If you are looking for reclaimed lumber, check these guys out (video first played here in 2015):
Thanks to KCM for providing this report:
According to the latest report from Black Knight, Inc., a well-respected provider of data and analytics for mortgage companies, 6.48 million households have entered a forbearance plan as a result of financial concerns brought on by the COVID-19 pandemic.
Here’s where these homeowners stand right now:
- 2,543,000 (39%) are current on their payments and have left the program.
- 625,000 (9%) have paid off their mortgages.
- 434,000 (7%) have negotiated a repayment plan and have left the program.
- 2,254,000 (35%) have extended their original forbearance plan.
- 512,000 (8%) are still in their original forbearance plan.
- 116,000 (2%) have left the program and are still behind on payments.
This shows that of the almost 3.72 million homeowners who have left the program, only 116,000 (2%) exited while they were still behind on their payments. There are still 2.77 million borrowers in a forbearance program. No one knows for sure how many of those will become foreclosures. There are, however, three major reasons why most experts believe there will not be a tsunami of foreclosures as we saw during the housing crash over a decade ago:
- Almost 30% of borrowers in forbearance are still current on their mortgage payments.
- Banks likely don’t want to repeat the mistakes of 2008-2012 when they put large numbers of foreclosures on their books. This time, many will instead negotiate a modification plan with the borrower, which will enable households to maintain ownership of the home.
- With the significant equity homeowners have today, most can sell their home, rather than get foreclosed.
Will there be foreclosures coming to the market? Yes. There are hundreds of thousands of foreclosures in this country each year. People experience economic hardships, and in some cases, are not able to meet their mortgage obligations.
Here’s the breakdown of new foreclosures over the last three years, prior to the pandemic:
- 2017: 314,220
- 2018: 279,040
- 2019: 277,520
Through the first three quarters of 2020 (the latest data available), there were only 114,780 new foreclosures. If 10% of those currently in forbearance go to foreclosure, 275,000 foreclosures would be added to the market in 2021. That would be an average year as the numbers above show.Link to KCM Article
We are only able to sell what’s for sale, so the direction of the frenzy depends on inventory.
If we get a surge of inventory, then sales will increase.
If we don’t get a surge of inventory, then bidding wars and prices go crazy.
We saw the differences here where the inventory shortage under $1,500,000 is particularly acute.
When looking at inventory by area, it’s the same thing. We are comparing to non-Covid years and this month isn’t done yet, but you can see below that the number of houses coming on the market is well under what it’s been in the past:
January Total SFR Listings By Area
We have 123 listings so far this month and we might get up to 150 by Sunday – but even that will be 25% under last year’s count at a time when we probably have twice as many buyers in the hunt.
Another wild bidding war!
This one was in Del Mar, but on the far north end off San Dieguito Dr. which isn’t the prime Del Mar village area (though close physically). Usually it’s the creampuffs that attract all the interest and offers, but in this case it was a regular old fixer that listed for $1,150,000.
It closed for $1,500,000, which was $350,000 over list!
It was in June, 2011 that Ben Bernanke said at a live press conference: We have told the banks to handle their REOs…..long pause………..in an economy-supportive way. Oops. What he was GOING to say was “we have told the banks not to flood the market with REOs.”
Since then, foreclosures dried up, mortgage rates came down, and the local home prices have gone up steadily. Today’s pricing curve looks similar to 2013 – if it repeats, then prices should flatten out this summer. But who knows – there is heavy demand, and few sellers have been lured by these prices!
San Diego Non-Seasonally-Adjusted CSI changes:
Phoenix, Seattle and San Diego continued to show the strongest price appreciation of all the major markets in November. Phoenix led the way with a 13.8% year-over-year price increase, followed by Seattle with a 12.7% increase and San Diego with a 12.3% increase. All 19 cities reported higher price increases in the year ending November versus the end of October.
“Our 2021 outlook expects an eventual moderation to price gains as home construction ramps up and the widespread availability of COVID vaccines bring more flexible sellers back to the housing market, but it will be some time before these changes bring relief,” said Danielle Hale, chief economist with realtor.com.
This is on the east side of the street so the view is through the windows in front. The staging was particularly effective here; the list price was $2,199,000 and it closed for $2,475,000 cash (+13% over list):
Zillow Survey Predicts Austin will be the Nation’s Hottest Housing Market, Leading a Sunbelt Surge
More affordable metros are replacing expensive coastal areas as top drivers of home value growth
— A panel of economists and real estate experts expect Austin to outperform the national market by the largest margin, followed by Phoenix, Nashville, Tampa and Denver
— Expensive coastal markets New York, San Francisco and Los Angeles are most likely to underperform, though Zillow expects growth in every market
— Key tailwinds include an improved economic outlook underpinned by progress on coronavirus vaccines, while affordability and available supply are potential drags
SEATTLE, Jan. 19, 2021 /PRNewswire/ — Austin will be America’s hottest housing market in 2021, leading a list of mostly Sun Belt cities expected to continue heating up faster than the nation’s large coastal markets, according to a new Zillow® survey of experts.
