You could have probably guessed that, as a realtor, I take pride in my own home! I recently had one of my bathrooms renovated and I can’t help but share the results with you. I am so thrilled about how it turned out! Check out some “before” pictures here:
And the “after” video here:
This was done by Wolf Construction, it took about two weeks. I hired for 1 hour one of my stagers designers who has an Architecture degree from Cal. She recommended and sourced some fixtures and move the shower, I had been trying to configure it differently, but did not think about putting it where the window was. I slapped my hand to my head because I have seen so many homes with a shower and a window. My home is on a slab so they had dig into the slap to change the drains into the sewer for the shower and toilet. Of course this add another $3000 more to my budget, but I am so happy I did. The old bathroom was that way since we bought it in 1999, I painted it a bright yellow because it was so depressing. I had sourced and purchased the materials from General Plumbing, Granite Expo for the vanity, Floor Decor for all the tile and Wayfair. The mirror was a Christmas gift from my friend Veronica. It ended up being about $8k more than anticipated. The glass shower from Valley Glass on Boulevard was double what it would have been a year before, but still cheaper by a couple $1000 than other competitors. Overall I am very happy, if you need any referrals or information give me a call 925.899.7123. Next project Kitchen, just need to save some money!
Watch the video below to get a Better Homes and Gardens monthly market update for March 2023!
I update my website with them each month with Concord, Martinez and Walnut Creek. Just go to Kristinlanham.com click on Walnut Creek Lifestyle Blogs and then videos. The market overall is heating up with multiple offers. Prices are still down from 2022, however we have very little inventory. The last couple of offers I have written each had 4 offers and went over asking. Give me a call if you want to chat about the market!
Take a look at this blog from Jay Vorhees at JVM Lending. It’s an interesting discussion about the Fed, interest rates, and how they both affect the housing market. I’ve added my two cents at the end, like usual!
The Fed raised “rates” last year at the fastest pace in history! There were 7 “rate” increases in total:
0.25% in March
0.50% in May
0.75% in June
0.75% in July
0.75% in September
0.75% in November
0.50% in December
0.25% in February
But, despite increases totaling 1.25% over November and December, 30-year mortgage rates fell almost 1.5% since January. You can see that the same thing happened in July; 30-year mortgage rates fell sharply after the large 0.75% increase in the Fed Funds Rate. Rates fell recently, not only in the face of two large increases in the Fed Funds Rate but also in the face of a lot of Fed bluster about more rate increases to come. So why, since February, have rates now increased again, you ask? They rose largely in response to strong retail sales and employment data, and the Fed’s comments in regard to that data.
As a reminder, the Fed primarily influences the short end of the yield curve, as it only controls the “Fed Funds Rate” or the overnight rate that banks charge each other to meet reserve requirements.
Long-term rates like the 10 Year Treasury and 30-year fixed-rate mortgages often move independently of the Fed, no matter what the Fed says or does. The 10-Year Treasury, for example, dropped as low as 3.37% today after hitting a high of 4.25% in October. And, as I mentioned above, mortgage rates have dropped almost 1.5% since October.
This is despite all of the predictions we saw and heard last year about mortgage rates hitting 8% to 10% this year. All of those people were listening to the Fed and NOT listening to people like Barry Habib and Jeff Snider who follow the data instead of the bluster. Mortgage rates respond to other factors, such as inflation and economic outlooks.
If inflation is coming down and the economy seems to be weakening, long-term rates will usually fall – irrespective of the Fed’s bluster. We all might all be wise to listen to the data guys and not to the Fed watchers. And, once again, the data guys, who have been correct all along, are predicting more rate decreases to come. Barry Habib in particular is now telling us that May 10th will be the “big day” – when we see a major drop in rates because of the way inflation data and year-over-year comparisons are shaking out.
KRISTIN’S TAKE: How I see this affecting buyers and sellers:
Sellers, you have lost equity from 2022, but overall values are higher than 2021. Price your open for today’s values, not last year’s. Houses that are priced accurately and are move-in ready, show well and are getting multiple offers. It may still sell close to list price, but it isn’t sitting for months and ultimately selling for less.
Buyers, consider a 2/1 rate buy-down paid by the seller to get you into the home with a lower rate for the next two years. If you believe rates will fall, then you can refinance; most lenders are offering 2-3 year free refi. If you wait until the rates go down, we will be back to multiple offers with no contingencies. I just spoke with an agent in Fremont who had a 1322 sq, ft home in a nice neighborhood price around $1.2M, it was remodeled, not a flip but had $8k+ of section 1 and some plumbing repairs. She had 60 offers and it was going in the $1.5M range. We still have a housing shortage.
