I came across this article and wanted to share it with you. It has some great informations and helps expose some of the myths about foreclosure.
Foreclosure myths, debunked
Friday, June 24, 2011
Cash Buyers Scooping Up Homes
All-cash buyers scooping up homes
Source: USA TODAY
Publication date: June 22, 2011
By Julie Schmit, USA TODAY
Cash buyers are snapping up homes in markets nationwide, betting that deals won't get much better.
Last month, all-cash buyers accounted for 30% of existing home sales, up from 25% in May 2010, and 12% two years ago, says the National Association of Realtors.
Cash buyers, who are mostly investors, accounted for at least 30% of existing-home sales for the fifth-straight month, the association says. They hit 35% of buyers in March.
The cash buyers are enticed by low prices and potential rental income, economists say. But while their activity has helped curb price drops, price increases have yet to follow.
In May, the median price of an existing single-family home fell 4.5% to $166,700 from a year ago, the association reported Tuesday. Volume also dropped. Existing home sales in the month including single family, condos and townhouses were down 15% from the previous May, when a federal tax credit boosted sales.
Without cash buyers, "We would be in much worse shape than we are," says Jim Gillespie, CEO of Coldwell Banker Real Estate. "They recognize that this is the smartest time to buy," because U.S. home prices are 33% below their 2006 peak.
Cash buyers are especially prevalent in markets where prices have fallen the most, often areas hard hit by foreclosures.
In Las Vegas, the foreclosure capitol of the U.S. for the past four years, cash buyers accounted for 49% of first-quarter sales vs. 20% in the first quarter of 1997, says data from real estate site Zillow.com. In that area, home prices are almost 60% off their 2006 peak.
In the Miami-Fort Lauderdale area, 63% of first-quarter buyers paid in cash, vs. 39% in 1997's first quarter, Zillow says.
Phoenix is also seeing more cash buyers, 44% in the first quarter up from 25% in the same 1997 period, Zillow data show.
The big numbers are "positive news," says Stan Humphries, Zillow chief economist. "These are people who're getting back into the market because they see good value."
Cash buyers often get better deals because sellers know their offers won't fall through for lack of financing, says Walt Danley, president of the luxury real estate firm The Walt Danley Group in Arizona. A discount of up to 5% is typical, he says.
While Danley sees many foreign buyers paying cash, investors looking for rentals are also big cash buyers.
Given low prices, they can buy homes, rent them and be immediately cash-flow positive, says Paul Dales, an economist for Capital Economics.
(c) Copyright 2011 USA TODAY, a division of Gannett Co. Inc.
A service of YellowBrix, Inc.
Source: USA TODAY
Publication date: June 22, 2011
By Julie Schmit, USA TODAY
Cash buyers are snapping up homes in markets nationwide, betting that deals won't get much better.
Last month, all-cash buyers accounted for 30% of existing home sales, up from 25% in May 2010, and 12% two years ago, says the National Association of Realtors.
Cash buyers, who are mostly investors, accounted for at least 30% of existing-home sales for the fifth-straight month, the association says. They hit 35% of buyers in March.
The cash buyers are enticed by low prices and potential rental income, economists say. But while their activity has helped curb price drops, price increases have yet to follow.
In May, the median price of an existing single-family home fell 4.5% to $166,700 from a year ago, the association reported Tuesday. Volume also dropped. Existing home sales in the month including single family, condos and townhouses were down 15% from the previous May, when a federal tax credit boosted sales.
Without cash buyers, "We would be in much worse shape than we are," says Jim Gillespie, CEO of Coldwell Banker Real Estate. "They recognize that this is the smartest time to buy," because U.S. home prices are 33% below their 2006 peak.
Cash buyers are especially prevalent in markets where prices have fallen the most, often areas hard hit by foreclosures.
In Las Vegas, the foreclosure capitol of the U.S. for the past four years, cash buyers accounted for 49% of first-quarter sales vs. 20% in the first quarter of 1997, says data from real estate site Zillow.com. In that area, home prices are almost 60% off their 2006 peak.
In the Miami-Fort Lauderdale area, 63% of first-quarter buyers paid in cash, vs. 39% in 1997's first quarter, Zillow says.
Phoenix is also seeing more cash buyers, 44% in the first quarter up from 25% in the same 1997 period, Zillow data show.
The big numbers are "positive news," says Stan Humphries, Zillow chief economist. "These are people who're getting back into the market because they see good value."
