With more and more children doing schoolwork from their computers, parents far and wide have found an increased need for a dedicated study room at home. Whether your kids are distance learning, or they just need a quiet space to do homework and projects after school, it’s a great idea to create a purpose-built study space to keep them focused and on-track.
So, what are the best ways to create a home office space for your child? Distance learning is a novel concept for most parents, and it can be confusing to figure out what your child needs when you’re busy with your own job and responsibilities.
We have a few ideas that can help. Regardless of your child’s grade or interests, some things will make any study room helpful.
Read on for our study room guide!
It’s helpful to make your child’s study space well-lit, and not just through artificial lighting.
During the winter, when the sun hides away early in the evening, your child might spend most of their daylight hours cooped up in front of a computer. While letting them play outside with an at-home “recess” is a great idea, bringing some sunshine indoors can help them stay focused and energized throughout the day.
With all the additional challenges of distance learning, you don’t need a gloomy interior making it that much harder for your child to stay engaged.
Set their desk near a window or beneath a skylight to let your child enjoy natural light throughout their school day. They’ll be happier and more productive.
Picking a good desk is a chance to help your at-home learner to study efficiently. At most schools, desks are cramped and crowded. While distance learning is not ideal in many ways, you can at least make the experience better than in-person schooling when it comes to their desk by providing a more spacious surface where they can work.
If your student is very young, they may not need a huge workspace (or even fit sidled up to a full-size desk). However, you have the option of giving them a larger space so they have room for all of their things without resorting to putting books or assignments on their lap.
A good desk should be tall enough that there’s room for their legs underneath — but not so tall that they struggle to reach things they need. Some children may benefit from a desk that can transform into a standing desk. It may help you too, by using up some of their abundant kid energy!
Select a desk with your child’s needs and height in mind. Even better: ask them what they like when you’re doing your desk shopping. Letting your child help will make them feel more invested in the desk you buy, and they’ll likely enjoy using it for their schoolwork.
Did you know that good posture in childhood can help children establish good posture in adulthood? Buying your at-home learner a chair with their posture in mind may help them avoid back pain or other problems when they get older.
It’s no surprise that some office chairs are not ideal for posture. A chair that’s too thick and soft might just lead your child to fall asleep, while a chair that’s just plain uncomfortable might distract them or cause them to sit in strange positions.
You want a chair that has enough back support that they sit up straight and tall while doing their work. If stores are open, try bringing your child along to test out some chairs before you buy.
Let’s face it: Kids aren’t great at avoiding distractions. At school, these distractions are managed under the watchful eye of a teacher. At home, you may not have the bandwidth to keep an eye on your children every second of the school day.
To keep your kid on track for success, remove any unnecessary toys or games from the room that might be distracting (though we’ll include some helpful toys later on in the article).
Let your child know that while this decision may frustrate them, they’ll get their work done more quickly so they can play with all the fun stuff later on!
Make sure you know everything that your child is going to need for their classes. In school, they have tools provided for them, like pencils and pens, protractors, calculators, and computers. In your home, you need to get those things unless provided by the school for distance learning.
If you’re not sure what your child needs for their schoolwork, ask the teacher yourself. You don’t want your child to lose focus or fall behind because they don’t have a necessary item.
Once you have the necessities, make sure your child can actually reach them.
As adults, sometimes we forget that things can be hard to access for kids. Things on the top shelf might be easy for you to reach, but they may as well be miles away for a growing child.
Be sure to keep things in drawers or on shelves that your at-home student is able to reach. Once you have the right desk and chair, have your child sit there as if school is in session, and make sure that they can get to everything they’ll need.
Remember: If a child has to get up to go get something, it’s another opportunity for distraction.
If your child is a fidgeter (and so many are), they’re more likely to get frustrated with the quiet and solitary space of a study room. While your kid’s favorite toys aren’t ideal in the study room, it’s good to have a few things around that can keep their hands or feet busy.
We suggest something that can go under the desk, like a yoga ball or a foot cycle, to keep their lower body active. They can also play with clay, a fidget spinner, or other small sensory objects to keep their hands busy. Check in on them when you can, to see if a fidget activity has become a distraction. You can always switch items out until you find a good balance.
It’s a good idea to provide some sort of recreational space for when your child needs a break. Rather than letting them run to their bedrooms and all their fun stuff, or off to the park, you can provide a sensory playtime that won’t cause them to lose focus.
Consider some kind of mind game or a sensory path that your child can use to release some extra energy before they get back to work. Sunlight and outdoors time is healthy and necessary, so let them play for a bit to blow off steam.
In order to make the most of distance learning, your child needs a thoughtfully designed study room at home. Make sure you have everything they need for a productive school day. The goal is to recreate the classroom experience.
