will YOU be ready?

 

2018 Winter Olympics

February 13, 2018
I've been having trouble concentrating on work - why?  Because I want to see who is winning what in the PyeongChang 2018 Olympics.  It's because I have so much access - my phone, my iPad, my computer, my TV.  I am writing this on my computer and watching Speed Skating on my phone.  Republic of Korea just won!

But hey, all work and no play - or is it all play and no work won't bring home the bacon or the mortgage.  So I'm shutting off the Olympics until I get in front of my lunch - it's only 11:35 a.m.!

I love watching others stretch their bodies to the limits of pain and endurance - but my gym membership sits idle.  I guess I'll have to get out to the gym, soon.  Ha!
 

Market Up Market Down - What about housing?

February 13, 2018
I'm truly amazed at housing prices - even rental - in the west side of LA - or any part of Southern California.  If you are a first-time home buyer, it's mind boggling.  What should you do if you are just starting out?

My suggestion - since the housing market has shown (for the past 65+ years) that it will continue to rise overall, buy something that you can afford, now!  If you bought a home in 1990, it has probably doubled or more, in value.  I bought a house in 1974 for $35,000, in Fountain Valley.  What do you think it is worth today?  Yes, it went up in value!  I bought another house in 1992 in Cypress.  Do you think it stayed the same price?  NO!  We bought it for about $290K, then.  You can't even buy a shack for that price!  I know - I just sold a shack for $400K.  The house in Cypress is a 5 bedroom/3bath home.  It is on a 6000 sf lot.

BUT if you bought a house 15 years ago in West Los Angeles/Mar Vista for let's say $700K, it is probably worth more than $2mil now.  Wow!

So, who can afford these homes?  Well, maybe you can - eventually.  Here's a plan:

  1. Buy a condo, now, for $385K.  Perhaps it is small, 3/2, in Norwalk.  With mortgage rates still low, your payment could be $1832 with only $13,000 down.  How much are you paying in rent these days?  Remember, the down payment is really your savings account - which will certainly be worth more in the future than you can gain at the bank!  If you put $50K down (from your 401K), your payments would be $1650/month.  Yes, there is an HOA payment, too, but it's for insurance and grounds upkeep!  You'd have to spend some money on those things for a house.
  2. In 4 to 5 years, let's say the condo is now worth $550K.  You have paid it down only $27K, but appreciation is the name of the game and your home has gone up in value $165K plus the $27K.  That's $192K!  So put $150K of that down on another house, keep the condo for a rental, and you're on your way up!  at 20% down, you can buy another home for $750K!  Moving up!
  3. Yes you can!  It may not even take 4 to 5 years!
  4. The housing market moves in cycles - there are down years, but as we have just seen, the market goes back up.  Now, homes are worth a lot more than they were when the market was down.  You just have to decide to DO IT!
Need a one to one with me to go over this in your situation?  Give me a call!  Connie, at 714-553-9146!
 

It's Thanksgiving! What are you thankful for?

November 21, 2017
Many people on this earth have nothing - we in the US, even if we are poor, are much better off than many of whom are in third world countries or those who are refugees living in camps.
We have opportunity, here, and if we can pick ourselves up by the bootstraps and be enterprising, there is nothing that can stop us!
I'm thankful that I have a place to live and people around me that love me.
How about you?  What are you thankful for?
 

How About Those Dodgers!

October 24, 2017

I'm getting ready for the game - it starts today at 5:00 at Dodger Stadium, but I, like most of the rest of the world, will be watching it on FOX, channel 11 here is SoCal.  That is in an hour and 45 minutes from now, just long enough for me to start something and not finish it.  But I thought I'd at least leave my thoughts, here.

Behind the scenes of a Realtor??:

I get calls and solicitations every day - today was from a company who would send me referrals.  They say the leads are vetted already, so they have already talked to them.  I've done this before - got leads that don't pan out.  These leads are very expensive.  They were going to get me 8 in the next few months for $1850 PLUS 30% referral fee - that means 30% of the commission would go to them.  My normal referral fee is 25%, not 30%.  On an average price of $500K, commission would probably be between $12,500 and $15,000.  Let's round it down to $10,000 to make the numbers easy to understand.

