Marin County Real Estate Blog

What Do Experts See on the Horizon for the Second Half of the Year?

What Do Experts See on the
Horizon for the Second Half of the Year? | MyKCM

As we move into the latter half of the year, questions about what's to come are top of mind for buyers and sellers. Near record-low mortgage rates coupled with rising home price appreciation kicked off a robust housing market in the first half of 2021, but what does the forecast tell us about what's on the horizon?

Mortgage Rates Will Likely Increase, but Remain Low

Many experts are projecting a rise in interest rates. The latest Quarterly Forecast from Freddie Mac states:

We forecast that mortgage rates will continue to rise through the end of next year. We estimate the 30-year fixed mortgage rate will average 3.4% in the fourth quarter of 2021, rising to 3.8% in the fourth quarter of 2022.

However, even as mortgage rates rise, the anticipated increase is expected to be modest at most, and still well below historical averages. Rates remaining low is good news for homebuyers who are looking to maximize their purchasing power. The same...

Homebuyers: Hang in There [INFOGRAPHIC]

Homebuyers: Hang in There [INFOGRAPHIC] | MyKCM

Some Highlights

Contact the Marin Modern Team, your Marin County real estate connection, for assistance buying or selling a home in Marin County California.

...

Pre-Approval Makes All the Difference When Buying a Home

Pre-Approval Makes All the
Difference When Buying a Home | MyKCM

You may have been told that it's important to get pre-approved at the beginning of the homebuying process, but what does that really mean, and why is it so important? Especially in today's market, with rising home prices and high buyer competition, it's crucial to have a clear understanding of your budget so you stand out to sellers as a serious homebuyer.

Being intentional and competitive are musts when buying a home right now. Pre-approval from a lender is the only way to know your true price range and how much money you can borrow for your loan. Just as important, being able to present a pre-approval letter shows sellers you're a qualified buyer, something that can really help you land your dream home in an ultra-competitive market.

With limited housing inventory, there are many more buyers active in the market than there are sellers, and that's creating some serious competition. According to the ...

Hope Is on the Horizon for Today's Housing Shortage

Hope Is on the Horizon for
Today's Housing Shortage | MyKCM

The major challenge in today's housing market is that there are more buyers looking to purchase than there are homes available to buy. Simply put, supply can't keep up with demand. A normal market has a 6-month supply of homes for sale. Anything over that indicates it's a buyers' market, but an inventory level below that threshold means we're in a sellers' market. Today's inventory level sits far below the norm.

According to the Existing Home Sales Report from the National Association of Realtors (NAR):

Total housing inventory at the end of April amounted to 1.16 million units, up 10.5% from March’s inventory and down 20.5% from one year ago (1.46 million). Unsold inventory sits at a 2.4-month supply at the current sales pace, slightly up from March’s 2.1-month supply and down from the 4.0-month supply recorded in April 2020. These numbers continue to represent near-record lows.

Basically, while we are seeing some improvement, we're still at near-record lows for housing inventory (as shown in the graph below). Here's why. Since the pandemic began, sellers have been cautious when it comes to putting their homes on the market. At the same time that fewer people are listing their homes, more and more people are trying to buy them...

Have Your Day in the Sun by Moving Up This Summer [INFOGRAPHIC]

Have Your Day in the Sun by
Moving Up This Summer [INFOGRAPHIC] | MyKCM

Some Highlights

  • Longer days and sunny weather mean summer is upon us, and what better conditions than right now to upgrade to the home of your dreams?
  • If your needs have changed, it's a great time to upgrade – there's likely high demand for your current house, and today's low mortgage rates can help you afford your dream home.
  • If you're ready to upgrade to a home that matches your changing needs, let's connect today.

Contact Marin Modern Real Estate, experienced Marin County Realtors, for help purchasing or selling a home in Marin County.

...

Why This Is Not Like 2008 Again

Why This Is Not Like 2008
Again | MyKCM

During the Great Recession, just over a decade ago, the financial systems the world depended on started to collapse. It created a panic that drove some large companies out of business (ex. Lehman Brothers) and many more into bankruptcy.

The financial crisis that accompanied the current pandemic caused hardship to certain industries and hurt many small businesses. However, it hasn't rattled the world economy. It seems that a year later, things are slowly getting back to normal for many companies.

Why is there a drastic difference between 2008 and now?

In a post from RealtyTrac, they explain:

We changed the rules. We told banks they needed more reserves and that they could no longer underwrite toxic mortgages. It turns out that regulation — properly done — can help us navigate financial minefields.

Here are the results of that regulation, captured in a graph depicting the number of failed banks since 2007.Why
This Is Not Like 2008 Again | MyKCM...

In Today's Market, Listing Prices Are Like an Auction's Reserve Price

In Today's Market, Listing
Prices Are Like an Auction's Reserve Price | MyKCM

For generations, the process of buying and selling a home never really changed. A homeowner would try to estimate the market value of their house, then tack on a little extra to give themselves some negotiating room. That figure would become the listing price. Buyers would then try to determine how much less than the full price they could offer and still get the home. As a result, the listing price was generally the ceiling of the negotiation. The actual sales price would almost always be somewhat lower than what was listed. It was unthinkable to pay more than what the seller was asking.

Today is different.

The record-low supply of homes for sale coupled with very strong buyer demand is leading to a rise in bidding wars on many homes. Because of this, homes today often sell for more than the list price. In some cases, they sell for a lot more.

According to Lawrence Yun, Chief Economist at the National Association of Realtors (NAR):

For every listing there are 5.1 offers....

Current Homes for Sale
Southern Marin
City # Price Range
Belvedere 8 $3.8m - $22.5m
Mill Valley 38 $585k - $12.5m
Sausalito 11 $475k - $4.8m
Tiburon 21 $940k - $13.8m
Central & North Marin
City # Price Range
Corte Madera 7 $849k - $3.7m
Fairfax 8 $795k - $3.5m
Greenbrae 9 $628k - $3.8m
Kentfield 6 $1.6m - $18.0m
Larkspur 9 $497k - $5.3m
Novato 46 $247k - $4.3m
Ross 4 $2.8m - $7.3m
San Anselmo 12 $799k - $3.8m
San Rafael 63 $105k - $6.2m
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