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The following two charts are from FinestExpert.com and show the current price trends for average listing price and a histogram showing the price ranges of the available e-bedroom homes for sale.
 
If you have a specific area you would like to know about the market trends or the price ranges of available homes, go to http://www.americasfinestrealestate.com/real-estate/92130 and replace the zipcode shown in the link with your own zipcode, city-name, or state-name. Yes, you must hyphenate a multi-word-name.
You can even compare city, state, and zipcode trends by adding more slashes and names. For example, you could type in http://www.americasfinestrealestate.com/real-estate/San-Diego/CA/92130 to get a three entry price trend chart. Sadly the home availability histogram only shows the most narrowly defined region.
These tools are especially useful for real estate investing.
Carmel Valley / Torrey Hills Real Estate Report for March 23, 2011 (sales in last 30 days)
Carmel Valley Single Family Homes
- Carmel Valley Homes for Sale: 230
- Carmel Valley Months of Inventory: 2.95
- Carmel Valley Average Home Price $1,176,068 (sold) and $1,322,010 (active)
- Carmel Valley Homes Sold: 36
- Carmel Valley Homes In Escrow: 51
Carmel Valley Condos and Townhomes
- Carmel Valley Condos for Sale: 71
- Carmel Valley Months of Inventory: 2.28
- Carmel Valley Median Condo Price: $395,929 (sold) and $413,435 (active)
- Carmel Valley Condos Sold: 16
- Carmel Valley Condos In Escrow: 25
In the past month, we have had a dictator overthrown in Egypt, a dictator in crisis in Lybia, and a tsunami with nuclear meltdowns in Japan. These have resulted in investors seeking safe-haven in US bonds, which in turn has driven down interest rates to where they were about two months ago. This is great for anyone who missed the earlier refi boom - contact Robert at http://www.wjbhomeloan.com or Robert.Boyer@WJBradley.com
Some days you just have to make yourself a target. Today is one of those days.
I don't know about you, but I never quite got the concept of inclusionary housing. What exactly is the point of a developer trying to create an upscale neighborhood only to be forced to include a certain percentage of low income housing (or pay substantial penalties). There are very different belief systems in the two types of people and the social engineering of forcing the mixture is not necessarily a good thing.
Apparently the Oceanside City Council has decided that this mandate never really worked for them and have just recently voded to eliminate it, (according to http://blog.biasandiego.org/) stating that the
"current program is ineffective, punitive, and impedes job creation. The twenty-year-old mandate requires builders to either include low income housing in their projects or pay what Councilman Jerry Kern and others called a ‘housing tax' in excess of $10,000 for every home built."
"The BIA and other home building representatives testified that the housing tax makes potential projects economically infeasible forcing them to delay construction and preventing job creation. A majority of the council agreed pointing out that construction activity in Oceanside is at historic lows and unemployment remains in double digits."
It sounds like the council is planning on removing this "stick" and replace it with some "carrots". They intend to replace the current program with a series of incentives and regulatory reforms that will make the low income housing more economically feasible to build. All TBD.
Your apparent risk as a borrower may dramatically affect the interest rate you have to pay. To a lender, there are three key risk components:
1. Credit rating - this is your personal history demonstrating your responsibility. The higher your score, the more trustworthiness you have demonstrated and are expected to continue to demonstrate.
2. LTV (loan-to-value) - this serves two purposes. First, by having a higher down payment (hence a lower LTV), the lender is more protected against market downturns. Second, the more skin in the game you have, the more likely you are to stick with it.
3. Loan Amount - that is not reflected in this charts. But you can see it in pricing between Conforming Loans (<= $417,000), High Balance Conforming (upper limit depends on your area), and Jumbo Loans, and even price points within Jumbo loans. You can also see it in the shorter term adjustable rate mortgages compared with the longer term fixed rate mortgages.
The following chart is taken from the updated Fannie Mae guidelines going into effect April 1, 2011 for all mortgages with greater than 15-year terms. Recent increases to this table can be found in the post Changes to loan pricing based on your FICO score may cost you more money .
