Investing in Real Estate – The Real Estate Beat

Why Is Housing Inventory So Low? – Shared Article

One question that’s top of mind if you’re thinking about making a move today is: Why is it so hard to find a house to buy? And while it may be tempting to wait it out until you have more options, that’s probably not the best strategy. Here’s why

There aren’t enough homes available for sale, but that shortage isn’t just a today problem. It’s been a challenge for years. Let’s take a look at some of the long-term and short-term factors that have contributed to this limited supply.

Underbuilding Is a Long-Standing Problem

One of the big reasons inventory is low is because builders haven’t been building enough homes in recent years. The graph below shows new construction for single-family homes over the past five decades, including the long-term average for housing units completed:

For 14 straight years, builders didn’t construct enough homes to meet the historical average (shown in red). That underbuilding created a significant inventory deficit. And while new home construction is back on track and meeting the historical average right now, the long-term inventory problem isn’t going to be solved overnight.

Today’s Mortgage Rates Create a Lock-In Effect

There are also a few factors at play in today’s market adding to the inventory challenge. The first is the mortgage rate lock-in effect. Basically, some homeowners are reluctant to sell because of where mortgage rates are right now. They don’t want to move and take on a rate that’s higher than the one they have on their current home. The chart below helps illustrate just how many homeowners may find themselves in this situation:

Those homeowners need to remember their needs may matter just as much as the financial aspects of their move.

Misinformation in the Media Is Creating Unnecessary Fear

Another thing that’s limiting inventory right now is the fear that’s been created by the media. You’ve likely seen the negative headlines calling for a housing crash, or the ones saying home prices would fall by 20%. While neither of those things happened, the stories may have dinged your confidence enough for you to think it’s better to hold off and wait for things to calm down. As Jason Lewris, Co-Founder and Chief Data Officer at Parcl, says:

“In the absence of trustworthy, up-to-date information, real estate decisions are increasingly being driven by fear, uncertainty, and doubt.”

That’s further limiting inventory because people who would make a move otherwise now feel hesitant to do so. But the market isn’t doom and gloom, even if the headlines are. An agent can help you separate fact from fiction.

How This Impacts You

If you’re wondering how today’s low inventory affects you, it depends on if you’re selling or buying a home, or both.

For buyers: A limited number of homes for sale means you’ll want to seriously consider all of your options, including various areas and housing types. A skilled professional will help you explore all of what’s available and find the home that best fits your needs. They can even coach you through casting a broader net if you need to expand your search.
For sellers: Today’s low inventory actually offers incredible benefits because your house will stand out. A real estate agent can walk you through why it’s especially worthwhile to sell with these conditions. And since many sellers are also buyers, that agent is also an essential resource to help you stay up to date on the latest homes available for sale in your area so you can find your next dream home.

Bottom Line

The low supply of homes for sale isn’t a new challenge. There are a number of long-term and short-term factors leading to the current inventory deficit. If you’re looking to make a move, connect with a real estate agent. That way you’ll have an expert on your side to explain how this impacts you and what’s happening with housing inventory in your area.

Got Questions? The Caton Team is here to help.

We love what we do and would love to help you navigate your sale or purchase of Residential Real Estate. Please reach out for a personal consultation. Please enjoy our free resources below and get to know our team from our TESTIMONIALS.

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We strive to be more than just Realtors – we are also your home resource. If you have any real estate questions, concerns, need a referral, or some guidance – we are here for you. Contact us at your convenience – we are but a call, text or click away!

The Caton Team believes, in order to be successful in the San Fransisco | Peninsula | Bay Area | Silicon Valley Real Estate Market we have to think and act differently. We do this by positioning our clients in the strongest light, representing them with the utmost integrity, while strategically maneuvering through negotiations and contracts. Together we make dreams come true.

A mother and daughter-in-law team with over 35 years of combined, local Real Estate experience and knowledge – wouldn’t you like The Caton Team to represent you? Let us know how we can be of service. Contact us any time.

The Caton Team – Susan & Sabrina
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Berkshire Hathaway HomeServices – Drysdale Properties, Redwood City Ca.

DRE # | Sabrina 01413526 | Susan 01238225 | Team 70000218 | Office 01499008

The Caton Team does not receive compensation for any posts. Information is deemed reliable but not guaranteed. Third-party information not verified.

How Misunderstandings about Affordability Could Cost You – Shared Article

SOURCE

There’s a lot of discussion about affordability as home prices continue to appreciate rapidly. Even though the most recent index on affordability from the National Association of Realtors (NAR) shows homes are more affordable today than the historical average, some still have concerns about whether or not it’s truly affordable to buy a home right now.

