What does Whittier's Real Estate numbers look like?

Whittier, CA 

Real Estate is Southern California has had it's shares of ups and downs over the past couple years. Sellers are recognizing huge gains and because of low rates at the beginning of last year, many homeowners remodeled or added living space. On the flip side of that coin, inventory continues to remain at an all time low. Because inventory was and has been so low, buyers are getting overbid multiple times and it's leading to them walking away from the market discouraged. Now, with interest rates up over 2 POINTS since last year, it's forced some buyers out of the market permanently or to look at a significantly lower priced home. Whittier is no different. The latest numbers show that there are currently 107 properties for sale in the city. That's down 17% from this time last year when there was 129 homes for sale. That brings our monthly supply of inventory down to 1.2 which is also down 7% from this time last year. However, as I started this writing you noticed that I said "Ups and Downs", so now it's time for the upside! For homeowners and sellers the median home price is $827,000 which is up 14.9% from this time last year. In addition, the average sales price is also up...BIG TIME! The average sales price in Whittier is currently $920,000 which is up 18.9% from last year.

So what does this all mean??? It means that the market is healthy. It means that there's a balance that is happening. The market is clearly not dropping or going to, but with the rise of interest rates the buyer pool shrinks and shrinks...and shrinks!! That means sellers will be receiving offers in line with a normal market and not the overinflated offers they are seeing now and with buyers priced out or on the sides, it will provide for more equality in the deal. Let's face it, sellers are in full control right now but that will change in the upcoming year. Does that mean "I should wait to buy"?? NO!!! That will only cause you to pay more down the road. Again, I didn't say prices will drop, just level out to the market norm. It's always a good time to buy because housing is always needed here and it will pay for it's self (and then some) down the road!!  

Who's the TOP PIZZA in Whittier???

Whittier, CA 

Wondering who has the TOP SPOT as Whittier's best Pizza?? I'm gonna tell you where you can get the best pizza in Whittier plus a few other spots that won't let you down. Let's get into it....

#5 Barro's (off Leffingwell)

Good hearty pizza. Nice thick crust with a pretty decent sauce. Service was good. 

#4 Pizzamania (off Telegraph)

Good pizza. I recommend the EVERYTHING special. Service is ok.

#3 Brickhouse Pizza (Uptown)

Great Pizza! Tons of flavor in a thick and hearty pizza. Everything was hot out of the oven and tasted great! When in Uptown Whittier look for Brickhouse Pizza. You won't be let down.

#2 Tony's (Whittwood Center)

Tony's has been in Whittier forever and are still around for a reason...BECAUSE THEY MAKE A FANTASTIC PIZZA! All the pies there are good. I love the Bruschetta Pizza. It's great on it's own but I like to add Pepperoni! 

#1 Joe Peeps (Whittier Blvd)

This is HANDS DOWN THE BEST PIZZA IN WHITTIER!! They have been in Whittier for over 25 years (changed ownership a few times) but...the recipe has remained the same. It's straight NY style loaded with flavor....and toppings. They stack the pizza with tons of fresh toppings. The "Blue Collar" is just an old fashioned pie. TASTY!!! My favorite is Peperoni with fresh Jalapenos. They blend it all together in a way that has you coming back for another giant slice!!

Looking for a great burger in Whittier??

Whittier, CA

Plan on being in Whittier or do you live in Whittier and want a great burger? Not just a great burger, but the best Whittier has to offer?? We've went ahead and did the "heavy lifting" (hahaha) for everyone and tested the following "Burger Joints". Here is our Top 10 list:

#10 Doublz (on Washington Blvd.)

Good Burger.  Friendly service. Lot's of combo options. I recommend the fried Zucchini.

#9 Habit (at the Whittwood)

Good Burger. Great customer service. The Santa Maria is my favorite here.

#8 Five Guys (on Telegraph Rd.)

Very Good Burger. Big, fresh tasting patties. Fries leave some to be desired. Not a cheap option. $$$$

#7 Big D's (On Beverly Blvd)

Very Good burger. Big patties. Fries are good. Not as pricey as Five Guys. Good Service

#6 Ricks (Uptown)

Very Good Burger. 1/4 patty standard. Good Service. One of Whittier's oldest Burger Joints.

