Case Team - Corcoran Icon Properties

10/04/2024

If Something Cannot Go on Forever;
The completion of this economic law is; ‘If something cannot go on forever, it will stop.’ This quote is attributed to economist Herbert Stein when applying it to the USA’s balance of payments deficits in the 1980s and later to the debate on government healthcare in the 1990s.
It also applies to the real estate condition today. Claims are now being made by many ’knowledgeable’ people in today’s business environment and others that first time buyers will NEVER (caps intended to catch your eye) be able to purchase a home. It is true that the purchase and sale of real estate is more difficult today in the face of higher interest rates and continuing high prices. As I write this, there has been a reduction in mortgage interest rates and a slight reduction in prices of existing homes in many areas. Continuing high insurance rates, some companies not accepting new policies, tax rates also increasing in some areas, energy prices also going up, and a potential slowing of the economy looming make things look fairly dire.
The quote above remains true. While these things cannot go on forever, they will stop. When that is cannot be predicted.
Once the negative clouds of our thinking clear, we may find some item we can focus on. Mortgage interest rates appear to be reducing toward the long-term rates we have experienced for a long time. The days of the 3% mortgage rate are no long in play, but it is reasonable to thin they may go to the high 4% to low 5% in the foreseeable future. This will be helpful as rates continue to slide as more people are given to purchase a home. Of course, more buyers will potentially impact home prices in a way that are not helpful.
Home prices are also falling in a lesser way. Many people complain that there are no home on market today. The listing services are not showing a true lack of inventory today. However, there is likely shortage of homes on market in prices ranges that the current home buyers can afford. This is a time where buyers, using a seasoned agent can has great negotiation skills will help in an immense way in closing a fair deal for both parties.
Additional home costs, all part of the current inflation levels, will probably be reduced over time.
Currently, the largest obstacle in solving this situation is the lack of new available housing. Building a home in today’s economy is particularly difficult. Aside from the cost of land, labor, and materials, there are sometimes crippling costs of zoning, permits, and other government obstacles. When resistance to any building in any area, the delays also add significant costs. All of the costs add enough to the total bill that and economic profit cannot be made.
If you are thinking about the purchase or sale of your property, please contact us so that we can discuss all of the items that are important to you. John can be reached at 512-772-6293 (TX Lic #772888), 925-382-9754 Diana (CA Lic #312786) or via email at [email protected]

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09/20/2024

Interest rates are now approaching or under 6.00%! Historically, this level is not particularly high although when looking at prices of homes for sale, the monthly payment may be difficult to manage.
A few things to consider:
1) Over time, it may be reasonable that your income will increase thus making the home payments less painful
2) Interest rates may continue do go lower and allow you to refinance your loan.
3) You may be able to deduct your mortgage interest from your federal income tax
4) It is like the you home will add to its value over time, providing equity that you cannot get whil leasing a home.

These are real items to think about right now. Give us a call or respond to us via email.

[email protected] Diana 925-382-9754 John 512-772-6293

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09/18/2024

Things May Be Changing! (This Time for the Good!)

Up until the end of July, it was difficult to find anyone that thought that home affordability was ever to be available again. This was also heard during the 2008-2010 real estate crash when far too many people lost their homes for several reasons. Up until the end of July, prices were high and remaining so, mortgage interest rates were also high, availability of properties for sale was terribly low,…..or so we have been told. People looking for homes of any type had given up the search and attitude were. This may still be what many people feel today.
Like a tornado ripping across the fields, several things have changed and in a very big way.
Inventories of existing homes for sale have reached numbers that have not seen these levels since late 2020.
Interest rates overall have decreased dramatically starting last Friday (August 2) and continue to show weakness.
The diatribe of home affordability has been quieted if not completely silenced.
So how should a prospective home buyer react? Sitting on the sidelines is probably not the correct thing to do. What follows should provide guidance for many. If this doesn’t apply to you, give me a call at 512-772-6293 so we can discuss some new possibilities for your acquisition of a new home.
First, update your credit approval with your mortgage loan officer. Even if you have one, updates now may save you from scrambling for it when things get busy.
Contact your realtor and discuss with them your needs and requirements. You may have already done this but during the searches of the past, things may have changed or been forgotten.
Once things are arranged begin searching for your home with an attitude of success. Know what features you absolutely need and those that would be nice but not essential; you could always add them later.
Retain this essential piece of information. Perfect is the enemy of good. Do not walk away or over shop for your new home. If it is nice for you, it may also be nice for someone else that has the ability to pull the trigger quickly. Delays in making offers of homes may be the most significant reason for not acceptance of your offer.
The recent but significant change in the market may last for a while or maybe not. This may be the most significant development in the past 4 years. I hope you can benefit from it!

