December 2022
My thoughts about the current market
I have gone through many market swings during my real estate career and each one is a little different. I think people are really trying to compare this to 2008-2009 and I say it's entirely different than that. Equity is everywhere. There have been no signs of foreclosure. It's a very strong market. Prices are still climbing regardless of inventory, days on market, etc.
What happened over the last couple of years was insane and clearly not sustainable, and there was going to be a slowdown regardless. The market is not going to die. Homeowners are in a great financial position. One of the things that makes this housing market stand out is the fact that even right now, there's two months of supply on the market. In the worst month of the bubble before the great recession, we had four months of supply on the market.
Ultimately this is going to be a very supply constrained market in the short run and that will keep it stable even as we adjust to these higher interest rates. The Federal reserve is definitely intending to slow down the housing market. For a little context, even though home sales are expected to be slower than last year, they will still be the second highest homes sale since 2006. Home sales, though slower than last year, will still be strong historically.
Homebuyers and sellers' misconceptions about the shifting market
A new Zillow survey finds nearly half (46%) of real estate agents say the biggest misconception among aspiring home buyers is that home prices will significantly fall, while more than a third of agents (35%) say prospective buyers mistakenly think they should wait for high mortgage rates to come down.
Buyers may think it's better to wait out the market, but in reality, experts say there is more opportunity in this market than in the past five years if buyers approach real estate as a long-term investment. If a buyer can purchase today, they have bargaining power, more options, and more time to find the right home, instead of being rushed into a purchase they might regret.
Fannie Mae, Freddie Mac to increase 2023 conforming loan limits
Fannie Mae and Freddie Mac will raise the limits of government-backed loans to a record level for 2023, with the maximum loan limit hitting $1,089,300 for high-cost areas such as in California, the Federal Housing Finance Agency said.
"The higher limits will help make homeownership more accessible to Californians across the state and provide homebuyers with more financing opportunities," said C.A.R. President Jennifer Branchini, a Bay Area REALTOR®. This year in California, nearly one out of every four homes sold between $1.25 million and $2 million were purchased by first time homebuyers. purchased by first-time homebuyers.
NAR offers White House solutions to fix inventory crisis
In an effort to keep housing inventory a top legislative priority following the midterm elections, National Association of REALTORS® CEO Bob Goldberg met with White House officials and real estate industry leaders in November to discuss possible solutions to the supply crisis, which is battering affordability and sidelining more buyers.
NAR has long warned that decades of underinvestment and underbuilding have created a dire housing shortage in America that will require a long-term commitment to overcome. At the meeting, officials brainstormed several possible measures to promote greater housing opportunity, including reducing the Federal Housing Administration's mortgage interest premium, lowering Fannie Mae and Freddie Mac's guarantee fees, expanding the Section 8 rental voucher program, and supporting new fair housing initiatives.
Following the meeting, NAR 2023 President Kenny Parcell sent a letter to the White House outlining a range of potential inventory solutions, such as broader down payment assistance on the local, state and federal levels and access to special purpose credit programs to help better meet the credit needs of underserved borrowers. Reducing fees for first-time home buyers, expanding housing voucher programs, and providing incentives for more participation from housing providers would provide direct and immediate support for renters and aspiring homeowners.
Simply soccer
Since the first World Cup in 1930, eight nations have won. Brazil is the only nation to have competed in all 21 World Cups (no competitions were in 1942 and 1946) and has won five. The best U.S. showing, third place in 1930 in Uruguay. Pele has won the most times, three. The Netherlands is the best team to have never won with five top four finishes.
Oct/Nov market statistics for Santa Cruz, Monterey & the Bay Area
Comments: As expected from last month, Santa Cruz County new listings down 11.4% from Oct; Monterey County down 9.0% and Santa Clara down 27.4%. Sales in Santa Cruz down 23.8%, Monterey County down 31.9% and Santa Clara down 23.5% overall. Once again median prices were up in Santa Cruz and Santa Clara and dropped in Monterey. In addition, the list to sales price ratio also increased slightly in Santa Cruz and Santa Clara with Monterey down just a bit. Days on market showed a 30% uptick in Santa Cruz and a 20% in Monterey County with Santa Clara declining just a bit. (Display of MLS data is deemed reliable but is not guaranteed accurate by the MLS)
