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.
Tag Archives: homeowner
What Buyers Don’t Want
Retirement Without a Mortgage
Planning for retirement is obviously important and many times, an activity plagued by procrastination. Some people plan to have their home paid for by that magical date so they won’t have payments after they retire. It makes sense to eliminate a large recurring expense before they quit working.
One strategy would be to be make regular principal contributions in addition to the payments so that it will eliminate the debt by the target retirement date.
Let’s say that a homeowner refinanced their $200,000 mortgage at 4% last year with the first payment due on May 1, 2012. Under normal amortization, the home would be paid for at the end of the term; 30 years in this example.
By making additional principal contributions with each payment, it would accelerate the payoff on the home. An extra $257.13 a month would pay off the mortgage in 20 years. $524.55 extra with each payment would pay off the loan in 15 years; and $796.23 would pay off the loan in 12 years.
Having a home paid for at retirement has the obvious benefit of no house payment. It is also a substantial asset that could be borrowed against or sold if unanticipated events should occur.
Another strategy might involve purchasing a smaller home now to use as a rental that you intend to live when you retire; see Retirement Home Now.
To make some projections to pay off your own mortgage, use this Equity Accelerator.
Housing Statistics Report for San Diego County and North San Diego County July 2013
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.
Housing Statistics Report for San Diego County and North San Diego County June 2013
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.
Renters Want to Buy
Fannie 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.
Last-Minute Amendment Holds SB 30 Hostage to Passage of SB 391
This article came to me a few days ago from the CALIFORNIA ASSOCIATION OF REALTORS.
LOS ANGELES (May 23) – This morning the Senate Appropriations Committee approved Senate Bill 30 (R. Calderon), which would extend existing provisions of state law protecting homeowners from having to pay income tax on a “short sale.” SB 30 is sponsored by the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.).
However, in a surprise amendment, SB 30 was linked by the committee to another bill that REALTORS®, as well the county recorders, assessors and title industry, oppose. That measure, Senate Bill 391 (DeSaulnier), would establish a $75 per document recording tax to fund an affordable housing trust fund. C.A.R. is opposing SB 391 because it unfairly adds to the cost of recording real estate documents. The amendment holds SB 30 hostage to the passage of SB 391.
“Families that are forced to make the difficult decision to sell their home as a short sale are already in financial trouble. And, that financial trouble may be due to a serious illness and/or loss of employment. They simply can’t afford to pay an additional tax on money they’ve never actually received,” stated C.A.R. President Don Faught. “I’m outraged — as should the voters of California — that the Senate leadership would approve linking the fate of SB 30 to that of SB 391, effectively holding California property owners hostage.”
Short sales have become an increasingly important alternative to foreclosure for homeowners “underwater” on their mortgage. Without special protection, federal and state law would view the debt forgiven by a lender in a short sale as income and, as a result, that “income” would be taxed. In recent years, state and federal law has been amended to keep this “phantom” income from being taxed, but California protections have not been extended. Consequently, C.A.R. is sponsoring SB 30.
While SB 391 does not apply to sale transactions, the measure applies anytime a home/property owner records a document (e.g., refinancing, transferring into or out of a trust, liens, quit claim deeds, etc.). C.A.R. is an aggressive advocate for affordable housing, but believes it is bad policy to fund affordable housing at the expense of home/property owners who need to record real estate documents. The amendment to SB 30 attempts to extort support for the new tax on homeowners in SB 391.
Housing Statistics Report for San Diego County and North San Diego County May 2013
I can’t speak for the rest of the country, but here in San Diego County we are experiencing low inventory, short market times and rising prices. Here is a snapshot of the April housing report along with two links to the full reports for both San Diego County as a whole and the North County area.
• The median price for all North County home sales – attached and detached – increased to $470,000 in April 2013 compared to $448,000 in March 2013.
• Detached homes in North County increased 1.9 percent in April 2013 to $535,000 compared to $525,000 in March 2013.
• Year-over median price in North San Diego County jumped 27.38 percent, compared to $420,000 reported in April 2012.
• April 2013 marked the highest price increase in North County since mid-2008.
• The countywide median SFD price increased 1.27 percent to $400,000 in April 2013 compared to $395,000 in March 2013.
• Year-over non-North County median price jumped 17.73 percent compared to $339,750 in April 2012.
• The number of North San Diego SFD listings (active and contingent) rose 0.76 percent in April 2013 compared to March 2013.
• The number of sold North San Diego County SFD units increased 9.03 percent in April 2013 compared to March 2013. Year-over sold SFD units increased 8.91 percent compared to April 2012.
• Median days-on-market for single-family detached homes sold in North County fell to 19 days in April 2013 compared to 26 days in March 2013.
• The HomeDex affordability percentage for all homes in North San Diego County decreased to 36 percent in April 2013, compared to 39 percent in March 2013.
May 2013 NORTH COUNTY HomeDex Report
May 2013 FULL COUNTY HomeDex Report
Information taken from HomeDex™ Copyright © 2012 by the North San Diego County Association of Realtors (NSDCAR). Used by permission.
When to Sell the Temporary Rental
Some homeowners, who were not able to sell during the recession, chose to rent their homes instead. In some cases, they didn’t need to sell their home at the depressed prices and opted to rent it until the market recovered.
It’s a valid strategy but there are time restrictions that could have serious tax implications for some homeowners.
The section 121 exclusion for gain in a principal residence requires that the home is owned and used as a main home for at least two years during the five year period ending on the date of the sale. This allows a homeowner to rent their home for up to three years and still have some part of the exclusion available.
The sale of a home with a $200,000 gain that qualifies as a principal residence would result in no tax being paid by the owner. Comparably, a rental property with the same gain could have a $30,000 or higher tax liability depending on the length of ownership and tax brackets of the investor.
The housing market has dramatically improved in the last year. If you have a gain in a home that has been your principal residence and it has been rented less than three years, you might want to consider selling it while you qualify for the exclusion.
If you are considering a sale on your principal residence that has been rented, consult with your tax professional for advice on your specific situation. For additional information, see IRS Publication 523.
Reimagining the Kitchen: Trends for 2013
If you’re looking to remodel your kitchen, we’ve got good news and bad news.
First, the good stuff. According to trend experts Lita Dirks and Dominick Tringali, you don’t have to shell out major cash to add space. Instead, look to expand what you already have. Read
Copyright 2013 NATIONAL ASSOCIATION OF REALTORS®