FALL 2020 SPRING 2021
QUARTERLY UPDATE
Take Advantage of Your Home Equity: A Homeownerʼs Guide
Take Advantage of Your Home Equity:
Homeownership offers many advantages over renting, including a stable living environment, predictable monthly payments, and the freedom to A Homeownerʼs make modifications. But oneGuide of the biggest benefits it offers is the opportunity to build wealth over time. Researchers at the Urban Institute found that homeownership is financially beneficial for most Homeownership offershave many advantages shown that theover median families,1 and studies renting, including a stable living environment, net worth of homeowners can be up to 80 times predictable payments, and areas. the freedom to 2 greater thanmonthly that of renters in some make modifications. But one of the biggest benefits itSo offers the opportunity build wealth over time. howisdoes purchasing atohome help you build Researchers at the Urban Institute found that wealth? And what steps should you take to maxihomeownership financially beneficialFind for most mize the1 potentialisof your investment? out and studies have shown that the median families, how to harness the power of home equity for a net worth of homeowners can be up to 80 times secure financial future. greater than that of renters in some areas.2 So how does purchasing a home help you build wealth? And what steps should you take to maximize the potential of your investment? Find out how to harness the power of home equity for a secure financial future.
WHAT IS HOME EQUITY? Home equity is the difference between what your home is worth and the amount you owe on your mortgage. So, for example, if your home would currently sell for $250,000 and the remaining balance on your mortgage is $200,000, then you have $50,000EQUITY? in home equity. WHAT IS HOME
The equity in your home is considered a non-liquid asset. It’s your money; but rather than sitting in a bank account, it’s providing you with a place to live. And when you factor in the potential of appreciation, an investment in real estate will likely offer a better return than any savings account available today.
Home equity is the difference between what your home is The equity in your home is considered a non-liquid Continued on page worth and the amount you owe on your mortgage. So, for asset. It’s your money; but rather than sitting in2... a example, if your home would currently sell for $250,000 bank account, it’s providing you with a place to live.
KimHallHomes.com Continued from page 1... HOW DO I ACCESS MY HOME EQUITY IF I NEED IT?
HOW DOES HOME EQUITY BUILD WEALTH?
A mortgage payment is a type of “forced savings” for home buyers. When you make a mortgage payment each month, DOES HOME EQUITY BUILD WEALTH? a portion HOW of it goes towards interest on your loan, and the A mortgage payment is aEQUITY type of “forced savings” for home HOW DOES HOME remainingbuyers. part goes towards payingBUILD off WEALTH? your principal, or When you make aismortgage each month, A mortgage payment a type of payment “forced savings” for home loan balance. As your loan balance goes down, your home a portion of When it goesyou towards on your loan, each and the buyers. make interest a mortgage payment month, equity goes up. remaining partofgoes towards paying off on your principal, or the a portion it goes towards interest your loan, and
loanremaining balance. As your loantowards balancepaying goes down, your home or part goes off your principal,
equity goes up. of As loan balance. yourhome loan balance goesincreases, down, your or home Additionally, the value your generally equity goes up. appreciates, over time. And when you sell it, even if you’ve Additionally, the value of your home generally increases, or only paidappreciates, off Additionally, a smallover portion of of your mortgage, youincreases, to or time. And when you sell it, even if get you’ve the value your home generally keep 100% your property’s appreciated value. That’s the onlyof paid off a small portion of your mortgage, you get to appreciates, over time. And when you sell it, even if you’ve keeponly 100% of off your property’s appreciated value. That’s paid smallestate. portion of your mortgage, youthe get to wealth-building power ofa real wealth-building real estate. keep 100%power of yourofproperty’s appreciated value. That’s the wealth-building power of real estate.
WHAT CAN I DO TO GROW MY HOMEʼS EQUITY FASTER? WHAT CAN I DO TO GROW MY HOMEʼS EQUITY FASTER?
There are There twoWHAT basic ways to increase the equity inin your are two basic ways increase equity yourhome: home: CAN I DO TO to GROW MYthe HOMEʼS EQUITY FASTER?
