Real Talk # 323: The Crystal Ball (Part 2)

So what does the future hold for you? 

As I gaze deep into the Data, I see that we are coming to a crest of this upswing real estate cycle that has lasted nearly 7 years now. That much is a given by almost anyone who spends anytime at all watching the wind blow, whether from the shoreline or in the midst of the sea (as I am). The mystery lays in the timing of the next downturn, this is the question that everyone seeks the answer to, but THIS IS THE WRONG QUESTION!

The right question is;

“Given my unique circumstances, the resources I currently have and my past experiences, what is the wise thing for me to do now?”

…..regardless of the exact timing of the pending cycle downturn!

If you are happy in the home you currently live in and can afford that home even if the income was to recede in a recession by 10 to 20% then I would stay put.

If your finances are tight or if you plan to move in the next 1 to 3 years then I would consider scheduling some time to consider your options in the very near future. 

If you own rental properties that are producing income free and clear of expenses of greater than 6% then I would continue to hold them as long as they do not represent a threat to your balance sheet in the event of a moderate correction. Lowering leveraged positions would be similar to battening down the hatches prior to entering rough waters. 

If you have been fortunate enough to own multiple income producing properties then this would be an excellent time top grade your portfolio by selling off the less desirable properties and wither paying down debt or upgrading from single family to multifamily units for more diversification and more reliable cash flow. A portfolio review would be the wise thing for you to do in this season. 

In most cases if you do not own a personal residence and plan on staying in the same area for more than 3 years (in California at least) it will make sense for you to purchase a home. However it would be wiser to learn your limits in advance and perhaps to purchase less home then you can actually afford.  

I would love to know your thoughts and hear your predictions for the future in Real Estate. Pay us a visit and leave your comments on The Mathis Team Facebook page!

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Real Talk # 322: The Crystal Ball (Part 1)

The use of a sea green magnetically charged material (Beryl) that had been polished into a reflective ball by the Celtic Druids circa 2000 BC – 600 AD is believed to be the first recorded use of this divination device.  The “seer” would stare into the stone and fall into a meditate trance from which they claimed to be able to see the past, present or future. Sceptics may note that the Druids were wiped out by invading forces that they did not see coming or having seen where still powerless to avert their own destruction. 

Well, as Solomon said in Ecclesiastes 1:9 “What has been will be again … “, today perhaps the high definition monitor has taken the place of the Beryl stone , as we slip into a trance focused on the Internet or Cable News to feed us their take on our futures.  We still seek out ‘seers’ to tell us what is coming our way. 

I believe that data is a form of magic that also requires meditation on its meaning and its relationship to our current affairs in order to be interpreted in such a way as to be useful to our plans, hopes and dreams in a tangible way.  I to want to “see” the future by diligently studying the past and present for trends that affect my investments , however I will leave the divining to God for only He knows for sure what the future holds for any of us.

The Data (my version of the Crystal Ball) says that Builders added 5.6 Million housing units from 2009 to today, meanwhile 1.7 Million Units were declared obsolete or destroyed leaving a net gain of 3.9 Million single family homes , condos and apartments. During that same time period the Census Bureau tells us that the population grew by 17,300,000 people, whom at an average of 2.5 persons per housing units would equate to a need for 6.9 Million new places for those people to live.

This is why rents are going thru the roof and prices are continuing to rise here in California and in many other desirable parts of the country. We simply are experiencing the effects of the present shortfall of 3 Million housing units. The question is how long will these conditions last and is the real estate that we are concerned with (local markets) on the forward or trailing edge of the ever moving wave. 

While all ships are rising with the recent high tides, there are signs of rocks ahead. 

  • New Home Sales are essentially flat with inventory up 10% 
  • Existing Home Inventory is also up 22% from its recent cycle low point in 2012 
  • Both categories show a nominal increase in Months’ Supply of Homes which measures the amount of time it would take to sell out of existing inventory if no new homes came to market.

22% up in the case of Existing Homes and 5.1% for New Homes from their Jan 2013 low points.

  • The number of renting households is increasing while home ownership falls to its lowest levels
  • The number of adults 20-39 with Student Loan debt soared to 39% in recent years and the amount of that debt rose from 17K to nearly double at $30K 
  • The increase in minorities (lower homeownership) and the delay in both marriage and having kids indicate a delay in first time home buying that is increasing. 
  • Households living in neighborhoods with poverty rates of at least 40% have doubled. 
  • US Companies are not investing in people (new hires) or capital equipment 
  • The Fed is “rethinking” its plans to raise interest rates based on weakness in Jobs and Wages. 

So what does the future hold for you? 

We will discuss the RIGHT move for YOU during Part 2!

I would love to know your thoughts and hear your predictions for the future in Real Estate. Pay us a visit and leave your comments on The Mathis Team Facebook page!

