Tag Archives: home buyer

Home Buyers, Home Loans, Homeownership, Housing Appreciation, Housing Market, Interest Rates, Mortgage

Expect Increases in Mortgage Rates and Housing Prices

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crystal ballThe two most frequently quoted constants in life are death and taxes.  Two more things would-be homeowners can expect in the near future are increases in mortgage rates and housing prices.

Interest rates have been kept artificially low for several years by the Federal Reserve in an effort to strengthen the economy. Policy is shifting to allow them to seek their own natural level and that will surely result in higher mortgage rates.  Rates on 30 year fixed mortgages are up over 1% from January, 2013.

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Home Buyers, Home Sellers, Homeowners, Homeownership, Housing Appreciation, Housing Market, Market Statistics, News

Housing Statistics Report for San Diego County and North San Diego County December 2013

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In November we continued to see a slow down in appreciation coupled with a tightening of inventory. This resulted in a decrease in prices compared to October, but still gave us increases in year-over pricing for single family detached homes in the North County area at 11 percent and outside of North County at almost 15 percent.

Prices of attached homes fared even better in North County with a 10 percent increase over the previous month and 30 percent compared to November 2012.

Continue reading Housing Statistics Report for San Diego County and North San Diego County December 2013 →

Home Buyers, Home Improvement, Home Sellers, Homeowners, Homeownership, Housing Market, News, Remodeling

The Most Wanted List

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According to a recent survey, these are the features buyers most want in a new home.

According to a recent survey, these are the features buyers most want in a new home.

Home Buyers, Home Sellers, Homeowners, Homeownership, Housing Appreciation, Housing Market, Market Statistics, News

Housing Statistics Report for San Diego County and North San Diego County November 2013

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As often happens at this time of year, we’re seeing a tightening of inventory but also a slowing down in appreciation. If you are looking to buy a home right now, you won’t have as many choices, but there isn’t quite as much pressure on home prices. In spite of this, we are still seeing year-over median price increases for single family detached homes at 19 percent in San Diego County. Click on the links below the snapshot to read the full housing statistics reports.

Continue reading Housing Statistics Report for San Diego County and North San Diego County November 2013 →

Home Buyers, Home Loans, Homeownership, Housing Appreciation, Housing Market, Market Statistics, Mortgage

It Can’t Hurt to Wait, Can It?

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Wait signIt’s been said that more money has been lost due to indecision than was ever lost because of a bad decision. Regardless of whether you agree with the statement, delaying the decision to buy in today’s market is going to cost the buyer more. 

Home prices have gone up considerably in almost every market in the country in the past year and while inventories are beginning to grow, prices are expected to continue to rise. Mortgage rates jumped 1% from the beginning of May to now. They could easily reach 5% by the end of the year and continue to rise in 2014.

Many of the financial experts in the country believe that the economy will not be strong until rates are in the 7% area.

The two components that move the cost of housing are price and mortgage rates. Escalation of either one will have an affect but when both are going up simultaneously, it is dramatic. It can literally eliminate buyers who could have purchased earlier.

The following example shows what would happen to the payments on a $200,000 home if the price were to go up 3% at the same time that the mortgage rates went up 1%. Not only would the payments go up by $150.81 per month, the price of the home would be $6,000 more. Even though the down payment may not change much, the new owner would have to borrow more money. By not acting, it is costing them more in price and payment. The loss of the appreciation would have been equity had they purchased prior to the rise in price. With the median price of a detached home in San Diego County coming in at $429,750 as of last month, a 3% price increase would cost the buyer even more.

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Check out the Cost of Waiting to Buy to see what the effect will be using your own projections.

Home Buyers, Home Sellers, Homeowners, Housing Market, Market Statistics

Housing Statistics Report for San Diego County and North San Diego County July 2013

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Prices continue to increase, and inventory is still tight in North County and San Diego County as a whole. Here is a snapshot of the June housing reports with links to both the full statistics for San Diego County and North San Diego County.

  • The median price for all North County home sales – attached and detached – increased to  $495,000 in June 2013 compared to $485,000 in May 2013.
  • Detached homes in North County rose 1.71 percent in June 2013 to $565,000 compared to $555,500 in May 2013. June 2013 was the highest reported SFD median prices in North County since January 2008.
  • Year-over median SFD price in North San Diego County jumped 20.21 percent, compared to $470,000 reported in June 2012.
  • The countywide median SFD price increased 2.32 percent to $429,750 in June 2013 compared to $420,000 in May 2013.
  • Year-over non-North County median price jumped 23.49 percent compared to $348,000 in June 2012, a 15-month trend of year-over median price increases.
  • The number of North San Diego SFD listings (active and contingent) rose 5.97 percent in June 2013 compared to May 2013.
  • The number of sold North San Diego County SFD units decreased 5.76 percent in June 2013 compared to May 2013. Year-over sold SFD units decreased 0.88 percent compared to June 2012.
  • Median days-on-market for single-family detached homes sold in North County increased to 19 days in June 2013 compared to 18 days in May 2013.
  • The HomeDex affordability percentage for all homes in North San Diego County remained at 34 percent in June 2013.

