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Inventory Balance

March 23, 2017

 

Questions:

  1. What exactly is “housing inventory” and how is it calculated?

  2. How do you know if it is a Buyer’s market, Seller’s market or neutral market?

When deciding to sell or buy a home it is important to discuss the marketplace with your Realtor to understand the current climate.

Currently the inventory in San Diego County is currently less than two months making it a Seller’s market HOWEVER, interest rates are still historically low giving Buyers good reason to purchase.

How to Compute Months of Inventory

  1. Find the total number of active listings on the market last month.
  2. Find the total number of sold transactions for the last month.
  3. Active listings divided by the number of sales = the number of months of inventory remaining.

Buyer’s Real Estate Markets

In these markets there are more homes available for sale (higher inventory) than buyers to purchase them.

In Buyer’s markets serious sellers are often more willing to negotiate. This means you may be able to buy a home for less than list price, and the seller might be willing to pay some of your closing costs and make more repairs.

Signs of a Buyer’s Market

  • More than six months of inventory is on the market.
  • Prices are reduced before going into escrow.
  • Sale prices are lower than listing prices.
  • Fewer buyers are purchasing, resulting in lower closed sale numbers.
  • Median sales prices are declining.
  • Days on the market are longer.

Seller’s Real Estate Markets

In these markets there are more buyers than available houses to buy.

In Seller’s markets serious buyers are often willing to pay more than list price, tighten or and/or waive contingencies. Properties usually receive multiple offers and don’t stay on the market very long.

Signs of a Seller’s Market

  • Less than six months of inventory is on the market.
  • Prices are not reduced before going into escrow.
  • Sale prices are higher than listing prices.
  • More buyers are purchasing, resulting in higher closed sale numbers.
  • Median sales prices are increasing.
  • Days on the market are shorter.

 

Neutral Real Estate Markets

These markets are balanced. Typically, interest rates are affordable and the number of buyers and sellers in the marketplace are equalized. The scales don’t tip in either direction.

Signs of a Neutral Market

  • Three to six months of inventory is on the market.
  • Sale prices are close to listing prices.
  • Sales numbers have stabilized.
  • Median sales prices are flattened.
  • Days on the market are 30-60 days.

Please contact me to discuss the current climate and how you can best use it to your advantage! Just send me an email or call me at 619-888-2117. 
 

 

Market @ A Glance: March 2017 Edition

March 15, 2017

Local Market Update - San Diego County - Real Estate
Here is the latest scoop on the local and state housing markets. For specific information on your neighborhood or a market analysis on your home please  Just send me an email or call me at 619-888-2117. 

 

 

 

 

What Lies Ahead in Real Estate in 2017?

March 15, 2017

 

 

 

What lies ahead in real estate in 2017?

Many clients have asked me what they should expect in the coming year(s). Real estate is a critical sector of the economy that affects buyers, sellers, renters, landlords and homeowners and there is always some uncertainty that occurs whenever a new administration comes into office.  Whether there will be a significant change to regulations and tax reform, and how those changes may effect the market, remains to be seen.

The hope is that there will be a stable real estate framework in which buyers and bellers can best operate. Most analysts nationally and locally are in agreement that despite the rumblings of the current administration, 2017 should remain a strong year for real estate and both buyers and sellers will find opportunities to fulfill their needs.

Here are some topics to keep an eye on:

Recovering Sales

Home sales in California are expected to increase 1.4 % up slightly from 2016 according to the California Association of Realtors (CAR).  In some regions, such as San Diego, factors such as low inventory and high demand and increases in interest rates may have a greater impact on sales.

Understanding Demographics

Millennials are expected to have a great impact on the market this year according to Realtor.com.  A little more than half of potential buyers are expected to be first-timers, with more than 60% of them being under 35 years old.

Construction Market

Although the health of the U.S. construction market is good we are still under historical norms.  Builders are constructing fewer homes in the lower priced categories where demand is strong and companies are facing higher land and permit costs along with regulatory restrictions.

Interest Rates

After years of super historically low rates we will likely see some increases on the horizon as the Fed makes adjustments and inflation fluctuates.  Still, for 2017 we should still be in the historically low category as seen by this rate chart showing 2000-2016 rates. For the first few months of 2017 rates have been in the low 4%.

 

 

Consider me your #1 resource for all things Real Estate! Selling, buying, upsizing, downsizing, relocating, investing, vendor referrals, shoulder to cry on during renovations and more.  Just send me an email or call me at 619-888-2117. 

Propositions 60 and 90 and how they can help you save money on your next property purchase

March 9, 2017

save-money-6090

Information provided by BOE.CA.GOV

What is Prop 60?

The perks associated with being 55 or older don’t just come from AARP !  Prop 60 allows transfers of base year property values/property taxes within the same county (intracounty). This can save you thousands of dollars in property taxes on the new property you purchase!

What is Prop 90?

