Lows, Highs, and Whys

Homes are flying off the shelves this spring, as demand rises and supply continues to drop. Home sales jumped nearly 9 percent in March compared with March 2016, even as the number of homes for sale plunged 13 percent, according to Redfin, a national real estate firm.

A sizzling spring for market sales is keeping optimism high even though supply continues to hit disturbing lows leaving sellers in the hot seat facing frustrated buyers. According to Redfin’s chief economist, Nela Richardson, “The combination of low inventory, high prices and strong competition will continually challenge first-time buyers this year and they are the cornerstone of the housing market,” as reported by CNBC. In a cyclical effect, shockingly low inventory levels are pushing up home prices so much that even rising incomes are unable to brace the climb, forcing affordability down. Housingwire.com explains, “Rising home prices combined with higher interest rates caused affordability to decrease in March.” And, although Freddie Mac’s chief economist, Sean Becketti, asserts, “For-sale housing inventory, especially starter homes, is currently at its lowest level in over ten years,” CNBC affirms that, “Record high prices in some local markets are not thwarting hungry buyers, as they rush to take advantage of the lowest mortgage rates of the year.”

Interestingly, Freddie Mac offers four key reasons for the ongoing squeeze on supply levels and, ironically, the first of these is fear itself as Housingwire.com explains, "Homeowners are hesitant to put their home on the market as they are unsure if they will be able to find a new home in their budget once they sell theirs." Also making the list of top logic are issues like rising mortgage rates as homeowners stick to their current lower rates, home prices sitting at values just short of what is owed, and a slip in housing starts, nearly 7 percent in March, which experts are dubbing "lackluster growth" that "won't be enough to meet the rising demand," recaps real estate reporter, Kelsey Ramirez. All highs and lows considered, market meanderers are left to bend around the whys in an effort to find some balance on the homeownership ride. 

Source - California Association of Realtors March 2017

Courtesy of JMJ Financial Group

If you are ready to buy, sell, or refinance, we are here to help with your next mortgage. 

Todd Burns - NMLS 254981
JMJ Financial Group
949-547-3557
WEBSITE

New and Existing

Given the scant listings, another competitive spring buying season is likely. Last month, there was a smaller supply of homes for sale than a year earlier in every Southern California county, data from the California Association of Realtors show. Real estate agents say the shortage has people crowding open houses. As sunlit days get longer going into early spring, consumer confidence is still coming out of the shadows as the dull numbers in existing home sales for February don’t have experts fried. In fact, according to Housingwire.com, “Experts predict the combination of pent-up housing demand and historically high consumer confidence will increase existing home sales in the months ahead.” Locally, in sunny Southern California, a hike in home prices resulted in what the Los Angeles Times is hailing, “the largest increase in more than a year, as buyers rushed to outbid one another for a meager selection of homes for sale.” Yet, although the umbrella of high home prices is upon us at home, the housing forecast is currently clear of showers as, with a vibrant outlook, experts like Svenja Gudell, chief economist for Zillow, maintains, “It’s important not to read too deeply into the one-month dip in existing home sales in February; the housing market is still running quite hot, and the next few months look to be as competitive and fast-moving as ever.”

On a broader spectrum, the Wall Street Journal sheds light on the glaring issue of new home sales by stating, "In a sign that builders are responding to demand, the number of homes for sale at the end of February rose to the highest level since July 2009." Nationally, defying all gloomy expectations, "U.S. new home sales increased sharply for the second consecutive month in February, an indication that growing demand and a pickup in construction activity could propel a strong spring selling season for this segment of the market," clarifies real estate reporter, Laura Kusisto. And, as temperatures rise, "Economists expect new-home sales to continue to increase this year as builders step up construction of single-family homes and more first-time buyers enter the starter-home market," as the Wall Street Journal connects the rosy housing outlook to such conditions as a "strengthening economy and unseasonably warm weather". Even though the hazy days of winter hold on tight, the near future for housing is certainly looking bright. Courtesy of JMJ Financial Group

If you are ready to buy, sell, or refinance, we are here to help with your next mortgage. 

