Another Southern California home-price boom is cooling. Is a crash looming?

The Southern California housing market has been on a nearly seven-year tear, with prices in many communities reaching all-time highs. But now, as mortgage rates rise, the boom appears to be fading. Sales are dropping; inventory is swelling; more sellers are scaling back their ambitious asking prices.

The annals of postwar Southern California real estate history are full of boom-and-bust cycles, with periods of sharp price appreciation that suddenly skid to a halt. Whether those ups and downs offer any guidance — or hope — for today’s homeowners is a subject for debate.

Some of those who study the housing market predict annual price increases will slow. Others think values could dip. But there is general agreement that a meltdown is not in the offing, given a healthy economy and dearth of home building. The current slowdown, said Christopher Thornberg of Beacon Economics, “is a bump in the road.”

The article is written by Andrew Khouri for LA Times. You can read the full article here.

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Sheila Abai is a senior mortgage consultant at PNC Bank. She utilizes her 20+ years of finance and mortgage experience to identify the best mortgage and refinancing solutions for her clients. Sheila can be contacted via email at Sheila.Abai@PNC.com or via telephone at 310-666-5959.

Southern California suffers its worst housing slump in over a decade

Higher mortgage rates and overheated home prices hit Southern California home sales hard in September.

The number of new and existing houses and condominiums sold during the month plummeted nearly 18 percent compared with September 2017, according to CoreLogic. That was the slowest September pace since 2007, when the national housing and mortgage crisis was hitting. Sales have been falling on an annual basis for much of this year, but this was the biggest annual drop for any month in almost eight years. It was also more than twice the annual drop seen in August.

The article is written by Diana Olick for CNBC. You can read the full article here.

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Sheila Abai is a senior mortgage consultant at PNC Bank. She utilizes her 20+ years of finance and mortgage experience to identify the best mortgage and refinancing solutions for her clients. Sheila can be contacted via email at Sheila.Abai@PNC.com or via telephone at 310-666-5959.

Southern California, home to nation’s most overvalued housing — at least, by this math

Los Angeles County homes are the most overpriced in the nation, according to a curious new study. And Orange County and the Inland Empire don’t score much better.
By one Fed researcher’s math, Los Angeles County had the most overvalued U.S. homes, an eye-catching 68.6 percent above what research showed was normal. That was ahead of Miami (64.6 percent overvalued) and San Francisco (61.9 percent overvalued).

Bill Emmons, a researcher at the Federal Reserve Bank of St. Louis, looked at the changing relationship between state incomes and regional home pricingbetween 2000 and 2018’s first quarter to determine a “fair value” for local housing in 41 major metropolitan areas. Then Emmons considered how far current pricing deviated from each area’s norm. By his math, Los Angeles County had the most overvalued U.S. homes, an eye-catching 68.6 percent above what research showed was normal. That was ahead of Miami (64.6 percent overvalued) and San Francisco (61.9 percent overvalued).

The article is written by Jonathan Lansner for TheOCR. You can read the full article here.

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Sheila Abai is a senior mortgage consultant at PNC Bank. She utilizes her 20+ years of finance and mortgage experience to identify the best mortgage and refinancing solutions for her clients. Sheila can be contacted via email at Sheila.Abai@PNC.com or via telephone at 310-666-5959.

Mortgage rates slide the fastest in four years, but it may be too late for the housing market

Rates for home loans tumbled as turmoil rocked global financial markets, but any reprieve in rates may come too late for would-be home buyers or refinancers.

The 30-year fixed-rate mortgage averaged 4.81% in the November 21 week, down 13 basis points, mortgage liquidity provider Freddie Mac said Wednesday. That’s the biggest weekly decline since January 2015 and the lowest level for the popular product since early October. The 15-year fixed-rate mortgage averaged 4.24%, down 12 basis points during the week. The 5-year Treasury-indexed hybrid adjustable-rate mortgage averaged 4.09%, down from 4.15%.

The article is written by Andrea Riquier for MarketWatch. You can read the full article here.

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Sheila Abai is a senior mortgage consultant at PNC Bank. She utilizes her 20+ years of finance and mortgage experience to identify the best mortgage and refinancing solutions for her clients. Sheila can be contacted via email at Sheila.Abai@PNC.com or via telephone at 310-666-5959.

Looking For Your First Property Deal? 12 Important Things You Should Do First

The real estate market is an exciting one, and there’s no shortage of would-be investors drawn in by the possibility of big profits. Just like any investment, though, finding a property to flip or rent is rarely as easy as they make it look on real estate reality shows.

Although you likely know you need to conduct your due diligence before making an offer on a property, it never hurts to go back to basics to make sure your first deal goes smoothly. We asked a panel of Forbes Real Estate Council members what every aspiring real estate investor should do when searching for a property deal. Their best answers are below.

The article is written by Forbes Real Estate Council for Forbes. You can read the full article here.