There are two basic ways to increase the equity in your home:
1 Payyour downmortgage. your mortgage. Some homeowners do do 1 Pay down Some homeowners
this little extra to theirSome monthly payment, do 1 by Payadding your mortgage. homeowners this by adding adown littleaextra to their monthly payment, making additional payment pertheir year, or making a this one by adding a little extra to monthly payment, making one additional payment per or making a lump-sum whenpayment extrayear, money becomes makingpayment one additional per year, or making a lump-sum payment when extra becomes available. Another option is money to decrease your lump-sum payment when extra money becomes For example, you afford theyour available.amortization Another option is to ifisdecrease your available.period. Another option tocan decrease higher monthlyFor payment, consider refinancing a the amortization period. For example, if youafford canfrom afford amortization period. example, if you can the 30-year or 25-year mortgage to a 15-year mortgage. higher monthly payment, consider refinancing from higher monthly payment, consider refinancing from a a 30-year or 25-year mortgage to a 15-year mortgage. 30-year 25-year a 15-yearvalue. mortgage. 2 or Raise yourmortgage home’s to market Many
homeowners enjoy do-it-yourself projectsvalue. that add 2 Raise your home’s market Many value at a home’s relativelyenjoy lowmarket cost. Othersvalue. choose to Many invest your homeowners do-it-yourself projects that add in larger, strategic renovations. Keep mind, you value at a relatively low cost.projects Othersinchoose invest homeowners enjoy do-it-yourself that to add won’t necessarily get back every dollar you spend on you in larger, strategic renovations. Keep in mind, value at a relatively low cost. Others choose to invest upgrades, so consult get a professional before making won’t necessarily back every dollar you spend on in larger,any strategic renovations. Keep in mind, you major investments. upgrades, so consult a professional before making won’t necessarily get back every dollar you spend on any major investments. A word of neglecting routine maintenance could upgrades, socaution: consult a professional before making your (and equity), somaintenance be sure to stay A word ofhome’s caution:value neglecting routine could any decrease major investments. on top of recommended upkeep and repairs. decrease your home’s value (and equity), so be sure to stay A word of caution: routine on top of neglecting recommended upkeepmaintenance and repairs. could
2 Raise
A word of caution: neglecting maintenance could decrease your home’s value routine (and equity), so be sure to decrease your home’s value (and equity), so be sure to stay on top of recommended upkeep and repairs. stay on top of recommended upkeep and repairs.
What if you want to tap into your home’s equity while you’re still living in it? There are several ways to borrow against your HOW DOequity, I ACCESS MY HOMEon EQUITY I NEEDand IT? qualifications:3 home depending your IFneeds
WhatHOW if youDO want to tap into your home’s equityIFwhile you’re I ACCESS MY HOME EQUITY I NEED IT? still livingWhat in it?if you There aretoseveral to borrow against your still want tap into ways your home’s equity while you’re 1 equity, A Second Mortgage (orand Home Equity 3Loan) enables home depending onseveral your needs living in it? There are ways toqualifications: borrow against your 3 you to borrow a lump you are responsible home equity, depending on yoursum, needswhich and qualifications: 1 A Second Mortgage (or Homeinterest—over Equity Loan) enables for paying back—with a set period of you to borrow aMortgage lump sum,(or which youEquity are have responsible 1 time. A Second Home Loan)aenables Most second mortgages fixed interest for paying back—with interest—over a setare period of you to borrow a lump sum, which you responsible rate and provide the borrower with a predictable time.forMost second mortgages have a fixed interest paying back—with interest—over a set period of monthly payment. rate time. and Most provide the borrower with a predictable second mortgages have a fixed interest monthly rate payment. and provide the borrower with a predictable 2 With a payment. Cash-Out Refinance, you refinance your monthly 2 With a Cash-Out Refinance, you refinance your mortgage for a higher amount than you currently owe. mortgage for a higher amount than you currently owe.your 2 With a Refinance, you refinance Then youCash-Out pay offoriginal your original mortgage and keep the Thenmortgage you pay off mortgage andcurrently keep theowe. foryour a higher amount than you difference as cash. This option may be if difference as cash. be preferable ifpreferable Then you pay offThis youroption originalmay mortgage and keep the have a high interest rate on your current mortgage youyou have a high interest rate on your current mortgage difference as cash. This option may be preferable if or prefer to make justinterest one payment per month. oryou prefer to make just oneonpayment per month. have a high rate your current mortgage or prefer to make just one payment per month. 