Todd Burns - NMLS 254981
JMJ Financial Group
949-547-3557
WEBSITE

The Balancing Act

Rising home values are more important because the value of houses far exceeds the value of stocks held by individuals. Even so, the homeownership rate hovers near a five-decade low and well below its pre-crisis peak. This explains why the so-called wealth effect isn’t having as much of an impact on overall consumer spending and economic growth as it used to.

The peaking consumer confidence in housing recently reported remains in spite of today’s news doused in rumors of rising mortgage rates. In reality, although Americans are richer than ever, they’re not quite feeling that way while, according to The Wall Street Journal, in 2016, “As of the third quarter, American Households had roughly $105 trillion in assets and $15 trillion of debt. And as home values kept rising and stock prices surged following the election, it likely only increased.” Some uncertainties in the economy caused mortgage rates to fall at the beginning of this month and, subsequently, Sean Becketti, Freddie Mac chief economist, was quoted as saying, “With the housing market on the verge of the spring homebuying season, this is good news in an environment where historically low mortgage rates will help offset the pace of house price growth and lack of for-sale inventory in many markets,” as reported by The Washington Post. Presently though, directly following the fall, “Mortgage rates followed the 10-year Treasury yield for the first time in 2017 with a substantial increase from last week,” reports Housingwire.com.

Even with this flux and an air of suspicion that the Federal Reserve is gearing up for a March rate hike, experts are able to find the bright side. With this, Housingwire.com offers an analysis of the latest Mortgage Monitor Report, just released by Black Knight Financial Services, claiming, "The nation's housing market is looking up with an annual increase of 17% in mortgage originations in 2016." In addition, sentiments from the National Association Of Realtors are positive with, "Buyer demand is much stronger than supply at the moment and the economy and job growth are continuing to support the housing market." Thankfully, today's housing market is still being referred to as "a virtuous cycle" by MarketWatch, reiterating that, "Home equity has recovered, mortgage rates remain low enough to be manageable, and high rents make homeownership attractive." In a year already full of surprises, conditions are weighing out as the market steadily finds some balance in the midst of the first quarter act. 

Courtesy of JMJ Financial Group

If you are ready to buy, sell, or refinance, we are here to help with your next mortgage. 

Todd Burns - NMLS 254981
JMJ Financial Group
949-547-3557
WEBSITE

All Aboard

January’s version of Fannie Mae’s Home Purchase Sentiment Index showed that consumers’ confidence in housing improved for the first time in five months, and February’s survey saw consumers’ sentiments improving even more.

Good vibes are rocketing through the housing market going into the hot spring selling season and buyers are ready for takeoff. January’s runway of consumer confidence has resulted in an ongoing ascent as, “Fannie Mae’s latest Home Purchase Sentiment Index (HPSI) shows that consumer confidence in housing hit an all-time high in February, continuing a climb in confidence that began in January,” as reported by Housingwire.com, also citing that the index “increased by 5.6 percentage points in February to 88.3, setting an new all-time high”. Senior vice president and chief economist at Fannie Mae, Doug Duncan, claims, “The latest post-election surge in optimism puts the HPSI at its highest level since its starting point in 2011.” Experts across the housing horizon seem to agree as CNBC reports, “Both buyers and sellers alike are feeling very good about the housing market this spring, even as home values hit new highs and mortgage rates move up.” So, despite some sluggish market conditions including lingering constrained housing affordability, prospective home buyers are definitely heeding the call to jump on board.

And in the waiting line skyward, the housing force is being fueled by other positive increases. Real estate reporter, Ben Lane, points to the recent HPSI with, "Additionally, consumers also reported increased confidence about not losing their jobs," which, in part, caused an 11 percentage point rise in the net share of Americans who said that now is a goo time to by and a 7 percentage point rise in those who believe that now is a good time to sell, states Housingwire.com. In fact, CNBC reveals that in general, "More Americans are also reporting slightly higher household income, and a growing number expect home values to rise." Everything considered, all signals point to a first class spring season with experts like, Frank Martell, CEO of CoreLogic, plainly stating, "Home prices continue to climb across the nation, and the spring homebuying season is shaping up to be one of the strongest in recent memory." All turbulence aside, overall economic strengths are making for smooth air and a solid lift off for consumer morale this spring. 

