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Will Brexit Impact the U.S. Housing Market?

Treasury-Yield-2016-07

On June 23, 2016, British voters decided that it was about time for the United Kingdom (U.K.) to break loose from the European Union (E.U.), as they voted 52 percent to 48 percent in favor of leaving the E.U.  Global financial markets reacted violently to the “Brexit” decision, with the Dow Jones, S&P, and Nasdaq indices all tumbled 3.4 percent or more on the day the voting results surfaced.

Pound to dollar exchange rate also dropped sharply after the breaking news.  In just a few hours overnight, as the “Leave” campaign gained momentum, the British pound to U.S. dollar rate hit 1.33, reaching the lowest level not seen since 1985.  For US travelers going to the U.K. for vacation, that’s good news.  The drop in the value of the currency means more bucks for your pounds when you are on vacation. But this is bad news for exports from the U.S. to the U.K., as Britons now need to pay more for the same American products, which could mean fewer goods being sold to the U.K. in the near future.

This direct effect on U.S. exports, however, appears to be rather limited, as the U.K. accounted for less than 4 percent of American exports of goods in 2015, which is equivalent to only 0.4 percent of U.S. GDP.  The direct economic impact on the U.S. economy would be miniscule, even if the U.K. economy slipped into recession.

The more significant damages, however, could be coming from indirect effects.  The panic selling in financial markets around the globe was due primarily to uncertainty about the economic conditions of the U.K., the E.U., and the U.S.  The health of the U.K. will take a hit in the upcoming quarters, as existing trade agreements with the E.U. and other countries started being questioned, while business investments to the country will be put on hold due to lack of clarity and confidence in the economic and political environment.

The housing market could benefit from the Brexit outcome though.  Treasury prices soared as investors flocked to the perceived safe haven of government bonds amid a global stock selloff after the U.K. voted in favor of leaving the E.U.  The yield on 10-year Treasury note ended down 16.4 basis points to 1.58 percent and the 30-year yield fell 13.1 basis points to 2.43 percent.  This is good news for homebuyers as mortgage rates follow the same movement of the long-term Treasury yield.  Rates were expected to remain near 4 percent for the rest of the year before the Brexit vote, but the latest development could potentially push rates further down to levels last seen in 2012.  Brexit also pretty much slammed the door shut for any Fed rate hike this year, as tight financial conditions resulting from the meltdown in equity markets could decelerate economic growth in the U.S., as well as many economies overseas.

By Oscar Wei / California Association of Realtor

Beautiful Views, Inside and Out

5 Buckboard Trail, Rolling Hills CA 90274
Asking Price: $2,825,000

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This gorgeous 6 bedroom, 3 bath home is situated on 3.7 acres in the private, gated city of Rolling Hills, CA. The 2,939 square foot split floor plan features a great room with spectacular city, mountain and canyon views. Beautiful kitchen includes premium stainless steel appliances and granite counters. Bathrooms have been recently updated. Terraced grounds include a barn and corral area and are ready for horses, orchards or even a vineyard. Convenient direct access to 60 miles of hiking and equestrian trails. Home is located in the Palos Verdes Unified School District, nationally recognized for excellence.

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This home is shown by appointment only. Please call Leslie Stetson at 310.936.1283 or Clint Patterson at 310.426.8811 to arrange a showing.

MLS# PV16126297

For more photos and information about this beautiful home for sale, visit our property site.

Avoid These 5 Common Home Seller Mistakes

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Finding a buyer for your home is just the first step on the homeselling path. Tread carefully in the weeks ahead because if you make one of these common seller mistakes, your deal may not close.

Mistake #1: Ignore Contingencies

If your contract requires you to do something before the sale, do it. If the buyers make the sale contingent on certain repairs, don’t do cheap patch-jobs and expect the buyers not to notice the fixes weren’t done properly.

Mistake #2: Don’t Bother to Fix Things That Break

The last thing any seller needs is for the buyers to notice on the pre-closing walk-through that the home isn’t in the same condition as when they made their offer. When things fall apart in a home about to be purchased, sellers must make the repairs. If the furnace fails, get a professional to fix it, and inform the buyers that the work was done. When you fail to maintain the home, the buyers may lose confidence in your integrity and the condition of the home and back out of the sale.

Mistake #3: Get Lax About Deadlines

Treat deadlines as sacrosanct. If you have three days to accept or reject the home inspection, make your decision within three days. If you’re selling, move out a few days early, so you can turn over the keys at closing.

