Real Estate Information

Coastal Real Estate Blog

Kathy and Michael Rain - The Rain Team

Blog

Displaying blog entries 1-10 of 386

2019 California Association Of Realtors Economic & Market Forecast

by Kathy and Michael Rain - The Rain Team

The Bigger Picture

by Kathy and Michael Rain - The Rain Team

It Pays To Be A Homeowner: Home Equity Shot Up In Just One Year

by Kathy and Michael Rain - The Rain Team
By: Clare Trapasso

It pays to be a homeowner—quite a bit, actually. In certain parts of the country, it's even wildly profitable. Cha-ching!

Nationally, the average homeowner with a mortgage saw their equity shoot up by nearly $16,200 in the past year alone, according to a recent report by CoreLogic. (The real estate data firm compared the second quarter of this year to the second quarter of the previous year.) That's a 12.3% annual increase, thanks to fast-rising home prices across the country.

"It's good news if you're an existing homeowner. ... You can certainly use that additional wealth as collateral you could borrow against if you're looking to make some home improvements," says CoreLogic's chief economist, Frank Nothaft. "But it's probably not good news if you're in the market looking to buy."

Homeowners on the West Coast accrued even more equity. In just one year, those who own homes in California gained an average $48,800 in home equity. That was the most in the country—and more than many folks earn in a year.

"The first half of 2018 was probably the most ferocious market since the year 2000 in terms of buyer demand, competition between buyers, and overbidding," says Patrick Carlisle, chief market analyst of the Bay Area for the real estate firm Compass. "In the [San Francisco] Bay Area, we saw some huge jumps in median sale prices. It’s crazy.”

But the huge equity gains could slow down at least a little in California. More homes are expected to go on the market there this fall, and that could check prices somewhat. If buyers have more to choose from, prices are less likely to be driven up by bidding wars.

"There does come a limit on what people can afford to pay for a home," Carlisle says.

The Golden State was followed by Washington, where average home equity was up $41,100; Nevada, at $32,193; Hawaii, at $29,565; and Massachusetts, at $23,527.

But in three states, equity actually fell—by $1,078 in Louisiana, $910 in Connecticut, and $773 in North Dakota. The other bottom states were Oklahoma, where equity rose an average of just $2,226, and Iowa, at $4,386.

Nationally, 4.3% of homes, or about 2.2 million properties, were underwater in the second quarter of this year. That percentage is down 20.1% year over year.

Photo by PhotoMixLTD on Pexels.

Make Your Home A Model

by Kathy and Michael Rain - The Rain Team

Creating Curb Appeal

by Kathy and Michael Rain - The Rain Team

6 Costs Homeowners Overlook And How To Pay For Them

by Kathy and Michael Rain - The Rain Team

For many people, a house is the biggest investment they'll ever make. And whether you're a first-time homeowner or you're buying your third property, you're bound to end up covering some unexpected expenses. Here are six costs homeowners tend to overlook and how to pay for them:

 

1. Property taxes

Be prepared to pay property taxes and keep in mind that they rarely decrease. Homeowners often pay them every month along with their mortgage payments. If your loan is backed by the Federal Housing Administration, you're required to have an escrow or impound account.

If you don't have to make property tax payments through an escrow account, they may be due at the end of the year. In some counties, you might pay them in installments.

2. Homeowners association fees

Whenever you move into a new home or condominium, you become part of a community. In many cases, there are fees associated with the maintenance and general upkeep of shared common areas. The money collected might cover snow removal, landscaping or repairs to a meeting room.

Monthly homeowners association (HOA) fees for standard single-family homes tend to cost between $200-$300, but rates can vary depending on several factors, including how recently a housing community was built and the kinds of amenities that are available. That's why it's best to know how much fees cost upfront. In West Hollywood, Calif., for example, residents in Sierra Towers condos get access to a 24-hour concierge service and valet parking, but spend around $4,000 per month on HOA fees.

