East San Diego County Real Estate BlogRecently posted or modified blog posts in the category - Buying a Homehttps://www.eastsandiegocounty.com/blog/Copyright EastSanDiegoCounty.com2024-03-01T11:02:15-07:00tag:eastsandiegocounty.com,2012-09-20:33212What You Need to Know About Moving to San Diego from Out of StateMoving to a new city, especially one as vibrant and diverse as San Diego can be thrilling and daunting. In this guide, we'll discover the top 5 things to know before moving to San Diego, explore the San Diego lifestyle, and learn about housing options in San Diego.
San Diego Overview
San Diego, often referred to as "America's Finest City," is a coastal metropolis located in Southern California. The city is known for its stunning beaches, diverse neighborhoods, and thriving economy. With its rich cultural influences, food, traditions, and beautiful weather, San Diego offers residents an enviable lifestyle year-round.
5 Things to Know Before Moving to San Diego
1. Weather
San Diego is known for being sunny year-round, and there is truth to that stereotype. San Diego averages only 41 days of rain per year, with sunny skies for over 70% of the year. So enjoy the warm, sunny weather!
Unfortunately, with the sun comes drought. San Diego has been in and out of drought for decades. So it’s extremely important to be water-conscious when living in San Diego.
2. Earthquakes
Like most places in California, San Diego experiences earthquakes. The USGS predicts that San Diego may experience a 7.0 or greater magnitude quake in the next 30 years. If you live near a fault line, taking out earthquake insurance isn’t a bad idea. That said, most earthquakes here are very minor and hardly even noticeable.
3. Cost of Living
No surprises here, the cost of living in San Diego is very high. In 2023, San Diego became the #1 most expensive place to live in the United States. Before making your move, make sure you consider all the costs of moving to and living in San Diego.
4. Traffic and Transit
With the increasing population, traffic in San Diego can be no joke. While nowhere near LA level, driving during rush hour can be a nightmare. However, outside of rush hour driving in San Diego isn’t that bad.
Another way to avoid the traffic is to take advantage of San Diego’s public transportation system. Over the past several years, San Diego has been investing in making public transport more accessible and available. The trolley system especially is a great way to beat road traffic.
5. Recreation
Thanks to the nice weather and gorgeous landscapes, outdoor recreation is a San Diego favorite year-round. San Diegans love surfing at the beaches, hiking our local mountains, and picnicking at Balboa Park or by the Bay. In the winter, locals also love making the short drive up our local mountains for snowboarding and skiing.
San Diego Lifestyle
Embracing the Laid-back Vibe
Embrace San Diego’s relaxed pace of life and laid-back attitude. As a newcomer, make sure you take time to get to know the city. Explore the city's diverse neighborhoods, culinary scene, and outdoor attractions. It's common to see locals enjoying outdoor pursuits like surfing, hiking, or simply lounging at the beach.
Adapting to Local Norms and Values
Living in San Diego it’s important to respect cultural diversity and be open to new experiences. San Diego prides itself on its inclusivity and tolerance. Embracing different perspectives and customs is key to thriving in the community.
Housing Options and Neighborhoods
The cost of living in San Diego is expensive, but there are more affordable options. Communities in East County San Diego, such as El Cajon, Spring Valley, and Santee, are great options. Located along major freeways, these neighborhoods are all less than half an hour from the beach.
Conclusion
Moving to San Diego from out of state is a journey filled with opportunities for growth and discovery. Whether you're drawn to the surf, sunshine, or culture, San Diego invites you to make America's Finest City your own.
Ready to make San Diego your home? Contact Steven Rotsart, your local San Diego Real Estate Agent.2024-03-05T10:18:00-07:002024-03-01T11:02:15-07:00Steven Rotsarttag:eastsandiegocounty.com,2012-09-20:31970Why La Mesa is a Great Place to Live 2024
Nestled in the heart of San Diego's East County, La Mesa offers a blend of charm, character, and an urban flair. That blend makes La Mesa an ideal haven for young professionals, growing families, and retirees alike. Now, let's dive into why La Mesa is a great place to live in 2024.
The Allure of La Mesa
La Mesa's Charm and Character
La Mesa's charm comes from its community spirit and captivating landscape. Picture this: tree-lined streets and majestic views from Mount Helix on the east side of the city. You'll discover locally-owned shops, cozy cafes, and delectable restaurants in "The Village," La Mesa's downtown. And don't miss the weekly farmer's market, injecting a lively vibe into the heart of La Mesa.
Suburban Tranquility and Urban Conveniences
La Mesa has the perfect balance of suburban tranquility and urban conveniences; offering a serene suburban retreat just moments away from the buzz of downtown San Diego. It's a place where you can unwind in the tranquility of a close-knit community while having the vibrant energy of the city at your fingertips. Bonus: La Mesa is a mere 20-minute drive from the sandy shores, making beach days a regular possibility.
Excellent Weather
Nestled in San Diego County, La Mesa boasts excellent weather all year round. With summer highs averaging a comfortable 82°F (perfect for a pool day) and winter lows at a mild 45°F, it's a climate that complements the city's inviting atmosphere.
Consistent Recognition as One of the Best Neighborhoods
No surprises here—La Mesa is consistently celebrated as one of San Diego's finest neighborhoods. Its reputation for nurturing a sense of community togetherness makes it a welcoming haven for residents and visitors alike.
Housing Options
When it comes to housing, La Mesa caters to everyone's tastes. From cozy single-family homes to stylish condominiums and trendy townhouses, the real estate market offers a diverse range of options.
Affordable Choices for Various Budgets
Affordability is a shining star in La Mesa's constellation. With a median home value of around $800,000 and the cost of living below the county average, there's a home sweet home for every budget. For those pursuing the perfect home, teaming up with a savvy real estate agent ensures access to current market insights and guidance.
Overview of La Mesa's Real Estate Market
La Mesa's housing market is buzzing with activity. Offering prices lower than the San Diego average La Mesa is a sought-after place to live. The market continues to grow steadily, witnessing around 3% year-over-year growth. We expect this trend to persist into the next year, keeping La Mesa a more budget-friendly option than many other San Diego neighborhoods.
Vibrant Community Life
La Mesa's warmth and friendliness set it apart from other San Diego neighborhoods. It’s all about community in La Mesa.
Imagine strolling along the streets, discovering locally-owned shops, cozy cafes, and delectable restaurants. La Mesa's downtown comes alive with events like the La Mesa Farmers Market and the Back to the '50s Car Show, creating opportunities for residents to connect and celebrate.
Exceptional Amenities and Attractions
Access to Major Freeways and Seamless Connectivity
La Mesa's prime location ensures residents have easy access to major freeways, effortlessly connecting them to the rest of San Diego County. Whether you're commuting to work or embarking on a beach day, the well-connected road network makes it a breeze.
Outdoor Recreation Opportunities
Outdoor enthusiasts, rejoice! The nearby Lake Murray Recreation Area offers a picturesque setting for hiking, boating, and picnicking. Meanwhile, Mission Trails Regional Park, a stone's throw away, invites exploration and adventure, featuring Cowles Mountain—the highest peak in San Diego.
Family-Friendly Environment
Highly Regarded Schools in La Mesa
Families gravitate toward La Mesa for its esteemed schools and family-friendly atmosphere. From La Mesa Arts Academy to Helix Charter High School, the neighborhood boasts top-notch educational institutions with excellent academic programs and extracurricular activities. The community of La Mesa creates an environment where both parents and children can thrive.
Moving to La Mesa 2024
While La Mesa boasts numerous perks, it's crucial to weigh potential drawbacks. The city's popularity has nudged housing prices upward, and residents should be mindful of traffic during peak hours and limited downtown parking.
Pros and Cons of Living in La Mesa
Pros:
Prime location with easy access to nearby cities.
Affordable housing options.
High quality of life with excellent schools and recreational facilities.
Abundance of outdoor activities.
Cons:
Traffic congestion, especially during peak hours.
Limited local employment opportunities.
La Mesa in 2024: What's New
La Mesa is a city in motion. The city has many development and revitalization projects, including new housing, and a new gas station along El Cajon Blvd. These and more developments make 2024 an exciting time to call La Mesa home.
Conclusion
La Mesa in 2024 is a thriving community that encapsulates the essence of a perfect home. Whether you're drawn to a close-knit community, a lively downtown scene, or the proximity to outdoor escapades, La Mesa is poised to capture your heart. Dive into the unique offerings of this dynamic city and consider making La Mesa your home in 2024. The possibilities are as vibrant as the community itself.
2023-12-20T23:04:44-07:002024-02-16T13:58:34-07:00Steven Rotsarttag:eastsandiegocounty.com,2012-09-20:31669Top 5 Places to Buy a Home in San DiegoNeighborhood Guide for Future San Diego Homeowners
San Diego, with its sun-soaked days, diverse communities, and endless possibilities, is undeniably a fantastic place to live. The dream of owning a home here is not far-fetched, and with the right insights, you can make it a reality. In this guide, we'll walk you through our top 5 neighborhoods in San Diego. Learn what makes them stand out, from affordability to community and environment.
Getting to Know Sunny San Diego
Before we delve into each neighborhood, let's talk about San Diego. Nestled on California's southwestern tip, San Diego seamlessly combines coastal ease with urban vibrancy. With hills, mesas, and a breathtaking 70-mile coastline, it's a magnet for diverse individuals. Known for its sunny weather, laid-back vibe, and local treasures, San Diego boasts over 3 million residents, making it California's second most populous county.
