Ryan Blanco San Diego real estate agent

San Diego Housing Market Update-February 2017 Sales

San Diego Housing market update for home salesBelow 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!

The start of the year ushered in a wave of good news about a hot stock market, higher wages and an active home sales environment. At the same time, housing prices have continued to rise, and the low inventory situation and affordability crunch has been particularly hard on first-time buyers struggling to get into the market. Nevertheless, buyer activity is easily outpacing seller activity in much of the country, culminating in relatively quick sales and low supply. Demand definitely remained strong this month.

Activity Snapshot:

One-year change in closed sales

One-year change in median sales price

One-year change in homes for sale

-5.6%

+7.8%

-31.2%

Closed Sales decreased 0.8 percent for Detached homes and 14.1 percent for Attached homes. Pending Sales increased 1.5 percent for Detached homes and 0.2 percent for Attached homes. Inventory decreased 29.9 percent for Detached homes and 34.7 percent for Attached homes.

The Median Sales Price was up 7.9 percent to $565,000 for Detached homes and 10.0 percent to $385,000 for Attached homes. Days on Market decreased 13.6 percent for Detached homes and 17.1 percent for Attached homes. Supply decreased 29.2 percent for Detached homes and 38.9 percent for Attached homes.

Unemployment has reached pre-recession levels, and Americans remain optimistic about finding quality employment. This matters because job growth and higher paychecks fuel home purchases. Unfortunately, that won’t matter for potential buyers if price appreciation outpaces income growth and if mortgage rates continue their upward trend. Sellers are getting a generous number of offers in this market. The worry for sellers then becomes that there will not be a generous number of homes to choose from when they become buyers.

According to Bankrate.com, interest rates have continued to stay near the 4% level, despite the Federal Reserve Bank finally raising the fed funds rate to .75%. They are currently at 4.11% for a 30-year fixed loan (they were at 4.02% at this time last month). 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.

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

San Diego Housing Market Stats February 2017

CLICK TO ENLARGE IMAGE

For more information on this topic:

619.384.2248
Ryan@RyanYourRealtor.com

 

5 Home Improvements To AVOID When Selling

Everyone wants to make the home you own more comfortable and functional for your household. But before you put in a hot tub or convert the garage into a bedroom, think about whether or not these improvements will add or subtract perceived value from your the home when it comes time to sell. Upgrading your home is great, but there are some home improvement to avoid as well.

Yes, selling your home could be years away, however not all home improvements are welcome to buyers. When buyers are ready to buy, they tour multiple homes which can be confusing. So, they distinguish what they’ve seen by features like “the one with the beautiful kitchen,” or “the one with the ugly wallpapered bathroom.” You don’t want your home to be the one they poke fun at.

Here are just a few items that are undesirable to most buyers:outdated finishes for home buyers in san diego

1. Outdated finishes. It doesn’t matter if you paint your walls the hottest colors if buyers look up and see popcorn ceilings and wobbly ceiling fans. If you’re going to improve a room, update everything, even the power outlets and light switches. Be very careful with wallpaper which is very personal and can be polarizing to buyers. What about carpet? Most buyers want wood floors today because they look great and are easy to clean.

2. Awkward spaces. Have you seen the commercial where the family remodels the kitchen and borrows space from the college-age son’s bedroom, turning his room into little more than a closet? Knock out or move walls where you need to, but not if it makes other rooms virtually unusable.

3. Conversions. Beware of changing the intended function of a room. Transforming the dining room to a media room may make sense for your family, but where will your buyers eat dinner? And while we’re on the subject, converting studies into bedrooms isn’t good. Without closets and adjoining bathrooms, they aren’t really bedrooms anyway.

Don't do these DYI before selling your home4. Bad add-ons. Not having enough space is bad, but even worse is adding on space that looks stuck to the original house with glue. If you’re going to add on to your home, make sure it looks as natural and professional as possible, with the same quality finishes as the rest of the home.

5. Expensive-to-maintain luxuries. Swimming pools, hot tubs, koi ponds, fountains, and putting greens can make backyards a paradise, but they’re costly to keep up. Installing lush landscaping that has to be maintained  constantly to keep its shape is a great weekend hobby, but for potential buyers, less is more. Hobbies are fine, but make sure you can take them with you when you move.

