Ryan Blanco San Diego real estate agent

Will Rising Interest Rates Affect the Housing Recovery?

Interest rates are now close to 4%, still historically low, but nearly two-thirds of a percentage point higher than last month. This is coming with the anticipation that the Federal Reserve could start scaling back its generous bond-buying program. The mortgage market is closely watching the central bank’s moves, which could shoot rates even higher. Some analysts are saying that rates will never by that low again.

Interest rates have been rising since early May 2013

Interest rates have been rising since early May 2013

The biggest threat to the recovery is that rates rise too fast. When rates rise, it takes away buyer’s buying power. For example, a buyer  is pre-approved for a $500,000 loan at a generous 3.5%.  Once interest rates rise to 4%, that same buyer can now only be pre-approved for a $475,000 loan. Either way,  monthly payments to the buyer will be the same. To put it another way, if rates rise a full 1%, homes are 10% more expensive for buyers.

Home buyers in San Diego have found listings in their budget are often snapped up within days. There is no time to “go home and ponder.” If you like it, you need to act fast.

San Diego has seen an increase of around 20% in the past year for home prices.  With buyers now starting to have less buying power, it’s bound to have a cooling effect on the rapidly increasing home prices we’ve been seeing.

 

 

 

For more information on this topic:

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

Mortgage Rates Climb for the 5th Week Straight

Mortgage Rates on a rapid climb over the past few weeks

Mortgage Rates on a rapid climb over the past few weeks

San Diego home buyers will be paying more on their new mortgages. According to Freddie Mac, the 30-year fixed-rate mortgage averaged 3.91% in the week ending June 6, up from 3.81% the prior week. That’s the fifth week in a row of gains. This comes at a time when the Federal Reserve might be slowing the rate of bond purchases. The 15-year fixed-rate mortgage rose above 3% for the first time in over a year, climbing to 3.03% from 2.98%.

 

 

For more information on this topic:

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

Central San Diego Housing Market Update-May 2013

 

Current housing market trends in San Diego continued as the month of May 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
May 2013 186 $468K $349 31
April 2013 220 $462K $342 46
May 2012 265 $373K $288 67

These figures above speak for themselves. Prices continued to rise in San Diego(over 20% year-over-year), while inventory tightened. Properties hitting the market also continued to sell very rapidly.
san diego housing market updateAs 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

Should I Fix the Roof Before Selling?

Home sellers often wonder what sort of repairs or upgrades should be done before putting their home on the market. When it comes to a home, one of the biggest expenses people worry about (and with good reason) is the roof. Roofs are a home’s number one defense against the elements. Not only are they very expensive, but leaky roofs can be the culprit of water damage, mold, and a host other problems. A new roof is often worth a lot to potential buyers, because it puts their minds at ease about any looming future problems.

sell home fast san diegoIn general, roofs last about 25-30 years (longer for tile). If you are about to sell, should you replace the roof? That depends on the situation, so the first step is to get roofing contractor to look at it. The inspector can examine the roof and let you know what may be needed so that you can make an informed choice. Having your own inspection also prepares you for what the buyer’s inspector may recommend.

If the inspector determines that a new roof is needed, a few key questions can help you arrive at a decision on whether to replace it.

1. Do you own the home outright? Your decision about replacing the roof may depend on whether you are looking to get a lot of money for the home. If you already own the home, you may not need as much of a return as someone who has a large mortgage and still hopes to leave with some cash in pocket.

2. Can you afford the cost, or will you need a home-equity loan? A home-equity loan can be used to make repairs, but that loan will also need to be satisfied when the house is sold.

3. What is the housing market like? At least for now, the San Diego housing market is hot enough that your home will likely receive multiple offers. Examine whether there are other homes for sale in the area that are priced in your range and, if so, what condition they are in. In a sellers market like this one, sellers are in control and don’t need to do much (if any) repairs such as a roof. Of course, when the market eventually turns,  a major incentive to potential buyers is a new or repaired roof.

4. Will leaving the roof as is have a negative impact? Is it necessary to put a new roof on the property to prevent other damage to the home? If you have already seen leaking, you must act immediately. It may be hard for the buyer to get a mortgage if the roof is in bad shape.

If you aren’t interested in replacing the roof, you could investigate a partial repair to address immediate problems. Another option is to offer buyers a lower price or credit that factors in the potential cost of the roof. Some buyers may be more interested in replacing the roof themselves. This can also be good for a seller because it reduces their liability, should the roofing company do a sub-par job.

 

For more information on this topic:

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