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.
Wednesday, December 28, 2011
Wednesday, August 24, 2011
Summer Real Estate Stats
Summer is beginning to wrap-up, though the beautiful weather is showing no sign of change, forecasted to be in the high 70s for the next few weeks. So did real estate rally and challenge all the doom and gloom of our economic purgatory? Not really.
June prices and quantities were up more than expected (yay!), more than any month since June 2010 when sales boomed from the stimulus tax credit, but July 2011 sales dropped more than predicted. Statistically, since 1988, home sales typically drop 4-6% from June to July, but this year, they were down over 11%.
Buyers/investors and everyone else had been in such a panic during [and following] the debt ceiling crisis all "maybe" buyers took two steps back to survey what would happen. Unfortunately for them, if their money was in the stock market while they mulled over buying property they are probably now even less likely or unable to buy a home or investment property.
Bank-owned (REO/foreclosure) home sales are down 2% from last July, now accounting for 32.% of all sales in SoCal which is far lower than 56.7% back in Feb. 2009.
I will still stick w/ my theory, the bottom of the market has come and gone (late 2009). No, the market hasn't gotten much better but it is stabilizing, though the Fall and Winter will be significant indicators.
Short sales are still just common as they have been the past 3 years but it appears that banks are becoming more pro-active in closing short sale transactions. But with every step forward there are always a few steps back, like always, there are many sellers who think they deserve a short sale just because their home is no longer worth what they owe and/or they took out too many loans to buy plasma tvs and Escalades.
Attn: Buyers (especially first-timers): Make sure you're working with an agent who knows how to navigate short sales, foreclosures and homepath properties. Just because the property is listed for sale does not mean it can actually sell as a short sale or for the price listed. Know what you are getting yourself into re: time, money and all the other hurdles that accompany a short sale escrow.
I have dealt with numerous short sales and have taken further education to stay up-to-date w/ the process. Do I recommend short sales? Rarely, but I know the process to insure the property is at least a realistic option so buyers are not wasting months of their time.
Questions? Call or email me - I won't pressure you into buying or selling, but I can help you weigh your options and determine what is best for you. I don't BS and I won't waste your time if you don't waste mine.
(619) 224-7249 office
June prices and quantities were up more than expected (yay!), more than any month since June 2010 when sales boomed from the stimulus tax credit, but July 2011 sales dropped more than predicted. Statistically, since 1988, home sales typically drop 4-6% from June to July, but this year, they were down over 11%.
Buyers/investors and everyone else had been in such a panic during [and following] the debt ceiling crisis all "maybe" buyers took two steps back to survey what would happen. Unfortunately for them, if their money was in the stock market while they mulled over buying property they are probably now even less likely or unable to buy a home or investment property.
Bank-owned (REO/foreclosure) home sales are down 2% from last July, now accounting for 32.% of all sales in SoCal which is far lower than 56.7% back in Feb. 2009.
I will still stick w/ my theory, the bottom of the market has come and gone (late 2009). No, the market hasn't gotten much better but it is stabilizing, though the Fall and Winter will be significant indicators.
Short sales are still just common as they have been the past 3 years but it appears that banks are becoming more pro-active in closing short sale transactions. But with every step forward there are always a few steps back, like always, there are many sellers who think they deserve a short sale just because their home is no longer worth what they owe and/or they took out too many loans to buy plasma tvs and Escalades.
Attn: Buyers (especially first-timers): Make sure you're working with an agent who knows how to navigate short sales, foreclosures and homepath properties. Just because the property is listed for sale does not mean it can actually sell as a short sale or for the price listed. Know what you are getting yourself into re: time, money and all the other hurdles that accompany a short sale escrow.
I have dealt with numerous short sales and have taken further education to stay up-to-date w/ the process. Do I recommend short sales? Rarely, but I know the process to insure the property is at least a realistic option so buyers are not wasting months of their time.
Questions? Call or email me - I won't pressure you into buying or selling, but I can help you weigh your options and determine what is best for you. I don't BS and I won't waste your time if you don't waste mine.
(619) 224-7249 office
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
Tuesday, July 6, 2010
Help for Struggling Homeowners!
The latest government rescue plan for homeowners are two new programs Home Affordable Modification Program (HAMP) and the Home Affordable Foreclosure Alternatives (HAFA) program. If HAMP won't work, which it hasn't for 93% of struggling homeowners then HAFA is the follow-up option.
These programs are designed to assist:
These programs are designed to assist:
- Owner-occupied properties which are currently delinquent on mortgage payments or in default.
- Mortgage balance is less than $729,750 purchased prior to January 1, 2009
If a borrower qualifies, HAMP can reduce interest rates down to 2%, extend a mortgage to 40 years and even waive interest on deferred payments.
HAFA steps in to assist borrowers who are unable to complete HAMP or go into default and miss payments while in HAMP. HAFA was designed to streamline and simplify the short sale process including accepting a Deed in Lieu (handing over the keys to the bank) or signing a short sale agreement with the bank.
If you are a seller struggling to keep your home there are numerous options for you. None of them are easy or a quick fix, but help is out there to keep you in your home.
If you have any questions please do not hesitate to call or email me- I'm here to help!
(619) 224-7249 or ashley.degen@gmail.com
Saturday, June 5, 2010
Happy Real Estate Summer!
The real estate market has continued to improve over the past year, but now that the Federal first-time buyer tax credit is OVER where will we go from here? With only about 1/2 of the California State "first time buyer" tax credit left will our market dip again?
May was an off-the-charts month for my business, personally, our escrow office was swamped and my office had the highest number of closings in the past 2 years. Of course, many of these transactions were taking advantage of the federal AND state tax credits, a lucky select few have been able to take advantage of BOTH credits, saving up to $18k. We will know by July 1st how the market will react post-federal tax credit (credit expires June 30th) and by that time the state money will be running low as well.
A big positive I have seen is far more "regular" sales in condos in Point Loma, Ocean Beach and nearby. I recently took a client out to look at 6 condos and EVERY SINGLE ONE was a REGULAR SALE... this was unheard of last year.
If you have any questions or are looking to buy or sell please call or email me 619-224-7249 or adegen@coldwellbanker.com
May was an off-the-charts month for my business, personally, our escrow office was swamped and my office had the highest number of closings in the past 2 years. Of course, many of these transactions were taking advantage of the federal AND state tax credits, a lucky select few have been able to take advantage of BOTH credits, saving up to $18k. We will know by July 1st how the market will react post-federal tax credit (credit expires June 30th) and by that time the state money will be running low as well.
A big positive I have seen is far more "regular" sales in condos in Point Loma, Ocean Beach and nearby. I recently took a client out to look at 6 condos and EVERY SINGLE ONE was a REGULAR SALE... this was unheard of last year.
If you have any questions or are looking to buy or sell please call or email me 619-224-7249 or adegen@coldwellbanker.com
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