So go ahead and paint your den after your favorite football team’s colors like yellow and blue, but when it comes time to sell, transform your home for the next buyer. Put it in pristine clean condition, and restore paints and finishes to more neutral shades. And keep remember this: If it’s expensive to add or install, it’s probably expensive to remove as well.

 

For more information on this topic:

619.384.2248
Ryan@RyanYourRealtor.com

Why A Great Home Inspector Is So Important

san-diego-home-inspection-importantOver the years, I have been a part of lot of home inspections with home buyers. Doing this teaches me a lot about homes and what things to look out for. I often see and point out problem areas to home buyers and sellers, but I add that a qualified professional should have a look.

There is a big difference between a good inspector and a bad one. The good home inspectors have some experience, the really great one have a lot of experience. Great inspectors take pictures of various items to put in their report. They describe what the picture is about and how the item should be addressed. Each home and each inspection is a little different and each experience teaches us something new.

The best home inspectors are able to anticipate and recommend future repairs and maintenance, along with estimating costs. They can tell the potential buyer a lot about the home and how it has been previously used and cared for. A home buyer’s inspection should not be just about finding problem areas, but also being educational so that the buyer(s) understand what they are buying. Home inspections also serve as a bargaining chip when it comes to asking for seller-paid repairs.

To be honest, I don’t always have a lot of faith in the home inspection franchise companies. I tend to have the best luck with the self employed small inspection company inspectors. Perhaps since they own their own business, they always to do a great job in keeping their clients happy. This is unlike an inspector having their franchise to fall back on. One of the best ways to find a good home inspector is to ask friends and family who have recently purchased homes, online review sites, or by asking a local real estate agent.

 

For more information on this topic:
619.384.2248
Ryan@RyanYourRealtor.com
Visit my Website: http://ryanyourrealtor.com

 

Making An Offer On A Home

Your strategy for making an offer on a home, and handling the follow-up negotiations, can depend on several factors. These include the sales prices of comparable homes in the area, the favorability of the market for home buyers, the number of other people bidding on the home, as well as the overall condition of the home.

California real estate purchase offerBefore you start negotiating, set a firm ceiling on what you are willing to pay (or can afford). That will help you keep your cool if you become caught up in a bidding war or in a series of counteroffers. Shop for homes below your maximum price, just in case you have to pay more than the seller’s asking price. In a buyer’s market, when sales are slow, you can get away with looking at places higher than your budget a bit. Sellers are more willing to negotiate a lower price, along with other concessions.

 A real estate agent can provide recently sold property prices in the area , as well as prices of comparable homes currently on the market. Making a low-ball offer can sometimes pay off in a buyers market, but you have to feel out the market and the individual seller’s situation. However, some sellers can just as easily dismiss you for undervaluing their home and not even wanting to send you a counteroffer.

You’re going to have to put up some earnest money into escrow, typically 1% to 2% of the purchase price in San Diego. The more you put down, the better your chances…since it suggests you’re a more serious buyer. The earnest money in the end becomes part of your down payment, so it doesn’t add to your out-of-pocket cash to buy the house.

Of course, if you are lucky enough to be paying with all-cash, you will have an edge over other buyers. If you’re financing the purchase, your best move is to get a pre-approval letter from a bank, which will be sent in with your offer. Without this letter, you will be overlooked by most every seller.

If the home sellers won’t come down to a price you like, you might ask them to cover a portion of your closing costs. If you’re flexible about the closing date, offering the owners a rent-back period can be smart, since they can live in the home for a given period after the closing. If you want to make an emotional appeal to the owners, you could write them a letter describing how much you love and why you want the home. For some homeowners, it’s not just about the money, it’s about selling it to a great individual or growing family.

After the home inspection, you may find that the home needs repairs. At this point, you can ask for certain repairs to be done, or a credit back at closing. Most sellers are willing to oblige with repairs (such as a broken garbage disposal), but not upgrades (such as replacing all the plumbing, simply because it’s old).

 

For more information on this topic:

619.384.2248
Ryan@RyanYourRealtor.com

San Diego Housing Market Update-January 2017 Sales

San Diego Housing market update for home salesBelow 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!

January brings out a rejuvenated crop of buyers with a renewed enthusiasm in a new calendar year. Sales totals may still inevitably start slow in the first half of the year due to ongoing inventory concerns. Continued declines in the number of homes available for sale may push out potential buyers who simply cannot compete for homes selling at higher price points in a low number of days, especially if mortgage rates continue to increase.

