The Homeys' Real Estate Podcast

In this episode, realtor Anthony Luevanos and lender Angel Luevanos cover the Los Angeles County real estate market through September 2022.

The Los Angeles County real estate market is heading towards a balanced market.

The median sales price increased from $840,000 in August to $845,000 in September. The median sales price in the last 12 months is up $25,000 and 3%.

However, the median price per square foot decreased to $570. Since last August, the median price per square foot jumped $20 and 3.6%.

The number of homes for sale has increased slightly but is still down 5.4% since last year.

Inventory months supply increased to 2.6 months. For your information, 5-6 months is a balanced market, and 6+ is a buyers market.

Median days on the market increased to 21 days, up significantly from our year low of nine days.

Prices increased slightly, but all other indications demonstrate that we are heading into a balanced market. Rising interest rates have suppressed buyer demand leading to homes sitting longer and price reductions. Sellers helping buyers with closing costs, and interest rate buydowns are becoming increasingly popular.

*percentages are comparisons year-over-year 

For more details and charts, click: https://theluevanosgroup.com/market-trends

In this episode, realtor Anthony Luevanos and lender Angel Luevanos touch on solar panels. They interview Solar Specialist Gandhi from Echelon Solar. Echelon Solar helps about 1,000 homeowners a year save money with solar panels.

What are solar panels, and how do they work? 

Solar panels attract sunlight and convert that into electricity. Typically leads to day one savings of about 50% depending on the solar system size.

Why should someone get solar panels? 

In the last six years, utility companies have increased their cost anywhere between 8-15% per year.

If your home qualifies for solar, you can generate about 50% savings without paying out-of-pocket to set up your solar system. You are essentially price-protecting yourself from high utility rate increases.

Is my home right for solar panels? 

First, you should schedule a solar consultation to see if the savings make sense to get solar.

90% of the time, it will make sense. Then an engineer will be sent to your property to inspect the roof and electrical and see if the home is suitable for solar. 

How much does solar cost? 

Every home is going to be different. It all depends on the size of the system and the sun hours they generate. A typical solar system in California costs between $25,000 to $35,000.

Many people are going solar with zero out-of-pocket dollars, and their monthly payments will be about 50% lower than their current bill.

So if your current electricity bill is $200 monthly, expect to pay $100 monthly with solar.

What is the best way to pay for solar panels? 

For most people, a Power Purchase Agreement or Bill-swap program makes sense.

So rather than owning and financing the solar system for 25 years, many people elect the bill-swap program and pay monthly for the solar system output on their roof.

There tend to be more savings this way than going the ownership route.

What are the two recommended ways to get solar? 

Ownership: Typically, if a client owns a system, they will pay off the system before selling and increase the cost of the home. 

Power Purchase Agreement or bill-swap: Has a 100% transferability rate when you sell the property, and there is no lien.

How long do solar panels last? 

Solar panels will last well over three decades. In 20 years, expect about 86% to 92% of year-one output, depending on how you build the solar system.

Do solar panels come with a warranty? 

Yes, many solar panels do come with a 25-year warranty. At Echelon Solar they will service, maintain, monitor, and warrant the system over the next 25 years.

In this episode, realtor Anthony Luevanos and lender Angel Luevanos cover everything ADUs. They interview ADU Specialist Eric Escobar.

What is an ADU? 

An accessory dwelling unit is a secondary housing unit on a single-family residential lot.

Usually consist of a garage conversion but can also be a new build in your backyard.

Why do people build ADUs? 

 Most people build ADUs because of affordability. Dollar-for-dollar makes the most sense. 

A two-bedroom, two-bathroom ADU will cost you roughly $200,000. Where can you find a home that prices in Los Angeles County?

Frequently, people build an ADU for their elderly parents.

Can I build an ADU on my property? How big can I make my ADU? 

Most single-family residences or multi-family properties will qualify. If you have a home in a commercial zone, then it will be more complicated to build.

The state law is 1,200 square feet. However, many cities have subordinances that limit the size to 1,000 or 800 square feet.

How much does an ADU cost? 

A garage conversion is about $100,000 to $120,000 for a two-car garage.

