Category: moving

The housing market has always been subject to fluctuations, and understanding its dynamics is crucial for both buyers and sellers. In March 2023, the market showed signs of optimism as home prices experienced an acceleration compared to the previous month, possibly signaling an end to the decline that began in June 2022. However, challenges such as mortgage rates and economic weakness continue to impact housing prices. In this blog post, we will delve deeper into the state of the national housing market, explore the ongoing challenges, and provide insights into the future outlook.

Ongoing Challenges in the National Housing Market:

The national housing market faces two significant challenges: inventory shortage and affordability. These challenges have resulted in a lack of energy in the market this spring. Buyers are finding it increasingly difficult to find suitable homes within their budgets, leading to increased competition for limited fresh listings. This upward pressure on prices has made it challenging for buyers to enter the market, while sellers are hesitant to list their homes due to current mortgage rates. As a result, the market has become a highly competitive environment.

Stabilized Mortgage Rates and Their Impact:

During the first quarter of 2023, mortgage rates stabilized, providing some relief to buyers. This stability allowed them to plan their home purchases without the fear of significant rate volatility. However, even with this stability, sellers remained hesitant to list their homes, resulting in a constrained buying environment. The current mortgage rates have made many owners feel “locked-in” and unwilling to take on a new mortgage at the prevailing rates.

Economic Uncertainties and Future Outlook:

The future of the housing market hinges on various economic uncertainties, such as debt-ceiling negotiations and the outcome of the upcoming FOMC meeting. These factors have the potential to influence interest rates, which, in turn, could impact the housing market. While inflation is slowing and the job market remains strong, high housing costs and low inventory levels are causing gridlock in the market.

In April, pending home sales leveled off due to constrained buyer demand and limited supply. However, the stabilization of mortgage rates and slowed listing price growth offered some breathing room. Buyers have increasingly turned to new construction as existing home supply continues to dwindle. It is expected that the housing market will remain tense until either home prices or mortgage rates decrease enough to bring about a balance between buyer and seller activity.

Local Market Dynamics and Opportunities:

While the national housing market remains unbalanced, some local markets have witnessed softened prices and increased inventory. This indicates a move towards balance in those areas. Conversely, low-priced markets continue to experience high demand and price growth, attracting buyers seeking affordable homeownership opportunities.

The housing market in March 2023 experienced an acceleration in home prices, potentially marking the end of a previous decline. However, challenges such as mortgage rates and economic weakness continue to affect housing prices. Buyers face affordability and inventory challenges, while sellers hesitate to list their homes. Economic uncertainties further add to the complexity of the market. Nevertheless, some local markets show signs of balance, while low-priced markets continue to thrive. By staying informed about market dynamics and carefully navigating the challenges, both buyers and sellers can make informed decisions in this evolving real estate landscape.

https://www.rismedia.com/2023/05/30/seller-apprehension-helps-home-prices-inch-upward-march/?lp_txn_id=336781&lp_sign_in=1

Thinking of moving or investing and need a referral for a Real Estate Broker, we can help: email us at TEAM@McDanielCallahan.com, fill in the form below or call 925-838-4300. Terry McDaniel DRE license #00941526

California’s housing market has long been plagued by challenges in constructing multifamily properties in major cities. Limited space, stringent environmental laws, and neighborhood opposition have hindered the creation of much-needed housing options. However, amidst these difficulties, a promising trend has emerged: the construction of Accessory Dwelling Units (ADUs). These small, detached houses with their own utilities and entryways are gaining traction as a partial solution to the state’s affordable housing needs. In this blog post, we explore the growing popularity of ADUs in California and their potential to alleviate the housing crisis.

A Surge in ADU Permits: In recent years, California has witnessed a significant rise in ADU permits issued. Last year alone, over 23,000 permits were granted, a substantial increase compared to fewer than 5,000 permits in 2017. This surge can be attributed to legislative and regulatory changes that have streamlined the permitting process and mandated that cities allow ADUs of at least 850 square feet. Assemblymember Phil Ting’s proposed bill, which considers allowing the separate sale of ADUs from main houses, is among the various measures being debated to further promote ADU development.

Los Angeles Leading the Way: When it comes to ADU permitting, Los Angeles has emerged as the frontrunner, surpassing other cities by a considerable margin. In 2022, the city issued an impressive 7,160 ADU permits, with San Diego coming in second with 662 permits. To put this into perspective, only 1,387 permits were issued for single-family homes in Los Angeles during the same period. ADU permitting in the city was second only to permits issued for multiunit structures, highlighting their increasing popularity and contribution to housing supply.

A Nationwide Trend: The success of ADUs extends beyond California, as other states have also embraced their potential. Oregon, Montana (in select cities), and Washington have all recognized the value of ADUs and implemented measures to facilitate their construction. Throughout the country, approximately 40 laws have been introduced addressing ADUs in various forms. Supporters of ADUs emphasize their advantages, such as relatively low rental prices, their ability to integrate into densely populated neighborhoods with convenient access to jobs and amenities, and their potential to generate additional rental income or provide housing for extended family members.