#5 Golden Ox (Uptown)

Very good Burger. Great Char grill taste. Consistently good. Multiple locations in surrounding cities and all are good.

#4 Douglas (on Telegraph Rd.)

Super Tasting Burger. Service was great. Fries were seasoned perfectly. 

#3 Tams (on Lambert)

Super Tasting Burger. Always busy because of the taste. 1/4 standard with that awesome Char flavor.

#2 In n Out (Whittier Blvd)

Great Burger! Consistently great all around. Always filled with flavor and always fresh tasting! Be prepared to wait.

#1 Norms (Whittier Blvd)

Whittier's Best!! Ask most people in Whittier and they will tell you it's Norm's Burgers on Whittier Blvd. This 1/4 masterpiece tops them all!! AND DON'T FORGET THE PASTARMI!!! Yum!!

‘Home price appreciation will normalize.’ What 5 economists and real estate pros predict will happen to home prices in 2022

What aspiring home buyers should know about housing prices, according to experts.

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How much will home prices go up in 2022?

In 2021, home prices skyrocketed nearly 19%, according to the S&P CoreLogic Case-Shiller home price index. And pros say we’re in for another year of price growth — but as for how much, pros diverge. 

Some predict double digit growth. Indeed, a report in January from Zillow noted that home values were expected to grow 16.4% between December 2021 and December 2022; Goldman Sachs, in October, forecast that home prices would rise 16% through 2022. Fannie Mae says home prices will climb 11.2% throughout this year, followed by a more modest increase in 2023.

Others have more modest predictions: The National Association of Realtors, which surveyed more than 20 top economic and housing experts, predicts housing prices are expected to climb 5.7%  through the end of 2022; and Realtor.com predicts a 2.9% increase in 2022. “I believe home price appreciation will normalize in 2022 and home price growth will begin to more closely track inflation,” says Bill Dallas, president of Finance of America Mortgage. As of February 2022, Redfin predicted home-price growth to slow at an annual rate of 7% by the end of 2022. 

There is one thing that a few pros we spoke to said: In the next couple months or so, as spring buying season picks up and supply remains low (it was at a record low as of January, according to the National Association of Realtors), you may see a price uptick. “Combine those two data points and it’s hard to see home prices going anywhere but up this month,” says Jeff Ostrowski, analyst at Bankrate.  And for her part, Zillow economist Nicole Bachaud says: “The market thawed early this year as home value appreciation began to accelerate in December, well before it usually does in the spring and we expect that acceleration to continue into March and April.” 

One of the reasons home prices will continue to push upward in the short-term is because mortgage rates are falling temporarily [they fell in late February], which leads to a surge in offers for homes, says Holden Lewis, home and mortgage expert at NerdWallet. “This is happening during the opening weeks of what traditionally is the home buying season. House prices have been rising steeply and they’ll keep doing that in March,” says Lewis.

Dallas echoes the importance of mortgage rates in home price estimates:  “It’s possible that demand and bidding wars will pick up in the short term as prospective buyers try to secure a house ahead of expected rate increases this year.”  Indeed, with a Fed meeting set for mid-March, Ostrowski says all eyes are on the Federal Reserve. “The Fed doesn’t directly control mortgage rates but it does set the overall tone for interest rates and they’re widely expected to raise rates this month,” says Ostrowski. And Realtor.com senior economist George Ratiu also says that buyers are trying to get ahead of potentially surging mortgage rates by snapping up homes as soon as they hit the market. “With inventory continuing to shrink and the pace of transactions quickening, the median listing price reached $392,000 in February of this year, a new record high, signaling a competitive start to the spring season,” says Ratiu.

The bottom line is that the economy does impact the value of real estate and home shoppers hoping for a surge of new inventory and relief from heightened competition have so far been left disappointed. “It remains to be seen how long buyers can weather this storm, especially in the face of rising mortgage rates, and how long homeowners will watch values rise before deciding to list. Neither have blinked yet,” says Bachaud.

