State Farm and Allstate have announced they will no longer sell new home insurance policies in California because of wildfire risks and an increase in construction costs. Here are some facts:

1. State Farm and Allstate are not leaving the California Insurance Market:  State Farm and Allstate will continue to service and renew policies of existing clients in the state and will continue to offer new auto insurance policies. However, they will not be issuing any new property insurance policies for the time being in California.
   
   
2. What are the implications of the decision for prospective homebuyers?  In certain high-risk areas of the state, there are very few insurance companies willing to write new policies. In some higher risk areas, State Farm was the last private insurance company writing policies. In those areas, unless the Insurance Commissioner is successful in its effort to get more private insurers to write policies in such areas, the generally more-costly California FAIR plan may end up being the only property insurance available.
   
   
3. Why did State Farm and Allstate stop issuing new policies?  State Farm stated that it made the decision “due to historic increases in construction costs outpacing inflation, rapidly growing catastrophe exposure, and a challenging reinsurance market.” Allstate said the company "paused" its offerings "so they can continue to protect current customers." State Farm and Allstate's decision is not necessarily an indication of what other companies will do.
   
   
4. Will more companies follow State Farm and Allstate's move?  There are still a wide range of companies writing policies in California. However, those willing to write new policies in higher risk areas in particular are declining and as stated above, with the departure of State Farm and Allstate, those in more high-risk areas may have no option than the FAIR plan. 
   
   
5. What are the main problems for the insurance market in California?  The California market is heavily regulated and has various strict requirements for rate increases, which were put into place by Proposition 103 in 1988. However, there are two areas where possible changes could result in a better climate for insurance without requiring major changes to consumer-friendly rate increase requirements. Those include allowing insurance companies to have rates that better reflect their reinsurance costs and allowing insurance companies to utilize forward looking risk models. Current law only allows companies to look back when setting rates. However, given the issues with climate change, many insurance companies argue that looking backward does not allow companies to adequately capture risk.
   
   
6. Where can you find more information if you are looking for homeowners insurance?  The California Dept. of Insurance provides several information guides, tips and tools to help you understand home/residential insurance so that you can make the best decision for your situation. You can also call the California Dept. of Insurance Consumer Hotline for assistance.

(information via CAR.org)

Some Highlights

• While home prices vary by local area, they’ve already hit their low point nationally, and now they’re starting to rise again.
• Last July, prices started to decline, but around February, they began climbing back up.
• If you put your plans to move on hold waiting to see what would happen with home prices, let’s connect to discuss if now’s the right time to jump back in.

If you’re thinking about selling your house, you should know the number of homes for sale right now is low. That’s because, this season, there are fewer sellers listing their houses for sale than the norm.

Looking back at every April since 2017, the only year when fewer sellers listed their homes was in April 2020, when the pandemic hit and stalled the housing market (shown in red in the graph below). In more typical years, roughly 500,000 sellers add their homes to the market in April. This year, we saw fewer than 400,000 sellers entering the market in April (see graph below):

While there are a number of factors contributing to this trend, one thing keeping inventory low right now is that some homeowners are reluctant to move when the mortgage rate they have on their current house is lower than the one they could get today on their next house. It’s called rate lock.

As a recent survey from Realtor.com explains, 56% of people who are planning to sell in the next 12 months say they’re waiting for rates to come down.

While this wait-and-see approach is right for some sellers, it also creates an opening for more eager sellers to jump in now.

If your current house truly doesn’t fit your needs anymore and you’re ready to move, don’t miss this chance to stand out. When fewer sellers are putting their homes up for sale, buyers will have fewer options, so you set yourself up to get the most eyes possible on your house. That’s why your house could see multiple offers as buyers compete over the limited supply of homes for sale – especially if you price it right.

As Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), says:

“Inventory levels are still at historic lows . . . Consequently, multiple offers are returning on a good number of properties."

Bottom Line

If you’re ready to sell now, beat the competition before it comes onto the market. If you do, your house should stand out and could get multiple offers. Let's connect to get you market ready.

There have been a lot of shifts in the housing market recently. Mortgage rates rose dramatically last year, impacting many people’s ability to buy a home. And after several years of rapid price appreciation, home prices finally peaked last summer. These changes led to a rise in headlines saying prices would end up crashing.

Even though we’re no longer seeing the buyer frenzy that drove home values up during the pandemic, prices have been relatively flat at the national level. Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), doesn’t expect that to change:

“[H]ome prices will be steady in most parts of the country with a minor change in the national median home price.”

