SAN DIEGO REAL ESTATE AGENT BLOG » San Diego Home Buyer

10 Home Features Buyers Want

Michael Carter - San Diego Real Estate Agent — Mon, 01 Feb 2010 19:36:05 +0000

Home designers and builders speaking at the recent International Builders Show in Las Vegas say that buyers are seeking cost-effective features and rejecting things that don’t have lasting value.

“It’s all about family togetherness – casual living, entertaining and flexible spaces,” says Carol Lavender, president of the Lavender Design Group in San Antonio.

Paul Cardis, CEO of Avid Ratings, which conducts an annual survey of buyer preferences, identified these must-haves in new homes:

Large kitchens with islands
Energy efficiency, including energy-efficient appliances, super insulation, and high-efficiency windows.
Home offices
Main-floor master suite
Outdoor living space
Ceiling fans
Soaking tub in the master suite and/or an oversize shower with a seating area
Stone and brick exteriors rather than stucco or vinyl
Community walking paths and playgrounds
Two-car garages, but three-car garages are even more desirable

Source: MarketWatch, Steve Kerch (01/30/2010)

Michael Carter
San Diego Real Estate Agent
MTC Future Realty
(619) 488-5774

Big Rebound in Existing-Home Sales

Michael Carter - San Diego Real Estate Agent — Tue, 27 Oct 2009 03:11:36 +0000

Existing-home sales bounced back strongly in September with first-time buyers driving much of the activity, marking five gains in the past six months, according to the National Association of REALTORS®.

Existing-home sales—including single-family, townhomes, condominiums, and co-ops—jumped 9.4 percent to a seasonally adjusted annual rate of 5.57 million units in September from a level of 5.10 million in August, and are 9.2 percent higher than the 5.10 million-unit pace in September 2008. Sales activity is at the highest level in more than two years, since it hit 5.73 million in July 2007.

Lawrence Yun, NAR chief economist, said favorable conditions matched with a tax credit are boosting home sales. “Much of the momentum is from people responding to the first-time buyer tax credit, which is freeing many sellers to make a trade and buy another home,” he said. “We are hopeful the tax credit will be extended and possibly expanded to more buyers, at least through the middle of next year, because the rising sales momentum needs to continue for a few additional quarters until we reach a point of a self-sustaining recovery.”

Even with the improvement, Yun said the market is underperforming. “Despite spectacular gains in the stock market, principally from the financial sector recovery, most of the 75 million home-owning families have more wealth tied to their homes. Home values could soon turn consistently positive and help the broad base of middle-class families, but we are not there yet,” he said.

Conditions for First-Time Buyers
Early information from a large annual consumer study to be released on Nov. 13, the 2009 National Association of REALTORS® Profile of Home Buyers and Sellers,shows that first-time home buyers accounted for more than 45 percent of home sales during the past year. A separate practitioner survey shows that distressed homes accounted for 29 percent of transactions in September.

NAR President Charles McMillan said affordability conditions remain historically high. “Potential first-time buyers can take heart in that affordability conditions this year are the highest on record dating back to 1970, but with the first-time buyer tax credit scheduled to expire at the end of next month, people could hold back from entering the market,” he said. “Our read is that housing overshot on the downside because homes are selling for less than replacement construction costs in much of the country, and the home price-to-income ratio has fallen below the historical average.”

Inventory Falls
Total housing inventory at the end of September fell 7.5 percent to 3.63 million existing homes available for sale, which represents an 7.8-month supply at the current sales pace, down from an 9.3-month supply in August. Unsold inventory totals are 15.0 percent below a year ago.

“The current housing supply is the lowest we’ve seen in two and a half years,” Yun said. “If we could continue to absorb inventory at this pace, home prices would return to normal, modest appreciation patterns next year.”

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage fell to 5.06 percent in September from 5.19 percent in August; the rate was 6.04 percent in September 2008.

Home Sales Breakdown
The national median existing-home price for all housing types was $174,900 in September, which is 8.5 percent lower than September 2008. Distressed properties continue to downwardly distort the median price because they generally sell at a discount relative to traditional homes in the same area.