When addressing this topic, there are various measures of affordability to consider. However, very few of the indexes compare the affordability of owning a home to renting one. In a paper just published by the Urban Institute, Homeownership Is Affordable Housing, author Mike Loftin examines whether it’s more affordable to buy or rent. Here are some of the highlights included.

1. Renters pay a higher percentage of their income toward their rental payment than homeowners pay toward their mortgage.

The report explains:

“When we look at the median housing expense ratio of all households, the typical homeowner household spends 16 percent of its income on housing while the typical renter household spends 26 percent. This is true, you might say, because people who own their own home must make more money than people who rent. But if we control for income, it is still more affordable to own a home than to rent housing, on average.”

How Misunderstandings about Affordability Could Cost You | Simplifying The Market

Here’s the data from the report shown in a graph:

2. Renters don’t have extra money to invest in other assets.

The report goes on to say:

“Buying a home is not a decision between investing in real estate versus investing in stocks, as financial advisers often claim. Instead, the home buying investment simply converts some portion of an existing expense (renting) into an investment in real estate.”

It explains that you still have a housing expense (rent payments) even if you don’t buy a home. You can’t live in your 401K, but you can transfer housing expenses to your real estate investment. A mortgage payment is forced savings; it goes toward building equity you will likely get back when you sell your home. There’s no return on your rent payments.

3. Your mortgage payment remains relatively the same over time. Your rent keeps going up.

The report also notes:

“Whereas renters are continuously vulnerable to cost increases, rising home prices do not affect homeowners. Nobody rebuys the same home every year. For the homeowner with a fixed-rate mortgage, monthly payments increase only if property taxes and property insurance costs increase. The principal and interest portion of the payment, the largest portion, is fixed. Meanwhile, the renter’s entire payment is subject to inflation.

Consequently, over time, the homeowner’s and renter’s differing trajectories produce starkly different economic outcomes. Homeownership’s major affordability benefit is that it stabilizes what is likely the homeowner’s biggest monthly expense, assuming a buyer has a fixed-rate mortgage, which most American homeowners do. The only portion of the homeowner’s housing expenses that can increase is taxes and insurance. The principal and interest portion stays the same for 30 years.”

A mortgage payment remains about the same over the 30 years of the mortgage. Here’s what rents have done over the last 30 years:

4. If you want to own a home and can afford it, waiting could cost you.

As the report also indicates:

“We need to stop seeing housing as a reward for financial success and instead see it as a critical tool that can facilitate financial success. Affordable homeownership is not the capstone of economic well-being; it is the cornerstone.”

Homeownership is the first rung on the ladder of financial success for most households, as their home is most often their largest asset.

Bottom Line

If the current headlines reporting a supposed drop-off in home affordability are making you nervous, let’s connect to go over the real insights into our area.

Whether you’re just starting your journey in Real Estate or you’ve bought and sold before you can trust – The Caton Team to be your guides. We’ve built our business on trust, honesty, communication, respect, loyalty, wisdom, and knowledge. Each client is unique – please reach out for a personal consultation or read our blog HERE.

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Berkshire Hathaway HomeServices – Drysdale Properties

DRE # |Sabrina 01413526 | Susan 01238225 | Team 70000218 |Office 01499008

The Caton Team does not receive compensation for any posts. Information is deemed reliable but not guaranteed. Third-party information not verified.

PENDING – Feels so good!

Pending feels so good – because we are one step closer to our client’s goal. Once an offer is accepted the real work begins – and The Caton Team is here for all of it.

When we meet new buyers we tell them – The Caton Team does things a little differently. We truly believe, in order to be successful in the Silicon Valley Real Estate Market we must think and act differently. When our clients treat their purchase with respect, giving time to the whole process they succeed and often are ahead of the game. How can The Caton Team help you?

We love what we do and we love taking great care of our clients. That’s never changed. Let us know how we can help you.

Got Real Estate Questions? The Caton Team is here to help.

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The Caton Team – Susan & Sabrina
A Family of Realtors
Effective. Efficient. Responsive.
What can we do for you?

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Berkshire Hathaway HomeServices – Drysdale Properties

DRE # |Sabrina 01413526 | Susan 01238225 | Team 70000218 |Office 01499008

The Caton Team does not receive compensation for any posts. Information is deemed reliable but not guaranteed. Third-party information not verified.