By 

Alisa Wolfson

As 2022 begins, the real estate market is still going strong. Many of us have moved into a new home or are planning to sell our current one. So, there isn’t a better time than now to consider what features and renovations can maximize property value both in the long and short term.

I spoke with a variety of experts from interior designers to real estate agents and brokers to learn what’s currently appealing to homeowners and buyers. From specific spaces in the home that have become essential to the small details that make a big difference, here are ten ways to add value to your home in 2022.

Additional Dwelling Units

An ADU can have many purposes

Additional Dwelling Units or ADUs have become incredibly useful and popular during the pandemic because they provide spaces for people to work away from kids and other members of the family, for in-laws and other visitors to stay, and if need be, as a Covid quarantine space. 

ADUs can also be a source of income for homeowners. Founder of Sweeten, Jean Brownhill tells me the trend of ADUs will be picking up steam in 2022. “These small, self-contained units, separate from the main single-family home, can be built from scratch or transformed from an existing underused garage. Growing uses for these structures include a home office, a studio apartment, or short-term rental. ADUs remain popular for their ability to increase property values.”

Updated Kitchens And Bathrooms

An upgraded kitchen with Christopher Peacock finishes

Renovating a kitchen or bathroom is a great way to instantly increase the value of a home, according to Christopher Peacock, Founder and CEO of Christopher Peacock. However, it’s important to choose quality materials because cabinetry in particular is subject to a great deal of wear and tear. “Without question, renovating a kitchen or bath space with well-made, quality cabinetry will always add value to a home,” he says.

The right design also maximizes value. “The kitchen, being the heart of the home, has become an even more important feature this year. In 2022, more robust kitchen designs will continue to be an important improvement trend,” explains Peti Lau of the New York Design Center.

Storage

A dream pantry

Any type of extra storage, whether it’s a farmhouse shed, a beautifully designed walk-in closet in the master bedroom, or a pantry in a city apartment can increase the value. It’s also a smart upgrade that won’t be falling out of favor any time soon. “A feature I think will add value in 2022 is an often underappreciated pantry closet. 2021 and 2022 taught us that beyond storage for clothing, we all need more storage than we think for living supplies— think extra shelf-stable food, paper towels, and Covid tests,” says real estate agent Allison Chiaramonte.

“Even in New York City, the land of takeout and grocery stores on every corner, clients are now asking for and valuing more utilitarian storage spaces in their apartments and homes. Also, more and more people are cooking at home, meaning space for these supplies is at a premium.”

Chiaramonte has noticed buyers that buyers are truly excited by the idea that they can have their own pantry. “No matter whether it is a windowless room too small to be an office or a gym or an unused/extra coat closet that has been repurposed. Any extra nook or space can be transformed into a formal pantry— just install some shelving.”

Gerard Splendore, a broker at Warburg Realty tells me that the buyers he’s been working with also value these types of spaces because they facilitate bulk purchasing. “Buying in bulk prevents frequent trips to the store, preventing potential exposure to Covid. Should the next wave continue to grow, storage for paper goods and non-perishables will become more valuable.”

Dedicated Home Offices

A home office designed by Grade

While many of us have been hoping for life to get back to normal, the days of working nine to five in the office aren’t exactly here again. Many companies have also gone to a hybrid model, requiring employees to go in just a few days per week. So, a home office is still essential in 2002 and likely will be for years to come. “Almost two years since the pandemic began, many of us have spent so much time at home that living and working spaces can no longer be distinguished, leading to the re-emergence of the home office as people re-evaluate how and where they spend their time,” explain Thomas Hickey and Edward Yedid of Grade New York. 

However, fostering productivity is essential. “Dedicated home office spaces or studies are one solution to this challenge, allowing more focused and efficient time away from the office. These are real environments that are conducive to work, but are also chic, thoughtfully designed, aesthetically pleasing and above all comfortable. The new home office might have a bar, an en-suite bath, and even art, and provide a sophisticated backdrop and privacy for video calls with amenities just steps away to allow for uninterrupted focus.”

