Ryan Blanco San Diego real estate agent

San Diego Housing Market Update – December 2014 Sales

Below is my monthly analysis of the San Diego housing market. It will show many different metrics to help us get an accurate “feel” for what is happening in our local real estate market!

Activity Snapshot:

One-year change in closed sales

One-year change in median sales price

One year change in homes for sale

-9.2%

+6.0%

-10.6%

Inventory levels (the number of homes on the market “actively” for sale) continues to stay strong. This San Diego housing market update shows san diego housing market updatethere are currently only 5832 active residential listings in San Diego county, which continues in a downward trend. There were 6933 last month.

According to Bankrate.com, interest rates continue to trend lower compared to previous months. They are currently at 4.08% for a 30-year fixed loan. This is well below the historical average of 6% or so, which is great for home buyers. To calculate your potential mortgage payment or see what you can afford, go HERE.

Finally, as you will see on the chart below, prices are starting to take on a more normal pattern. There are much more modest changes than the previous year, with a 6.0% increase in median prices, compared to over 20% we saw in 2013 and early 2014. However, these higher prices are now resulting in a considerable slow-down of the number of homes sold over a year ago.

The San Diego Association of Realtors analyzes housing market date for San Diego county every month. Below is their monthly report. The figures represents ALL property types.

San Diego housing stats for December 2014

CLICK IMAGE TO ENLARGE

For more information on this topic:

619.384.2248
Ryan@RyanYourRealtor.com

San Diego Housing Market Forecast For 2015

With more available homes now on the market for sale, San Diego’s housing market is now seeing much fewer investors. There is now a return to traditional home buyers, as home sales rise modestly and prices stabilize in 2015, according to the CALIFORNIA ASSOCIATION OF REALTORS®’ (C.A.R.) “2015 California Housing Market Forecast.”

2015 Housing Market Forecast San DiegoThe annual C.A.R. forecast sees an increase in existing home sales of 5.8% in 2015, reaching 402,500 units. This is up from the projected 2014 sales figure of 380,500 homes sold.  Sales in 2014 were down 8.2% from the 414,300 single-family homes sold in 2013.

Strict lending standards and double-digit home price increases over the past two years have significantly impacted home affordability in San Diego. This has forced many home buyers to delay purchasing. Next year, home price gains should stabilize; allowing would-be buyers who have been saving for a down payment to be in a better position to make a home purchase. In addition, there are many loan programs available that don’t require the standard 20% down.

The average for 30-year fixed mortgage interest rates will rise only slightly to 4.5%, which is still at historically low levels.

The California median home price is forecasted to increase 5.2% to $478,700 in 2015, following a projected 11.8%increase in 2014 to $455,000.  This is the slowest rate of price appreciation in 4 years.

 

2015 CALIFORNIA HOUSING FORECAST

2011 2012 2013 2014p 2015f
SFH Resales (000s) 422.6 439.8 414.3 380.5 402.5
% Change 1.4% 4.1% -5.8% -8.2% 5.8%
Median Price ($000s) $286.0 $319.3 $407.2 $455.0 $478.7
% Change -6.2% 11.6% 27.5% 11.8% 5.2%
Housing Affordability Index 53% 51% 36% 30% 27%
30-Yr FRM 4.5% 3.7% 4.0% 4.3% 4.5%

p = projected
f = forecast

 

For more information on this topic:

619.384.2248
Ryan@RyanYourRealtor.com

Buying or Selling a Home in 2015? This is What You Need to Know!

We’ve had a boom, a bust, and finally a bounce. Housing is getting back to normal.

san diego housing market outlook for 2015Even though our economy is growing and mortgage rates will remain low—the 30-year fixed isn’t likely to pass 5%. As of this writing, rates are even below 4% again! Household income hasn’t changed in the last few years, while home prices are already about 20% higher on average (even more in San Diego). Lenders remain very cautious and are screening potential borrowers thoroughly before loaning out any money. 

Here’s what to do if you’re thinking about buying or selling a home in 2015.

Sellers-no more bidding wars. Yes, you still have leverage, but less than you did. In the summer of 2013, homes were selling at a premium to original list; this fall, the market cooled dramatically. The takeaway: You have to price your house right.  On the bright side, short sales and foreclosures have worked their way out of the market, so home sellers don’t have to compete with that.

Buyers-save in interest. The 30-year fixed mortgage rate is not expected to hit 5% until later in the year (then again, economists said that about this year too!), so the sooner the better to get the lowest rates. Of course, 15-year loans get be had for even a lower rate. With rates this low, it’s hard to think renting is a great option. Millennials continue to make up more than half of first-time home buyers. New home construction is also expected to increase 16% above 2014, giving buyers additional options.

Owners-renovate. Especially if you have a low-rate mortgage. Many times, it can be a lot cheaper to remodel than to move. If you need some cash, rates on home-equity loans and lines of credit are still low. Loans on HELOCs are a few points higher than a standard first mortgage.

 

For more information on this topic:

619.384.2248
Ryan@RyanYourRealtor.com

New 3% Down-Payment Loan!

Coming soon to a lender near you–a 3% down-payment conventional loan!

These two new Fannie Mae/Freddie Mac programs are designed to help crediNew 3% down-payment loan programt-worthy borrowers, particularly those with low or moderate incomes. They need to demonstrate the ability to repay a mortgage, but lack the money needed for at least a 5% down payment. The loans would be allowed only for fixed-rate mortgages on single-family homes. They would also need to be the borrower’s primary residence and would require full documentation of the ability to repay the mortgage.