Is San Diego a Safe Place to Live?
Yes, with crime rates below the national average, San Diego is a safe place to live. Still, like any city, some areas are safer than others. Our guide will walk you through the best places to buy a home in each of our top 5 San Diego neighborhoods.
Housing Affordability in San Diego
While San Diego's average home value is close to a million dollars, our top neighborhoods offer more reasonable options. As of November 2023, the average home price in these areas is $750,000. Dive into each neighborhood for insights into affordability.
Our Top 5 Neighborhoods for San Diego Homebuyers
1. La Mesa
Nestled in the heart of San Diego County, <a href="https://www.eastsandiegocounty.com/property-search/results/?searchtype=3&searchid=409954">La Mesa, California</a>, welcomes residents with its vibrant mix of history, culture, and modern amenities. Boasting a population of over 60,000, La Mesa caters to young professionals, growing families, and retirees alike.
What Makes La Mesa Special?
La Mesa is home to the charming Mount Helix, offering breathtaking panoramic views. Stroll along La Mesa Boulevard and the La Mesa Walkway of the Stars, a tribute to local celebrities. The weekly farmer's market adds a lively atmosphere, while easy access to San Diego's renowned beaches and entertainment enhances the overall experience.
La Mesa Affordability and Market Trends
La Mesa stands out for its affordability compared to other San Diego County areas. With a median home value of around $800,000 and the cost of living below the county average, La Mesa provides a diverse range of housing options for various lifestyles and budgets. For those considering a home purchase, partnering with a knowledgeable real estate agent ensures access to up-to-date information, insights into market trends, and guidance to find the perfect home.
Community and Amenities
La Mesa exudes a strong sense of community spirit, celebrated through its vibrant lifestyle. The city hosts delightful restaurants, beautiful parks, and the famous La Mesa Village Farmers Market. Outdoor enthusiasts can explore activities at Lake Murray Reservoir and Mission Trails Regional Park, while foodies can savor culinary delights at top-rated restaurants and cafes like Farmer's Table and La Mesa Bistro & Bakery.
Schools in La Mesa
Boasting a range of high-quality schools, La Mesa is an ideal location for families. The La Mesa-Spring Valley School District, with 23 schools, offers diverse educational programs. Notable schools like La Mesa Arts Academy and Helix Charter High School, ranked among the best in California, contribute to the community's educational excellence.
Best Neighborhoods in La Mesa
Explore La Mesa's diverse neighborhoods, each with its unique character:
Mount Helix: Revel in stunning views from this hilltop neighborhood known for its large and luxurious homes.
La Mesa Village: Immerse yourself in a vibrant downtown atmosphere filled with shops, restaurants, and a bustling social scene.
Lake Murray: Find tranquility near the lake, perfect for boating, fishing, and scenic views.
Fletcher Hills: Embrace family-friendly living with large homes and well-manicured lawns.
Grossmont: Experience a diverse and close-knit community near Grossmont College.
Whether you seek a peaceful retreat or a lively downtown vibe, La Mesa offers the perfect neighborhood for every preference. Explore the beauty and diversity of this San Diego gem, where every corner has something unique to offer. For more information on home buying in La Mesa, visit our <a href="https://www.eastsandiegocounty.com/la-mesa-homes-for-sale/">La Mesa Homes</a> page.
2. El Cajon
<a href="https://www.eastsandiegocounty.com/property-search/results/?searchtype=3&searchid=409956">El Cajon, California</a>, welcomes you to East County San Diego with its rich history and diverse population, creating an ideal home for families, professionals, and retirees. Offering a perfect blend of a bustling city and a small-town feel, El Cajon provides the best of both worlds.
What Makes El Cajon Special?
Nestled between mountains and the coast, El Cajon boasts sunny weather and abundant opportunities for outdoor activities like hiking and surfing. Parks such as Wells Park enhance residents' quality of life with playgrounds, tennis courts, and picnic areas.
El Cajon Affordability and Market Trends
El Cajon's real estate market remains consistently strong, witnessing steady growth in property values. Affordability sets the city apart, with average home values around $775,000, making it an attractive and stable long-term investment.
Community and Amenities
Experience El Cajon's vibrant lifestyle through diverse dining options, including The Downtown Cafe and The Hills Local Pub. Beautiful parks like Kennedy Park and Wells Park offer playgrounds, sports facilities, and walking trails. Landmarks such as the Water Conservation Garden and the Wieghorst Museum add cultural richness to the community.
Schools in El Cajon
El Cajon provides excellent educational opportunities, with top-rated schools such as Fletcher Hills Elementary School and Valhalla High School. The El Cajon Branch Library supports early literacy, while nearby institutions like Grossmont College and San Diego State University offer exceptional higher education options.
Best Neighborhoods in El Cajon
Explore El Cajon's unique neighborhoods:
Fletcher Hills: Tree-lined streets and stunning views, with easy access to Mission Trails Regional Park.
Rancho San Diego: A master-planned community offering diverse housing options, excellent schools, and family-friendly amenities.
Downtown El Cajon: Currently undergoing redevelopment, this urban area boasts trendy shops, restaurants, and community events like the weekly farmer's market.
El Cajon serves as your gateway to vibrant living in San Diego County, providing easy access to the mountains and the beach—an outdoor haven for all. For more information on home buying in El Cajon, visit our <a href="https://www.eastsandiegocounty.com/el-cajon-california-homes-for-sale/">El Cajon Homes</a> page.
3. Lemon Grove
<a href="https://www.eastsandiegocounty.com/property-search/results/?searchtype=3&searchid=2500170">Lemon Grove, California</a>, a hidden gem in San Diego County, offers a tranquil atmosphere, making it an ideal retreat from the city's hustle and bustle. Despite its small size, Lemon Grove provides ample opportunities for families and individuals, boasting an affordable cost of living that appeals to first-time homebuyers.
What Makes Lemon Grove Special?
Lemon Grove's charm lies in its family-friendly community, affordable living, and rich heritage. Ideal for those desiring a small-town ambiance with convenient access to city amenities, Lemon Grove takes pride in its annual events and festivals, like the Lemon Grove Community Bonfire, fostering cultural celebration and community engagement.
Lemon Grove Affordability and Market Trends
The town's real estate market is thriving, offering an opportune time for property investment. With a median home price of around $715,000, relatively affordable compared to other San Diego areas, Lemon Grove's real estate value has shown consistent growth.
Community and Amenities
Embracing a family-friendly environment, Lemon Grove promotes a tight-knit community with a low crime rate, ensuring safety and security. The town provides diverse community amenities, from historic landmarks like the Lemon Grove Depot to parks such as Lemon Grove Park and Berry Street Park. Culinary enthusiasts can explore a variety of dining options, including Giardino Neighborhood Cucina and El Pollo Grill.
Schools in Lemon Grove
Lemon Grove boasts excellent schools, with Lemon Grove Academy offering a rigorous K-8 curriculum focusing on STEAM education. Nearby institutions like Helix Charter High School and options at Grossmont College and San Diego State University provide outstanding higher education opportunities.
Best Neighborhoods in Lemon Grove
Explore Lemon Grove's diverse neighborhoods:
Country Club: Known for its large, well-maintained homes and tree-lined streets, offering beautiful views of surrounding hills.
San Altos: A southwestern neighborhood with quiet streets, well-maintained homes, and proximity to parks.
Downtown Lemon Grove: Ideal for an urban vibe, featuring restaurants, cafes, and shops with smaller, more affordable housing options.
Lemon Grove caters to every preference, from peaceful suburban streets to lively urban centers—a city with something for everyone. For more information on home buying in Lemon Grove, visit our <a href="https://www.eastsandiegocounty.com/lemon-grove-california-homes-for-sale/">Lemon Grove Homes</a> page.
4. Santee
<a href="https://www.eastsandiegocounty.com/property-search/results/?searchtype=3&searchid=409975">Santee, California</a>, a picturesque suburban community in San Diego County, is renowned for its warm climate, scenic views, and tight-knit community feel.
What Makes Santee Special?
With just over 58,000 residents, Santee is a perfect haven for families, couples, and individuals. Its proximity to the heart of San Diego ensures easy access to attractions, job opportunities, and outdoor activities, including nearby beaches and hiking trails.
Santee Affordability and Market Trends
Santee's real estate market is thriving, witnessing a steady increase in home values over recent years. The median home value, currently around $750,000, reflects the area's sought-after location and high quality of life. Diverse housing options cater to every buyer's preference and budget, from spacious single-family homes with yards to modern townhouses and new constructions.
Community and Amenities
Santee takes pride in its small-town charm, friendly ambiance, and commitment to safety. Boasting excellent schools and a rich cultural tapestry, it offers a diverse and welcoming environment. Santee is full of picturesque parks like Santee Lakes Regional Park and Mast Park, offering scenic trails and recreational facilities. The town also boasts a vibrant dining scene, featuring local favorites like the Omelette Factory and Phil's BBQ. Santee is an ideal place to call home, offering a blend of suburban tranquility, community warmth, and amenities.
