If you’re considering buying a home in a community governed by a Homeowners Association (HOA), you’re not alone. HOAs are common, offering a structured community environment with shared amenities and well-maintained surroundings. However, navigating life with an HOA can come with its own set of challenges and benefits. Here’s a handy guide to help you make the most of your HOA experience.
August 2024 Vol. 8
The Hyde Report features up to the minute real estate news & trends along with articles designed to help improve your real estate IQ.
August marks summer’s last hurrah, offering one last family vacation before the back-to-school rush and ending with the long Labor Day weekend.
Despite having no major federal or bank holidays, the August 4 new moon is a powerful time for personal growth, reflection, and rejuvenation. As the harvest season peaks, it’s a moment to reap what you’ve sown and reflect on your hard work. This period emphasizes harvest, trust, and routine, urging both activity and self-connection.
Four Focus Areas for the August New Moon Cycle:
1 – Rest and Rejuvenation: After summer’s intensity, prioritize rest and replenishment. Enjoy calm moments to recharge your body and soul.
2 – Trust in Your Efforts: Trust the energy you’ve invested will yield results. Support yourself with journaling, meditating, and affirmations to reinforce your faith in your path.
3- Re-establish Routines: Summer often disrupts routines. Reflect on and reintroduce practices that ground and balance you. Start small to build momentum and enhance creativity and flow.
4 – Seek Clarity: Use the summer sun’s illumination for clarity on your path and purpose. Reflect on your work and direction, allowing space for intuitive insights. Focus on the next step rather than the entire journey.
Make the most of this supportive time for personal and spiritual growth.
Real Estate News
Mortgage Rates Hit Year-Long Low: Is Now the Time to Buy or Refinance?
Mortgage rates have dropped to their lowest point in over a year, presenting a prime opportunity for both prospective homebuyers and those looking to refinance. The 30-year fixed-rate mortgage now averages 6.47%, down from 6.73% last week, giving buyers increased purchasing power and making refinancing more appealing. This drop comes amidst reactions to economic data and market fluctuations, but the upcoming presidential election is also playing a significant role in shaping buyer behavior.
A recent Veteran Home buying Report from Veterans United Home Loans reveals that the election is heavily influencing homebuying decisions. About 60% of those planning to purchase a home in the next few years are adjusting their timelines based on the election, with nearly 38% choosing to wait until after the results are known. Inflation and housing affordability, ranked as top election issues, are causing many to pause and consider how political changes might impact the housing market.
With mortgage rates for 15-year loans also seeing a substantial decline, now could be an ideal moment to capitalize on these favorable conditions before the market shifts. If you’re ready to take advantage of these historically low rates, start your secure online application today.
Southern California Home Affordability Crisis: Only 15% Can Buy
Southern Californians need an annual income of $200,800 to qualify for a median-priced home of $785,000, which is more than double the national requirement of $99,600. This financial threshold has increased by 38% since early 2022 due to rising mortgage rates and home prices, driven by the Federal Reserve’s inflation-fighting measures. Southern California household incomes are only 16% higher than the national average, making home affordability a significant challenge for locals.
In early 2024, only 15% of Southern Californians could afford to buy a home, down from 24% in 2022. Nationally, the affordability rate also declined, from 47% to 37%. The average 30-year mortgage rate rose from 3.8% in early 2022 to 6.8% in early 2024, reducing buyers’ purchasing power by 28%. Consequently, the monthly cost for a typical homebuyer in Southern California increased by $1,370, or 38%, over two years.
Home sales in Southern California fell significantly, with 37,211 residences sold in the first quarter of 2024, 37% fewer than two years earlier and the third-slowest quarter since 1988. This decline in affordability and sales is consistent across the region’s counties, with significant drops in affordability and home sales below historical averages in Orange, San Diego, Ventura, Los Angeles, Riverside, and San Bernardino counties.
SoCal Real Estate Employment Climbs 55% Above Seasonal Norm Amidst Economic Cooling
In June 2024, Southern California’s real estate sector saw a significant hiring increase, with job additions running 55% above the seasonal average despite high mortgage rates. The region added 6,500 property-related jobs, bringing the total to 917,500. However, hiring has slowed, showing only a 0.8% annual increase compared to a 57% higher average since the Great Recession. Real estate employment remains below its July 2022 peak by 13,600 jobs, influenced by Federal Reserve rate hikes.
Real estate’s share of the local job market is substantial, comprising 9.6% of total employment and 25% of new jobs for the month. Specific sectors within real estate had mixed results, with project construction and building services hitting post-recession highs, while lending jobs declined. Geographically, all major Southern California areas saw job growth in real estate, with varying rates and still below their post-recession peaks. Non-real estate employment also grew robustly, reflecting a broader economic resilience.
Market Minute Write-Up
The latest macroeconomic data has been helpful to California’s housing market, which continue to battle back from the surge in interest rates last year. Home sales did slide modestly in June as interest rates in April and May disrupted the upward trajectory the market has experienced since the end of 2023. However, pending sales suggest that the recent decline in mortgage rates helped demand to begin ticking up over the past few weeks. Fortunately, the recent reduction in rates has been coupled with an increase in supply—both from an uptick in resale inventory as well as a rebound in new construction in the latest data. After last week’s inflation report, homebuyers and homebuilders appear to be slowly regaining their confidence.
