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According to recent data from Fannie Mae, almost 1 in 4 people still think home prices are going to come down. If you’re one of the people worried about that, here’s what you need to know. A lot of that fear is probably coming from what you’re hearing in the media or reading online. But here’s the thing to remember. Negative news sells. That means, you may not be getting the full picture. You may only be getting the clickbait version. As Jay Thompson, a Real Estate Industry Consultant, explains: “Housing market headlines are everywhere. Many are quite sensational, ending with exclamation points or predicting impending doom for the industry. Clickbait, the sensationalizing of headlines and content, has been an issue since the dawn of the internet, and housing news is not immune to it.” Here’s a look at the data to set the record straight. Home Prices Rose the Majority of the Past Year Case-Shiller releases a report each month on the percent of monthly home price changes. If you look at their data from January 2023 through the latest numbers available, here’s what you’d see: What do you notice when you look at this graph? It depends on what color you’re more drawn to. If you look at the green, you’ll see home prices rose for the majority of the past year. But, if you’re drawn to the red, you may only focus on the two slight declines. This is what a lot of media coverage does. Since negative news sells, drawing attention to these slight dips happens often. But that loses sight of the bigger picture. Here’s what this data really says. There’s a lot more green in that graph than red. And even for the two red bars, they’re so slight, they’re practically flat. If you look at the year as a whole, home prices still rose overall. It’s perfectly normal in the housing market for home price growth to slow down in the winter. That’s because fewer people move during the holidays and at the start of the year, so there’s not as much upward pressure on home prices during that time. That’s why, even the green bars toward the end of the year show smaller price gains. The overarching story is that prices went up last year, not down. To sum all that up, the source for that data in the graph above, Case Shiller, explains it like this: “Month-over-month numbers were relatively flat, . . . However, the annual growth was more significant for both indices, rising 7.4 percent and 6.6 percent, respectively.” If one of the expert organizations tracking home price trends says the very slight dips are nothing to worry about, why be concerned? Even Case-Shiller is drawing your attention to how those were virtually flat and how home prices actually grew over the year. Bottom Line The data shows that, as a whole, home prices rose over the past year. If you have questions about what’s happening with home prices in our area, let's chat.

Some Highlights When it comes to the current housing market, there are some myths circling around right now. Some of the more common ones are that it’s better to wait for mortgage rates to fall or prices to crash. But there are others about the supply of homes for sale and down payments. Let’s connect so you have an expert to help separate fact from fiction in today’s housing market.

Over the past year or so, a lot of people have been talking about how tough it is to buy a home. And while there’s no arguing affordability is still tight, there are signs it’s starting to get a bit better and may improve even more throughout the year. Elijah de la Campa, Senior Economist at Redfin, says: “We’re slowly climbing our way out of an affordability hole, but we have a long way to go. Rates have come down from their peak and are expected to fall again by the end of the year, which should make homebuying a little more affordable and incentivize buyers to come off the sidelines.” Here’s a look at the latest data for the three biggest factors that affect home affordability: mortgage rates, home prices, and wages. 1. Mortgage Rates Mortgage rates have been volatile this year – bouncing around in the upper 6% to low 7% range. That’s still quite a bit higher than where they were a couple of years ago. But there is a sliver of good news. Despite the recent volatility, rates are still lower than they were last fall when they reached nearly 8%. On top of that, most experts still think they’ll come down some over the course of the year. A recent article from Bright MLS explains: “Expect rates to come down in the second half of 2024 but remain above 6% this year. Even a modest drop in rates will bring both more buyers and more sellers into the market.” Any drop in rates can make a difference for you. When rates go down, you can afford the home you really want more easily because your monthly payment would be lower. 2. Home Prices The second big factor to think about is home prices. Most experts project they'll keep going up this year, but at a more normal pace. That’s because there are more homes on the market this year, but still not enough for everyone who wants to buy one. The graph below shows the latest 2024 home price forecasts from seven different organizations: These forecasts are actually good news for you because it means the prices aren't likely to shoot up sky high like they did during the pandemic. That doesn’t mean they’re going to fall – they'll just rise at a slower pace. 3. Wages One factor helping affordability right now is the fact that wages are rising. The graph below uses data from the Federal Reserve to show how wages have been growing over time: Check out the blue dotted line. That shows how wages typically rise. If you look at the right side of the graph, you'll see wages are climbing even faster than normal right now. Here’s how this helps you. If your income has increased, it's easier to afford a home because you don't have to spend as big of a percentage of your paycheck on your monthly mortgage payment. Bottom Line If you stack these factors up, you’ll see mortgage rates are still projected to come down a bit later this year, home prices are going up at a more moderate pace, and wages are growing quicker than normal. Those trends are a good sign for your ability to afford a home.

