Vista Sotheby’s International Realty - Lesli Koontz
Lesli Koontz

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March Market Update #2

3/30/2021
March Market Update #2

The Real Estate market is going bonkers, and you may be wondering what’s happening in our local Redondo Beach and South Bay Real Estate markets.  Should you buy, should you sell, should you wait? Well, let's look at what the data is telling us.   

I’ve been in the South Bay for twenty years. In Redondo Beach we only have one point four months of inventory. This is low. What this means is that if no more homes came on the market, it would take less than two months to sell all the available homes. The median days on market is only fifteen, and remember this is the median. We are seeing homes go pending much more quickly than that. I do advise that you leave your home active for at least a week, even in this crazy market, so that you have the opportunity to get the highest quality offer.

On average, homes are selling for two point nine percent over their original list price in Redondo Beach, and again, that’s an average.  The story is similar in the rest of our beach cities. We have less than three month’s of inventory no matter where you’re looking. In Torrance there is only one month of inventory! So what does this mean? What’s the market like in Redondo Beach California? It's Smoking Hot!!  And what’s the market like in across the South Bay Beach Cities? Smoking Hot!

I am your Community Market Leader South Bay Beach Cities Specialist.  So give me a call.  I’m always here to help. Lesli with Lesli Koontz Real Estate, Putting Your Family First!

THE REAL ESTATE MARKET IS BURNING HOT

Market Update #1 - March

3/22/2021
arket Update #1 - March

The real estate market is booming! There really hasn’t been a better time in the history of real estate to sell your home. Right now there is extremely limited inventory. There aren’t enough houses on the market for the number of buyers that want homes. 

There is currently 1.8 months supply of inventory in Redondo Beach, California, 90277, and one month of inventory in Redondo Beach, California, 90278, which is a sign of a market hugely in favor of sellers.  Typically anything below 3 months of inventory is considered a seller’s market but this  - well this is insane. 

With that being said, seller’s are in control. They have the ability to choose the cream of the crop terms and conditions. They can be very selective when choosing which offer to take.  And remember, don’t be afraid to counter for anything that you want that will make the transition, terms, and experience meet your expectations, because most likely, you’re in the position to do so.  Here are few things to think about:

- Timeframes - choose the timeframe for close of escrow that works best for you. 
- Contingencies - shorten  contingency dates for inspections, loan, disclosures and appraisal, or even better take an offer that has NO contingencies. You might also think about selling the home As Is, which means that if the buyer asks for any repairs or finds something wrong with the home you are not going to fix it.
- Terms - there are things that are customary for what a buyer would be responsible for and what a seller would be responsible for.  For example in Redondo Beach, the seller typically pays the County Transfer Tax, but in this market you might be able to counter that out and ask the buyer to pay for it. 

There are a number of other things to consider and negotiate. If you’d like more information and are thinking about selling, give me a call. I’m always happy to help. Be sure to check out my YouTube channel for more tips when selling.  And don’t forget if you’re thinking of selling your home here in Redondo Beach California I am your market specialist. Lesli at Lesli Koontz real estate putting your family first!

THE REAL ESTATE MARKET IS BOOMING!


Sellers Beware!

3/20/2021
Sellers Beware

Sellers Beware, it’s a crazy competitive sellers market.  I’m doing a series of videos this month that will educate you and give you all the in’s out’s of what you need to know and think about when selling. 

Listen, I understand that selling your home can be one of the most stressful and aggravating things you’ll ever do. But it won’t be as difficult if you’re well represented and working with someone who truly has your best interests front and center. I’m going to walk you through all the things that might happen, and what you need to know and do: what happens if there's a divorce, what offer should I choose, what's the best time to close, how many things can go wrong in a real estate transaction, do you take the first offer you get or should you wait, how long should you wait.

There are a lot of things that can go wrong and a LOT of things to consider.  Check out my youtube channel - Lesli Koontz - for videos that will educate you and help make sure you have a safe, lucrative and enjoyable experience while selling. You'll find other helpful topics too – just type in Lesli Koontz and you’ll see a tab that says “Sellers”.  I look forward to educating and working with you. Be sure to reach out to me for anything big or small And don’t forget - if you’re thinking of selling your home here in Redondo Beach California, or anywhere in the South Bay, I’m here to help.  Lesli with Lesli Koontz real estate – putting your family first.

