Ryan Blanco San Diego real estate agent

Here’s Why Your Should Buy Or Sell A Home Now!

San Diego homeowners who’ve wanted to sell have loved the recent news of rising home prices (up around 20% from a year ago), easier lending terms for buyers and general economic improvement that encourages house hunting. But will rising interest rates can undercut home prices?

Like buyers, sellers need to get a move on before rising rates make buying a home more expensive. Sellers should be careful not to wait too long. Rising mortgage rates are hardly a crisis, as they’re still low by historical standards, but prospective sellers should keep the rate and price relationship in mind as they plot their strategies.

Historical Mortgage Rates

Historical Mortgage Rates

Unfortunately, it’s impossible to say the exact effect on prices of a 1, 2 or 3 percentage point rise in mortgage rates, as so many factors affect home values. But the principle is simple enough: Rising rates make monthly payments bigger, reducing the maximum buyers can spend. That, inevitably, affects prices to some degree.

Rising rates, of course, also have a psychological effect, causing some buyers to wait for rates to come down and making others give up the search altogether. Others may think they better “hurry up and buy” before rates go even higher. Recent data and trends suggest buyers are pulling back a bit now, disturbed by recent rate increases. But in coming months, many may change their minds, realizing that even if they missed the cheapest deals, rates are still low — and lower than they’re likely to be in a year.

This Mortgage Calculator can help you see the relationship between prices and interest rates.

Here is an example: A person with a $4,000 monthly income could afford a monthly payment no higher than $805. That would support a $134,267 mortgage at a 6% rate. Change the rate to 4.5%, about today’s level for the 30-year fixed-rate loan, and the maximum mortgage jumps to $158,876.

So, if rates were to rise from today’s 4.5% to 6%, a historical average rate, this buyer would have $24,609 less to spend. Looked at another way, a 1.5 point increase in mortgage rate would reduce this buyer’s buying power by about 18%.Mortgage-Interest-Rates-Round-Up-for-Saturday-August-101

If that seems surprising, note that raising the rate to 6% from 4.5% is a 33% increase, producing a much larger monthly payment for a given loan size.

As mentioned, this just illustrates the principle, and it doesn’t mean home prices would fall 18% if mortgage rates rise. For one thing, a seller needs only one buyer, and there may be plenty of others who can afford the home even with higher rates. After all, not every buyer applies for the biggest loan that would be permitted. Those planning to spend less than the maximum may still be able to afford the home with the higher payment.

Today, the would-be seller should be on the lookout for a sweet spot in market conditions. That will be the point at which home prices have gone up from today’s level, but mortgage rates remain low enough to bring lots of buyers into the market.

If price gains start to level off (which it seems like they are in the San Diego market), the seller should probably get the home on the market quickly, or rising rates could shave the sales price.

For more information on this topic:

619.384.2248
Ryan@RyanYourRealtor.com
Visit my Website: http://ryanyourrealtor.com

Central San Diego Housing Market Update-July 2013

For the first time in over a year, pricing is taking a breather, as the month of July drew to a close. It is still a very strong seller’s market, while buyers (including cash investors) continued bidding wars on listed properties. However, the skyrocketing home prices may be peaking, with the average sale price finally slipping over the previous month. Our 20% year-over-year price increase also slipped to a 17% increase. To get the latest figures, I ran an analysis of home figures from the MLS for the central San Diego region. This includes communities such as Mission Valley, Serra Mesa, University Heights, Normal Heights, Hillcrest, Mission Hills,  Bay Park, and Clairemont. The numbers include both condo/townhomes as well as single-family homes.

 

Housing Figures-Central San Diego

Date Number of Sales Ave Sale Price Ave Price/Square Ft. Ave Days on Market
July 2013  239 $447K $353 29
June 2013 247 $505K $366 29
July 2012 231 $371 $290 69

san diego housing market updatePrices continued to rise in San Diego (now 17% year-over-year), while inventory seems to finally be catching up with demand. With nearly 6000 active properties for sale in San Diego County, we were close to 4000 earlier this year. Properties newly for sale also continued to sell very rapidly, with only 29 days on market.

