How we helped David sell his home by going above and beyond with our research

"We had excellent results when we worked with Frank. He sold our house very quickly and got us more than we expected. Everything went pretty smoothly! He really went above and beyond in getting comps for us. He went around our neighborhood and even went to some open houses just to see what they had done in comparison to our house so we had more justification of why our house had a better comp. I’ve never seen anyone do that much research so I was really impressed!"

Taking a Look at Past Interest Rates

There are many great Orange & LA County area homes for sale. Click here to perform a full home search, or if you're thinking of selling your home, click here for a FREE Home Price Evaluation so you know what buyers will pay for your home in today's market. You may also call me at for a FREE home buying or selling consultation to answer any of your real estate questions. 

There's been quite a bit of speculation about whether interest rates are going to rise soon. While everyone agrees rates will rise sometime next year, no one really knows when. One thing we do know is that rates are currently at historic lows. Based on a $200,000 home and a 30-year fixed-rate mortgage, we put together this chart to illustrate how lucky we are right now:

• 1970s: The average rate was 8.86%, the average payment was $1,589
• 1980s: The average rate was 12.7%, the average payment was $2,166
• 1990s: The average rate was 8.12%, the average payment was $1,484
• 2000s: The average rate was 6.29%, the average payment was $1,237 
• Today: The average rate is 4.10%, the average payment is $966

Even with rates expected to rise, we are in great shape historically. If there is a one point increase, rates will still be well below the average of the last four decades. The market is in a strange place right now - prices are softening, inventory is starting to rise, and interest rates are incredibly low. Really, it's a fantastic time to look for a home.

One thing to think about, however, is the potential for rates to rise more than a single point. If the past decades tell us anything, it's that rates are never this low and if they are, they don't stay low. Years from now, people won't be talking about the price they got for their home, but the interest rates they were able to lock in!

Whether you're refinancing, downsizing, or upgrading, now is the time to lock in an incredibly low interest rate and increase your future spending power. Low rates make or break what you're able to afford payment-wise, so give us a call and we'll set you up with some great lenders. We look forward to hearing from you soon!

Inventory and Home Sales: What's the Relationship?

There are many great Orange & LA County area homes for sale. Click here to perform a full home search, or if you're thinking of selling your home, click here for a FREE Home Price Evaluation so you know what buyers will pay for your home in today's market. You may also call me at for a FREE home buying or selling consultation to answer any of your real estate questions.

Our market has been changing a lot lately. One area where we have seen a lot of change is in inventory. In the video, we created a bar graph that illustrates the point. This graph shows both our available inventory and our sold homes over the last 9 years. We collected the data from the past 9 years specifically because 9 years ago is when the market shifted. The public didn't see this shift until 2006 and by that time it was too late.

An interesting note regarding the graphs:

Back in August 2005, we had just under 1200 homes for sale and 600 homes sold. Fast forward to August 2014, where we have 1100 homes for sale and only 400 homes sold. It appears that history may be repeating itself. Back in 2005, this caused inventory to skyrocket and prices plummeted for the next 5 years. Such trends were not just exclusive to Orange County, as both San Bernadino and Los Angeles County experienced the same increase/decrease activity between inventory and homes sold.

So what does this mean for home buyers and sellers? Well, it's basic economics. The lower the supply, or in this case, properties, the higher the demand for it. As a result, people pay a higher price. The higher the supply is, the less the demand to buy it. More importantly, this results in a much lower price. This increase in inventory and subsequent slow in sales is one of the many factors that are resulting in market change.

Real estate is hyper-local. Each area is a little different. If you want to see what is actually happening in your specific town or neighborhood, send us an email with the name of the area to fdelrio@live.com. 

Our intention is to provide you with the most accurate information possible so you can make the best decision for you and your family. If you have thoughts about refinancing and are therefore waiting for more equity, now actually may be a good time to start before prices slide back further. If you are thinking of making a move in the next 3-4 months, you may want to take a closer look at your situation to see if it makes sense to start now before prices come down even further.

You probably know someone who has owned a home from 2006-2012 and wished they would have sold in 2005 before the prices went down and they lost all their equity. We don't want this to happen to you or anybody you know this time around, so do us a favor. Forward this video to someone you think it will help. Of course, if you need to speak with me about your situation, give us a call and we can discuss a good game plan for you.