JULY 2013 FULL County HomeDex Report

JULY 2013 NORTH COUNTY HomeDex Report

Information taken from HomeDex™ Copyright © 2012 by the North San Diego County Association of Realtors (NSDCAR). Used by permission.

Home Buyers, Home Loans, Housing Market, Market Statistics

When Rates Go Up

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FreddieMac PMMS 2013.pngRising interest rates are great if you are renewing a certificate of deposit but not so much when you’re borrowing money. With interest rates on the rise as well as home prices, housing affordability is a concern for would-be homeowners.

A rough rule of thumb is that a person’s or family’s housing should not exceed 28% of their monthly gross income. While rental rates and home prices have been consistently increasing, mortgage rates have been soaring in the past month. In one week, according to the Freddie Mac Primary Mortgage Market Survey, they jumped by .5%.

This means that people have to pay a larger percentage of their income for housing unless their incomes have been increasing at an equal pace.  A $200,000 mortgage would be over $100 more per month if closed in July compared to closing at the interest rates available in January of 2013.

If rates increase by .5% by the time you close on the same size mortgage, payments would increase by almost $60 per month. In order to keep the payments the same, a borrower would have to put an additional $11,000 down to lower the mortgage amount. 

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Check out how your payment would be affected if interest rates continue to rise.

Although The National Association of REALTORS® suggests that housing is more affordable now than one year ago, according to the California Association of Realtors® that is not the case in California. Their May 2013 statistics show the largest year-over-year price gain in at least the last 33 years. Also, with all of the variables in play including inflation that were not addressed in this piece, it is unclear how long conditions will remain “affordable.” 

Home Buyers, Home Sellers, Homeowners, Housing Market, Market Statistics

Housing Statistics Report for San Diego County and North San Diego County June 2013

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Prices are moving up, and inventory is still tight in North County and San Diego County as a whole. Here is the North County snapshot of the May housing report with a link to both the full statistics for San Diego County and North County.

• The median price for all North County home sales – attached and detached – increased to $485,000 in May 2013 compared to $470,000 in April 2013.

• Detached homes in North County rose 3.83 percent in May 2013 to $555,500 compared to $535,000 in April 2013.

• Year-over median SFD (single family detached) price in North San Diego County jumped 23.72 percent, compared to $449,000 reported in May 2012.

• Spring 2013 has reported the highest median prices in North County since mid-2008.

• The countywide median SFD price increased five percent to $420,000 in May 2013 compared to $400,000 in April 2013.

• Year-over non-North County median price jumped 21.74 percent compared to $345,000 in May 2012, a 14-month trend of year-over median price increases.

• The number of North San Diego SFD listings (active and contingent) rose 5.35 percent in May 2013 compared to April 2013.

• The number of sold North San Diego County SFD units increased 11.49 percent in May 2013 compared to April 2013. Year-over sold SFD units increased 12.54 percent compared to May 2012.

• Median days-on-market for single-family detached homes sold in North County decreased to 18 days in May 2013 compared to 19 days in April 2013.

• The HomeDex affordability percentage for all homes in North San Diego County decreased to 34 percent in May 2013, compared to 36 percent in April 2013.

JUNE 2013 FULL County HomeDex Report

JUNE 2013 NORTH COUNTY HomeDex Report

Information taken from HomeDex™ Copyright © 2012 by the North San Diego County Association of Realtors (NSDCAR). Used by permission.

Home Buyers, Homeowners, Homeownership, Renters

Renters Want to Buy

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FNMA NHS.pngFannie Mae, in a recently released study, states that consumer attitudes continue to be favorable about homeownership, particularly with the younger generations, ages 18 to 34. Slightly over half of them think that owning makes more sense than renting when comparing the financial and lifestyle benefits.

90% of aspiring owners expect to purchase a home someday and slightly over half think they’ll do it within five years. The primary challenges are having sufficient savings and the difficulty of getting a mortgage today. Younger renters see renting as a temporary stepping stone toward homeownership.

Homeowners are far more likely than renters to be “very positive” about their housing experience. Some of the benefits identified are:

• Having control over what you do with your living space
• Having a sense of privacy and security
• Having a good place for your family or to raise your children
• Having the best investment plan
• Living in a nicer home
• Building up wealth
• Saving for retirement
• Living in a place where you and your family feel safe
• Feeling engaged in your community

To satisfy a buyer’s doubts about qualifying for a mortgage, make an appointment with a trusted mortgage professional. If you’d like a recommendation at no cost or obligation, please contact me at SanDiegoRealtor@cox.net.  Check out this Rent vs. Own to see the real cost of owning a home.

For more information about the Fannie Mae survey in presentation form, Click Here.