Outdoor Space

A balcony designed by Jennifer Hunter

Outdoor spaces, especially in cities like New York, where most people don’t have their own backyards have becoming increasingly popular to buyers. “In this Covid age, I think it is very important to homeowners to have an outdoor space. Whether that be building a new patio or revamping a terrace with a bistro table and chairs, I think this is something buyers will continue to prioritize when looking for a new home. As we continue to navigate this new normal, it is valuable to have these spaces to be able to safely gather with loved ones,” says interior designer Jennifer Hunter.

Wellness Spaces And Home Gyms

Wellness spaces enhance a home

“Wellness is now the most important request to add value to a home,” Renata Vasconez, Partner IG Workshop Miami tells me. “Spa-like master bathrooms and well-equipped Home gyms that include luxurious materials [should have] top-of-the-line equipment. These spaces are meant to give the client the seclusion and privacy they desire. We’ve seen a rise in companies that provide products that meet these standards, both in bath ware and also lines of beautifully designed gym equipment, to cater to almost any activity.”

Broker Cecilia Serrano of Warburg Realty has also seen this trend in New York. “People are becoming increasingly interested in keeping fit and also spending a lot of their time working from home. Perhaps a pleasant, quiet area to think and meditate in is also great.”

Multipurpose Spaces

Multipurpose spaces that give homeowners flexibility also have appeal and can increase value. Mihal Gartenberg, an agent for Warburg Realty tells me, “Covid has changed how people interact with their homes. Open-concept floor plans, while popular and inviting, have been at the forefront of challenging work and school from home. It would be a great idea to find how to carve out a niche in your home that can double as a home office or a schoolroom for your children’s online learning.” 

Laundry Rooms

Laundry rooms are a perfect way to add value to your home

Everyone needs clean clothing and having the space to do laundry can add value to your home. Having a sink, line for hanging delicates, a table for folding, and shelves for all the accouterments ameliorates this often daily task. “Well-outfitted laundry rooms will be at the top of the list along with a well-thought-out location. Outfitting it with organization and storage and in a convenient location will make a big impact,” says Brownhill.

While most New York City apartments don’t have space for a dedicated laundry room, oftentimes a closet or a washer and dryer anywhere in the apartment will suffice, according to Splendore “Buyers are also looking for in-unit laundry facilities to prevent sharing washers and dryers with neighbors, as well as exposure to neighbors."

Authentic Sustainability

Natural hardwoods add value to a home

While sustainability is a major trend we will see in 2002, Lotta Lundaas, Founder and CEO of Norse Interiors is a proponent of authentic sustainability. “I will maintain my focus on authentic sustainability and find a new use for old furniture and décor. To add value, I’ll be putting in natural hardwood floors in my home, which can be refinished with time and is an excellent way to revive the whole space in one go.” 

Fine Architectural Details

Details are everything according to Pure Salt Interiors

Leigh Lincoln, co-founder, Pure Salt Interiors believes adding architectural details can make a home more valuable in the upcoming year. “We are big lovers of adding architectural features to beef up style and make your home look and feel more custom. Think arched built-ins or doorways, Venetian plaster on range hoods or fireplaces, or millwork in bedrooms, bathrooms, and hallways. The idea is to take a builder-grade space and lay on the charm with timeless accents that will add value to your home for years to come.”

Jeremy Kamm, an agent for Warburg Realty, tells me stylish ceiling fans are a great example of this “The more time we spend in our homes as a result of the pandemic, the more we need extra comforts. Nevertheless, many of us still would not want to compromise the integrity of our designs and aesthetics for the sake of functionality, so our design and function implementations need to exist in symbiosis. I have found many buyers looking for artistic ceiling fans in rooms for added air circulation throughout the day. It’s a feature that many comment that they will install if it does not already exist— higher ceilings, therefore come with the territory for a generally airier overall feeling

credit: Amanda Lauren

Zillow said Tuesday it is laying off a quarter of the real estate firm's 6,400 employees as it shuts down the company's house-flipping operation, a painful setback for a player that has sought to expand its role linking property buyers and sellers.