Schools in Santee
Santee is a prime location for families seeking top-quality education, offering a range of schools and access to renowned higher education institutions. Santee hosts several highly rated schools, including Carlton Hills School and Rio Seco School, ensuring an excellent education for students. Residents also have access to prestigious institutions like the University of California San Diego, San Diego State University, and the University of San Diego, providing diverse higher education options.
Best Neighborhoods in Santee
Santee's diverse neighborhoods cater to various preferences, providing a range of settings from quiet suburban streets to lively urban environments.
Carlton Hills: Known for beautiful homes, tree-lined streets, and easy access to local schools and parks.
Riverwalk: Situated along the San Diego River, it offers residents access to outdoor activities.
Sky Ranch: Features stunning views of the surrounding hills and valleys.
Santee offers a welcoming community with diverse neighborhoods, ensuring there's a perfect place for everyone. For more information on home buying in Santee, visit our <a href="https://www.eastsandiegocounty.com/santee-california-homes-for-sale/">Santee Homes</a> page.
5. Spring Valley
<a href="https://www.eastsandiegocounty.com/property-search/results/?searchtype=3&searchid=409976">Spring Valley, California</a> is a serene community nestled in San Diego County, boasting a population of around 30,000 residents. This idyllic town, located just east of San Diego, offers a mild climate, rolling hills, and lush greenery, providing a perfect setting for a year-round outdoor lifestyle.
What makes Spring Valley Special?
Spring Valley stands out as a great place to live for several reasons. Residents enjoy an array of community amenities, including parks like Sweetwater Reservoir and Spring Valley Community Park, alongside diverse dining and shopping options. Not to mention, the area prides itself on safety, reflected in its low crime rate.
Spring Valley Affordability and Market Trends
The real estate market in Spring Valley has seen consistent growth, drawing homebuyer interest. With a current median home value of approximately $725,000, below San Diego’s median, Spring Valley offers a stable, growing, and competitive housing market. Collaborating with a local real estate agent provides essential insights for navigating the home-buying process.
Community and Amenities
Enriching residents' lives, Spring Valley provides something for everyone. Parks like Spring Valley Community Park and Sweetwater Reservoir cater to outdoor enthusiasts, while local eateries like Coop's West Texas BBQ and La Posta de Acapulco offer delightful culinary experiences.
Schools in Spring Valley
Prioritizing education, Spring Valley boasts excellent options for families. Notable elementary and middle schools include La Presa Elementary, Avondale Elementary, and Spring Valley Middle School. High school students can choose between Mount Miguel High School and Monte Vista High School, both offering diverse academic programs and extracurricular activities. Private schools like Santa Sophia Academy and Santa Fe Christian Schools provide additional educational choices.
Best Neighborhoods in Spring Valley
Casa de Oro: A suburban neighborhood with a mix of single-family homes and apartment complexes.
La Presa: Known for its welcoming atmosphere that embraces diversity and fosters community connections.
Pointe Parkway: A booming neighborhood with larger homes and newer developments
Spring Valley beckons potential homebuyers with its dynamic real estate market. Partnering with a knowledgeable local agent ensures a smooth and informed home-buying experience. For more information on home buying in Spring Valley, visit our <a href="https://www.eastsandiegocounty.com/spring-valley-california-homes-for-sale/">Spring Valley Homes</a> page.
Planning Your Move to San Diego
Considerations
Budget
Establish a realistic budget. Make sure to consider the cost of living as well as potential expenses related to the move itself. Each San Diego neighborhood has its housing market, so research thoroughly to find an area that aligns with your financial plans.
Timeline
San Diego's housing market can be competitive, so having a clear timeline is essential. Start your search early and be prepared to act swiftly when you find the right property.
Safety
While San Diego is generally safe, we recommend researching specific neighborhoods for crime rates and safety considerations, especially if you are unfamiliar with the area. Local law enforcement websites and community forums can be valuable resources for gathering safety information.
Different Neighborhood Cultures and Attractions
Before settling on a location, explore different neighborhoods to find the one that aligns with your lifestyle and preferences. Consider factors such as proximity to beaches, cultural events, and community amenities.
Conclusion
Embark on your home-buying journey with our top 5 places in mind: La Mesa, El Cajon, Lemon Grove, Santee, and Spring Valley. Each neighborhood is a unique blend of amenities, culture, and lifestyle. Whether you seek a mix of urban and suburban living, multicultural experiences, affordable opportunities, family-friendly environments, or serene surroundings, San Diego's diverse communities cater to various preferences. As you explore, consider your priorities, from community events to educational opportunities, and make San Diego's vibrant neighborhoods your home. Your dream awaits—explore, discover, and make it yours.
2023-12-04T09:22:58-07:002024-02-07T11:21:27-07:00Steven Rotsarttag:eastsandiegocounty.com,2012-09-20:21627Why You May Want to Start Your Home Search TodayIf you’re thinking about <a href="https://www.simplifyingthemarket.com/2022/08/10/is-the-shifting-market-a-challenge-or-an-opportunity-for-homebuyers/?a=371365-96f38d4df44d5627725612a3244e4929" target="_blank" title="buying a home">buying a home</a> in La Mesa, El Cajon, Alpine, Descanso, Santee, Lakeside, Lemon Grove, Spring Valley or anywhere in East San Diego County, you likely have a lot of factors on your mind. You’re weighing your own needs against higher <a href="https://www.simplifyingthemarket.com/2022/08/05/housing-market-forecast-for-the-rest-of-2022-infographic/?a=371365-96f38d4df44d5627725612a3244e4929" target="_blank" title="mortgage rates">mortgage rates</a>, today’s home prices, and more to try to decide if you want to jump into the market. While some buyers may wait things out, there’s a reason serious buyers are making moves right now, and that’s the growing number of homes for sale.
So far this year, <a href="https://www.simplifyingthemarket.com/2022/07/26/a-window-of-opportunity-for-homebuyers/?a=371365-96f38d4df44d5627725612a3244e4929" target="_blank" title="housing inventory">housing inventory</a> has been increasing and that’s making the prospect of finding your dream home less difficult. While there are always reasons you could delay making a big decision, there are also always reasons to consider moving forward. And having a <a href="https://www.simplifyingthemarket.com/2022/07/22/great-news-about-housing-inventory-infographic/?a=371365-96f38d4df44d5627725612a3244e4929" target="_blank" title="growing number of options">growing number of options</a> for your home search may be exactly what you needed to feel more confident in making a move.
What’s Causing Housing Inventory To Grow?
As new data comes out, we're getting an updated picture of why housing supply is increasing so much this year. As Bill McBride, Author of Calculated Risk, <a href="https://calculatedrisk.substack.com/p/1st-look-at-local-housing-markets-fb2" target="_blank" title="explains">explains</a>:
“We are seeing a significant change in inventory, but no pickup in new listings. Most of the increase in inventory so far has been due to softer demand - likely because of higher mortgage rates.”
Basically, the inventory growth is primarily from homes staying on the market a bit longer (known as active listings). And that’s happening because higher mortgage rates and <a href="https://www.simplifyingthemarket.com/2022/08/11/what-does-the-rest-of-the-year-hold-for-home-prices/?a=371365-96f38d4df44d5627725612a3244e4929" target="_blank" title="home prices">home prices</a> have helped moderate the peak frenzy of buyer demand.
The graph below uses <a href="https://www.realtor.com/research/data/" target="_blank" title="data">data</a> from realtor.com to show how much active listings have risen over the past five months as a result (shown in green):
<img src="https://assets.site-static.com/userfiles/1763/image/kcm-infographic-1661465675.jpg" width="960" height="840" />
Why This Growth Is Good News for You
Regardless of the source, the increase in available housing supply is good for buyers. More housing supply actively for sale means you have more options as your search for your next home. A <a href="https://www.realtor.com/research/july-2022-data/" target="_blank" title="recent article">recent article</a> from realtor.com explains just how significant the inventory growth has been and why it’s good news for your plans to buy:
“Nationally, the inventory of homes actively for sale on a typical day in July increased by 30.7% over the past year, the largest increase in inventory in the data history and higher than last month’s growth rate of 18.7% which was itself record-breaking. This amounted to 176,000 more homes actively for sale on a typical day in July compared to the previous year and more choice for buyers who are still looking for a new home.”
The growth this year is certainly good news for you, especially if you’ve had trouble finding a home that meets your needs. If you start your search today, those additional options should make it less difficult to find a home than it would have been over the past two years.
Bottom Line
If you’re ready to jump into the East County market and take advantage of the increasing supply of homes for sale, let’s connect today. The opportunity is knocking, will you answer?2022-08-26T06:28:00-07:002023-12-04T10:18:42-07:00Steven Rotsarttag:eastsandiegocounty.com,2012-09-20:215593 Tips for Buying a Home Today in East CountyIf you put off your home search at any point over the past two years, you may want to consider picking it back up based on today’s housing market conditions. Recent data shows the <a href="https://www.mykcm.com/2022/07/29/three-reasons-to-buy-a-home-in-todays-shifting-market-infographic/" title="supply of homes">supply of homes</a> for sale is increasing, giving buyers like you additional options.
But it’s important to keep in mind that while <a href="https://www.mykcm.com/2022/07/22/great-news-about-housing-inventory-infographic/" title="inventory is improving">inventory is improving</a>, it’s still a <a href="https://www.mykcm.com/2022/08/04/why-its-still-a-sellers-market/" title="sellers’ market">sellers’ market</a>. And that means you need to be prepared as you set out on your home search. Here are three tips for buying the East County home of your dreams today.