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Sheila Abai is a senior mortgage consultant at PNC Bank. She utilizes her 20+ years of finance and mortgage experience to identify the best mortgage and refinancing solutions for her clients. Sheila can be contacted via email at Sheila.Abai@PNC.com or via telephone at 310-666-5959.

7 Reasons Home Buying Shows Like ‘House Hunters’ Remain Popular

HGTV renewed a trio of house hunting shows, offshoots of its hugely popular House Hunters series that follow people as they search for homes in paradise—beachfront and island locations.

The renewals were hardly a surprise. House Hunters, which debuted in 1999, remains one of the most consistently popular shows on cable, thriving through the Great Recession (as some other house hunting shows became passé) and inspiring loads of spinoffs.

Nielsen has estimated some 25 million people watch House Hunters each month. It’s rare to find a program that can last more than a decade; House Hunters and its spinoffs are closing in on two.

What is the secret to the show’s success? Here are seven of them.

The article is written by Toni Fitzgerald for Forbes. You can read the full article here.

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Sheila Abai is a senior mortgage consultant at PNC Bank. She utilizes her 20+ years of finance and mortgage experience to identify the best mortgage and refinancing solutions for her clients. Sheila can be contacted via email at Sheila.Abai@PNC.com or via telephone at 310-666-5959.

How To Capture The Millennial Market As A Real Estate Agent

Millennials are changing the housing market. When we look at the 2018 buyer and seller trends report published by the National Association of Realtors, we find the 18-to-35-year-old demographic was the largest group of homebuyers, making up 36% of the market over the last few years.

For 65% of this group, it was their first home purchase. It means that more than a third of those millennials were already buying their second home. When you consider that the average younger homebuyer will likely be selling in less than 10 years, it is clear that to be a successful real estate agent, your future depends on knowing these customers and how to best appeal to them.

The article is written by Joe Houghton for Forbes. You can read the full article here.

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Sheila Abai is a senior mortgage consultant at PNC Bank. She utilizes her 20+ years of finance and mortgage experience to identify the best mortgage and refinancing solutions for her clients. Sheila can be contacted via email at Sheila.Abai@PNC.com or via telephone at 310-666-5959.

Home Buyers Growing Attached To Thought Of Townhome Living

Soaring land and building costs, higher median single-family home prices, growing preference for dense, walkable environments and the need for a bridge between renting and first-home purchases are all helping bring back a staple of the 19th Century. That Victorian-era essential is the townhome.

National Association of Home Builders (NAHB) analysis of the most recent census data of “Starts and Completions by Purpose and Design” found townhouse construction starts continuing to grow. Over the four quarters ending with the first quarter of 2018, townhouse starts nationally totaled 105,000, seven percent higher than the prior four quarters. Employing a one-year moving average, new townhome market share is at 12.3 percent of all single-family starts.

The article is written by Jeffrey Steele for Forbes. You can read the full article here.

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Sheila Abai is a senior mortgage consultant at PNC Bank. She utilizes her 20+ years of finance and mortgage experience to identify the best mortgage and refinancing solutions for her clients. Sheila can be contacted via email at Sheila.Abai@PNC.com or via telephone at 310-666-5959.

How To Break Into Real Estate Investing As A Solopreneur

Many people think you have to be super wealthy to be a real estate investor, but plenty of individual investors are jumping into the fray. Among nonemployer businesses the U.S. –that is, firms where the owners are the only employees—there were 1,714 bringing in $1 million to $2.49 million in revenue in 2016, according to the U.S. Census Bureau. And there are many more getting close to breaking $1 million in revenue, with 99,154 bringing in $500,000 to $999,999 per year.

So how can you get in on the action?

The article is written by Elaine Pofeldt for Forbes. You can read the full article here.

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Sheila Abai is a senior mortgage consultant at PNC Bank. She utilizes her 20+ years of finance and mortgage experience to identify the best mortgage and refinancing solutions for her clients. Sheila can be contacted via email at Sheila.Abai@PNC.com or via telephone at 310-666-5959.

How Stock Trading Inspired This Startup’s Approach To Real Estate

The real estate startup REX, a 3-year old company has made its foray in to the real estate disruption landscape by charging only 2% of the final sales price when listing a home and by not put their listings on the Multiple Listing Service. If a client buys a home outside of their network, such as one listed on the MLS, REX refunds 50% of the buyer agent’s commission two days before closing.

REX has already attracted $30 million in two funding rounds from investors such as Amit Singhal, former senior vice president of search, Google; Jack Greenberg, former chief executive officer, McDonalds; Dick Schulze, founder, Best Buy (and formerly #722 on Forbes billionaires list); Gordon Segal, founder, Crate and Barrel; and Scott McNealy, co-founder and former chief executive officer, Sun Microsystems.

The article is written by Amy Dobson for Forbes. You can read the full article here.

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Sheila Abai is a senior mortgage consultant at PNC Bank. She utilizes her 20+ years of finance and mortgage experience to identify the best mortgage and refinancing solutions for her clients. Sheila can be contacted via email at Sheila.Abai@PNC.com or via telephone at 310-666-5959.