| > 740 |
-0.25% |
0.00% |
0.00% |
0.25% |
0.25% |
0.25% |
0.25% |
0.25% |
N/A |
| 720 – 739 |
-0.25% |
0.00% |
0.25% |
0.50% |
0.50% |
0.50% |
0.50% |
0.50% |
N/A |
| 700 – 719 |
-0.25% |
0.50% |
0.75% |
1.00% |
1.00% |
1.00% |
1.00% |
1.00% |
N/A |
| 680 – 699 |
0.00% |
0.50% |
1.25% |
1.75% |
1.50% |
1.25% |
1.25% |
1.00% |
N/A |
| 660 – 679 |
0.00% |
1.00% |
2.00% |
2.50% |
2.75% |
2.25% |
2.25% |
1.75% |
N/A |
| 640 – 659 |
0.50% |
1.25% |
2.50% |
3.00% |
3.25% |
2.75% |
2.75% |
2.25% |
N/A |
| 620 – 639 |
0.50% |
1.50% |
3.00% |
3.00% |
3.25% |
3.25% |
3.25% |
3.00% |
N/A |
| < 620 (1) |
0.50% |
1.50% |
3.00% |
3.00% |
3.25% |
3.25% |
3.25% |
3.25% |
N/A |
(1) A minimum required credit score of 620 applies to all mortgage loans delivered to Fannie Mae in accordance with the Selling Guide; exceptions to this requirement are limited to loans in which any borrower has nontraditional credit and those originated in accordance with Refi Plus™ or DU Refi Plus.
You can see that even with great credit, if you do not put down at least 25%, you are going to be hit with higher interest rates (or cost).
The higher the risk, the more costly the loan. Are you considered high risk?
As a borrower, your risk is adjudged based on your credit rating - typically referred to as your FICO score. The lower your score, the higher risk you appear and vice versa.
This year, the the risk based pricing chart (Agency Loan Level Price Adjustment (LLPA)) has been revised. These LLPA changes were made by the Agencies and all major Correspondent Lender's implemented them. Below is the table of CHANGES. (You can see the full table with final adjustments for 2011 in the post "How Does Your FICO Score Affect Your Interest Rate".)
| |
|
|
|
|
|
FICO |
|
|
|
| |
|
|
620 - 639 |
640 - 659 |
660 - 679 |
680 - 699 |
700 - 719 |
720 - 739 |
>= 740 |
| |
<=60 |
N/A |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
| |
60.01 - 70 |
N/A |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
| |
70.01 - 75 |
N/A |
0 |
0 |
0 |
-0.25 |
-0.25 |
-0.25 |
0 |
| LTV % |
75.01 - 80 |
N/A |
0 |
0 |
0 |
-0.25 |
-0.25 |
-0.5 |
-0.25 |
| |
80.01 - 85 |
N/A |
-0.25 |
-0.5 |
-0.5 |
-0.5 |
-0.5 |
-0.5 |
-0.25 |
| |
85.01 - 90 |
N/A |
-0.5 |
-0.5 |
-0.5 |
-0.5 |
-0.5 |
-0.5 |
-0.25 |
| |
90.01 - 95 |
N/A |
-0.5 |
-0.5 |
-0.5 |
-0.5 |
-0.5 |
-0.5 |
-0.25 |
| |
95.01 - 97 |
N/A |
-0.5 |
-0.5 |
-0.5 |
-0.5 |
-0.5 |
-0.5 |
-0.25 |
Where you see an LTV (loan-to-value) of 80% and a credit score of 700, it will cost you an extra 1/2% to your interest rate. You want to get your loans completed ASAP before the new pricing takes effect at the beginning of April.
You can clearly see the push for higher down-payments.
La Jolla real estate. What a great collection of beautiful properties. I have been visiting open houses in La Jolla this last month, introducing myself to the area agents and most have been appreciative of the statistics and loan scenarios I have provided for their listings. There are a lot of La Jolla homes for sale. Below is a snapshot of the current inventory in La Jolla, CA, broken down by price range.
Green are condos and red are single family homes. For the most part, it is a strong buyer's market in La Jolla right now, with the small exception of condos in the $300-350K price range or single family homes in the $800-900K price range. In these cases, the sellers are clearly in charge.
La Jolla sellers should put their property on the market immediately to catch the spring and summer buyers because, well, if everything on the market were to sell at the same rate as last year, then it could take that long to find the right buyer.
What I like about ActiveRain is the community, which today has grown to 200,000 members.
What is that saying it 200,000 real estate professionals are doing it, then... :-)
Actually, there are many more blogs that tout the great value of ActiveRain. Please post your favorite AR benefits links in your comment!
Let's all have a great new year!
Your clients may trust you and possibly even like you, but unless they are serious, then there's a good chance they're not going to do business with you - at least not at the moment. So how do you separate the serious customers from those just kicking the tires, and how do you convert the prospects that might currently be "just looking" into future business?
Both serious buyers and "I'm just looking" customers share a common trait: They need information. Serious buyers are motivated buyers. They are actively searching for an immediate solution to their problem, or the tool that is going to help them accomplish their goal. This means they are researching.
So, put yourself in their shoes. If they are investigating solutions, go to the places where they can find information. This could be online forums, educational seminars, industry events and other resources and venues where they can gain the knowledge that will help them make a sound decision. Make sure you position yourself at these places, actively engage these prospects and provide them with your expert insights.