3 A Home Equity Line of Credit (HELOC) is a revolving Equity Line of Credit (HELOC) is a revolving 3lineAofHome credit, Equity similar Line to a of credit card. It allows to Credit (HELOC) is you a revolving 3 A Home line of credit, similar to a credit card. It allows drawline outofmoney you need The card. interest rate onyou a to you to credit,as similar to a it. credit It allows draw out money as you need it. The interest on a HELOC variable, so you yourneed payment month drawisout money as it. The each interest rate on rate a could change depending on how much you borrow HELOC is variable, so your payment each month HELOC is variable, so your payment each month andcould how interest fluctuate. could changerates depending on how muchmuch you borrow change depending on how you borrow and how interest rates fluctuate. and how interest rates fluctuate. 4 A Reverse Mortgage enables qualifying seniors to borrow against the equity in their home to supplement 4 A Reverse Mortgage enables qualifying seniors to 4their Aborrow Reverse Mortgage retirement income. In most cases, thequalifying loan (plus seniors to against the equity inenables their home to supplement interest) doesn’t toIn be until thesupplement borrow againstneed the equity inrepaid their home to their retirement income. most cases, the loan (plus 4 homeowners sell, move, or are deceased. interest) doesn’t need to be repaid until their retirement income. In most cases, thethe loan (plus 4 homeowners sell, move, or areto deceased. interest) doesn’t need be repaid until the
It’s important to note that borrowing your home’s4 homeowners sell, move, against or are deceased. equity alwaystothe best option, and itagainst carriesyour the risk It’sisn’t important note that borrowing home’s of foreclosure youtodefault. Ask us for a itreferral tothe ayour equity isn’t ifalways the best option, and carries risk home’s It’s important note that borrowing against lender or financial adviser find out ifoption, a us home equity foreclosure you to default. Ask foragainst a referral to ahome’s It’sof important toif note that borrowing your equity isn’t always the best and it loan carries the risk is right for you. lender or financial to findoption, outAsk if a home loanthe to equity isn’t always the best andfor itequity carries riska of foreclosure ifadviser you default. me a referral is right for you.
or financial findus outforif aa referral home equity of lender foreclosure if you adviser default.toAsk to a loan or is1. Urban right for you. Institute 2. Census Bureau 3. Investopedia lender financial adviser to find out if 4.aBankrate home equity loan Sources: for you. 1. Urban Institute 2. Census Bureau 3. Investopedia 4. Bankrate is right
Sources:
The above references an opinion and is for informational purposes only. It is not intended to be financial advice. Consult a financial professional for advice regarding your individual needs.
The above references an opinion and is for informational purposes only. It is not intended to be financial advice. Consult a financial professional for advice regarding your individual needs.
WE’RE HERE TO HELP YOU WE’RE HERE TO HELP YOU
Sources:
1. Urban Institute
If you’re ready to begin building equity withIfayou’re new home grow theequity readypurchase, to begin building value of your current or access with a new homehome, purchase, grow the yourvalue equityofthrough a home saleor oraccess your current home, loan—we can help. Contact us today to your equity through a home sale or schedule a complimentary consultation! loan—we can help. Contact us today to schedule a complimentary consultation! If you’re ready to begin building equity
2. Census Bureau
3. Investopedia
4. Bankrate
The above references an opinion and is for informational purposes only. It is not intended to be financial advice. Consult a financial professional for advice regarding your individual needs.
WE’RE HERE TO HELP YOU
with a new home purchase, grow the value of your current home, or access your equity through a home sale or loan—we can help. Contact us today to schedule a complimentary consultation!
