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If you've been keeping up with recent news, you may have come across reports discussing a surge in foreclosures and bankruptcies. This might be causing some concern, particularly if you're considering buying or selling a house. However, it's important to note that despite the increasing numbers, the data indicates that the housing market is not on the verge of a crisis. Foreclosure Activity Rising, but Less Than Headlines Suggest In recent years, foreclosure numbers have remained low, thanks to measures like the forbearance program and other relief options implemented in 2020 and 2021 to assist homeowners during challenging times. While there was an anticipated increase in foreclosures after the moratorium ended, it's crucial to note that this doesn't necessarily indicate trouble in the housing market. To illustrate how things have evolved since the housing crash in 2008, refer to the graph below, based on research from ATTOM, a property data provider. The graph examines properties with foreclosure filings dating back to 2005, demonstrating a decrease in foreclosures compared to the post-crash period. As you can see, foreclosure filings are inching back up to pre-pandemic numbers, but they're still way lower than when the housing market crashed in 2008. And today, the tremendous amount of equity American homeowners have in their homes can help people sell and avoid foreclosure. The Increase in Bankruptcies Isn’t Dramatic Either As you can see below, the financial trouble many industries and small businesses felt during the pandemic didn’t cause a dramatic increase in bankruptcies. Still, the number of bankruptcies has gone up slightly since last year, nearly returning to 2021 levels. But that isn’t cause for alarm. The numbers for 2021 and 2022 were lower than more typical years. That’s in part because the government provided trillions of dollars in aid to individuals and businesses during the pandemic. So, let’s instead focus on the bar for this year and compare it to the bar on the far left (2019). It shows the number of bankruptcies today is still nowhere near where it was before the pandemic. Both of these two factors are reasons why the housing market isn't in danger of crashing. Bottom Line Right now, it's crucial to understand the data. Foreclosures and bankruptcies are rising, but these leading indicators aren’t signaling trouble that would cause another crash.

Considering selling your house as a For Sale by Owner (FSBO)? Be aware that the process involves more time and expertise than meets the eye. While the prospect of handling everything independently might be tempting, it's crucial to understand the challenges you might encounter. According to a recent Bankrate article: “Selecting the right price, creating a compelling listing, marketing to potential buyers, coordinating showings, preparing paperwork: All of these are tasks that, without a real estate agent, you'll have to tackle on your own.” Here's further insight into a few of these aspects and what you might miss out on without the assistance of an agent. You May Not Price it Right Setting the right price for your house is crucial for a successful sale. Real estate agents possess the expertise to navigate the current housing market and understand the art of pricing a home competitively. Unfortunately, homeowners selling on their own often lack this essential experience, leading to two common pitfalls: overpricing or underpricing. An article from NerdWallet provides this insight: “If your home is overpriced, you run the risk of buyers not seeing the listing. . . . But price your house too low and you could end up leaving some serious money on the table. A bargain-basement price could also turn some buyers away, as they may wonder if there are any underlying problems with the house.” Avoid these risks by partnering with an agent who can ensure your house is priced at the current market value, increasing its visibility to eager buyers and making a strong first impression. You Don’t Have as Much Experience in Marketing a House In the digital age, online marketing has become a significant game-changer, particularly in the realm of selling real estate. According to a recent report from the National Association of Realtors (NAR): “Among all generations of home buyers, the first step taken in the home search process was to look online for properties.” By teaming up with a real estate agent well-versed in leveraging online marketing tools and resources, you can position your property in front of tech-savvy home seekers, significantly enhancing your chances of a successful sale. However, if you opt to sell your house independently, you may miss out on the full potential of online and social media strategies. You May Not Be Comfortable Handling All the Back-and-Forth When you embark on the journey of selling your house, you're not just searching for a buyer; you're entering a realm of negotiations. This involves coordination with various individuals, including the buyer, the buyer’s agent, the inspection company, the appraiser, and more. It's a delicate dance where each move matters, and the expertise of a real estate agent can prove invaluable in navigating these negotiations and finalizing the deal. As noted by NerdWallet: “Your listing agent will also, of course, be on your side throughout negotiations. They'll double-check paperwork that comes through, communicate with the buyer's agent and other parties to the sale, and generally stay on top of things through to closing day.” Bottom Line If you're thinking about selling your house and the idea of going it alone has crossed your mind, be sure to think through that decision carefully. Let's connect to discuss how a real estate agent has the experience needed to take all that stress off your plate. 626-653-6903 | info@thechouteam.com | www.thechouteam.com 388 E Valley Blvd UNIT 106, Alhambra, CA 91801