Mistake #4: Refuse to Negotiate Any Further

Once you’ve negotiated a price, it’s natural to calculate how much you’ll walk away with from the closing table. However, problems uncovered during inspections will have to be fixed. The appraisal may come in at a price below what the buyers offered to pay. Be prepared to negotiate with the buyers over these bottom-line-influencing issues.
Related: How to Field a Lowball Purchase Offer

Mistake #5: Hide Liens from Buyers

Did you neglect to mention that Uncle Sam has placed a tax lien on your home or you owe six months of homeowners association fees? The title search is going to turn up any liens filed on your house. To sell your house, you have to pay off the lien (or get the borrower to agree to pay it off). If you can do that with the sales proceeds, great. If not, the sale isn’t going to close.

By: G. M. Filisko for Houselogic

This could be your home.

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6 Ringbit Road West, Rolling Hills, California

  • 5,664 sq. ft.
  • 6 bedrooms
  • panoramic view of the southern California sky over the Pacific Ocean
  • elegant entry way
  • much, much more….

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Learn more about this exquisite Rolling Hills home located on a cul-de-sac on Ringbit Road. Call Clint Patterson at 310.426.8811 or Leslie Stetson at 310.936.1283 for more information and a private viewing of this exquisite, spacious home sitting on roughly 3 acres of private, secluded land. And this is a gated, equestrian community.

Go to our property site for more photographs, and information about this Rolling Hills home on sale.

Virtual Tour:

Choosing Patio Stones

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With so many patio stones on the market, it can be hard to choose. So we’ve done the research to help you make the right choice for your home.

Brick

Brick pavers are classic. They’ve got lots of character, and you can explore your creative chops by setting them in intricate patterns. Thinner than typical “builder bricks” used on home siding, they’re made to hold up under heavy foot traffic.
Brick pavers come in a variety of shapes, sizes, colors, and finishes, and can look old or new. Because they’re smaller than other pavers, they take a while to put in place, and installation costs can be higher.

You can do the job yourself for $3 to $5 per square foot. You’ll need to rent a brick saw — a heavy table-mounted saw that makes cutting masonry a snap. Cost: $60 to $95 per day. Don’t forget: You’ll need to figure out a way to get the brick saw to your house.

For a pro-installed brick patio, you’ll pay $12 to $18 per square foot, professionally installed.

Concrete
Concrete Pavers
Rubber Tiles
Flagstone, Slate, and Marble
Decomposed Granite and Pebble Surfaces
Finding Your Own Recycled Materials
Mixing Materials
Getting on Base

Concrete

Concrete can be finished off in lots of imaginative ways — brushed, acid washed, scored, and stamped — and lots of colors. Its long lifespan and relatively inexpensive installation make it a popular choice.

“For colder climates, consider adding $1 to $2 per square foot for a specialized base preparation and concrete additive,” says Chris Fenmore, principal with Garden Studio Landscape Design.

Stamped concrete can simulate flagstone, brick, cobbles, and other decorative patterns, but adds about $3 per square foot to installation costs.

Figure $6 to 12 per square foot, depending on finish and color.

Brick
Concrete Pavers
Rubber Tiles
Flagstone, Slate, and Marble
Decomposed Granite and Pebble Surfaces
Finding Your Own Recycled Materials
Mixing Materials
Getting on Base

Concrete Pavers

Concrete pavers offer an embarrassment of riches — there are shapes, sizes, textures, and colors galore. Some are plain; some look like real stone; others have intricate patterns embossed on their surfaces. They’re readily available at home improvement centers and are well-suited to DIY patio projects.

Interlocking concrete pavers have tabs and slots so they fit together like pieces of a very simple puzzle. They’re fairly inexpensive, have minimal maintenance, and install quickly.

Concrete pavers are $2 to $8 per square foot. If you’d rather have a pro do it, you’ll pay $7 to $15 per square foot, including materials.

Brick
Concrete
Rubber Tiles
Flagstone, Slate, and Marble
Decomposed Granite and Pebble Surfaces
Finding Your Own Recycled Materials
Mixing Materials
Getting on Base

Rubber Tiles
Rubber tiles are made from recycled tires. They’re designed to go over any surface, and their light weight means you can use them on decks. They look like concrete tiles, with finishes that resemble brick and terra cotta. They’re fairly new on the market, so the jury is still out on how they perform over time.

Rubber tiles are strictly a DIY material, and they snap together with connector clips. They’re good for quickly covering up old, cracked, worn patio surfaces. You’ll pay $3 to $5 per square foot.

Brick
Concrete
Concrete Pavers
Flagstone, Slate, and Marble
Decomposed Granite and Pebble Surfaces
Finding Your Own Recycled Materials
Mixing Materials
Getting on Base

Flagstone, Slate, and Marble

Almost any stone can work as a paver, but most are either sandstone, limestone, slate, or granite. The materials you select will be especially cost-efficient if they come from locally operated quarries; check your local stone supplier before looking at national home improvement chains.

