Summer is almost over, and the children are all back to school. How did it possibly go by so fast? We had a lot of rain and cold, and then a month of hot, muggy summer.
Now we suddenly have the beaches
all to ourselves again (for those who live near the beach) while the kids’ sports
and school activities are getting very busy!
Unfortunately, not so for the
Real Estate market! We are still experiencing some of the lowest loan
application rates seen in 28 years. And rates continue to rise. We are well
over 7% for most conventional loans today. Now, if you look at history 7% + is
near the average, but what a sudden jump from 2022. And the short-term outlook
isn’t rosy as inflation is bouncing up again. This, more than anything, has a
direct effect on mortgage rates.
There have been seven rate
hiking cycles from 1968 to 2008/09 that ended in a recession. It has taken on
average 22 months from the first hike to the start of the recession. There were
two cycles that didn’t end in recession. So, who knows?
INSURANCE CRISIS?
State Farm, the largest home insurer
in California has stopped writing new policies as of June. Others including AIG
and Chubb are both NOT renewing policies in the state. AmGuard, Kemper and
Allstate are out now also. Farmers is limiting its new policies. Why? There are multiple factors, primarily
climate change, more fires, and higher costs to rebuild due to inflation. The California
State regulatory guidelines for insurers have not helped.
Don’t hesitate to contact us if you
are experiencing insurance woes. We have a number of experts we can refer you
to who can find your homeowner’s policy a new home.
What does this spell for the long
term? It will make qualifying for a home loan more difficult with prices
rising, particularly in certain zip codes which are labeled as high fire hazard
areas. You know who you are!
FUN FAMILY STUFF
We rounded out the end of summer with
a lot of time spent at the ArtAFair in Laguna Beach, where Steve showcased his
plein air and impressionist landscapes. For a neophyte he did very well and
also obtained some new commissions. What is leftover is coming back home and I
get to move my art in our home around a bit, which I enjoy. Changing up the
landscape, so to speak!
We enjoyed some great music at various
outdoor venues including the Art Festival and the Dana Point Concert series and
attended the Pageant of the Masters in the Laguna Bowl, which is always
entertaining.
Labor Day weekend brought out a huge
crowd to the Dana Point Harbor, on various watercraft including surfboards,
SUP’s, floaties, kayaks, and all manner of boats to hear our favorite David Allen
Baker with the Kicking Giants band. What a hoot!