A new build two-bedroom, one-bathroom, 700 sqft ADU will cost about $200,000.

How do people pay for an ADU? 

Most people pay for an ADU with a cash-out refinance or a home equity line of credit.

Only about 20% of people pay cash.

If you have at least 30% equity in your home, you may want to consider using some of it to build an ADU.

Is an ADU a good investment? 

ADUs can be priceless! Where else can you affordably put your family or your parents in housing?

Investment-wise, the rent you generate from the ADU is almost always higher than the monthly payment to build the ADU. So yes, it’s an excellent vehicle for cash flowing immediately.

ADUs also increase the home's value, and as more ADUs are built, their value will continue to increase because there will be more comparable sales. In Seattle, for instance, ADUs are valued almost at the same cost as the house.

In this episode, realtor Anthony Luevanos and lender Angel Luevanos touch cover the Orange County real estate market through August 2022.

The Orange County housing market is continuing to cool off.

The median sales price increased from $972,500 in July to $984,000 in August. The median sales price in the last 12 months is up $84,000 and 9.3%.

However, the median price per square foot also decreased to $588. Since last June, the median price per square foot jumped by $59 and 5.9%.

The number of homes for sale has decreased slightly, but we now have 23.3% more than we saw at the same time last year. However, we still have about 30% less than we saw from 2017 to 2019.

Inventory months supply increased to 2.2 months. For your information, 5-6 months is a balanced market, and 6+ is a buyers market.

The median days on the market skyrocketed from eight days last month to 16 days.

The once-hot Orange County real estate market is cooling quickly. Increasing interest rates dampened buyer demand. Finally, buyers will have the leverage to negotiate better terms. After a solid start to the year, we can anticipate prices to cool off around this price point.

*percentages are comparisons year-over-year 

For more details and charts, click: https://theluevanosgroup.com/market-trends

#orangecounty #ocrealestate #ocrealestatemarket #orangecountyrealestatemarket #ochomes #realestatemarket

In this episode, realtor Anthony Luevanos and lender Angel Luevanos cover the Los Angeles real estate market as of September 2022.

The Los Angeles County housing market continues its downward slip.

The median sales price declined from $862,000 in July to $840,000 in August. The median sales price in the last 12 months is up $20,000 and 1.6%.

The median price per square foot also decreased to $583. Since last August, the median price per square foot jumped $34 and 6.2%.

The number of homes for sale has increased but is still down 6.1% since last year.

Inventory months supply increased to 2.5 months. For your information, 5-6 months is a balanced market, and 6+ is a buyers market.

Median days on the market increased to 16 days, seven days more than our fastest on record.

This is the fourth consecutive month that sales prices dropped. Increasing interest rates have suppressed buyer demand leading to homes sitting longer and price reductions. Sellers helping buyers with closing costs and interest rate buydowns are becoming increasingly popular.

*percentages are comparisons year-over-year 

For more details and charts, click: https://theluevanosgroup.com/market-trends

In this episode, realtor Anthony Luevanos and lender Angel Luevanos touch on home staging. They interview Joanna Segoviano, home staging mogul and top 10 stager nationally, about the importance of home staging, especially in a changing real estate market.

Does home staging work? 

A properly staged home helps buyers envision their lives in a new property and helps sellers get their property off the market quicker. According to US Today, a review of over 2,800 properties in 8 cities found that “staged homes” sold in half the time that non-staged homes did. The sellers with staged homes ended up with 6.3% more than their asking price on average. 

How do I know if I need home staging?

Home staging is needed for every property that hits the market, ESPECIALLY as we enter a market shift... In particular, you need home staging if:
- You want to sell fast
- You want to get more money
- Suppose your property has areas, corners, and rooms that may be difficult for a buyer to visualize when walking through. According to the National Association of Realtors, 81% of buyers find it easier to visualize a property as a future home when staged. 
- If the property has minor imperfections, I suggest home staging. For example, if the property has stains on the carpet or an outdated kitchen or bathroom, staging the home will allow you to disguise the flaws. According to the National Association of Realtors, nearly a third of buyers (27%) are willing to overlook faults in a staged home.

