I've been saying this for quite awhile now, sometimes we just need to see it in print. Another bonus to buying now... Get out there looking before the crowds realize the same thing!
Here's another great posting from the KCM Crew.
Many purchasers have been sitting on the sidelines waiting for home prices to hit bottom. They want to guarantee that they are purchasing at the best possible price. Like them, we also believe that prices still have some room to fall in most markets. However, we disagree that waiting is a good financial decision. The buyer should not be concerned about housing prices. They should be concerned about cost.
The cost of a house is made up of the price AND THE INTEREST RATE they will be paying. Two different pieces of news released yesterday highlight this point.
PRICES
The National Association of Realtors (NAR) released their 4th quarter housing research report. In the release, they reported that home sales rose 15.4% in the 4th quarter over the 3rd quarter. They also showed that prices remained stable during the year:
The national median existing single-family price was $170,600 in the fourth quarter, up 0.2 percent from $170,300 in the fourth quarter of 2009.
A buyer who delayed a purchase might find solace in the fact that prices have not increased. However, the other news released yesterday paints a different picture.
INTEREST RATES
The Primary Mortgage Market Survey was released by Freddie Mac which showed that the 30 year fixed rate mortgage was at 5.05%. Frank Nothaft, vice president and chief economist of Freddie Mac said:
“Long-term bond yields jumped on positive economic data reports, which placed upward pressure on mortgage rates this week…As a result, interest rates on a 30-year fixed-rate mortgage rose to the highest level since the last week in April 2010.”
So prices have remained stable but interest rates have risen dramatically in the last 90 days. What does that mean to a buyer looking to purchase a home this year?
The price is the same. It just costs more.
Let’s show you what the news means:
By sitting on the sidelines for the last 90 days a purchaser lost:
$89.44 a month
$1,073.28 a year
$32,198.40 over the thirty year life of the mortgage
If you buy a $340,000 home, double all these numbers.
Bottom Line
Even if prices fall another 10% this year, the cost of a home will increase if interest rates go up more than 1%. Buyers should not worry where prices are going. They should be concerned where costs will be later in the year.
Call me...so I can give you... the golden service you deserve.
Showing posts with label san diego market. Show all posts
Showing posts with label san diego market. Show all posts
Friday, February 11, 2011
Tuesday, October 19, 2010
5 Reasons You Should Sell Your House TODAY!
I love reading Keeping Current Matters and wanted to share this with all of you. Call me if you are thinking of selling, short sale or traditional.
5 Reasons You Should Sell Your House TODAY!
5 Reasons You Should Sell Your House TODAY!by The KCM Crew on October 19, 2010 ·
Selling your house in today’s market can be extremely difficult. It is for that reason that every seller should take advantage of each and every opportunity that appears. Each fall, such an opportunity presents itself. This fall, that opportunity may be just too good to pass up.
Below are five reasons you should consider when pricing your house to sell in the next 90 days. Meet with your real estate agent and mortgage professional today and see whether it is the right move for you and your family.
1. Entering this time of year, the buyers are more serious.
We all realize that buyers are not quick to pull the trigger on the purchase of a home today. There is no sense of urgency with the supply of eligible properties at all time highs. However, at this time of year, the ‘lookers’ are at the stores doing their holiday shopping. The home buyers left in the market are serious and are more apt to make a purchasing decision. Less showings – but to more motivated purchasers.
2. If you are moving up, you can save thousands.
The Chicago Tribune stated in an article last week that sellers who want to ‘trade up’ should act now:
It could be a bigger house, different neighborhood or a better school district, but it comes with a higher price tag. Do the math; this might be the right time.
A home that was once worth $300,000 may now be worth $240,000 in a market where prices have fallen 20 percent. Wow, you think, the seller is taking a bath. But that seller may also be a prospective buyer who wants a house that once was valued at $400,000. With an equivalent market drop and a realistic listing price, that house may now sell for $320,000. So, in effect, the person is losing $60,000 on the sale of one home but coming out ahead $20,000 on the purchase of another.
Keep in mind the spread may be even greater. There’s a smaller pool of potential buyers for more expensive homes, so sellers may be more willing to cut their price to get a deal done.
3. Interest rates just fell again – to 4.19%.
Professor Karl E. Case, the founder of the Case Shiller Pricing Index in an article in the New York Times last month actually did the math for us:
Four years ago, the monthly payment on a $300,000 house with 20 percent down and a mortgage rate of about 6.6 percent was $1,533. Today that $300,000 house would sell for $213,000 and a 30-year fixed-rate mortgage with 20 percent down would carry a rate of about 4.2 percent and a monthly payment of $833 … housing has perhaps never been a better bargain.