If you’re looking for a new home that has extra space for your child to study, we’re happy to help! Whether you’re looking for more home improvement advice or you want to sell or buy a home, connect with us today to discuss your options
With the holiday season in full swing, you might be wondering: Should I buy a real or artificial Christmas tree? A majority of Americans decorate a Christmas tree for the holidays, but you may not have considered whether a real or fake tree is better for the health of your family and the environment.
This year, we decided to look into the health and environmental impacts of real vs artificial Christmas trees. In this article, we’ll explore the history, production and disposal of real and artificial Christmas trees, and we’ll share some tips to help you reduce your carbon footprint and have a “green” Christmas!
So, should you buy a real or artificial Christmas tree? Let’s find out, starting with a little background on the subject.
Predecessors of the Christmas tree date all the way back to ancient Rome, but their modern conception comes from 16th-century Germany. Early Christmas trees were adorned with apples, candy canes and festively shaped pastries — decidedly more edible decor than the current fashion of lights and ornaments. Hessian soldiers brought the tradition from Germany to North America during the Revolutionary War, and by the 19th century Christmas trees were popular throughout the young United States.
All Christmas trees were real until Germany innovated again, inventing artificial trees in the 19th century. The first artificial Christmas trees were crafted from goose feathers dyed green to mimic evergreen boughs. Fast forward to the present, and you can now buy an artificial Christmas tree made of PVC, optic fiber, mylar, cardboard, glass — you name it!
Today, over three quarters of American homes display a Christmas tree during the holidays, and over 80 percent of those trees are artificial. The trend is clearly towards artificial Christmas trees, but that may not be the healthiest option for your family or the environment. Here’s why.
At face value, artificial trees sound like a win-win proposition. Obviously, you don’t need to fell a real tree to get an artificial tree. Sounds pretty green! Even better, you can reuse your artificial tree and save another tree every year. However, these perceived benefits are based on the notion that chopping down a real tree is bad for the environment. In fact, it’s quite the opposite.
Real Christmas trees are actually grown on farms, like the produce you buy at the supermarket. It takes about eight years for the trees to grow to popular heights of five to seven feet, so the Christmas tree industry maintains an expansive forest habitat that might otherwise not exist. According to The Nature Conservancy, “Out of the 350-500 million growing on tree farms across the U.S., only 30 million trees are harvested for Christmas each year.”
Christmas tree farming occurs in all 50 states, so buying a real tree is more akin to patronizing your local farmers’ market, rather than supporting large-scale deforestation. Buying a real tree helps to incentivize those farmers to continue growing trees, capturing carbon, and providing more healthy forest habitat where wildlife can thrive. That’s all good stuff!
If real Christmas trees are a crop, does that mean they’re sprayed with pesticides? Unfortunately, yes. As Dr. Nathan Donley outlines in this 2019 article, real trees are sprayed with some pretty nasty stuff to help them grow successfully. But if proper farming practices are followed, the pesticides should not be around when you bring your tree home.
Pesticides are labeled with a “pre-harvest interval” which tells farmers when they can apply their last spray before harvest. Christmas trees are last sprayed in the spring or summer, which gives the pesticides time to break down before the trees are cut and sold. According to Jeffrey Jenkins, Ph.D., an environmental toxicologist and professor at Oregon State University, “These products [pesticides] have been evaluated by the EPA and they have a very long and involved process for evaluating potential impacts on human health.”
So yes, pesticides are used on Christmas trees, but it’s not a major cause for concern. In his article, Dr. Nathan Donley states confidently that “the last thing you should do is go out and buy a new plastic tree. That is by far the worse choice for your health and the environment.” Here’s why.
Artificial trees are manufactured. Most artificial trees are made of PVC, or polyvinyl chloride, which is a non-recyclable, non-biodegradable plastic. When PVC is manufactured, burned or landfilled, harmful dioxins are released, potentially leading to developmental and reproductive problems in humans and animals. This is definitely not good for your health or the environment.
To make matters worse, most artificial trees are produced overseas. That means less money goes to local farmers, and more fossil fuels are burned to ship the fake trees to be sold in the US.
As far as production goes, real Christmas trees are the clear winner over artificial trees for personal and environmental health.
Real or artificial, chances are you have a tree. When the holidays are over, what do you do with it?
With an artificial tree, you can pack it away for next year. In addition to the convenience of simply pulling your tree from storage, reusing the same artificial tree over a period of years helps to diminish the environmental impact of its initial production. That is, as long as you’re not buying a new artificial tree every year.
If you do get rid of an artificial tree, it will likely end up in a landfill. As we mentioned previously, the PVC from which your fake tree is made is not recyclable, and it is prone to releasing negative chemical compounds into the environment. In short, if you’re going to buy an artificial tree, make sure it’s something you’ll be happy to use for a long time.