Key Takeaways: If you're contemplating purchasing a home this year, factor in the enduring financial benefits of homeownership, such as building home equity. Over the past 32 years, individuals who invested in homes have witnessed a nearly threefold increase in their property's value. If you're uncertain about the wisdom of buying a home, keep in mind that increasing home values have the potential to enhance your net worth over time. When you're prepared to embark on your homebuying journey, reach out for a conversation. 626-653-6903 | info@thechouteam.com | www.thechouteam.com 388 E Valley Blvd UNIT 106, Alhambra, CA 91801

The landscape of work in America has undergone significant changes, with remote work taking center stage. Experts predict that remote work will continue to be a prevalent trend, estimating that by 2025, approximately 36.2 million Americans will be working remotely. This represents a substantial 417% increase from the pre-pandemic era when there were only 7 million remote workers. For individuals looking to purchase a home, especially those engaged in full or part-time remote work, this trend holds transformative potential. It serves as a valuable solution to navigate the current challenges related to housing affordability and inventory. How Remote Work Helps with Affordability Embracing remote or hybrid work enables a shift in your approach to finding a home. With the reduced emphasis on daily commuting, the necessity of living near your office diminishes. Exploring options a bit further out in the suburbs, as opposed to the city, can expand the range of affordable choices available to you. Fannie Mae's recent study highlights this trend, stating: "Home affordability may also be a reason why we saw an increase in remote workers’ willingness to relocate or live farther away from their workplace . . ." For those contemplating a move, having such flexibility in location can enhance the likelihood of discovering a home that aligns with your budget. Collaborate with your agent to explore a broader range of areas with a lower cost of living. More Work Flexibility Means More Home Options As you expand your search to encompass more budget-friendly options, you may discover the opportunity to get more features for your investment. Given the limited supply of homes for sale, finding a property that meets all your preferences can be a challenge. Broadening your search widens the pool of available options, making it easier to locate a home that truly aligns with your lifestyle. This may include properties with more square footage, diverse architectural styles, and a broader array of neighborhood amenities that were previously beyond reach. Traditionally, proximity to the workplace was a valued perk, often accompanied by a significant price tag. However, the current dynamics have shifted. With the flexibility of remote work, you now have the freedom to choose where you want to live, eliminating the burden of lengthy daily commutes. This shift allows you to concentrate on finding an affordable home that fulfills your dream features. Bottom Line Remote work extends beyond job flexibility; it presents an opportunity to expand your horizons in your home search. Liberated from a fixed location, you have the freedom to explore all your options. Connect with us to discover how this newfound freedom can guide you to your perfect home. 626-653-6903 | info@thechouteam.com | www.thechouteam.com 388 E Valley Blvd UNIT 106, Alhambra, CA 91801