For more information on this topic:

619.384.2248
Ryan@RyanYourRealtor.com
Visit my Website: http://ryanyourrealtor.com

The All-Important Home Inspection

For San Diego home buyers, finding the right home can be an exciting time.  So exciting that sometimes home buyers forget some essential steps.  One of the most important steps in the whole home buying process is the home inspection. This is especially important in the case of purchasing an older home. A great majority of homes in Southern California were built in the 1950’s. Many still have original plumbing and electrical systems that likely have issues. Of course, your home inspector can guide you to separate the minor issues from the costly, major ones.

Before the sale is closed and the deed transferred, it’s highly recommended to have a professional inspection done anytime you purchase a home. A full report can be completed in about two hours and will leave you with peace of mind and an awareness of potential issues in your future home. You may even choose to have a professional licensed in asbestos, lead, chemicals, pool/spa, roof, mold, mildew, or pests inspect the home, too, to notify you of any unknown dangers.

Home inspections typically cover the following:

  • Walls
  • Ceilings
  • Floors
  • Roof
  • Windows
  • Plumbing
  • Electrical
  • Water supply and pressure
  • Gas lines

Landscaping, walkways and driveways will also be evaluated.  An inspector will note grading and drainage.  Any exposed general framing in beams, attics, roofing, HVAC and plumbing systems will be inspected, as well. Generally speaking the age and condition of roofing materials, plumbing and rain gutters will be noted, too, giving you an idea of your home’s maintenance history. Water heaters, fireplaces and the sprinkler systems, if applicable, should also be evaluated, as should appliances, alarms, and smoke detectors being left in the home to ensure a safe move-in.

For more information on this topic:

619.384.2248
Ryan@RyanYourRealtor.com
Visit my Website: http://ryanyourrealtor.com

New Listing-Beautiful Mira Mesa Condo

10855 Camino Ruiz #48

$280,000

San Diego, 92126

2 Beds, 2 Baths

Just Listed-Remodeled Mira Mesa Condo

 

Totally remodeled and move in ready 2nd story end unit condo! Standard sale. Beautifully remodeled kitchen with stainless steel appliances, granite counter-tops, and custom cabinets. No details were missed, including dual pane windows, recessed lighting, crown molding, new doors, carpet and paint. The master bath features dual vessel sinks and a custom vanity. The balcony overlooks a greenbelt area. Includes washer/dryer hookups. The complex features a pool to cool off on those hot summer days and a hot tub. Located within walking distance to shops and restaurants. This unit is completely turn-key, shows beautifully, and is sure to please! Sorry, complex is not FHA/VA approved.

Upgrades to consider before Selling your Home

     Looking to sell your San Diego home? What sort of repairs or upgrades are worth considering? According to this year’s Cost vs. Value Report, real estate professionals ranked exterior improvement projects as the clear winners. They not only won buyers over, but provided sellers with the most return on investment.
     The best rule of thumb when it comes to home improvement is “curb appeal.” When buyers are shopping for a home, the exterior can make (or break) the first impression. According to the 2013 Cost vs. Value Report, exterior replacement projects are among the most valuable home improvements that sellers can currently invest in, starting with the front door.

     A steel entry door topped this year’s survey with an estimated 85.6 percent of the costs recouped at resale. The steel door replacement is also the least expensive of the 35 midrange and upscale remodeling projects included in the survey, costing $1,137 on average.

This is the 15th year that Remodeling magazine — in cooperation with REALTOR® Magazine. Exterior projects dominated the list with six of the top 10 most cost-effective midrange projects and eight of the top 10 upscale projects.ine — has released the Cost vs. Value Report. This year’s survey included more than 3,900 appraisers, sales agents, and brokers across the country who provided their opinions and estimates.

Because this is a national survey, many of the items listed below aren’t popular here in San Diego (fiber-cement siding, for example). Note that most of the items listed are focused on the outside of the home.

