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Claudia Hansen's Blog

By Claudia Hansen | Agent in 90049
  • Where Prices are Headed over the Next 5 Years?

    Posted Under: Market Conditions in Santa Monica, Home Buying in Santa Monica, Home Selling in Santa Monica  |  March 11, 2014 8:58 AM  |  584 views  |  1 comment
    Fill out this simple form  to get a Free Report on YOUR House Value and Current Market Conditions!


    Home-Price-Expectation-275

    Today, many real estate conversations center on housing prices and where they may be headed. That is why we like the Home Price Expectation Survey. Every quarter, Pulsenomics surveys a nationwide panel of over one hundred economists, real estate experts and investment & market strategists about where prices are headed over the next five years. They then average the projections of all 100+ experts into a single number.

    The results of their latest survey

    The latest survey was released last week. Here are the results:

    • Home values will appreciate by 4.5% in 2014.
    • The average annual appreciation will be 3.94% over the next 5 years
    • The cumulative appreciation will be 19.7% by 2018.
    • Even the experts making up the most bearish quartile of the survey still are projecting a cumulative appreciation of almost 11% by 2018.

    Individual opinions make headlines. We believe the survey is a fairer depiction of future values.

    Provided courtesy of Claudia Hansen CalBRE 01155245 Rodeo Realty Brentwood


    Thanks to the KCM Blog

  • Buying a Home? How the Serenity Prayer May Help

    Posted Under: Market Conditions in Santa Monica, Home Buying in Santa Monica, Home Selling in Santa Monica  |  March 6, 2014 8:49 AM  |  803 views  |  No comments

    Search all properties online at www.ClaudiaErealty.com


    hands-in-prayer

    You may be frustrated while attempting to buy a home in today’s market. You may feel powerless to the process. How could YOU possibly know whether the current good news about housing will continue? There is no doubt that today’s real estate market is extremely difficult to navigate. However, we want you to know that thousands of homes sold yesterday, thousands will sell today and thousands will sell each and every day from now until the end of the year.

    It is totally within your power to decide whether it is the right time for you and your family to move. Even in the current market.

    “How?” Let’s look at the simplicity of the famous Serenity Prayer and apply it to buying a home in today’s real estate market.

    “God, grant me the serenity to accept the things I cannot change; courage to change the things I can; and wisdom to know the difference.”

    Accept the things you cannot change

    The two main concerns many talk about when discussing the housing market are:

    1. the current lack of inventory impacting housing prices
    2. the impending raise in interest rates

    As an individual, there is very little you can do to impact either of those two situations. The best think-tanks in the country are struggling to discover what impact each of these items have on real estate.

    Have the courage to change the things you can

    Whether you are a first-time buyer or a move-up buyer and you believe now is the right time for your family to purchase a home – DO IT! Prices will only be higher later this year and though interest rates are rising they are still at historic lows. That means that your monthly housing expense will still be lower than almost any time in the last 50 years – and probably lower than your current rent payment.

    The wisdom to know the difference

    With the winter ending, the outlook on inventory is positive. Sellers will look to come out of hibernation and list their homes. The question is whether or not it makes sense to delay moving on with your life until everything gets ‘better’. Should you not buy a house and enable your kids to attend the school you have already decided is best for them? Should you spend another winter up north even though your doctor recommends you move to a climate better suited to your current medical situation?

    This is where your wisdom must kick in. You already know the answers to the questions we just asked. You have the power to take back control of the situation by moving forward. The time has come for you and your family to move on and start living the life you desire. That is what truly matters.

    Provided courtesy of Claudia Hansen CalBRE 01155245 Rodeo Realty Brentwood


    Thanks to the KCM Blog

  • Should I Rent My House If I Can't Sell It?

    Posted Under: Market Conditions in Santa Monica, Home Buying in Santa Monica, Home Selling in Santa Monica  |  March 4, 2014 8:23 AM  |  597 views  |  No comments

    Fill out this simple form  to get a Free Report on YOUR House Value and Current Market Conditions!

    Home For Rent

    A recent study has concluded that 39% of buyers prefer to rent out their last residence rather than sell it when purchasing their next home.

    The study cites that many homeowners were able to refinance and “locked in a very low mortgage rate in recent years. That low rate, combined with a strong rental market, means they can charge more in rent than they pay in mortgage each month, so they are going for it.”

    This logic makes sense in some cases. We at KCM believe strongly that residential real estate is a great investment right now. However, if you have no desire to actually become an educated investor in this sector, you may be headed for more trouble than you were looking for. Are you ready to be a landlord?

    Before renting your home, you should answer the following questions to make sure this is the right course of action for you and your family.

    10 Questions to Ask BEFORE Renting Your Home

    1.) How will you respond if your tenant says they can't afford to pay the rent this month because of more pressing obligations? (This happens most often during holiday season and back-to-school time when families with children have extra expenses).

    2.) Because of the economy, many homeowners can no longer make their mortgage payment. What percent of tenants do you think can no longer afford to pay their rent?

    3.) Have you interviewed a few experienced eviction attorneys in case a challenge does arise?