Cash buyers often get better deals because sellers know their offers won't fall through for lack of financing, says Walt Danley, president of the luxury real estate firm The Walt Danley Group in Arizona. A discount of up to 5% is typical, he says.
While Danley sees many foreign buyers paying cash, investors looking for rentals are also big cash buyers.
Given low prices, they can buy homes, rent them and be immediately cash-flow positive, says Paul Dales, an economist for Capital Economics.
(c) Copyright 2011 USA TODAY, a division of Gannett Co. Inc.
A service of YellowBrix, Inc.
Wednesday, June 15, 2011
Yesterday I posted on Facebook that 4 media giants were all saying that now is the time to buy a house. I also had an office meeting that reiterated this point.
1. Here in San Diego county prices are way down, making homes so much more affordable than in recent years. Locally the value has dropped by 5%-7% since earlier this year.
2. Inventory is up. There are many great properties to chose from. The odds of you finding a home that really suits your needs has never been better.
3. Interest rates are very low. Yesterday, FHA and VA rates were at 4.25%! It is unlikely that they will go lower. Fannie Mae and Freddie Mac are predicting interest rates to go up by 1% by year end.
You may be asking yourself why you should buy if prices are dropping and that is a good question. First you ned to understand that their is difference between "price" and "cost". The "price" is the purchase price, the amount the home sold for. The "cost" is how much you will pay for the loan, your monthly payment and how much you will pay over the long run.
When I work with buyers they are typically most interested in how much their monthly payement will be and if that payment is affordable. But at the same time they seem to get hung up on the price. This could hurt them in the end. They are concerned about "prices" declining and want to wait for the bottom to purchase. But the reality is no one knows where the bottom is until prices start to go back up and you have missed the bottom anyway. Not only that but the same property will now "cost" them more. Did you know that a property's value would need to decline by about 10% in order to come close to compensating for a 1% increase in interest rates!
Investors always seem to be ahead of the general public when it comes to buying at the right time. They do not wait until it is too late. What are investors doing now? They are buying! Last month 39% of the real estate transactions were bought by investors. More specifically, last week for one listing, 4 cash offers came in. These investors had proof of funds of over $10,000,000. These people know what they are doing! They have amassed a fortune by timing things correctly. They know the returns are coming in, properties are cash flow, the returns exceed the current stock market and most importantly that NOW is the time to buy.
Here are the links to the articles I referenced yesterday. Take a look and think about it. If you are planning on buying, don't put it off. Call me today!
Wall Street Journal
CBS Money Watch
Forbes Magazine
National Public Radio
1. Here in San Diego county prices are way down, making homes so much more affordable than in recent years. Locally the value has dropped by 5%-7% since earlier this year.
2. Inventory is up. There are many great properties to chose from. The odds of you finding a home that really suits your needs has never been better.
3. Interest rates are very low. Yesterday, FHA and VA rates were at 4.25%! It is unlikely that they will go lower. Fannie Mae and Freddie Mac are predicting interest rates to go up by 1% by year end.
You may be asking yourself why you should buy if prices are dropping and that is a good question. First you ned to understand that their is difference between "price" and "cost". The "price" is the purchase price, the amount the home sold for. The "cost" is how much you will pay for the loan, your monthly payment and how much you will pay over the long run.
When I work with buyers they are typically most interested in how much their monthly payement will be and if that payment is affordable. But at the same time they seem to get hung up on the price. This could hurt them in the end. They are concerned about "prices" declining and want to wait for the bottom to purchase. But the reality is no one knows where the bottom is until prices start to go back up and you have missed the bottom anyway. Not only that but the same property will now "cost" them more. Did you know that a property's value would need to decline by about 10% in order to come close to compensating for a 1% increase in interest rates!
Investors always seem to be ahead of the general public when it comes to buying at the right time. They do not wait until it is too late. What are investors doing now? They are buying! Last month 39% of the real estate transactions were bought by investors. More specifically, last week for one listing, 4 cash offers came in. These investors had proof of funds of over $10,000,000. These people know what they are doing! They have amassed a fortune by timing things correctly. They know the returns are coming in, properties are cash flow, the returns exceed the current stock market and most importantly that NOW is the time to buy.
Here are the links to the articles I referenced yesterday. Take a look and think about it. If you are planning on buying, don't put it off. Call me today!