Single-family home sales rose 9.4 percent to a seasonally adjusted annual rate of 4.89 million in September from a pace of 4.47 million in August, and are 7.7 percent above the 4.54 million-unit level in September 2008. The median existing single-family home price was $174,900 in September, which is 8.1 percent below a year ago.

Existing condominium and co-op sales jumped 9.7 percent to a seasonally adjusted annual rate of 680,000 units in September from 620,000 in August, and are 9.7 percent above the 561,000-unit pace a year ago. The median existing condo price was $175,100 in September, down 11.7 percent from September 2008.

Here’s the region-by-region picture:

Northeast: Existing-home sales increased 4.4 percent to an annual level of 950,000 in September, and are 11.8 percent higher than September 2008. The median price was $234,700, down 7.0 percent from a year ago.
Midwest: Existing-home sales jumped 9.6 percent in September to a pace of 1.25 million and are 7.8 percent above a year ago. The median price was $147,600, which is 1.0 percent below September 2008.
South: Existing-home sales rose 9.0 percent to an annual level of 2.06 million in September and are 10.8 percent higher than September 2008. The median price was $153,500, down 7.6 percent from a year ago.
West: Existing-home sales surged 13.0 percent to an annual rate of 1.30 million in September and are 5.7 percent above a year ago. The median price in the West was $219,000, which is 15.0 percent below September 2008.

Source: NAR

Michael Carter
San Diego Real Estate Agent
MTC Future Realty
(619) 488-5774

SoCal home sales up, prices hold steady

Michael Carter - San Diego Real Estate Agent — Wed, 14 Oct 2009 14:29:46 +0000

Southern California home sales rose unexpectedly last month as price declines moderated, MDA DataQuick reported Tuesday.

There were 21,539 sales in the six-county region, including San Diego, up slightly from August’s 21,502, as low rates, federal tax credits and delayed closings reversed usual 9.5 percent August-September downturn. The total was 11 percent higher than in September 2008, the 14th straight year-over-year increase.

As reported Monday, San Diego’s sales rose from 3,306 in August to 3,454 last month.

The overall median for the region stood at $275,000, unchanged from August and 10.9 percent below year-ago levels, the smallest year-over-year decline since November 2007.

San Diego’s September median also was unchanged at $325,000 and just 0.9 percent below September 2008′s $328,000 – the smallest decline since June 2006, when there was a 1 percent annualized increase.

Orange and Ventura counties joined San Diego in seeing the first annual increase in existing-house prices in years.

Orange County’s median price for resale single-family homes rose 4.2 percent, from $480,000 in September 2008 to $500,000 last month, the first year-over-year increase since August 2007. Orange also was the first Southern California county to post an overall increase in median prices, up 0.9 percent to $429,000.

Ventura’s resale house median was up 2.2 percent, from $410,000 to $419,000, the first such year-over-year increase since October 2006.

San Diego, as reported Monday, saw its median house price increase 1.5 percent, from $360,000 in September 2008 to $365,500 last month, the first such gain since August 2007.

However, DataQuick said the increases were not due to increases in values as much as a change in market mix, with fewer low-cost distressed properties selling and more higher-priced homes closing escrow.

Regionwide foreclosure sales – houses and condos that had been foreclosed on at some point in the previous 12 months – represented 40.4 percent of all resales, down slightly from a revised 41.7 percent in August.

San Diego’s foreclosure count was 35.3 percent, up slightly from the revised 34.5 percent in August. It was the first month-to-month increase for San Diego since January, when the all-time high of 55 percent was reached.

The September boost was attributed to a possible delay in closings due to a slowdown in appraisals and the continued flow of short-sale transactions. These involve homes sold for less than the outstanding mortgage balance and usually take much longer to go through escrow because lenders must approve such sales.

Analysts also said buyers were eager to take advantage of the $8,000 federal first-time-homebuyer tax credit, scheduled to expire next month but now being considered for extension in Congress.