In a statement explaining the abrupt move to pull the plug on the side business, called Zillow Offers, CEO Rich Barton said "the unpredictability in forecasting home prices far exceeds what we anticipated." As a result, continuing to grow Zillow Offers "would result in too much earnings and balance-sheet volatility," he added. 

In a tweet, Barton also said the decision was "difficult, but necessary."

Closing Zillow Offers may require several quarters to complete, the company said. 

As part of that decision to halt home buying, Zillow was trying to sell 7,000 homes, according to Bloomberg — a move that was worrying, noted Bank of American Securities analysts in a research note. 

"The decision to abruptly sell 7,000 homes could point to one of two things that make us even more cautious," the analysts noted. First, Zillow could be concerned enough about the housing market outlook "that it is willing to sell a very large amount of homes quickly and likely at a loss." 

Second, the decision to sell so many homes could signal "undisciplined execution has led [Zillow Group] to take what we see as a drastic step of reducing its owned home portfolio."

The decision to exit the business comes only weeks after executives touted the home-flipping offering as one that could eventually reach half of all housing stock. 

"We, over time, believe this can be a service that is offered to the majority, to over 50% of the housing stock," Zillow Chief Operating Officer Jeremy Wacksman said in a September 13 virtual technology conference. "We will get there."

It never got there. Zillow said Tuesday in its latest quarterly earnings report that it will write down real estate worth $304 million after buying homes that are now worth less than the company's current estimates of their future sales prices. The company also expects to recognize an additional $240 million to $265 million in losses on homes it expects to finish purchasing in the fourth quarter.

Zillow shares fell 11.5% on Tuesday and slipped another 6.4% in after-market trading.

-Credit: Aimee Picchi

10 Best U.S. Small Towns to Visit for Halloween

It’s the spookiest time of the year, and while big city Halloween festivals might be exciting, we think no one handles holiday festivities quite as well as small towns in America do. Boasting charming traditions and family-friendly events, these cities offer everything from impressive pumpkin displays to lively parties and festive parades. Filled with holiday spirit, here are the best small towns to visit for Halloween in the United States.

Credit:

NeewollahParade at Independence, Kansas

Located in the southeast region of Kansas, Independence is a small town known for its “Neewollah” (Halloween spelled backward) festival. This lively 9-day-long celebration is a delight for holiday enthusiasts. You’ll find dozens of activities to participate in, from parades and food festivals to carnivals and more. It’s one of the largest annual events in the state, luring in Halloween fans from around the country who want to celebrate the holiday in style.

Credit: Spirit of Halloweentown

Spirit of Halloweentown, Oregon

St. Helens, Oregon

If you’re a fan of the Disney Channel’s Original Movie “Halloweentown”, you might recognize St. Helens in Oregon. A small town just 30 miles north of Portland, St. Helens was completely transformed into a mega-Halloween town for scenes in the 1998 film, while “Twilight” fans can also check out Bella’s house. Visit on Halloween to enjoy haunted houses and a costume parade at the Spirit of Halloweentown Festival in addition to a giant pumpkin lighting ceremony, monster fun run and haunted hearse and car show.

Credit: © Paul Brady | Dreamstime.com

Witch House of Salem

Salem, Massachusetts

Quite possibly the most famous small town in the United States for Halloween, Salem is most-known for its witch trials back in 1692. Its witchy ties bring in visitors from around the world hundreds of years later, as these historic events have made this city synonymous with Halloween. You can sign up for a walking tour of the city, or immerse yourself in the Halloween spirit by attending the Festival of the Dead to experience psychic readings, talks with the dead and paranormal experts. You’ll also find plenty of haunted houses, costume parties, fireworks and parades in Salem to keep you busy in October.