Stone pavers are cut into modular shapes; 6-by-12, 12-by-12, and 18-by-18-inch sizes are standard. Uncut pavers have rough, irregular edges and come in various sizes.

When it comes to installing uncut stone, an experienced pro works quickly and is your best bet for a good-looking patio with even spaces between stones.

Pro installation is $12 to $28 per square foot, depending on the stone you choose.

Want to see some stone patios that really rock?

Brick
Concrete
Concrete Pavers
Rubber Tiles
Decomposed Granite and Pebble Surfaces
Finding Your Own Recycled Materials
Mixing Materials
Getting on Base

Decomposed Granite and Pebble Surfaces

Decomposed granite is made up of very small pieces of granite, ranging in size from 1/4-inch to the size of sand. It’s an affordable way to go, and some folks really love the slightly crunchy texture underfoot, and the way rain disappears — no puddles!

You’ll probably have to refresh and replenish the granite now and then, as the surface can erode with time, so there’s some preventative maintenance involved. Figure about $1 per square foot every three years for upkeep.

Also, decomposed granite isn’t solid and furniture legs tend to sink into the stones. Adding stabilizers that help bind particles together can strengthen the surface.

Cost: $1.50 per square foot without stabilizers, $2 with stabilizers.

Brick
Concrete
Concrete Pavers
Rubber Tiles
Flagstone, Slate, and Marble
Finding Your Own Recycled Materials
Mixing Materials
Getting on Base

Finding Your Own Recycled Materials

Like the idea of upcycling? A patio is a good way to reuse old building materials, and it’s a cost-effective and eco-friendly alternative to new materials. Plus, you’ll be building a one-of-a-kind creation. Tip: Look for materials that provide uniform thickness.
Cast-off concrete sections from a neighbor’s old driveway or sidewalk.
Check nearby construction sites for old materials — be sure to ask permission before hauling anything away.
Know of a building scheduled for demolition? See if there’s any old brick or stone is going to be discarded.
Although the materials are usually free, it’s a good idea to enlist some strong-backed helpers and the use of a pick-up truck. For a typical 12-by-12-foot patio, you’ll save $500 to $800 versus new pavers. Spend some of that on a patio party for your helpers.

(If you’re a salvaged materials aficionado, check out our slideshow on clever ways to use salvage in your home.)

Brick
Concrete
Concrete Pavers
Rubber Tiles
Flagstone, Slate, and Marble
Decomposed Granite and Pebble Surfaces
Mixing Materials
Getting on Base

Mixing Materials

Remember, you’re not stuck with one type of patio paver. Combining different materials — such as brick together with concrete, or stone with rock trim, can create a cool, customized look.

Southern California designer Chris Fenmore notes, “Too much hardscape can be tedious. I often like to use four-inch troughs separating masonry from concrete that can be filled with gravel, beach rocks, or ground cover. They provide a bit of relief from the hardscape and nice detail, adding to the custom look of the yard.”

Brick
Concrete
Concrete Pavers
Rubber Tiles
Flagstone, Slate, and Marble
Decomposed Granite and Pebble Surfaces
Finding Your Own Recycled Materials

Getting on Base

Choosing paving materials begins with a basic: the base or foundation. The base supports your pavers, and it’s got to be firm, strong, and designed to stand up to years of wear and weather. A poorly installed base leads to shifting and settling that’ll crack concrete and make your patio pavers look like choppy seas.

A sand-and-gravel base is a good DIY project; leave a concrete slab base to the pros.

A gravel and sand base is a simple foundation that lets you “dry set” pavers — you put the pavers on top of the base, then sweep fine sand into the joints to hold them there. Building a gravel-and-sand base is an easy (but time-consuming) DIY project. You’ll pay $2 to $3 per square foot for a DIY job. If you’d rather have a pro do the work, figure $3 to $5 per square foot.

With a sand or gravel base, chances are there’ll be some settling over time. Every couple of years, plan on resetting individual pavers that have gotten out of whack because of settling.

A concrete base offers greater longevity and stability, with less potential for settling. On a concrete slab base, the paving materials are set permanently with mortar, and ongoing maintenance is minimal.

Working with concrete is a challenge for weekend warriors, so skip experimentation (mistakes in concrete are permanent) and go with a pro. You’ll pay $5 to $8 per square foot for a professionally installed concrete base.

If you’re a fan of concrete, check out these imaginative ways to use concrete inside your house.

Brick
Concrete
Concrete Pavers
Rubber Tiles
Flagstone, Slate, and Marble
Decomposed Granite and Pebble Surfaces
Finding Your Own Recycled Materials
Mixing Materials

By: Andrea Nordstrom Caughey on houselogic.com