Low interest rates also are thought to be drawing in buyers.

Roger Showley

Michael Carter
San Diego Real Estate Agent
MTC Future Realty
(619) 488-5774

7 Tips for First-Time Home Buyers

Michael Carter - San Diego Real Estate Agent — Tue, 15 Sep 2009 02:23:13 +0000

A year after the financial collapse of 2008, the housing market is very different than it was before the foreclosure crisis.

Here are seven bits of wisdom from economists and financial planners for anyone contemplating a home purchase today:

Old-fashioned basics are more important than ever. The safest way to purchase a home is to put down 20 percent on a fixed-rate, 30-year (or less) mortgage.
Don’t become overconfident about income growth. Even though buyers in their 20s and 30s will likely see their incomes grow more quickly than previous generations, it is important to act sensibly when borrowing.
Anyone contemplating adding children to the family should calculate whether they could live on one income because having both halves of a couple work may turn out to be impractical.
Include a maintenance budget. Even new homes need upkeep and repairs.
Buyers who can’t afford their dream home now should opt for a starter home where they can save money each month for what they really want.
Consider a property that can be expanded and improved down the road when money is available.
No two buyers are the same, but they should all feel confident with the loan they enter into, no matter the size of the mortgage.

Source: The New York Times, Ron Lieber (09/12/2009)

Michael Carter
San Diego Real Estate Agent
MTC Future Realty
(619) 488-5774

Real Estate Hit Bottom?

Michael Carter - San Diego Real Estate Agent — Thu, 03 Sep 2009 16:59:11 +0000

As a real estate specialist we become knowledgeable of the housing trends. Many economist have preached that we have reached the bottom of the housing market. I think we’re going to see another surge of foreclosure in 2010 due to the ARM adjusting from 2005. This is inevitable because 2005 mortgage application was in record high as well as the housing market prior to the “crash”. I’ve informed my clients that their’s no hurry in purchasing a property and more bargain is on the horizon. Have we hit real estate bottom, I think not but real close.

Michael Carter
San Diego Real Estate Agent
MTC Future Realty
(619) 488-5774

New Home Sales Surge 9.6% in July

Michael Carter - San Diego Real Estate Agent — Thu, 27 Aug 2009 02:19:38 +0000

New U.S. home sales surged 9.6 percent in July, rising for the fourth straight month
and beating expectations as the housing market shows continuing signs of rebounding from its historic downturn.

The Commerce Department said Wednesday that sales rose to a seasonally adjusted annual rate of 433,000 from an upwardly revised
June rate of 395,000. Sales are now up 32 percent from the bottom in January, but off 69 percent from the frenzied peak four years ago.

Last month’s sales pace was the strongest since September and exceeded the forecasts of economists surveyed by Thomson Reuters, who
expected a pace of 390,000 units. The last time sales rose so dramatically was in February 2005.

The median sales price of $210,100, however, was still down 11.5 percent from $237,300 compared to the same time a year ago.
There were 271,000 new homes for sale at the end of July, down more than 3 percent from May. At the current sales
pace, that represents 7.5 months of supply, the lowest since April 2007. The decline means builders have scaled back on construction to the point where supply and demand are coming into balance.

Source: Associated Press, Alan Zibel (08/26/09)

Michael Carter
San Diego Real Estate Agent
MTC Future Realty
(619) 488-5774

U.S. home prices rise for a second straight month

Michael Carter - San Diego Real Estate Agent — Tue, 25 Aug 2009 14:37:13 +0000

NEW YORK (Reuters) – Prices of U.S. single-family homes rose for the second consecutive month in June, exceeding expectations and adding to evidence that the three-year housing slump is easing, Standard & Poor’s reported on Tuesday.

The S&P/Case-Shiller composite indexes of 10 and 20 metropolitan areas both rose 1.4 percent in June from May, almost three times the 0.5 percent increases of the month before. May’s increases were the first in nearly three years.