4. You beat the rush of inventory that is coming next year.
Every year there is an increase of inventory which comes to market from January through April as homeowners put their houses up for sale in preparation for the spring market. As an example, here is the number of listings available for sale in each of those months in 2010.
January – 3,277,000
February – 3,531,000
March – 3,626,000
April – 4,029,000
You won’t have to worry about this increasing competition if you sell now.
5. You have less ‘discounted’ inventory with which to compete.
This year, sellers of non-distressed properties have been given an early holiday present. With banks declaring a suspension on the sale of many distressed properties (foreclosures), there has been a large supply of discounted properties removed from competition. No one knows how long this self imposed moratorium will last. However, while it does, every homeowner has a better chance of selling their property.
Bottom Line
If you are looking to sell in the near future, there may not be a more opportune time than this fall. Serious buyers, great move-up deals and less competition from foreclosures creates the perfect selling situation. Don’t miss it!
5 Reasons You Should Sell Your House TODAY!
5 Reasons You Should Sell Your House TODAY!by The KCM Crew on October 19, 2010 ·
Selling your house in today’s market can be extremely difficult. It is for that reason that every seller should take advantage of each and every opportunity that appears. Each fall, such an opportunity presents itself. This fall, that opportunity may be just too good to pass up.
Below are five reasons you should consider when pricing your house to sell in the next 90 days. Meet with your real estate agent and mortgage professional today and see whether it is the right move for you and your family.
1. Entering this time of year, the buyers are more serious.
We all realize that buyers are not quick to pull the trigger on the purchase of a home today. There is no sense of urgency with the supply of eligible properties at all time highs. However, at this time of year, the ‘lookers’ are at the stores doing their holiday shopping. The home buyers left in the market are serious and are more apt to make a purchasing decision. Less showings – but to more motivated purchasers.
2. If you are moving up, you can save thousands.
The Chicago Tribune stated in an article last week that sellers who want to ‘trade up’ should act now:
It could be a bigger house, different neighborhood or a better school district, but it comes with a higher price tag. Do the math; this might be the right time.
A home that was once worth $300,000 may now be worth $240,000 in a market where prices have fallen 20 percent. Wow, you think, the seller is taking a bath. But that seller may also be a prospective buyer who wants a house that once was valued at $400,000. With an equivalent market drop and a realistic listing price, that house may now sell for $320,000. So, in effect, the person is losing $60,000 on the sale of one home but coming out ahead $20,000 on the purchase of another.
Keep in mind the spread may be even greater. There’s a smaller pool of potential buyers for more expensive homes, so sellers may be more willing to cut their price to get a deal done.
3. Interest rates just fell again – to 4.19%.
Professor Karl E. Case, the founder of the Case Shiller Pricing Index in an article in the New York Times last month actually did the math for us:
Four years ago, the monthly payment on a $300,000 house with 20 percent down and a mortgage rate of about 6.6 percent was $1,533. Today that $300,000 house would sell for $213,000 and a 30-year fixed-rate mortgage with 20 percent down would carry a rate of about 4.2 percent and a monthly payment of $833 … housing has perhaps never been a better bargain.
4. You beat the rush of inventory that is coming next year.
Every year there is an increase of inventory which comes to market from January through April as homeowners put their houses up for sale in preparation for the spring market. As an example, here is the number of listings available for sale in each of those months in 2010.
January – 3,277,000
February – 3,531,000
March – 3,626,000
April – 4,029,000
You won’t have to worry about this increasing competition if you sell now.
5. You have less ‘discounted’ inventory with which to compete.
This year, sellers of non-distressed properties have been given an early holiday present. With banks declaring a suspension on the sale of many distressed properties (foreclosures), there has been a large supply of discounted properties removed from competition. No one knows how long this self imposed moratorium will last. However, while it does, every homeowner has a better chance of selling their property.
Bottom Line
If you are looking to sell in the near future, there may not be a more opportune time than this fall. Serious buyers, great move-up deals and less competition from foreclosures creates the perfect selling situation. Don’t miss it!
Monday, August 16, 2010
Know Your Options To Avoid Foreclosure...You Are Not Alone.
At Century 21 Award we understand how the economy has impacted some of our neighbors in relation to their homes. If you are experiencing difficulty in making your monthly mortgage payment or foresee in the near future a problem, I might be able to help. Despite what you might be hearing from the media, friends or co-workers, there are alternatives to losing your home.
I'm a Certified Short Sale & Foreclosure Resource professional from Century 21 Award, and have been helping owners and prospective homeowners in our communities. I began helping families facing foreclosure, become aware of all the options available for retaining their home or receiving fair market value, and purchasing 2 years later.