The booming Texas destination heads a lineup of sunny and relatively affordable metro areas — Phoenix, Nashville, Tampa and Denver — that are most likely to outperform the nation in home value growth, according to a panel of economists and real estate experts recently surveyed by Zillow.
The Zillow Home Price Expectations Survey, sponsored by Zillow and conducted quarterly by Pulsenomics LLC, asks a large panel of economists, investment strategists and real estate experts for their predictions about the U.S. housing market. The Q4 survey also asked about their expectations for 2021 home value growth in 20 large markets compared to the nation.
An overwhelming 84% of those surveyed said Austin values would out-perform the national average, compared to just 9% who believe it would fare worse. Phoenix came in second with 69%, followed by Nashville (67%), Tampa (60%), and Denver (56%). Page views on Zillow for-sale listings in Austin by out-of-town searchers were up 87% in November compared to 2019.
The top-five metros are all affordable options compared to expensive coastal areas that have led home appreciation ranks in recent years, providing relative value for Millennials looking to take advantage of low mortgage rates to buy their first home. The top five are also, for the most part, sunny locales. Four of the five counties holding the largest cities in these MSAs all rank in the top-third of counties in the contiguous U.S. for average daily sunlight, according to NASA data analysed in The Washington Post. Davidson County, home to Nashville, ranked just below the midline.
“The pandemic has not upended the housing market so much as accelerated trends we saw coming into 2020,” said Zillow senior economist Jeff Tucker. “These Sun Belt destinations are migration magnets thanks to relatively affordable, family-sized homes, booming economies and sunny weather. Record-low mortgage rates and the increased demand for living space, coupled with a surge of Millennials buying their first homes, will keep the pressure on home prices there for the foreseeable future.”
An improved economic outlook thanks to COVID-19 vaccine roll-outs and better treatments was pegged as the most likely tailwind for the housing market in 2021, followed by sustained strength in first-time home buying among Millennials. It proved a powerful demand driver in 2020 and is expected to persist for years to come.Link to Zillow Article
We’ve only had 193 new listings between La Jolla and Carlsbad this year, which is still running about 20% behind the pre-Covid count last January. Undoubtedly, there are still sellers that are wary of the risk of opening their home to strangers, but it could also be the backup in lower-priced but desirable areas to which many Californians are moving.
From a realtor in Austin, Texas:
Here on the ground, I can confirm the extreme buyer demand in Austin. Most properties are currently seeing 30-60+ offers with many homes selling $100,000+ above the list price in just 24-48 hours. Inventory is at near zero levels in many neighborhoods and suburbs.
For those potential sellers who are nervous about allowing Covid into your house, here’s my proposition. Stay in a hotel for the weekend, and I’ll sell your house by Sunday night and have the scrub-down crew sanitize before you come back. As for where to move…..go where everyone else isn’t!
A local fire this week showed how flammable a palm tree can be when not trimmed:
Cal Fire, Carlsbad FD & Police doing another great job – no homes damaged, and no injuries. Two other fires were started nearby on the same day, and a homeless woman was arrested for arson.
— City of Carlsbad (@carlsbadcagov) January 20, 2021
Click here for more photos and video:
When it comes to the home and design trends experts anticipate prevailing in the year ahead, the overarching theme will be options in abundance.
While homeowners continue to want their outdoor spaces that offer a safe retreat, that appeal has shifted into other parts of the home, coupling comfort with function. In other words, homeowners want amenities for work and leisure, and they plan to enjoy long them long after the pandemic.
Here are 10 trends to watch in 2021.
Leave it to the trendsetters to develop a solution: two kitchens in one. Mick De Giulio of de Giulio Kitchen Design in Chicago calls it a “layered kitchen” with separate work and living zones. Cheryl Kees Clendenon of In Detail Interiors in Pensacola, Fla., refers to it as a “prep and show kitchen.” Granted, extra space and renovation funds are needed to complete the concept.
The work area is typically in the back of the kitchen, hidden by a door or wall. This is where the serious food prep and cleanup takes place. The area may be part of a large laundry room or storage room that can be converted into this hidden cooking zone. It may also be used by caterers (when entertaining returns with gusto), Clendenon says.
In contrast, the living or show kitchen at the front remains part of the open floorplan. It’s designed to display culinary delights in an uncluttered way. This is where a roasted turkey comes out of the oven before being carried to the back-work area for carving while a buffet is set out. Some homeowners may designate one kitchen for special needs, such as gluten-free prep, a request from one of Clendenon’s clients. The back-kitchen space could also be used as a beverage center with a coffee station, and include refrigerated drawers or a wine cooler, De Giulio says.