Optimism over a housing recovery blossomed last week after reports showed rising confidence among homebuilder and sales of existing homes rose in July for the fourth consecutive month. Economists expect the sector’s recovery could help the nation emerge from recession and further stabilize financial markets that have suffered their worst crisis since the 1930s.

The 10- and 20-city indexes have dropped 54.3 percent and 45.3 percent from their 2006 peaks, respectively.

”This is just another month that supports those that think we have bottomed, or are nearing a bottom,” said Jesse Litvak, a managing director in mortgage- and asset-backed securities at Jefferies & Co. in Stamford, Connecticut.

Economists in a Reuters poll expected the 20-city index increased by 0.2 percent in June.

S&P said its U.S. National Home Price Index recorded a 14.9 percent decline for the second quarter, compared with a 19.1 percent year-over-year drop in the first quarter. Versus the first quarter, prices rose by 2.9 percent in the first such increase in three years, S&P said.

Regionally, only Las Vegas and Detroit posted declines in June over May, of 2 percent and 0.8 percent, respectively. Cleveland home prices registered the greatest increases for the past two months, topping 4 percent each time.

by Al Yoon

Michael Carter
San Diego Real Estate Agent
MTC Future Realty
(619) 488-5774

Buyers Rush to Beat Tax Credit Deadline

Michael Carter - San Diego Real Estate Agent — Tue, 18 Aug 2009 01:59:35 +0000

Real estate professionals report that first-time home buyers are flooding the sale market, pressed to finalize a deal before the federal government’s $8,000 tax credit offer expires on Nov. 30.

Because mortgage approvals, residential inspections, and other steps in the buying process typically take about two months, buyers hoping to take advantage of the incentive will need to have a contract by the end of September.

The new flurry of activity now as house-hunters try to meet the deadline is triggering bidding wars and energizing the property market, which historically is slow at the end of summer. As a result, more homes are getting their full asking price.

Source: Chicago Tribune, Kathleen Lynn (08/14/09)

Michael Carter
San Diego Real Estate Agent
MTC Future Realty
(619) 488-5774

Pending Sales of Existing Homes in U.S. Surge 3.6%

Michael Carter - San Diego Real Estate Agent — Tue, 04 Aug 2009 15:11:35 +0000

Aug. 4 (Bloomberg) — The number of contracts to buy previously owned homes in the U.S. rose in June for a fifth straight month and exceeded economists’ forecasts, as lower prices and mortgage rates attracted buyers.

The 3.6 percent gain in the index of signed purchase agreements, or pending home resales, followed a 0.8 percent gain the prior month that was larger than previously estimated, the National Association of Realtors said today in Washington.

Foreclosure-driven declines in home values and tax incentives are putting houses within reach of first-time buyers, helping to stabilize the real-estate market, which has been the biggest drag on economic growth. At the same time, with mortgage rates no longer dropping and unemployment still rising, it may be months before a sustained recovery in housing takes hold.

“It’s a modest recovery, however these numbers are exceeding people’s expectations,” said David Sloan, senior economist at 4Cast Inc. in New York, one of three forecasters who shared the highest projection in a Bloomberg News survey. Nonetheless, he said, while there are “genuine signs” of recovery in housing and manufacturing, “the consumer is still the big sort of worry.”

Economists forecast the index would increase 0.7 percent, after an originally reported 0.1 percent gain in May, according to the median of 35 projections in the Bloomberg survey. Estimates ranged from a 1.2 percent drop to a 3 percent gain.

Incomes, Spending

A report from the Commerce Department today showed personal incomes tumbled 1.3 percent in June, more than forecast and the biggest drop in four years. The report showed spending rose 0.4 percent as prices climbed. Adjusted for inflation, purchases fell 0.1 percent, the report showed.

Incomes had jumped in May by the most in a year as tax cuts and the Obama administration’s stimulus package pushed the U.S. savings rate to a 15-year high.

Pending resales are considered a leading indicator because they track contract signings. NAR’s existing-home sales report tallies closings, which typically occur a month or two later. The group, whose pending data goes back to January 2001, started publishing the index in March 2005.