1. Understand How Mortgage Rates Impact Your Homebuying Power
Mortgage rates have <a href="https://www.freddiemac.com/pmms/archive" target="_blank" title="increased">increased</a> significantly this year, and over the past few weeks, they’ve been fluctuating quite a bit. It’s important to stay up to date on what’s happening with rates and understand how they can impact your purchasing power when you’re thinking of buying a home. The chart below can help.
Let’s say your budget allows for a monthly mortgage payment in the $2,100-$2,200 range. The green in the chart indicates a payment within or below that range, while the red is a payment that exceeds it.
<img src="https://assets.site-static.com/userfiles/1763/image/kcm-infographic-1661206458.jpg" width="1000" height="870" />
As the chart shows, even a small change in mortgage rates can have a big impact on your monthly payments. If rates rise, you could exceed your budget unless you pursue a lower home loan amount. If rates fall, your purchasing power may increase, which could give you additional options for your search.
2. Be Open to Exploring Different Options During Your Search
The <a href="https://www.mykcm.com/2022/07/27/want-to-buy-a-home-now-may-be-the-time/" title="supply of homes">supply of homes</a> for sale is improving, which gives you more homes to choose from. But historically, supply is still low. That means as you search for homes, if you still don’t find something that meets your needs, it may be worth expanding your search.
A <a href="https://www.washingtonpost.com/business/2022/07/28/navigating-crazy-housing-market/" target="_blank" title="recent article">recent article</a> from the Washington Post highlights a few things buyers can consider today. It encourages opening yourself up to more areas. For example, if there’s a location you’ve previously ruled out (like a particular town, for example) it may be worth taking another look.
And if you’re able to, opening your search up to include other housing types, like newly built homes, condominiums, or townhomes can further increase your pool of options. Even as the inventory of <a href="https://www.mykcm.com/2022/08/10/is-the-shifting-market-a-challenge-or-an-opportunity-for-homebuyers/" title="homes for sale">homes for sale</a> improves today, finding ways to cast a wider net during your search could help you find a hidden gem.
3. Work with a Local Real Estate Professional for Expert Guidance
Ultimately, you need to be prepared when you set out to buy a home. Jeff Ostrowski, Senior Mortgage Reporter for Bankrate, <a href="https://www.bankrate.com/real-estate/how-to-buy-a-house/" target="_blank" title="explains">explains</a>:
“Taking the leap to homeownership can provide a feeling of pride while boosting your long-term financial outlook, if you go in well-prepared and with your eyes open.”
No matter where you’re at in your homeownership journey, the best way to make sure you’re set up for success is to work with a <a href="https://www.mykcm.com/2022/07/28/a-real-estate-professional-helps-you-separate-fact-from-fiction/" title="real estate professional">real estate professional</a>. If you’re just starting your search, I can help you understand the current market and search for available homes in La Mesa, El Cajon, Alpine, Descanso, Santee, Lakeside, Lemon Grove, Spring Valley or anywhere in East San Diego County. And when it’s time to make an offer, I’ll be an expert advisor and negotiator to help yours stand out above the rest.
Bottom Line
Strategically planning your home search by understanding today’s mortgage rates, casting a wide net, and building a team of experts can be the keys to finding the home of your dreams. To make sure you have expert advice each step of the way, let’s connect.2022-08-23T06:48:00-07:002023-12-04T10:30:25-07:00Steven Rotsarttag:eastsandiegocounty.com,2012-09-20:21533Why a Home Inspection Is Important<img src="https://assets.site-static.com/userfiles/1763/image/kcm-infographic-1660950014.jpg" width="1046" height="2087" />
If you’re buying a home in La Mesa, El Cajon, Alpine, Descanso, Santee, Lakeside, Lemon Grove, Spring Valley or anywhere in East San Diego County, here’s what you should know about your <a href="https://www.homeinspector.org/Buyers-And-Owners/Homebuyers-Guide/FAQs-about-Home-Inspection" target="_blank" title="home inspection">home inspection</a> and why it’s so important.
A <a href="https://www.nar.realtor/home-inspections" target="_blank" title="home inspection">home inspection</a> is a crucial step in the homebuying process. It assesses the <a href="https://www.realtor.com/advice/buy/how-much-does-a-home-inspection-cost/" target="_blank" title="condition">condition</a> of the home you plan to purchase so you can avoid <a href="https://magazine.realtor/daily-news/2022/07/28/real-estate-forecast-market-to-ease-despite-high-home-prices" target="_blank" title="costly surprises">costly surprises</a> down the road.
Let’s connect so you have an East County <a href="https://www.mykcm.com/2022/07/28/a-real-estate-professional-helps-you-separate-fact-from-fiction/" title="expert">expert</a> on your side to guide you through the process.2022-08-20T06:46:00-07:002022-08-19T16:08:18-07:00Steven Rotsarttag:eastsandiegocounty.com,2012-09-20:21428The U.S. Homeownership Rate Is GrowingThe desire to own a home is <a href="https://www.mykcm.com/2022/07/05/is-homeownership-still-the-american-dream/" title="still strong">still strong</a> today. In fact, according to the <a href="https://www.census.gov/housing/hvs/files/currenthvspress.pdf" target="_blank" title="Census">Census</a>, the U.S. homeownership rate is on the rise. To illustrate the increase, the graph below shows the homeownership rate over the last year:
<img src="https://assets.site-static.com/userfiles/1763/image/kcm-infographic-1660601459.jpg" width="1000" height="870" />
That data shows more than half of the U.S. population live in a home they own, and the percentage is growing with time.
If you’re thinking about <a href="https://www.mykcm.com/2022/07/27/want-to-buy-a-home-now-may-be-the-time/" title="buying a home">buying a home</a> this year, here are just a few reasons why so many people see the value of homeownership.
Why Are More People Becoming Homeowners?
There are several benefits to owning your home. A significant one, especially when <a href="https://www.mykcm.com/2022/07/20/should-you-buy-a-home-with-inflation-this-high/" title="inflation">inflation</a> is high like it is today, is that homeownership can help protect you from rising costs. Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), <a href="https://sponsorcontent.cnn.com/interactive/nar/benefits-of-home-ownership/" target="_blank" title="explains">explains</a>:
“In the 1970s, when inflation was running around 10%, home prices were rising at approximately the same rate. Renters actually have a harder time in inflationary periods, because rents tend to rise along with inflation, whereas mortgage payments stay the same for homeowners with fixed-rate mortgages.”
When you <a href="https://www.mykcm.com/2022/08/03/buying-a-home-may-make-more-financial-sense-than-renting-one/" title="buy a home">buy a home</a> with a fixed-rate mortgage, you can lock in what’s likely your biggest monthly expense – your housing payment – for the duration of that loan, often 15-30 years.
That gives you a predictable monthly housing expense that can benefit you in the short term, but you’ll also <a href="https://www.mykcm.com/2022/07/06/how-your-equity-can-grow-over-time/" title="gain equity">gain equity</a> over time as your home appreciates in value and you make your monthly mortgage payment.
And with that growing equity, your <a href="https://www.mykcm.com/2022/07/13/should-i-buy-a-home-right-now/" title="net worth">net worth</a> will increase as well. In fact, the <a href="https://cdn.nar.realtor/sites/default/files/documents/2022-snapshot-of-race-and-home-buying-in-the-us-report-02-23-2022_0.pdf" target="_blank" title="latest data">latest data</a> from NAR shows the median household net worth of a homeowner is roughly $300,000, while the median net worth of renters is only about $8,000. That means a homeowner’s net worth is nearly 40 times that of a renter.
<img src="https://assets.site-static.com/userfiles/1763/image/kcm-infographic-1660601493.jpg" width="1000" height="870" />
Bottom Line
The U.S. homeownership rate is growing. If you’re ready to purchase the home of your dreams in La Mesa, El Cajon, Alpine, Descanso, Santee, Lakeside, Lemon Grove, Spring Valley or anywhere in East San Diego County, let’s connect so you can begin the homebuying process today.2022-08-16T06:30:00-07:002022-08-15T15:33:53-07:00Steven Rotsarttag:eastsandiegocounty.com,2012-09-20:21334Is the Shifting Market a Challenge or an Opportunity for East County Homebuyers?If you tried to <a href="https://www.mykcm.com/2022/07/13/should-i-buy-a-home-right-now/" title="buy a home">buy a home</a> East San Diego county during the pandemic, you know the limited supply of homes for sale was a considerable challenge. It created intense bidding wars which drove <a href="https://www.mykcm.com/2022/07/21/think-home-prices-are-going-to-fall-think-again/" title="home prices">home prices</a> up as buyers competed with one another to be the winning offer.
But what was once your greatest challenge may now be your greatest opportunity. Today, data shows <a href="https://www.mykcm.com/2022/07/26/a-window-of-opportunity-for-homebuyers/" title="buyer demand">buyer demand</a> is moderating in the wake of higher mortgage rates. Here are a few reasons why this shift in the <a href="https://www.mykcm.com/2022/07/29/three-reasons-to-buy-a-home-in-todays-shifting-market-infographic/" title="housing market">housing market</a> is good news for your <a href="https://www.mykcm.com/2022/07/15/should-i-rent-or-should-i-buy-infographic/" title="homebuying plans">homebuying plans</a>.