If your listing has expired and your house didn’t sell, it's completely normal to experience a combination of frustration and disappointment. Understandably, you're probably wondering what might have gone wrong. Here are three questions to consider as you determine your next steps. For all these insights and more, rely on a trusted real estate agent. A great agent will offer expert advice on relisting your house with effective strategies to get it sold. Bottom Line It’s natural to feel disappointed when your listing has expired and your house didn’t sell. Let’s connect to determine what happened, and what changes you should make to get your house back on the market. Let’s connect to determine what happened, and what changes you should make to get your house back on the market. 626-653-6903 | info@thechouteam.com | www.thechouteam.com

If you've been keeping up with recent news, you may have come across reports discussing a surge in foreclosures and bankruptcies. This might be causing some concern, particularly if you're considering buying or selling a house. However, it's important to note that despite the increasing numbers, the data indicates that the housing market is not on the verge of a crisis. Foreclosure Activity Rising, but Less Than Headlines Suggest In recent years, foreclosure numbers have remained low, thanks to measures like the forbearance program and other relief options implemented in 2020 and 2021 to assist homeowners during challenging times. While there was an anticipated increase in foreclosures after the moratorium ended, it's crucial to note that this doesn't necessarily indicate trouble in the housing market. To illustrate how things have evolved since the housing crash in 2008, refer to the graph below, based on research from ATTOM, a property data provider. The graph examines properties with foreclosure filings dating back to 2005, demonstrating a decrease in foreclosures compared to the post-crash period. As you can see, foreclosure filings are inching back up to pre-pandemic numbers, but they're still way lower than when the housing market crashed in 2008. And today, the tremendous amount of equity American homeowners have in their homes can help people sell and avoid foreclosure. The Increase in Bankruptcies Isn’t Dramatic Either As you can see below, the financial trouble many industries and small businesses felt during the pandemic didn’t cause a dramatic increase in bankruptcies. Still, the number of bankruptcies has gone up slightly since last year, nearly returning to 2021 levels. But that isn’t cause for alarm. The numbers for 2021 and 2022 were lower than more typical years. That’s in part because the government provided trillions of dollars in aid to individuals and businesses during the pandemic. So, let’s instead focus on the bar for this year and compare it to the bar on the far left (2019). It shows the number of bankruptcies today is still nowhere near where it was before the pandemic. Both of these two factors are reasons why the housing market isn't in danger of crashing. Bottom Line Right now, it's crucial to understand the data. Foreclosures and bankruptcies are rising, but these leading indicators aren’t signaling trouble that would cause another crash.