If you go with a real Christmas tree, you have a few environmentally friendly options to get rid of it. Real trees are recyclable, and most municipalities offer curbside pickup of real trees after the holidays. For info on how and where to recycle your tree in Orange County, check with your local city waste management department as most will have a system in place.
Another green option is a real, potted Christmas tree. Potted trees are live trees that you can decorate and nurture for the holidays, then plant in your yard and watch it grow. The downside is that they tend to be on the small side, as a large tree would be heavy and require a hefty pot. But if you have a hankering for the real thing, and you have a place to plant it, a potted Christmas tree is a great option.
From production to disposal, real trees have less negative impact on the environment than artificial trees. Of course, there are a few more factors to consider when you make your next Christmas tree purchase. Let’s wrap up by listing out the pros and cons we’ve listed, and a few more for good measure.
For the most environmentally-friendly Christmas, we recommend purchasing a real Christmas tree. If you must use an artificial tree, or if you already have one, try and use it for as many years as possible to minimize the negative environmental impact.
While the Christmas tree is not ubiquitous, it is certainly a centerpiece of holiday cheer in our households, and maybe in yours too! We hope this article can help you make green decisions in your holiday decorating endeavors this year and into the future. And when the time comes to rethink your living arrangements, we hope you’ll think of the Stavros Group as your trusted adviser in real estate decisions as well. Let us know how we can help!
Happy holidays!
Are you looking for a few new paint colors to put in your home this upcoming year? Do you want more inspiration for ways to liven up your current layout? If so, then take a glance at these latest color trends for popular paint colors.
Exploring these trending tones for 2021 can help you get a year ahead of the curve. It’s a fantastic way for you to reimagine your spaces, impress your guests, and update your home from “late” to “great.”
Not to mention: All these months stuck indoors, you’re probably getting sick of looking at the same old floors and ceilings and walls. A fresh coat of paint might be just what you need to reinvigorate your love for where you live.
To give you some #inspo, we wrangled up some hot upcoming paint colors in the pipeline at Sherwin-Williams, that you can use to liven up your living spaces and bedrooms in the weeks to come.
Over the years, neutral colors have gained more and more popularity as a gentle backdrop on which to make your mark with colorful pops of decor.
As a top Orange County real estate team, we always recommend neutral tones to our seller clients during the staging process. Neutral paint helps prospective buyers to more easily envision themselves living in the home, rather than be put off by a bold and very personal color choice like a rich purple or bright green.
Sherwin-Wiliams is predicting even more interest in neutral hues in 2021, albeit with a different flair! Their Continuum color palette is a perfect mix of wishful blues, yellows, and grays with a subdued energy. Following a set color palette is a great way to tie many different materials, fixtures and appliances in your room together.
Use it in your kitchen to blend stainless appliances with the classic outline and materials of your counters and cabinets. Paint it in your living room to breathe a cool and lively vibe into the space.
Now more than ever, we could all benefit from a healthy helping of inner peace. Being stuck at home throughout a pandemic has made that difficult, with work and rest and school and meals all happening within the same four walls.
The new Sanctuary paint palette tries to capture the calming, peaceful respite that might be missing from your daily life, with a mix of earthy colors inspired by nature. It includes five different shades of brown ranging from dark to light, plus oakmoss green and various grays.
What may surprise you most is the versatility of this blend. It creates a comfy and welcoming vibe in any room that you paint it.
Use it in a guest room to welcome visitors with a cozy beige wall and matching furniture. Place it in your bathroom with white counters and cabinetry — it blends well with wicker baskets, wood floors, reflected in mirrors, and mingled with most common decor.
With all the stressful events of this past year, wellness is a priority. Paint these homey and earthy tones in your home to craft a peaceful retreat with a calming presence. It’s your great escape from the crazy, modern world.
For Orange County home sellers, these rich and pleasant hues are perfect to welcome potential buyers and make them feel instantly at home. They look great online, as well, which is a big plus for all the virtual home tours being hosted these days!
How about a blend of the modern serenity of neutral colors and the bold personality of 80’s acrylics? If that sounds up your alley, then the Tapestry palette is the perfect combination for you.
Tapestry features dark colors such as Cape Verde and Alexandrite Green, Tricorn Black, and Perfect Periwinkle. These darker hues are smoothly contrasted with more vibrant colors like Jaipur Pink and Enjoyable Yellow.
This is the ideal blend for anyone that’s looking to make a statement while maintaining a refined polish. These colors go great with interesting textures, patterns and textiles. Perfect Periwinkle is an ideal pairing with bold yellow material.
If you’re feeling handy, mix these colors together on a self-made feature wall. Use one more prominently than the rest to accent a living room, dining room, bedroom or bathroom.