The Challenge
There were many reasons for the limited number of homes on the market during the pandemic, including a <a href="https://www.mykcm.com/2022/07/25/whats-causing-ongoing-home-price-appreciation/" title="history of underbuilding">history of underbuilding</a> new homes since the market <a href="https://www.mykcm.com/2022/07/14/housing-experts-say-this-isnt-a-bubble/" title="crash in 2008">crash in 2008</a>. As the graph below shows, housing supply is well below what the market has seen for most of the past 10 years (see graph below):
<img src="https://assets.site-static.com/userfiles/1763/image/kcm-infographic-1660169060.jpg" width="960" height="840" />
The Opportunity
But that graph also shows a trend back up in the right direction this year. That’s because moderating demand is slowing the <a href="https://www.mykcm.com/2022/07/26/a-window-of-opportunity-for-homebuyers/" title="pace of home sales">pace of home sales</a> and that’s one of the reasons housing supply is finally able to grow. For you, that means you’ll have <a href="https://www.mykcm.com/2022/07/22/great-news-about-housing-inventory-infographic/" title="more options">more options</a> to choose from, so it shouldn’t be as difficult to find your next home as it has been recently.
And having more options may also lead to less intense bidding wars. <a href="https://cdn.nar.realtor/sites/default/files/documents/2022-05-realtors-confidence-index-06-21-2022.pdf" target="_blank" title="Data">Data</a> from the <a href="https://cdn.nar.realtor/sites/default/files/documents/2022-06-realtors-confidence-index-report-07-20-2022.pdf" target="_blank" title="Realtors Confidence Index">Realtors Confidence Index</a> from the National Association of Realtors (NAR) shows this trend has already begun. In their recent reports, bidding wars are easing month-over-month (see graph below):
<img src="https://assets.site-static.com/userfiles/1763/image/kcm-infographic-1660169116.jpg" width="960" height="840" />
If you’ve been outbid before or you’ve struggled to find a home that meets your needs, breathe a welcome sigh of relief. The big takeaway here is you have more options and less competition today.
Just remember, while easing, data shows multiple-offer scenarios are still happening – they’re just not as intense as they were over the past year. You should still lean on <a href="https://www.mykcm.com/2022/07/28/a-real-estate-professional-helps-you-separate-fact-from-fiction/" title="an agent">an agent</a> to guide you through the process and help you make your strongest offer up front.
Bottom Line
If you’re still looking to make a move in La Mesa, El Cajon, Alpine, Descanso, Santee, Lakeside, Lemon Grove, Spring Valley or anywhere in East San Diego County, it may be time to pick your home search back up today. Let’s connect to kick off the homebuying process.2022-08-11T06:13:00-07:002022-08-10T15:21:10-07:00Steven Rotsarttag:eastsandiegocounty.com,2012-09-20:21206Buying a Home May Make More Financial Sense Than Renting OneIf rising home prices leave you wondering if it makes more sense to <a href="https://www.mykcm.com/2022/07/15/should-i-rent-or-should-i-buy-infographic/" title="rent or buy">rent or buy</a> a home in today’s housing market, consider this. It’s not just <a href="https://www.mykcm.com/2022/07/25/whats-causing-ongoing-home-price-appreciation/" title="home prices">home prices</a> that have risen in recent years – rental prices have skyrocketed as well. As a recent article from realtor.com <a href="https://www.realtor.com/research/june-2022-rent/" target="_blank" title="says">says</a>:
“The median rent across the 50 largest US metropolitan areas reached $1,876 in June, a new record level for Realtor.com data for the 16th consecutive month.”
That means <a href="https://www.mykcm.com/2022/07/21/think-home-prices-are-going-to-fall-think-again/" title="rising prices">rising prices</a> will likely impact your housing plans either way. But there are a few key differences that could make <a href="https://www.mykcm.com/2022/07/13/should-i-buy-a-home-right-now/" title="buying a home">buying a home</a> a more worthwhile option for you.
If You Need More Space, Buying a Home May Be More Affordable
What you may not realize is that, according to the latest data from <a href="https://www.realtor.com/research/june-2022-rent/" target="_blank" title="realtor.com">realtor.com</a> and the <a href="https://cdn.nar.realtor/sites/default/files/documents/hai-05-2022-housing-affordability-index-2022-07-08.pdf" target="_blank" title="National Association of Realtors">National Association of Realtors</a> (NAR), it may actually be more affordable to buy than rent depending on how many bedrooms you need. The graph below uses the median rental payment and median mortgage payment across the country to show why.
<img src="https://assets.site-static.com/userfiles/1763/image/kcm-infographic-1659564774.jpg" width="960" height="840" />
As the graph conveys, if you need two or more bedrooms, it may actually be more affordable to buy a home even as prices rise. While this doesn’t take into consideration the interest deduction or other financial advantages that come with owning a home, it does help paint the picture that it may be more affordable to buy than rent for that unit size based on nationwide averages. So, if one of the factors motivating you to move is a desire for more space, this could be the added encouragement you need to consider homeownership.
Homeownership Also Provides Stability and a Chance to Grow Your Wealth
In addition to being more affordable depending on how many bedrooms you need, buying has two other key benefits: payment stability and equity.
When you <a href="https://www.mykcm.com/2022/07/27/want-to-buy-a-home-now-may-be-the-time/" title="buy a home">buy a home</a>, you lock in your monthly payment with your fixed-rate mortgage. And that’s especially important in today’s <a href="https://www.mykcm.com/2022/07/20/should-you-buy-a-home-with-inflation-this-high/" title="inflationary economy">inflationary economy</a>. With <a href="https://www.mykcm.com/2022/06/23/homeownership-is-a-great-hedge-against-the-impact-of-rising-inflation/" title="inflation">inflation</a>, prices rise across the board for things like gas, groceries, and more. Locking in your housing payment, which is likely your largest monthly expense, can provide greater long-term stability and help shield you from those rising expenses moving forward. Renting doesn’t provide that same predictability. A recent article from CNET <a href="https://www.cnet.com/personal-finance/mortgages/should-you-buy-a-home-in-2022-or-wait-3-factors-to-consider/" target="_blank" title="explains">explains</a> it like this:
“…if you buy a house and secure a fixed-rate mortgage, that means that no matter how much prices or interest rates go up, your fixed payment will stay the same every month. That’s an advantage over renting since there’s a good chance your landlord will raise your rent to counter inflationary pressures.”
Not to mention, when you buy, you have the chance to build <a href="https://www.mykcm.com/2022/06/21/the-average-homeowner-gained-64k-in-equity-over-the-past-year/" title="equity">equity</a>, which in turn grows your <a href="https://www.mykcm.com/2022/03/28/a-key-to-building-wealth-is-homeownership/" title="net worth">net worth</a>. It works like this. As you pay down your home loan over time and as home values continue to appreciate, so does your <a href="https://www.mykcm.com/2022/07/06/how-your-equity-can-grow-over-time/" title="equity">equity</a>. And that equity can make it easier to <a href="https://www.mykcm.com/2022/07/08/why-growing-home-equity-is-great-news-if-you-plan-to-move-infographic/" title="fuel a move">fuel a move</a> into a future home if you decide you need a bigger home later on. Again, the CNET article mentioned above helps explain:
“Homeownership is still considered one of the most reliable ways to build wealth. When you make monthly mortgage payments, you’re building equity in your home that you can tap into later on. When you rent, you aren’t investing in your financial future the same way you are when you’re paying off a mortgage.”
Bottom Line
If you’re trying to decide whether to keep renting or buy a home in La Mesa, El Cajon, Alpine, Descanso, Santee, Lakeside, Lemon Grove, Spring Valley or anywhere in East San Diego County, let’s connect to explore your options. With home equity and a shield against inflation on the line, it may make more sense to buy a home if you’re able to.2022-08-04T06:25:00-07:002022-08-03T15:33:06-07:00Steven Rotsarttag:eastsandiegocounty.com,2012-09-20:21160Why Are People Moving Today?Buying a home is a major life <a href="https://www.mykcm.com/2022/07/13/should-i-buy-a-home-right-now/" title="decision">decision</a>. That’s true whether you’re purchasing for the first time or selling your house to fuel a move. And if you’re planning to buy a home in East County, you might be hearing about today’s <a href="https://www.mykcm.com/2022/07/07/what-does-an-economic-slowdown-mean-for-the-housing-market/" title="shifting market">shifting market</a> and wondering what it means for you.
While <a href="https://www.mykcm.com/2022/07/12/expert-housing-market-forecasts-for-the-second-half-of-the-year/" title="mortgage rates">mortgage rates</a> are higher than they were at the start of the year and <a href="https://www.mykcm.com/2022/06/16/home-price-deceleration-doesnt-mean-home-price-depreciation/" title="home prices">home prices</a> are rising, you shouldn’t put your plans on hold based solely on market factors. Instead, it’s necessary to consider why you want to move and how important those reasons are to you. Here are two of the biggest personal motivators driving people to buy homes today.
A Need for More Space
Moving.com looked at <a href="https://www.moving.com/tips/where-are-people-moving-to-top-trends-2022/" target="_blank" title="migration patterns">migration patterns</a> to determine why people moved to specific areas. One trend that emerged was the need for additional space, both indoors and outdoors.