09/17/2024

WE’RE BACK!

After handling the affairs of the passing of our eldest son, Justin, we are back full time in helping our clients. Things have changed, however.
We are now based in Texas but this allows us to help our clients nationwide. Keep an eye open for our postings on this site and let us know what you think.
We are looking forward to seeing you. Contact us at [email protected] or by phone at 925-382-9754 or 512-772-6293.

11/03/2023

November News - Let’s Look at the Numbers!
Starting this short article, I feel that I must state the obvious. Home prices are up and continuing to be expensive even though many people are being prices out of the market. To this point, home sellers have not yet been convinced that prices might be out of line with the state of the economy. Home Buyers are fighting the condition of what appears to be mortgage interest rates that are excessive, especially given the cost of day-to-day expenses and the pocketbook is stretched to the limit. The general feeling is that there may be no way out of the conditions we are currently experiencing these days.
Many of us remember the real estate crash of 2008. As we neared the first bottom of the market (there were 2 downward spikes, the 2nd in 2010) the feeling was similar. People were selling at whatever price they could get as the deceleration of the decline appeared to be non-stop and rapid. ‘Experts’ were advising that people should walk away from their obligation as the prices were heading to land value of less. Despite all the ‘help’ financial institutions were offering, people ran away from housing. At the time, there were plenty of homes on market and moving to a rental seems to be the smart thing to do. Sadly, even people who had owned homes for over 20 years were part of the panic and also lost their homes, often moving out of fear rather than good sense. These were scary times and lasted for a much longer period than they should have.
Of course, the market stabilized and today prices are now much higher than they were during the 2006-7 hot market. Much of the heat was applied by government forces. No income and stated income loans were easy to get, and the interest rates were less (6 to 7%) than the appreciation of price levels of the homes. People stood in lines, took chances on lottery schemes to buy homes not yet built, ‘investors’ went to seminars to learn how they could learn to flip homes that were not yet even built.
But that is not today. The markets are very different. I recommend that you ignore the commercials, advice from ‘experts’ that brag on their systems that could get you a home or sell your home, often with guarantees that hold no water.
HOMEBUYERS! Here is the truth. Mortgage interest rates are high. However, the current rates hovering around 8% will not last forever; but they may go higher. They also are not forever. Using interest rates as an excuse is like standing on the pyre and complaining about the cold. There are always other options to explore, and the markets will adapt to find a comfortable place for you to be.
HOMESELLERS! Prices have held on for an extended period. This also will not last forever. If you are staying because you do not want to trade your 3% mortgage interest rate for one that is higher. You need to look at other options that consider the entire impact of a sale and purchase of your home. Moving today really is not much more difficult than any other time once you have set up a plan. It is still a difficult thing to do.
HOMEBUYERS AND HOMESELLERS! Interest rates should not be the only consideration that determines your move. There are dozens of reasons that drive your move, and they all need to be considered. Another fact that Is very important. It will be a very long time before we see a 3 or 4% mortgage interest rate again. It took 30 years of time for the economy to see it. I expect that we will not see it for at least another. Finally, markets correct themselves and the real estate market is no different. If governments try to ‘fix’ them, just look at what they have done today.

11/14/2022

Lunch at the Salt Lick

11/12/2022

Consider this and give us a call 925-382-9771.

11/09/2022

Our new guard dog!

11/04/2022

Things have changed a lot in the past 3 months. Give us a call for the details 925-382-9771