It allows transfers from one county to another county in California (intercounty) and it is the discretion of each county to authorize such transfers. So if approved, your savings can be put into effect for a purchase in another county!

What are the eligibility requirements for Propositions 60/90?

  1. You, or a spouse residing with you, must have been at least 55 years of age when the original property was sold.
  2. The replacement property must be your principal residence and must be eligible for the homeowners’ exemption or disabled veterans’ exemption.
  3. The replacement property must be of equal or lesser “current market value” than the original property. The “equal or lesser” test is applied to the entire replacement property, even if the owner of the original property purchases only a partial interest in the replacement property. Owners of two qualifying original properties may not combine the values of those properties in order to qualify for a Proposition 60 base-year value transfer to a replacement property of greater value than the more valuable of the two original properties.
  4. The replacement property must be purchased or built within two years (before or after) of the sale of the original property.
  5. To receive retroactive relief from the date of transfer, you must file your claim within three years following the purchase date or new construction completion date of the replacement property.
  6. Your original property must have been eligible for the homeowners’ or disabled veterans’ exemption either at the time it was sold or within two years of the purchase or construction of the replacement property.

The original property must be subject to reappraisal at its current fair market value at the time of sale, unless the buyer(s) of your original property also qualify the property as a replacement property for a base year value transfer due to disaster relief or a base year value transfer for a severely and permanently disabled person. Therefore, most transfers between parents and children will not qualify.

This is a one-time only benefit. Once you have filed and received this tax relief, neither you nor your spouse who resides with you can ever file again, even upon your spouse’s death or if the two of you divorce. The only exception is that if you become disabled after receiving this tax relief for age, you may transfer the base year value a second time because of the disability, which involves a different claim form.

Please contact me to discuss how you can take advantage of these tax saving opportunities! Just send me an email or call me at 619-888-2117. 
 

(For a more detailed Q & A regarding 60/90 visit this site or call the Assessment Services Unit at 916-274-3350.)

 

Should I Pay My Mortgage or Other Loans Off Sooner or Later

March 2, 2017

mortgage-pay-off

 

Clients often assume it is always a good thing to pay a mortgage (and other debts like student loans) off sooner vs. later- however that is not always true.

Here are some things to consider and discuss with financial professionals like CPAs and Financial Planners:

1) How does your mortgage interest rate compare to rates on your retirement and investment accounts? The “extra” money you may be contributing to pay down the mortgage might earn more elsewhere if you have a low mortgage rate.

2) If you think you might apply for need-based college aid for your children home equity could count against you with some colleges because the equity is viewed the same as money in the bank.

3) There can be tax advantages to writing off mortgage interest and if that disappears early your tax liabilities could increase.
Remember, you can’t get the money back from the bank once you pay down the mortgage, however if after doing your research you decide paying off the mortgage early is to your advantage, Bankrate offers these illustrated options.

Consider me your #1 resource for all things Real Estate! Selling, buying, upsizing, downsizing, relocating, investing, vendor referrals, shoulder to cry on during renovations and more.  Just send me an email or call me at 619-888-2117. 

Home Projects and Resale ROI

February 23, 2017

Consider me your #1 resource for all things Real Estate! Selling, buying, upsizing, downsizing, relocating, investing, vendor referrals, shoulder to cry on during renovations and more.  Just send me an email or call me at 619-888-2117. 

resale-roi

Lowering Credit Card Interest Rates

February 16, 2017

3-ways-to-drop-the-interest-rate-on-your-credit-card

 

Article: MDC FINANCIAL SERVICE GROUP

When was the last time you evaluated the interest rate on your credit cards? The higher the rate, the more that “borrowed’ money is costing you. If you’d like to keep more of your hard-earned cash, consider the following action plan for securing a lower rate.

Negotiate — Sometimes it’s as simple as asking. In fact, three out of four people who request an interest rate reduction are successful. First, take note of your history with the company, including how long you’ve been a customer and the timeliness of your payments, and collect interest rate offers you’ve received from their competitors. Then make the call, and share this information. If the representative can’t help, politely ask for a supervisor.

Transfer — Even if your company refuses to budge, you may be able to move your high-interest balance to another card. Companies frequently lure customers from their competitors with low-interest or even zero-interest offers. If you’re able to pay off your debt during the promotional period, you can save money just by making a switch. Just be sure to compare the terms of each offer before you decide to go for it.

Improve — It’s always worth it to take steps to improve your credit score, which impacts your ability to qualify for low rates. Paying off debt is key, but there are other things you can do as well. Set up bill reminders or automatic payments to ensure timely payments, correct errors on your credit report and keep your balance low compared to the credit available on your card.

It may take a little while, but once you successfully reduce your interest rates, you’ll have more money at your disposal to achieve your financial goals.

Consider me your #1 resource for all things Real Estate! Selling, buying, upsizing, downsizing, relocating, investing, vendor referrals, shoulder to cry on during renovations and more.  Just send me an email or call me at 619-888-2117. 

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