Thursday, April 30, 2009

Are we at the Bottom??

Are we at the bottom?

I get that question almost every day. My answer is always, “I don’t know”. It’s impossible to gauge or tell when or where the bottom is. But if we imagine this market like a valley, we’re definitely in the “valley”. Whether were heading down further or on our way back up, time will tell. Personally I think we are heading down further….does that mean we shouldn’t buy right now? Should wait until that mysterious alluring “rock bottom status”? I say no. As an investor, you’re going to buy if the property pencils….that’s easy. But as an “owner occupying” homebuyer or first time buyer, how do you know if you should be buying right now?

Here’s why I believe you should be buying right now:

We’re in a “perfect storm” situation for future homeowners looking to get into the market. Rarely do we have this combination of buyer incentives all at once:

Low home prices. Today 50% of San Diegans can afford the median home price but just 3 years ago only 9% of SD could afford a home.

Incredibly low interest rates. With 30 year fixed rates staying in the high 4’s to low 5s and no big swings in the market, buyers can enjoy low fixed rates to help them afford more house.

Sellers, including REOs, are paying closing costs. Right now sellers are still paying closing costs. Sellers are willing to do this because of they need to sell. But as more buyers come out they won’t be forced to cough up the extra money to pay the buyer’s costs.

Tax Credits! Right now if you buy before December 1st, 2009 you can be eligible for an $8000 tax credit. A dollar for dollar tax credit. And, unlike 2008’s version this one does not have to be paid back. But you have to close before December. California is offering a $10k tax credit for new homes. That credit has certain allotted funds set aside and they are already 25% used.

It’s true we may see prices drop more this year. But the buyers are coming out! A lot of buyers that were on the fence, watching the market, are now jumping in and writing offers. The amount of clients, that I have pre-approved, and are now actively shopping and getting out bid or receiving counter offers is increasing. And as more buyers come out; the “deals” out there are going to see activity. (A Realtor in your area could advise you further, but from what I’m seeing if something is priced well its selling.)

If you are planning on living in the home, then I say, go for it. As long as you can afford the payments each month and love the home don’t let the possibility of prices dropping stop you from jumping in. Over the long term the home values will come back. So unless you’re your going re-sell it next year…I wouldn’t be afraid of not being at the “very rock bottom” of this market. There’s plenty of inventory out there and plenty more that’s going to hit the market soon. So we’re a ways off from seeing this market turning around. But with the amount of buyer incentives available today, there’s no reason to wait! The low interest rates alone may offset a price decline. Not to mention the additional tax incentives available now.

What do you think? Are you shopping right now? Tell me your experiences and the area you are looking in.

Tuesday, April 28, 2009

Lower your Property Taxes in San Diego!

Have property values in your neighborhood dropped? You may be eligible to lower your property taxes in San Diego. You have until May 30th.

Here's the link, from the County Assessor, to get the form!

http://arcc.co.san-diego.ca.us/docs/calrev.pdf

Fill it out and send it in. Its easy to do. Let me know if you need help.

Dave

Monday, April 27, 2009

House Prices Climb Unexpectedly in Feb

Here’s an interesting article from Mortgage News Daily

House Prices Climb Unexpectedly in February

House prices unexpectedly rose in February, according to a report from the Federal Housing and Finance Administration on Wednesday.
The report showed a 0.7% month-over-month increase in U.S. house prices, following a downwardly revised 1.0% increase in January. Economists were expecting a 0.7% drop.
The largest increase was in the Pacific region, up by 3.8%, and the West South Central region, with prices climbing 1.9% month-over-month. In the West North Central region, home prices were up 1.5% and the New England area saw a 2.2% jump in prices.
The largest decrease came in the East North Central region, down 1.2%, reversing a 3.3% increase the month prior. Prices were down 0.8% in the South Atlantic region and down 0.2% in the East South Central region.
On an annual basis, house prices are down 6.5% from February 2008.
By Megan Ainscow and edited by Stephen Huebl©CEP News Ltd. 2009

See it here as well http://www.mortgagenewsdaily.com/04222009_house_prices.asp
A couple weeks ago I was at the Poway Realtor Caravan and another loan officer there was asked to introduce himself and say a few words. He told a quick story I thought I’d share with you.

He explained that he met with some new clients and they brought with them a quote they had received online. He couldn’t beat the closing costs they were being promised. So, he suggested they call the lender up, have them prepare a Good Faith Estimate and get an idea of exactly this internet lender was offering. The clients called from their cell phone and after a ½ an hour of being on hold finally spoke with someone who could NOT help them with their request.

As loan officers, Realtors, Title reps, there will always be someone out there cheaper…someone else can come in and undercut our offer by a few dollars. But the reason most of us have survived this market over the last few years isn’t price, its service. We can provide to our clients something more than a small discount. We can provide peace of mind and a quality of service. At the end of the day, I am here to help my clients. I truly believe I can offer something more than any website or online quote can.

95% of my business comes from referrals. My past clients are happy to refer me to their friends and family because they know I will do my best to help them. In this current market that means a lot.