Why You Should Sell Your House Now!

School is back in session, the holidays are right around the corner, you might not think that now is the best time to sell your house. But with inventory below historic numbers and demand still strong, you could be missing out on a great opportunity for your family.

1. Demand is Strong

Foot traffic refers to the number of people out actually physically looking at home right now. The latest foot traffic numbers show that there are more prospective purchasers currently looking at homes than at any other time in the last twelve months which includes the latest spring buyers’ market. These buyers are ready, willing and able to buy…and are in the market right now!

2. There Is Less Competition Now

Housing supply is still under the historical number of 6 months’ supply. This means that, in many markets, there are not enough homes for sale to satisfy the number of buyers in that market. This is good news for home prices. However, additional inventory is about to come to market.

There is a pent-up desire for many homeowners to move as they were unable to sell over the last few years because of a negative equity situation. Homeowners are now seeing a return to positive equity as real estate values have increased over the last two years. Many of these homes will be coming to the market in the near future.

Also, new construction of single-family homes is again beginning to increase. A recent study by Harris Poll revealed that 41% of buyers would prefer to buy a new home while only 21% prefer an existing home (38% had no preference).

Where Are Home Prices Headed Over the Next 5 Years?

Today, many real estate conversations center on housing prices and where they may be headed. That is why we like the Home Price Expectation Survey. Every quarter, Pulsenomics surveys a nationwide panel of over one hundred economists, real estate experts and investors, market strategists about where prices are headed over the next five years. They then average the projections of all 100+ experts into a single number. The results of their latest survey follow:

• Home values will appreciate by 4.8% in 2014. 
• The cumulative appreciation will be 23.5% by 2019. 
• That means the average annual appreciation will be 3.6% over the next 5 years. 
• Even the experts making up the most bearish quartile of the survey still are projecting a cumulative appreciation of 15.1% by 2019. 

Individual opinions make headlines. What are your thoughts?

David Demangos
858.232.8410
Locally Known, Globally Connected
Luxury Home Marketing Specialist
Global Property Specialist

David@AwesomeSanDiegoRealEstate.com
www.AwesomeSanDiegoRealEstate.com
Our Team Goes to Extremes to Fulfill Your Real Estate Dreams!

Either Way, You’re Still Paying a Mortgage

There are some people that have not purchased a home because they are uncomfortable taking on the obligation of a mortgage. Everyone should realize that, unless you are living with your parents rent free, you are paying a mortgage - either your mortgage or your landlord’s. A Harvard University Study explains:

“Households must consume housing whether they own or rent. Not even accounting for more favorable tax treatment of owning, homeowners pay debt service to pay down their own principal while households that rent pay down the principal of a landlord plus a rate of return. That’s yet another reason owning often does—as Americans intuit—end up making more financial sense than renting.”

Also, if you purchase with a 30-year fixed rate mortgage, your ‘housing expense’ is locked in over the thirty years for the most part. If you rent, the one guarantee you will have is that your rent will increase over that same thirty year time period.

As an owner, the mortgage payment is a ‘forced savings’ which will allow you to have equity in your home you can tap into later in your life. As a renter, you guarantee the landlord is the person with that equity.

Bottom Line

Whether you are looking for a primary residence for the first time or are considering a vacation home on the shore, owning might make more sense than renting since home values and interest rates are still at bargain prices.

Looking to Sell, Buy or Invest in Real Estate? Contact:
David Demangos
858.232.8410

Locally Known, Globally Connected

Luxury Home Marketing Specialist 

Global Property Specialist 

David@AwesomeSanDiegoRealEstate.com
www.AwesomeSanDiegoRealEstate.com
Our Team Goes to Extremes to Fulfill Your Real Estate Dreams!

Drone Video Directions to Awesome San Diego Real Estate

Hello future clients of AwesomeSanDiegoRealEstate.com. Please watch 38 second video for directions to an exceptional Awesome San Diego Real Estate experience.

Keller Williams Realty
12780 High Bluff Dr. Suite 130
San Diego, CA 92130

David Demangos
858.232.8410
Locally Known, Globally Connected
Luxury Home Marketing Specialist 
Global Property Specialist 

www.AwesomeSanDiegoRealEstate.com 
David@AwesomeSanDiegoRealEstate.com
Our Team Goes to Extremes to Fulfill Your Real Estate Dreams!

Buying a Home Remains 38% Less Expensive than Renting!

In Trulia’s latest Rent vs Buy Report, they explained that homeownership remains cheaper than renting with a traditional 30-year fixed rate mortgage throughout the 100 largest metro areas in the United States. The updated numbers actually show that the range is from an average of 17% in Honolulu, all the way to 63% in Detroit, and 38% Nationwide! This is up from an average of only 5% cheaper in Honolulu in April. The other interesting findings in the report include:

Rents have continued to increase nationally even as home price increases are starting to slow Current low mortgage rates have kept homeownership from becoming more expensive than renting.

Some markets might tip in favor of renting next year if home prices increase at a greater rate than rents and if – as most economists expect – mortgage rates rise, due to the strengthening economy. Nationally, rates would have to rise to 10.6% for renting to be cheaper than buying – and rates haven’t been that high since 1989.