New Government Programs - Alternative Options
HAP Home Affordable Program (military only)
HARP Home Affordable Refinance Plan
HAMP Home Affordable Modification Program
HAFA Home Affordable Foreclosure Alternative
Don’t lose your home and/or the equity you’ve worked so hard to build up just because you’re too embarrassed to get advice. We have helped people in your situation, and we can help you too. Please give me a call at 619-417-5645 Let me remove this burden from you.
I'm offering a free and private consultation to review your options. I'll provide you with the information you need, so you can make the best possible decision for you and your family. It’s nothing to be ashamed of millions of homeowners are facing the exact same situation.
NO OBLIGATION - FREE CONSULTATION.
I'm a Certified Short Sale & Foreclosure Resource professional from Century 21 Award, and have been helping owners and prospective homeowners in our communities. I began helping families facing foreclosure, become aware of all the options available for retaining their home or receiving fair market value, and purchasing 2 years later.
New Government Programs - Alternative Options
HAP Home Affordable Program (military only)
HARP Home Affordable Refinance Plan
HAMP Home Affordable Modification Program
HAFA Home Affordable Foreclosure Alternative
Don’t lose your home and/or the equity you’ve worked so hard to build up just because you’re too embarrassed to get advice. We have helped people in your situation, and we can help you too. Please give me a call at 619-417-5645 Let me remove this burden from you.
I'm offering a free and private consultation to review your options. I'll provide you with the information you need, so you can make the best possible decision for you and your family. It’s nothing to be ashamed of millions of homeowners are facing the exact same situation.
NO OBLIGATION - FREE CONSULTATION.
Sunday, January 31, 2010
SHADOW INVENTORY...This Market Is A Crap Shoot!
SHADOW INVENTORY...This Market Is A Crap Shoot!
That's all I hear...Shadow Inventory. The rate of distressed homeowners is still increasing. The amount of foreclosures is at an all time high in San Diego - 19,543. That is our Shadow Inventory, almost growing like a mold. Not black but RED. Homes that have been foreclosed on and yet not listed for sale. I see them all over the community. When I take buyers out for viewing properties they want to know if I know when that property is coming on the market. If I know anything about it. I can't tell them a heck of a lot if it's not listed yet. Used to be you could really spot them quickly...dead grass, tall weeds and tons of newspapers and "help" advertisements littering the driveways and doorsteps. Now, it's more controlled, the HOA's or the list agents are fined for leaving a yard go without maintenance. The neighborhoods are looking greener and the streets tidy...still the Shadow Inventory lurks like mold, waiting to be cleaned up.
Whose going to do the cleaning up? Politicians with their moratoriums and bail out programs? A high percentage of loan mods don't work and if they do not for very long. We as Realtors all wait to see the latest and greatest new programs to help, but it's not working.
I say open the trickle of foreclosed homes to a steady flow. We all know there are plenty of buyers wanting to purchase these homes. Why have homes with 30-60 offers on them when the house next door is waiting, empty and available? So it's all a crap shoot as to where this market will really go this year. Here in San Diego the best thing to do is loosen the comps, tighten the closing costs credit and put your best loan forward cause it doesn't seem to be getting any easier. Gone are the low balling days and getting 3+ % in closing costs credit. I know I'll find my buyers great properties to come home to at night. It's just going to take a little more time and patience on everyone's part.
That's all I hear...Shadow Inventory. The rate of distressed homeowners is still increasing. The amount of foreclosures is at an all time high in San Diego - 19,543. That is our Shadow Inventory, almost growing like a mold. Not black but RED. Homes that have been foreclosed on and yet not listed for sale. I see them all over the community. When I take buyers out for viewing properties they want to know if I know when that property is coming on the market. If I know anything about it. I can't tell them a heck of a lot if it's not listed yet. Used to be you could really spot them quickly...dead grass, tall weeds and tons of newspapers and "help" advertisements littering the driveways and doorsteps. Now, it's more controlled, the HOA's or the list agents are fined for leaving a yard go without maintenance. The neighborhoods are looking greener and the streets tidy...still the Shadow Inventory lurks like mold, waiting to be cleaned up.
Whose going to do the cleaning up? Politicians with their moratoriums and bail out programs? A high percentage of loan mods don't work and if they do not for very long. We as Realtors all wait to see the latest and greatest new programs to help, but it's not working.
I say open the trickle of foreclosed homes to a steady flow. We all know there are plenty of buyers wanting to purchase these homes. Why have homes with 30-60 offers on them when the house next door is waiting, empty and available? So it's all a crap shoot as to where this market will really go this year. Here in San Diego the best thing to do is loosen the comps, tighten the closing costs credit and put your best loan forward cause it doesn't seem to be getting any easier. Gone are the low balling days and getting 3+ % in closing costs credit. I know I'll find my buyers great properties to come home to at night. It's just going to take a little more time and patience on everyone's part.
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