3. Insurance premiums

If you own a home, another cost you should include in your budget is insurance. The average annual homeowners insurance premium costs $1,120, according to recent data provided by the National Association of Insurance Commissioners, but the amount you pay may be higher or lower based on where you live and the kind of policy you choose.

Homeowners insurance typically covers personal possessions, liability for injuries that take place on your property, the structure of your house and additional costs associated with living elsewhere if your home is severely damaged. If you live in an area prone to natural disasters, you might need a supplemental policy like flood insurance.

4. Repair and maintenance costs

Repairing or replacing a roof, furnace or air conditioner can be expensive, and at some point, you might have to address plumbing issues or trade in some old appliances.

The cost of home maintenance is another thing you'll have to factor into the cost of homeownership. You'll need money to keep your yard, gutters, carpet and everything in between in tip-top shape.

Financial experts generally recommend setting aside 1 percent of your home's value to cover the cost of unexpected repairs and maintenance. If you're trying to save money, you're better off doing some of the work yourself. Just make sure you have enough funds for the materials you need to get the job done.

5. Costs associated with selling a home

Having a home that's well-maintained not only lets you enjoy your house while you're living there, but also prevents you from being saddled with additional costs when you're ready to sell it.

Replacing your roof or furnace might be something you want to put off, but failing to make necessary repairs or meet demands made by potential homebuyers could hurt your market value or cost you a sale.

6. Pest control costs

Pests are a real concern for many homeowners. Over time, all sorts of critters—like termites, ants, spiders and rodents—might invade your home. Depending on how serious the problem is, you might need to fumigate your house.

If you're interested in buying a home, make sure you hire an inspector to check for bugs and termites that could cause structural damage. While lenders don't always require homebuyers to pay for pest inspections, it's important to have one done. You don't want to close on a house only to find out later that there's an issue. Termite inspections generally cost between $75-$150, according to Angie's List.

Build a rainy day fund!

It's always better to be prepared for a storm than to be caught in a downpour without an umbrella. Despite the high costs, owning your own home can be a rewarding experience.

Hope for the best and prepare for the worst by keeping enough money in your savings account to cover unforeseen costs. Make sure you account for all of the hidden expenses and fees associated with buying a home and budget accordingly.

Photo by suntorn somtong on Pexels

Coastside Market At A Glance

by Kathy and Michael Rain - The Rain Team

Coldwell Banker Half Moon Bay invites you to attend our FREE Antique Appraisal Event!

by Kathy and Michael Rain - The Rain Team

Homebuying Mistakes By Generation

by Kathy and Michael Rain - The Rain Team

Market Snapshot: San Mateo County Real Estate Report

by Kathy and Michael Rain - The Rain Team

Here is an updated Market Report summarizing recent real estate activity along the coastside. Please keep in mind that the values represented are based on current, detailed information from the Regional Multiple Listing Service. If you need clarification on any of the figures or if you wish to take additional steps toward property ownership, please let us know. We are happy to help you. See the full report.

Displaying blog entries 1-10 of 386

Syndication

Categories

Archives

Contact Information

Photo of The Rain Team Real Estate
The Rain Team
CA# 01169588 | CA# 01125976 | CA# 01908304
248 Main Street, Suite 200
Half Moon Bay CA 94019
Michael: 650-888-6361
Kathy: 650-888-6903
Fax: 866-396-0207

Kathy and Michael Rain of Coldwell Banker provides real estate services in the San Mateo County, California area including the surrounding communities: El Granda, Half Moon Bay, Montara, Moss Beach, Pacifica and San Mateo. Search for homes in San Mateo County. We list and sell residential real estate, investment properties, vacant land, lots for sale in the San Mateo County, California area.

Licensed in the State of California

Kathy Rain - CA BRE# 01169588 | Michael Rain - CA BRE# 01125976 | Coldwell Banker - CA BRE# 01908304
Cell Phone: (650) 888-6903 * Direct Phone: (650) 712-0411
San Mateo County Real Estate and Homes for Sale

Equal Housing Opportunity