Buying Strategies Category

Market Update | Home Prices and Sales Up in March

posted on April 12th, 2016 | filed under: Buying Strategies, Market Update, NoCo SD Market Conditions, Uncategorized

Trends at a glance - May 2016The median price for single-family, re-sale homes reached its highest level since last July.

After moving into sellers’ territory in March 2013, the momentum for median price has been flat since last August.

The momentum for home sales moved into sellers’ territory the first quarter of 2012. It has stayed mostly flat since.

Pending listings moved into negative territory last month for the first time since October 2014.

MARCH SALES STATISTICS

SINGLE-FAMILY HOMES

Year-Over-Year

  • Median home prices increased by 4.7% year-over-year to $530,000 from $506,178.
  • The average home sales price dropped by 0.6% year-over-year to $670,622 from $674,468.
  • Home sales rose by 3.8% year-over-year to 2,098 from 2,022.
  • Total inventory* fell 5.3% year-over-year to 8,268 from 8,729. Active listings were off 5.6%, while pending listings fell 4.9%.
  • Sales price vs. list price ratio rose by 0.2% year-over-year to 98.1% from 97.9%.
  • The average days on market fell by 14.9% year-over-year to 42 from 49.

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Market Update | Multiple Offer Offers

posted on March 17th, 2016 | filed under: Buying Strategies, Market Update, NoCo SD Market Conditions, Uncategorized

Trends At A Glance Mar 2015Have you ever been in a situation where your offer is competing with one or more offers? Multiple offers do crop up, especially in desirable neighborhoods, which are those defined by:

• Low-crime,
• Good schools,
• Stable, long-term residents,
• Neighborhood amenities, such as parks, libraries, tennis and/or basketball courts, and curb appeal,
• Short commute times and/or public transportation, among other things.

When deciding to buy a home in a multiple bid environment, there are some things buyers must do and some things they can do to increase the chances of winning the offer war.

First, all–cash offers are hard to beat, with no need for appraisals and the ability for the buyer to close quickly.

Yet, they can be beat. First, don’t just get a preapproval letter, get a pre-approval letter on steroids.

That kind of pre-approval letter will include some words from the lender verifying that you are a well qualified buyer. Have the mortgage broker or agent provide some financial information about you and your offer. Also, have your mortgage broker take as much of the loan through the process as possible.

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Market Update | Whither the Market?

posted on February 18th, 2016 | filed under: Buying Strategies, Market Update, NoCo SD Market Conditions, Uncategorized

Trenda at a glance 2.18.16After four years of rapid price appreciation, there have been whispers of a market correction, fueled by a wildly oscillating stock market and steep appreciation in the U.S. dollar, which has pretty much dried up foreign buying.

Let’s take a look at some things effecting the real estate market.

To get a grip on the local market, let’s look at some of the underlying dynamics.

First, there is a very limited supply of properties for sale. New home building has been moribund for the past eight years. Since the early part of the century, when there were over 2,000 homes being built each year, the past eight years has seen home building between 500 and 800 units a year.

Inventory of single-family homes in San Diego County has been lower than the year before for the past seventeen months. Low inventory points to a sellers’ market.

We expect, nay, hope, that the baby boomers will start cashing out and move to lower cost locales, thus freeing up inventory. But, we’re not holding our breath.

Baby boomers may start selling when they see the market start to flatten. The market will probably start flattening when mortgage rates go over 5%. We don’t see that happening this year.

Second, demand is still very strong. Pending sales, which are an indicator of future closed sales, have been higher than the year before for the past fifteen months.

Lest we slight them anymore than the mainstream media does, let’s look at the much-maligned millennials. Reports from my compatriots indicate that marriage and family are starting to become a topic. That always translates in purchasing property, thereby increasing demand.

So, the market MAY slow down a bit, but a full-blown correction? Not unless some cataclysmic event occurs, and let’s all hope that does not happen.

P.S. The antics in the stock market have prompted some people to pull their money out. Where are they putting it? Real estate.