Freddie Mac’s program is called Home Possible Advantage, and is open to anyone who meets certain requirements. First-time home buyers must participate in a home ownership education and counseling program. It is available to those who would like to refinance their loan as well. All participants will have to pay for private mortgage insurance (PMI), in addition to the mortgage payment.

The new loans will only granted to those who buy private mortgage insurance, have a credit score of at least 620, and offer full documentation of their income, their assets, and job status. Fannie Mae will start backing the loans as soon as December 13, while Freddie Mac will start offering them March 23.

3% down mortgage loanBefore this new program, a 5% down-payment was fairly standard for most lenders in California. A 5% down-payment  means coming up with about $22,500 to buy a median priced house of about $450K in San Diego, whereas 3% down is closer to $13,500.

There are some down payment assistance programs but most home buyers will need some cash to buy a home. People who already own a home often use the proceeds from the sale of that home for a down payment.

For those who are planning on buying that first home in 2015 now is a great time to start shopping for a mortgage!

 

For more information on this topic:

619.384.2248
Ryan@RyanYourRealtor.com

San Diego Housing Market Update – November 2014 Sales

Below is my monthly analysis of the San Diego housing market. It will show many different metrics to help us get an accurate “feel” for what is happening in our local real estate market!

Activity Snapshot:

One-year change in closed sales

One-year change in median sales price

One year change in homes for sale

-19.5%

+6.0%

-12.4%

Inventory levels (the number of homes on the market “actively” for sale) continues to stay strong. This San Diego housing market update shows san diego housing market updatethere are currently 6933 active residential listings in San Diego county, which continues in a downward trend. There were 7848 last month.

According to Bankrate.com, interest rates continue to trend lower compared to previous months. They are currently at 4.15% for a 30-year fixed loan. This is well below the historical average of 6% or so, which is great for home buyers. To calculate your potential mortgage payment or see what you can afford, go HERE.

Finally, as you will see on the chart below, prices are starting to take on a more normal pattern. There are much more modest changes than the previous year, with a 6.0% increase in median prices, compared to over 20% we saw in 2013. However, these higher prices are now resulting in a considerable slow-down of the number of homes sold over a year ago.

The San Diego Association of Realtors analyzes housing market date for San Diego county every month. Below is their monthly report. The figures represent all property types.

San Diego Housing Market update for November 2014

Click To Enlarge

For more information on this topic:

619.384.2248
Ryan@RyanYourRealtor.com

Steps to Buying a Home

If you are buying a home for the first time, buying a second home or considering investment property, taking some simple steps to protect your investment and financial health. No matter what type of property you’re eyeing, here are some basic precautions as you navigate the process of purchasing any home.

Before Shopping for Property:

Look at your finances. Before contacting a real estate agent and starting to look for a new home, steps to buying a home in san diegofigure out what you can afford. Taking a simple inventory of your wallet can help your understand your financial ability and speed up the mortgage pre-approval process. A mortgage affordability calculator can help with this.

Know your credit card limits and review your usage to prevent loan approval issues. According to Equifax, the closer you get to using all your available credit, the less likely you are to have a good credit score or seem like a low-risk mortgage candidate to a potential lender.

Start with financing. Obtaining pre-approval for a loan will make the process of negotiation and loan approval process smoother from the start. Most sellers may even require you to be pre-approved before they accept an offer anyway, so doing this step ahead of time is a no-brainer.

Find a real estate agent. The seller is the one who pays the commission to both agents, so there’s no reason not to get the professional guidance of an agent. Look for a professional who is both familiar with the local area you’re considering and its property values. A good agent will also be well versed in the laws, timelines and deadlines in your state. This can be the difference between losing your dream home, deposit, and time.

Before Making an Offer:

Visit the city/county planning department. There one in every city and county. If the home you’re interested in is within city limits, you should visit the city planning department. Homes in rural unincorporated areas will normally fall under the control of county planning departments. The planning department can present any permits for the home you are interested in, and investigate that neighborhood. You can learn about what building applications are in the works (more homes, commercial buildings, industrial parks) and which schools your children would attend (it’s not always the school nearest your prospective home). There will also be information on traffic, crime reports (which can affect auto insurance prices), and more.

Review past utility bills. The monthly mortgage payment isn’t your only expense. Ask to review past utility bills before putting in a purchase offer to understand how heating and cooling the house will affect your finances.

During the Negotiation Process

Read the contract. When you’re ready to submit a purchase offer, your real estate agent should review the purchase contract with you. If the agent moves through it too quickly, ask to get an explanation of every paragraph (or at least the most important parts) of the contract. Have your Realtor explain in detail the circumstances in which your deposit can be withheld or kept, the contingency periods, and buyer expenses.

Ask for exact dates. Your contract might state you have 17 days to perform your inspections or 30 days to fulfill all contingencies. Ask your Realtor for the exact dates, not just the number of days, to make sure you don’t miss any important deadlines. This will also tell you when you’re supposed to receive various documents and reports.

get it in writing steps to purchasing a homeGet it in writing. If you negotiate any extras (the seller will leave various furniture or appliances, you can move into the house the day before closing, etc.) make sure that they’re documented in writing and that all parties sign off on these items.

Have a home inspection. Home inspections can spare you from a purchasing a unknown “fixer.” Have an inspection, even if the property appears to be in great condition or is relatively new. Without catching problems during the inspection period, any potential for negotiation with the seller will be lost.

The Bottom Line:

Don’t do it alone. Purchasing real estate is a large financial investment. Having the right professionals on your side, along with some common sense, can spare you costly mistakes.

 

For more information on this topic:

619.384.2248
Ryan@RyanYourRealtor.com
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