Median prices up 15.5%

Median prices up 15.5% over last year
As I have reported earlier, despite being in an extreme, pandemic environment, the housing market is showing growing strength as we near the end of 2020. The median price for the U.S. market in October came in at $313,000, for the 104th straight month of year-over-year price gains. We have not seen this growth pace since 2006. Existing home sales rose for the fifth consecutive month to an annual rate of 6.85 million units — and that is up 4.3% from September, and sales were 26.6% higher than we saw a year ago.

It is not just the annual rate that rose, as monthly sales came in at $573,000 – and that is the highest monthly figure since the market “snapped back” in July following the initial COVID-19 shutdown. These significant increases in prices are not just because mortgage rates are low — though that certainly is a factor — but also the more substantial reason is that there is far more demand than there is supply, thus driving up prices everywhere.

Nationally, single-family sales were up by just a little more — 26.7% year over year, but the month-over-month pace of single-family sales was lower than condos and came in 4.1% higher than in September. With median sales prices continuing their upward climb in Southern California, on the Westside, we are seeing moderate sales price increases compared to 2019. But volumes remain are 10% behind from last year…this number could change. All in all, as we head to 2021, our market is well positioned to have a great year, especially if we get the vaccine and mortgage rates remain stay low.

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What a vaccine could mean for our housing market
An effective vaccine could mean a spike in interest rates and return to some pricy metro markets according to leading economists and real estate experts.

With three firms already announcing results of a Covid-19 vaccine that is 90% to 94.5% effective, this has spurred tremendous optimism across the real estate landscape. While the actual timing of the vaccines availability depends on a myriad different logistics, the news gives hope for a future not dominated by COVID-19, especially at a time when numbers are spiking in states and cities — especially in Los Angeles County where new restrictions are being issued.

The news of an effective vaccine — which in turn means a potential light at the end of the COVID-19 tunnel — would obviously be good news for the economy overall. More importantly, there will be changes in how the real estate market will emerge from this pandemic and how marketing of real estate will continue to change.

For one thing, the pandemic has already affected migration out of crowded cities to the suburbs and even rural areas. Second homes are now becoming ‘first’ homes…and remote working has taken root in every sector of our economy. One real estate expert speculated that office buildings will be going through their own challenges when life begins to return to normal. The big question is: What is going to happen to all of that commercial space? Will remote workers want to come back?

So…life as we knew it before the pandemic will be different after the pandemic for many, and housing will see changes in every market…cities and suburbs will change…and our future is still to be written. What will the ’new normal’ bring us?
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Covid brings us a new appreciation of the outdoors
The landscaping business is booming these days as stay-at-home dwellers are concentrating on beautifying their environment. As Covid stretched into Fall and now Winter, homeowners are creating expansive, landscaped outdoor spaces. As one landscape architect described it…” clients are focusing more on their gardens and how they use their exterior spaces, and they just want a better and more functional experience altogether.”

Depending on one’s situation, homeowners are now seriously considering swimming pools and large outdoor kitchens, something that was not on their pre-pandemic wish list. They are re-imagining their entire outdoor environment, creating designed gardens, fountain areas, and combining all of their favorite elements.

Properties with gardens and outdoor gathering spaces are of particular interest to buyers. According to an October analysis by Realtor.com, advertising single-family homes in the 100 largest metro areas displaying outdoor-related keywords such as garden, courtyard, deck, greenhouse and backyard sold 27%, or 12 days, faster than similar homes lacking those keywords

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FHFA Increases Conforming Loan Limits for 2021
Due to rising home prices, the Federal Housing Finance Agency announced last week that it would raise loan limits for mortgages backed by Fannie Mae and Freddie Mac.

In most of the country, the 2021 maximum conforming loan limit for single-family properties will be $548,250. That marks a 7.4% increase from last year’s limit of $510,400. The FHFA’s loan limits define the maximum amount that Fannie and Freddie can finance for a one-unit single-family home.

In more expensive markets, such as California and New York, the new limit will be $822,375, up from $765,000 in 2000. With home prices setting records in many U.S. markets, the loan limits will align with home price growth according to the NAR. U.S. home prices have continued to rise during the COVID-19 pandemic.

