Congratulations to my Buyers! The escrow is opened today on 16383 Ridge Field, Riverside CA 92503. We're so excited!

Congratulations to my Seller! The escrow of this unique mixed-use property is opened today, 06/29/2021. We are looking forward to a smooth transaction!

Congratulations to my client! The escrow of 38903 Primula Terrace, Newark, CA 94560 was closed on 05/04/2021. I referred the Buyer to the David Greene Team and huge thanks to Johnny Hoang who helped the transaction as Buyer's Agent & Eden's help in coordinating everything. A great way to start the month of May!

There has been a lot of discussion as to what will happen once the 2.3 million households currently in forbearance no longer have the protection of the program. Some assume there could potentially be millions of foreclosures ready to hit the market. However, there are four reasons that won’t happen.

1. Almost 50% Leave Forbearance Already Caught Up on Payments

According to the Mortgage Bankers Association (MBA), data through March 28 show that 48.9% of homeowners who have already left the program were current on their mortgage payments when they exited.

• 26.6% made their monthly payments during their forbearance period
• 14.7% brought past due payments current
• 7.6% paid off their loan in full

This doesn’t mean that the over two million still in the plan will exit exactly the same way. It does, however, give us some insight into the possibilities.

2. The Banks Don’t Want the Houses Back

Banks have learned lessons from the crash of 2008. Lending institutions don’t want the headaches of managing foreclosed properties. This time, they’re working with homeowners to help them stay in their homes.

As an example, about 50% of all mortgages are backed by the Federal Housing Finance Agency (FHFA). In 2008, the FHFA offered 208,000 homeowners some form of Home Retention Action, which are options offered to a borrower who has the financial ability to enter a workout option and wants to stay in their home. Home retention options include temporary forbearances, repayment plans, loan modifications, or partial loan deferrals. These helped delinquent borrowers stay in their homes. Over the past year, the FHFA has offered that same protection to over one million homeowners.

Today, almost all lending institutions are working with their borrowers. The report from the MBA reveals that of those homeowners who have left forbearance,

• 35.5% have worked out a repayment plan with their lender
• 26.5% were granted a loan deferral where a borrower does not have to pay the lender interest or principal on a loan for an agreed-to period of time
• 9% were given a loan modification

3. There Is No Political Will to Foreclose on These Households

The government also seems determined not to let individuals or families lose their homes. Bloomberg recently reported:

“Mortgage companies could face penalties if they don’t take steps to prevent a deluge of foreclosures that threatens to hit the housing market later this year, a U.S. regulator said. The Consumer Financial Protection Bureau (CFPB) warning is tied to forbearance relief that’s allowed millions of borrowers to delay their mortgage payments due to the pandemic…mortgage servicers should start reaching out to affected homeowners now to advise them on ways they can modify their loans.”

The CFPB is proposing a new set of guidelines to ensure people will be able to retain their homes. Here are the major points in the proposal:

• The proposed rule would provide a special pre-foreclosure review period that would generally prohibit servicers from starting foreclosure until after December 31, 2021.
• The proposed rule would permit servicers to offer certain streamlined loan modification options to borrowers with COVID-19-related hardships based on the evaluation of an incomplete application.
• The proposal rule wants temporary changes to certain required servicer communications to make sure borrowers receive key information about their options at the appropriate time.

A final decision is yet to be made, and some do question whether the CFPB has the power to delay foreclosures. The entire report can be found here: Protections for Borrowers Affected by the COVID-19 Emergency Under the Real Estate Settlement Procedures Act (RESPA), Regulation X.

4. If All Else Fails, Homeowners Will Sell Their Homes Before a Foreclosure

Homeowners have record levels of equity today. According to the latest CoreLogic Home Equity Report, the average equity of mortgaged homes is currently $204,000. In addition, 38% of homes do not have a mortgage, so the level of equity available to today’s homeowners is significant.

Just like the banks, homeowners learned a lesson from the housing crash too.

“In the same way that grandparents and great grandparents were shaped by the Great Depression, much of the public today remembers the 2006 mortgage meltdown and the foreclosures, unemployment, and bank failures it created. No one with any sense wants to repeat that experience…and it may explain why so much real estate equity remains mortgage-free.”

What does that mean to the forbearance situation? According to Black Knight:

“Just one in ten homeowners in forbearance has less than 10% equity in their home, typically the minimum necessary to be able to sell through traditional real estate channels to avoid foreclosure.”

Bottom Line

The reports of massive foreclosures about to come to the market are highly exaggerated. As Ivy Zelman, Chief Executive Officer of Zelman & Associates with roughly 30 years of experience covering housing and housing-related industries, recently proclaimed:

“The likelihood of us having a foreclosure crisis again is about zero percent.”

The information contained, and the opinions expressed, in this article are not intended to be construed as investment advice. Keeping Current Matters, Inc. does not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. Keeping Current Matters, Inc. will not be liable for any loss or damage caused by your reliance on the information or opinions contained herein.

 

Right now, the housing market is full of outstanding opportunities for both buyers and sellers. Whether you’re thinking of buying your first home, moving up to a bigger one, or selling so you can downsize this spring, there are perks today that are powering big moves for people across the country. Here are the top two to keep on the radar this season.