    4.) Have you talked to your insurance company about a possible increase in premiums as liability is greater in a non-owner occupied home?

    5.) Will you allow pets? Cats? Dogs? How big a dog?

    6.) How will you actually collect the rent? By mail? In person?

    7.) Repairs are part of being a landlord. Who will take tenant calls when necessary repairs arise?

    8.) Do you have a list of craftspeople readily available to handle these repairs?

    9.) How often will you do a physical inspection of the property?

    10.) Will you alert your current neighbors that you are renting the house?

    Bottom Line

    Again, renting out residential real estate historically is a great investment. However, it is not without its challenges. Make sure you have decided to rent the house because you want to be an investor, not because you are hoping to get a few extra dollars by postponing a sale.

    Provided courtesy of Claudia Hansen CalBRE 01155245 Rodeo Realty Brentwood


    Thanks to the KCM Blog


  • Moving-Up? Do it NOW not Later

    Posted Under: Market Conditions in Santa Monica, Home Buying in Santa Monica, Home Selling in Santa Monica  |  February 25, 2014 3:28 PM  |  294 views  |  1 comment

     Search all properties online at www.ClaudiaErealty.com



    A recent study revealed that the number of existing home owners planning to buy a home this year is about to increase dramatically. Some are moving up, some are downsizing and others are making a lateral move. Another study shows that over 75% of these buyers will, in fact, be in that first category: a move-up buyer. We want to address this group of buyers in today’s blog post.

    There is no way for us to predict the future but we can look at what happened over the last year. Let’s look at buyers that considered moving up last year but decided to wait instead.

    Assume they had a home worth $300,000 and were looking at a home for $400,000 (putting 10% down they would get a mortgage of $360,000). By waiting, their house appreciated by 13.8% over the last year (national average based on the Case Shiller Pricing Index). Their home would now be worth $341,400. But, the $400,000 home would now be worth $455,200 (requiring a mortgage of $409,680).

    Here is a table showing what additional monthly cost would be incurred by waiting:

    Move Up Cost of Waiting (2)

    Prices are projected to appreciate by over 4% and interest rates are also expected to rise by as much as another full percentage point. If your family plans to move-up to a nicer or bigger home this year, it may make sense to move now rather than later.

    Provided courtesy of Claudia Hansen CalBRE 01155245 Rodeo Realty Brentwood

    Thanks to the KCM Blog
  • 1602 Georgina Avenue Santa Monica CA 90402

    Posted Under: Market Conditions in Santa Monica, Home Buying in Santa Monica, Home Selling in Santa Monica  |  February 10, 2014 8:54 AM  |  265 views  |  No comments
    ► ►To receive instant information on this home Text 310-601-4101 and Enter Code 1019 ◄◄

    To view the online version of this eFlyer, please click here

    Featured picture for the property 14727527

    In The $5millions ••••••••█• Santa Monica •█••••••••

    One of the most sought after homes in Santa Monica.This John Byers Spanish Colonial Revival built for E.J. Carrillo displays the hacienda like features Byers favored for much of his adobe construction. Beautiful three bay veranda, brick enclosed patio, and hand finished lath and plaster walls are a few of the architectural features. This home has been meticulously updated while maintaining the authentic architectural integrity. The most wonderful indoor/outdoor flow with beautiful landscaped patios on both sides of the step down living room and dining room. The gourmet kitchen has been reinvisioned by a professional chef with imported French stone, large center island, top of the line appliances, and casual dining area. The large family room with fireplace opens to the kitchen. The romantic master suite w/ fireplace has a Large walk-in closet, steam shower, and spa tub. Back yard with pool, spa, built in bbq and fireplace. 4 bds/4 bth in house w/1 bd/1bth guest room attached to garage.

    Listing Courtesy of Wendy Kirshner CalBRE 01317026 Rodeo Realty- Brentwood

    ***Advertised with Permission**

    Claudia Hansen CalBRE 01155245 Rodeo Realty Brentwood

    Get a Courtesy SANTA MONICA Real Estate Market Report for this exact area by or TYPING in ClaudiaErealty.com in your web browser and then Market insider, put in the Zip Code and take your time gaining knowledge about this area. Don't delay, the Santa Monica Real Estate market is changing quickly.

    Have a home to Sell? Call 310-601-4101 Extension 3000
    Have a home to Sell and do a Short Sale with? Call 310-601-4101 Extension 4000

  • 5 Reasons to Buy a Home Now Instead of Spring

    Posted Under: Home Buying in Santa Monica, Foreclosure in Santa Monica, In My Neighborhood in Santa Monica  |  February 10, 2014 8:41 AM  |  411 views  |  No comments

    Search all properties online at www.ClaudiaErealty.com

    Happy Family Sold

    Based on prices, mortgage rates and soaring rents, there may have never been a better time in real estate history to purchase a home than right now. Here are five reasons purchasers should consider buying before the spring market arrives:

    Supply Is Shrinking

    With inventory declining in many regions, finding a home of your dreams may become more difficult going forward. There are buyers in more and more markets surprised that there is no longer a large assortment of houses to choose from. The best homes in the best locations sell first. Don’t miss the opportunity to get that ‘once-in-a-lifetime’ buy.