All four regions in the U.S. saw an increase in pending sales, today’s report showed, led by a 7.1 percent gain in the South and a 2.9 percent increase in the West.

“Activity has been consistently much stronger for lower priced homes,” NAR chief economist Lawrence Yun said in a statement, noting that first-time buyers must see their contracts close by Nov. 30 to get an $8,000 tax credit.

Affordability Index

The agents’ association said July 23 that home resales in June rose for a third straight month, supporting the case that the industry’s downturn, now in its fourth year, will end in 2009. The median price dropped 15 percent from a year earlier.

Sales of new homes soared 11 percent in June, the most since 2000, according to Commerce data released July 27.

The Realtors’ group’s affordability index, which takes into account home values, household incomes and mortgage rates, reached a record high of 178.8 in April. The index was at 159.2 in June. Readings greater than 100 indicate a family earning the median income can afford a median-priced home at current borrowing costs.

M.D.C. Holdings Inc., the Denver-based builder of Richmond America Homes, said July 31 that its orders had increased on a quarterly basis for the first time in four years.

“Building and sales activity for the industry overall improved from historic lows recorded earlier this year,” M.D.C. Chief Executive Officer Larry Mizel said in a statement.

Mortgage Rates

While mortgage rates have crept higher as the economy improves, they are still below year-earlier levels and near record lows. The average rate on a 30-year fixed mortgage was 5.25 percent in the week ended July 30, according to Freddie Mac, compared with 6.52 percent in the same week a year earlier. Rates reached an all-time low of 4.78 percent in late April.

A weak labor market is one reason economists say a rebound in housing will be slow to develop. The unemployment rate, which reached a 25-year high of 9.5 percent in June, may exceed 10 percent by early 2010, according to the median forecast of economists surveyed by Bloomberg last month.

The Labor Department is scheduled to release July payrolls data on Aug. 7.

Rising defaults and foreclosures may depress property values for months, making buying a home risky even though such purchases become more affordable and perpetuating a difficult climate for homebuilders.

Foreclosure filings reached a record 1.5 million in the first half of the year, according to data from RealtyTrac Inc., an Irvine, California-based seller of default data.

Ryland Group Inc., a California homebuilder that focuses on first-time buyers, reported a second-quarter loss on July 30 that was greater than analysts estimated. New orders fell 16 percent to 1,716 in the period, the company said.

By Courtney Schlisserman

Michael Carter
San Diego Real Estate Agent
MTC Future Realty
(619) 488-5774

Sharp Rise in New U.S. Home Sales as Prices Fall

Michael Carter - San Diego Real Estate Agent — Mon, 27 Jul 2009 14:54:12 +0000

WASHINGTON (AP) — The government said Monday that new home sales in the United States rose by the largest amount in nearly eight years last month, in another sign the housing market was bouncing back from the worst downturn in decades.

Sales rose 11 percent in June to a seasonally adjusted annual rate of 384,000, from an upwardly revised May rate of 346,000, the Commerce Department said.

It was the strongest sales pace since November 2008 and exceeded the forecasts of economists surveyed by Thomson Reuters, who expected a pace of 360,000 units. The last time sales rose so dramatically was in December 2000.

Sales have risen for three consecutive months. The median sales price of $206,200, however, was down 12 percent from $234,300 a year earlier and down nearly 6 percent from $219,000 in May.

The report is another encouraging sign that the beleaguered housing sector is finally coming back to life. Last Thursday, the National Association of Realtors reported that home resales posted a monthly increase of 3.6 percent in June.

There were 281,000 new homes for sale at the end of June, down more than 4 percent from May. At the current sales pace, that represents 8.8 months of supply — the lowest level since October 2007.

Fallout from the housing crisis has played a central role in the recession, now the longest since World War II. Foreclosures have spiked, homebuilders have slashed construction, and financial companies have lost billions.

By THE ASSOCIATED PRESS

Published: July 27, 2009

Michael Carter
San Diego Real Estate Agent
MTC Future Realty
(619) 488-5774