Credit: Stanley Hotel

Estes Park, Colorado

Estes Park is a quiet mountainside village, known as being home to the historic Stanley Hotel. This famed hotel is reportedly a haunted property, which Stephen King used as an inspiration for his novel “The Shining”. In October you’ll find plenty of Halloween-focused events that cater to visitors of all ages. Attend the “Shining Ball” to see theater characters, a costume contest and late-night dancing as well as a murder mystery dinner, while Halloween night brings everyone out to visit Main Street for trick-or-treating fun. Attend the family-friendly Autumn Gold festival for live bands, bratwursts and beer, or head to Pumpkins & Pilsner festival to enjoy face painting, bounce houses and pony rides along with seasonal, local craft beers.

Credit: © Cecouchman | Dreamstime.com

Giant pumpkin display

Anoka, Minnesota

Sitting just north of Minneapolis, Anoka is affectionately known as the “Halloween Capital of the World”. This lively community puts on an array of events that include pumpkin competitions, a house decorating contest, a kid-friendly Halloween movie screening and costume parade for the kids. Events were originally designed to keep kids from stirring up trouble in the neighborhood, but it has now evolved into a much-beloved time of year where visitors of all ages can enjoy scarecrow contests, balls and parties, bonfires and parades.

Credit: © Aleksandra Alimova | Dreamstime.com

Philipsburg Manor

Sleepy Hollow, New York

Located just 30 miles north of New York City, Sleepy Hollow is a quaint East Coast town that was featured in Washington Irving’s short story “The Legend of Sleepy Hollow”. The popular Halloween city still boasts its iconic unofficial mascot, the Headless Horseman, and those who want to embrace the holiday spirit can do so by visiting the 300-year-old Van Cortlandt Manor. Every year it gets a makeover for the Great Jack-o-Lantern Blaze, while Horseman’s Hollow is an outdoor/indoor “period correct” haunt where Philipsburg Manor transforms into an interactive haunted trail with costumed actors from the 1700s. There’s also dramatic performances of The Legend of Sleepy Hollow and cemetery tour guides.

Credit: Halloween on Tillson Street

Halloween on Tillson Street, Romeo

Romeo, Michigan

Romeo is a quaint town in Michigan where its claim to Halloween fame is its over-the-top decorations displayed on Tillson Street. Many Halloween fans in the area gear up for the annual Terror on Tillson Street event, which sees many of the homes decorating with spooky add-ons, with plenty to delight little ones such as smiling jack-o-lanterns and Charlie Brown characters. These seriously detailed displays on their front lawns cause quite the spectacle, as they’re so intricate that they can rival the work of Hollywood set designers.

Credit: C-K AutumnFest

C-K AutumnFest

Ceredo and Kenova, West Virginia

Teaming up every Halloween season, Ceredo and Kenova are two cities in West Virginia that are a hotspot for Halloween enthusiasts. Every year they host the two-day long C-K AutumnFest, which includes a variety of bake-offs, parades, festivals and arts and crafts and tractor shows. Don’t miss the popular Nightmare at Dreamland Haunted Trail and Great Scarecrow Hunt, while there’s plenty of kids activities and food vendors to please all types of Halloween fans.

Credit: NH Pumpkin Festival

NH Pumpkin Festival

Laconia, New Hampshire

Laconia is a New England town that sees a lot of love come October, as its famous NH Pumpkin Festival boasts an array of haunted attractions. Enjoy the lively festivals, food and more at the two-day event where you can find amusement rides, food and craft vendors and a Pumpkin Festival Beer Garden. There’s live music and a Zombie Walk as well as fun for the kids with pedal tractor pulls, corn hole and games. At the end of the second day, there’s a Jack-o-Lantern Lighting event and Pumpkin Dump Derby.

Credit: Chatham Pumpkin People in the Park

Chatham Pumpkin People in the Park

Chatham, Massachusetts

Chatham, Massachusetts is a picturesque seaside town that puts on its annual Pumpkin People in the Park event in October. Artists from around the region come together to display fun and quirky pumpkin creations in this Cape Cod town, offering a unique backdrop for a picture-perfect souvenir for you to take home. You can also attend Chatham’s Oktoberfest with kids activities, brats and beer and live music at Kate Gould Park

BY CHARITY DE SOUZA

Record-low mortgage rates and shortage of inventory are keeping the US housing market strong as far as demand is considered. Home prices have been surging month-over-month breaking new records. While affordability issues worsen, low mortgage rates, growing savings, and a strengthening job market combine to keep homeownership within reach for many potential buyers. But will the housing market eventually crash? Let's look at the most recent trends and housing market predictions for 2021 and 2022.