No matter how you use it, you are bound to make a statement: there’s never a dull moment in your household. Tapestry exudes swagger and poise while remaining subtle enough to keep a warm and welcoming vibe inside your home.
Perhaps because of the necessity of staying indoors so much of this year, Sherwin-Williams is doubling down on their offering of earthy tones in 2021.
Natural hues of brown and green offer an organic inspiration for peace and comfort. They exude a calmness that can help you escape the world around you. This makes them great colors for bedrooms, bathrooms, and anywhere else that you’d go for some peace and quiet.
Enter the Encounter painting blend, which features ten separate colors that tie together for a hearty helping of well-being and zen. Hues of Rosemary and Reddened Earth harken back to simpler times, to the beauty of nature and of handmade craft. These pair well a decorative clay pot, with your favorite houseplants, or with natural wood finishes.
Encounter is meant to help you capture the simple moments in life. It inspires introspection, to cherish the important experiences and heartfelt conversations that you’ll enjoy in 2021 and for years to come.
With all of these different color combinations in play for the year 2021, one thing is abundantly clear: earth tones are likely to be a very hot trend in interior design next year.
As we hope for health for our loved ones, safety in our communities, and a return to open society while the current year winds down, it makes sense that we would go back to basics with colors that connect us to the elements.
It may sound like a stretch, but color truly does inspire. The right palette in your home can help you foster a sense of calm, of community, of family and friendship. If you’re looking to mix things up, these color combinations can help you get in the right frame of mind for comfort and connection.
While you’re at it, consider the decor and furniture you already have in your house. Let that be your guide for the colors and composition that you select. You may be surprised how the things you already have can take on a new life and personality in a freshly painted environment.
Do these trending paint colors inspire you to change up your living spaces? We hope, at least, that they help you think about some simple improvements you can make to your home and your lifestyle.
If you are considering listing your home for sale and looking to spruce up its look before hitting the market, you might also be interested in our article on how to master real estate negotiations.
If you have questions on how best to position your Orange County home for sale, who to call for painting services, or anything else real estate related, feel free to contact us anytime! We are happy to lend our expertise on all things Orange County real estate.
By the summer of 2020, about 40% of Americans were working full-time from home. American companies’ response to the COVID crisis has supercharged the upward trend of more and more jobs being performed remotely, in an increasingly digital economy.
Countless businesses have transitioned their teams to remote work or “work from home,” with many having decided that they’ll keep it that way in perpetuity.
Whether you’ve just started working from home or you’ve been a remote worker for years, there are special considerations for you to take into account when buying a home in Orange County. We can clearly see these market shifts in the latest real estate trends like Zoom rooms and dedicated home-office spaces.
In this article, we’ll share 8 tips on choosing the perfect house where you can work remotely in perfect peace and comfort.
There are a lot of benefits of remote jobs, but it can take some getting used to if you’re new to it. When deciding on a home to buy as a remote worker, you’ll want to take into consideration your routine, your preferred style and setting for work, and how those factors might impact the type of house you’re looking for.
Do you need absolute silence to be able to focus on your work, or is some sign of life — background noise and activity — actually helpful to your creativity and flow? Do you miss the unplanned social interactions of the office, or do you revel in the solitude of your new work-from-home setup?
Be honest with yourself about what works for you and what doesn’t. While you’re working, take breaks to consider what is going well and what could be improved. Buying a new house is your chance to make changes and improvements to benefit both your productivity and your well-being.
Since the start of the COVID pandemic, a lot more people are working and studying from home than ever before, including kids! Will you have the whole house to yourself throughout your work-from-home workday? Chances are, maybe not!
Take some time to think about what the other members of your household are up to and what their schedules are like. If your spouse still works out of the house and plans on doing so for quite some time, you might prefer to work from a desk in the living room or at the kitchen table, rather than try to create two separate office spaces. Or maybe you can share an office together! Maybe you value a bigger yard for after-work relaxation more than a whole bedroom dedicated to work.
If your spouse works from home and your kids are attending virtual school from home too, you will probably place a premium on having your own separate workspace. Distractions are the bane of productivity, and having the whole family at home with no personal workspace is a recipe for constant distraction.
Depending on your line of work, you might need a rather large office or just a simple desk to work at with your laptop. Do you need a printer? A big all-in-one scanner/fax/printer/espresso machine? Do you need a massive desk to spread blueprints or documents or sketches, or just a little area to place your MacBook?
It’s important to figure this out before you make an offer on your dream house, because you’re going to want to make sure you have the space you need for your ideal home office setup. Most Americans spent at least as much time working as they do anything else, so a comfortable and efficient workspace is nothing to skimp on.