Outgrowing your home isn’t new. If you’re craving a large yard, more entertaining room, or just need more storage areas or bedrooms overall, having the physical space you need for your desired lifestyle may be reason enough to make a change.
A Desire to Be Closer to Loved Ones
Moving and storage company United Van Lines <a href="https://www.unitedvanlines.com/newsroom/movers-study-2021" target="_blank" title="surveys">surveys</a> customers each year to get a better sense of why people move. The latest survey finds nearly 32% of people moved to be closer to loved ones.
Another moving and storage company, Pods, also <a href="https://www.pods.com/blog/2022/04/moving-trends/" target="_blank" title="highlights">highlights</a> this as a top motivator for why people move. They note that an increase in flexible work options has helped many homeowners make a move closer to the people they care about most:
“. . . a shifting of priorities has also affected why people are moving. Many companies have moved to permanent remote working policies, giving employees the option to move freely around the country, and people are taking advantage of the perk.”
If you can move to another location because of remote work, retirement, or for any other reason, you could leverage that flexibility to be closer to the most important people in your life. Being nearby for caregiving and being able to attend get-togethers and life milestones could be exactly what you’re looking for.
What Does That Mean for You?
If you’re thinking about moving in La Mesa, El Cajon, Alpine, Descanso, Santee, Lakeside, Lemon Grove, Spring Valley or anywhere in East San Diego County, one of these reasons might be a top motivator for you. And while what’s happening with mortgage rates and <a href="https://www.mykcm.com/2022/07/25/whats-causing-ongoing-home-price-appreciation/" title="home prices">home prices</a> in the <a href="https://www.mykcm.com/2022/07/14/housing-experts-say-this-isnt-a-bubble/" title="housing market">housing market</a> today will likely play a role in your decision, it’s equally important to make sure your home meets your needs. Like Charlie Bilello, Founder and CEO of Compound Capital Advisors, <a href="https://compoundadvisors.com/2020/homes-castles-and-price-expectations" target="_blank" title="says">says</a>:
“Your home is your castle and should confer benefits beyond just the numbers.”
Bottom Line
There are many reasons why people decide to move. No matter what the reason may be, if your needs have changed, let’s connect to discuss your options in today’s East County housing market.2022-08-02T06:29:00-07:002022-08-01T15:31:44-07:00Steven Rotsarttag:eastsandiegocounty.com,2012-09-20:21095Three Reasons to Buy a Home in Today’s Shifting Market<img src="https://assets.site-static.com/userfiles/1763/image/kcm-infographic-1659132763.jpg" />
The housing market is moving away from the frenzy of the past year and it’s opening doors for you if you’re thinking about <a href="https://www.mykcm.com/2022/07/27/want-to-buy-a-home-now-may-be-the-time/" title="buying a home">buying a home</a>.
<a href="https://www.globenewswire.com/news-release/2022/05/19/2447085/0/en/Existing-Home-Sales-Retract-2-4-in-April.html" target="_blank" title="Housing inventory">Housing inventory</a> is <a href="https://www.nar.realtor/newsroom/existing-home-sales-slid-5-4-in-june" target="_blank" title="increasing">increasing</a>, which means <a href="https://www.mykcm.com/2022/07/22/great-news-about-housing-inventory-infographic/" title="more options">more options</a> for your search. Plus, the intensity of <a href="https://cdn.nar.realtor/sites/default/files/documents/2022-06-realtors-confidence-index-report-07-20-2022.pdf" target="_blank" title="bidding wars">bidding wars</a> may ease as buyer demand moderates, leading to fewer homes selling above <a href="https://cdn.nar.realtor/sites/default/files/documents/2022-05-realtors-confidence-index-06-21-2022.pdf" target="_blank" title="asking price">asking price</a>.
If you’re ready to buy a home in La Mesa, El Cajon, Alpine, Descanso, Santee, Lakeside, Lemon Grove, Spring Valley or anywhere in East San Diego County, now may be the moment you’ve been waiting for. Let’s connect to start the homebuying process today.2022-07-30T06:25:00-07:002022-07-29T15:29:57-07:00Steven Rotsarttag:eastsandiegocounty.com,2012-09-20:21056Want To Buy a Home in East County? Now May Be the Time.There are <a href="https://www.mykcm.com/2022/07/22/great-news-about-housing-inventory-infographic/" title="more homes for sale">more homes for sale</a> today than at any time last year. So, if you tried to <a href="https://www.mykcm.com/2022/07/13/should-i-buy-a-home-right-now/" title="buy a home">buy a home</a> in East County last year and were outbid or out priced, now may be your opportunity. The number of homes for sale in the U.S. has been growing over the past four months as rising <a href="https://www.mykcm.com/2022/07/26/a-window-of-opportunity-for-homebuyers/" title="mortgage rates">mortgage rates</a> help slow the frenzy the <a href="https://www.mykcm.com/2022/07/14/housing-experts-say-this-isnt-a-bubble/" title="housing market">housing market</a> saw during the pandemic.
Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), <a href="https://www.bloomberg.com/news/articles/2022-07-08/should-i-buy-a-house-with-rates-lower-experts-say-prices-may-fall-more" target="_blank" title="explains">explains</a> why the shifting market creates a window of opportunity for you:
“This is an opportunity for people with a secure job to jump into the market, when other people are a little hesitant because of a possible recession. . . They’ll have fewer buyers to compete with.”
Two Reasons There Are More Homes for Sale
The first reason the market is seeing more homes available for sale is the number of sales happening each month has decreased. This slowdown has been caused by rising mortgage rates and rising <a href="https://www.mykcm.com/2022/07/25/whats-causing-ongoing-home-price-appreciation/" title="home prices">home prices</a>, leading many to postpone or put off buying. The graph below uses data from realtor.com to show how <a href="https://www.realtor.com/research/data/" target="_blank" title="active real estate listings">active real estate listings</a> have risen over the past four months as a result.
<img src="https://assets.site-static.com/userfiles/1763/image/kcm-infographic-1658959548.jpg" width="960" height="840" />
The second reason the market is seeing <a href="https://www.mykcm.com/2022/06/28/a-key-opportunity-for-homebuyers/" title="more homes available">more homes available</a> for sale is because the number of people selling their homes is also rising. The graph below outlines <a href="https://www.realtor.com/research/data/" target="_blank" title="new monthly listings">new monthly listings</a> coming onto the market compared to last year. As the graph shows, for the past three months, more people have put their homes on the market than the previous year.
<img src="https://assets.site-static.com/userfiles/1763/image/kcm-infographic-1658959572.jpg" width="960" height="840" />
Bottom Line
The number of homes for sale across the country is growing, and that means more options for those thinking about buying a home in La Mesa, El Cajon, Alpine, Descanso, Santee, Lakeside, Lemon Grove, Spring Valley or anywhere in East San Diego County. Whether you were outbid or out priced last year and have been waiting for this opportunity, let’s connect so that I can help you win in today’s market.2022-07-28T06:13:00-07:002022-07-27T15:16:23-07:00Steven Rotsarttag:eastsandiegocounty.com,2012-09-20:21031A Window of Opportunity for East County HomebuyersMortgage rates are much higher today than they were at the beginning of the year, and that’s had a clear impact on the <a href="https://www.mykcm.com/2022/07/12/expert-housing-market-forecasts-for-the-second-half-of-the-year/" title="housing market">housing market</a>. As a result, the market is seeing a shift back toward the range of pre-pandemic levels for buyer demand and home sales.
But the transition back toward pre-pandemic levels isn’t a bad thing. In fact, the years leading up to the pandemic were some of the best the housing market has seen. That’s why, as the market undergoes this shift, it’s important to compare today not to the abnormal pandemic years, but to the most recent normal years to show how the current <a href="https://www.mykcm.com/2022/07/14/housing-experts-say-this-isnt-a-bubble/" title="housing market">housing market</a> is still strong.
Higher Mortgage Rates Are Moderating the Housing Market
The <a href="https://www.showingtime.com/showingtime-showing-index/" target="_blank" title="ShowingTime Showing Index">ShowingTime Showing Index</a> tracks the traffic of home showings according to agents and brokers. It’s also a good indication of buyer demand over time. Here’s a look at their <a href="https://www.showingtime.com/blog/may-2022-showing-index-results/" target="_blank" title="data">data</a> going back to 2017 (see graph below):
<img src="https://assets.site-static.com/userfiles/1763/image/kcm-infographic-1658873333.jpg" width="1000" height="870" />
Here’s a breakdown of the story this data tells:
The 2017 through early 2020 numbers (shown in gray) give a good baseline of pre-pandemic demand. The steady up and down trends seen in each of these years show typical seasonality in the market.
The blue on the graph represents the pandemic years. The height of those blue bars indicates home showings skyrocketed during the pandemic.
The most recent data (shown in green), indicates buyer demand is moderating back toward more pre-pandemic levels.
This shows that buyer demand is coming down from levels seen over the past two years, and the frenzy in real estate is easing because of higher mortgage rates. For you, that means buying your next home should be <a href="https://www.mykcm.com/2022/06/28/a-key-opportunity-for-homebuyers/" title="less challenging">less challenging</a> than it would’ve been during the pandemic because there is more inventory available.