You might think sellers would have to lower prices to attract buyers in today’s market, and that’s part of why some may have been waiting for prices to come crashing down. But there’s another factor at play – low inventory. And according to Yun, that’s limiting just how low prices will go:

“We simply don’t have enough inventory. Will some markets see a price decline? Yes. [But] with the supply not being there, the repeat of a 30 percent price decline is highly, highly unlikely.”

As you can see in the graph below, we’ve been at or near record-low inventory levels for a few years now.

That lack of available homes on the market is putting upward pressure on prices. Bankrate puts it like this:

“This ongoing lack of inventory explains why many buyers still have little choice but to bid up prices. And it also indicates that the supply-and-demand equation simply won’t allow a price crash in the near future.”

If more homes don’t come to the market, a lack of supply will keep prices from crashing, and, according to industry expert Rick Sharga, inventory isn’t likely to rise significantly this year:

“I believe that we’re likely to see low inventory continue to vex the housing market throughout 2023.”

Sellers are under no pressure to move since they have plenty of equity right now. That equity acts as a cushion for homeowners, lowering the chances of distressed sales like foreclosures and short sales. And with many homeowners locked into low mortgage rates, that equity cushion isn’t going anywhere soon.

With so few homes available for sale today, it’s important to work with a trusted real estate agent who understands your local area and can navigate the current market volatility.

Bottom Line

A lot of people expected prices would crash this year thanks to low buyer demand, but that isn’t happening. Why? There aren’t enough homes for sale. If you’re thinking about moving this spring, let’s connect.

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Hello there, neighbor (or future neighbor)!

My name is Keely, and I'm a real estate agent specializing in the beautiful neighborhoods of Northeast Los Angeles. I've been living and working in this community forever - I was born and raised right here in Eagle Rock - and I couldn't be more excited to share my love and expertise for this area with you.

Let me tell you a little bit about myself. I'm an old-home lover, give me character and original details all day long! I live with my husband, son, and rescue pup in a 1959 Better Homes and Garden kit house that still has original atomic mushroom tile in the kitchen. When I’m not obsessing about houses, I’m planning my next adventure around the world or getting concert tickets. I am a second-generation Realtor and got my real estate license in 2007 (yep, right as the market tanked!) and I'm passionate about helping people find their dream home in this amazing part of Los Angeles. Whether you're a first-time homebuyer or a seasoned homeowner, I'm here to guide you through the process with humor, diligence, and expertise.

One of the things I love most about Northeast LA is its diverse and vibrant community. From the quirky shops and eateries on Colorado and York Boulevards to the stunning natural beauty of Debs Park, there's something for everyone here. And as a real estate agent who's deeply invested in this community, I'm here to help you not only find your perfect home but also discover everything that makes Northeast LA such a special place to live.

Stay tuned for more blog posts from me, where I'll share insider tips, local news, and fun stories about life in Northeast LA. Thanks for reading, and I hope to see you soon!

We are living in a strange new world, and it is still not business as usual anywhere regardless of what people try to tell you. In the real estate part of it, there are a lot of rules and prohibitions regarding seeing houses listed on the market, and people are finding many of the rules very confusing. Plus, just when you think you have it all figured out, the rules change! Here are the high points first, then at the end of this article are some of the actual forms that detail everything. Every state is different, and within states, some counties are different and even some cities are different.  So this is about California, Los Angeles County. Keep in mind, the most restrictive rule is the one that dominates.  Did you know that in New York City they don’t allow any showings at all?!?  The old saying that real estate is a very local business is more true than ever. Remember, we are trying to protect ourselves and everyone else from being exposed to a silent, invisible killer. 

The days of dropping by a new listing’s open house are gone. You have to make an appointment, you have to sign a form that states you don’t have symptoms of COVID-19, and that re-states all the rules regarding a showing. And you’re supposed to do it electronically before you access the property. The property must be sterilized before and after you view it, you generally have to provide proof that you can afford the property (not a law but most listing agents require it), you have to give your contact information, you have to wear a mask and wash or sterilize your hands as you enter the property. 

Then there are more rules about how many people can be in the property at one time, who they can be, and that the occupants of the house must be out during the showings. And there can be no paper changing hands—no flyers, no signed forms, no information regarding anything—everything is to be electronic. And tomorrow, this could all change, depending on the pandemic. 