Considering selling your house as a For Sale by Owner (FSBO)? Be aware that the process involves more time and expertise than meets the eye. While the prospect of handling everything independently might be tempting, it's crucial to understand the challenges you might encounter. According to a recent Bankrate article: “Selecting the right price, creating a compelling listing, marketing to potential buyers, coordinating showings, preparing paperwork: All of these are tasks that, without a real estate agent, you'll have to tackle on your own.” Here's further insight into a few of these aspects and what you might miss out on without the assistance of an agent. You May Not Price it Right Setting the right price for your house is crucial for a successful sale. Real estate agents possess the expertise to navigate the current housing market and understand the art of pricing a home competitively. Unfortunately, homeowners selling on their own often lack this essential experience, leading to two common pitfalls: overpricing or underpricing. An article from NerdWallet provides this insight: “If your home is overpriced, you run the risk of buyers not seeing the listing. . . . But price your house too low and you could end up leaving some serious money on the table. A bargain-basement price could also turn some buyers away, as they may wonder if there are any underlying problems with the house.” Avoid these risks by partnering with an agent who can ensure your house is priced at the current market value, increasing its visibility to eager buyers and making a strong first impression. You Don’t Have as Much Experience in Marketing a House In the digital age, online marketing has become a significant game-changer, particularly in the realm of selling real estate. According to a recent report from the National Association of Realtors (NAR): “Among all generations of home buyers, the first step taken in the home search process was to look online for properties.” By teaming up with a real estate agent well-versed in leveraging online marketing tools and resources, you can position your property in front of tech-savvy home seekers, significantly enhancing your chances of a successful sale. However, if you opt to sell your house independently, you may miss out on the full potential of online and social media strategies. You May Not Be Comfortable Handling All the Back-and-Forth When you embark on the journey of selling your house, you're not just searching for a buyer; you're entering a realm of negotiations. This involves coordination with various individuals, including the buyer, the buyer’s agent, the inspection company, the appraiser, and more. It's a delicate dance where each move matters, and the expertise of a real estate agent can prove invaluable in navigating these negotiations and finalizing the deal. As noted by NerdWallet: “Your listing agent will also, of course, be on your side throughout negotiations. They'll double-check paperwork that comes through, communicate with the buyer's agent and other parties to the sale, and generally stay on top of things through to closing day.” Bottom Line If you're thinking about selling your house and the idea of going it alone has crossed your mind, be sure to think through that decision carefully. Let's connect to discuss how a real estate agent has the experience needed to take all that stress off your plate. 626-653-6903 | info@thechouteam.com | www.thechouteam.com 388 E Valley Blvd UNIT 106, Alhambra, CA 91801

Key Takeaways: If you're contemplating purchasing a home this year, factor in the enduring financial benefits of homeownership, such as building home equity. Over the past 32 years, individuals who invested in homes have witnessed a nearly threefold increase in their property's value. If you're uncertain about the wisdom of buying a home, keep in mind that increasing home values have the potential to enhance your net worth over time. When you're prepared to embark on your homebuying journey, reach out for a conversation. 626-653-6903 | info@thechouteam.com | www.thechouteam.com 388 E Valley Blvd UNIT 106, Alhambra, CA 91801

The landscape of work in America has undergone significant changes, with remote work taking center stage. Experts predict that remote work will continue to be a prevalent trend, estimating that by 2025, approximately 36.2 million Americans will be working remotely. This represents a substantial 417% increase from the pre-pandemic era when there were only 7 million remote workers. For individuals looking to purchase a home, especially those engaged in full or part-time remote work, this trend holds transformative potential. It serves as a valuable solution to navigate the current challenges related to housing affordability and inventory. How Remote Work Helps with Affordability Embracing remote or hybrid work enables a shift in your approach to finding a home. With the reduced emphasis on daily commuting, the necessity of living near your office diminishes. Exploring options a bit further out in the suburbs, as opposed to the city, can expand the range of affordable choices available to you. Fannie Mae's recent study highlights this trend, stating: "Home affordability may also be a reason why we saw an increase in remote workers’ willingness to relocate or live farther away from their workplace . . ." For those contemplating a move, having such flexibility in location can enhance the likelihood of discovering a home that aligns with your budget. Collaborate with your agent to explore a broader range of areas with a lower cost of living. More Work Flexibility Means More Home Options As you expand your search to encompass more budget-friendly options, you may discover the opportunity to get more features for your investment. Given the limited supply of homes for sale, finding a property that meets all your preferences can be a challenge. Broadening your search widens the pool of available options, making it easier to locate a home that truly aligns with your lifestyle. This may include properties with more square footage, diverse architectural styles, and a broader array of neighborhood amenities that were previously beyond reach. Traditionally, proximity to the workplace was a valued perk, often accompanied by a significant price tag. However, the current dynamics have shifted. With the flexibility of remote work, you now have the freedom to choose where you want to live, eliminating the burden of lengthy daily commutes. This shift allows you to concentrate on finding an affordable home that fulfills your dream features. Bottom Line Remote work extends beyond job flexibility; it presents an opportunity to expand your horizons in your home search. Liberated from a fixed location, you have the freedom to explore all your options. Connect with us to discover how this newfound freedom can guide you to your perfect home. 626-653-6903 | info@thechouteam.com | www.thechouteam.com 388 E Valley Blvd UNIT 106, Alhambra, CA 91801

