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.

Relevant Real Estate: How To Give Young People What They Really Want

The past decade has seen major shifts in the way people live, from renting permanently to living with roommates longer than anticipated or wished, to delaying homebuying or not even considering it. Many people think homeownership is down, but that’s not necessarily the case.

It appears that millennial and Gen Z renters and buyers simply expect more from the real estate they consider. So, what must real estate builders and brokers do in order to meet their differing and expanding home needs? In this article, 13 members of Forbes Real Estate Council tackle that very question.

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.

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.

Six Tips To Improve The Chances Of Selling Your Home This Winter

It’s usually all quiet on the real estate front in December and January. Many of us are focused on the holidays and our New Year’s resolutions, not open houses. If sellers have the luxury of waiting until mid-February to put their homes on the market, I advise them to wait.

But there are exceptions. Homes still attract offers during this 60-day period. If you have to sell your home in the middle of winter, here are six tips that will greatly increase your ability to close the deal.

The article is written by Corey Burr 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.

Are You Ready For A Starter Home Or A Forever Home?

The decision to buy a home is a big one and it gets even more complicated when you factor in the decision between choosing a starter home or investing in a forever home. Luckily, that’s where we come in. We laid out three big considerations to keep in mind when you’re choosing between the two. Read on below to make the decision between a starter home and a forever home clearer than ever before.

The article is written by Tara Mastroeni 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.

Are These Three C’s The Key To The Real Estate Revolution?

For an industry that has historically remained stagnant, the pace at which technology is evolving will expedite change at an unprecedented rate. As such, this is an exciting time for consumers and agents alike, but we need to adjust our mentality and approach to real estate transactions accordingly.

You’ve likely heard of the four C’s of buying a diamond. in order to directly address consumer demands, the real estate industry needs to modernize real estate by embracing three pillars: certainty, convenience and cost-effectiveness — it’s very own three C’s, if you will.

The article is written by Sean Black 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.

Real Estate Markets Cooling Across The Country, And It’s Not Just The Winter Effect

Real estate markets nationwide are seeing a slowdown in completed transactions on existing-home sales. This is common across the single family, townhome, condo and co-op market. All of which declined 3.4% in September over August, and were down 4.1% year over year. Part of this is because affordability continues to be a challenge with home price growth outpacing wage increases. We’ve reached a level of unaffordability in certain markets and prices have shot up far above what household incomes have gained in the same time period.

The article is written by Caroline Feeney 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.

 

Mortgage Debt Nears A Pre-Crash High, But That’s No Cause For Concern

Rising home prices have forced consumers to routinely take on higher home mortgage debt, which is set to surpass the amount of borrowing that occurred 10 years ago—right before the housing market crash. According to the Federal Reserve, outstanding mortgage debt totaled $10.2 trillion in the second quarter of this year, an increase of 2.7% over the past year. During the easy subprime bubble lending days, the total debt hit $10.7 trillion. In addition, consumers have been taking on increasingly higher non-mortgage debt, as they purchase new cars with borrowed money and pay college tuition with student loans. The growth in these non-mortgage debt areas has been rising at a faster pace of 4.6% from one year ago. In all, the total combined household debt stood at an all-time high of $15.7 trillion.

Should such trends be a source of worry for consumers and for the broader economy? What is the proper perspective? Read on to learn more.

The article is written by Lawrence Yun 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.