The One Thing Every Homeowner Needs To Know About a Recession – Shared Article –

A recession does not equal a housing crisis. That’s the one thing that every homeowner today needs to know. Everywhere you look, experts are warning we could be heading toward a recession, and if true, an economic slowdown doesn’t mean homes will lose value.

The National Bureau of Economic Research (NBER) defines a recession this way:

“A recession is a significant decline in economic activity spread across the economy, normally visible in production, employment, and other indicators. A recession begins when the economy reaches a peak of economic activity and ends when the economy reaches its trough. Between trough and peak, the economy is in an expansion.”

To help show that home prices don’t fall every time there’s a recession, take a look at the historical data. There have been six recessions in this country over the past four decades. As the graph below shows, looking at the recessions going all the way back to the 1980s, home prices appreciated four times and depreciated only two times. So, historically, there’s proof that when the economy slows down, it doesn’t mean home values will fall or depreciate.

The One Thing Every Homeowner Needs To Know About a Recession | Keeping Current Matters

The first occasion on the graph when home values depreciated was in the early 1990s when home prices dropped by less than 2%. It happened again during the housing crisis in 2008 when home values declined by almost 20%. Most people vividly remember the housing crisis in 2008 and think if we were to fall into a recession that we’d repeat what happened then. But this housing market isn’t a bubble that’s about to burst. The fundamentals are very different today than they were in 2008. So, we shouldn’t assume we’re heading down the same path.

Bottom Line

We’re not in a recession in this country, but if one is coming, it doesn’t mean homes will lose value. History proves a recession doesn’t equal a housing crisis.

SOURCE

My Two Cents…

Each market is unique. If you’re considering a sale or purcahse in the Califorani Silicon Valley – The Caton Team is here to help. Contact us to dicuss your goals and how this market impacts you.

The Caton Team believes, in order to be successful in the San Fransisco | Peninsula | Bay Area | Silicon Valley Real Estate Market we have to think and act differently. We do this by positioning our clients in the best light, representing them with the utmost integrity; while strategically maneuvering through negotiations and contracts. Together we make dreams come true.

A mother and daughter-in-law team with over 40 years of combined local Real Estate experience and knowledge – wouldn’t you like The Caton Team to represent you? Let us know how we can be of service. Contact us any time.

Got Questions? The Caton Team is here to help.

We love what we do and would love to help you navigate your sale or purchase of Residential Real Estate. Please reach out at your convenience for a personal consultation. Please enjoy our free resources below and get to know our team through our clients’ words. Testimonials.

HOW TO SELL | HOW TO BUY

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HOW TO SELL during COVID-19 – HOW TO SELL – HOW TO BUY during COVID-19- – HOW TO BUY – MOVING MID PANDEMIC – TRUST AGREEMENTS and HEALTH CARE DIRECTIVES – OUR TESTIMONIALS

We strive to be more than just Realtors – we are also your home resource. If you have any real estate questions, concerns, need a referral or some guidance – we are here for you. Contact us at your convenience – we are but a call, text or click away!

Got Real Estate Questions? The Caton Team is here to help.

The Caton Team – Susan & Sabrina
A Family of Realtors
Effective. Efficient. Responsive.
What can we do for you?

Want Real Estate Info on the Go? Download our FREE Real Estate App: Mobile Real Estate by The Caton Team

Berkshire Hathaway HomeServices – Drysdale Properties

DRE # |Sabrina 01413526 | Susan 01238225 | Team 70000218 |Office 01499008

The Caton Team does not receive compensation for any posts. Information is deemed reliable but not guaranteed. Third party information not verified.

Top 10 Destinations for Out-of-State Movers

Home shoppers’ interest in relocating to a different state is on the rise, finds a new survey from realtor.com®. During the first quarter, 40.5% of prospective buyers searching for homes for sale on realtor.com® were looking for homes outside of their current state.

“After two years of pandemic remote work, offices have started to reopen, but instead of seeing a slowdown in the number of people interested in homes out of state, we’re seeing an acceleration,” says Danielle Hale, realtor.com®’s chief economist. “Taking a closer look at the top destinations, we see some very different trends driving the desire to live out of state and home shoppers’ diverse needs.”

Affordability remains a key focus for buyers, Hale says. Demand for less expensive areas has increased in recent months due to high inflation and rising mortgage rates. Also, the flexibility from the higher adoption of remote work is fueling greater interest in sunnier climates like the Sun Belt, Hale says. Some buyers also are showing renewed interest in living downtown. Two major metros made realtor.com®’s list of top destinations for out-of-state home shoppers.