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Need More Space?

3/13/2021
Need More Space?

Is this new normal cramping your style? Is the kitchen table covered with work (like mine), and the family room crowded with homework and school supplies? Do you need a bigger yard now that we have to stay home all the time?

If your new normal has you holding your plate to eat because there is no room at the table to sit, if you are feeling crowded in the clutter and unable to focus on work because of all the distractions, maybe it is time to find a new place.  One with an office and maybe an additional room that could be set up as a zoom room. Maybe one with a larger yard so you can get together with family and friends and enjoy the fresh air. Maybe even a pool.  The trouble is, you aren’t the only one feeling this way. The National Association of Realtors is showing a trend of people moving out of the city, into the suburbs. This sudden trend is creating a seller’s market in many areas, including ours. There just isn’t enough inventory for everyone.

Creating an offer that has a high chance of being accepted in this competitive market is imperative.  Timing the closings so that you aren’t homeless in between transactions is a plus. Following up with your buyer and their financing to keep their closing on time is key. There are so many things to stay on top of. There has never been a time like this, when it is absolutely critical to have an agent to help you figure out the best strategy for listing your home and finding a new one. I help clients in Redondo Beach, California and the Los Angeles South Bay do just that.  I know the creative solutions you need to employ to have a successful transaction. If you are thinking of selling and buying in Redondo Beach, CA, or anywhere in the Los Angeles South Bay,  I would love to assist you. Lesli with Lesli Koontz Real Estate, putting your family first.

Need More Space

List First Or Buy First?

3/12/2021
List First Or Buy First?
Thinking of selling your home but you’re hesitant to sell because you fear won’t find a new home in time?  I totally get it... it’s a stressful situation and one you could lose sleep over! I understand that the home buying and selling process can be stressful, especially when you have to do both.... Sell and Buy. Things can get complicated if your closings don’t align or it takes longer to sell or buy a house than anticipated.

So what happens when you sell your home and you haven’t found your new home yet and you're wondering where the heck you’re going to live? Well, here are a few options you can consider. You can consider finding a home to rent. Renting a house for a bit will give you more time to look for that perfect home without having to “settle” just because you feel you have to rush and pick one. Another option is to do a rent back. In this option you complete the closing process with the buyer but you have both agreed in advance that you can stay in the house for a specified period of time while you rent the home back from the new owner. This is a good option if the new owners are not in any hurry to move in. You’ll be in a stronger position when you find a home, because you’ll be able to make a non-contingent offer. 

Another option is to ask the buyer to extend their escrow, meaning you ask the buyers if they are willing to push back the closing date to give you a little more time. There are a few more strategies that are available to help you “bridge the gap” that we can discuss. The bottom line - there are options.  I can explain these options in more detail.  I would be happy to help walk you through all your options and to help you find the solution that will work best for you and your family.  Reach out to me at any time for anything. I’m here to help. Lesli with Lesli Koontz Real Estate, putting your family first!

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Looking To Upgrade Your Home?

3/8/2021
Looking To Upgrade Your Home?
Are you looking to upgrade to a home with a bigger kitchen, so you won’t bump into each other like you do in the small kitchen you currently have? Or looking to upgrade to a home with a bigger backyard for your kids to play in or so that you can entertain outdoors or just simply stretch out? I understand that looking for a new home, wondering if you’re going to find the right home with such limited inventory, thinking about all the paperwork, and getting everything out of the house and moving it to a new one is  stressful and sometimes it might just feel completely overwhelming. Listen. I get that, I’ve been in your shoes, moving more times than I can count. It can be one of the most stressful things you’ll do in life.

If you’re with me this far, I’m guessing maybe you're tossing around the idea of moving.  Maybe your family is growing and the house you have right now is getting too small. Or maybe your home is too big, your wonderful kiddos have all moved out – I’m almost there myself - and the halls are empty, and you’re ready to move down. I work with a team of professionals that will help make your move a breeze.

I’ll help you find your replacement home, even in this competitive market.  I will also help you get your current home sold at the right price, so you’ll end up putting more money in your pocket. Let’s do it. Let’s get you that dream home that you and your family deserve!  More questions? Give me a call. I’m here to help. Lesli with Lesli Koontz Real Estate, putting your family first!