Bottom Line

Buying a home makes sense. Rental costs have historically increased at a higher rate of inflation. Lock in a mortgage payment now before home prices and mortgage rates rise as experts expect they will.

Looking to sell, buy, or invest in real estate? Contact:

David Demangos
858.232.8410
Locally Known, Globally Connected
Luxury Home Marketing Specialist
Global Property Specialist

www.AwesomeSanDiegoRealEstate.com
David@AwesomeSanDiegoRealEstate.com
Our Team Goes to Extremes to Fulfill Your Real Estate Dreams!

Real Estate and Money-Wise Kids

Kids are never too young to learn the skills of saving, budgeting, and other basics for becoming a money-wise individual.

In fact, a recent survey conducted by T. Rowe Price found that 60 percent of kids whose parents frequently talk to them about budgeting feel they are smart about money, as opposed to just 34 percent of kids whose parents do not.

Financial experts agree that the sooner parents start imparting key money concepts, the more effective they will be in raising financially responsible adults. While it may seem like an involved topic, it's as simple as starting a conversation.

"There is a clear correlation between talking with kids about financial topics and their habits," said Judith Ward, a senior financial planner with T. Rowe Price. "Parents can invest in their kids by talking to them weekly about money matters."

The survey also found that parents are having more financial conversations with boys rather than girls.

"Boys and girls should have the same opportunities to learn about money matters at home so they can grow into financially savvy adults," Ward says. "By talking to kids of either gender about things like saving for college, parents can help kids get involved and excited about their future."

Harvard’s 5 Financial Reasons to Buy a Home

Eric Belsky is Managing Director of the Joint Center of Housing Studies at Harvard University. He also currently serves on the editorial board of the Journal of Housing Research and Housing Policy Debate. Last year, he released a paper on homeownership - The Dream Lives On: The Future of Homeownership in America. In his paper, Belsky reveals five financial reasons people should consider buying a home. Here are the five reasons, each followed by an excerpt from the study:

1.) Housing is typically the one leveraged investment available.

“Few households are interested in borrowing money to buy stocks and bonds and few lenders are willing to lend them the money. As a result, homeownership allows households to amplify any appreciation on the value of their homes by a leverage factor. Even a hefty 20 percent down payment results in a leverage factor of five so that every percentage point rise in the value of the home is a 5 percent return on their equity. With many buyers putting 10 percent or less down, their leverage factor is 10 or more.”

2.) You're paying for housing whether you own or rent.

“Homeowners pay debt service to pay down their own principal while households that rent pay down the principal of a landlord.”

3.) Owning is usually a form of “forced savings”.

“Since many people have trouble saving and have to make a housing payment one way or the other, owning a home can overcome people’s tendency to defer savings to another day.”

4.) There are substantial tax benefits to owning.

“Homeowners are able to deduct mortgage interest and property taxes from income...On top of all this, capital gains up to $250,000 are excluded from income for single filers and up to $500,000 for married couples if they sell their homes for a gain.”

5.) Owning is a hedge against inflation.

“Housing costs and rents have tended over most time periods to go up at or higher than the rate of inflation, making owning an attractive proposition.”

Bottom Line

Realize that homeownership makes sense for many Americans for an assortment of social and family reasons. It also makes sense financially.

Looking to sell, buy, or invest? Contact:
David Demangos

858.232.8410

Locally Known, Globally Connected

Luxury Home Marketing Specialist/Global Property Specialist 

David@AwesomeSanDiegoRealEstate.com
www.AwesomeSanDiegoRealEstate.com
Our Team Goes to Extremes to Fulfill Your Real Estate Dreams!

A Home’s Cost vs. Price Explained

COST vs. PRICE is often talked about. As a seller, you will be most concerned about ‘short term price’ – where home values are headed over the next six months. As either a first time or repeat buyer, you must not be concerned about price but instead about the ‘long term cost’ of the home.

Explanation:

A nationwide panel of over one hundred economists, real estate experts and investment market strategists projected that home values would appreciate by approximately 4% from now to the end of 2015. Additionally, Freddie Mac’s most recent economic commentary projections table predicts that the 30 year fixed mortgage rate will be 5.0% by the end of next year.

What Does This Mean to a Buyer?

Here is a simple demonstration of what impact these projected changes would have on the mortgage payment of a home selling for approximately $250,000 today:

Who do you know looking to Sell, Buy or Invest in Real Estate? Contact:

David Demangos

Global Property Specialist

858.232.8410
David@AwesomeSanDiegoRealEstate.com
www.AwesomeSanDiegoRealEstate.com
Our Team Goes to Extremes to Fulfill Your Real Estate Dreams!

#1 Reason You Should Sell Now

The price of any item (including residential real estate) is determined by ‘supply and demand’.  If the supply of an item is larger than the amount of people looking to purchase that item, the price will decrease. With winter right around the corner, now may be the best time to get the best price. #KCM2014 According to the National Association of Realtors (NAR), historically there is a natural decline in buyers looking to purchase a home (also known as foot traffic) as the winter months approach. Shown in the graph below: NAR goes a step further to say that there is a direct correlation between “foot traffic” and “pending contracts/closed sales one to two months later”.