If you need a mortgage for a purchase or refinance, we would love the opportunity to work on your behalf. 

Todd Burns NMLS 254981
JMJ Financial Group
949-547-3557
WEBSITE

Some Things Never Change

Fifty-three percent of millennials own homes and overall, 88 percent of millennials who do not own a home have one on their wish list. The sharing economy is here to stay and has changed how many people work and live. But it doesn’t mean that traditional purchases such as cars and homes are less enticing to millennials.

Check any average millennial’s top-ten purchase list and you’ll find things like energy drinks, tattoos, Sriracha sauce, and organic food, according to the Millennial Study 2017 performed by Accel + Qualtrics. And, smack dab in the middle of the list is none other than a home, despite the equally high value millennials place on maintaining their mobility. What remains in question is not if millennials want to buy but how. According to founder of Gen Y Planning and a member of the CNBC Digital Financial Advisor Council, Sophia Bera, millennials are definitively transitional and their views on homeownership follow suit. She states, “I am seeing people go from renting to buying and renting again to buying again, as opposed to buying and holding that property for decades.” And, despite their nontraditional, vagabond-style consumerism, millennials remain fearless to put down their roots even if they quickly dig them up and plant anew.

In an ever-changing, accelerated world, the new wave of buyers have, in the past, been shown to take the consumer express lane, preferring online renting options while bypassing ownership of all kinds altogether. According to CNBC, "The success of start-ups like Netflix, Spotify, and Uber have led to predictions that future Americans will choose not to own and drastically shape the future consumer society." But, as of late, millennials are busting open that myth in terms of the way in which they approach homeownership, proving that they are not that different from past generations in their hunger to own a home. And, as millennials are now reaching their peak spending years while the world keeps turning at an even fast hurried pace, "The number of millennials who aspire to own homes holds steady whether they live in metropolitan or rural areas," says Mike Maughan, Qualtrics head analyst. Apparently, amidst a millennial world consumed with change, the dram of owning a home quite simply, won't.

Article courtesy of JMJ Financial Group

Need a Home Loan? Click here

In The Ring

Existing-home sales stepped out to a fast start in 2017, surpassing a recent cyclical high and increasing in January to the fastest pace in almost a decade, according to the National Association of Realtors. All major regions except for the Midwest saw sales gains last month.

Experts agree that 2017 is off to a strong start “despite a limited supply of properties-for-sale and rising prices”, according to the Wall Street Journal, also reporting that, “U.S. home sales rose in January to the highest level since February 2007.” A few contributing factors are in the lead, all of which are igniting a newfound aire of momentum in the industry. With inventory levels steady at low, “marking the 20th consecutive month of annual declines”, according to Housingwire.com, a spark in confidence is bench pressing the buyer’s market and it’s holding steady. NAR chief economist, Lawrence Yun, asserts, “Much of the country saw robust sales activity last month as strong hiring and improved consumer confidence...have sparked considerable interest in buying a home,” and further contends that, “the housing market is off to a prosperous start as homebuyers staved off inventory levels that are far from adequate.” All things considered, this buyer strong arm is exactly the force needed to shove other mediocre market conditions aside.

Moreover, experts agree that as buyers work it out, the housing arena can brace itself for a brawny year ahead. Svenja Gudell, chief economist for Zillow, excercises her opinion with, "Overall, this is an exceptionally strong way to start the year, and it's clear that demand is likely to continue to be very high as the market enters the spring," as reported by The Wall Street Journal. Similarly, Nela Richardson, chief economist for Redfin Corporation, states, "Buyers are in force in 2017," as reportdly, the firm "is seeing the highest demand for homes...since January 2013". Without a doubt, as competition gears up for spring, this restored body of purchasing power is ready for the ring. And with buyers in flex, this year's market crunches are not projected to win the match.

