Posts Tagged ‘renters’

Why NOW is the Time to Sell Your Home

Tuesday, October 17th, 2017

Many people have been on the fence about selling this past year, due to the fact that inventory is low and they are concerned they may not find replacement housing right away – I personally have been assisting multiple sellers with such concerns. That of course keeps the inventory stagnant and prices high – a perpetual Catch-22. However, there are some conditions that make the market right now the BEST time for sellers to sell…so if you are considering selling, consider the following:

Inventory is still low and prices high. Normally at this time we should see a 6 month inventory supply, but there is only a 4.2 month supply on the market according to the National Association of Realtors (this number has even dropped since this time last year). Although we have seen homes dropping prices quite often in the last few months here in San Diego County, as well as longer market times, it is still a great time to get the best price for the sale of your home as long as you are realistic. Homes that are not priced far above comparable value and offer positive qualities can still sell at strong (higher than average) prices. But this may not be the case as we head toward the end of the year and into the next year, depending on several factors.

Buyer Demand is Higher. Compared to this time last year, buyer demand for homes is higher. Historically low interest rates and sustained job creation fuel the demand, but inventory levels prevent many from finding the right home. How long these buyers will remain in the market is hard to say, but many have decided to rent because they could not find homes, thus taking them off the market for at least a year in most cases.

Natural Disasters Will Help Fuel Buyer Demand. Due to the recent wave of hurricanes in the south many homeowners have been displaced and may soon join the ranks of buyers in other areas, making the demand even higher, OR they could become renters and take rental inventory off many markets – causing purchases to become the only option for many looking for places to live. There is a possibility this could push prices up in some areas.

Proposed Tax Changes Could Effect Demand. There are several proposed tax changes that could effect the buyer demand levels, including changes to real estate deductions. If this happens there is the possibility that sellers may elect to stay rather than move up (to save money), OR buyers may decide to rent to avoid higher tax bills. This remains to be seen but it is something to consider.

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If you are considering selling it is important to get an idea of what is going on in your specific market area. Talk to a real estate area professional and crunch the numbers. As always, the real estate market will fluctuate with the ebb and flow of many factors, but if you want to get a high price for your home now is a great time to do your research and prepare to sell.

 

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Renters Looking to Buy? San Diego, Carlsbad, San Marcos Named Toughest Housing Markets

Monday, May 12th, 2014

A new study was just released that named San Diego, Carlsbad and San Marcos the #1 toughest housing markets in which renters can purchase homes. For every 100 homes available for purchase, there are slightly over 5 renters who can qualify to buy the home (according to research firm SNL Real Estate). home_sold

The recent market increase has made it more difficult for people hoping to purchase homes, pricing many out of the market. Prices in San Diego county rose 19.4% year over year as of January 2014, resulting in a rise in the median home price, to just under $477,000. Today’s buyer needs to earn over  $81,000 to purchase a median-priced home.

While many economists and real estate experts believe the price increase is cooling off, there are other factors in play that could continue to make it difficult to afford a home here in San Diego county:

Low inventory still plagues many parts of the county, so that many buyers are competing for the same properties…which of course could have the effect of actually increasing prices but we will have to see.

The ability to obtain financing is still very challenging for many would-be buyers. Lenders are not making it any easier to obtain loans. Plus, with new reports showing that 1/3 of home sales are paid for in cash (click here for more on this statistic), this also presents a challenge for a buyer who needs to obtain a loan – most sellers will obviously opt for a cash buyer over one who has to qualify for a loan.

If you are a renter looking to purchase, there are a few things you should do to get ready, so that once you find the right home you are able to make a solid offer:

images–  Get preapproved. It is very important to speak with a mortgage professional so that you know exactly how much mortgage you can afford. I highly recommend a formal preapproval, where the mortgage professional analyzes your earnings, debt and other factors to come to an accurate assessment of your ability to purchase.

–  Find a great real estate agent. You need to find someone who has experience, patience, and really is an expert in the areas in which you wish to hunt for properties. Your agent needs to be on your team, whether you like to search for properties on your own or have her/him do so for you. He or she can help educate you on different areas/neighborhoods, etc., so take advantage of their expertise. It costs you nothing, but will be a big benefit to you if you have someone who can answer questions provide further information, and walk you through all the paperwork and legalities.

–  Stop spending on any big ticket items. If you are in the market to purchase a home, it is imperative that you stop spending money on any big items, like furniture, cars or trips. Lenders scrutinize all spending during the loan approval period, so just to be safe it is smart to stop spending from the start.

The bottom line is to not be discouraged if you are a renter looking to purchase a home. In fact, in March of this year 30% of homes were purchased by first time buyers, so it can happen! Just make sure to get all your ducks in order so that you are in the best position to make an offer when you do find that perfect home.

 

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Buying vs. Renting in Southern California

Sunday, May 26th, 2013

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Renters Beware: Rent Hikes Coming Soon

Tuesday, March 15th, 2011

If you are a renter you should be aware that rent hikes are on the way, and they will likely be large enough to make a dent in your monthly expenses.

Over the last decade average rental rates have increased about 1% a year, and as high as 5% depending on the area. Some areas like Austin and Boston saw rental increases in the last year of 17-30%. The housing crisis has made the demand for rental properties higher, and with vacancy rates dropping landlords are cashing in on the opportunity. Many renters will have not choice but to either pay more or move to a less expensive area.

Rent increases are not arbitrary. Landlords must follow rules when instituting an increase. It is important to understand your state laws to ensure that you are provided with sufficient notice and that the rent increase is fair. For example, in California a landlord must provide tenants 30 days notice in writing if the increase is 10% or less. Such notice must be provided at any time during the 12 month period during which the increase is to take effect.

If the increase is to be greater than 10% notice must be given at least 60 days in advance. There are formulas to calculate percentages of rent increase. No matter the increase amount, landlords must either deliver the written notice to you personally, or mail it. If it is mailed an extra five days are tagged on to the notice period to ensure proper delivery (35 or 65 days, depending on the increase, from the date of mailing).

Rent increases also depend on whether you have a month-to-month tenancy or a tenancy for a specific period, such as a year. Make sure to understand how your state laws apply to you. The rising number of rent increases should last for some time, but will eventually get better as the market stabilizes.

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