Also, provide the tools they need, such as brochures, websites and other information that will help them make a decision. But most importantly, keep the dialog going so that you can learn more about their needs, and then suggest a meeting in which you can provide them with some solutions (i.e., your pitch).
When customers tell you that they are "just looking" or still researching a solution, that tells you a world of information: They are considering making a move, but they are not quite ready or in a position to make a buy. This means they are future serious customers, and the last thing you should do is leave them alone.
Instead, tell them that you are there to help them gather the information they need in the hopes that you might do business with them in the future. Position yourself as a sort of "free consultant" as you again gather information on their needs and then offer them information that can help them make a decision in the future.
Moreover, keep the relationship going with follow-ups by signing them up for any information services, such as e-newsletters, that you offer so that they continue to benefit from your expertise and service. Tend to that kernel of a customer relationship and grow it into a serious sale.
In the following article, Gary White points out some simple truths about renting vs owning and identifies potential in the current market, whether your are looking at San Diego real estate or anywhere else in the country. Via Gary White~ Serving the Grand Rapids Real Estate Market, Call the Home Pro! (Flexit Realty "Flexible Real Estate Options"):
The Rent versus Owning is a question that has no simple answer.
It is based on the individual and/or family situation financially and personally.
Now that answer coming from a real estate broker you may find as an odd answer, but it is the truth. If you are paying rent and are starting out as a first time buyer owning may be the right thing for you. The reason? Simple interest rates are very low. In may cases you can make a monthly payment on a home for less than you area paying rent.
If you are a family renting an apartment, home or condo owning may be right for you as well.
You will gain privacy and personal pride of ownership. You will also have taxes, insurance and maintenance issues that you do not have when renting. You also may have a better environment for yourself or family because the landlord doesn't take care of maintenance issues in a timely manner.
When renting you cannot choose your neighbors just like the old saying you cannot choose your relatives!
You gain an income tax deduction for the interest you pay on your mortgage loan. Some buyers use other methods to buy such as a land contract or lease purchase option. These options may not have the same down payment requirements and usually have a higher interest rate because of that fact. You will also be able to deduct interest from these types of buyeing methods as well. There are many programs for buyers. There is also some assistance programs for lower income buyers. Evaluating the buy versus rent is more complex but definitely worth checking out.
Buying has always out performed renting over the years and the substance of how and why is simple. Owning property gains value over time. Right now the market is down in value. So buying in a down market gives you a larger upside growth over time. Those that bought in Michigan last year have less value than this year but over time that will turn around and out perform renting by a large margin if you purchase the right property at the right price. We are already seeing signs of economic changes.
Fewer listings on the market means fewer choices for buyers. If you want to know more about the advantages of home ownership give me a call. I will be glad to meet with you personally or send you my buyers guide.
If you live outside my service area (the Grand Rapids Real Estate Market, West Michigan Real Estateand Lake shore Properties) I will be happy to refer you to a professional in your area. You can also go to my website for Free Reports on Buying and Selling. You can download these reports and have your own copy, just hit print.
If you want to know a value of a property you are interested in purchasing give me a call.
I am a member of the Rental Property Owners Association (RPOA) in Grand Rapids, Michigan as well, let me know if you need help.
For Personal Service, Call: 616-784-2360 Email: GaryWhite@FlexitRealty.com
Gary L. White, Associate Broker
CRS, GRI, ABR, ePRO, AHS, SFR
It was standing room only at Church this evening for Christmas service. Now, if we could just wrap and package that dedication, joy, and hope then truly the world would be a much better place.
We came home, had a hot-buttered-rum (with and without the rum depending on age) and watched "Christmas Story"
Wishing you and yours a very Merry Christmas!
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San Diego Real Estate & Mortgage Loans | Robert T. Boyer, Ph.D. | VA Home Loan
La Jolla,
CA
More about me…
FHA Loan, VA Loan, Jumbo Loan,FHA Loans,VA Loans,Jumbo Loans
Address: ALL California,San Diego,La Jolla,Del Mar,Carmel Valley, Los Angeles,San Francisco,Orange, Ventura, Bay Area, San Diego, CA, 92130
Office Phone: (858) 442-1322
Email Me
The San Diego Real Estate Housing Market tends to lead the nation's real estate activities. This blog looks at current activity and trend data, including sales rates, months of inventory, median home price, unemployment, inflation, etc., with an intent to provide timely predictions for our market. Because such a large part of the current market is make up of San Diego Foreclosures and REOs we will also look deeply at how they affect the current environment. Additionally, specific market segments are monitored, such as La Jolla Real Estate, Del Mar Real Estate, Rancho Santa Fe Real Estate, and Carmel Valley Real Estate
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