This townhome (built recently, in 2016) enticed my clients, Brian & Hae, to make an offer. They moved from the East Coast last year and got caught up in the crazy late 2021/early 2022 storm when multiple offers were the norm and prices were always going up. At that time, they ended up renting.
The price of this townhome was originally listed at $899,950 and proceeded to be marked down to $799,950 over the next 52 days. The sellers had bought it the previous year but decided to relocate to Elk Grove. We ended up offering $815,000 with a credit of $15,000 for a 2-1 rate buy-down.
This was the discussion we had around buying: December was a great time to buy because there was no competition and I expected buyers to come out in January (since rates had decreased from the October high). Many lenders and economists anticipate a recession that will cause rates to drop more. If rates continue to decline, the likelihood of multiple offers increases. These buyers were savvy; they got into a home at a good time, did the buy-down for two years, and if rates go down during that time, they can refinance and not have to compete to get into a home.
In January, we have already seen a huge uptick in mortgage applications. We still have a housing shortage and are starting to see multiple offers on well-priced homes and even 14-day closes. You can never time the market perfectly, and owning a home over time will always trump paying somebody else’s mortgage.
Also, it’s important to listen to your agent, especially seasoned ones who pay attention to the market and have seen an array of ups and downs. Sometimes we really do know what we are talking about!
This townhome (built recently, in 2016) enticed my clients, Brian & Hae, to make an offer. They moved from the East Coast last year and got caught up in the crazy late 2021/early 2022 storm when multiple offers were the norm and prices were always going up. At that time, they ended up renting.
The price of this townhome was originally listed at $899,950 and proceeded to be marked down to $799,950 over the next 52 days. The sellers had bought it the previous year but decided to relocate to Elk Grove. We ended up offering $815,000 with a credit of $15,000 for a 2-1 rate buy-down.
This was the discussion we had around buying: December was a great time to buy because there was no competition and I expected buyers to come out in January (since rates had decreased from the October high). Many lenders and economists anticipate a recession that will cause rates to drop more. If rates continue to decline, the likelihood of multiple offers increases. These buyers were savvy; they got into a home at a good time, did the buy-down for two years, and if rates go down during that time, they can refinance and not have to compete to get into a home.
In January, we have already seen a huge uptick in mortgage applications. We still have a housing shortage and are starting to see multiple offers on well-priced homes and even 14-day closes. You can never time the market perfectly, and owning a home over time will always trump paying somebody else’s mortgage.
Also, it’s important to listen to your agent, especially seasoned ones who pay attention to the market and have seen an array of ups and downs. Sometimes we really do know what we are talking about!
If buying or selling a home is part of your dream for 2023, it’s essential for you to understand today’s housing market, define your goals, and work with industry experts to bring your homeownership vision for the year into focus. In the last year, high inflation had a big impact on the economy, the housing market, and your wallet (most likely). That’s why it’s critical to have a clear understanding of not just the market today, but what you want out of it when you buy or sell.
Here are three questions to consider:
What is motivating you? You’re dreaming about making a move for a reason – what is it? No matter what’s happening in the market, there are still many compelling reasons to buy a home today. Your needs may have changed in a way your current house can’t address, or you could be ready to step into homeownership for the first time and have a space that’s truly your own.
What does your next home look like? You know you want to move, but how would you describe your dream home? The available supply of homes for sale has grown, and that could mean more options to choose from when you buy. The better you understand what’s essential and where you can be flexible, the easier it can be to find the home that’s right for you.
How ready are you to buy? Getting clear on your budget and savings is essential before you get too far into the process. Working with an experienced lender early is the best way to make sure you’re in a good position to buy. This could include planning how much to save for a down payment, getting pre-approved for a home loan, and assessing your current home equity if your move involves selling your existing house.
Buying or selling a home is a process that takes expertise to navigate. If that feels a bit overwhelming, know you aren’t alone. I can bridge that gap and give you the best advice and information about today’s market and guide you through every step of the way!
Explore the possibilities at 433 Sutcliffe Place in Walnut Creek! This meticulous traditional Northgate home is meant to be enjoyed and to entertain. Step down into a formal living room with vaulted wood ceilings, and a formal dining area with a large, light-filled window to gaze into the backyard.
The eat-in kitchen was updated in 2006 with stone countertops, a bay window, a sub-zero refrigerator, and a gas cooktop. The kitchen is next to the family room with french doors to the back patio. A bedroom or office, full bathroom, and laundry room complete the downstairs.
