Don’t miss the Neighborhood Open House October 3rd, 2018 from 5:00 to 7:00 PM at 1752 Redondo St. SD,CA 92107!
IF you are looking for more square footage and VALUE this is it! 4 bedrooms 2.5 baths over 2800 sq. ft on large lot with alley access, two family rooms, beautiful kitchen, game room, wine tasting room and much more!
All for $1,150,000.
When it comes to buying or selling a home there are many factors you should consider. Where you want to live, why you want to buy or sell, and who will help you along your journey are just some of those factors. When it comes to today’s real estate market, though, the top two factors to consider are what’s happening with interest rates & inventory.
Mortgage interest rates have been on the rise and are now over three-quarters of a percentage point higher than they were at the beginning of the year. According to Freddie Mac’s latest Primary Mortgage Market Survey, rates climbed to 4.72% for a 30-year fixed rate mortgage last week.
The interest rate you secure when buying a home not only greatly impacts your monthly housing costs, but also impacts your purchasing power.
Purchasing power, simply put, is the amount of home you can afford to buy for the budget you have available to spend. As rates increase, the price of the house you can afford to buy will decrease if you plan to stay within a certain monthly housing budget.
The chart below shows the impact that rising interest rates would have if you planned to purchase a $400,000 home while keeping your principal and interest payments between $2,020-$2,050 a month.
With each quarter of a percent increase in interest rate, the value of the home you can afford decreases by 2.5% (in this example, $10,000). Experts predict that mortgage rates will be over 5% by this time next year.
A ‘normal’ real estate market requires there to be a 6-month supply of homes for sale in order for prices to increase only with inflation. According to the National Association of Realtors (NAR), listing inventory is currently at a 4.3-month supply (still well below the 6-months needed), which has put upward pressure on home prices. Home prices have increased year-over-year for the last 78 straight months.
The inventory of homes for sale in the real estate market had been on a steady decline and experienced year-over-year drops for 36 straight months (from July 2015 to May 2018), but we are starting to see a shift in inventory over the last three months.
The chart below shows the change in housing supply over the last 12 months compared to the previous 12 months. As you can see, in June, July, and August, inventory levels have started to increase as compared to the same time last year.
This is a trend to watch as we move further into the fall and winter months. If we continue to see an increase in homes for sale, we could start moving further away from a seller’s market and closer to a normal market.
If you are planning to enter the housing market, either as a buyer or a seller, let’s get together to discuss the changes in mortgage interest rates and inventory and what they could mean for you.
Don’t Miss this Opportunity! IF you are looking to MOVE up and need more ROOM, this is it! This 4 bedroom 2.5 bath has over 2800 sq.ft and sits on a large lot with alley access. This home offer hardwood floors, new paint, new carpet, two family rooms, wine tasting room and large decks for entertaining.
Rising home prices have been in the news a lot lately and much of the focus has been on whether home prices are accelerating too quickly, as well as how sustainable the growth in prices really is. One of the often-overlooked benefits of rising prices, however, is the impact that they have on a homeowner’s equity position.
Home equity is defined as the difference between the home’s fair market value and the outstanding balance of all liens (loans) on the property. While homeowners pay down their mortgages, the amount of equity they have in their homes climbs each time the value of their homes go up!
According to the latest Equity Report from ATTOM Data Solutions, “13.9 million U.S. properties in Q2 2018 were equity rich — where the combined estimated balance of loans secured by the property was 50 percent or less of the property’s estimated market value — representing 24.9% of all U.S. properties with a mortgage.”
This means that nearly a quarter of Americans who have a mortgage would be able to sell their homes and have a significant down payment toward their next home. Many who sell could also use their new-found equity to pay off high-interest credit cards or help children with tuition costs.
The map below shows the percentage of properties with a mortgage in each state that were equity rich in Q2 2018.
If you are a homeowner looking to take advantage of your home equity by moving up to your dream home, let’s get together to discuss your options!
The Haunted Hotel, Sept. 28-Oct. 31
Recently ranked the “Scariest Haunt in America,” the Haunted Hotel in the Gaslamp District is San Diego’s longest-running haunted house. There is a half-price preview weekend on Sept. 21-22.
The Haunted Trail, Sept. 28-Oct. 31
If you dare, take a terrifying traipse through the trails of twisted pines and gnarled oaks. It’s so scary that you must be at least 10 years old to enter!
The Scream Zone, Sept. 28-Oct. 31
This is San Diego County’s largest haunted experience. It’s also considered one of Southern California’s scariest and goriest haunted houses. There are also food vendors, photo opps and the Spirit Lounge bar.
Savage House Haunted Attraction, Oct. 4-31
A new twist on the haunted house experience, the Savage House will immerse you in a storyline fit for a horror film from beginning to end.
Ghostly Happenings, Oct. 12
Hotel Del Coronado
World-renowned medium James Van Praagh conjures up spirits and personal messages from the other side. There might even be an appearance by one of the hotel’s ghostly guest! The VIP ticket includes a ghost tour.
LEGOLAND Brick-or-Treat, Sept. 29-Oct. 27
This family event includes live entertainment, character meet-and-greets, a costume contest, trick-or-treating, an AstroBash Dance Party and more!
Pumpkin Express, Oct. 6-28
Campo & La Mesa
Join the Pacific Southwest Railway Museum Association in the Pumpkin Express Halloween Celebration. It is complete with a train ride, pumpkin patch and more.
Haunted Tales, Oct. 20 and 27
Star of India, Downtown San Diego
Aspiring ghosts, goblins, pirates and princesses are invited to the Star of India for some ghostly tales. At the event, storytellers reveal the eerie legends of our seafaring past.
Trick-or-Treat on India Street, Oct. 26
This fun and safe Halloween event makes it possible for urban families to enjoy authentic trick-or-treating fun. That’s because Little Italy businesses along historic India Street open their doors to give out candy and Halloween treats.
Haunted Aquarium: Sea Monster Mash, Oct. 26-27
Scripps Aquarium, La Jolla
Discover a sea of glowing beasts, get sticky with slime, and enjoy shipwrecked stories. At the same time, you can boo-gy down to live music and having a monstrous good time.
Balboa Park Halloween Family Day, Oct. 27
San Diego’s Balboa Park and its museums treat families to a free Halloween Family Day with a spooky array of hands-on activities and other free goodies.
Monster Bash, Oct. 27
Downtown San Diego
San Diego’s favorite Halloween festival returns with a new WCKD twist. Six blocks in the East Village transform to offer entertainment, supernatural experiences and more!
Home values have risen dramatically over the last twelve months. In CoreLogic’s most recent Home Price Index Report, they revealed that national home prices have increased by 6.2% year-over-year.
CoreLogic broke down appreciation even further into four price ranges, giving us a more detailed view than if we had simply looked at the year-over-year increases in national median home price.
The chart below shows the four price ranges from the report, as well as each one’s year-over-year growth from July 2017 to July 2018 (the latest data available).
It is important to pay attention to how prices are changing in your local market. The location of your home is not the only factor which determines how much your home has appreciated over the course of the last year.
Lower-priced homes have appreciated at greater rates than homes at the upper ends of the spectrum due to demand from first-time home buyers and baby boomers looking to downsize.
If you are planning to list your home for sale in today’s market, let’s get together to go over exactly what’s going on in your area and your price range.