The Biggest Perk for Buyers: Low Mortgage Rates

Today’s most compelling buyer incentive is low mortgage interest rates. The 30-year fixed-rate is now averaging just over 3%. While that’s slightly higher than the record-lows from 2020 and earlier this year, it’s still way lower than historic norms, making purchasing a home an ongoing perk for hopeful buyers (See graph below):

This is a huge advantage for buyers and helps to make owning a home attainable for more households – and there’s good reason to strive for homeownership. The latest Homeowner Equity Report from CoreLogic shows how homeowners saw major gains in their net worth last year, all thanks to owning a home. Frank Martell, President and CEO of CoreLogic, explains:

“Positive factors like record-low interest rates and a booming housing market encouraged many families to enter homeownership. This growing bank of personal wealth that homeownership affords was noticed by many but in particular for first-time buyers who want a piece of the cake. As a result, we may see more of those currently renting start to enter the market in the near future.”

Low mortgage rates are a plus for buyers right now, but experts forecast we’ll see them continue to rise as the year goes on. If you’re ready to purchase a home, it’s wise to get started on the process soon so you can secure today’s comparatively low rate.

The Biggest Perk for Sellers: Low Inventory

Today, there are simply not enough houses on the market for the number of buyers looking to purchase them, and it’s creating a serious sellers’ market. According to Danielle Hale, Chief Economist at realtor.com:

“Total active inventory continues to decline, dropping 50 percent. With buyers active in the market and sellers still slow to put homes up for sale, homes are selling quickly and the total number actively available for sale at any point in time continues to decline.” (See map below):

The lack of houses for sale continues to challenge the market, and with low mortgage rates fueling buyer demand, homes are hard for buyers to find today. According to the latest Realtors Confidence Index Survey by the National Association of Realtors (NAR), the average house is now receiving 4.1 offers and is on the market for only 20 days.

Buyers are clearly eager to purchase, and because of the shortage of inventory available, they’re often entering bidding wars. This is one of the factors keeping home prices strong and giving sellers leverage in the negotiation process.

Homeowners who are in a position to sell shouldn’t wait to make their move. There’s a light at the end of the tunnel for today’s inventory shortage, so listing this spring will get your house on the market when conditions are most favorable. With low inventory and high buyer demand, homeowners can potentially earn a greater profit on their houses and sell them quickly in the fast-paced spring market.

Bottom Line

Whether you’re thinking about buying or selling a home, there are major perks available in today’s housing market. Let’s connect today to discuss how these favorable conditions play to your advantage in our local area.

The information contained, and the opinions expressed, in this article are not intended to be construed as investment advice. Keeping Current Matters, Inc. does not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. Keeping Current Matters, Inc. will not be liable for any loss or damage caused by your reliance on the information or opinions contained herein.

The commercial space of this shopkeeper flat has been virtually staged! It is truly great! You could use it as your own spacious living room, or your own private theater. It's about 650 Sq Ft. It could be your private gym, or lease it to a personal trainer. It also could be your own office space or lease it out to another business. Previously, this space was rented out as a photography studio. Lots of possibilities! Just be sure to check with City of Alhambra for what the space could be used for.

The 2nd floor of the shopkeeper flat has been fully staged as of 03/16/2021!

Click here to schedule your in-person tour with the listing agent Huan today

Click here to see property details via MLS

410 W Main St, Unit 231, Alhambra, CA 91801

3 floors: 1 commercial space + 1 bathroom on 1st floor plus 2 bedrooms + 2 full bathrooms on 2nd & 3rd floor

2,080 Sq Ft, built in 2013, End Unit with no one above nor below, no one left nor right (the elevator space)

List Price: $850,000

HOA: $499.64 per month

See photos of the newly staged 2nd floor space below:

Congratulations to the Seller & Buyers!

Mr. Peacock came to celebrate with us when the clients got the keys to the house^^

The escrow of 3664 Grayburn Road, Pasadena, CA 91107 was closed on 03/01/2021.

410 W Main St, Unit 231, Alhambra, CA 91801

Listed on the market on 02/19/2021

Listing Agents: Huan Gu & William Tong of Golden Land Investments & Financial, Inc.

2 bedrooms + 2 full bathrooms plus 1 commercial space on the 1st floor + a half bathroom

Total 3 floors/levels

2,080 Sq Ft

HOA: $499.64 per month

Price: $850,000

This property is located inside the Main Street Collection in Alhambra. The development by City Ventures features 86 residential units, including condos, shopkeeper flats, and 8,200 square feet of commercial space which includes Chase Bank, Sweethoney Dessert and Bobacraft Café. The energy-saving design significantly reduces the utility bills and a substantial portion of the power required to operate each home is generated onsite through solar panels. Unit 231 has 3 floors. It is one of the six units at this complex that include a commercial space. The first floor is an approximately 650 square foot commercial space with high ceilings, a bathroom, and its own entrance. It could be used as your own office/studio/retail space or lease it out separately. The second floor includes one bedroom with two spacious closets, a full bathroom, a kitchen with stone countertops and stainless steel appliances, a dining room with a balcony, and a washer and dryer space. A spacious master suite with a family room takes up the third floor, with an abundance of natural light. Unit 231 comes with a 2-car enclosed garage with a roller garage door and a storage space. There is also an additional permitted parking space. The common area features a beautiful courtyard and outdoor BBQ area. The complex is located walking distance to banks, cafés, bakeries, restaurants, Alhambra High School, and Alhambra City Hall. Don't miss the amazing opportunity to own this mixed use shopkeeper flat!

Click here to see details via MLS

Proposition 19 – The Home Protection for Seniors, Severely Disabled, Families, and Victims of Wildfire or Natural Disasters Act

I've been asking by clients about Proposition 19, which was passed by California voters on Nov 3rd, 2020. It became effective on Dec 16th, 2020. The tax transfer benefits will go into effect on April 1, 2021. The intergenerational family transfer rules will become operative and apply to transactions on Feb 16th, 2021.

Please click here on California State Board of Equalization's Website to see all the details.