Considering selling your house and concerned about the current mortgage rates? You're not alone. Some homeowners hesitate to sell, fearing they might face higher mortgage rates on their next home. However, it's important to recognize that while rates are currently elevated, home equity is also at a high level. Here's a breakdown of what you should understand. Bankrate provides a clear explanation of what equity is and how it accumulates: “Home equity is the portion of your home that you’ve paid off and own outright. It’s the difference between what the home is worth and how much is still owed on your mortgage. As your home’s value increases over the long term and you pay down the principal on the mortgage, your equity stake grows.” In other words, equity is how much your home is worth now, minus what you still owe on your home loan. How Much Equity Do Homeowners Have Now? As for the current equity situation, it has been increasing more rapidly than one might expect. To put it into perspective, CoreLogic states: "... the average U.S. homeowner now has about $290,000 in equity." This substantial growth in equity is a result of significant increases in home prices over the past few years, accelerating the accumulation of equity. While the market is gradually stabilizing, the demand for homes still exceeds the available supply, leading to a resurgence in home prices. Data from the Federal Housing Finance Agency (FHFA), the Census, and ATTOM, a property data provider, indicates that nearly two-thirds (68.7%) of homeowners have either fully paid off their mortgages or possess at least 50% equity (refer to the chart below): That means nearly 70% of homeowners have a tremendous amount of equity right now. How Equity Helps with Your Affordability Concerns Given the current affordability challenges, the equity you've accumulated can significantly impact your decision to move. Once you sell your house, you can leverage your home equity in the following ways: Be an all-cash buyer: If you've been a long-time resident in your current home, your equity might be substantial enough to enable you to purchase a new house outright without requiring a loan. This means you can avoid concerns about mortgage rates. The National Association of Realtors (NAR) notes: "These all-cash home buyers are happily avoiding the higher mortgage interest rates." Make a larger down payment: Your equity can be utilized for your next down payment, potentially allowing you to put down a more significant amount. This approach reduces the need to borrow a substantial sum, making current interest rates less of a hurdle. As explained by Experian: "Increasing your down payment lowers your principal loan amount and, consequently, your loan-to-value ratio, which could lead to a lower interest rate offer from your lender." Bottom Line If you're thinking about moving, the equity you've built up can make a big difference, especially today. To find out how much equity you've got in your current house and how you can use it for your next home, let’s connect. 626-653-6903 | info@thechouteam.com | www.thechouteam.com 388 E Valley Blvd UNIT 106, Alhambra, CA 91801

A crucial determinant influencing the current real estate market is the quantity of homes available for sale. If you're contemplating listing your house, this presents a significant advantage, especially in a market with such low housing inventory. A well-priced house in such conditions is likely to stand out. However, there are indications that more listings are emerging. Recent data suggests an upward trend in new listings—homes newly placed on the market for sale. This development is noteworthy, and understanding its implications could be beneficial for you. More Homes Are Coming onto the Market than Usual It's a widely acknowledged fact that the spring buying season is the peak period in the housing market each year. During the first half of the year, there is a predictable surge in the number of newly listed homes as sellers prepare for the months when buyers are most active. However, as the school year begins and the holiday season approaches, the market tends to cool down, following the expected seasonal pattern. What's noteworthy is the recent data from Realtor.com, indicating an unusual increase in the number of sellers listing their houses later in the year than usual. This late peak in listings is atypical, as illustrated in the graph below, showcasing both the regular seasonal trend and the unusual surge in August. As Realtor.com explains: “While inventory continues to be in short supply, August witnessed an unusual uptick in newly listed homes compared to July, hopefully signaling a return in seller activity heading toward the fall season . . .” While this is only one month of data, it’s unusual enough to note. It’s still too early to say for sure if this trend will continue, but it’s something you’ll want to stay ahead of if it does. What This Means for You If you've been delaying the sale of your house, the current moment might be the ideal time to take action. The reason is that if the current trend of increased listings persists, delaying your decision may lead to more competition. Waiting could mean having to compete for buyers' attention with neighbors who decide to sell. Selling now allows you to be ahead of your neighbors in attracting potential buyers. Despite the rise in the number of homes entering the market, it's essential to note that the overall supply is still significantly below normal levels. The inventory deficit won't be resolved quickly. The graph below provides a visual representation of this situation, emphasizing the current opportunity available: Bottom Line Even though inventory is still low, you don’t want to wait for more competition to pop up in your neighborhood. You still have an incredible opportunity if you sell your house today. Let’s connect to explore the benefits of selling now before more homes come to the market. 626-653-6903 | info@thechouteam.com | www.thechouteam.com 388 E Valley Blvd UNIT 106, Alhambra, CA 91801

