Preview Orange County Real Estate Blog - The Aaronson Group

Soaring Home Prices May Slow, but Burst Housing Bubble is Unlikely

Home prices are climbing similarly to pre-2008's Great Recession.  Today's bidding wars have caused many  home buyers to pay cash for homes or have to out bid competition by hundreds of thousands of dollars.  However, the U.S. housing market is not destined to repeat the mid 2000's bubble that ravaged the the U.S. Economy.  

Today's situation is different that 2008.  Right now there is a shortage of inventory and home builders are not building a lot of new homes.  Before the great recession, there was a surplus of new builds, now there are not.    When there is a housing shortage, the prices won't decline.

The housing market is self-correcting.  Home sales have been in decline the last few months.  Instead of paying what they view as…

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Avoid These Things after Applying for a Mortgage [Infographic]

To help make sure you still qualify for your loan at the closing table, here are a few key things to make sure you avoid after applying for a mortgage.

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3 Charts That Show We Are Not in a Housing Bubble

Home prices are delivering double-digit increases, so the concern is great if we are headed into a housing bubble, like the one in 2006. However, market data indicates that the housing market is steady and is not headed for a housing bubble.   

1. The housing market is not driven by high-risk mortgage loans. 

The availability of mortgage money is based on the Mortgage Credit Availability Index (MCAI) from the Mortgage Bankers’ Association.  In 2006, nearly everyone could qualify for a mortgage loan. The higher the number, the easier it is to access receiving a loan.  The index was 869 in 2006.  Today, it is at 130.   As an example of the difference between today and 2006, let’s look at the volume of mortgages that originated when a buyer had…

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What is on the Horizon in Real Estate for the Second Half of the Year?

2021 Housing Market had a strong first half due to low-interest mortgage rates and increased home values.  So what is in stock for the second half of the year?

Mortgage Rates will slightly increase but will stay low 

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.”

Rates remaining low will give purchase power for homebuyers.    

Freddie Mac states, "While higher mortgage rates will help slow the pace of home sales and moderate house price growth, we expect overall housing market activity will remain…

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Financial Fundamentals for Homebuyers [Infographic]

From saving for your down payment to getting pre-approved for a mortgage, you’ll want to make sure you keep your financial plan on track when buying a home. Here are a few key steps to take before you even start to look at properties.

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Housing Wealth: The Missing Piece of the Affordability Equation

Today, the real estate market is soaring.  The values of residential homes are rising, and that’s fantastic for homeowners. In 2020, there was a double-digit increase in home values – a trend also occurring in 2021.

However, due to skyrocketing prices, some are questioning the affordability in this current housing market. Experts in the field of Real Estate emphasize that homes today are less affordable now than they were last year. Black Knight, a leading provider of data and analytics across the homeownership life cycle, reported on the issue.

The historical averages of the national payment to income ratio, defined as “the share of the median income needed to make the monthly payments on the median-priced home.” The study reveals:

• The…

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Home Is Where the Heart Is [Infographic]

There’s no doubt about it: homeowners love their homes. Here are a few stats that show just how important our homes have become over the past year.

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Key Homebuying Terms to Know [Infographic]

The homebuying process can be filled with jargon potential buyers may be unfamiliar with. Here's a list of some of the most common terms you will come across.

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Should I Buy Now or Wait? [INFOGRAPHIC]

If you’re thinking that waiting a year or two to purchase a home might mean you’ll save some money, think again.  Mortgage interest rates are currently very low, but experts across the board are forecasting increases in both home prices and interest rates.

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Where Do Experts Say The Market is Heading?

As we head into the Summer of 2021, many wonder if big changes are coming to the housing market.  Here are what some experts have to say about the main factors that will push the industry and the economy ahead in the months to come.

realtor.com

“. . . homes continue to sell quickly in what’s normally the fastest-moving time of the year. This is in contrast with 2020 when homes sold slower in the spring and fastest in September and October. While we expect fall to be competitive, this year’s seasonal pattern is likely to be more normal, with homes selling fastest from roughly now until mid-summer.”

National Association of Realtors (NAR)

“Sellers who have been hesitant to list homes as part of their personal health safety…

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