Source: California Association Of Realtors January 2017
Article courtesy of JMJ Financial Group

Need a home loan? Click here

I DO do this for the money...but not mine

As a mortgage loan originator, there is money to be made. Sure, we make a commission on each transaction, but what we earn is nothing compared to the money at stake for the other parties. The real money on the line is by the buyer, seller, and the agents who worked hard to put the two parties together. 

Real Actions = Real $$$$$

From the moment the offer is accepted and escrow opened money is being budgeted and spent by the buyer and seller. Buyers are paying for an appraisal, inspections, depositing thousands of dollars into escrow, and preparing their final funds by liquidating investment accounts, obtaining gift funds, or consolidating money from various accounts. Sellers are ordering HOA documents, making repairs, completing termite work, placing a deposit on their next property, ordering movers and packing materials with each party upending their current life to start anew. 

Time Is Money

Then there are the agents who have often worked for months preparing their client for the transaction spending countless hours researching, prospecting, networking, previewing, counseling, negotiating, holding broker preview and open houses, spending money on catering and advertising materials, and using their knowledge and skill to put their client in the best possible position with the ultimate goal of closing the deal for them.

The Loan Originator Role

All real estate transactions with a loan or mortgage depend on the "lender" to put the final piece of the puzzle together, and it is most often the one piece that will lead to a successful close or be responsible for its demise. For the loan originator (LO), we have worked with the buyer and their agent preparing them for a impending purchase often well before the buyer makes an offer. The mortgage loan originator creates a very intimate relationship with the buyer establishing trust through actions and our words. We request and review every financial document, credit profile, job history, and look at life changes such as separation or divorce, bankruptcy, or other event which can impact the loan. With this information a loan originator then must determine how to "put the loan together" because it is a puzzle, and everyone has a different life. 

From the initial consultation, the buyer is hanging on the loan originator's every word and recommendation and then deciding if the information provided is reasonable and trustworthy. A seasoned LO will provide the client with budgetary monthly payments and closing cost estimates which should be reasonably accurate. The LO confirms, to the best of our ability, the property meets minimum guidelines and sometimes informs the buyer about properties or locations that will not fit their scenario (and why) so they can narrow their property search. A professional LO will understand how to increase credit scores which can help a buyer qualify or reduce their rate, and they are adept at identifying potential issues which need to be addressed early on in the process then develop a plan to overcome the issue using the underwriting guidelines as the roadmap.

The Pressure Is Real

Yes....the LO feels pressure. All of the legwork leading up to the offer and acceptance better have been accurate because now everyone is looking to the lender to perform what has been promised in a prepapproval letter. Immediately upon acceptance all parties are expecting the LO to make sure the buyer meets the terms of the contract. Everyone is looking to the Contingency Removal date and expecting the buyer to sign off stating they have loan approval and a satisfactory value on the appraisal. It is basically the buyer's commitment to the deal, and the lender can only get them to that point. All of the work leading up to the buyer's offer and ultimate acceptance relies solely on the lenders ability to perform, and if they have done their job correctly everything will go as planned. If not, the buyer, seller, and agents have put a tremendous amount of effort, money, and faith on a commitment written on a short 1-2 page letter which simply says this buyer is fully capable of purchasing a home. 

I take my role and responsibility in each and every transaction seriously, but not for the money. The money earned by a LO on a loan is minimal compared to the funds on the line for the other parties. The truth is I could not sleep at night if I was responsible for a transaction falling out of escrow, or worse having to tell a buyer that unfortunately I made a mistake and they cannot purchase a home. Relationships I have built and friendships made would be destroyed if I didn't make sure my attention to detail was spot on. This is the wrong profession to be mediocre. There are more successful LO's than me. But, I measure my success by delivering on results based on my recommendation, closing every transaction I say will be closed, and ensuring that every opportunity I have to help someone buy, sell, or refinance a property is done with professionalism, attention to detail, and standing by my promise to deliver on a commitment. 

It would be my sincere privilege to assist you, and I promise to do my very best to deliver the results you expect. 