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4 Predictions for the 2021 Real Estate Market from CoreLogic - Prediction 4

3/4/2021
4 Predictions for the 2021 Real Estate Market from CoreLogic - Prediction 4
Are we going to see inventory levels go up in 2021 and how will this affect the market? 

In my time here in the South Bay, I have never seen inventory levels this low.  Ever!! What does that mean for sellers and buyers?

Lower inventory levels cause home prices to go up because buyers are bidding up prices.  It’s great for sellers, but it is a difficult and competitive market for buyers.  Lately, we’ve seen as many as 20 or more offers on properties.  This makes it hard for buyers to have their offer chosen, but allows sellers to choose the terms of the contract that are most favorable to them.  They are taking all factors - down payment, type of loan or all cash, contingencies, etc. into account when deciding which offer to accept, so buyers are having to come in as strong as possible – often there are no second chances. 

Currently, the median age of an owner occupant is about 57.  We’ve been told by health professionals that the older you are the more at risk you are from Covid, and the greater your chances of having serious complications.  Because of this, many older Americans may have waited to list their homes, and this is one of the factors that has led to the lack of inventory. 

So I believe – hopefully - that inventory levels are going to go up once people feel more comfortable listing their home because they aren’t fearful of getting sick.  Also, CoreLogic predicts the turnover rate, the percent of houses that sell in 2021, will be higher than the 20 year average turnover rate, and again, that is an indication of higher inventory levels on the horizon. 

I hope this was helpful. Be sure to check out my YouTube channel for all 4 Real Estate predictions for 2021. Reach out to me at any time for anything. I’m always here to help. Lesli with Lesli Koontz Real Estate, putting your family first.

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4 Predictions for the 2021 Real Estate Market from CoreLogic - Prediction 3

3/1/2021
4 Predictions for the 2021 Real Estate Market from CoreLogic - Prediction 3
I’ve got 4 Predictions for the Real Estate Market in the U.S. for 2021 from CoreLogic. 

Scroll down for the first two. The third Real Estate Market Prediction for the U.S. in 2021 from CoreLogic’s Chief Economist is that home prices will continue to go up but not as quickly as what we’ve seen recently.

I trust CoreLogic because they base their predictions on data and analytics, not the news.  According to the CoreLogic Home Price Index, home prices rose about seven percent nationwide in 2020.  CoreLogic expects continued growth in appreciation in the first half of the year, but believes appreciation may slow down just a bit in the second half of the year, averaging around 3.4% cumulative growth in our national index. 

However, in areas or communities where the unemployment rate is high, there could be less appreciation.  Areas where employment relies heavily on travel, hospitality, and entertainment, like Las Vegas and Orlando, well those areas have been hit hard so we may see a bit of a decline in those areas and home appreciation may not keep pace with the national average.

Also, it's important to understand The CARES Act and Forbearance.  Mortgage forbearance temporarily pauses mortgage payments to provide relief for individuals struggling financially due to the global pandemic.  It offers homeowners a deferment of payments for up to 12 payments or 360 days.  There are various ways to pay back those missed payments so hopefully at the end of the forbearance term most individual’s incomes have been restored and they are able to catch up. However there is the possibility that we will see more distressed sales and foreclosures on the horizon.  I hope this was helpful. Be sure to check out my YouTube channel where you’ll find all 4 Real Estate predictions for 2021.

Reach out to me at any time for anything I’m always here to help. Lesli with Lesli Koontz Real Estate, putting your family first.

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How Much Leverage Do Today’s House Sellers Have?

2/24/2021

How Much Leverage Do Today’s House Sellers Have?

How Much Leverage Do Today's House Sellers Have? | MyKCM

The housing market has been scorching hot over the last twelve months. Buyers and their high demand have far outnumbered sellers and a short supply of houses. According to the latest Existing Home Sales Report from the National Association of Realtors (NAR), sales are up 23.7% from the same time last year while the inventory of homes available for sale is down 25.7%. There are 360,000 fewer single-family homes for sale today than there were at this time last year. This increase in demand coupled with such limited supply is leading to more bidding wars throughout the country.

