Investing in home.

/

According to recent reports, homeownership remains one of the best ways to protect your finances against inflation, helping you build wealth over time. In 2019, homeowners had a net worth 40 times greater than renters, and this gap is expected to widen even more by the end of 2024.

Unfortunately, as rising home prices and interest rates make affordability a challenge, people are waiting longer to make this investment, with the median age of first-time homebuyers increasing to 38. If you’re ready to take the leap, we’re ready to help!

Source: Median Net Worth from Federal Reserve Survey of Consumer Finance, NAR

The Cool Comforts of Home Insulation

/

As temperatures soar during sizzling California summers — and a recent autumn heatwave — your home's insulation becomes a crucial component in maintaining comfort and efficiency. In the face of extreme climates, insulation is the unsung hero, defending your right to relaxation.

CHIC (Pearl)

Your home should be an oasis — a luxurious sanctuary where you can escape relentless sun, frigid cold snaps, and other extreme weather. Proper insulation acts like a practical yet fashionable sun hat for your home, keeping scorching rays at bay during the dog days and trapping heat during frozen winters. Whether sipping iced tea in your designer kitchen or lounging in your elegantly decorated living room, effective insulation ensures that your indoor vibe remains refreshingly chill. And not only does insulation make for a more comfortable living space, it also helps reduce the need for air conditioning, which means lower energy bills and a smaller carbon footprint. It's the ultimate blend of style and sustainability, proving that sometimes you can have your cake and eat it too!

GEEK (Kevin)

The science of insulation is what makes it so effective. Insulation acts as a thermal barrier, preventing heat and cold from penetrating your home's interior while trapping the hot or cool air generated by your HVAC system. This in turn enhances its efficiency, creating climate consistency throughout the house, and letting Chic sip iced tea in the lap of luxury. And by minimizing the need for continuous air conditioning, proper insulation can create significant savings where we’re all feeling the heat these days: our utility bills. Depending on where you live, you may want to consider reflective insulation, which features a barrier that actually reflects heat away from your home. More than a sun hat, it’s like the shield around the Death Star in Return of the Jedi, repelling the rebel fleet.

A Spectacular Investment

/

If you’re young or living on a tight budget, renting a home makes a lot of sense. But there’s no substitute for the power of homeownership to build wealth and financial security. So how do you get the most out of your investment?

CHIC (Pearl)

The benefits of ownership vastly outweigh the upsides of renting, especially over the long term. According to the S&P CoreLogic Case-Shiller Index, home prices in the San Francisco Metro Area rose a whopping 375% from 1990 to 2021, and every mortgage payment builds your equity and allows you to leverage more of that value. Speaking of payments, instead of basically throwing money away on rents that increase with inflation, a fixed rate mortgage locks in your monthly budget for the duration of the loan. You can also deduct interest payments on your tax return and take advantage of other tax incentives. And if you don’t need the home, you can always rent it out and get an even greater return!

GEEK (Kevin)

No matter if you’re buying to occupy or rent, the home you purchase should fit your life goals — and your monthly budget. Buying your dream home might not make sense if you’re starting a family or embarking on a new career. Quick turnarounds can also get you into trouble responding to market fluctuations instead of betting on trends. And it’s incredibly tempting to borrow against your growing equity to pay for non-essentials like a new car when you should be accruing wealth and setting yourself up for the future. A better option would be to consider refinancing as mortgage rates decline. You could also think about maintaining a “rainy day” reserve fund for those unexpected curve balls life likes to throw.

Buying a home is a deeply personal decision and possibly the most significant financial transaction you will ever make. We’re here to help, but in the end, it’s your future — and your choice!

Scared of selling?

/

Spooked about making a move this season? We’re here to offer you peace of mind and confidence in listing your home. Carve out some time today!

CHIC (Pearl)

If you’re looking to shine a spotlight on your home, now is the time! Inventory remains low, with Santa Clara County experiencing a 30% decline in September year over year (see more in Number Talk), and San Mateo County dipping 17%. According to the National Association of Realtors, this tight market shows no signs of expanding anytime soon, which means sellers should expect multiple offers, bidding wars, and quick sales. If you need further proof, local homes are spending an average of just 20 days on the market.

GEEK (Kevin)

At the same time, high interest rates and limited inventory aren’t deterring first-time home buyers, who continue to enter the market and are accounting for 29% of all sales, according to the same NAR report. Meanwhile, all-cash offers account for 27% of sales, allowing for a diverse range of purchasing options. In other words, you should have no problem finding a qualified buyer. And with more than 3 offers on average, you’ll probably have a tough decision to make. But that’s what I call a good problem to have!