Blog

Inventory is Low & We Need Homes to Sell

 

July 25, 2020
Good Afternoon,
 
This summer looks a little different from what we were expecting, but I hope you are still finding some positives through it all. I am certain that overcoming this year's challenges will allow us to grow together as a community.
 
Overall, there are many optimistic signs in the housing market specifically, and for the economic environment more generally. The fundamentals for housing demand include low-interest rates. A lack of housing supply is still preventing many homebuyers who want to able to take advantage of these phenomenal rates and get a foot on the property ladder.
 
Have a great weekend!
 
 
Information + Updates
Inventory is low and we need homes to sell.
 
Please call me at 949.233.7949 or email me at maura@compass.com
if you are interested in selling your home.
Did You Know?  There is anecdotal evidence to support that houses with names attract broader attention, especially in vacation spots. (WSJ)
 
Did You Know? In Texas and Florida, two states without an income tax, more than 50% of the government’s revenue comes from its cut of what residents and tourists spend in stores, restaurants and bars. With the coronavirus raging, bars shuttered, and nearly 2 million residents out of work, Texas' sales-tax revenue is tumbling, leaving the government poised to draw down the savings it built up when the economy was still booming. With high unemployment and business closings cutting into tax collections, states are facing budget shortfalls of some $435 billion through 2021. Texas’s sales-tax collections in June dropped 6.5% from a year earlier to $2.7 billion, following a 13.2% drop in May. The many States may need federal assistance. (Bloomberg)
 
Did You Know? Over 15,000 U.S. restaurants have permanently closed during the coronavirus pandemic. California, Texas, New York, and Florida have seen the highest number and percentage of closings. Indoor dining has been halted at nearly 90,000 restaurants across the US, according to the National Restaurant Association. I see a day in our future when this returns AND I see an explosion of new, creative restaurants opening in more affordable spaces with a better chance of being profitable! Opportunity awaits.... (WSJ)
 
Did You Know?  Homebuyer demand and an already strong refinance market pushed mortgage application volume up 4.1% last week, the Mortgage Bankers Association said. Refinance application volume was up 5% for the week, 122% higher than a year ago. Mortgage lending is set to reach $3.14 trillion this year, the highest since 2003, as the annual average rate for a 30-year fixed home loan falls to a record low of 3.2%. Next year, rates are heading even lower. In 2021, the annual average rate probably will fall to 2.8%, the lowest ever recorded. The Federal Reserve is set to purchase $40 billion a month in mortgage-backed securities, coupled with the expectations that “margins” – meaning the difference in the yields for 10-year Treasury yield and mortgage bonds – will continue to shrink as the lending industry adjusts to doing business amid the COVID-19 pandemic. (Housingwire)
 
Did You Know? Demand, the number of new pending sales over the prior month, increased from 2,975 to 3,050, an additional 58 pending sales, up 3% in two weeks. This is the highest demand reading since June 2015, and the highest July level since 2012. It also is the smallest two-week gain since demand turned around at the end of April. Demand is reaching a height for 2020 and will level off soon. Expect demand to remain strong through August when school resumes and housing transitions into the Autumn Market. Housing will still be robust, fueled by record-low mortgage rates, just not as strong as today.
 
 
Orange County Demand Year Over Year
Prior 30 Day Pendings Snapshot
Things to Do
Eat Local + Shop Local + Support Local
 
We are being asked to make many adjustments to our lives these days, and we are continuing our efforts to get locals to make one more adjustment: THINK LAGUNA FIRST. Supporting our local businesses not only helps these businesses to keep their doors open during uncertain times, but it helps our community to thrive as a whole. Anytime you need to go shopping or are thinking about where to order dinner, take the time to think of a Laguna Beach business that can get you what you need!
 
Click the images below...
Featured Listing
In Escrow
Just Sold
The Emerald Bay Market
There are currently 7 homes for sale in Emerald Bay ranging from $4,500,000 to $17,995,000. There are 3 properties in escrow.
 

 

Work With Maura

Maura Short is known for her strong work ethic, broad industry know-how, and passion for architecture, in addition to her extensive network, confidentiality, and moral code. Combined with her wide-ranging local expertise, all of these assets result in favorable outcomes for both buyers and sellers under her care.
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