8 Ways to Transform Your Outdoor Space

With the warmer weather quickly approaching, more and more people are thinking of being able to comfortably invite loved ones around to enjoy their outdoor space. Or perhaps you simply want a beautiful space where you can kick back and relax in the comfort of your Carlsbad CA home. 

You don’t have to worry if your outdoor space is looking a little dull and uninspiring. With a few key changes that will add function and style, you can look forward to wonderful days and nights spent in your outdoor space!

Here are helpful tips to turn your outdoor space into a paradise:

Please call Dennis Smith at 760-212-8225 for more information or assistance in buying, selling, or investing in real estate.

Real Estate and Your Wealth

Real estate has long been considered a great investment. In fact, there are many benefits to investing in real estate. 

With well-chosen assets, real estate can offer predictable cash flow. It also appreciates in value and provides a higher return because of positive leverage. If you are a real estate investor, you can also take advantage of the many tax breaks and deductions. 

And if you’re thinking of selling one of your Carlsbad CA real estate, the spring is the perfect time to do so. Buyer demand is strong right now, and buyers are active in the market. Read on for more information. 

Please call Dennis Smith at 760-212-8225 for more information or assistance in buying, selling, or investing in real estate.

Why I Work by Referral

For most people, buying a Carlsbad CA home is one of the biggest financial transactions they will ever make. That is why working with the best real estate agent is essential in getting the best deal. 

One of the most common ways to find a real estate professional is by word-of-mouth referrals. Trusted referrals from your family or friends are a powerful tool for finding the right real estate agent. Having someone refer you to an agent they had a positive, successful experience with is extremely helpful. 

As an agent, there’s no greater compliment than a referral from a previous client. That’s why I work by referral. 

Here are some benefits of working with me as your Carlsbad CA real estate agent: 

Please call Dennis Smith at 760-212-8225 for more information or assistance in buying, selling, or investing in real estate.

Smart Ways to Reduce and Avoid Debt

While it’s easy to get into debt, everyone knows how painfully difficult it is to get out of it. Debt can cause a lot of damage and we’re not just talking about your credit score. The stress of financial issues can leave you feeling anxious or depressed.  

So how do you get out of debt? Debt stress relief is possible if you are willing to do the hard work. It takes time and sustained effort. 

Here are some strategies to help you break the cycle and experience financial stability again. 

Please call Dennis Smith at 760-212-8225 for more information or assistance in buying, selling, or investing in real estate.

3 Reasons We’re Definitely Not in a Housing Bubble

1. This time, the housing supply
is extremely limited.
2. This time, housing demand is real.
3. This time, households have
plenty of equity.

Home values appreciated by about ten percent in 2020, and they’re forecast to appreciate by about five percent this year. This has some voicing concern that we may be in another housing bubble like the one we experienced a little over a decade ago. Here are three reasons why this market is totally different.

1. This time, housing supply is extremely limited

The price of any market item is determined by supply and demand. If supply is high and demand is low, prices normally decrease. If supply is low and demand is high, prices naturally increase.

In real estate, supply and demand are measured in “months’ supply of inventory,” which is based on the number of current homes for sale compared to the number of buyers in the market. The normal months’ supply of inventory for the market is about 6 months. Anything above that defines a buyers’ market, indicating prices will soften. Anything below that defines a sellers’ market in which prices normally appreciate.

Between 2006 and 2008, the months’ supply of inventory increased from just over 5 months to 11 months. The months’ supply was over 7 months in twenty-seven of those thirty-six months, yet home values continued to rise.

Months’ inventory has been under 5 months for the last 3 years, under 4 for thirteen of the last fourteen months, under 3 for the last six months, and currently stands at 1.9 months – a historic low.

In San Diego County and most of SoCal, we are under 1 month of inventory.

Remember, if supply is low and demand is high, prices naturally increase.

2. This time, housing demand is real

During the housing boom in the mid-2000s, there was what Robert Schiller, a fellow at the Yale School of Management’s International Center for Finance, called “irrational exuberance.” The definition of the term is, “unfounded market optimism that lacks a real foundation of fundamental valuation, but instead rests on psychological factors.” Without considering historic market trends, people got caught up in the frenzy and bought houses based on an unrealistic belief that housing values would continue to escalate.

The mortgage industry fed into this craziness by making mortgage money available to just about anyone, as shown in the Mortgage Credit Availability Index (MCAI) published by the Mortgage Bankers Association. The higher the index, the easier it is to get a mortgage; the lower the index, the more difficult it is to obtain one. Prior to the housing boom, the index stood just below 400. In 2006, the index hit an all-time high of over 868. Again, just about anyone could get a mortgage. Today, the index stands at 122.5, which is well below even the pre-boom level.

In the current real estate market, demand is real, not fabricated. Millennials, the largest generation in the country, have come of age to marry and have children, which are two major drivers for homeownership. The health crisis is also challenging every household to redefine the meaning of “home” and to re-evaluate whether their current home meets that new definition. This desire to own, coupled with historically low mortgage rates, makes purchasing a home today a strong, sound financial decision. Therefore, today’s demand is very real.