You’ll notice there are lots of  “musts.” Each one is a limitation that the listing agent is primarily responsible for. You might think there is less that the listing agent does, but the responsibility, paperwork, and liability have increased exponentially. The listing agent generally has to do more negotiating to protect their sellers’ bottom line than they have done in the past. There are many more escrows cancelling than before—both from buyers losing their jobs or having to take a cut in pay, or fear of the future.

And yet properties do sell right now. Buyers go shopping online first, then they generally commit to their own buyer’s agent, lender, get pre-approved, and have their agent arrange for showings. And (here in Northeast Los Angeles and surrounding areas) there are multiple offers on well-priced properties. This is actually a good time to buy or sell, because the marketplace isn’t cluttered with unserious people.

Here are the official rules for showings:

Posted Rules for Entry
Best Practices and Guidelines

(These are the rules and regulations as of June 28, 2020; they can change at any time).

As news and information about relief assistance swirls around in the midst of this crisis, there are lots of questions about what to do with your mortgage payments. To some, it can be interpreted that if you just don't pay your mortgage payment right now all will be forgiven. This is not true, and can have some serious affects on your financial health, and truly the health of the economy as a whole. 

Here is information from a lender friend of ours, Scott Groves with Movement Mortgage, that explains forbearance and how it works:

"If you, or your clients, are in dire-straights and having to make the toughest of financial decisions - like, what bills do I pay or how do I buy food - then I understand that you must do EVERYTHING you can to improve your cash-flow situation.

That being said, applying for a FORBEARANCE on your mortgage payment should be an ABSOLUTE LAST RESORT when it comes to your finances.

Things are changing every day in these wild times we live in!

Per the California Associaton of Realtors - "On March 28, the U.S. Department of Homeland Security Cybersecurity and Infrastructure Security Agency (CISA) updated its list of essential services during the coronavirus (COVID-19) crisis and expressly included residential real estate. Since Governor Newsom’s March 4, 2020 order incorporates this list, the order now includes residential and commercial real estate, including settlement services, as essential services in California. However, if a city or county has an order with a more restrictive standard regarding what qualifies as an essential service, or more restrictions on activities, those guidelines will still govern the activities of a licensee.

You’re getting ready to put your home up for sale soon which has you making endless to-do lists of things that need to get done so that your house makes the biggest impact when it goes on the market. You've read article after article about creating curb appeal, decluttering and removing personal belongings, staging each room so it looks like a model home. There’s the deep cleaning, minor repairs to take care of, and giving your walls a fresh coat of paint. It can all start to seem extremely overwhelming and expensive!

We've seen this happen with our clients over and over and so we decided to find a way to make the process much easier (and less stressful!). 

Enter Compass Concierge. With this only-at-Compass offering, we'll front the cost of services to improve your home for a quicker, more profitable return. Exclusive to our clients, our Concierge program will prepare your home for the market. From deep-cleaning to cosmetic improvements, we'll work with you to assess every opportunity to elevate your home's value. 

And with our in-house construction company, Eagle Rock Restoration, all you have to do is decide which improvements you want to include in your preparation plan. We'll manage the project (big or small) from start to finish!

Through this unique philanthropy program, we're giving back to the community, one home at a time. 

As your agent, our primary goal is to find new ways to sell your home as fast as possible for the highest price, so we couldn't be more excited to share a new initiative with you today: Compass Coming Soon. A unique pre-marketing opportunity, Coming Soon will allow us to reach potential buyers before officially listing your home. Why is this so important? For a few key reasons:

"Pillarhenge", as it is unaffectionately known by Eagle Rockers, is the hot topic at the next Neighborhood Council meeting.

On the agenda for tonight's Eagle Rock Neighborhood Council meeting is a presentation from the developers of 1332 Colorado, known locally as "Pillarhenge," the empty concrete-columned lot at the eastern end of Eagle Rock (by the onramp to the 134 freeway, Found Coffee, and Craft Beer Cellar).

The developers will talk about the project they'd like to build, which is a 26-unit mixed use residential building, with commercial spaces on the ground floor, two affordable very-low-income units, and green space and parking for residents.

The developers are asking the city for permission to increase the building floor area allowed for the narrow lot, so we'll hear all about their rationale for that, as well as the details of the density bonus that comes along with the affordable units.

If you can't make the meeting, the ERNC has put the full application online for you to read - you can check it out at this link.

The meeting is tonight at 7pm at Eagle Rock City Hall (2035 Colorado Blvd).