What is the cost of home staging?

Depending on the square footage of your home and location, a basic staging package can start at around $3,200. The basic package includes staging the kitchen, living room, dining room, and primary bedroom. According to the National Association of Realtors, those four areas are the key rooms to stage. 

Why is this the perfect market to stage your home?

The market is changing, we see price reductions, and homes take longer to sell. In this real estate market, selling your home quickly is crucial to net the most.

Staging a home costs less than a price reduction! Before you make a price reduction, consider staging.

In this episode, realtor Anthony Luevanos and lender Angel Luevanos cover the history of mortgage rates since 1970. They bring on buyers agent extraordinaire Alejandro Medina. This podcast is in a quiz format.

To view it on youtube, click here: https://www.youtube.com/c/theluevanosgroup

In this episode, realtor Anthony Luevanos and lender Angel Luevanos cover the most recent Consumer Price Index and its impact on rent, housing, and mortgage rates.

The consumer price index came in at 8.5% through July, which was lower than the expectation of 8.7%! In June, we had a 9.1% reading, which signals we may have hit our inflation peak last month!

The Federal Reserve has raised rates aggressively recently, with a 0.75% hike in June and July. 

However, at the same time, mortgage rates have slowly begun to decrease. Mortgage rates peaked in early June, hitting over 6% but have since reduced to the low 5%.

Therefore, there is an opportunity for buyers to lock in rates on the lower end if they are in close contact with their lenders and aware of the volatility.

Rents increased 0.7% since last month; meanwhile, Southern California just saw its most significant price drop in years. 

With less buyer demand, homes sitting on the market longer, and prices decreasing, sellers are becoming more and more willing to negotiate.

We haven’t seen a better time to negotiate buyer terms in years.

Trying to time a real estate bottom or stock market bottom is nearly impossible. If you plan to hold on to your property for at least ten years, your home value will likely double regardless of when you buy it.

Southern California has reliable home appreciation; it just takes 7% annual appreciation to see home values double in ten years. 

The Los Angeles County median sales price was $325,000 in July 2012; in July 2022, it’s now $850,000.

Since 2017, Los Angeles County home appreciation has been 8.71%

*using a rolling 12-month average
*we cannot guarantee future home values

In this episode, realtor Anthony Luevanos and lender Angel Luevanos cover the Orange County real estate market.

The Orange County housing market is really starting to cool off!

The median sales price decreased from $1,000,000 in June to $975,000 in July. The median sales price in the last 12 months is up $60,000 and 7.7%.

The median price per square foot also decreased to $602. Since last June, the median price per square foot jumped by $80 and 15.3%.

The number of homes for sale has increased drastically, and we now have 25.2% more than we saw at the same time last year. However, we still have about 30% less than we saw from 2017 to 2019.

Inventory months supply increased to 2.2 months. For your information, 5-6 months is a balanced market, and 6+ is a buyers market.

The median days on the market skyrocketed from eight days last month to 14 days.

The once-hot Orange County real estate market is cooling quickly. Increasing interest rates dampened buyer demand. Finally, buyers will have the leverage to negotiate better terms. After a solid start to the year, we can anticipate prices to cool off around this price point.

*percentages are comparisons year-over-year 

For more details and charts, click: https://theluevanosgroup.com/market-trends

In this episode, realtor Anthony Luevanos and lender Angel Luevanos cover the Los Angeles County real estate market.

Home prices dropped big. Homebuyers now have some leverage!

The median sales price declined from $895,000 in June to $862,000 in July. The median sales price in the last 12 months is up $37,000 and 4.5%.

The median price per square foot also decreased to $581. Since last July, the median price per square foot jumped $44 and 8%.

The number of homes for sale has increased but is still down 6.4% since last year.

Inventory months supply increased to 2.5 months. For your information, 5-6 months is a balanced market, and 6+ is a buyers market.

Median days on the market increased to 13 days, four days more than our lowest on record.

We took our most significant stride yet into a balanced market. Increasing interest rates have suppressed our buyer demand. Buyers now have the leverage to ask for better terms. We are still in a seller’s market, but sellers and buyers shall work together to make it a win-win.