Throughout the COVID era, home tours and open houses have largely moved online. More than ever before, listings are able to be viewed virtually via 3D home tours. A 3D tour is a perfect opportunity to scope out and plan your potential home office setup, before you invest more time in discussing the property with your agent and scheduling an in-person tour. Check out this article for more info on the benefits of virtual home tours.
If you have family members or roommates who are also working from home, you might want a house that has an office space with some distance from the busy common areas. When lunch is being made, or the kids are on a break, things can get noisy fast!
Having your workspace right next to the kitchen or living room or nursery is likely to be a recipe for disrupted Zoom calls and derailed trains of thought. If available, explore 3D home tours, floor plans and photos, to see where you might end up working relative to where distractions will happen in the house you are considering to buy.
When you work from home, it’s more important than ever to get some air and change your environment from time to time. Even if having your own backyard wasn’t important to you in the past, you might want to reconsider that when you’re working from home. It’s amazing what a change of scenery can do for recuperating after a long day’s work, or even just stepping outside for a five-minute break and a breath of fresh air.
Should you get a condo? A house outside of town? Something right in the center of all the action? These are questions that every prospective home buyer should ask, but they are even more important for those who will work from home.
There are pros and cons to all of these options. If street noise is going to drive you crazy when you’re working from home, you’ll probably want to buy a single-family home with a bit of yard space on a secluded street. If the sound of activity helps motivate you, consider looking for a spot right in the city. Or maybe these factors don’t matter much to you; there are many other considerations to make when buying a home. Decide what matters most to you and your lifestyle!
Also, if you have friends and family living in a certain Orange County town or neighborhood, you might choose to prioritize that neighborhood over others. Working from home can sometimes feel lonely or isolating, and you’ll be more likely to interact with your friends and family if they live nearby.
Just because you work from home doesn’t mean you won’t have to go into the office occasionally. While it’s great that your home’s location doesn’t have to be dictated by where your office is, you still might not want to create a brutal commute for yourself when you go in for your weekly meeting.
Lots of people right now are dealing with cramped remote-work conditions because they’ve been forced to create workspaces in small spaces. Since you’re in the market for a new house, you’re fortunate to be able to choose your home based upon your needs.
If both you and your spouse are working from home, it’s highly advisable that you each have dedicated workspaces. If you have children who are distance learning or studying for college, you’ll want to make sure they have enough space too. This is your chance to find a home that works for everyone in your household. Make the most of it!
Is it time for you to find your perfect home in Orange County? At The Stavros Group, we’ll help you find exactly what you’re looking for. Start the no-pressure conversation and contact us today!
Hi friends,
Maybe more than anything else, your home determines your quality of life.
It’s what makes our job as real estate agents so rewarding: every closed sale marks the start of a bright, new chapter for our clients.
It’s also why, during these months of home-bound living, Google searches for “home improvement” have shot through the roof, and why Home Depot’s stock has risen 30% year-to-date.
With mortgage rates at historic lows, Orange County homebuyers are jumping at the chance to upgrade their living arrangements and improve their quality of life.
Coupled with a low supply of listing inventory, this increase in buyer demand has coaxed Orange County closing prices to new heights. We expect this trend to continue into a busy fall season.
Maybe you’re just looking for an incremental upgrade to your lifestyle. Given the smoky skies, we recommend investing in an air purifier and changing your HVAC filters.
If you feel it’s time for a bigger change, we’re happy to help! It’s a unique time with lots of opportunity for both home sellers and buyers. Let us know your real estate goals, and let’s talk strategy.
Talk soon,
Marilie Bunce
Stavros Group
Hi friends,
Amid a sweltering heat wave, the Orange County housing market is red-hot too. Much like your valiant AC unit, home sellers and their agents are working overtime to meet a blaze of unforseen demand.
Last month, Orange County listings spent an average of 16 days on market. That’s a 36% decrease from July 2019. Sales prices are higher than ever as supply struggles to keep pace, and OC homeowners find themselves in an enviable position.
Today’s fast-paced market can be attributed to a few things. Record-low mortgage rates have empowered buyers, and social distancing has shifted their priorities. Pent-up demand is being released. Plus, real estate remains a relatively safe bet in a time of economic uncertainty.
Buyers want more space to cook, to school, to play and to relax. They want views of nature without leaving the house. Our newest listing certainly fits the bill.
2675 Riviera
Meet 2675 Riviera Drive.
A 13,000 SF estate in the ultra-exclusive Abalone Point (seen above) in Laguna Beach’s guard-gated Irvine Cove enclave, featuring unmatched views spanning nearly 300°.
See below for more info.
Whether you are in the market to sell or to buy, for an ultra-luxury oceanfront estate or a cozy suburban retreat, there is opportunity for everyone. But you have to be fast to make it happen.