Activity Snapshot:

One-year change in closed sales

One-year change in median sales price

One-year change in homes for sale

-1.8%

+7.4%

-26.8%

Closed Sales decreased 0.7 percent for Detached homes and 3.7 percent for Attached homes. Pending Sales increased 14.2 percent for Detached homes and 3.6 percent for Attached homes. Inventory decreased 24.3 percent for Detached homes and 33.2 percent for Attached homes.

The Median Sales Price was up 5.6 percent to $559,500 for Detached homes and 7.8 percent to $378,750 for Attached homes. Days on Market decreased 2.3 percent for Detached homes and 22.0 percent for Attached homes. Supply decreased 26.1 percent for Detached homes and 35.3 percent for Attached homes.

In case you missed it, we have a new U.S. president. In his first hour in office, the .25 percentage point rate cut for loans backed by the Federal Housing Administration (FHA) was removed, setting the table for what should be an interesting presidential term for real estate policy. FHA loans tend to be a favorable option for those with limited financial resources. On a brighter note, wages are on the uptick for many Americans, while unemployment rates have remained stable and relatively unchanged for several months. The system is ripe for more home purchasing if there are more homes available to sell.

According to Bankrate.com, interest rates have continued to stay near the 4% level, despite the Federal Reserve Bank finally raising the fed funds rate to .75%. They are currently at 4.02% for a 30-year fixed loan (they were also 4.02% at this time last month). 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.

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

San Diego Housing Market figures for January 2017

CLICK IMAGE TO ENLARGE

For more information on this topic:

619.384.2248
Ryan@RyanYourRealtor.com

 

4 Myths About Buying A Home

Myths Of Buying A Home

So you’re in the market for buying a home. It’s both, an exciting time and a scary time. All that money you have saved is about to be spent, for the intended purpose, of course! You have spent countless hours consulting various blogs and other how-to resources arming yourself with the most prudent and up-to-date information. Most likely you have come across many do’s and don’ts when it comes to buying a home, below are four common myths that I would like to debunk.

1. A more substantial down payment is always better

Image result for stack of moneyCommon perception says this is a no-brainer. The more you put down now, the less you will pay over time. This is finance 101! While this is true; why use your entire safety net? Down-payments of 3.5% have become immensely popular in recent years. With the proliferation of mortgage insurance borrowers may be able to get lower interest rates than those who put down 20% or more. However the primary reason why putting less money down is due to the benefit of having flexibility. By not having your entire portfolio tied up in your home, you have allowed yourself a safety net in case of emergency such as job loss, home repairs, injury, or family accident. In addition, you may reallocate that money into other endeavors such as financial instruments where even novice investors can turn an 8% yearly profit.

2. Homes in the Suburbs are more worth more

Developers love the suburbs because the land is generally cheaper and therefore you get more home for your money. The homes are also often brand new and attractive. Where you get hurt is buy the “hidden costs.” For instance, in the suburbs you generally live further from your job, schools, transportation centers, and entertainment venues. The “savings,” from your cheaper home, are often lost due to the high transportation costs. For instance, take the average communing cost/month for a standard American car:

$210 for 10 milesImage result for homes in suburbs san diego

$389 for 30 miles

$549 for 50 miles

$848 for 100 miles

This does not include parking nor does it include weekend excursions. The average American spends over 100 hours per year commuting! That is pretty much 2 weeks’ worth of work time that you could spend doing activities that are much more enjoyable than commuting.

3. A 30 year fixed mortgage is always the way to go

This is only true if you plan on staying in your current residence for more than 10 years. If you intend on moving  in the next 5-10 years a fixed rate for 10 years would be much more appropriate. This is because, typically the longer your rate, the higher your interest rate will be and hence you would be paying a greater sum of money for absolutely nothing in return. Nowadays, people tend to change jobs more frequently and thus, locations as well. Therefore there is little sense in a 30 year fixed rate if you are young and plan on moving anytime in the future.

4. You should pay down your mortgage as fast as possible

This thinking was formed largely in the 1980’s when many people had double digit rates. Now rates are lower than ever so you should not be in panic mode from the lifetime value of the rate. Instead you should look at the opportunity costs of doing so. Having flexibility could be much more important than penny pinching just to pay off your mortgage. For instance, you could redirect that money towards a different endeavor such as starting your own business, investing in the stock market, or making an additional real estate venture.

 

For more information on this topic:

619.384.2248
Ryan@RyanYourRealtor.com
 
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