 

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Market Update | The Hottest U.S. Housing Markets in December 2015

posted on January 19th, 2016 | filed under: Buying Strategies, Market Update, NoCo SD Market Conditions, Uncategorized

Trends at a glance - Jan 2016Just as we’d expected, the residential real estate market cooled down a bit in the last month of 2015, with reduced demand and inventory in most major markets—though not as much of a slowdown as the same time last year, according to a preliminary analysis of the month’s data on realtor.com®. Jonathan Smoke, chief economist of realtor.com, and his team carried out the data analysis and identified the top 20 medium-to-large markets where homes are moving fastest and interest (based on listing views on realtor.com) is highest. At the top of the list, for the second month in a row, is San Francisco, followed by its sister Bay Area city San Jose.

“While California closed out our latest ranking still firmly in control of the hottest markets, the Midwest and Florida are both seeing substantial improvement,” said Smoke. “Pent-up demand and robust economic growth combined with limited supply will keep California tight in 2016, but more markets will challenge them as demand improves elsewhere.”

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Market Update | Lack of Affordable Homes to Continue

posted on December 17th, 2015 | filed under: Buying Strategies, Market Update, NoCo SD Market Conditions, Uncategorized

Trends At A Glance - Dec 2015Housing affordability is one area where California can expect to experience long-term pain. Statewide, the percentage of households that earn enough to purchase a median-priced home rose 34 percent in early 2015 before settling in the low 30s—down from a high of 53 percent in 2011 and 36 percent in 2014. In high-priced coastal cities, percentages have fallen into the teens and lower.

The cause? Too many people, not enough homes being built, and rising prices that make it difficult, if not impossible, for many renters to buy. With renters paying a larger share of their income on rent, it is more difficult for them to save for a down payment.

“When I think about affordability, the first thing I think is, ‘Do we have an adequate supply?’” said Raphael Bostic, Ph.D., Judith and John Bedrosian Chair in Governance and the Public Enterprise at USC’s Price School of Public Policy, who recently returned to USC following three years as chief policy and research advisor to the Secretary of the U.S. Department of Housing and Urban Development.

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Market Update | C.A.R.’s 2016 California Housing Market Forecast

posted on November 20th, 2015 | filed under: Buying Strategies, Market Update, NoCo SD Market Conditions, Uncategorized

Trends at a glance 11.20.15California home sales to increase slightly, while prices post slowest gain in five years. California’s housing market will continue to improve into 2016, but a shortage of homes on the market and a crimp in housing affordability also will persist, according to the CALIFORNIA ASSOCIATION OF REALTORS®’ (C.A.R.) “2016 California Housing Market Forecast”.

The C.A.R. forecast sees an increase in existing home sales of 6.3 percent next year to reach 433,000 units, up from the projected 2015 sales figure of 407,500 homes sold. Sales in 2015 also will be up 6.3 percent from the 383,300 existing, single-family homes sold in 2014.

“Solid job growth and favorable interest rates will drive a strong demand for housing next year,” said C.A.R. President Chris Kutzkey. “However, in regions where inventory is tight, such as the San Francisco Bay Area, sales growth could be limited by stiff market competition and diminishing housing affordability. On the other hand, demand in less expensive areas such as Solano County, the Central Valley, and Riverside/San Bernardino areas will remain strong thanks to solid job growth in warehousing, transportation, logistics, and manufacturing in these areas.”

C.A.R.’s forecast projects growth in the U.S. Gross Domestic Product of 2.7 percent in 2016, after a projected gain of 2.4 percent in 2015. With nonfarm job growth of 2.3 percent in California, the state’s unemployment rate should decrease to 5.5 percent in 2016 from 6.3 percent in 2015 and 7.5 percent in 2014.

The average for 30-year, fixed mortgage interest rates will rise only slightly to 4.5 percent but will still remain at historically low levels.

“Solid job growth and favorable interest rates will drive a strong demand for housing next year,” said C.A.R. President Chris Kutzkey.

The California median home price is forecast to increase 3.2 percent to $491,300 in 2016, following a projected 6.5 percent increase in 2015 to $476,300. This is the slowest rate of price appreciation in five years.

“The foundation for California’s housing market remains strong, with moderating home prices, signs of credit easing, and the state continuing to lead the nation in economic and job growth,” said C.A.R. Vice President and Chief Economist Leslie Appleton-Young. “However, the global economic slowdown, financial market volatility, and the anticipation of higher interest rates are some of the challenges that may have an adverse impact on the market’s momentum next year. Additionally, as we see more sales shift to inland regions of the state, the change in mix of sales will keep increases in the statewide median price tempered.”