If you’re interested in making a change to your living arrangements, or if you have a question about the market, please don’t hesitate to reach out. We’re happy to help.
Talk soon,
Andy Stavros
As we battle both a healthcare crisis and an economic crisis due to COVID-19, it can be hard to keep up with topics that might otherwise be important to you like mortgage rates and opportunities in the Orange County housing market.
When you do find time to consume the economic news, you might find it hard to digest. You’ll hear jargon like margin calls, short sales and T-notes. What does it mean for your average Orange County homeowner? What does it mean for Orange County home buyers and sellers?
Instead of relying on opinions from the talking heads, you can stay better informed by understanding the underlying principles behind housing and mortgages.
In this article, we’ll cover the broad strokes of the latest mortgage and housing news. We’ll explain the difference between the Federal funds rate and the 10-year Treasury note, and their effects (or lack thereof) on mortgage rates. And we’ll explore the unique challenges and opportunities presented by COVID-19 to Orange County homeowners and prospective buyers and sellers.
The economic impact of COVID-19 has been swift and far-reaching. In just a few weeks between February and March, the stock market lost all its considerable gains from the previous three years. This sharp decline prompted the Federal Reserve to cut rates down to rock bottom (0.00-0.25%) on March 15th. Sounds good for businesses—what about prospective homebuyers?
When you hear that “the Fed cut interest rates,” that refers to the Federal Funds Rate. It’s the interest rate that the Federal Reserve charges banks who in turn lend to businesses and individuals. Lowering the Federal Funds Rate gives businesses easier and cheaper access to capital, thereby improving their quarterly outlooks and share values.
Since stocks are seen as a relatively short-term investment, other short-term investments tend to follow the same trajectory. In mortgage markets, these include variable-rate loans, such as 3/1 and 5/1 ARMs, as well as home equity lines of credit, or HELOCs.
As the Federal Funds Rate rises and falls, so do the rates on these shorter-term real estate loans. Rate cuts by the Fed directly benefit Orange County homeowners with an adjustable-rate mortgage and Orange County homebuyers looking to get one.
But adjustable-rate mortgages are nowhere near as popular as longer-term mortgages like the conventional 30-year fixed-rate. How are those affected?
When investors are spooked by uncertainty in the stock market, they flock to more secure and long-term investments like Treasury notes and mortgage-backed securities.
You’ve probably heard of the “10-year T-note,” at least in passing. It is the most widely tracked government debt instrument and a common benchmark for other economic indicators. Along with other bills, notes and bonds, the US government partially funds itself by issuing 10-year Treasury notes. Investors receive a modest and relatively safe return in the form of interest payments that are exempt from state and local taxation.
You probably know about mortgage-backed securities, too—they precipitated the Great Recession. When a lender loans capital to a homebuyer, they don’t necessarily hold onto that investment. Oftentimes, they package the debt and sell it, acting as a middleman between many homebuyers and their ultimate debtholder. If the economy falters, that debtholder is left holding a big bag of bad mortgages. So begins a cascade of financial ruin, which in 2007-2008 we saw firsthand. Fortunately, lending standards are tighter now, and Americans as a whole are less leveraged with debt.
Because mortgage debt securities and Treasury notes are both long-term investments, their rates also tend to follow the same trajectory. When wary investors shift from stocks to long-term investments, that increased demand prompts lower interest rates on the long-term investment supply.
In short, the falling stock market led indirectly to lower 30-year fixed mortgage rates due to increased demand for long-term investments.
On March 5th, the national average rate for a 30-year fixed mortgage hit its all-time low of 3.29%. Homeowners and buyers leapt at the opportunity to take advantage of this historic low, and lenders were soon overwhelmed by an onslaught of refinancing applications. In response, mortgage lenders raised rates back up to 3.65%. Since then, rates have fallen yet again and leveled out at a very attractive 3.33% over the past two weeks.
With average 30-year fixed mortgage rates again close to historic lows, now is a great time to refinance your existing mortgage or even buy a home.
Keep in mind that refinancing has costs. All told, the fees associated with refinancing—like closing costs, term extensions, and debt consolidation—can total upwards of $5,000. The first step is to make sure the numbers work out in your favor.
Conventional wisdom says that you should only refinance if current rates are at least 1 or 2% lower than your existing mortgage. However, real estate analytics firm Black Knight contends that a refinance makes sense for any homeowner with an existing mortgage more than 0.75% (or 75 “basis points”) higher than the going rate.
For prospective homebuyers, low rates mean they can afford more home with the same savings and income. Every basis point, up or down, makes a tangible difference in the cost of a mortgage across its lifetime. At 3.33%, today’s near-rock bottom 30-year fixed rates are incredibly appealing for buyers. The question is… during a global pandemic, are they willing to buy?