This year's housing market has been exceptionally strong, with strong housing demand in virtually every region of the country. In the midst of this pandemic, the housing market has emerged as a boon for sellers and a cause of concern for buyers. For several years, home prices have been growing in the mid-single digits. The recent price increases in the double digits reflect the confluence of extraordinary demand and persistently low supply. Prices are rising as there is plenty of capital on the sidelines, as well as very cheap mortgage rates.

A strengthening economy and millennials nearing their peak homebuying years are fueling a residential housing boom. Due to millennial homeownership and other reasons such as growing construction costs and real-estate investors scooping up starter houses, housing supply is presently at its lowest level since the 1970s. Low mortgage rates, combined with an increase in work-from-home opportunities as a result of the pandemic, have also fueled a surge in housing demand, particularly in lower-density suburbs.

We'll look at current real estate trends, price and rent hikes, housing sales and supply, mortgage rates and delinquencies, and other significant industry takeaways and insights into the US housing market.

What Happens Next in the Housing Market?

The FMHPI is an indicator for typical house price inflation in the United States. It indicates that home prices increased by 11.3 percent in the United States in 2020 as a result of robust housing demand and record low mortgage rates. Growth is expected to slow to 4.4 percent in 2022, according to the forecast. The current Freddie Mac House Price Index for United States is 245.2 (June 2021).

Pending home sales, a leading indicator of the health of the housing market, fell 1.8% in July, the second straight month of declines amid a record-breaking surge in housing prices. The National Association of Realtors’ (NAR) Pending Home Sales Index, which tracks the number of homes that are under contract to be sold, dropped 1.8% in July from the previous month. All four regions of the U.S. reported a year-over-year decline in pending home sales, which is an indicator of home sales that are likely to take place in one to two months.

The only region to post an increase in sales from a month ago was the West, where pending sales rose 1.9% in July from June. But sales in the West are down 5.7% compared to a year ago.  Pending sales in the Northeast region recorded a 6.6% and 16.9% decrease — the largest monthly and year-over-year decline, respectively, since the data has been tracked. If home sales continue to fall, sellers may be forced to lower their prices and give buyers more time and flexibility when purchasing homes.

Realtor.com's national housing report for August 2021 indicates that the market is shifting favourably for homebuyers. Inventory appears to be increasing, and buyers who have been feeling the effects of buyer fatigue now have more options and purchasing leverage than they have had in the recent past. This year's market is beginning to show signs of a shift that may eventually result in a more balanced market in the second half of the year.

Home prices are now rising in the single digits, having passed their peak growth rates. These market trends point to a positive development for buyers as we enter the second half of this year. Median listing prices in several metro areas are continuing to fall, owing to an increase in lower-priced houses. New sellers are entering the market at near-normal levels, and while property prices remain high, they may need to consider pricing more competitively in the near future.

The nationwide median listing price for active listings in August was $380,000, up 8.6 percent from the previous year. The annual price growth rate has slowed for the fourth month in a row. The annual median home price growth rate in July was 10.3 percent, down from 12.7 percent in June. In comparison to previous year, large metros witnessed an average price increase of 3.5 percent. Price rise in the country's major metros is slowing somewhat quicker than in the rest of the country.

While median listing price growth is slowing, this does not represent a housing market crash. However, the share of homes with price reductions in August surpassed last year's level and is approaching 2016 to 2019 levels. 17.3 percent of active home listings had their prices reduced in August, up 0.7 percent year over year. While this is still within normal ranges, it may indicate that some sellers are adjusting prices more aggressively than they have in the last year and a half.

