April 2006

April 2006 Newsletter Headlines

More buyers returned to the market in March. Home sales were up 46.7% over February, which indicates sellers are beginning to realize the days of double-digit price increases are over. That number is still 29% below March 2005.

The median price for homes dropped 0.9% from February and was up 2.9% year-over-year.

Inventory is still rising. We are now over 17,000 Houses & Condos for sale here.

After falling for several months, the sales price to list price ratio reversed course and tacked on 1.4 points to 95.3%.

For the full report with charts & graphs, and our predictions for this year,
go to http://dennissmith.rereport.com/market_reports

The following is a long newsletter with lots of information and great links.
Take a few minutes to read it or save it in your favorites for later.

Our current listings:
4808 Courageous
One story condo in Laguna Del Mar in N. Carlsbad.
2 Br, 2 Ba & 2 car garage with back country views.
$559,900 for 1426 Sq Ft.
http://sandiegohomes4u.com/Carlsbad_CourageousLane.htm

Pacific Beach Mixed Use - 3979 Mission Blvd.
Residential or Offices on 2nd & 3rd floor.
New carpet, paint, kitchen cabinets, and roof.
Service/Retail space & 2 car garage on 1st floor.
Live there or use it for weekly or monthly rentals...or both.
Go to http://sandiegohomes4u.com/Mission_SDCounty.htm

You can also see all the Taylor Place listings which includes
several Bank Owned Foreclosures at http://tinyurl.com/nzb9v

Local News for Buyers

The inventory of homes 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. Price increases are not expected to continue due to the double whammy of higher interest rates and the high inventory of unsold homes.

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 feel that they 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 not kept pace with the price increases. 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.

Unfortunately, the yield on the governments 10 Year Treasury Note just hit 5% on 4/12/06 for he first time since June of 2002. This is expected to make mortgage rates climb again.

New loan programs are being released: 40 or 50 year amortized loans, some 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.

Call me to get started now at 760-436-0087.

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 view available homes on my site at:
http://www.sandiegohomes4u.com/MLS_Search.htm

Local News for Sellers

The market has slowed and the incredible appreciation we have seen over the past 5 years appears to be gone. 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. It has more than doubled in the last 2 years. 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 in a buyers market in much of the county. As it always is, the Buyer sets the price. The Seller just says “Yes” or “No”. Many Sellers have been saying “No” and the Buyers have said “We can wait”. The Buyers drove the market prices up with their multiple offers and they will drive the market down by sitting on the sidelines till prices drop.

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. A few areas are going up in price and most are flat or going down in price.

Sellers have to price their properties right because buyers have time to compare. A property should be in top condition when it goes on the market. This is imperative, especially the front yard and the entrance. First impressions are critical. Contact me for “40 Free or inexpensive tips to make your home show better and put more money in your pocket”

Kenneth Harney had an interesting 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. www.signonsandiego.com/uniontrib/20050904/news_1h04harney.html

• The best plan for your situation and your home.
• The most cost efficient and effective way to prepare your home for sale.
• How you can save thousands, and make more money
• Developing a marketing plan for your home that will maximize your investment.
• To request a free "Right Price Analysis" on your property.
• Let me show you how to maximize your profit on the sale of your home.

1. 100% Exposure Guarantee: We guarantee that we will advertise your property within 24 hours of listing, and advertise it EVERY DAY thereafter, until sold.
2. Satisfaction: If you are not satisfied with the job I am doing for you, you may cancel the contract for any reason except to avoid paying a rightful commission (any buyer that came during the listing period).

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• Fresh House: Smells Sell
• Saying 'I Do' to First Homes