Home prices rose almost 2% since October but are down more than 4% from a year ago. While prices are remaining somewhat stable the number of sales continues to rise, which is rare for November.
Cash purchases are still near record high w/ over 28% of all transactions, down a bit from earlier this year, but still far above average [15%].
Sales under $400k rose more than 6% from 2010 while sales over $500k dropped more than 15%, heavily influenced by difficult with loans and buyers' losses in the stock market.
It is easy to see that the real estate market is completely saturated with low-end investment buyers; buyers primarily looking for a more secure investment than .01% interest in the bank or the roller coaster stock market. There are numerous homes available for under $150k and most are selling with multiple offers with a majority of cash offers.
In the ultra-low-end market (under $150k) bank-owned homes are being under-priced to create a heavy bidding war-- a frustrating occurrence frequently seen back in 2009. I cannot reason why a listing agent would prefer to have 20+ low-ball offers on a property when they could list the home at market value and receive offers from realistic buyers. Though it is obvious, sales under $100k have definitely bounced back and are appreciating. Buyers making offers in line with market value (based on comps) are being outbid by other cash buyers who are willing to risk a few thousand dollars in order to gain an 8-10% return on investment.
Showing posts with label san diego real estate. Show all posts
Showing posts with label san diego real estate. Show all posts
Wednesday, December 28, 2011
Wednesday, April 6, 2011
Why Should You Use a Real Estate Agent?
So often I hear from potential buyers that they prefer to not use an agent because they can do "everything" themselves online. With all the real estate websites available today this is true, to some degree.
Of everything posted on the internet, most is not carefully monitored nor does it have a 'code of ethics'. People always warn of social media site users of protecting their identities and whatnot, but the same goes for real estate websites.
I have many tech-savvyy clients who enjoy searching various websites to make sure I am sending them everything currently available. I encourage them to be active in their search for a home, and the "do-it-yourself" action makes them feel more involved.
Often my clients email me several listings to which I graciously cross-check with our MLS and look to determine why I did not send it to them. 100% of the time there is a valid reason the listing did not come from me. Below are the primary reasons.
1. The house is sold or in escrow. Maybe it sold in 1995, which is why it is listed $174,000 below market value. If it is in escrow that means it is under contract with a buyer. Many websites are not updated and get their info from various sources.
2. The house was never officially for sale-- not sure where websites gather this information, maybe it was for rent, maybe it was seized by the bank, maybe it is an agent trying to get business.
I just had one of my clients find a house on a "for sale by owner" website. It was listed $147,000 below what it was listed 1 month prior by a legitimate agent. I cross-checked the tax records which had a different name as owner. To get the real-deal, I tried calling the "seller", of course, the number was disconnected, so I emailed him. He responded and said he was overseas and didn't want to pay the "20%" fees associated with having an agent [fyi- it costs about 7% in fees to sell your home]. He gave me his overseas number and an 800-number for his realtor here, a notable agent. Long story short, I called the agent directly from their # in our MLS, they had no knowledge of this and confirmed he was not the seller.
Attention buyers: You pay NOTHING for an agent's services, we are paid from the seller's proceeds. House shopping on your own without an agent isn't wise and can be a huge waste of time. Not to mention when you find your dream home will you know what to do to protect your investment? I'm here if you need me! 619-990-4192
Of everything posted on the internet, most is not carefully monitored nor does it have a 'code of ethics'. People always warn of social media site users of protecting their identities and whatnot, but the same goes for real estate websites.
I have many tech-savvyy clients who enjoy searching various websites to make sure I am sending them everything currently available. I encourage them to be active in their search for a home, and the "do-it-yourself" action makes them feel more involved.
Often my clients email me several listings to which I graciously cross-check with our MLS and look to determine why I did not send it to them. 100% of the time there is a valid reason the listing did not come from me. Below are the primary reasons.
1. The house is sold or in escrow. Maybe it sold in 1995, which is why it is listed $174,000 below market value. If it is in escrow that means it is under contract with a buyer. Many websites are not updated and get their info from various sources.