Todd Burns

JMJ Financial Group

949-547-3557

tburns@jmj.me

NMLS 254981

With Property Values Increasing...What Are Your Options?

Orange County - February 2012 Median Home Value $454,000, Today it's $674,000

Time To Sell?
If you purchased a home 5 years ago when the median home value in Orange County was $454,000, CONGRATULATIONS on your timing because the February 2017 median home value is $674,000 according to Zillow. The median sold price in Orange County according to CAR is $745,000. Current inventory is low, and there are buyers who want to purchase a home...your home. If you have outgrown the current property or want to move to a different location, with the increased equity and rates still in the 4's now might be the right time to consider the move. Additionally, the spring and summer months is typically when the most inventory is on the market. If this "selling-season" trend continues, not only can you sell your home for top dollar today with less competition because of lower inventory, but you may have a good amount of inventory from which to choose by the time you close on the sale.

SEARCH HOME PRICES - CLICK HERE

You want to stay...
Property values in Orange County and other surrounding areas have increased year-over-year, and for some that means homeowners may be able to eliminate the mortgage insurance or a 2nd equity line/home loan. Homeowners often chose these loans because their down payment was less than 20% or used FHA financing to obtain the property.

Homeowners with a 2nd/Equity Line should pay special attention to the recent increase in property values because the rate on these loans are variable, meaning it can change at anytime as determined by the FED. The FED raised the Prime Rate for the first time since December 2008 by .25% in December of 2015 and again in 2016 to its current level of 3.75%. Also in December the FED indicated they could raise interest interest rates again in 2017 as many as 3 times. If they continue the trend of .25% increase and raise it 3 times, the Prime Rate could be 4.5% by the end of 2017.

A Home Equity Line Of Credit (HELOC), which has been the prevailing 2nd in the local housing market, has a rate based on the Prime Rate plus a margin. There are several companies customarily used for HELOC's in California and the margins vary from company to company, the loan-to-value, and credit score of the borrower. As a mortgage originator I have seen these margins go as high as 3.90%. If the FED does raise rates by .25% three times during 2017, the total combined rate could be as high as 8.4% for the highest margin equity lines by the end of the year.

Take Advantage Of The Increased Property Values

Eliminate PMI or a HELOC
Property values have certainly increased year-over-year while 30 year mortgage rates have remained relatively steady even though there was a bump up after the election. If the current interest rate is in the low to mid-4's, combining the 2nd or HELOC into a new first mortgage may have a long-term benefit considering the projected increases to the Prime Rate. In the case of FHA borrowers who may have a great rate (in the mid-3's) but pays mortgage insurance (of .85) which may never go away depending on when the loan was originated, combining the loan into a conventional/conforming loan may also have a long-term benefit.

Use Equity To Upgrade Property

FOR SALE - 31331 Summerhill Ct, Coto de Caza

Another noticeable trend is homeowners taking advantage of the increased values to access home equity to pay for upgrades on the home. If a homeowner has long desired an upgraded kitchen, bathroom, or other features which can have a substantial cost, tapping into the equity by refinancing is a popular way to make those upgrades while still increasing the value of the home.

Use Equity To Pay Off Debt
Credit card debt and other expenses such as student loans and medical expenses have an impact on the household cash flow. Households have an average credit card balance of $16,601 according to a NerdWallet report. Some may find that taking out some equity in the home and locking in a long-term low interest rate will enable homeowners to pay off debt while simultaneously lowering the household monthly payment obligations.

There is no cost to run the numbers and explore options which may include speaking with a local real estate agent. At my employer we will run the comparable sales in your neighborhood to determine a reasonable value range and compare it to what is owed on the home. If your goal is to stay in the property, you will be provided estimated figures to determine if a refinance is right for you. Should you explore the option of selling, we can refer some great agents in your area that can provide a more detailed report (CMA - Competitive Market Analysis) to help you decide if selling now is the best option. 

Contact me today and allow me and the people in my sphere help you obtain your goals.