Four bedrooms are upstairs with a spacious and updated primary bathroom that includes a walk-in closet. The backyard highlights include a putting green, pool, pond with waterfall, and spacious patio seating with a built-in grill (natural gas is piped in).
The home includes owned solar, too. There is a large potting shed on the side yard with electricity, and garden boxes in which you can grow a bountiful vegetable garden. During the spring and summer, the backyard is blooming with flowers. Imagine all the gatherings you can have and the memories you can make!
My friend Jay Vorhees at JVM Lending wrote a blog about rent vs. buy analyses last fall that I think is still applicable to this current market. I’ve shared a shortened version of Jay’s post below, with my own two cents at the end. Let me know what you think!
Rent vs. buy analyses are often ridiculously misleading. A typical rent vs. buy calculator like Freddie Mac’s will look at the total cost of renting (including renter’s insurance) over a period of time against the total cost of owning a home over the same period of time (and accounting for closing costs, payments, appreciation, maintenance, etc.).
The analyses, however, are too “financial” and objective, and here are just a few of the things they miss:
Forced Savings/Housing = Nest Egg! Housing payments are very effective “forced savings plans” because missed payments will destroy credit. Each payment is both paying down a loan and paying off an asset that will appreciate over time.
Refinance Opportunities. There is a high chance of being able to refi into a lower rate, which rent vs. buy analyses never account for.
Stable Housing Payment. Rents always go up, but housing payments are fixed. This is important especially now with rent skyrocketing in many places.
Equity for Emergencies. Homeowners eventually build up equity (no matter what happens in the market) that can be tapped into for emergency needs like tuition, home repairs, medical bills, or temporary help if there is a job loss.
Pride of Ownership. Young people who have recently bought homes love their homes and turn them into showplaces for their own enjoyment and for entertaining friends and family.
Freedom. This is the most significant missed item. Homeowners really appreciate the freedom to renovate their homes or just do whatever the heck they want, really.
Kristin’s take: I am a firm believer in paying yourself instead of paying “the man” (like, somebody else’s mortgage for example). Of course, there are people who might move in a couple of years, just starting out, etc. where renting makes more sense. However, if you are young and start buying real estate and continue to buy investments over time, it will set you up 30 years from now!
The news these days is all about doom and gloom. There is a saying in journalism, “if it bleeds, it leads.” That means the drama, the controversy, the doom and gloom…it sells clicks, papers, and TV audiences. As a result, these are the statistics that most people believe.
However, our current market is nothing like the 2008 meltdown. Despite current tech layoffs, there is still a robust job market and a housing shortage. After many Fed rate increases (and possibly a few more to come), rates are starting to drop.
Many economists believe we are headed for a recession, even though, by the definition of a recession (two months of a decline in GDP), we were already in one. Because of the strong job market and being in an election year, the Fed said we were not in a recession, despite the GDP decline.
Typically, in a recession, mortgage rates drop. If we start to see lower rates, buyers will be back in the housing market and the likelihood of multiple offers and prices rising becomes high. So, for those buyers currently on the fence, it might be a wise move to get into a home now and negotiate a seller credit for a 2/1 or 3/2/1 rate buy-down. If rates drop in the next 2-3 years, homeowners can refinance into a fixed lower rate and not be in a bidding war trying to buy a home.
I just got a buyer into a home with the 2/1 buy-down, giving them a first-year rate in the 4% range. It will go up a bit more in the second year, but still lower than current rates. If they choose to do a refinance before those two years are up, the remaining unused buy-down money can be used towards their mortgage or refinance. As a final side note, many mortgage companies are offering free refinancing in the next 2-3 years!
Terri, aka Theresa, moved up from Southern California with an IKEA job transfer. We connected on a call and she wanted to know if I was from New York, because I talk kind of fast. She is from New York, but I am born in San Francisco, and raised in Nevada – what a funny way to start our time together!
Terri knew she wanted to be in The Keys in Walnut Creek. She wanted a safe environment as her top priority, which that area provides. However, there was very little on the market as we started our hunt during the holiday season. I asked if she was interested in Rossmoor, but she said she was not interested in a senior community.
Then, a long-time friend came out to visit while she was house-hunting. She coaxed Terri into checking out Rossmoor, and she ended up loving the outdoor space and how peaceful and safe it felt there. We ended up looking at a handful of places in the area, but many needed work. Then, 1708 Golden Rain, Unit 1, dropped its price.
The minute we walked in, Terri said, “This is it.” It is a beautiful 2-bedroom, 2-bathroom upper Monterrey unit with views of the hills, lots of greenery, and light from the enclosed balcony. She is very happy – and so is her cat, who has a nice view perched from his cat condo! A happy start to the year!
