Compelling Real Estate News – Newsletter – August 2020

San Diego… known for it’s beaches, weather, zoos, museums, and theme parks. Everyone dreams of coming to visit, and some of us get to live here. But right now, during the COVID 19 Pandemic, the things we moved here for aren’t open or have limited availability. We need to stay indoors and six feet away from other people. We have to remember to wear a mask, wash our hands frequently, and practice social distancing. And those extra things may seem like annoyances to many… but they’re very important and keep everyone safe. We’re still luckier than most with our weather, sun, and those susets (!). This WILL end, and we’ll be back to doing the things we love to do… we just don’t know when and we have to be patient. Annoying, yes… impossible, no. So get those projects done you’ve been avoiding, enjoy spending time with your family, and be grateful for this place we call home. And really, isn’t it better than complaining about heat, humidity, and hurricanes? Stay safe, stay patient, and keep the main thing the main thing!

What to do during quarantine: 12 fun ideas to keep you busy at home this summer.

1. Stream a concert, play, or TV show.

2. Go fishing in Animal Crossing: New Horizons, which came out on Nintendo Switch in March.

3. Take a digital Museum tour- Travel & Leisure has 12 museums that offer virtual tours.

4. Host a Netflix viewing party – schedule a time to watch a movie synced together.

5. Do some summer cleaning- the garage, yard, closets. You get the picture.

6. Binge watch a new show- Netflix, Hulu, Amazon Prime, or Disney Plus.

7. Exercise- work out, take a hike, or walk around the block. Get moving!

8. DIY projects- Pinterest has a project for anyone.

9. Work on your garden- flowers, veggies, herbs- all you do is stick them in dirt.

10. Read something new- in a book, on line, on tape. Learn something new.

11. Play video games- free games on Xbox, PlayStation, Nintendo Switch.

12. Google ‘Homes for Sale’ by zip code. If you see something you’re interested in, call me 619-417-0774 and I’ll get you more information!

Stay safe, stay involved, and be kind to those you live with.

It’s no secret that Millennials, ages 24 to 34, have been hit hard in 2020. The triple whammies of student loans, COVID-19 and record job losses are huge challenges to face. It would be easy to give up your dream of owning a home, but where there’s a will, there’s a way.

How you manage your expectations, resources and opportunities will make all the difference in achieving what you want out of life, including owning a home.

First, don’t give up. Your timeline may be changed for buying a home this summer, but you can still make it happen sooner than you think.

Look for ways to save money. Don’t buy things you don’t need. Take advantage of interest deferrals on your student loan. Open a high-yield savings account that pays compound interest.

Move to a less expensive apartment, get a roommate to share expenses or move back home temporarily. Pay your parents a reasonable rent for room and board and save the difference of what you’re paying now and use that money to pay off debt.

Look for ways to make money. Do you have a hobby or skill that you could turn into a side hustle, like carpentry, quilting, baking or small business accounting? Find a way to earn extra money, regardless of how little.

Don’t worry about what others think. Instead, encourage each other. It will be worth it when you move into your own home.

A typical asphalt shingle roof will last about 20 to 25 years, depending on variables such as the quality of the shingles, the professionalism of the installation, homeowner maintenance over the years, and, of course, the weather.

Your roof should have several lines of defense or redundancies. If one part fails, such as when a shingle blows off, there should be other protective layers such as an underlying membrane, flashing around chimneys and sealants that prevent the roof from leaking.

Because 70 percent of U.S. homes have asphalt or composition shingle roofs, replacement roofs tend to be similar. According to Roofingcalc.com, the average roof size in the U.S. is 1,700 square feet. Professional roofers calculate area by 100 square feet, so it would take 17 “squares” to reroof the average home. Materials and labor can run anywhere between $350 and $550 per square, or approximately $6000 to $9350.

Leaks through the ceiling, missing shingles, frayed or curling shingle edges, or erosion of the mineral granules are all signs that it’s time to repair or replace your roof. Have your roof inspected by a reputable roofing contractor, who can tell you if the roof was properly installed and maintained.

Check with your homeowner’s insurance company about coverage. Insurance.com warns that many companies will amortize coverage according to the age of the roof and refuse coverage if the roof has two or more previous layers of roofs or if the roof is 20 years or older. You can also call me about a home warranty for your home.

In June 2020, average mortgage interest rates fell below three percent for the 30-year-fixed-rate mortgage – the lowest level in modern recorded history, according to Mortgage News Daily. What caused such a dip?

A stock market sell-off sent investors to the relative safety of the bond market, wrote housing journalist Diana Olick. Mortgage rates loosely follow the yields on 10-year U.S. Treasury bonds. As more bonds were purchased, the yields went down, and mortgage rates followed. But that’s not all that happened.

Also in June, the Mortgage Bankers Association’s Mortgage Credit Availability Index hit its lowest number since June 2014. The simple reason is that lenders don’t like uncertainty, so to secure those lower interest rates, borrowers are subjected to higher credit score qualifications (700 or higher per JP Morgan Chase), the temporary shelving of some loan programs (no new jumbo loans per Wells Fargo) and higher down payments (at least 20 percent). Other criteria lenders use to limit risk includes lower loan-to-value ratios and higher income-to-debt ratios from borrowers.

Yet, despite a rocky economy, June mortgage applications were up a whopping 13 percent over the previous year. Freddie Mac forecasts that interest rates will remain at or near record lows and that housing prices will moderate throughout 2021.

So, what does this mean to you, the homebuyer or homeowner? If you have good credit, steady employment, and a sizable down-payment, you’re in great shape to get or refinance a mortgage loan. In other words, nothing’s changed except tighter qualifications for higher-risk borrowers.