This referral company would get $3,000 off the top for one referral that closed.  They say their numbers come in with an average of 40% of these leads converting to listings.  So that means out of 8 leads I'll typically actually get 3.2 listings - let's say 3.  So, at $10,000 per closing, that's 3 closings for $30,000 gross.  They take 30%.  That's $9,000 off the top.  PLUS $1850.  That means 3 listings cost me $10,850 out of my $30K gross.  That leaves me with $19K.  Then comes the insurance, the broker split, the transaction coordinator fee, the this and the that.  I may end up with $15K.  Is that worth it, I say to myself?  Well, it would be IF I really got 3 closings.  In my experience with these types of leads, they promise the world and don't deliver.  I'm out $1850, they are having a nice dinner somewhere and I'm stuck with their bill.  

Guess what I told them?  "No, thanks!"

 

Slowing down or speeding up? Hot Market?

October 20, 2017
It seems that we are in a hot market for sellers - BUT.

The BUT is that we are in a slower market - because there are not a lot of people who want to sell right now.  There could be a number of reasons for this - sellers, even thought they will most likely sell at a good price, don't want to buy at a high price.  The season isn't right - the kids are in school and the parents don't want to move.  It would be less expensive to add on to the present house than move.

Then there are people like me - I've lived in my home since 1992.  My kids grew up here.  It would be a HUGE task to pack up this house and even downsize.

My neighbor's home is paid off.  She lives alone in a 4 or 5 bedroom, two-story house.  She really doesn't need the size, but it is handy when people (grand kids, kids, friends) visit.  She just has to maintain the home and pay the insurance and property taxes.  She couldn't begin to find another home for that price!  Her taxes are Jarvis low, her upkeep is affordable.  Her insurance is not a big cost (monthly).  Moving would "up" her taxes a lot, even if she sold and paid for a new, smaller place all-cash.  There are a lot of Baby Boomers like her, too.  Lots of memories in that house!

How about you?  Are you thinking of buying or selling (or both?)??.  If so, you need a plan - when to sell, what to fix up, and where to move.  Call me - I'll advise you!  Sometimes staying put is really a good choice!
 

Yo Ho Prices

September 19, 2017
It depends on where you are looking - I was looking around Los Angeles, in the different parts of mid and west LA - I'm just amazed at how much these small homes are going for in price - not the $400K's - they are in the $600Ks to $800Ks - like they were made of gold.  Some, in fact most of these were in the bread and butter neighborhoods, not the up and coming executive neighborhoods - so who, on a bread and butter salary can afford to live in these homes?

My home, in OC, is a 5 bedroom/3 bath home in the city of Cypress, CA - and it is fairly large.  I think right now, the value of my home is around $780K.  But in LA, $780K will get you a so-so home in a crowded neighborhood, 3 bed 2 bath, maybe 1500 sf.  I guess the lesson is that location is the key and that people will pay the price to live in the neighborhood of their choice - choice meaning - near work, school, shopping, entertainment, and recreation.

If you want a sample of prices with maps, I can supply that for you!  Give me a shout out (in an email or text) - conniegohata@gmail.com or 714-553-9146 text.  Yes, you can also call me!
 

Home Prices - Still High!

August 14, 2017
My daughter is thinking about her future.  She is looking at the difference between renting and buying a home - because in the near future, she is planning to get married.  She is amazed that home prices are SOOO HIGH. 

I told her that RENTS are high, too so she may as well BUY.

What about you?  You have to start, somewhere, if you are going to buy.  Why not squeeze the trigger and buy something small in a city or area that is not as desirable as where you want to end up?  As prices go up, your equity will be higher, and then you could put more down on a house with the gain - but that would be later down the road.