For prospective homebuyers, it's crucial to take into account the projections of housing market experts regarding future home prices and how these forecasts may impact your investment. Despite negative reports on home prices in the past year, they have outperformed expectations and are experiencing growth nationwide. According to data, experts anticipate a continued appreciation in home prices. Experts Project Ongoing Appreciation Experts project a continued appreciation in home prices over the next five years, as indicated by the latest quarterly Home Price Expectation Survey (HPES) conducted by Pulsenomics. The survey, which involved over 100 economists, investment strategists, and housing market analysts, reveals that panelists anticipate a yearly increase in home prices through 2027. This forecast, illustrated in the graph below, dismisses concerns about a potential decline in home prices. While there may be variations in local markets, the overall trend points towards a sustained rise in home prices across the country, reflecting a return to more typical home price appreciation. Additionally, the cumulative nature of home price appreciation is highlighted, emphasizing the long-term advantages of homeownership. What Does This Mean for You? After purchasing a home, the appreciation in its value contributes to the growth of your household wealth. The graph below illustrates how the value of a typical home could change over the next few years based on expert projections from the Home Price Expectation Survey (HPES). For instance, if you bought a $400,000 home at the beginning of the year and consider the HPES forecast, you might potentially accumulate over $71,000 in household wealth over the next five years. This example underscores the powerful long-term wealth-building aspect of homeownership, making it a significant financial choice. Bottom Line According to the experts, home prices are expected to grow over the next five years at a more normal pace. If you’re ready to become a homeowner, know that buying today can set you up for long-term success as home values (and your own net worth) grow. Let’s connect to start the homebuying process today. 626-653-6903 | info@thechouteam.com | www.thechouteam.com 388 E Valley Blvd UNIT 106, Alhambra, CA 91801

Reaching retirement is a significant milestone in life, bringing with it a lot of change and new opportunities. As the door to this exciting chapter opens, one thing you may be considering is selling your house and finding a home better suited for your evolving needs. Fortunately, you may be in a better position to make a move than you realize. Here are a few reasons why. Consider How Long You’ve Been in Your Home From 1985 to 2009, homeowners typically lived in their homes for about six years. However, the National Association of Realtors (NAR) reports that the average home tenure has increased since 2010, now standing at just over nine years (refer to the graph below): This implies that in recent years, a substantial number of homeowners have resided in their houses for even longer durations. Living in a home for such an extended period naturally exposes you to changes and milestones in your life. With these life developments, your needs may evolve. If your current home no longer aligns with these evolving needs, there could be more suitable options awaiting your consideration. Consider the Equity You’ve Gained Additionally, if you've been residing in your home for an extended period, it's probable that you've accumulated significant equity, providing financial support for your next step. This is due to the equity growth as you pay off your loan and experience appreciation in home prices. The longer the duration of your homeownership, the greater the potential equity buildup, as demonstrated by data from the Federal Housing Finance Agency (FHFA) in the graph below: Although home prices can vary by location, the national average indicates that homeowners who have been in their homes for five years have witnessed nearly a 60% increase in its value. For those who have owned their homes for 30 years, the average appreciation is almost triple. Whether you're considering downsizing, relocating to a dream destination, or moving closer to friends and family, the equity you've built can be a valuable resource. A trusted real estate agent can assist you in selling your current home and guide you in finding a new home that aligns with your current lifestyle. In conclusion, as you prepare for retirement, let's connect to determine the equity you've accumulated over the years and strategize how to leverage it for the purchase of a home that suits your evolving needs. 626-653-6903 | info@thechouteam.com | www.thechouteam.com 388 E Valley Blvd UNIT 106, Alhambra, CA 91801

What will happen in the housing market for the rest of 2023? Here's what expert think Home Prices Home prices will vary by local market. The Good news is, prices are already appreciating again in many areas and the average of the expert forecasts shows positive price growth Mortgage Rates Where mortgage rates go for the rest of the year will depend on inflation. Based on historical trends, rates are likely to ease as inflation continues to cool. Home Sales While low inventory continues to be a challenge in the housing market, experts project 5 million homes will still sell this year. That pace should pick up rates come down. Curious about the upcoming trends in the #housingmarket for the rest of 2023? Take a glimpse at experts' projections for key indicators. The consensus among experts suggests potential growth in home prices, possible decline in mortgage rates, and a robust number of home sales. Interested in delving deeper? Let's get in touch. Contact us through call or email. 626-653-6903 | info@thechouteam.com Free Home Valuation: mikechou.lucidoglobal.com