Wall Street Journal
CBS Money Watch
Forbes Magazine
National Public Radio
Monday, June 13, 2011
Condo For Sale in San Diego
The price was just reduced today! Do you have a student who will be going to Grossmont College this fall? Here is a great 2 bedroom condo for sale in the area. It is very conveniently located. Take a look and pass it on.
Tuesday, June 7, 2011
Rancho San Diego Area Schools
When parents are considering buying a home in a new area, local schools become a major factor. It is important that you do your research. Here is a list schools in the Rancho San Diego area along with their contact information and website links. Even if you are a young couple who doesn't have kids you should take this into consideration when you buy a home. Take it from me, time flies and you never know what your future holds. You may think you are going to own the new home for only a couple of years but before you know if, you could have been there for 10 and have 2 school age kids!
Avocado Elementary - 3845 Avocado School Road, La Mesa, CA 91941, Phone: 619.588.3100
AvocadoElementary
Fuerte Elementary - 11625 Fuerte, El Cajon, CA 92020, Phone: 619.588.3134
Fuerte Elementary
Jamacha Elementary - 2962 Jamul Drive, El Cajon, CA 92019, Phone: 619.441.6150
Jamacha Elementary
Rancho San Diego Elementary - 12151 Calle Albara, El Cajon, CA 92019, Phone: 619.588.3211
Rancho San Diego Elementary
Vista Grande Elementary - 1908 Vista Grande Road, El Cajon, CA 92019, Phone: 619.588.3170
Vista Grande Elementary
Middle Schools
Hillsdale Middle School-1301 Brabham St. El Cajon 92019, Phone: 619.441.6156
Hillsdale Middle School
High Schools
Valhalla High Shool - 1725 Hillsdale Road, El Cajon, CA 92019. Phone: 619-593-5300.
Vallhalla High School
Steele Canyon High School - 12440 Campo Rd, Spring Valley, CA 91978, Phone: 619.660.3500
Steele Canyon High School
Colleges
Cuyamaca College - 900 Rancho San Diego Parkway, El Cajon, CA 92019, Phone: 619.660.4000
Cuyamaca College
School District Links
Cajon Valley School District
Grossmont High School District
Avocado Elementary - 3845 Avocado School Road, La Mesa, CA 91941, Phone: 619.588.3100
AvocadoElementary
Fuerte Elementary - 11625 Fuerte, El Cajon, CA 92020, Phone: 619.588.3134
Fuerte Elementary
Jamacha Elementary - 2962 Jamul Drive, El Cajon, CA 92019, Phone: 619.441.6150
Jamacha Elementary
Rancho San Diego Elementary - 12151 Calle Albara, El Cajon, CA 92019, Phone: 619.588.3211
Rancho San Diego Elementary
Vista Grande Elementary - 1908 Vista Grande Road, El Cajon, CA 92019, Phone: 619.588.3170
Vista Grande Elementary
Middle Schools
Hillsdale Middle School-1301 Brabham St. El Cajon 92019, Phone: 619.441.6156
Hillsdale Middle School
High Schools
Valhalla High Shool - 1725 Hillsdale Road, El Cajon, CA 92019. Phone: 619-593-5300.
Vallhalla High School
Steele Canyon High School - 12440 Campo Rd, Spring Valley, CA 91978, Phone: 619.660.3500
Steele Canyon High School
Colleges
Cuyamaca College - 900 Rancho San Diego Parkway, El Cajon, CA 92019, Phone: 619.660.4000
Cuyamaca College
School District Links
Cajon Valley School District
Grossmont High School District
Friday, June 3, 2011
Alpine REal Estate Market Report May
Here is the Alpine real estate market report for the month of May 2011. It includes the active, pending and sold signle family detached properties.
91901
There are currently 87 active listings ranging from $158,400 for 2 bedroom, 1 bathroom, 1082 sqft to $2,599,500 for 3 bedroom, 3 bathroom, 3000 sqft.
28 properties are pending, currently in escrow.
11 properties sold (closed escrow) ranging from $185,000 for2 bedroom, 1 bathroom, 840 sqft to $625,000 for 4 bedroom, 3 bathroom, 3504 sqft. The average time on the market was 73 days.
Click here for more Alpine Information
91901
There are currently 87 active listings ranging from $158,400 for 2 bedroom, 1 bathroom, 1082 sqft to $2,599,500 for 3 bedroom, 3 bathroom, 3000 sqft.
28 properties are pending, currently in escrow.
