A new report from Zillow says many homes in San Diego County are selling in just under a week, but experts say the housing market is showing a few signs of cooling.
San Diego loan officer Mark Goldman says low supply and high demand are continuing to push home prices up in our region. That’s despite interest rates jumping in the last year to about 5 percent for a 30-year-fixed loan.
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The Federal Reserve’s decision to raise interest rates has many wondering if San Diego’s sky-high housing prices will finally come down, but analysts say the Fed’s move can only do so much in our supply-strained county.
“I get text messages, I get emails, I get calls,” said Loan Officer Mark Goldman, of C2 Financial.
“Not only do I get them for my private residence, but I also get calls because my company has the name realty in it.”
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10News recently reported about Zillow’s Zestimate program being used to purchase homes in San Diego.
Sellers can check if their homes qualify for an all-cash offer from Zillow and can typically expect this process to be faster than a typical transaction. While this may be a good opportunity for sellers who are looking to quickly sell their home, I don’t think it fits everyone.
Those who want to make sure they can get a top offer should go the more typical route and work with an agent that can market their home properly. I spoke with 10News about the competition we are seeing that is helping to drive up prices.
“Buyers are in tears because they can’t get an offer accepted. There’s a shortage of inventory that we haven’t seen before. It’s just very difficult for someone who is trying to buy a home.”
For the full article and more information, click here.
I spoke with San Diego 10News about some of the pros and cons of forbearance for borrowers. Like I’ve mentioned before if you are considering this option reach out to your loan provider first. I’m happy to answer any questions you may have and help you determine if this is the right option for you. If you can continue to make your regular mortgage payment, this is typically the best course of action for you.
A forbearance will put a pause on your mortgage payment, but that amount will still be due. Depending on your loan provider you may have the option to repay it at the end of your loan as a lump sum or have an extension added to your loan. You may also be able to add that amount into your monthly payments. This may provide some financial relief for borrowers who find themselves unable to make their mortgage payment, and the payback options should be discuss to fit your needs.
Once a borrower has elected forbearance on their loan, they should be aware that they may not be able to refinance on that loan for possibly 12 months after they are current with payments. Recently rates have been low and many borrowers have taken advantage of this to refinance and achieve a lower monthly payment. This option may not be available to those who refinance so be aware of this for future plans.
In market news, the rising number of forbearances have caused a shortage of cash flow. This will drive up the price of mortgages so future borrowers may find it harder to get a home loan.
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We continue to see rates dropping amid the slowing of the economy. Earlier this year the low rates had increased the refinancing business and I think we will continue to see more of this. With peak home buying season coming up, the low rates may help to bring in more buyers and help them to afford homes. To read more about this, click here.
Zillow Offers is a new program that has arrived in San Diego. This new program offers to help homeowners sell their home faster. While this may sound appealing to sellers, the downside is the price point. Zillow Offers may not pay what some sellers would like. Their offer comes in at market value and not typically higher. This may be good for sellers who are simply ready to move on from their current home for various reasons and are not too concerned with getting the highest offer. It’s also an opportunity for sellers who are not interested or cannot afford to make any renovations or changes to their home that would garner a higher offer. So while there are benefits to this program, it is not for everyone.
I spoke with some news outlets about this program. You can check out the articles here and here. Some San Diego realtors also offer their opinion on this program and it’s definitely worth the read.
I recently spoke with 10News about the increase in home sales we have seen over the last few months. This is a nice change to the trend we had been seeing in San Diego. For the past year, home sales had been declining due to factors like rising home prices and high interest rates. With interest rates decreasing over the last few months, sales have been picking up. While this is a good change for home buyers borrowing to purchase a home, the factor that has not changed is home prices. For this reason many buyers are looking outside of San Diego county when deciding to purchase a home.
These are some of the topics discussed, for the full article click here.
I spoke with ABC10 News about the current state of the real estate market in San Diego. Activity is still slow and interest rates remain high, but this could become an opportunity for those looking to buy. I do think we will see an increase in activity in springtime, but I don’t expect prices to skyrocket. If you are looking to buy, give me a call to discuss financing options.
Read the full article here.
I spoke with ABC10 News about the rent control debate currently affecting San Diego.High rental costs in San Diego are prompting people to pursue rent controls to limit rental increases. I believe the long term solution is more supply of housing. The current supply has not met the demand in our city. Rent control would serve as a short term solution that may not be feasible and may not result in the needed changes.
Watch the video here.
CHULA VISTA, Calif. (KGTV) — Hundreds of thousands of veterans and active duty military call San Diego County home, but a group says they are facing big disadvantages when trying to buy a house here.
The San Diego Veterans Association of Real Estate Professionals says more than 60 percent of listings in the county won’t accept offers with V.A. loans.
The federally backed loans don’t require a down payment or mortgage insurance. Those eligible in San Diego County can borrow up to about $650,000 without any cash down.
“We have served, and the V.A. loan is a guaranteed loan,” said Andre Hobbs, a San Diego realtor and veteran who heads the association.
Hobbs says the benefit is backfiring for some home seekers in San Diego’s ultra-competitive housing market. It’s because he says sellers are opting for offers instead that include cash down payment because of a misperception about V.A. applicants.
“They assume that this buyer is ready to walk,” Hobbs said. “He’s not motivated.”
Mark Goldman, a real-estate lecturer at San Diego State University, said there are some misconceptions about V.A. loans, such as that they are more complex. He added there are a few extra disclosures, but they aren’t cumbersome.
But V.A. buyers can also have an advantage if the current owner also served in the military.
“Luckily we may meet another veteran seller that understands, ‘hey, I’m willing to do that,'” Hobbs said.