Considering selling your house and concerned about the current mortgage rates? You're not alone. Some homeowners hesitate to sell, fearing they might face higher mortgage rates on their next home. However, it's important to recognize that while rates are currently elevated, home equity is also at a high level. Here's a breakdown of what you should understand. Bankrate provides a clear explanation of what equity is and how it accumulates: “Home equity is the portion of your home that you’ve paid off and own outright. It’s the difference between what the home is worth and how much is still owed on your mortgage. As your home’s value increases over the long term and you pay down the principal on the mortgage, your equity stake grows.” In other words, equity is how much your home is worth now, minus what you still owe on your home loan. How Much Equity Do Homeowners Have Now? As for the current equity situation, it has been increasing more rapidly than one might expect. To put it into perspective, CoreLogic states: "... the average U.S. homeowner now has about $290,000 in equity." This substantial growth in equity is a result of significant increases in home prices over the past few years, accelerating the accumulation of equity. While the market is gradually stabilizing, the demand for homes still exceeds the available supply, leading to a resurgence in home prices. Data from the Federal Housing Finance Agency (FHFA), the Census, and ATTOM, a property data provider, indicates that nearly two-thirds (68.7%) of homeowners have either fully paid off their mortgages or possess at least 50% equity (refer to the chart below): That means nearly 70% of homeowners have a tremendous amount of equity right now. How Equity Helps with Your Affordability Concerns Given the current affordability challenges, the equity you've accumulated can significantly impact your decision to move. Once you sell your house, you can leverage your home equity in the following ways: Be an all-cash buyer: If you've been a long-time resident in your current home, your equity might be substantial enough to enable you to purchase a new house outright without requiring a loan. This means you can avoid concerns about mortgage rates. The National Association of Realtors (NAR) notes: "These all-cash home buyers are happily avoiding the higher mortgage interest rates." Make a larger down payment: Your equity can be utilized for your next down payment, potentially allowing you to put down a more significant amount. This approach reduces the need to borrow a substantial sum, making current interest rates less of a hurdle. As explained by Experian: "Increasing your down payment lowers your principal loan amount and, consequently, your loan-to-value ratio, which could lead to a lower interest rate offer from your lender." Bottom Line If you're thinking about moving, the equity you've built up can make a big difference, especially today. To find out how much equity you've got in your current house and how you can use it for your next home, let’s connect. 626-653-6903 | info@thechouteam.com | www.thechouteam.com 388 E Valley Blvd UNIT 106, Alhambra, CA 91801

A crucial determinant influencing the current real estate market is the quantity of homes available for sale. If you're contemplating listing your house, this presents a significant advantage, especially in a market with such low housing inventory. A well-priced house in such conditions is likely to stand out. However, there are indications that more listings are emerging. Recent data suggests an upward trend in new listings—homes newly placed on the market for sale. This development is noteworthy, and understanding its implications could be beneficial for you. More Homes Are Coming onto the Market than Usual It's a widely acknowledged fact that the spring buying season is the peak period in the housing market each year. During the first half of the year, there is a predictable surge in the number of newly listed homes as sellers prepare for the months when buyers are most active. However, as the school year begins and the holiday season approaches, the market tends to cool down, following the expected seasonal pattern. What's noteworthy is the recent data from Realtor.com, indicating an unusual increase in the number of sellers listing their houses later in the year than usual. This late peak in listings is atypical, as illustrated in the graph below, showcasing both the regular seasonal trend and the unusual surge in August. As Realtor.com explains: “While inventory continues to be in short supply, August witnessed an unusual uptick in newly listed homes compared to July, hopefully signaling a return in seller activity heading toward the fall season . . .” While this is only one month of data, it’s unusual enough to note. It’s still too early to say for sure if this trend will continue, but it’s something you’ll want to stay ahead of if it does. What This Means for You If you've been delaying the sale of your house, the current moment might be the ideal time to take action. The reason is that if the current trend of increased listings persists, delaying your decision may lead to more competition. Waiting could mean having to compete for buyers' attention with neighbors who decide to sell. Selling now allows you to be ahead of your neighbors in attracting potential buyers. Despite the rise in the number of homes entering the market, it's essential to note that the overall supply is still significantly below normal levels. The inventory deficit won't be resolved quickly. The graph below provides a visual representation of this situation, emphasizing the current opportunity available: Bottom Line Even though inventory is still low, you don’t want to wait for more competition to pop up in your neighborhood. You still have an incredible opportunity if you sell your house today. Let’s connect to explore the benefits of selling now before more homes come to the market. 626-653-6903 | info@thechouteam.com | www.thechouteam.com 388 E Valley Blvd UNIT 106, Alhambra, CA 91801