Todd Burns
949-547-3557
tburns@jmj.me
MLO - JMJ Financial Group
NMLS 254981

Virtually Sold

Sellers in the current housing landscape often have the luxury of listing their homes “as is” without fixing it up or with only minimal window-dressing since demand for homes has been high and inventory low. It’s common for sellers to receive multiple bids, and in the hottest markets, sell for over asking price.

An inventive idea is just the jolt needed for a seller’s market rapidly rushing toward an era of opportunity seemingly unimaginable only 20 years ago. And these days, the seller’s spot is hot, especially at home in California where the market is also experiencing billowing levels of appreciation. According to CoreLogic President and CEO, Anand Nallathambi, “Home prices are continuing to soar across much of the U.S. led by major metro areas such as Boston, Los Angeles, Miami, and Denver.” Needless to say, competition in a sea of hopeful buyers remains nothing short of titanic. From the watchtower, Housingwire.com points to the Federal Housing Administration’s move to “increase conforming loan limits for 2017” as a smoke signal revealing that “the market already hit pre-recession levels”. Hopefully, this domestic buyer’s boost steadies the tide because international buyers are riding the next wave, drawn to shore by innovative selling tactics.

With this flow of new trends, buyers abroad are crashing into (home) shore on a breaker that makes surfing the luxury market feasible without ever dipping toes into U.S. sand. Agents intent on riding the raids are beginning to get very creative. According to Bloomberg.com, Jack Ryan, founder of surging online brokerage, REX, decided "to turn to virtual reality to sell a $57.5 million home in Malibu, California "by offering the client a view of the home as though they were really there by looking through a piece strapped to their head." And virtual reality is just one wave in a seller's expanse, changing the way homes are being sold. Beyond the horizon of luxury homes speckling shores like Malibu remains the steady uprise of prices "fueled by a potent cocktail of high demand, low inventories, and historically low interest rate," as reported by CoreLogic. So it seems it is high time to jump on board and coast the crest of the latest breaks.

Post courtesy of JMJ Financial Group

3 Tips On Raising Credit Score

3 Tips On Raising Credit Score

You know credit score is important, especially when purchasing or refinancing a home. Here are some helpful tips from a loan officer:

1. Keep your credit card balances under 30% (or less) of the available credit limit - Credit scoring is based on many factors, one is credit utilization as it compares to available credit. For example, if you have a $500 credit card limit and the reported balance at the end of the cycle is $400, your credit score will be lower. Look at an example:

Available Credit/Balance/Ratio

Score before balances paid down

You can see that the credit balances are 70% and 67% of the available credit limit on these 2 accounts. As a result, the credit score is 612. Ideally, for this client we would want a 640 credit score or greater. This will save them .25% on the interest rate and over $10,000 in discount points.

Now look at what paying down the balances do for this credit profile and score:

Projected Score Increase

 An increase to 643 and saving this client .25% on the interest rate and over $10,000 in added cost to the loan. 




2. Change your date of payment - Many of my clients utilize credit cards monthly and pay them down or off monthly. That is a great way to ensure the credit profile is in good standing, but depending on when the credit card is paid may impact your credit score, unknowingly. Some creditors report balances once a month, some twice a month, and some may report daily or even not at all. There have been many instances when reviewing a credit profile with a client they have commented, "Why is this creditor showing a balance. I pay it off every month?" After explaining the way creditors report sometimes the easiest solution is to find out when that creditor reports to the bureaus, and then if you plan to pay off the bill change your pay date to correspond with a time before the credit reports, but with sufficient time to ensure the payment has posted prior to the account being reported. By changing your payment schedule, you can help to ensure the maximum credit score is being reported at any given time during the month.

Here is an open collection for $914 with a score of 605.

3. If an open collection account is paid, will that raise the score? - No one likes a collection account on their credit report, and I believe most people would like to pay it off and clear their obligation. But, doing so doesn't necessarily mean your credit score will increase. Another factor in credit scoring is "Date Of Last Activity". If a person has a recent collection, the damage to the credit score is already done. Paying it off typically will not hurt or help your credit score. But, if there is an older collection on the credit profile and it is paid off, it can actually hurt the credit score because the date of last activity is the day of the repayment.  For home loans, collections are not necessarily required to be paid to consummate a mortgage loan. FHA loans, for example, will allow up to $2000 in open collection accounts and not require a repayment, installment agreement, or other methods of calculating the debt. Conventional/conforming loans on a primary residence do not require open collections to be paid.