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Foundation problems? How to avoid water damage
This song was popular because the lyrics were not true…” It never rains in Southern California..” Of course, it rains here even though we have not seen much of it lately. While we live in a semi-arid desert, rain can damage your home and create problems if you don’t keep an eye on your foundation.

Whether you live in the ‘flatlands’ or on a hillside or in a canyon, water can cause significant damage to our homes. On the flatlands, water can gather on your roof or in your yard, which if not monitored, can result in costly repairs to your roof and interior. On the hillsides or in the canyons, homeowners need to be vigilant from storm run-off that come cascading down the ground above you, and even intrude on your home from adjacent properties. The tragedy occurring in Montecito mudslides two years ago where 23 lives were lost, and 130 homes destroyed is a terrible reminder of what could happen.
The primary recommendations are to ensure that water is diverted from the exterior of your foundation….any internal water sources that might cause flooding could be controlled with interior pumps… and make sure you carefully examine

the perimeter of your home before and after any rain storm. I also suggest the installation of a gutter protection program to hopefully avoid having leaves in your gutters thus prohibiting the runoff of water from your roof and causing leaks in the house. You should also have your roof checked on a bi annual basis, especially with the amount of sun we have beating down on our roofs. And, yes, it does rain in Southern California.

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Speaking of Low Inventory
One of the conversations we have every year at this time is “are the holidays a good time to buy or sell a house?” The short answer is a responding YES!

As aforementioned, we have a shortage of inventory, and one of the results of that is multiple offers, however, when some buyers are “taking the holiday’s off”, there is less competition for that home you are longing to own, and also with people both decorating their homes for the holidays and also staying home, you can see how they live in the house, and get ideas as to how you can live there. Also, with the coming of a vaccine, the market will most likely open and the interest rates will increase some.

As for selling your home now, the holiday decorations you have installed create a warm homey feeling, thus enabling buyers to envision how they will live in the house. Also, with the buying traffic a little less how, you will be attracting “real buyers”, not just people looking for something to do.
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Did you know?
One of the things I love about working with Coldwell Banker, is its need and philosophy of giving back.
I am very proud to announce that we are affiliated with St. Jude Hospital who continues to lead the way in treating and defeats childhood cancer and other life-threatening diseases. I have made arrangements to have a donation made to St Jude for all of my transactions. Clients can also donation to the charity as well. It warms my heart to think we are all helping children get healthy and stay that way!

Also, there is our Clients for Life Program. Every month we have a mailing and drawing for our clients to win various prices. This past month, we had two winners from my office of a gift certificate from Amazon. I invite you to participate every month. The next mailing will be going out around the middle of the month.

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One more thing
As I have mentioned from time to time, there is a proposal for the construction of the Berggruen Institute on the last 447 undeveloped acres om the area adjacent to Mountaingate. There is a lot of community opposition to this project, and have a law suit has been filed against the project by the Master Association of Mountaingate (MOSA). They won the first round in the court, but the legal battles are just beginning. There is a virtual public hearing on the proposed EIR study to be done between the dates of Nov 20 and the 21st of December scheduled for the 8th of December at 5:30 pm.  I invite you to participate in this hearing by logging on http://www.joinwebinar.com/ and entering webinar ID 772-772-955 and your email address.

The outcome of this project will have major implications for our communities.

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Holiday Wishes
It will be vastly different celebrating the holidays this year, be it Chanukah, Christmas or Kwanzaa but even with all of the losses we have sustained this year, I for one am grateful for my family, friends, colleagues, and clients and the support and love we share. For Thanksgiving with Covid prohibiting my family and I getting together for the holiday, we had a Zoom call with participants in Vancouver, BC, Montreal, Alaska, Orange County in California, and myself in my house in Bel Air Crest. It was great fun, we even played a game and decided to do this every week or two and have plans for our next holiday celebration as well.

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                                                                Stay Safe and Stay Home!                                                                     

HAPPY HOLIDAYS!!!