2
QUARTERLY UPDATE I SPRING 2021
January 1st - March 31st • 1st Quarter
2021 Market Data Report
1st Quarter January 1st - March 31st
Sales of Single Family Homes in Palos Verdes Peninsula AREA
UNITS SOLD 2021 SQ FT 2021 AVG 2021 2020 RANGE SQ FT
2021 PRICE RANGE
2021 AVG PRICE
2020AVG 2021 AVG 2020AVG AVG $/SF PRICE $/ASF $/ASF %CHG
Lunada Bay/Margate
9
10
2029
4725
3288
$1,550,000 $3,100,000
$2,175,656
$2,799,400
$687
Monte Malaga
14
4
1864
9484
3477
$1,500,000 $7,510,000
$2,741,661
$2,322,250
$800
$652
22.8%
$3,604,444
$1,654,000
$970
$660
46.9%
$779
-11.8%
Malaga Cove
9
1
1797
8869
3730
$1,900,000 $9,200,000
Valmonte
13
8
1444
3800
2218
$1,400,000 $3,425,000
$1,983,500
$1,518,750
$911
$718
26.8%
PV Drive North
15
13
1856
5634
3381
$1,315,000
$3,425,000
$2,313,883
$2,233,231
$688
$706
-2.6%
Rolling Hills
12
7
2304 13000
5343
$2,100,000 $11,100,000
$4,656,096
$3,162,127
$933
$707
31.9%
PV Drive East
15
11
1132
5191
2851
$1,040,000 $2,400,000
$1,608,333
$1,399,036
$611
$462
32.3%
3300
2383
$1,249,000 $2,334,000
$1,699,607
$1,452,000
$723
$586
23.3%
$2,950,000
$1,956,857
$4,845,433
$676
$796
-15.0%
Mira Catalina
7
2
1746
PV Drive South
7
3
1658
4645
3077
$1,325,000
West Palos Verdes
4
3
1864
2749
2248
$1,300,000 $3,400,000
$2,046,250
$1,638,667
$927
$682
35.8%
Country Club
4
8
3051
5705
4130
$1,890,000 $3,000,000
$2,544,250
$1,868,188
$636
$559
13.7%
La Cresta
10
8
2677
7848
4156
$1,451,000
$4,250,000
$2,518,463
$2,089,375
$613
$594
3.1%
Los Verdes
14
11
1460
2988
2083
$1,050,000 $2,070,000
$1,502,929
$1,422,227
$736
$647
13.7%
Crest
7
5
2052
3954
2766
$1,403,025
$1,556,789
$1,455,000
$585
$561
4.4%
Peninsula Center
5
6
1896
3337
2363
$1,450,000 $2,590,000
$1,771,000
$1,293,833
$739
$578
27.9%
Silver Spur
17
8
1292
2579
1830
$1,000,000 $1,698,000
$1,320,882
$1,282,813
$743
$697
6.5%
Eastview RPV
10
16
780
2560
1679
$800,000
$1,335,000
$1,063,656
$947,390
$671
$552
21.5%
Totals / Ranges / Avg
172
124
13,000
2,976
$800,000 $11,100,000
$745
$634
% CHANGE 2020 vs 2021
780
$1,739,500
$2,173,971
38.7%
$1,836,801
18.4%
Median Sales Price
$1,772,375
$1,510,500
17.3%
% CHANGE 2020 vs 2021
3.9% $727
$611
2.7%
Note: This representation is based in whole or in part on data supplied by the Multiple Listing Service. Neither the Board nor its MLS guarantee or is in any way responsible for its accuracy. Data maintained by the Board or its MLS may not reflect all real estate activities in the market. If your home is currently listed by another broker this is not intended as a solicitation. This information is solely advisory, and should not be substituted for medical, legal, financial or tax advice. Any and all decisions and actions must be done through the advice and counsel of a qualified physician, attorney, financial advisor, and/or CPA. We cannot be held responsible for actions you may take without proper medical, financial, legal or tax advice.
Can’t find your neighborhood’s stats? Check out my website at KimHallHomes.com for stats from the entire South Bay.
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What people are saying about Kim...
We cannot say thank you enough for all of your help with buying our first home! You helped make our dreams a reality and we are so grateful. Your knowledge, advice, encouragement and patience were truly a blessing to us. - Jordan & Erin M.