Your possibilities are good - but doing nothing will just make everything more expensive for you in the future.  Stop the madness!  Buy a smaller place, and then later buy your dream home.  
 

Housing prices in SoCal are going UP!

March 31, 2017
Time to get on the bandwagon - time to buy.  Why?  well, if you keep your property for 5 years, it could appreciate by a lot of $$!!  Then you can use this money to put a small down on another house - move there, and rent out the first house.  Rents are going up, too!  You have a win-win situation, using leverage.  

I was watching Flip or Flop the other day - they buy for cash - NO leverage, because they are in, fix up, and sell.  No time for appreciation, except for what they build in to the fixer - they force the appreciation.  But let's say they buy a house for $375K, fix it up by spending $100K.  Their total spend is $475K.  They sell for $550K and they make $55K after paying $20K in closing costs (including commissions).  They put in $475K, made $55K, which is a total ROI of 11%.  That's better than the stock market, but they went through headaches (that no one watching TV sees) to get there.

You can buy a decent house at market value today for $500K.  You live there for 5 years and now your house is worth $625K.  The principal on your loan has gone down, so you have equity of about $200K.  You can some of your equity to buy another home - and let the renter pay your mortgages.  That's the nutshell version - call me if you want to go over some scenarios and see in real numbers how to do this!

 

Market Shifts

March 27, 2017
Here's the latest trend where I live in Cypress, CA.  Surrounding areas are below:



Garden Grove:



Anaheim:



Buena Park:



Los Alamitos:


Long Beach:




Seal Beach:


Cerritos


As you can tell and see, the market is still trending UP UP UP!!  Time to SELL!
 

What's going on with this market?

July 26, 2018
All indications point to a turning point - we may be turning faster than it was thought, toward a more buyer-friendly market. That means homes won't be selling as fast, and they will either stay at the prices they are now or even go down!  

If you want to sell - now is the time!!

Here's an article from Tim and Julie Harris, written by Tim Ventura to Agents who listen to their podcast:


Is the market going to crash? On yesterday’s show we cited data from CNBC, and in today’s show we’re discussing “The U.S. Housing Market Looks Headed for Its Worst Slowdown in Years” – published today on Bloomberg.

“A slew of figures released over the past three days gives ample evidence of at least a cooling. Existing-home sales dropped in June for a third straight month. Purchases of new homes are at their slowest pace in eight months.

Inventory, which plunged for years, has begun to grow again as buyers move to the sidelines, sapping the fuel for surging home values. Prices for existing homes climbed 6.4 percent in May, the smallest year-over-year gain since early 2017, and have gained the least over three months since 2012, according to the Federal Housing Finance Agency.”

Suddenly, Redfin’s Shoshana Godwin told the couple, sellers were getting jumpy, even here in the hottest of markets. Homes that should have vanished in days were sitting on the market for weeks. There was a three-bedroom fixer-upper just north of the city going for $550,000, down from more than $600,000. They made the leap in early June and had closed by the end of the month, for list price.

The U.S. housing market — particularly in cutthroat areas like Seattle, Silicon Valley and Austin, Texas — appears to be headed for the broadest slowdown in years. Buyers are getting squeezed by rising mortgage rates and by prices climbing about twice as fast as incomes, and there’s only so far they can stretch.

“This could be the very beginning of a turning point,” said Robert Shiller, a Nobel Prize-winning economist who is famed for warning of the dot-com and housing bubbles, in an interview. He stressed that he isn’t ready to make that call yet.

There you have it: more confirmation the market is changing – will YOU be ready?

 

2018 Winter Olympics

February 13, 2018
I've been having trouble concentrating on work - why?  Because I want to see who is winning what in the PyeongChang 2018 Olympics.  It's because I have so much access - my phone, my iPad, my computer, my TV.  I am writing this on my computer and watching Speed Skating on my phone.  Republic of Korea just won!

But hey, all work and no play - or is it all play and no work won't bring home the bacon or the mortgage.  So I'm shutting off the Olympics until I get in front of my lunch - it's only 11...
Continue reading...
 

