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Local
News for Buyers
The inventory has increased from last year so it is easier to
find the right home. Multiple offers are still showing up on some
new listings if they are priced correctly, or in areas with a shortage
of homes for sale.
Number of re-sale houses & condos available
in San Diego County is increasing. We are now at 14,151 on 9/11/05
compared to 12,204
on 7/11/05. The number of properties going into escrow dropped
from 6514 to 5901 in the same time frame. Last year at this time,
we were at 7051 houses and condos on the market and 6329 in escrow.
This is the reason that prices are flattening. More inventory and
about the same number of buyers. This is creating a buying opportunity.
Should
you Buy Now or Wait? That depends on your
cash position.
For a full report, see my recent article at:
http://sandiegohomes4u.com/buy_now_or_wait.htm
Higher inventory in many areas is giving buyers time
to look around. Buyers do not have to make an immediate decision
on a property unless it is new on the market and/or priced right.
The market is still gaining in price in many areas of San Diego,
but not as much as in previous years.
The key to future price increases is in the interest
rate. We have had a wonderful long run of historically low interest
rates. This
has allowed prices to rise and yet the home payment has remained
relatively level. The lenders are continually developing many
new programs that allow buyers to get into homes that they would
not
have been able to buy previously. Call me to get started now at
760-436-0087.
New loan programs are being released: 30 or 40 year amortized
loan with the first 10 years at interest only! Conforming loan
guidelines
are being increased to about $370K, which will help buyers
in the lower price ranges or those with smaller down payments.
Please
contact me for a referral to a great lender.
Here is what I
can do for you, the buyer:
http://sandiegohomes4u.com/Home_Buyer_Services.htm
Please call me at 760-436-0087 or see my site at:
http://www.sandiegohomes4u.com/MLS_Search.htm
Housing booms don't always lead to busts
By Holden Lewis, Bankrate.com
Should you rent and wait to buy a house after prices
fall? Don't get your hopes up. If history is a reliable guide,
home values
in your target neighborhood probably won't fall. But they might
stagnate long enough for your income to catch up to prices. This
year the Federal Deposit Insurance Corp. prepared a research report
titled, "U.S. Home Prices: Does Bust Always Follow Boom?" The
answer to the question in the title is no. Sometimes a housing
boom ends not with a decline in values, but with prices leveling
off or rising slowly. http://www.bankrate.com/brm/news/mortgages/ShouldYouWait.asp
Sell high, rent low: The Bubble Sitters
http://www.bankrate.com/brm/news/mortgages/bubblemain.asp
Local
News for Sellers
The market has slowed and the incredible appreciation
we have seen over the past two years appears to have leveled off.
If you price your home in anticipation of 1-3% appreciation a month,
it will be sitting there a long time. Market time is increasing.
Many sellers are reducing their prices in realization of the need
to be competitive, in light of the increasing inventory. The number
of buyer showings is down in many areas.
We are about even between
a buyers & a sellers market in much
of the County. It is expected to stay that way as long as interest
rates climb slowly and stay below 7%.
Where we go from here depends on inventory levels and interest
rates. Right now, inventory is up significantly, which gives
buyers more time to compare your home to others. It is also causing
the
marketing time to increase by 58% over last year. Some areas
are going up in price and a few are flat or going down in price.
Kenneth
Harney had an interesting recent article about sellers getting
stuck on a price and getting less than they could. That
is currently possible in some areas of San Diego where the
inventory is ahead of the buyers. http://www.signonsandiego.com/uniontrib/20050904/news_1h04harney.html