QUARTERLY UPDATE I SPRING 2021
KIM H REALTOR® RE/MAX Estate
310.721.7526 KimHallHom KimHallHom #01864819
450 Silver Spur Road | Rolling Hills 3 Contactless forms of payment hav months due to the impact of COVID
KIM HALL REALTOR® RE/MAX Estate Properties
310.721.7526 KimHallHomes@gmail.com KimHallHomes.com #01864819
450 Silver Spur Road | Rolling Hills Estates, CA 90274 Contactless forms of payment have become more common over the past several months due to the impact of COVID-19. If you haven’t used them yet, you’ll find that to bereally moreare open, estate market too has taken on new I’m sending you a they safethe andreal surprisingly easy to use. In this newsletter, quick introduction to how it all energy. The real estate market is works. HOT, HOT, HOT; locally, throughout As vaccines become more readily available and our world begins
California and throughout thesales country! People And, as always, I’ve included statistics fromare the looking Second at Quarter of 2020. property ownership as be a way create wealth. newsletter An unusual quarter to sure to with stay at home This orders and partial re-openings.
Residential Realequity Estateand is alive well. It is a great time toand sell because of low highlights home howand it can be accumulated faster
inventory levels and it’s a great time to buy because of historically low interest rates. If you’re thinking of making a move, don’t let COVID stop you! There are a new property purchase, grow theto value ofeveryone your current home, guidelines and protocols in place keep safe. Giveorme a call to learn more. your equity through a home sale or loan - I’m here to help access be used when needed. If you’re ready to begin building equity with
you. Know someone of selling in 2021? I’d love referral Summer may look athinking little different this year but let’s the make the most of it! Walk a and take great care look forward to at hearing new will neighborhood, planofa them. picnic, Ior enjoy a night one offrom the Drive-In Theaters
mentioned you soon! below. Be Well!
Kim Kim
Local South Bay Events TERRANEA SUMMER CONCERT SERIES
Visiting somewhere fun this summer? If your travel plans are taking you up in the air, make the trip more enjoyable 6:00 – 10:00 PM every Friday & by following these travel tips meant Saturday night throughout the to make your air travel less stressful. summer, with additional shows on Staying local? Be sure to check out Memorial Day, 4th of July and Labor one of the free summer concerts right Day weekends. here in the South Bay. Speaking of the Terranea Resort South Bay, 2nd Quarter 2019 Market 100 Terranea Way Data is available for all South Bay Rancho Palos Verdes, CA 90275 communities on my website and for the Palos Verdes Peninsula on page 3 BUTTERFLY PAVILION of this newsletter. Don’t see the level of August 2 | Retrofit Housewives Sat, September 21 | Kevin Thurs, July 4 | MUSIC ON THE detail you’re looking for? I’m happy to Watch butterfliesFri, take flight around you Sat, August 3 | Wise Sat, August 31 | Feed the Kitty Sousa MEADOWS create a personalized analysis of your in this seasonal exhibition. Fri, August 9 | Wise Sun, September 1 | Retrofit Fri, September 27 | The Hula Fri, July 5 | Wise home compared to your neighborhood Sat, August 10 | Headshine Mon, September 2 | Labor Day Girls - just give me a call. And as always, if Sat, July 6 | Feed the Kitty you’re thinking buying or28 selling, Fri, August 16 | Flogging Sat,of September | The I’m MARCH 11 - SEPTEMBER 6, 2021 Fri, September 6 | Wise Fri, July 12 | Everyday here the to help.Backtracks Enjoy your summer! Seagulls Sat, September 7 | Feed
SUMMER CONCERT SERIES
2019
$6 per person Sat, August 17 | Kevin Sousa Members Fri, August 23 | The Fri, July 19 | Backtracks Free for Housewives
Kitty
Sat, October 5 | 80’s Night
Fri, September 13 | 80’s Night
Sat, October 12 | Feed the
Backtracks
Sat, September 14 | Wise
Kitty
Sat, August 24 | 80’s Night
Fri, September 20 | Running
Sat, October 19 | Wise
Fri, August 30 | Everyday
Hot – Rolling Stones Tribute
Sat, October 26 | Kevin Sousa
Sat, July 13 | Wise
Sat, July 20 | Kevin Sousa Fri, July 26 | Retrofit Sat, July 27 | 80’s Night
https://nhm.org/
QUARTERLY UPDATE I SUMMER QUARTERLY UPDATE I SPRING 2021 2020