11 properties sold (closed escrow) ranging from $185,000 for2 bedroom, 1 bathroom, 840 sqft to $625,000 for 4 bedroom, 3 bathroom, 3504 sqft. The average time on the market was 73 days.
Click here for more Alpine Information
El Cajon Real Estate Market Conditions
Here is the real estate market report for El Cajon for the month of May 2011. I have included information for the active, pending and sold listing for single family detached homes only. I have included real estate information for all 3 zip codes in El Cajon.
92019
There are currently 104 active listings ranging from $200,000 for 3 bedroom, 2 bathroom, 945sqft to $2,400,000 for 4 bedroom, 6bathrooms, 5890 sqft.
57 properties are pending (currently in escrow).
33 properties sold in May (closed escrow), ranging from $151,000 for 3 bedroom, 1 bathroom, 1280 sqft to $829,900 for 4bedroom, 3 bathroom, 3660 sqft. The average time on the market was 67 days.
92020
There are currently 103 active listings ranging from $165,000 for 4 bedrooms, 2 bathroom, 780 sqft to $929,000 for 5 bedroom, 6 bathroom, 4198 sqft.
55 properties are pending (currently in escrow).
30 properties sold (closed escrow) ranging from $210,000 for 4 bedroom, 2 bathroom, 1810 sqft to $565,000 for 4 bedroom, 3 bathroom, 3441 sqft. The average time on the market was 75 days.
92021
There are currently 121 active listings ranging from $189,900 for 2 bedroom, 1 bathroom, 1029 sqft to $1,795,000 for 3 bedroom, 3 bathroom, 5500 sqft.
66 properties are pending (in escrow)
22 properties sold (closed escrow) ranging from $119,000 for 3 bedroom 2 bathroom 993 sqft to $634,000 for 3 bedroom, 3 bathroom, 3298 sqft. The average time on the market was 78 days.
Want to see how it compares to last month? Click the link below.
Click here for more El Cajon Information
92019
There are currently 104 active listings ranging from $200,000 for 3 bedroom, 2 bathroom, 945sqft to $2,400,000 for 4 bedroom, 6bathrooms, 5890 sqft.
57 properties are pending (currently in escrow).
33 properties sold in May (closed escrow), ranging from $151,000 for 3 bedroom, 1 bathroom, 1280 sqft to $829,900 for 4bedroom, 3 bathroom, 3660 sqft. The average time on the market was 67 days.
92020
There are currently 103 active listings ranging from $165,000 for 4 bedrooms, 2 bathroom, 780 sqft to $929,000 for 5 bedroom, 6 bathroom, 4198 sqft.
55 properties are pending (currently in escrow).
30 properties sold (closed escrow) ranging from $210,000 for 4 bedroom, 2 bathroom, 1810 sqft to $565,000 for 4 bedroom, 3 bathroom, 3441 sqft. The average time on the market was 75 days.
92021
There are currently 121 active listings ranging from $189,900 for 2 bedroom, 1 bathroom, 1029 sqft to $1,795,000 for 3 bedroom, 3 bathroom, 5500 sqft.
66 properties are pending (in escrow)
22 properties sold (closed escrow) ranging from $119,000 for 3 bedroom 2 bathroom 993 sqft to $634,000 for 3 bedroom, 3 bathroom, 3298 sqft. The average time on the market was 78 days.
Want to see how it compares to last month? Click the link below.
Click here for more El Cajon Information
Jamul Real Estate Market Report
Here is the May 2011 Real Estate Market report for Jamul.
There are currently 38 Active listings, ranging from $114,000 for 2 bedroom, 1 bathroom, 912 sqft to $1,930,000 for 4 bedroom, 5 bathroom, 4502 sqft.
15 properties are pending (currently on the market).
7 properties sold (closed escrow) in May, ranging from $110,000 for 5 bedroom, 5 bathroom, 2070 sqft (not a typo) to $537,000 for 7 bedroom, 5 bathroom, 5821 square feet. The average time on the market was 87 days.
Click here for more Jamul Information
There are currently 38 Active listings, ranging from $114,000 for 2 bedroom, 1 bathroom, 912 sqft to $1,930,000 for 4 bedroom, 5 bathroom, 4502 sqft.
15 properties are pending (currently on the market).
7 properties sold (closed escrow) in May, ranging from $110,000 for 5 bedroom, 5 bathroom, 2070 sqft (not a typo) to $537,000 for 7 bedroom, 5 bathroom, 5821 square feet. The average time on the market was 87 days.
Click here for more Jamul Information
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