BHAUS EIGHT August 2023 Newsletter

Hello community,

Summer is coming to a close! For most of our families, school is also back in session, and mornings are moving fast! Hope you enjoyed your summer as much as we did! Besides our traveling, or I should say, during our travels, we also enjoyed looking at what real estate looks like abroad, and brought back some insights to share (as well as photography to inspire your next remodel!)

As we prepare for our fall selling season, there are a few things to remember:

Sellers:

• Typically only serious buyers will be looking in the Fall

• Fall is a cozy season and your home should be inviting for showings (think of apple and cinnamon scents, soft lighting, and flowers showcasing the warm colors of Fall)

• Inventory will be even lower, so take advantage of the market

Buyers:

• It will not be a frenzy out there, so you will have time to stop and think

• While there will be less inventory, there will be less buyers too

• Sellers who list in the Fall are motivated!

So let’s get out there!

In this month’s newsletter,…

• The Southbay Real Estate section has the latest local stats and trends, giving you all the info needed to get your home on the market

• Home Stats by City

• The Economy & Mortgage News has the latest updates on inflation, consumer spending, and up-to-date mortgage rates.

• Investor Corner continues with our “Buying Abroad” series - this time we are navigating to Portugal!

  Have you followed us yet? make sure you are following us on Instagram and/or Facebook to get updates that are not sent to our mailing list! These updates include Open Houses, quick stats, inspiration for your home and your travels, as well as our exciting house viewings!

SouthBay Real Estate.

The Southbay Real Estate market is currently at 2 months supply, so inventory continues to be low. With Fall coming, we don’t expect inventory to kick up higher than where it’s been.

In July we saw a slight dip in average home prices throughout the Southbay (inclusive of all property types), down -5% vs LY, with an average price of $1.3MM. We had roughly 300 closed sales, which was -22% vs LY, and 388 New Listings in the market, -14% vs same time last year.

While inventory and new listings were down, prices still held in many areas, with most homes selling at or slightly above list price (this is the importance of pricing homes correctly!), with most homes selling within an average of 24 days.

Of the cities we report on, the beach cities and the PV Peninsula area all had dips in average home prices, however, the more inland cities of Torrance (+2%), Carson (+2%), and Gardena (+8%) all enjoyed average home price increases, with Gardena topping the average price increases in July coming in at $830K.

Home Stats by City.

Economy & Mortgage News.

According to C.A.R. research, there is some optimism in the financial markets, as recent data shows that M2, a primary indicator of liquid money supply currently in circulation, has been dropping for the last 8 months - this is helpful in fighting inflation by curtailing some demand of products and services, as well as helping alleviate the shortage of workers in open positions.

In mortgage news, we all know rates have risen in the last few weeks, however, after rising to almost 7.5% most recently, we see mortgage rates coming down slightly by 10 basis points since Chairman Powell of the Federal Reserve spoke in Jackson Hole. He advised the committee will be flexible in the coming months, and seemed more cautious about raising rates in the upcoming FOMC meeting in September, signaling to some economists that we may not see another rate hike in the coming month.

According to C.A.R., some economists are beginning to “celebrate” a possible soft landing, although we may not be quite out of the woods. There does seem to be a consensus that sometime next year rates will start to drop, albeit not to the levels we enjoyed in the previous years.

There are still many programs that are coming to the aid of borrowers, whether from the Fed Govt, State, and/or institutions. This aid comes in the form of grants that can be used towards closing costs and downpayment. Most recently, there is a $50K loan from the government for qualified buyers to use as downpayment or towards closing costs. If borrower stays in home for 5+ years, the loan becomes a grant and does not have to be paid back.

Zillow Home Loans also introduced a 1% down payment program, where eligible buyers put down 1% and Zillow pitches in 2% towards the down payment, in order to help buyers’ ability to buy a home now (instead of waiting to save for at least a 3% down payment). This program is currently available to AZ borrowers, although Zillow has plans to extend to other states as well.

There are many programs borrowers can take advantage of, call us for more details.

Investor Corner.

Continuing with our second home market chats, this month we are taking you to a one of our new favorite places in the world, where we just traveled to and were amazed not only with their history, architecture, culture, and beauty, but also the simply more than amazing food! Portugal!!!!

This is a quick rundown of their Golden Visa program, which is due to end in September 2023!

• Basically, if a foreigner purchases a home in Portugal for at least anywhere between 230,000 Euros - 350,000 Euros, the buyers would be eligible for Portuguese residency, which after 5 years, can receive citizenship.

It turns out, the Portuguese parliament has just passed legislation that will end this program, however, investors will still be able to get the Golden Visa via a fund investment of at least 500,000 Euros.

The country has been historically one of the poorest countries in the EU. However, as of late, it has seen a major uptick in tourism, with people from all over the world flocking to their beaches (the beautiful Algarve Coast), cities (metropolis such as Lisbon), historic towns (such as charming Sitra close to Lisbon and Silves in the Algarve), and wine country (let’s not forget their port and olive oil!)

Why Portugal you may ask?

Well besides Portugal’s old world beauty, combined with some wildness, and their past history which makes it an absolute charmer, you will be absolutely wowed by their culinary experience. However, if that is not enough, here are some reasons to think about Portugal as a second home:

• Portugal has one of the world’s most attractive tax systems, with 0% tax on foreign income

• You are able to get citizenship after 5 years

  • this is permanent and passes down to your future generations

• The Portuguese passport is the 6th strongest in the world, with 188 destinations visa-free (according to www.globalresidenceindex.com)

• As a Portuguese citizen, you have the right to live, work, study, and retire anywhere in the EU

• Portugal ranked #3 in the world in security by Global Peace Index

• Portugal ranked #1 place to retire by International Living

• Portugal ranked #1 most friendly country for expats by InterNations

We have partners in many international countries and can help guide you to the right local broker when ready. Don’t hesitate to call us with any questions before you start your search!

Contact your BHAUS EIGHT team with any comments or questions!

To subscribe to our weekly emails of investor opportunities and our digital newsletter, please email Sonia directly at Sonia@bhauseight.com

From BHAUS to yours.