2. The house was never officially for sale-- not sure where websites gather this information, maybe it was for rent, maybe it was seized by the bank, maybe it is an agent trying to get business.
I just had one of my clients find a house on a "for sale by owner" website. It was listed $147,000 below what it was listed 1 month prior by a legitimate agent. I cross-checked the tax records which had a different name as owner. To get the real-deal, I tried calling the "seller", of course, the number was disconnected, so I emailed him. He responded and said he was overseas and didn't want to pay the "20%" fees associated with having an agent [fyi- it costs about 7% in fees to sell your home]. He gave me his overseas number and an 800-number for his realtor here, a notable agent. Long story short, I called the agent directly from their # in our MLS, they had no knowledge of this and confirmed he was not the seller.
Attention buyers: You pay NOTHING for an agent's services, we are paid from the seller's proceeds. House shopping on your own without an agent isn't wise and can be a huge waste of time. Not to mention when you find your dream home will you know what to do to protect your investment? I'm here if you need me! 619-990-4192
Tuesday, March 1, 2011
San Diego Real Estate Market: Up, down, up, down and UP again
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.
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.
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
Monday, March 15, 2010
I'm Your Short Sale & Foreclosure Resource Specialist!
Short sales and foreclosures can be a headache but I am committed to making these transactions as smooth as possible. I have just received my Short-Sale & Foreclosure Resource Specialist (SFR) designation after taking specialized certification classes in these transactions.
Looking to buy or sell? Need to do a short sale? I'm your agent! Call or email me with any questions (619) 224-7249 or adegen@coldwellbanker.com
Looking to buy or sell? Need to do a short sale? I'm your agent! Call or email me with any questions (619) 224-7249 or adegen@coldwellbanker.com
Monday, February 1, 2010
Positive Real Estate News
The real estate market has continued its upward turn month over month and now the median price has continued its rise as well. San Diego saw a 13% gain from November '09 to December '09 which is one of the largest gains since 1988.
Rumors continue to spread that the worst is still yet to come when the banks release their "shadow" inventory and a wave of foreclosures hit the market, but insiders say this is not the case. Bank foreclosures representitives say they will continue to disburse a "trickle" of foreclosures similar to what we have seen for the past several months.
One new change is with FHA loan guidelines which will make FHA condo complexes jump through hoops to gain approval.
Rumors continue to spread that the worst is still yet to come when the banks release their "shadow" inventory and a wave of foreclosures hit the market, but insiders say this is not the case. Bank foreclosures representitives say they will continue to disburse a "trickle" of foreclosures similar to what we have seen for the past several months.
One new change is with FHA loan guidelines which will make FHA condo complexes jump through hoops to gain approval.
Sunday, August 23, 2009
San Diego Real Estate Market-- It's getting "better"!
Good news for the San Diego real estate market is causing frustration for buyers-- Summer has shown a positive change in the housing market and prices are turning. On par with the season, with beach congestion, tourism has brought more buyers to our city which is great for our economy and real estate but it is causing buyers to frequently be "outbid" on purchases. Almost all [detached] houses priced under $300k are being sold with many offers for over asking price.
Buyers whom 3 years ago could barely afford San Diego's condo market have recently become able to purchase a detached house and a year ago could still "negotiate" the offer and price. Yes, the bulk of these sales were/are foreclosures and short sales but in the past few months low-ball offers have become a thing of the past. Sellers are under-pricing listings, allowing the buyer pool to bid up the price and determine the actual value in the property.
Conservative loans and government loans (FHA) are also restricting owner-occupied buyers from purchasing homes that need a little TLC. Cash buyers and large-down conventional purchasers are scooping up all the small fixer houses because strict loan requirements make a house with excessive peeling paint [etc.] un-loanable.
It is still a great time to buy but buyers need to be confident in their purchase, know the comps and write their offer aggressively.
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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