Rose Quint, Assistant Vice President for Survey Research with the National Association of Home Builders (NAHB), recently reported:

“The number one reason long-time searchers haven’t made a home purchase is not because of their inability to find an affordably-priced home, but because they continue to get outbid by other offers.”

A survey in the NAHB report showed that 40% of buyers have been outbid for a home they wanted to purchase. This is more than twice the percentage in 2019, which was 19%.

What does this mean for sellers today?

It means sellers have tremendous leverage when negotiating with buyers.

In negotiations, leverage is the power that one side may have to influence the other side while moving closer to their negotiating position. A party's leverage is based on its ability to award benefits or eliminate costs on the other side.

In today’s market, a buyer wants three things:

  1. To buy a home
  2. To buy now before prices continue to appreciate
  3. To buy now and take advantage of historically low mortgage rates while they last

These three buyer needs give the homeowner tremendous leverage when selling their house. Most realize this leverage enables the seller to sell at a good price. However, there may be another need the seller has that can be satisfied by using this leverage.

Here’s an example:

Odeta Kushi, Deputy Chief Economist at First American, recently identified a situation in which many sellers are finding themselves today:

“As mortgage rates are expected to remain near 3%, millennials continue to form households and more existing homeowners tap their equity for the purchase of a better home…Many homeowners may want to upgrade, but do not for fear that they will be unable to find a home to buy.”

She then offers a possible solution:

“While the fear of not being able to find something to buy will not disappear in a limited supply environment, new housing supply can incentivize existing homeowners to move.”

There’s no doubt many sellers would love to build a new home to perfectly fit their changing wants and needs. However, most builders require that they sell their house first. If the seller sells their home, where would they live while their new home is being constructed?

Going back to the concept of leverage:

As mentioned, buyers have compelling reasons to purchase a home now, and many homeowners have challenges to address if they want to sell. Perhaps they can make a deal to satisfy each party’s needs. But how?

The seller may decide to sell their home to the buyer at today’s price, which will enable the purchaser to take advantage of current mortgage rates. In return, the buyer might lease the house back to the seller for a pre-determined length of time while the seller’s new home is being built. A true win-win negotiation.

Not every buyer will agree to such a deal – but you only need one.

That’s just one example of how a seller might be able to overcome a challenge because of the leverage they have in today’s market. Maybe you feel a need to make certain repairs before selling. Perhaps you need time to get permits or approvals for certain upgrades you made to the house. Whatever the challenge, you may be able to work it out.

Bottom Line

If you’re considering selling your house now but worry a huge obstacle stands in your way, let's connect. Maybe with the leverage you currently have, you can negotiate a deal that will allow you to make the move of your dreams.

4 Predictions for the 2021 Real Estate Market from CoreLogic - Prediction 2

2/23/2021
4 Predictions for the 2021 Real Estate Market from CoreLogic - Prediction 2
I’ve got 4 Predictions for the Real Estate Market in the U.S. for 2021 from CoreLogic. 

Scroll down for the first one. The second Real Estate Market Prediction for the U.S. in 2021 from CoreLogic is that there will be more first time home buyers entering the market. Remember CoreLogic bases their predictions on public data and facts, so I find their predictions to be very credible.  CoreLogic believes that low interest rates will continue to entice buyers to enter the market.  It’s an easier transition to enter the housing market right now, because since interest rates are much lower today than they were even a year ago, about 1% lower, payments on the same-priced property are much lower.  So much so that oftentimes mortgage payments are lower than what a monthly payment for a rental would be. 

And remember, as a homeowner, your bottom line also benefits from the write off of mortgage interest and property taxes. However, the negative part if you're in the market to buy, is that all of the current buyer demand has pushed housing prices up, so, initially when you purchase a home you'll need more money for the down payment, closing costs, and monthly reserves.  In addition, you may need a larger down payment to be competitive. Sellers are weighing EVERYTHING when choosing an offer, because often, they are receiving multiple offers. Once you get in the home it will be great, but getting into the home may be a bit more of a challenge. I hope this was helpful. I'm happy to discuss strategies with you if you're in the market to buy. And be sure to check out my YouTube channel for all 4 Real Estate predictions for 2021 – I upload new videos each week. 

Reach out to me at any time for anything as I’m always here to help. Lesli with Lesli Koontz Real Estate, putting your family first!

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