San Diego is attracting people with well paying jobs and they have the money to pay the San Diego prices, even with the 8.3 % increase that is predicted.

Remember, if supply is low and demand is high, prices naturally increase.

3. This time, households have plenty of equity

Again, during the housing boom, it wasn’t just purchasers who got caught up in the frenzy. Existing homeowners started using their homes like ATM machines. There was a wave of cash-out refinances, which enabled homeowners to leverage the equity in their homes. From 2005 through 2007, Americans pulled out $824 billion dollars in equity. That left many homeowners with little or no equity in their homes at a critical time. As prices began to drop, some homeowners found themselves in a negative equity situation where the mortgage was higher than the value of their home. Many defaulted on their payments, which led to an avalanche of foreclosures.

Today, the banks and the American people have shown they learned a valuable lesson from the housing crisis a little over a decade ago. Cash-out refinance volume over the last three years was less than a third of what it was compared to the 3 years leading up to the crash.

This conservative approach has created levels of equity never seen before. According to Census Bureau data, over 38% of owner-occupied housing units are owned ‘free and clear’ (without any mortgage). Also, ATTOM Data Solutions just released their fourth quarter 2020 U.S. Home Equity Report, which revealed:

“17.8 million residential properties in the United States were considered equity-rich, meaning that the combined estimated amount of loans secured by those properties was 50 percent or less of their estimated market value…The count of equity-rich properties in the fourth quarter of 2020 represented 30.2 percent, or about one in three, of the 59 million mortgaged homes in the United States.”

If we combine the 38% of homes that are owned free and clear with the 18.7% of all homes that have at least 50% equity (30.2% of the remaining 62% with a mortgage), we realize that 56.7% of all homes in this country have a minimum of 50% equity. That’s significantly better than the equity situation in 2008.

Bottom Line

This time, the housing supply is at a historic low. Demand is real and rightly motivated. Even if there were to be a drop in prices, homeowners have enough equity to be able to weather a dip in home values. This is nothing like 2008. In fact, it’s the exact opposite.

Are you ready to buy or sell?
There are challenges in a sellers market for both buyers and sellers and I have solutions for both. Call me to discuss your specific situation and I will make it happen for you. Cell 760-212-8225

Make the Most of Your Taxes

For many people, lowering taxes is one of the most common financial planning concerns. The good news is while taxes are unavoidable, there are ways to minimize the impact they have on your bottom line. The key is planning. 

It is also important to note that taxes are not computed based on your gross income. Your taxes are based on a taxable income that can be reduced by deductions or “write-offs.”

There are a number of steps you can take to make sure you don’t pay more than what you have to. Here is a quick look at the six strategies that could slash what you owe to the IRS.

Please call Dennis Smith at 760-212-8225 for more information or assistance in buying, selling, or investing in real estate.

Saving Strategies to Reach Your Financial Goals

The value of saving money has seldom been disputed. In fact, it is considered the foundation of all financial success and is one of the most repeated financial advice one would hear. 

However, despite its importance, many still find it difficult to save money. This is not surprising since it really requires discipline. But saving money is worth all the effort. It is completely possible. You can take control of your finances and your life. 

Here are a few tips and savings tools that will help you reach your financial goals. 

Please call Dennis Smith at 760-212-8225 for more information or assistance in buying, selling, or investing in real estate.

Maximize Space in Your Home

Whether your home is big or small, there are many ways to create more space in whatever size you occupy.You just have to be resourceful to make the most out of your square footage. 

The first step in creating more storage space in your home is to get rid of clutter. The best way to do it is by going to room by room. Decide which items to toss or keep.

For more ideas, here’s a list of top tips and tricks to help you create more space in your home.

Please call Dennis Smith at 760-212-8225 for more information or assistance in buying, selling, or investing in real estate.

Ready for Tax Time?

Settling your account with the Internal Revenue Service (IRS) each year does not have to be a desperate hunt for the documents you need to file your tax return. With a little bit of advance planning, you can  save time and money. It is necessary to arrange your receipts, forms and other records well before tax time.

Even if you enjoy handling your own money, working with a professional to do your taxes may be a sound idea. Their expertise can help ensure that you get all the deductions and credits you are eligible to receive.

Here are important dates and things to remember as you begin preparing your tax return for 2020. 

Please call Dennis Smith at 760-212-8225 for more information or assistance in buying, selling, or investing in real estate.

2021 Real Estate Market Snapshot

The Year 2020 caught everyone by surprise. What started off as a promising year for the housing market and the economy was quickly derailed by a global pandemic and a serious economic crisis. In fact, the real estate industry has experienced some of the biggest highs and lows of any sector.

As the economy recovers from the pandemic-driven recession, expect that the U.S. housing market will get stronger. And with the housing market being in good shape, it’s time to consider if you should make a move in the coming months. 

Here are the latest housing market forecasts for 2021.

Please call Dennis Smith at 760-212-8225 for more information or assistance in buying, selling, or investing in real estate.