The following are the top 10 relocation destinations, according to realtor.com®.

A table showing the top 10 destinations for out-of-state movers.

Source:

Move Inc.

The Caton Team is here to help.

HOW TO SELL | HOW TO BUY

How can The Caton Team help You?

Get exclusive inside access when you follow us on Facebook & Instagram

HOW TO SELL during COVID-19 – HOW TO SELL – HOW TO BUY during COVID-19- – HOW TO BUY – MOVING MID PANDEMIC – TRUST AGREEMENTS and HEALTH CARE DIRECTIVES – OUR TESTIMONIALS

Got Real Estate Questions? The Caton Team is here to help.

A mother and daughter-in-law team with over 35 years of combined, local Real Estate experience and knowledge – would’t you like The Caton Team to represent you? Let us know how we can be of service. Contact us any time.

The Caton Team – Susan & Sabrina
A Family of Realtors
Effective. Efficient. Responsive.
What can we do for you?

Want Real Estate Info on the Go? Download our FREE Real Estate App: Mobile Real Estate by The Caton Team

Berkshire Hathaway HomeServices – Drysdale Properties

DRE # |Sabrina 01413526 | Susan 01238225 | Team 70000218 |Office 01499008

The Caton Team does not receive compensation for any posts. Information is deemed reliable but not guaranteed. Third party information not verified.

SOLD in Daly City by The Caton Team

We love what we do – so when our clients called with the news – it was time to sell – you better believe that kicked The Caton Team into high gear. Thank you Tonton and Angela for trusting your first home purchase and now your first home sale with The Caton Team!

When our past clients reached out to sell the condo we helped them buy – The Caton Team was so excited. We know what it takes to sell property in Silicon Valley. Wonderful photography, 3D tours, and easy access. After 12 days on the market, and 2 weekends of open houses we received a total of 4 offers and one outshined them all. Working closing with the buyer’s agents – we made dreams come true. So grateful for this opportunity.

Photos & Info

How can The Caton Team help you?

The Caton Team loves helping sellers prepare their home for sale as much as we love finding the right home for each client. We’ve been blessed to make dreams come true by taking advantage of this active market and amazing low-interest rates. If you’ve been considering a sale or purchase of Real Estate – especially in the Bay Area, now is a great time to get discover the possibilities.

Real Estate means homes and home is where the heart is. We’ll get through this together. We work remotely, can draft and sign contracts online; with virtual tools, The Caton Team can make any of your Real Estate goals happen whether you’re selling or buying – today or tomorrow.

We love what we do and we love taking great care of our clients. That’s never changed. Let us know how we can help you. For Timely Information Subscribe to our Blog

Got Real Estate Questions? The Caton Team is here to help.

Get exclusive inside access when you follow us on Facebook & Instagram

The Caton Team – Susan & Sabrina
A Family of Realtors
Effective. Efficient. Responsive.
What can we do for you?

Want Real Estate Info on the Go? Download our FREE Real Estate App: Mobile Real Estate by The Caton Team

Berkshire Hathaway HomeServices – Drysdale Properties

DRE # |Sabrina 01413526 | Susan 01238225 | Team 70000218 |Office 01499008

The Caton Team does not receive compensation for any posts. Information is deemed reliable but not guaranteed. Third party information not verified.

PENDING in Daly City

Pending feels so good – because we are one step closer to our client’s goal. Once an offer is accepted the real work begins – and The Caton Team is here for all of it.

Photos & Info

How can The Caton Team help you?

We love what we do and we love taking great care of our clients. That’s never changed. Let us know how we can help you. For Timely Information Subscribe to our Blog

Got Real Estate Questions? The Caton Team is here to help.

Get exclusive inside access when you follow us on Facebook & Instagram

The Caton Team – Susan & Sabrina
A Family of Realtors
Effective. Efficient. Responsive.
What can we do for you?

Want Real Estate Info on the Go? Download our FREE Real Estate App: Mobile Real Estate by The Caton Team

Berkshire Hathaway HomeServices – Drysdale Properties

DRE # |Sabrina 01413526 | Susan 01238225 | Team 70000218 |Office 01499008

The Caton Team does not receive compensation for any posts. Information is deemed reliable but not guaranteed. Third party information not verified.

PENDING in San Francisco

Pending feels so good – because we are one step closer to our client’s goal. Once an offer is accepted the real work begins – and The Caton Team is here for all of it.