Real Estate Intelligence
Navigating Homeownership with an HOA
If you’re considering buying a home in a community governed by a Homeowners Association (HOA), you’re not alone. HOAs are common, offering a structured community environment with shared amenities and well-maintained surroundings. However, navigating life with an HOA can come with its own set of challenges and benefits. Here’s a handy guide to help you make the most of your HOA experience.
The Pros of Living in an HOA Community
Well-Maintained Properties and Common Areas: One of the primary advantages of living in an HOA community is the assurance that your neighborhood will be well-maintained. HOAs enforce rules that ensure lawns are mowed, properties are in good repair, and common areas are clean and attractive. This can enhance your home’s curb appeal and overall value.
Access to Amenities: Many HOA communities offer amenities like pools, gyms, parks, and clubhouses, providing a higher quality of life without the hassle and expense of maintaining them yourself.
Conflict Resolution: HOAs mediate disputes between neighbors, helping to resolve issues like noise complaints or property boundaries amicably. This can save you the stress of direct confrontation and promote a peaceful living environment.
The Cons of Living in an HOA Community
Monthly Fees: HOA fees are a regular part of life in these communities. While these fees go toward maintaining common areas and amenities, they can add a significant cost to your monthly budget.
Restrictions and Rules: HOAs enforce guidelines that can sometimes feel restrictive. From the color of your front door to the type of landscaping you can install, these rules are designed to maintain uniformity and property values. However, they might limit your personal freedom to modify your home as you see fit.
Potential for Conflict: While HOAs can help resolve disputes, they can also be a source of tension. Disagreements over rule enforcement, fees, or community decisions can cause friction between homeowners and the HOA board.
Tips for a Harmonious HOA Experience
Read the Rules: Before buying a home in an HOA community, carefully review the Covenants, Conditions, and Restrictions (CC&Rs). These documents outline all the rules and regulations you’ll need to follow. Understanding these guidelines upfront helps prevent any surprises.
Attend HOA Meetings: Stay informed and involved by attending meetings. These are opportunities to voice opinions and vote on community matters.
Communicate Effectively: If you have concerns or suggestions, communicate them clearly and respectfully with the HOA board. Building a positive relationship with board members can make it easier to address any issues that arise.
Stay Informed About Fees: Know what your HOA fees cover and stay updated on any changes. Knowing how your money is being used can help you appreciate the value provided by the HOA and avoid any misunderstandings.
Embrace the Community Spirit: HOAs aim to foster a cohesive, well-maintained community. Embrace the spirit of cooperation and mutual respect that an HOA promotes. Get to know your neighbors, participate in community events, and contribute to the positive atmosphere of your neighborhood.
Navigating life with an HOA can be a rewarding experience when approached with the right mindset. By understanding the pros and cons and following these tips, you can enjoy the benefits of a well-managed community while minimizing potential drawbacks.
MOTIVATIONAL MOMENT & FINAL THOUGHTS
The Moments of High Resolve ~ From the book “For The Inward Journey” by Howard Thurman
Keep fresh before me the moments of my high resolve.
Despite the dullness and barrenness of the days that pass, if I search with due diligence, I can always find a deposit left by some former radiance. But I had forgotten. At the time it was full-orbed, glorious, and resplendent. I was sure that I would never forget. In the moment of its fullness, I was sure that it would illumine my path for all the rest of my journey. I had forgotten how easy it is to forget.
There was no intent to betray what seemed so sure at the time. My response was whole, clean, authentic. But little by little, there crept into my life the dust and grit of the journey. Details, lower-level demands, all kinds of cross currents — nothing momentous, nothing overwhelming, nothing flagrant — just wear and tear. If there had been some direct challenge –a clear-cut issue — I would have fought it to the end, and beyond.
In the quietness of this place, surrounded by the all-pervading Presence of God, my heart whispers: Keep fresh before me the moments of my High Resolve, that in fair weather or in foul, in good times or in tempests, in the days when the darkness and the foe are nameless or familiar, I may not forget that to which my life is committed.
Keep fresh before me the moments of my high resolve.
From the book “For The Inward Journey” by Howard Thurman
“If you, O LORD, should mark iniquities, O Lord, who could stand?” Psalm 130:3
Howard Thurman reflects on the importance of remembering moments of strong resolve and inspiration. Despite the monotony and challenges of daily life, these moments of clarity and purpose, once vivid and powerful, can be forgotten. Initially, they seemed unforgettable and capable of guiding Mr Thurman through life’s journey. However, over time, the small, persistent challenges and demands of life obscure these moments.
The idea behind this reflection is to remember that In a quiet, reflective space, we prays to keep these moments of high resolve fresh in our memory. We seek strength and commitment to uphold life’s purpose, regardless of the circumstances.
Thank you for taking the time to read my August newsletter. Your continued support and engagement mean the world to me. I look forward to sharing more insights and reflections with you next month. Until then, may you keep fresh your own moments of high resolve and stay committed to your purpose.
Warmest Regards
Lamont Hyde
DRE 01863312 / NMLS 1478632
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