The Reason for Our Recent Market Slowdown

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As we wrap up the summer, many of you are likely wondering where our market is headed now. The numbers for August are in, and they point to a trend you may have already noticed.

Things in the market have been a little sluggish lately. The number of sales is down about 12% year over year. This seems to be more due to lack of inventory as opposed to a lack of interest from buyers.

The number of multiple offers has also gone down, but 60% of all homes sold still received them. Also, 31% of homes are selling above list price.

We’ve seen a year over year appreciation of 7.4% in San Diego County.
 
So, where do we go from here? Pulsenomics recently released its home expectation survey for the third quarter. Pulsenomics makes these predictions for our market by going out and interviewing over 100 different economists, finance specialists, and Realtors nationwide.

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Due to lack of inventory, our market is a little sluggish lately.

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Using the information they gathered, they expected about a 5% appreciation overall for 2017. However, they expect the appreciation rate to steadily decline until about 2020. In 2020 and 2021, they expect the appreciation rate to stay level at about 3%.

Even with this decline in percentage, the prediction remains that our market will continue to appreciate for the next five years.

If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.

Get Creative With Your Down Payment By Using These 2 Programs

If you think you have to save a lot for your down payment, think again. I have two down payment assistance programs to share with you that will allow you to buy a home sooner than you think.

Looking to sell your San Diego home? Get a free home value report

Looking to buy a San Diego home? Click here for full MLS access

It’s getting late in the summer, and we’re seeing the same slump in sales activity we usually do this time of year. This slump, though, provides a great opportunity for buyers—especially if you’ve been frustrated throughout the year by multiple offer situations. There isn’t as much competition in the market right now, but inventory is growing.

If you’re a buyer and you’re saving up for a down payment because you think you currently can’t afford one, I have a couple great down payment programs to tell you about.

The first is an equity share program. There’s a company that will match up to 14.5% of your down payment in exchange for an equity share in your home. You need to put down at least 10% for an equity share program, and it’s capped at a $638,000 mortgage.

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These are two great down payment options.

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The second is the California Homebuyer’s Downpayment Assistance Program. This option is great for first-time homebuyers because it contributes up to 3% of the purchase price. This is primarily geared toward FHA buyers, and it allows you to put as little as 0.5% down. Since this program is a grant, it’s completely forgivable. This program does require you to take a class on homeownership, and there are income requirements, as well. You must also own the property for a certain amount of time.

Lastly, I want to share with you an app we agents use called Homesnap. This app offers real-time information about properties for sale (and even properties that aren’t for sale). All you have to do is take a picture of the house with your phone and it will provide you the information you need. It also lets you communicate with us if you want more specific information or would like to schedule a showing.

To download this app, visit www.homesnap.com/Max-Folkers.

If you have any questions about down payment options, the Homesnap app, you’re thinking of selling your home, don’t hesitate to give me a call or send me an email. I’d be happy to assist you.

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.

Looking to sell your San Diego home? Get a free home value report

Looking to buy a San Diego home? Click here for full MLS access

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!