Per usual, San Diego experienced a severly slow holiday period and January felt the hangover, but February was a recovery period and foreshadows a better Spring. Just like Spring 2010 when prices gained the most in the past 3 years [heavily fueled by tax-credit incentives] this Spring's outlook looks strong.
Interest rates are still very low but are slowly creeping up and FHA has tacked-on higher insurance premiums, nonetheless NOW is the time to buy.
Showing posts with label buying a home. Show all posts
Showing posts with label buying a home. Show all posts
Tuesday, March 1, 2011
Monday, October 4, 2010
10 Reasons to Buy a Home Now!
10 REASONS TO BUY A HOME
from The Wall Street Journal
1. You can get a good deal! This is a buyer’s market. Prices have come down quite a bit since the peak, 20-50% depending on the area. Prices have now been going up for 8 months. Could they fall again? Yes, they could, it is nearly impossible to time the bottom of the market but it doesn’t matter in the long haul.
2. Mortgage rates are incredibly low! You can get a 30-year loan for around 4.3%— this is a record low. Less than 2 years ago interest rates were around 6.3%. This drop lowers your monthly payment by 1/5th. If inflation picks up these rates will disappear. If have deflation you can refinance.
3. Tax Savings! You can deduct your mortgage interest from your taxes,
4. It will be YOUR home. You can remodel whatever you want. You can paint to your liking. And most of all, you are earning equity in your home every month.
5. You’ll get a better home. Do the math between renting and owning, it is quite possible you can afford to buy a nicer home than you can rent.
6. Owning offers some inflation protection. This concept isn’t perfect but studies by Case-Shiller and other economists suggest that owning property, over the long-term often beats inflation by a few percentage points each year.
7. It’s risk capital. Your home isn’t a piggy bank or the stock market and shouldn’t be bought as a means to get rich, but in a few years your home will be worth more than it is today. Equity in your home is another way of linking part of your portfolio to the growth of the economy.
8. It’s forced savings. If you can save $400/month by renting instead of buying will you save the $400 for your future? Probably not. If your mortgage payment pays a portion of the principle you are in return paying yourself and building equity.
9. There is a lot to choose from. While most of the “great deals” are short sales in San Diego there are tons of homes to choose from. At the time of writing this we have 182 detached houses and 62 condos on the market in 92106 and 92107.
10. Sooner or later, the market will clear. Economists say the recession is over and housing prices have been slowly creeping up for 9 months. Will it dip again this winter? Maybe, but with interest rates this low now is the time to buy!
from The Wall Street Journal
1. You can get a good deal! This is a buyer’s market. Prices have come down quite a bit since the peak, 20-50% depending on the area. Prices have now been going up for 8 months. Could they fall again? Yes, they could, it is nearly impossible to time the bottom of the market but it doesn’t matter in the long haul.
2. Mortgage rates are incredibly low! You can get a 30-year loan for around 4.3%— this is a record low. Less than 2 years ago interest rates were around 6.3%. This drop lowers your monthly payment by 1/5th. If inflation picks up these rates will disappear. If have deflation you can refinance.
3. Tax Savings! You can deduct your mortgage interest from your taxes,
4. It will be YOUR home. You can remodel whatever you want. You can paint to your liking. And most of all, you are earning equity in your home every month.
5. You’ll get a better home. Do the math between renting and owning, it is quite possible you can afford to buy a nicer home than you can rent.
6. Owning offers some inflation protection. This concept isn’t perfect but studies by Case-Shiller and other economists suggest that owning property, over the long-term often beats inflation by a few percentage points each year.
7. It’s risk capital. Your home isn’t a piggy bank or the stock market and shouldn’t be bought as a means to get rich, but in a few years your home will be worth more than it is today. Equity in your home is another way of linking part of your portfolio to the growth of the economy.
8. It’s forced savings. If you can save $400/month by renting instead of buying will you save the $400 for your future? Probably not. If your mortgage payment pays a portion of the principle you are in return paying yourself and building equity.
9. There is a lot to choose from. While most of the “great deals” are short sales in San Diego there are tons of homes to choose from. At the time of writing this we have 182 detached houses and 62 condos on the market in 92106 and 92107.
10. Sooner or later, the market will clear. Economists say the recession is over and housing prices have been slowly creeping up for 9 months. Will it dip again this winter? Maybe, but with interest rates this low now is the time to buy!
Questions?
Wonder what is for sale in your neighborhood?
Call us ~ we are here to help!
(619) 224-7249
Tuesday, May 26, 2009
Jumbo Loan Availability = Jumbo Problem
A study was just released by the National Association of Realtors (NAR) reporting that the limited availablility of jumbo mortgages (loans over $480k) is holding back high-end real estate sales. NAR reports, in today's market, lenders are less likely to loan to jumbo-borrowers even with good credit scores and large downpayments than they are to smaller-scale borrowers with lesser credit and a higher loan-to-value ratio.
Jumbo loans, even to well-qualified buyers, are carrying a much higher interest rate than smaller loans which is leaving ready, willing and able buyers sidelined or resorting to smaller cash-only purchases.
At the top of the market in 2006, jumbo mortgages were at $480billion and now last year (2008) are down to $97billion.
This inavailability of financing is keeping the mid/high-end real estate market from its turn-around.
Meanwhile, while much of the high-end inventory is becoming stale, low-priced homes and condos are selling at record rates. It appears that lower priced condos [under $225k] and houses [under $300k] have hit rock-bottom or are very near, especially in costal areas. Of course, the biggest battle in this price range is the monumental number of short sales, many of which have multiple offers and sometimes an unethical process. Unfortunately, it does not look like short sales will be going away anytime soon.
If you have any questions about short sales or the short sale process please look at my short sale post or email me-- I am here to help.
Jumbo loans, even to well-qualified buyers, are carrying a much higher interest rate than smaller loans which is leaving ready, willing and able buyers sidelined or resorting to smaller cash-only purchases.
At the top of the market in 2006, jumbo mortgages were at $480billion and now last year (2008) are down to $97billion.
This inavailability of financing is keeping the mid/high-end real estate market from its turn-around.
Meanwhile, while much of the high-end inventory is becoming stale, low-priced homes and condos are selling at record rates. It appears that lower priced condos [under $225k] and houses [under $300k] have hit rock-bottom or are very near, especially in costal areas. Of course, the biggest battle in this price range is the monumental number of short sales, many of which have multiple offers and sometimes an unethical process. Unfortunately, it does not look like short sales will be going away anytime soon.
If you have any questions about short sales or the short sale process please look at my short sale post or email me-- I am here to help.
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