Review of all things Real Estate

optimism below it feels like it might happen sooner.

The observations made by real estate professionals at our weekly marketing meeting, included local area real estate professionals reporting there is increased activity both on the buyer and seller side.

Bob Hillery CR Properties

Below is a good article which seems to bode well for the real estate market in the near future, perhaps even spring of 2023. After interest rates peaked in October 2022 above 7%, the market slowed to a crawl. The numbers of transactions fell noticeably, which coupled with seasonably slow periods over the holidays, caused near panic in the minds of buyers and sellers alike. Inflation was at a 40-year high which further undermined consumer confidence.

The good news is that inflation has slowed perceptibly and mortgage interest rates have fallen over a point (currently around 6.2% for conventional loans and in the mid 5% for government backed loans like VA, FHA and USDA). I previously reported industry experts forecasted that “maybe” by the end of 2023, interest rates “might” touch the 5% range but given the note of

The takeaway: if you have been considering a change of real estate, the time to complete the preparations to come onto the market may be approaching. Available inventory is very low, and buyers are showing up and making offers encouraged by the decreasing mortgage interest rates and softer prices. Read on to see what industry leaders have to say.

US home prices slip for fifth month as market bottom comes into view

The Case-Schiller index posted a 7.7% annual gain in home prices –down from a 9.2% gain in October – while the FHFA index showed a 0.1% decline in prices between October and November

Ben Verde Inman.com

Home prices in the United States continued their gradual decline in

November 2022 as elevated mortgage interest rates kept demand tamped down. The CoreLogic-Case Schiller index and the Federal Housing Finance Authority house price index both posted slight price declines in November, according to new data released Tuesday, Jan. 31.

The Case-Schiller index posted a 7.7% annual gain in home prices –down from a 9.2% gain in October and a 0.6% monthly decrease, while the FHFA index showed a 0.1% annual decline in prices between October and November, and an 8.2% annual increase between November 2021 and November 2022, down from a 9.8% increase posted the previous month.

The Case-Schiller index has now declined for five consecutive months.

The data from late 2022 represents a period in which American home buyers reacted to increases in mortgage rates – which rose above 7% in October – and generally pulled back from the market ahead of the holidays.

“Today’s S&P CoreLogic CaseShiller Index showcases the slowdown in housing transactions toward the tail end of 2022, as homebuyers worn tired by the relentless surge in mortgage rates took a bigger step back from the market,” Realtor.com Senior Economist George Ratiu said in a statement. “Sales of existing homes in November declined, leaving more sellers to ponder

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their pricing strategies, especially as the start of the holiday season redirected people’s focus away from real estate.”

The rise of remote work combined with generationally low interest rates fed a housing boom in 2020, 2021 and the first half of 2022 that screeched to a halt as the federal reserve began increasing interest rates in mid-2022 to tamp down on inflation.

The rise in rates and slowdown of buyer activity has stoked fears of a housing recession, but some experts have predicted that the housing market already bottomed out in 2022 and is setting a course for normalization.

“Despite the slowdown in price appreciation, talk about a major market correction is just hyperbole,” Bright MLS chief economist Dr. Lisa Sturtevant said in a statement.

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“In fact, we may have already seen the bottom of the housing market,” Sturtevant added. “Mortgage rates fell throughout January, prom pting more buyers to view properties and make offers. Inflation has begun to ease, boosting consumer confidence. Many agents and brokers are expecting a robust spring housing market, and the overall mood in the market feels much more optimistic than even a month ago.

EMWD approves Goetz Road sewer design contracts

Joe Naiman Writer

The Eastern Municipal Water District approved two contracts for the final design of the Goetz Road sewer project.

A 4-0 EMWD board vote Feb. 1, with Randy Record absent, authorized a $154,000 design contract with Hunsaker & Associates Irvine Inc., and a $370,000 program management support services contract with Engineering Resources of Southern California Inc. EMWD general manager Joe Mouawad was given the authority to award contracts with necessary consultants and suppliers for engineering support administratively. The board also approved a total appropriation amount of $669,000.

Quail Valley has failing septic systems located within the City of Menifee northeast of Canyon Lake and since Quail Valley is considered a disadvantaged community, it is eligible for certain grants. EMWD staff developed nine planning subareas within Quail Valley for septicto-sewer conversion projects with Sub-Area 4 and Sub-Area 9 being designated as priority sub-areas.