For prospective homebuyers, it's crucial to take into account the projections of housing market experts regarding future home prices and how these forecasts may impact your investment. Despite negative reports on home prices in the past year, they have outperformed expectations and are experiencing growth nationwide. According to data, experts anticipate a continued appreciation in home prices. Experts Project Ongoing Appreciation Experts project a continued appreciation in home prices over the next five years, as indicated by the latest quarterly Home Price Expectation Survey (HPES) conducted by Pulsenomics. The survey, which involved over 100 economists, investment strategists, and housing market analysts, reveals that panelists anticipate a yearly increase in home prices through 2027. This forecast, illustrated in the graph below, dismisses concerns about a potential decline in home prices. While there may be variations in local markets, the overall trend points towards a sustained rise in home prices across the country, reflecting a return to more typical home price appreciation. Additionally, the cumulative nature of home price appreciation is highlighted, emphasizing the long-term advantages of homeownership. What Does This Mean for You? After purchasing a home, the appreciation in its value contributes to the growth of your household wealth. The graph below illustrates how the value of a typical home could change over the next few years based on expert projections from the Home Price Expectation Survey (HPES). For instance, if you bought a $400,000 home at the beginning of the year and consider the HPES forecast, you might potentially accumulate over $71,000 in household wealth over the next five years. This example underscores the powerful long-term wealth-building aspect of homeownership, making it a significant financial choice. Bottom Line According to the experts, home prices are expected to grow over the next five years at a more normal pace. If you’re ready to become a homeowner, know that buying today can set you up for long-term success as home values (and your own net worth) grow. Let’s connect to start the homebuying process today. 626-653-6903 | info@thechouteam.com | www.thechouteam.com 388 E Valley Blvd UNIT 106, Alhambra, CA 91801

Reaching retirement is a significant milestone in life, bringing with it a lot of change and new opportunities. As the door to this exciting chapter opens, one thing you may be considering is selling your house and finding a home better suited for your evolving needs. Fortunately, you may be in a better position to make a move than you realize. Here are a few reasons why. Consider How Long You’ve Been in Your Home From 1985 to 2009, homeowners typically lived in their homes for about six years. However, the National Association of Realtors (NAR) reports that the average home tenure has increased since 2010, now standing at just over nine years (refer to the graph below): This implies that in recent years, a substantial number of homeowners have resided in their houses for even longer durations. Living in a home for such an extended period naturally exposes you to changes and milestones in your life. With these life developments, your needs may evolve. If your current home no longer aligns with these evolving needs, there could be more suitable options awaiting your consideration. Consider the Equity You’ve Gained Additionally, if you've been residing in your home for an extended period, it's probable that you've accumulated significant equity, providing financial support for your next step. This is due to the equity growth as you pay off your loan and experience appreciation in home prices. The longer the duration of your homeownership, the greater the potential equity buildup, as demonstrated by data from the Federal Housing Finance Agency (FHFA) in the graph below: Although home prices can vary by location, the national average indicates that homeowners who have been in their homes for five years have witnessed nearly a 60% increase in its value. For those who have owned their homes for 30 years, the average appreciation is almost triple. Whether you're considering downsizing, relocating to a dream destination, or moving closer to friends and family, the equity you've built can be a valuable resource. A trusted real estate agent can assist you in selling your current home and guide you in finding a new home that aligns with your current lifestyle. In conclusion, as you prepare for retirement, let's connect to determine the equity you've accumulated over the years and strategize how to leverage it for the purchase of a home that suits your evolving needs. 626-653-6903 | info@thechouteam.com | www.thechouteam.com 388 E Valley Blvd UNIT 106, Alhambra, CA 91801