The decline in time-on-market has slowed but homes are still being picked up rapidly as demand remains high. The time a typical listing spends on the market is beginning to correspond to seasonal patterns. The typical home spent 39 days on the market this August, 17 days less than last year. As the number of newly listed properties is increasing, the sharp inventory losses of recent months have moderated. The net result has been a deceleration in the growth of listing prices. Due to scarcity and demand, real estate will still appreciate at a faster-than-average rate through late 2021.

CoreLogic, a data and analytics company, projects home price gains may slow over the next 12 months as demand moderates and for-sale inventory rises. The CoreLogic HPI Forecast indicates that home prices will increase by 3.2% from June 2021 to June 2022. The HPI Forecast also reveals the continued disparity in home price growth across metros. Home prices in markets such as Houston, which was badly impacted by the oil industry's collapse and the recent hurricane season, are anticipated to fall 0.9 percent by June 2022.

Credit to Marco Santarelli

August 23, 2021

Proposition 19: What does this mean to me??

On November 3, 2020 California voters passed Proposition 19 known as the Home Protection for Seniors, Severely Disabled, Families and Victims of Wildfire or Natural Disasters Act. Prop 19 will make changes to the special rules for certain eligible homeowners to transfer their tax basis and will limit the tax basis transfer on inherited properties. The net result will be increased collection of property taxes, with the funds generated thereby being used to provide funding for fire protection.

There are two parts to Prop 19 that affect eligible homeowners. The first is an expansion of the rules beginning April 2, 2021 that includes removing location restrictions, limiting property tax increases, and increasing the number of times the special rules can be utilized. The second narrows the special rules for inherited properties. Starting February 16, 2021, the measure will end special rules for properties not used as a home or for farming and requires the tax bill to go up for high value inherited homes and farms.

Let us start with the expansion of the rules and what it does for eligible homeowners. Eligible homeowners could keep their lower property tax bill when moving to another home anywhere in the state. The specific language states: The owner of primary residence who is over 55 years of age, severely disabled, or a victim of a wildfire or natural disaster may transfer the taxable value of their primary residence located anywhere in the state that is purchased or newly constructed as that person’s principal residence within 2 years of the sale of the principal residence.

Eligible homeowners could use the special rules to move to a more expensive home. Their property tax bill would still go up but not by as much as it would be for other homebuyers. The specific language states: If the replacement principal residence is of equal or lesser value than the original primary residence, the taxable value of the replacement primary residence shall be deemed to be the taxable value of the original primary residence. If the property purchased is of greater value the following would apply: If the replacement principal residence is of greater value than the original primary residence, the taxable value of the replacement primary residence shall be calculated by adding the difference between the full cash value of the original primary residence to the taxable value of the original primary residence.

Homeowners who are over 55 or severely disabled could use the special rules three times in their lifetime. Specific language states: Qualifying owners shall not be allowed to transfer the taxable value of a primary residence more than 3 times.

The second part of Prop 19 narrows the rules for inherited properties and transfer of property. Prior to Prop 19 in California, parents or grandparents (in certain circumstances) could transfer primary residential properties to their heirs without the property’s tax assessment resetting to market value. Other types of properties, such as vacation homes and business properties, could also be transferred to certain heirs with the first $1 million exempt from re-assessment when transferred. Post Prop 19, the rules will only apply to properties used as a primary home by the parent and then subsequently by the child or grandchild. Second, the rules would apply to farms. Properties used for other purposes could no longer use the special rules.

In addition, the property tax bill for an inherited home or farm would go up if the price the property could be sold for exceeds the property’s taxable value by more than $1 million (adjusted for inflation every two years). In this case, the tax bill would go up but not as much as it would if the property were sold to someone else.

California anticipates significant additional tax revenue as a result of these changes. As a result, Prop 19 dedicates certain money for fire protection by creating a CA Fire Response Fund within the state treasury that will receive funds from property taxes increased through the narrowed rules.

Because both changes are set to occur in early 2021, those considering transferring properties to their heirs should discuss timing with their attorney or accountant to determine if doing so prior to the change would be financially beneficial. So too, those eligible for the tax basis transfer should consult with their advisors about timing their move.