Are you planning to sell a house in California? Well, get ready and brace yourself for the number of paperwork you will be doing. California has the most complex real estate laws in the country. Sellers need to comply with a lot of legal requirements - and there’s also the contingency removal form which should be prioritized. But what is a contingency? According to Mike Chou, a California real estate agent with 12 years of experience in the industry, a contingency protects the buyer where it allows them to back out without any consequence. Many real estate deals in the US have include contingencies however it’s only in California where you need to complete a contingency removal form in order for the sale to move and close. There are three primary contingencies. First is the inspection contingency where it allows the buyers to check or inspect the house physically and look into its condition. Second is the appraisal contingency which gives freedom to the buyer to back out if the house is appraised to a lower value. On the other hand, in loan contingency, the buyer may back out if they can’t get their loan approved. The use of contingency removal depends on the number of contingencies and the time period in which the buyer needs to sign off. A contingency is already removed after the buyer signs it and the listing agent has already received it. The removal of the contingencies helps the seller but it has to be completed by the buyer. This is why there are times when the removal of the contingency may lapse in time because your buyer’s real estate agent has no enthusiasm to finish it on time. This is also one of the reasons why the agents of the sellers need to be on top of this part of the process. Keeping tabs on the contingency removal forms is a must especially in California. It may be a minor detail in the real estate process but it can cause problems that may cost money and may delay the sale of your home. Thinking of selling your home or have general questions, please contact The Chou Team today at (626) 653-6903 or email at info@thechouteam.com. #starterhometips #realestateblogs #newhomeowner #realestatetips

There are many reasons homeow ners decide to forgo the real estate agent and list their home for sales as an FSBO (For Sale by Owner). FSBO sellers can utilize many of the same national real estate websites used to showcase property online. Most homebuyers start their house search online, so the online listing must showcase the home to generate offers. To sell quickly, one must avoid the common mistakes home sellers make online. Cell Phone Photos – Invest in professional photography. Pictures are the first thing buyers notice and poor-quality shots will prevent the buyer from noticing the home, or even setting up a showing. Responding Slowly – When a potential buyer reaches out, they expect a prompt response. Catching buyers quickly is the best way to move the buying process into the next stage of setting an appointment. Not Paying for Exposure – Regardless of the platform, there is an option to boost the listing to get featured exposure. The fee is a small price to pay to ensure more potential buyers see the home first when they search for properties. Poor Grammar and Misspellings – Always double-check listing information is accurate, clearly explained, and written with proper grammar and spelling. Listing on Only One Platform – More exposure only means more views. Consider all the major real estate platforms and use them all. Selling a home without a real estate agent involves more effort by the homeowner. The homeowner needs to be at every showing, and figure out how to write the contract. It certainly is not for everyone. If you are a FSBO seller and ready to let a real estate agent take over, contact us today! #starterhometips #realestateblogs #newhomeowner #realestatetips

New homebuyers often tell their agents that they are looking for their “starter home.” Several factors go into this approach. These are typically younger buyers, often without children. They may be looking for a maintenance-free home, like a condo, or they might assume that starter homes are more budget-friendly. There are plenty of good reasons to buy a home with the assumption that it’s only for a few years, but it’s usually wise to consider the fact that it might be for much longer. As 2020 demonstrated so clearly, things can change without warning. Homebuyers choosing a small condo with the intention of living in it for only a few years might later find themselves trying to carve out space for children due to employment challenges or market changes. The good news is that many times— once you add in association fees, taxes, and other costs—an older home that needs updating could be just as economical as a brand-new condo with all the latest design features. When buying your first home, it’s important to consider how you would manage if you needed to stay longer than expected. An older home might offer a yard where you could expand, or extra rooms which can become bedrooms. These options can give you flexibility as your lifestyle changes over the years. If you buy your first home with the future in mind, you can protect yourself from the unexpected income changes, real estate price booms, or any other outside influence. Don’t discount the older fixer-upper simply because you plan to move in a few years—plans change, and giving this some prior thought can help you adjust more painlessly in the future. #starterhometips #realestateblogs #newhomeowner #realestatetips