We Just Broke a Record in Our Market

Today I have big news for our local market: We have finally set a new high for the median home price in San Diego County.

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June has just begun, so I wanted to stop in with a quick market update.

The big news is that we finally did it. We have set the new high in San Diego County for the median house price. Right now, the median house price is at $525,000. Believe it or not, the last peak we had was way back in 2005 at the top of the housing bubble.

If you adjust for inflation, we’re still not quite up to the $644,000 that would signify a new high but essentially, we have done that at $525,000.

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June and July should be strong months for our real estate market.

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If you look at the historical trends of 3% to 4% appreciation that we’ve seen in real estate for the last 80 years, then we are still a ways below that trend line, which leads many people to believe that we still have room to grow.

Now, inventory and low interest rates are still driving appreciation, and we won’t see a fundamental shift there anytime soon. June and July should be strong months for our market before things start to cool down in late summer and early fall.

Meanwhile, our office is under construction. We’ll let you all know about our grand opening as soon as we are officially moved into 4112 Napier Street in the heart of Bay Park.

In the meantime, if you have any questions about our current market, give me a call or send me an email. I would be happy to help you!

You Don’t Need a Down Payment

What's the biggest obstacle to homeownership for prospective buyers?

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According to a recent survey, not being able to save up enough money for a down payment comes in at the top of the list. 55% of prospective homebuyers cited this as their main stumbling block to achieving homeownership.

With the continuing growth of home prices, things aren't getting any easier for them. In fact, homeownership rates reached a 20-year low last November.

It might be hard to imagine, but just a decade ago many lenders offered easy, no-money-down mortgages. Anyone with a pulse could qualify for one. However, after the financial crisis, mortgage standards have become more restrictive. A typical mortgage now requires a 20% down payment.

If you have decent credit and a steady income, you might also qualify for a number of specialized programs that require little or no down payment.

First, there's the USDA loan, which is valid for homes in certain regions, such as rural and suburban areas. With zero money down and lenient credit requirements, the USDA loan can be a great choice..

Second, there’s the VA loan, which you can apply for if you or your spouse served in a branch of the military. It's possibly the most generous zero-money-down mortgage because of low interest rates and low closing costs.

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55% cited the lack of a down payment as their main stumbling block.

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Third, there's the FHA loan. It does require a 3.5% down payment, but that is much more achievable than the 20% required for a conventional mortgage. There are also a number of credit unions and first-time homebuyer programs that might apply to your particular situation.

There’s one more important thing you should know. If you decide to get one of these no-money-down mortgages, chances are good you will have to pay private mortgage insurance, which can drive up your monthly payments. Private mortgage insurance will disappear after your mortgage balance is under 80%, and the money you do pay will be tax deductible in most cases.

As you can see, there are lots of options to make owning a home a reality for you, even if you haven't saved up tens of thousands of dollars.

If you need any advice on getting a no-money-down loan, give me a call at 619-977-8364. I can put you in touch with some experienced area lenders who can answer your questions and help get you started. I look forward to hearing from you soon.

Why the San Diego Market's Depreciation Has Trended Down

I wanted to stop by with an update on the San Diego market so far in 2017 and also let you know about some upcoming events that we'd love to see you at.

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Looking back, we can see that 2016 was a great year for the San Diego real estate market. We led the nation several times in appreciation in the Case-Shiller Index, but the early numbers for 2017 show that some other metropolitan areas are taking the lead. San Diego has actually fallen to 14th on that list. The San Diego market is still appreciating, but not as much as some of those other markets.

After about 6% or 7% appreciation in 2016, some predict we'll see that slow a little bit. This is probably because many areas in San Diego have already surpassed their all-time highs in values. You may have even experienced how homes are flying off the shelves.

We've seen a lot of activity this quarter, likely due to interest rates rising, causing people to jump off the fence and lock in a rate while they're low. This year, we expect a lot of early appreciation to take place in the first part of the year; April and May have typically been our market's busiest months.

As for inventory, we're at just under 5,000 homes on the market for San Diego County. As interest rates continue to fuel activity, upward pressure on prices will be fueled too until something dramatic happens that could change inventory levels.

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Interest rates are causing people to jump off the fence and buy a home to lock in a low rate.

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There are a few other events here in San Diego coming up that I wanted to tell you about. The first is The Taste of Morena on April 26th from 5 p.m. to 9 p.m. Here at our office at 4112 Napier Street, we're holding an open house as one of the sponsors. We're also selling tickets, so if you need tickets, you can get them from us for $25 apiece. There will be 23 different restaurant and bar stops where you'll get free samples from.

It's going to be a fun night, and we'll also have some drawings, drinks, and giveaways at our office as well. We'd love for you to join us.

On May 6th, we're also sponsoring the 21st Clairemont Garden Tour at 2151 Burgener Street. We'll have a booth there, and there will be a food truck nearby as well. It's a great opportunity to walk through and get some great ideas and inspiration for landscaping. We hope to see you there as well!

As always, give us a call or send us an email with any questions you have. We're happy to help.