Market Up Market Down - What about housing?

February 13, 2018
I'm truly amazed at housing prices - even rental - in the west side of LA - or any part of Southern California.  If you are a first-time home buyer, it's mind boggling.  What should you do if you are just starting out?

My suggestion - since the housing market has shown (for the past 65+ years) that it will continue to rise overall, buy something that you can afford, now!  If you bought a home in 1990, it has probably doubled or more, in value.  I bought a house in 1974 for $35,000, in Fountain...
Continue reading...
 

It's Thanksgiving! What are you thankful for?

November 21, 2017
Many people on this earth have nothing - we in the US, even if we are poor, are much better off than many of whom are in third world countries or those who are refugees living in camps.
We have opportunity, here, and if we can pick ourselves up by the bootstraps and be enterprising, there is nothing that can stop us!
I'm thankful that I have a place to live and people around me that love me.
How about you?  What are you thankful for?
Continue reading...
 

How About Those Dodgers!

October 24, 2017

I'm getting ready for the game - it starts today at 5:00 at Dodger Stadium, but I, like most of the rest of the world, will be watching it on FOX, channel 11 here is SoCal.  That is in an hour and 45 minutes from now, just long enough for me to start something and not finish it.  But I thought I'd at least leave my thoughts, here.

Behind the scenes of a Realtor??:

I get calls and solicitations every day - today was from a company who would send me referrals.  They say the leads are vetted alrea...
Continue reading...
 

Slowing down or speeding up? Hot Market?

October 20, 2017
It seems that we are in a hot market for sellers - BUT.

The BUT is that we are in a slower market - because there are not a lot of people who want to sell right now.  There could be a number of reasons for this - sellers, even thought they will most likely sell at a good price, don't want to buy at a high price.  The season isn't right - the kids are in school and the parents don't want to move.  It would be less expensive to add on to the present house than move.

Then there are people like me ...
Continue reading...
 

Yo Ho Prices

September 19, 2017
It depends on where you are looking - I was looking around Los Angeles, in the different parts of mid and west LA - I'm just amazed at how much these small homes are going for in price - not the $400K's - they are in the $600Ks to $800Ks - like they were made of gold.  Some, in fact most of these were in the bread and butter neighborhoods, not the up and coming executive neighborhoods - so who, on a bread and butter salary can afford to live in these homes?

My home, in OC, is a 5 bedroom/3 bat...
Continue reading...
 

Home Prices - Still High!

August 14, 2017
My daughter is thinking about her future.  She is looking at the difference between renting and buying a home - because in the near future, she is planning to get married.  She is amazed that home prices are SOOO HIGH. 

I told her that RENTS are high, too so she may as well BUY.

What about you?  You have to start, somewhere, if you are going to buy.  Why not squeeze the trigger and buy something small in a city or area that is not as desirable as where you want to end up?  As prices go up, your...
Continue reading...
 

Housing prices in SoCal are going UP!

March 31, 2017
Time to get on the bandwagon - time to buy.  Why?  well, if you keep your property for 5 years, it could appreciate by a lot of $$!!  Then you can use this money to put a small down on another house - move there, and rent out the first house.  Rents are going up, too!  You have a win-win situation, using leverage.  

I was watching Flip or Flop the other day - they buy for cash - NO leverage, because they are in, fix up, and sell.  No time for appreciation, except for what they build in to the ...
Continue reading...
 

Market Shifts

March 27, 2017
Here's the latest trend where I live in Cypress, CA.  Surrounding areas are below:



Garden Grove:



Anaheim:



Buena Park:



Los Alamitos:


Long Beach:




Seal Beach:


Cerritos


As you can tell and see, the market is still trending UP UP UP!!  Time to SELL!
Continue reading...
 

About Me


Connie Gohata Realtor® and RE Investor Short Sale and REO Specialist Regular Sales, Distressed Sales CA/BRE #01822665 Phone: 714-553-9146

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