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.
Is there a San Diego Real Estate Bubble?
Here are several articles on the subject and we will add more to
it.
http://sandiegohomes4u.com/San_Diego_Real_Estate_Bubble.htm
Local
News for Buyers
Buyers, early January can be the best time for buyers because
most of your competition is just starting to think about Real Estate
and many sellers that have their homes on the market now are very
motivated.
SuperBowl Sunday is that more than just a great opportunity to
watch commercials on TV. Sunday is the start of home
buying season according to an article on CNNMoney.com
"Kick
off! Game plan for home buyers"
http://money.cnn.com/2005/02/02/real_estate/buying_selling/thursday_kickoff/index.htm
Interest rates are about 6.25%. They are expected to go higher.
A “small” increase
in the interest rate, let’s say 1% from 6% to 7%, actually
equates to a 14% increase in your monthly payment (1/7 = .1428).
A $2000 payment becomes $2285.60.
The other way to look at it is in price. If your lender says
you can qualify for a $500K home at 6%, you will only be able to
qualify
for a property of $428,600 at 7% with the same payment. That
is a huge difference!
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.
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.
There is even a program that lets the seller pay up to the
first 12 months of the buyers loan payments. WOW! Please contact
me for a referral to a great and trustworthy 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 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 two 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. 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 most areas.
We are leaning a little toward a buyers instead of 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.
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 recently 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