Last year, Eastern completed a feasibility study for Sub-Area 4 and a preliminary design for the necessary backbone improvements within Goetz Road which will be required to serve Sub-Area 4. The district is ready to advance designs for both the Sub-Area 4 sewer system and the Goetz Road sewer and is issuing two separate requests for proposals for the designs. The Goetz Road sewer final design will be conducted separately from, but in coordination with, the ongoing effort for Sub-Area 4.

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golfing, pools, clubhouse, and planned events.

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This well maintained peaceful single story 3BD, 1.75BA 2 car garage home is located near the center of town, with new stainless steel applcs, Corian counter tops and hardwood cabinets, a cozy wood-burning fireplace in the adj living rm, laundry rm, and a bonus rm/storage rm that could be used as a 4th bdrm. The dining area has sliding doors that lead to the rear deck.

Offered at $475,000

On Dec. 7, EMWD staff released a request for proposals for the design contract. The two proposals received by the Dec. 19 deadline were evaluated. Hunsaker & Associates Irvine Inc. (each Hunsaker & Associates office is a separate company and operates independent of other locations) was determined to be the better firm to perform the work based on the company’s detailed understanding of the project and the qualifications of their team. The negotiated fee of $154,000 reflects the scope of services to complete the final design through the bid and award phase of the project.

During the development of the request for proposals, EMWD staff recognized the complexity, challenges and level of detailed coordination with multiple property owners and determined that the historical knowledge and support of Engineering Resources of Southern California, which is headquartered in Redlands, would benefit EMWD and the overall success of the SubArea 4 design. ERSC was involved in the October 2005 Quail Valley Sewer Improvements Alternatives Study: Sub-Areas 1-9, aspects of the Sub-Area 9 efforts including the property acquisition process, and the Sub-Area 4 feasibility study. EMWD staff requested that ERSC submit a proposal for program management support services which included providing technical guidance, attending select project status meetings, review and comment on design deliverables, and other project support activities as identified and directed by the EMWD project manager. The proposal amount of $370,000 assumes part time “asneeded” support over a two-year period.

The $669,000 budgeted amount also includes $100,000 for environmental and geotechnical consultants, $29,300 for EMWD engineering branch labor during the design process, $7,100 for the final review of plans and specifications, and $8,600 for bid and award expenses. The district expects Santa Ana Water Project Authority and State Water Resources Control Board grants to be awarded, and the SWRCB also has a State Revolving Fund program which provides 20-year loans with interest rates between 1.5% and 3%. The U.S. Environmental Protection Agency may also provide Community Projects Funding grants.

The design work will commence this month. An environmental document is expected to be finalized in October. The final design has a November 2023 completion estimate. Construction is planned to begin in February 2024 and be completed by August 2024.

Ken’s Corner

We have been hard at work brainstorming ideas and formulating what new ADDITIONAL marketing avenues we will be implementing for this year. All of this in addition to what we currently do and also what Compass includes for your benefit. We love this question: What sets you apart from other realtors? Give us an opportunity and we will gladly show you! Your satisfaction is our number one goal.

AT YOUR SERVICE! – Ken

SOLD Sycamore Ranch

3993 Peony Dr, Fallbrook

Spectacular “Classic California” estate above lovely Fallbrook. Sunsets here are amazing as are the inspiring western-facing panoramic views. Completely private and gated with a jaw-dropping resort-style pool and spa, this property is surrounded by other high-end estates. Five acres of useable land with several building sites for possible guesthouse, pool house or ADU’s. Income-producing blood orange, lime and avo trees. Built by custom builder Michael Pierce, beams & high ceilings throughout. Sold for $1,590,000

Sharon’s Corner

3120 Knottwood Way, Fallbrook

Welcome to this beautiful single-story home in the highly desired neighborhood of Sycamore Ranch! Offering stunning views of surrounding hills and avocado groves. Home to the Golf Club of CA. Recently remodeled kitchen w/walk-in pantry, Spacious center island, Quartz counters, Glass tile back splash, Light Gray Cabinets w/stainless appliances opens to Family room with cozy fireplace. Master Bedroom features retreat with built-ins and Plantation shutters. Private, serene backyard with Koi pond and water feature. New Roof, Fresh new exterior paint, Whole house water filtration system. Tesla Solar Electric net metering. Circular Drive w/RV Parking. Attached 3-stall garage, Plus 2 1/2-stall det. garage w/workshop. 1.05 acre usable lot permitted for ADU!

Sold for $1,210,000

There is a lot of talk about what is happening with the real estate market. We are happy to share the latest data so you can make the BEST decision when buying or selling. How you approach the process will make a difference! Put us on your team – and we will have your back! We are waiting for your call!

LET’S TALK! – Sharon

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