Top 10 Midrange Projects

1. Entry Door Replacement (steel) 
Job Cost: $1,137
Resale Value: $974
Cost Recouped: 85.6 percent

2. Deck Addition (wood)
Job Cost: $9,327
Resale Value: $7,213
Cost Recouped: 77.3 percent

3. Garage Door Replacement 
Job Cost: $1,496
Resale Value: $1,132
Cost Recouped: 75.7 percent

4. Minor Kitchen Remodel 
Job Cost: $18,527
Resale Value: $13,977
Cost Recouped: 75.4 percent

5. Window Replacement (wood)
Job Cost: $10,708
Resale Value: $7,852
Cost Recouped: 73.3 percent

(tie) 6. Attic Bedroom Addition 
Job Cost: $47,919
Resale Value: $34,916
Cost Recouped: 72.9 percent

(tie) 6. Siding Replacement (vinyl) 
Job Cost: $11,192
Resale Value: $8,154
Cost Recouped: 72.9 percent

7. Window Replacement (vinyl)
Job Cost: $9,770
Resale Value: $6,961
Cost Recouped: 71.2 percent

8. Basement Remodel 
Job Cost: $61,303
Resale Value: $43,095
Cost Recouped: 70.3 percent

9. Major Kitchen Remodel 
Job Cost: $53,931
Resale Value: $37,139
Cost Recouped: 68.9 percent

10. Deck Addition (composite) 
Job Cost: $15,084
Resale Value: $10,184
Cost Recouped: 67.5 percent

Top 10 Upscale Projects

1. Siding Replacement (fiber-cement)
Job Cost: $13,083
Resale Value: $10,379
Cost Recouped: 79.3 percent

2. Garage Door Replacement
Job Cost: $2,720
Resale Value: $2,046
Cost Recouped: 75.2 percent

3. Siding Replacement (foam-backed vinyl)
Job Cost: $13,818
Resale Value: $9,926
Cost Recouped: 71.8 percent

4. Window Replacement (vinyl)
Job Cost: $13,055
Resale Value: $9,295
Cost Recouped: 71.2 percent

5. Window Replacement (wood)
Job Cost: $16,361
Resale Value: $11,194
Cost Recouped: 68.4 percent

6. Grand Entrance (fiberglass)
Job Cost: $7,088
Resale Value: $4,528
Cost Recouped: 63.9 percent

7. Deck Addition (composite)
Job Cost: $34,403
Resale Value: $20,532
Cost Recouped: 59.7 percent

8. Major Kitchen Remodel
Job Cost: $107,406
Resale Value: $64,113
Cost Recouped: 59.7 percent

9. Bathroom Remodel
Job Cost: $50,007
Resale Value: $29,162
Cost Recouped: 58.3 percent

10. Roofing Replacement
Job Cost: $33,880
Resale Value: $19,194
Cost Recouped: 56.7 percent

*Source: Remodeling Magazine

For more information on this topic:

619.384.2248
Ryan@RyanYourRealtor.com
Visit my Website: http://ryanyourrealtor.com

Central San Diego Housing Market Update-June 2013

Current housing market trends in San Diego continued as the month of June drew to a close. It is still a very strong seller’s market, while buyers (including cash investors) continued bidding wars on listed properties. I ran an analysis of home figures from the MLS for the central San Diego region. This includes communities such as Mission Valley, Serra Mesa, University Heights, Normal Heights, Hillcrest, Mission Hills,  Bay Park, and Clairemont. The numbers include both condo/townhomes as well as single-family homes.

 

Housing Figures-Central San Diego

Date Number of Sales Ave Sale Price Ave Price/Square Ft. Ave Days on Market
June 2013  247 $505K $366 29
May 2013 186 $468K $349 31
June 2012 224 $403 $299 60

san diego housing market updatePrices continued to rise in San Diego (over 20% year-over-year), while inventory tightened. Properties newly for sale also continued to sell very rapidly, with only 30 days on market.

As the supply of homes shrinks,  there continues to be more situations where many buyers are making offers on the same home. Talking to anyone trying to buy a home right now, they will tell you that new homes hitting the market cause a frenzy of home buyer interest.  I have many buyers who have put in offers on a lot of  homes, but are getting frustrated because of the stiff competition. And if prices continue to rise at their current rate in San Diego, that could lead us back into a situation where we’re becoming overpriced quickly.

For more information on this topic:

619.384.2248
Ryan@RyanYourRealtor.com
Visit my Website: http://ryanyourrealtor.com
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