Posts by pwsadmin

A LinkedIn article states that approximately 90% of millionaires attribute their wealth to their real estate holdings. As we know, buying and owning your own home is one of the biggest investments most people make. Handing down a real estate related investment portfolio to your children is a great way to create generational wealth. And…

Coming Soon… a MANDATORY Buyer Representation and Broker Compensation Agreement (aka BRBC) between a home buyer and their real estate agent… very similar to the Residential Listing Agreement (RLA) for home sellers. We have been using this (BRBC) for a while and soon (June or July of 2024), it will become mandatory. I’ve been a…

Pent up demand and lower interest rates will be the driving forces for the real estate market this Spring.For example, in November of 2023 the 30-year mortgage rate was 7.76%. Historically not a high number, but a whole lot higher than the 3.09% of November 2021. And today, at the writing of this newsletter for…

Every now and then I take a look to see how home prices fared on a year over year basis. Today I will be using the time frames from November 29 th of 2022 to January 29 th of 2023 (Sample A) vs November 29 th 2023 to January 29 th 2024 (sample B)… a…

As you may have heard, interest rates have come down quite a bit. According to Freddiemac.com, mortgage rates have come down about 1.125% since October 26, 2023 even though the Federal Reserve Board hasn’t changed their rates at all. This is mainly because the entities that lend the money (mortgage bankers) were poised for more…

In a recent study I found that the number of homes that sold (sales volume) decreased from the two-month period of September 27 th to November 27 th of 2022 vs the two-month period of September 27 to November 27 th 2023. In a sample area that was taken from the Greater Antelope Valley Association…

Here’s a new twist on an old product… Assumable loans. FHA (Federal Housing Authority) and VA (Veterans Administration) backed mortgages can be assumed as long as the borrower qualifies. An estimated 14 million mortgages (64 % of mortgages) were refinanced during a seven-quarter period (the COVID quarters) and this doesn’t count all of the mortgages…

A 2-1 buy down helps home buyers save money on their mortgage payments for the first two years of their note/mortgage. Here is an example: We’ll say the prevailing interest rate is 7.25%. This (7.25%) is the interest rate that the home-buyer would have to qualify for. So, with a 2-1 buy down, the starting…

This question comes up often. Sometimes, it feels like we’re going for a ride or… are we just along for the ride. Because, we don’t have any control over what the federal reserve is doing with interest rates and ‘the power’s that be’ are trying to get inflation to 2%…. and we Might be there!…

Home Sales vs Home Prices: As mentioned in an earlier newsletter, the elevated mortgage rates and limited housing supply are suppressing home sales in California (and across the nation). Let’s not confuse the number of home sales with the price/value of a home. The number of homes that have sold is down year over year…