Higher Mortgage Rates Slow the Once Frenzied Pace of Home Sales
As mortgage rates started to rise this year, other shifts began to occur too. One additional example is the slowing pace of home sales. Using <a href="https://www.nar.realtor/newsroom/existing-home-sales-slid-5-4-in-june" target="_blank" title="data">data</a> from the National Association of Realtors (NAR), here’s a look at <a href="https://www.nar.realtor/research-and-statistics/housing-statistics/existing-home-sales" target="_blank" title="existing home sales">existing home sales</a> going all the way back to 2017. Much like the previous graph, a similar trend emerges (see graph below):
<img src="https://assets.site-static.com/userfiles/1763/image/kcm-infographic-1658873442.jpg" width="1000" height="870" />
Again, the data paints a picture of the shift:
The pre-pandemic years (shown in gray) establish a baseline of the number of existing home sales in more typical years.
The pandemic years (shown in blue) exceeded the level of sales seen in previous years. That’s largely because low mortgage rates during that time spurred buyer demand and home sales to new heights.
This year (shown in green), the market is feeling the impact of higher mortgage rates and that’s moderating buyer demand (and by extension home sales). That’s why the expectation for home sales this year is closer to what the market saw in 2018-2019.
Why Is All of This Good News for You?
Both of those factors have opened up a window of opportunity for homeowners <a href="https://www.mykcm.com/2022/07/18/wondering-where-youll-move-if-you-sell-your-house-today/" title="looking to move">looking to move</a> and for <a href="https://www.mykcm.com/2022/07/13/should-i-buy-a-home-right-now/" title="buyers">buyers</a> looking to purchase a home. As demand moderates and the pace of home sales slows, housing inventory is able to grow – and that gives you <a href="https://www.mykcm.com/2022/06/17/more-listings-are-coming-onto-the-market-infographic/" title="more options">more options</a> for your home search.
So don’t let the headlines about the market cooling or moderating scare you. The housing market is still strong; it’s just easing off from the unsustainable frenzy it saw during the height of the pandemic – and that’s a good thing. It opens up new opportunities for you to find a home that meets your needs.
Bottom Line
The housing market is undergoing a shift because of higher mortgage rates, but the market is still strong. If you’ve been looking to buy a home over the last couple of years and it felt impossible to do, now may be your opportunity. Buying a home right now isn’t easy, but there is more opportunity for those who are looking. Let’s connect today so I can guide you through the process of moving to your dream home in La Mesa, El Cajon, Alpine, Descanso, Santee, Lakeside, Lemon Grove, Spring Valley or anywhere in East San Diego County.
2022-07-27T06:34:00-07:002022-07-26T15:38:15-07:00Steven Rotsarttag:eastsandiegocounty.com,2012-09-20:20974Great News About Housing Inventory in East County<img src="https://assets.site-static.com/userfiles/1763/image/kcm-infographic-1658528180-min-min.jpg" width="1046" height="2165" />
Experts say the number of homes for sale is <a href="https://www.mykcm.com/2022/06/28/a-key-opportunity-for-homebuyers/" title="growing">growing</a> this year, and that can have a big impact on your move.
If you’re planning to buy in La Mesa, El Cajon, Alpine, Descanso, Santee, Lakeside, Lemon Grove, Spring Valley or anywhere in East San Diego County, <a href="https://news.move.com/2022-06-13-Realtor-com-R-2022-Forecast-Update-Real-Estate-Gets-a-Refresh-from-the-Frenzy" target="_blank" title="additional options">additional options</a> in today’s market may be just what you’ve been waiting for. More <a href="https://www.mykcm.com/2022/06/17/more-listings-are-coming-onto-the-market-infographic/" title="inventory">inventory</a> means <a href="https://www.nar.realtor/blogs/economists-outlook/measuring-affordability-and-availability-of-homes-as-mortgage-rates-continue-to-rise" target="_blank" title="added opportunities">added opportunities</a> to find the home of your dreams.
Let’s connect so you have the latest information on available homes in East County.2022-07-23T06:30:00-07:002022-07-22T15:33:07-07:00Steven Rotsarttag:eastsandiegocounty.com,2012-09-20:20948Think Home Prices Are Going to Fall in East County? Think AgainOver the last two years, the rate of home prices appreciated at a dramatic pace. While that led to incredible <a href="https://www.mykcm.com/2022/06/21/the-average-homeowner-gained-64k-in-equity-over-the-past-year/" title="equity gains">equity gains</a> for homeowners, it’s also caused some buyers to wonder if home prices will fall. It’s important to know the housing market <a href="https://www.mykcm.com/2022/07/14/housing-experts-say-this-isnt-a-bubble/" title="isn’t a bubble">isn’t a bubble</a> about to burst, and home price growth is supported by strong market fundamentals.
To understand why price declines are unlikely, it’s important to explore what caused home prices to rise so much recently, and where experts say home prices are headed. Here’s what you need to know.
Home Prices Rose Significantly in Recent Years
The graph below uses the latest data from <a href="https://www.corelogic.com/press-releases/corelogic-data-national-home-price-gains-continue-to-exceed-20-in-may/" target="_blank" title="CoreLogic">CoreLogic</a> to illustrate the rise in home prices over the past year and a half. The gray bars represent the dramatic increase in the rate of home price appreciation in 2021. The green bars show home prices are still rising in 2022, but not as quickly:
<img src="https://assets.site-static.com/userfiles/1763/image/kcm-infographic-1658441263.jpg" width="960" height="840" />
You might be asking: why did home prices climb so much last year? It’s because there were more buyers than there were homes for sale. That imbalance put upward pressure on home prices because demand was extremely high, and supply was record low.
Where Experts Say Prices Will Go from Here
While <a href="https://www.mykcm.com/2022/06/28/a-key-opportunity-for-homebuyers/" title="housing inventory">housing inventory</a> is increasing and buyer demand is softening today, there’s still a shortage of homes available for sale. That’s why the market is seeing ongoing price appreciation. Mark Fleming, Chief Economist at First American, <a href="https://twitter.com/YahooFinance/status/1545073046393802757" target="_blank" title="explains">explains</a> it like this:
“. . .we’re still well below normal levels of inventory and that’s why even with the pullback in demand, we still see house prices appreciating. While there is more inventory, it’s still not enough.”
As a result, experts are projecting a more moderate rate of <a href="https://www.mykcm.com/2022/06/16/home-price-deceleration-doesnt-mean-home-price-depreciation/" title="home price appreciation">home price appreciation</a> this year, which means home prices will continue rising, but at a slower pace. That doesn’t mean prices are going to fall. As Selma Hepp, Deputy Chief Economist at CoreLogic, <a href="https://www.bankrate.com/real-estate/housing-market-predictions/" target="_blank" title="says">says</a>:
“The current home price growth rate is unsustainable, and higher mortgage rates coupled with more inventory will lead to slower home price growth but unlikely declines in home prices.”
In other words, even with higher mortgage rates, moderating buyer demand, and more <a href="https://www.mykcm.com/2022/06/17/more-listings-are-coming-onto-the-market-infographic/" title="homes for sale">homes for sale</a>, experts say home price appreciation will slow, but prices won’t decline.
If you’re planning to buy a home in La Mesa, El Cajon, Alpine, Descanso, Santee, Lakeside, Lemon Grove, Spring Valley or anywhere in East San Diego County, that means you shouldn’t wait for home prices to drop to make your purchase. Instead, buying today means you can get ahead of future price increases, and benefit from the rise in prices in the form of <a href="https://www.mykcm.com/2022/07/08/why-growing-home-equity-is-great-news-if-you-plan-to-move-infographic/" title="home equity">home equity</a>.
Bottom Line
Home prices skyrocketed in recent years because there was more demand than supply. As the market shifts, experts aren’t forecasting a drop in prices, just a slowdown in the rate of price growth. To understand what’s happening with home prices in East San Diego County, let’s connect today.2022-07-22T06:19:00-07:002022-07-21T15:21:24-07:00Steven Rotsarttag:eastsandiegocounty.com,2012-09-20:20896Should You Buy a Home in East County with Inflation This High?While the Federal Reserve is working hard to bring down inflation, the <a href="https://www.nytimes.com/live/2022/07/12/business/cpi-report-inflation" target="_blank" title="latest data">latest data</a> shows the inflation rate is still going up. You no doubt are feeling the pinch on your wallet at the gas pump or the grocery store, but that news may also leave you wondering: should I still buy a home right now?
Greg McBride, Chief Financial Analyst at Bankrate, <a href="https://www.bankrate.com/mortgages/inflation-housing-market/" target="_blank" title="explains">explains</a> how inflation is affecting the housing market:
“Inflation will have a strong influence on where mortgage rates go in the months ahead. . . . Whenever inflation finally starts to ease, so will mortgage rates — but even then, home prices are still subject to demand and very tight supply.”
No one knows how long it’ll take to bring down <a href="https://www.mykcm.com/2022/05/20/dont-let-rising-inflation-delay-your-homeownership-plans-infographic/" title="inflation">inflation</a>, and that means the future trajectory of mortgage rates is also unclear. While that uncertainty isn’t comfortable, here’s why both inflation and mortgage rates are important for you and your homeownership plans.
When you buy a home, the mortgage rate and the price of the home matter. Higher mortgage rates impact how much you’ll pay for your monthly mortgage payment – and that directly affects how much you can comfortably afford. And while there’s no denying it’s more expensive to buy and finance a home this year than it was last year, it doesn’t mean you should pause your search. Here’s why.
