mike@mikenorton.com

MIKE NORTONMIKE NORTON

Your Local Realtor

5625775021
mike@mikenorton.com
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Can the U.S. Housing Market Withstand the Rate Hike?

11415768915_83a98098aaLast Wednesday The Federal Reserve increased interest rates by a quarter of a percent. This is a big move as interest rates have not been increased in seven years, before the housing market crash. Although rates were increased by only 0.25 percent, home buyers across the nation are concerned. Understandably so, mortgage rates have been at an all time historical low, so what does this mean for buyers? Can the housing market withstand the increase?

The economy has seen growth in the last few years thanks to low interest rates, steady job gains, and improving household finances. The first half of 2015 was strong, it was a matter of time before The Fed increased interest rates. The Fed has stressed that they are planning to increase rates gradually and in small increments. Over the next year, they plan to increase rates by 1 percent, which will boost the economy by 0.15 percentage points and 30,000 monthly job gains.

As for the housing market, the last few years we have seen a recovery and 2015 being the best year so far. The recovery has been partly due to low mortgage rates, but mainly from job security and economic growth. 30-year mortgages are priced off 10-year Treasury note yields, which do rise as short-term rates climb, but not as steeply. Economist don’t believe the quarter of a percent hike will immediately impact mortgages. The market has been anticipating the hike for months and have priced with the move.

Economist also believe the hike won’t have much of an impact on the housing market over the next year. If rates do go up one percent, mortgage rates can be expected to rise to 4.1 percent from 3.9. A $225,000 mortgage monthly payment would raise $26 to $1,454, this is not enough to deter buyers. Adjustable-rate mortgages, which are usually modified annually, could see an increase about twice as rapidly, by about a half a percent. But, economists are saying if steady jobs and incomes increase, the rate impacts should be modest.

Although we have not seen an increase in interest rates in nearly 10 years, buyers should not be concerned. The impact this will have on the housing market will be modest and with a strong economy, the housing market will strive this coming year. 

Posted in: Blog

5 Questions You Ask Your Potential Agent

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When it comes time to sell a home, many people choose a realtor within an hour and don’t spend the time researching what they really need and want. If you were going to buy a car you wouldn’t just choose the first car you see on the lot. You spend weeks or months researching which car suits you best. So when deciding, here are 5 questions you should ask your potential agent.

1) How many sellers are you currently representing?

A realtor with many sellers is a great sign that they are a good realtor and trusted, but too many sellers can result in the division of their attention.There is no set number that is too many, it really depends on the individual realtor.

2) How many homes have you sold in my target neighborhood?

This is an important question because you want someone who is experienced in your area. When you ask a good realtor should have a comparative market analysis or a list of homes recently sold or for sale on hand. Luckily, many agents focus their work on specific cities or neighborhoods, making them the best candidates for selling your home.

3) What price do you think my house will sell for in the current market?

This question will give you an idea of your agent’s knowledge and thought process. An experienced realtor will take data from the current market, data from a pool of comparable homes, and your home’s condition and amenities. Don’t be too concerned if the number they give you is lower than expected. Many times sellers believe their home to be worth more than it actually is. But if you really feel the price given is way too low, don’t be afraid to cross check with other home valuation sources.

3) Who else will be working with me?

Agents usually work with a team of people, but most of the time spent should be with them personally. It is good though to find out who the others are on the team.

4) What are your marketing and advertising plans for my house?

This is important in understanding the expertise of your agent. Marketing and advertising methods should go beyond just listing your home on multiple listing services. There should be a mix of online and offline methods. And don’t be afraid to ask for previous examples of their sales material from previous sellers.

We specialize in helping our clients find or sell historic home in beautiful Long Beach. For more information visit us 244 Redondo Ave, Long Beach, CA 90803 or call at  1(562)577-5021.

Posted in: Blog

The History Of Long Beach’s Historical District

Long Beach has a long history that can still be seen and witnessed today. The city boasts  many historical districts that are still standing and can occupied by current residents. Many don’t know the history behind these beautiful landmarks that make up our city but it began to take shape into its modern layout in the late 1800s by developer John Bixby.

In the 1880’s, John Bixby first bought the land that is known as Alamitos Beach from farmers following a bad drought. Bixby was trying to capitalize on the Southern California’s land boom when he suddenly died. The land was divided up by three different parties. Before Bixby died, he had originally given the streets Spanish names. The land was annexed to the city of Long Beach in 1905 and the street names were changed. Descanso became Orange Avenue, Independencia became Cherry Avenue, Kalamazoo became Kennebec, Modjeska is now Molino and Naranjo was renamed Temple.

A streetcar line was established on Ocean Blvd to transport people to the newly developed communities on Naples Island. Bluff Park was donated to the city in 1919 by the Bixby family. Soon after, the boom of the movie era began and Long Beach became a central area as Balboa studios opened at 6th and Alamitos Ave. Many silent film stars began to move to Long Beach because of its temperate climate and luxury homes. Clark Gable and Carole Lombard first began their love affair at the Weathering Heights mansion on Ocean Blvd. Marie Osborne Yeats, who was the first child movie star, pre-dating Shirley Temple by 20 years, lived and shot movies around this area.

Today, the historical districts are the more desired and exclusive neighborhoods in Long Beach. The area has no businesses, churches, or public buildings. Many of the homes there were built between 1903-1949 and have a variety of architectural styles from Victorian to Old English to Spanish Colonial Revival. In 1990, guidelines were established to ensure the preservation of the historical district and keep it from becoming over-developed.

We specialize in helping our clients find or sell historic homes in beautiful Long Beach. If you are interested in finding the right home for you contact us at (1562)577-5021 or check out our websitemike@mikenorton.com.

Posted in: Blog

Introducing Mikle Norton’s New Website!

mike-250-243x300Mikle Norton is Long Beach’s hardest working real estate agent with a wealth of knowledge and experience in the area. Mikle’s new website is a one-stop real estate page for prospective buyers and sellers in Long Beach. The site includes information on the many historic neighborhoods and helpful tools for buyers and sellers, including a home valuation tool and mortgage calculator.

The home valuation tool is easy to use and anyone can do it. Input the information asked about your home and Mike can provide you with the true value of your home. Fill out the form by providing simple information like square footage, number of bedrooms and bathrooms, property type, and location to receive an accurate home value estimate. Having called Long Beach home for over 20 years, Mike has a wide understanding of the fair market value of a home.

Use the website to also learn the advantages and disadvantages of renting vs buying a home or new home listings in your area. You can also figure out your estimated mortgage rate by using the mortgage calculator. With 20 years of experience as a past mortgage broker, Mike is able to help buyers pick the right lenders for financing.

Buying and selling a home can be a stressful experience, but with Mike’s professionalism and expertise, this task is made easier. He is constantly receiving training to keep him up-to-date and relevant in the real estate field. Whether you’re looking to buy a home, sell your house, or need consulting on home selling tactics, Mike can help. His top quality service, communication, and passion for real estate is why Google calls Mike the hardest working realtor in town. The website was designed with the user in mind by keeping vital information in a clean and organized manner that is easy to find. Check out the rest of the website and see what Mike can do for you today.

Posted in: Blog

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Mike Norton

mike@mikenorton.com
5625775021

KOHR GROUP REALTY

5222 E Los Altos Plaza
Long Beach, Ca 90815

Broker Lic#00975141

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