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SOLD for $275,000! Exclusive Opportunity – Not Listed on the MLS!

posted on October 29th, 2015 | filed under: Business Referral, Buying Strategies, For Sale, Good People, Loving the Lifestyle

DSC07463-2Updated Condo In Rancho Penasquitos

Open House: Sat (10/31) & Sun (11/1) 12-3 PM

Call or Text Jeff 858-883-3324 Immediately for a private showing – don’t miss this opportunity!

This is the perfect investment property. Updated and move-in ready.  Fantastic Terra Vista community in a great commuter location (I-15 and 56).

Features: dual master suites on opposite sides of the unit – ideal for roommates, fireplace, balcony, upstairs unit, views of community pool and greenbelt.

Updates Include: Granite Countertops in Kitchen & Bathrooms, Solid Wood Cabinetry in Kitchen and Bathrooms, Tile floors in Kitchen & Bathrooms, new water heater and full size stackable washer & dryer.

Terra Vista community amenities include: Pool, Spa, Exercise Room, and community laundry facilities.

More Info & Photos | Offered At $279,000

Hurry!!!

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Market Update | What to do with Excess Capital Gains

posted on October 16th, 2015 | filed under: Buying Strategies, Market Update, NoCo SD Market Conditions, Uncategorized

Trends at a glance 10.15.15Your September 2015 Market Update

Over the past fifteen years, the value of homes in San Diego County has almost doubled.

In January 2001, the median price for single-family, re-sale homes was $265,000. In September 2015, the median price was $515,000.

Many homeowners will find they may owe capital gains tax on the sale of their property.

Most homeowners know they can exclude $250,000 of their capital gains. For married couples filing jointly, the exclusion goes up to $500,000.

The exclusion is only for your principal residence. You must have lived in the home for an aggregate of at least two of the five years before the sale.

One nice thing about calculating your gain is it is based on your home’s selling price minus deductible closing costs, selling costs and your tax basis in the property. Your basis is the original purchase price, plus purchase expenses, plus the cost of capital improvements, minus any depreciation and minus any casualty losses or insurance payments.

Deductible closing costs include points or prepaid interest on your mortgage and your share of the prorated property taxes.

Of course, like any law, there is a lot of fine print. If you are planning on selling your home, we highly recommend consulting with an accountant or real estate attorney.

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The Perks of Buying a Home in the Fall

posted on September 18th, 2015 | filed under: Buying Strategies, For Sale, Good People, Loving the Lifestyle, Market Update

2111366319_3d0064aef6_zAs we close out a summer marked by rising home prices and limited supply, we’re conditioned to expect the inevitable end-of-season slowdown. But the change of season doesn’t mean activity drops off completely – in fact, fall’s arrival presents opportunities for homebuyers, in part due to a “back-to-school mentality,” according to a survey by ERA Real Estate.

If you’re a prospective homebuyer, tap into that renewed sense of motivation – and consider the following perks – while hunting for a home this fall.

You can enjoy year-end tax breaks. Buying before the year’s out allows fall homebuyers to take advantage of tax breaks such as the mortgage interest and property tax deductions. “There are certain deductions that can be claimed by homeowners only,” explains 1040Return.com Founder John Gregory. “If you have taken out a homeowner’s loan, consider these deductions as Uncle Sam’s gift to you.” To learn more about the tax benefits available to homeowners.

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Market Update | Where are All the Homes for Sale?

posted on September 14th, 2015 | filed under: Buying Strategies, Market Update, NoCo SD Market Conditions, Uncategorized

Trends At A Glance 9.15.15Market Update

Homeowners caught in affordability squeeze, are staying put, REALTOR® survey finds.

LOS ANGELES (August 26) – Even with rising home prices over the past few years, many homeowners who have considered selling are deciding not to because they are caught in an affordability squeeze that is compounded by a lack of inventory, according to findings from the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) “2015 Survey of California Homeowners.”

More than one-third (35%) of homeowners have considered selling their home in the past year, and of that share, about two-thirds (64%) are reluctant to sell because they are finding they can’t afford the home they really want, the survey found.

C.A.R.’s Survey of California Homeowners also found that more than half (59%) of homeowners have not seriously considered selling their home in the past year, with more than half (60%) saying their current home will be their retirement residence. For those who have been in their home 15 years or more, that figure rises to 70%. But for others (44%), the affordability crunch, higher property taxes, and home prices are keeping them in their current home.

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