Here is the Score after the collection is paid

If you are planning to purchase or refinance a home and have open collection accounts, please discuss this with the mortgage originator to determine if the account should be paid.

JMJ Financial would love to earn you business. It would be my privilege to help guide you through the process and ensure that together we are finding the best solutions to accomplish your goal.

Todd Burns - NMLS 254981
JMJ Financial Group
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Home Prices and Home Buyers

Sweet and Sour

The divide between the prices of homes Americans want to buy and the inventory of such homes is growing, suggesting first-time home buyers and high-end sellers might have a difficult year ahead of them. The result is likely to be swiftly rising prices at the low end and challenges for first-time buyers, and sluggish price increases and lingering listings at the top end.

With prices soaring all over the nation, experts across the map are advising prospective homeowners to jump start the search and hit the home hunting ground running toward spring. Currently, as reported by The National Association of Realtors, four of the five priciest metropolitan housing markets are within California’s borders. That being said, even with inventory and affordability levels still crouching low sludging through the new year, soon-to-be buyers want in on our cache. In relation to this, a recent report from The Wall Street Journal points to “a critical imbalance in the market: There is a significant and growing shortage of lower-priced homes and a glut of high-end ones.” But, experts agree that the anticipated economic invigoration will entice first-time buyers back into the housing arena going into the spring selling season.

Even further, NAR Chief Economist, Lawrence Yun, adds, “Buyer interest stayed elevated in most areas thanks to mortgage rates under 4% for most of the year and the creation of 1.7 million new jobs.” Especially here at home then, bolstering this motivation moving toward the warming seasons is key. Given that California homes are the hottest of commodities, budding spring buyers are encouraged to hop on it. Competition will likely increase even more in the coming seasons and, according to NAR President and California’s own, William E. Brown, “The prospect of higher mortgage rates and more home shoppers in coming months should be enough incentive for those serious about buying to start their search now.” So it seems as the springtime squeeze encroaches, buyers are still bound to turn a few sour lemons into sweet lemonade.

Go Green And Get Smart

The benefits of green upgrades, no matter the size, are far-reaching for both your global footprint and your wallet. Leaving a light on here or there causes small but significant increases in the size of your carbon footprint and your energy bill, but new technology can stop those little expenditures.

Two of California’s major metropolitan areas hit the smart mark when it comes to housing. According to a recent survey from Realtor.com, out of the top 10 national hot spots for smart-home technology, Los Angeles and Riverside both made the list. This is good news for our housing home front as it becomes increasingly clear that the greener the home, the smarter the homemaker. Eco-friendly living and smart technology is driving the market into 2017 as a hot trend and an all-around slick move when it comes to saving money, time, and energy. Local real estate broker and National Association of Realtors Green Designee, Eileen Oldroyd, of Mission Viejo recaps, “You’ll have a home that is more comfortable, more durable, with lower energy bills.” This sounds pretty good when coupled with peace of mind in contributing to an even greater good. And sounding better yet is that experts agree: going green just makes plain good sense.

And today, at the dawn of a brand new year, there are more options than ever in making homes greener without spending a fortune. Builders like Ewan Utting of San Francisco wraps his business around constructing passive homes and states, “A passive house minimizes heating and cooling needs because it is sealed air-tight, meaning temperature-controlled air doesn’t leak out.” Other locals, such as Cassy Aoyagi of FORM LA Landscaping, suggest planning outdoor designs around native species because, “They thrive without chemical pesticides and fertilizers and need little water.” Shockingly, Aoyagi further stakes the claim that, “replacing a traditional lawn with native grasses will require 50% to 70% less water and save you approximately 60 hours per year in maintenance, for a saving of up to $3,500 in thirsty climates.” All in all, in 2017, going greener and getting smarter is really getting a whole lot easier.