Addressing the Housing Crisis: The rapid proliferation of ADUs in California reflects the demand from homeowners to maximize the use of their land while contributing to solutions for the state’s affordability crisis. With soaring rental and property prices that far exceed the national average, California residents are struggling to secure affordable housing. Moreover, homelessness has reached crisis levels, and an increasing number of residents are relocating to more affordable states. ADUs offer a viable option to address these pressing issues by providing additional housing units at a relatively lower cost.

Conclusion: As California grapples with its ongoing affordable housing crisis, Accessory Dwelling Units have emerged as a beacon of hope. Their popularity is on the rise, supported by legislative changes and a growing understanding of their benefits. ADUs present a practical solution that utilizes existing space and infrastructure, allowing homeowners to contribute to affordable housing while meeting their own needs. While challenges persist in constructing multifamily properties, ADUs offer a promising avenue for expanding the housing supply, fostering community integration, and ultimately improving the lives of Californians.

https://www.washingtonpost.com/business/2023/05/21/adu-granny-flat-california-housing-crisis/

Thinking of moving or investing and need a referral for a Real Estate Broker, we can help: email us at TEAM@McDanielCallahan.com, fill in the form below or call 925-838-4300. Terry McDaniel DRE license #00941526

Are you considering buying a new home but haven’t sold your old one yet? It’s a common dilemma that many homeowners face. They want to move into a new house but need the money from the sale of their old home to afford it.

But what if there was a solution that allowed you to buy the new home you want and then sell your old home at your own pace? That’s where a Cross Collateralized Bridge Loan comes in.

I’ve seen many clients struggle with this situation. They want to make the transition between homes as smooth as possible without having to worry about timing the sale of their old home perfectly. That’s why I often recommend a Cross Collateralized Bridge Loan to help bridge the gap between buying and selling.

So, what exactly is a Cross Collateralized Bridge Loan? It’s a loan that allows homeowners to borrow money to buy a new home while still owning their old one. The loan is secured by both properties and is paid back when the old home is sold.

This type of loan provides homeowners with the flexibility to move into their new home right away, without the added stress of trying to sell their old home first. It also allows them to take the necessary time to properly prepare their old home for sale without feeling rushed.

At the end of the day, a Cross Collateralized Bridge Loan can be a great solution for those looking to buy a new home while still owning their old one. It provides peace of mind and flexibility during what can be a stressful time in a homeowner’s life.

We are always looking for ways to make the buying and selling process as easy and stress-free as possible for clients. If you’re considering a Cross Collateralized Bridge Loan, don’t hesitate to reach out to me for more information. We are here to help you make the best decision for your unique situation.

Thinking of moving or investing and need a referral for a Real Estate Broker, we can help: email us at TEAM@McDanielCallahan.com, fill in the form below or call 925-838-4300. Terry McDaniel DRE license #00941526

Perhaps you’re thinking of purchasing a vacation home, a rental property, or a future family inheritance. Whatever your reason for buying a second home, it’s important to be aware of the tax implications that come with owning an additional property.

One important tax consideration is property taxes. Depending on where your second home is located, you may be subject to significant property tax bills. However, the good news is that property taxes are generally tax-deductible, but only up to the current limit of $10,000. It’s important to keep this limit in mind when budgeting for your second home purchase.

Another tax consideration is mortgage interest. As with your primary residence, mortgage interest on your second home is tax-deductible. However, there is a limit to how much mortgage interest you can deduct. For taxpayers, the limit is $750,000 of total debt. This means that if you have mortgages on both your primary residence and your second home, the total combined debt cannot exceed $750,000 if you want to deduct all of the interest.

If you plan to rent out your second home, you should be aware of the tax implications of rental income. If you rent out your second home for more than 14 days in a year, you will be subject to income tax on your rental earnings. This income is typically taxed at your marginal tax rate, and you will also need to keep careful records of all expenses related to renting out the property.

Finally, if you plan to make your second home a family legacy, it’s important to consider potential estate tax implications. Estate tax is a tax on the transfer of property after someone’s death. If you own a significant amount of property, including a second home, you may be subject to estate tax. To avoid or minimize estate tax, you may want to consider transferring ownership of the property out of your estate and into a qualified personal residence trust (QPRT).

Overall, purchasing a second home can have significant tax implications. To ensure that you make informed decisions about your finances and maximize the tax benefits of owning a second home, it is recommended to consult with your tax advisor and financial professional. By doing so, you can explore how a second home might affect your financial goals and plan accordingly.

Thinking of moving or investing and need a referral for a Real Estate Broker, we can help: email us at TEAM@McDanielCallahan.com, fill in the form below or call 925-838-4300. Terry McDaniel DRE license #00941526