    Price Increases Are on the Horizon

    Prices are projected to appreciate by over 25% from now to 2018. First home buyers will probably pay more both in price and interest rate if they wait until the spring. Even if you are a move-up buyer, it will wind-up costing you more in net dollars as the home you will buy will appreciate at approximately the same rate as the house you are in now.

    Owning a Home Helps Create Family Wealth

    Whether you are rent or you own the home you are living in, you are paying a mortgage. Either you are paying your mortgage or your landlord’s. The Fed, in a recent study, revealed that the net worth of the average homeowner is 30 times greater than that of a renter.

    Interest Rates Are Projected to Rise

    The Mortgage Bankers Association, the National Association of Realtors, Freddie Mac and Fannie Mae have all projected that the 30-year mortgage interest rate will be over 5% by the this time next year. That is an increase of almost one full point over current rates.

    Buy Low, Sell High

    We would all agree that, when investing, we want to buy at the lowest price possible and hope to sell at the highest price. Housing can create family wealth as long as we follow this simple principle. Today, real estate is selling ‘low’ compared to where it will be next year. It’s time to buy.


    Provided courtesy of Claudia Hansen CalBRE 01155245 Rodeo Realty Brentwood


    Thanks to the KCM Blog

  • Be Quiet Chicken Little. The Sky is NOT Falling

    Posted Under: Market Conditions in Santa Monica, Home Buying in Santa Monica, Home Selling in Santa Monica  |  February 10, 2014 8:25 AM  |  199 views  |  No comments

    Fill out this simple form  to get a Free Report on YOUR House Value and Current Market Conditions!

    Chicken Little

    There has been much speculation about what is causing the falling sales numbers in the most recent Existing Home Sales Reports (EHS) from the National Association of Realtors (NAR). Some have claimed that rising interest rates have scared buyers out of the market. Others have claimed that consumers are just losing confidence in the housing recovery fearing a new bubble may be forming. We want to look at the validity of these two assumptions.

    MORTGAGE INTEREST RATES

    ASSUMPTION: Rising interest rates have forced buyers back onto the fence. Evidence offered up by those in this camp comes directly from the EHS Report from NAR. Three of the last four reports revealed that sales were below sales from the same month the previous year.

    THE REALITY: Though it is true year-over-year sales have fallen nationally, a closer look at the report reveals major regional differences. Sales in the West Region are down 10.7% versus the same month last year. Sales in the Midwest Region are also down but by less than 1%. The Northeast Region is up 3.2% and the Southern Region is up 4.6%.

    If the issue is interest rates, why is one region virtually unchanged and two of the remaining three regions up in sales? We don’t believe rates are the challenge.

    CONSUMER CONFIDENCE in REAL ESTATE is ERODING

    ASSUMPTION: The pace of the recent price increases has caused many to fear the emergence of a new housing bubble. Similar to the first assumption, evidence offered up by those in this camp comes directly from the less than enthusiastic EHS Reports from NAR.

    THE REALITY: As we mentioned before, sales in the Midwest Region are down but by less than 1%. The Northeast and the Southern Region have both shown increased sales as compared to the year before. Are only the consumers in the Western Region afraid of a possible bubble forming?

    The fear of a new housing bubble is vastly overstated. Forty states have not yet returned to home values they experienced seven to nine years ago. Nineteen of those forty states still have home prices 15% or more below peak prices. We believe home values will continue to increase but just at a slower rate of appreciation.

    It is not just us that believe this is the case. The over 100 housing experts recently surveyed by Pulsenomics revealed that they believe prices will continue to appreciate at historical annual numbers (3-4%) for at least the next five years.

    THEN WHAT IS THE CHALLENGE?

    If the lack of sales is not the result of increasing interest rates or decreasing consumer confidence, what actually is happening? We believe it can be broken down to three words: LACK of INVENTORY.

    Inventories of foreclosure and short sale properties are falling like a rock in the vast majority of regions across the nation. These two categories of homes have driven the market for the last few years. As foreclosures and short sales sell, they are not being replaced because the economy has gotten better and more families have regained control of their finances. All fifty states have seen a decrease in the number of homeowners who are seriously delinquent on their mortgage payments with thirty nine states seeing the number shrink by over 20%.

    This inventory has not yet begun to be replaced by the non-distressed properties in the country. Just this month, NAR revealed that the months’ inventory of homes for sale has dropped to only a 4 month supply. A normal market has between 5-6 months’ supply.

    This is the main reason home sales are declining in certain regions – there are just not enough houses for sale.

    BOTTOM LINE

    With the economy improving and with homeowners gaining back some equity they lost when prices fell, we believe there will be many homes coming unto the market this spring. A recent survey revealed that 71% of homeowners are at least considering selling their home in 2014.

    If you are thinking of selling, beating this increased competition to the market before spring might make sense – and might enable you to get the best price possible for your home.

    Provided courtesy of Claudia Hansen CalBRE 01155245 Rodeo Realty Brentwood


    Thanks to the KCM Blog

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