We had the joy of meeting our awesome clients and instantly clicked. With an underwritten approval in hand, we jumped into the thick of it. Homes were selling while we stood in them. It was intense. When we did get to write an offer – we were blown away by the level of competition. Then ‘the one’ came on, armed with experience we worked with our clients to determine the best course of action. With their trust and our knowledge – together – we made Real Estate goals come true.

How can The Caton Team help you?

We love what we do and we love taking great care of our clients. That’s never changed. Let us know how we can help you. For Timely Information Subscribe to our Blog

Got Real Estate Questions? The Caton Team is here to help.

Get exclusive inside access when you follow us on Facebook & Instagram

The Caton Team – Susan & Sabrina
A Family of Realtors
Effective. Efficient. Responsive.
What can we do for you?

Want Real Estate Info on the Go? Download our FREE Real Estate App: Mobile Real Estate by The Caton Team

Berkshire Hathaway HomeServices – Drysdale Properties

DRE # |Sabrina 01413526 | Susan 01238225 | Team 70000218 |Office 01499008

The Caton Team does not receive compensation for any posts. Information is deemed reliable but not guaranteed. Third party information not verified.

PENDING in Oakland!!!

Pending feels so good – because we are one step closer to our client’s goal. Once an offer is accepted, the real work begins. The Caton Team is here for all of it.

We had the best time learning the Oakland area and narrowing down on the right home for our clients. Having our first offer outbid, we revved up for the next one and, we were not taking no for an answer. With kindness, due diligence, and determination – we were able to make this dream come true for our clients…

How can The Caton Team help you?

The Caton Team’s loves helping sellers prepare their home for sale as much as we love finding the right home for each client. We’ve been blessed making dreams come true by taking advantage of this active market and amazing low interest rates. If you’ve been considering a sale or purchase of Real Estate – especially in the Bay Area, now is a great time to get discover the possibilities.

Real Estate means homes and home is where the heart is. We’ll get through this together. We work remotely, can draft and sign contracts online; with virtual tools The Caton Team can make any of your Real Estate goals happen whether you’re selling or buying – today or tomorrow.

We love what we do and we love taking great care of our clients. That’s never changed. Let us know how we can help you. For Timely Information Subscribe to our Blog

Got Real Estate Questions? The Caton Team is here to help.

Get exclusive inside access when you follow us on Facebook & Instagram

The Caton Team – Susan & Sabrina
A Family of Realtors
Effective. Efficient. Responsive.
What can we do for you?

Want Real Estate Info on the Go? Download our FREE Real Estate App: Mobile Real Estate by The Caton Team

Berkshire Hathaway HomeServices – Drysdale Properties

DRE # |Sabrina 01413526 | Susan 01238225 | Team 70000218 |Office 01499008

The Caton Team does not receive compensation for any posts. Information is deemed reliable but not guaranteed. Third party information not verified.

PENDING – Feels so good!

Pending feels so good – because we are one step closer to our client’s goal. Once an offer is accepted the real work begins – and The Caton Team is here for all of it.

How can The Caton Team help you?

We love what we do and we love taking great care of our clients. That’s never changed. Let us know how we can help you. For Timely Information Subscribe to our Blog

Got Real Estate Questions? The Caton Team is here to help.

Get exclusive inside access when you follow us on Facebook & Instagram

The Caton Team – Susan & Sabrina
A Family of Realtors
Effective. Efficient. Responsive.
What can we do for you?

Want Real Estate Info on the Go? Download our FREE Real Estate App: Mobile Real Estate by The Caton Team

Berkshire Hathaway HomeServices – Drysdale Properties

DRE # |Sabrina 01413526 | Susan 01238225 | Team 70000218 |Office 01499008

The Caton Team does not receive compensation for any posts. Information is deemed reliable but not guaranteed. Third party information not verified.

Underbuilding Is a Long-Standing Problem

Today’s Mortgage Rates Create a Lock-In Effect

Misinformation in the Media Is Creating Unnecessary Fear

How This Impacts You

Bottom Line

Got Questions? The Caton Team is here to help.

Berkshire Hathaway HomeServices – Drysdale Properties, Redwood City Ca.

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1. Renters pay a higher percentage of their income toward their rental payment than homeowners pay toward their mortgage.

2. Renters don’t have extra money to invest in other assets.

3. Your mortgage payment remains relatively the same over time. Your rent keeps going up.

4. If you want to own a home and can afford it, waiting could cost you.

Bottom Line

Got Questions? The Caton Team is here to help.

Berkshire Hathaway HomeServices – Drysdale Properties

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