The impact of the novel coronavirus is still evolving throughout local real estate markets and the national economy as a whole. Stay-at-home orders make home tours complicated, if not impossible. If you’re looking to buy a home while rates are low, are you open to making an offer based entirely on a virtual tour, videos, photos, and a look at the exterior? Are you open to leaving your place of residence to tour a property with your partner and a showing agent?
At the Stavros Group, we are working hard every day to facilitate the needs of our buyer and seller clients with the utmost concern for their health and safety. Some buyers and sellers are motivated by external life events like relocation, divorce, or a birth or death in the family. Some buyers are looking to take advantage of low rates while they last. The good news is that, although business has inarguably slowed, sales are still happening. New listings are coming to market, properties are entering escrow, and deals are being closed.
If you are thinking of buying or selling a home, taking advantage of low rates by refinancing, or if you simply have a question about the market, feel free to reach out. We are always here to help, and it’s our honor to be of service. Now more than ever.
Stay safe, stay healthy, and stay in touch—figuratively, of course!
Last week, mortgage rates hit an all-time low. Maybe you’ve heard, it’s big news. On March 5th, 2020, the national average interest rate for a 30-year fixed mortgage clocked in at 3.29%. That’s the lowest recorded rate in the almost 50 years since Freddie Mac began keeping track in 1971. It’s a momentous occasion—historic, even.
Of course, there’s other, bigger, more somber news these days. The risk of global pandemic is wreaking economic havoc and pushing rates even lower. It goes without saying that these record-low rates aren’t exactly cause for celebration. Like the rate cuts that followed the Great Recession, today’s boon for borrowers follows another worldwide emergency. The novel coronavirus, or COVID-19, dominates the headlines. It’s impossible to avoid, and for good reason: in times like these, it’s best to stay informed.
In that vein, we thought we’d take a look at how the spring real estate market is shaping up. While we can’t predict the future, we are informed by indicators like historically low mortgage rates and the current state of the market.
Here’s the good news: When rates are low, both buyers and sellers win. Before reaching the current low, mortgage rates began to fall during the global economic crisis of 2007-2008. Rates started 2007 well above 6% and averaged about 5% in 2008. By November 2012, they reached the previous historic low of 3.31%. After bumping back up to mid-3 and 4% in subsequent years, rates again began to drop in 2019. In a nutshell, buyers shopping for a mortgage have had it good for quite a while now.
Today’s all-time low average mortgage rates mean buyers can spend more on the principal of their loan instead of the interest. They can be approved for a larger loan, enabling them to buy “more house” with the same savings and income. Additionally, some would-be buyers who couldn’t afford to buy an Orange County home may finally get the chance they’ve been waiting for.
As you can see, mortgage rates greatly impact both monthly payments and the total cost of a 30-year fixed-rate mortgage.
The benefits of today’s all-time low mortgage rates extend to existing homeowners and sellers as well. When more buyers are shopping with more money to spend, listings receive more interest and competition. That means better outcomes for sellers. Existing homeowners can win by refinancing. Analytics firm Black Knight recommends refinancing on any loan that’s at least 0.75% higher than the current average. There are some associated costs, but you’ll save thousands more if you can refinance to a significantly lower rate.
In a vacuum, reaching the historical low mortgage rate could be considered great for everyone. It benefits buyers, sellers and existing homeowners. But, unfortunately, there are extenuating circumstances to consider.
Unlike low mortgage rates, the effects of a possible global pandemic on Orange County real estate are a bit harder to guess. What we do know is that COVID-19 is very likely to spread further throughout the country. Fears will heighten, schools may shut. The ultimate toll that the virus might take on our country’s populace is unknown, but it is expected to be significant. The economy will also take a hit, and it already has.
Around the world, stock markets are plunging as business has crawled to a halt in some regions and industries. Despite lower rates, buyers whose down payments or reserves are in stock may actually have less buying power. If the virus spreads widely throughout the United States, the Orange County real estate industry may also slow. Open house events at Orange County homes for sale will be less populated during a pandemic. On the other hand, foreign investors are reportedly eyeing US real estate as an even safer investment than before the virus broke out. Call it a silver lining to a particularly grey cloud.
We also know that the Orange County real estate market has been largely unaffected so far. Buyers and sellers who are motivated by external circumstance (ie. a new marriage, new baby, new job, death divorce, etc.) are still participating in business as usual. The most affluent sellers or those who are in no real rush may elect to wait. If the disease fades away, things may stay the same. If the situation gets worse, they may change.
For now, Orange County real estate is still chugging along. Homeowners, buyers and sellers alike can take advantage of historically low mortgage rates. For those with an externally-motivated reason to buy or sell, that motivation hasn’t changed. Those are good things. If you’re interested in buying or selling an Orange County home, or if you need a recommendation for a trusted Orange County lender, let us know. We’re happy to help. Most importantly, follow the CDC’s guidelines for disease prevention, and take good care of yourself.