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Real Talk # 321 Inventory Crisis

Barry and Jennifer discuss the shrinking inventory of Sacramento and Placer counties as more homes are going into escrow

Interest rates for home buying are on the rise, so now is the time to lock in those low rates while they last

Barry talks about the gorgeous retreat of a house, 7435 Shelbourne Dr. Visit the website to look at this home and schedule an appointment to see it today.

The Real Talk Team recommends that, while most people don’t do this, you should interview multiple agents to find the right one for you and the hunt for your home.

A transcription of this week’s episode can be found here.

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Real Talk # 320: How to Win A Real Estate (Bidding) War

This week, Barry and Jennifer discuss the rise of Bidding Wars during home purchases, giving you the edge in the battle for your next home

We get a loan market update from Pitt Miller, where we earn that the low 3% interest rate of today is starting to slowly rise. Now is a great time to lock in this low rate! To contact Pitt, call (916) 300-0401

Barry invites you out to a local open house, 5120 Aktis Court.

The Real Talk Team discusses this amazing chart, showing the trends of prices on home over time. Based on this chart of the market pulses, volume is flat and a unique look of market timing with a chart of the California Real Estate Market Phases.

We are currently in Phase 4, with sales volume down and prices flat, leading into phase 5 with sales volume and prices down. Now may be the time to sell, IF you’re planing on doing so in the next 3 years.

A transcription for this week’s episode can be found here.

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Real Talk # 319 It’s time to Rent!

In this weeks episode, before Barry goes to Atlanta for a funeral, Barry and Jennifer talk about the renter’s home market. Rents are starting to rise, but it’s still a great time to rent!

A transcript for this week’s episode can be found here.

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Real Talk # 318: Hottest Market for 2015

This week, Barry and Jennifer talk about the ever-improving homes market for 2015. Lots of homes got offers in March, increasing prices and decreasing inventory, leaving all the great homes to be up for the taking.

Our hosts have a discussion on the Natomas area, discussing how the Natomas area now has a new flood of construction in the former flood zone.

Also, Barry recommends some great homes for you to look at today. 895 Old Grass Valley Road, 2916 Del Paso Road, and 2836 Randolph Avenue, and even more. (To view details on any of the properties, click address in this message) To visit some these properties, or to learn about more great properties, contact Barry at (916) 225-7777, Jennifer at (916) 532-5896, or the youngest and newest member of the Real Talk Team, Matt at (916) 751-0065

A transcript of the episode is available here.

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Real Talk # 317 Its Time to Sell!

This week, hear from Barry and Jennifer as they discuss how we are nearing the peak of a Sellers market in Sacramento County, hear the signs that are telling you that it is time to get your home on the market.  We are closer to the top than the bottom.

And with interest rates so low, its a great time to buy too!

Pitt Miller calls in to talk to us about 2916 Del Paso Blvd, an amazing house he was showing during the show. For property details, photos, a video walk through of the property, and to request a showing, visit www.2916delpaso.com  .

If you’d like a copy of this week’s episode, in text form, click here.

 

 

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Real Talk # 316 Marketing for Luxury Homes

The Luxury home market presents special challenges that require special tools to get the desired results.  Listen in to hear Barry Mathis and Jennifer Sandvoss discuss the differences in the two ends of the market whether you are dealing with local or national levels.

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Real Talk # 315 Today’s Luxury Home Market – Rarified air for select Clients and even fewer Agents

Barry Mathis and Jennifer Sandvos ” The Queen of Real Estate”  share a market update       and discuss the real numbers behind the Luxury Home Market.

What are the driving forces behind the 35% increase in Jumbo Loans ?

How many agents really have experience selling Luxury homes ? (Fewer than you think)

What do the top agents do differently than the rest. ( Hint Marketing Matters ) ?

Plus two more reasons that ” You might need a new Real Estate if …)

Luxury Home Data talked about in this week’s show can be found here.

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Real Talk # 314 Next Hotspot To Buy and Sell Homes

How can you take action in the coming year?

By knowing the next hot spot to buy and sell properties in the Sacramento and surrounding areas!

Download the podcast below

On this Real Estate Podcast Barry “the voice of real estate” Mathis is paired with hard money lender David Washburn of Socotra Capital.

Hard Money LoansPRIVATE MONEY SOLUTIONS
FOR REAL ESTATE LOANS
David Washburn
Dave@SocotraCapital.com
(916) 628-3744 cell

3104 O St. #357, Sacramento CA 95816

http://SocotraCapital.com

 

 

Real Estate Acquisition, Construction, Refinance, Rehab, or Cash Out

– Our loans focus on equity, not credit or income
– In House funds let us be more flexible and creative
– Flexible terms
– Less paperwork than conventional loans
– Fast & Easy approval
– Fast funding
– Low FICO & Credit Problems OK
LOAN PARAMETERS:Property Type: Residential, Commercial & Land
– Loan Amount: $30,000 – $2,000,000
– Rate: 9 – 16%, interest only
– Term: 6 months – 60 months
– Fees: 3 to 5 Points plus $2,000 per transaction
– LTV: 55%
Real Estate CA DRE #01873715

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