May 2006

May Newsletter Headlines

For the full report with charts & graphs, and our predictions for this year,
go to http://www.sandiegohomes4u.com/RealEstateTrends.htm

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.

As many of you know, most of my business comes from repeat & referral clients.This allows me to spend less time prospecting for new business and more time helping my buyers & Sellers. Please do your friends and me a favor. When you hear of someone who is thinking of buying or selling, anywhere in the US, call me with his or her name and phone so I can give him or her the excellent service I provide, your referrals are the highest complement you can give me.

Our Current Listings

6980 Ballena Way #43 - Resort style living at La Costa Alta in Carlsbad
2 Bedroom, 2 Bath with a garage
968 Sqft for only $375,000
Single Story, Immaculate. Was used as a second home.
http://sandiegohomes4u.com/Carlsbad_Ballena43.htm

4808 Courageous Lane - Close to the beach and walking distance to lagoon.
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

3979 Mission Blvd.- Pacific Beach mixed use home.
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.
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/kykzv

Local News for Buyers

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

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. Buyer showings are 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).

• Which Repairs Should You Make Before the Sale?
• Mortgage Rates, Points, and Fees
• Children's Life Stages Crucial When Considering Where to Buy a Home
• Sweat Equity Home Improvement Tips
• Why Pre-qualification and Pre-approval Helps Your Home Search