Whether you’re looking to buy your dream Orange Coast luxury home, spruce up your Orange Coast luxury home for sale, or just browse what’s happening in Orange Coast luxury real estate, the new year brings some interesting trends in both form and function.
Some Newport Beach, Laguna Beach and Corona Del Mar luxury homes feature out-of-this-world amenities like a movie theater, full gym and spa, or a vast wine cellar. However, adding a touch of luxury to your home doesn’t necessarily mean multi-million-dollar renovations. By reimagining a room with the latest in fine fixtures and finishes, you can add value and style to your existing residence at a relatively low cost.
In this article, we’ll explore some of the latest in luxury home design trends for 2020. Starting with…
tophomedesign | CC BY-SA 2.0
A steam shower is two parts: first, the steam generator which heats water to produce the steam; and second, an enclosed shower stall which traps the steam inside. With the press of a button in your shower stall, the steam generator is activated to quickly heat water to a safe and comfortable temperature. The resulting steam is channeled through your shower system to fill the enclosed stall, resulting in a soothing and luxurious shower experience!
Installing a steam shower provides luxurious, high-end features and even health benefits to your Orange Coast home. Steam can clear stuffy nasal passages, soften your skin before a shave, open your pores, increase circulation and lower blood pressure. With adjustable digital controls for timing, temperature, and even music or scents, the modern steam shower is highly customizable. Additionally, steam showers are quite water-efficient and only use about 2 gallons of water for a 20-minute shower.
Through the years, wallpaper has gotten a bad rap. Now it’s back with a stylish vengeance. Gone are the days of tawdry, stuffy designs once smattered over your Grandma’s kitchen walls. There’s a whole new industry of luxurious, fashion-forward wallpaper designs. For relatively little cost, you can redo a room or add a feature wall to spruce up your Orange Coast real estate.
With so many designers out there, who should you choose? If you’re interested in designer wallpaper, take some time to explore all the options. You’ll find hundreds and thousands of designs with a quick Google search, with many options easily available from online retailers like Houzz or big box stores like Home Depot.
Bill Wilson | CC BY 2.0
Nothing says luxury like a great selection of fine wines. Of course, any growing collection will require storage. Some Orange Coast luxury homes feature vast wine stockpiles, from spacious cellars of rich mahogany or chic glass displays with LED lighting. But since adding a full new wine cellar to your home is no small task, the next best thing is a dedicated wine fridge! It’s a luxurious solution to keep your cache of spicy reds and oaky whites in top shape.
A refrigerated wine cooler is the perfect way to ensure your wines are stored properly. Both built-in and free-standing units are available, ranging from just over $200 to $10,000 and beyond. A wine fridge is convenient, luxurious, and sure to impress your guests. When the time comes to sell your Orange Coast home, don’t forget to specify whether you will take the unit with you or include it in the sale.
If you keep an eye on the luxury market, you’ve likely noticed a trend towards “indoor-outdoor” living. Many Orange Coast luxury homes feature large glass panels and sliding doors which serve to seamlessly blend exterior space with the interior. With more and more value placed on functional exterior space, why not make the ultimate upgrade and create an outdoor kitchen?
There are not many ways to better enjoy your backyard than cooking and lounging on a beautiful patio. High-end outdoor kitchens often include full installations of cabinetry, cooktop, grill and wet bar. Even if you’re not looking to drop tens of thousands on exterior improvements, installing a built-in grill with counter space can make a big difference towards entertaining friends and family.
Most Orange Coast homes these days have at least one or two smart devices. Maybe you wake up to Amazon’s Alexa playing your favorite song, or maybe you ask your Google Assistant to hit the lights when you hop into bed. In recent years, the Internet of Things has grown to include so many more appliances, you can now upgrade your home with a full suite of smart devices.
The modern smart home allows for easy control of temperature, lighting, security, entertainment, and more. From door locks to wifi to Spotify playlists, much of your daily life can now be smart-equipped for voice control and automation. Not to mention, you can do it all from thousands of miles away (if you so require). We think that luxury means more than extravagant adornments. It means functional ease and convenience. By that definition, outfitting your home with smart-controlled systems is the ultimate in modern luxury living.
As your trusted Orange Coast real estate experts, it’s our goal to provide guidance, insight, and understanding for anything real estate related. Whether you’re looking to buy a[n area] home, sell a[n area] home, or you’re happy with the Orange Coast home you’re in, we hope these friendly articles offer you some insight into the world of Orange Coast real estate.
For more information about the Orange Coast real estate services we offer, reach out to start the no-pressure conversation. We are always happy to lend our expertise to explore your options.