Homeownership Is Historically a Great Hedge Against Inflation
In an inflationary economy, prices rise across the board. Historically, homeownership is a <a href="https://www.mykcm.com/2022/06/23/homeownership-is-a-great-hedge-against-the-impact-of-rising-inflation/" title="great hedge">great hedge</a> against those rising costs because you can lock in what’s likely your largest monthly payment (your mortgage) for the duration of your loan. That helps stabilize some of your monthly expenses. Not to mention, as <a href="https://www.mykcm.com/2022/06/16/home-price-deceleration-doesnt-mean-home-price-depreciation/" title="home prices">home prices</a> continue to appreciate, your home’s value will too. That’s why Mark Cussen, Financial Writer at Investopedia, <a href="https://www.investopedia.com/articles/investing/060916/top-5-ways-hedge-against-inflation.asp" target="_blank" title="says">says</a>:
“Real estate is one of the time-honored inflation hedges. It’s a tangible asset, and those tend to hold their value when inflation reigns, unlike paper assets. More specifically, as prices rise, so do property values.”
Also, no one is calling for homes to lose value. As Selma Hepp, Deputy Chief Economist at CoreLogic, <a href="https://www.bankrate.com/real-estate/housing-market-predictions/" target="_blank" title="says">says</a>:
“The current home price growth rate is unsustainable, and higher mortgage rates coupled with more inventory will lead to slower home price growth but unlikely declines in home prices.”
In a nutshell, your home search doesn’t have to go on hold because of rising inflation or higher mortgage rates. There’s more to consider when it comes to why you want to buy a home. In addition to shielding yourself from the impact of inflation and growing <a href="https://www.mykcm.com/2022/07/06/how-your-equity-can-grow-over-time/" title="your wealth">your wealth</a> through ongoing price appreciation, there are other reasons to buy a home right now like addressing your changing needs and so much more.
Bottom Line
Homeownership is one of the best decisions you can make in an inflationary economy. You get the benefit of the added security of owning your home in a time when experts are forecasting prices to continue to rise. Let’s connect so that I can help you find opportunities in La Mesa, El Cajon, Alpine, Descanso, Santee, Lakeside, Lemon Grove, Spring Valley or anywhere in East San Diego County.2022-07-21T06:28:00-07:002022-07-20T15:31:17-07:00Steven Rotsarttag:eastsandiegocounty.com,2012-09-20:20878Why Pre-Approval Is a Game Changer for East County HomebuyersIf you’re planning to <a href="https://www.mykcm.com/2022/06/28/a-key-opportunity-for-homebuyers/" title="buy a home">buy a home</a> this year, you might have heard that pre-approval is a necessary step to take before starting out on your journey. But why is that? And is it still important in <a href="https://www.mykcm.com/2022/07/12/expert-housing-market-forecasts-for-the-second-half-of-the-year/" title="today’s shifting market">today’s shifting market</a>?
The truth is, getting a pre-approval letter from your lender is critical, and when it comes to your home search, it can be a game changer in so many ways.
To better understand why, it’s important to know what pre-approval is. Freddie Mac <a href="https://myhome.freddiemac.com/blog/homeownership/how-do-i-get-pre-approved-mortgage" target="_blank" title="defines">defines</a> the process like this:
“A pre-approval is an indication from your lender that they are willing to lend you a certain amount of money to buy your future home. The lender you work with will provide you with a pre-approval letter, which is an official document that states the maximum amount they are willing to lend you, . . .”
Put simply, pre-approval from a lender helps you understand your true price range and how much money you can borrow for <a href="https://www.mykcm.com/2022/06/22/things-to-avoid-after-applying-for-a-home-loan/" title="your loan">your loan</a>. That can make it easier when you set out to search for homes in La Mesa, El Cajon, Alpine, Descanso, Santee, Lakeside, Lemon Grove, Spring Valley or anywhere in East San Diego County. And since you’ll know what you’re approved for, it’ll also help once it’s time to submit an offer on the home of your <a href="https://www.mykcm.com/2022/07/05/is-homeownership-still-the-american-dream/" title="dreams">dreams</a>.
Another added benefit is that pre-approval lets the seller know you’re qualified to buy their house. Paul Centopani, Editor for the Mortgage Reports, <a href="https://themortgagereports.com/92875/first-time-buyer-expert-financial-tips-podcast" target="_blank" title="explains">explains</a>:
“. . . most sellers won’t even consider an offer unless the buyer is pre-approved at the right price point. Sellers and their agents want to know you’re ready and able to finance your offer amount. So you’ll want to have your preapproval teed up as soon as you’re serious about bidding on a home you like.”
Every advantage you can gain as a buyer is crucial in a market that’s <a href="https://www.mykcm.com/2022/06/14/is-the-housing-market-correcting/" title="constantly changing">constantly changing</a>. You’re going to need guidance to navigate these waters, so it’s important to have a team of professionals, such as a real estate advisor and trusted lender, on your side. They’ll help make sure you’re ready to put your best foot forward.
Bottom Line
Getting pre-approved for a mortgage helps you better understand what you can borrow and shows sellers you’re serious about purchasing their home. Let’s connect so you have the tools you need to succeed as a homebuyer in today’s shifting market.2022-07-20T06:19:00-07:002022-07-19T15:24:17-07:00Steven Rotsarttag:eastsandiegocounty.com,2012-09-20:20855Wondering Where You’ll Move if You Sell Your East County House Today?If you put a pause on your home search because you weren’t sure where you’d go once you sold your East County house, it might be a <a href="https://www.mykcm.com/2022/06/07/why-the-growing-number-of-homes-for-sale-is-good-for-your-move-up/" title="good time">good time</a> to get back into the market. That’s because today’s market is <a href="https://www.mykcm.com/2022/06/14/is-the-housing-market-correcting/" title="undergoing a shift">undergoing a shift</a>, and the supply of homes for sale is increasing as a result. That means you may have a better chance of finding a home that will meet your current needs. Here are some options to consider.
Buying an Existing Home Can Give You That Lived-in Charm
According to the National Association of Realtors (NAR), the supply of <a href="https://www.nar.realtor/newsroom/existing-home-sales-fell-3-4-in-may-median-sales-price-surpasses-400000-for-the-first-time" target="_blank" title="existing homes">existing homes</a> (a home that’s been previously owned) has steadily increased since the beginning of the year. The graph below indicates inventory levels are rising, and that’s largely due to <a href="https://www.mykcm.com/2022/06/28/a-key-opportunity-for-homebuyers/" title="more homes">more homes</a> coming onto the market and the pace of sales slowing:
<img src="https://assets.site-static.com/userfiles/1763/image/kcm-infographic-1658181998.jpg" width="960" height="840" />
As the graph shows, if you’re looking for a home with lived-in charm, supply is rising, and that’s great news for you.
Danielle Hale, Chief Economist for realtor.com, gives <a href="https://www.realtor.com/research/weekly-housing-trends-view-data-week-june-18-2022/" target="_blank" title="insight">insight</a> into why more homeowners are listing their homes and adding to the growing supply of existing homes today:
“Home sellers in many markets across the country continue to benefit from rising home prices and fast-selling homes. That’s prompted a growing number of homeowners to sell homes this year compared to last, giving home shoppers much needed options. We’ve seen more homes come up for sale this year compared to last year . . .”
There are several benefits to buying an existing home. Many buyers want to purchase a home with history, and the character of older houses is hard to reproduce. Existing homes can often be part of an established neighborhood featuring mature landscaping that can give you additional privacy and boost your curb appeal.
Plus, timing can be a consideration as well. With an existing home, you can move in based on the timeline you agree to with the sellers, rather than building a new home and waiting for construction to finish. This is something to keep in mind, especially if you need to move sooner rather than later.
Just remember, while more sellers are listing their homes, supply is still low overall. That means you’ll have more options to choose from as you search for your next home, but you’ll still need to be prepared for a fast-moving market.
Purchasing a Newly Built or Under Construction Home Means Brand New Everything
Census <a href="https://www.census.gov/construction/nrs/pdf/newressales.pdf" target="_blank" title="data">data</a> shows there’s an increasing number of new homes available for sale. It includes homes that are under construction, soon to be completed, and fully built. As the graph below highlights, the supply of new homes for sale has also grown this year:
<img src="https://assets.site-static.com/userfiles/1763/image/kcm-infographic-1658182047.jpg" width="960" height="840" />
When building a new home, you can create your perfect living space and customize it to your lifestyle. That could mean everything from requesting energy efficient options to specific design features. Plus, you’ll have the benefit of all new appliances, windows, roofing, and more. These can all help lower your <a href="https://www.mykcm.com/2022/03/25/how-an-energy-efficient-home-can-be-a-bright-idea-infographic/" title="energy costs">energy costs</a>, which can add up to significant savings over time.
The lower maintenance that comes with a newer home is another great advantage. When you have a new home, you likely won’t have as many little repairs to tackle, like leaky faucets, shutters to paint, and other odd jobs around the house. And with new construction, you’ll also have warranty options that may cover portions of your investment for the first few years.
Keep in mind, purchasing a new home could mean waiting a considerable amount of time before you can move. Robert Dietz, Chief Economist and Senior Vice President for Economics and Housing Policy at the National Association of Home Builders (NAHB), <a href="https://eyeonhousing.org/2022/06/new-home-sales-increase-in-may-before-feds-june-rate-rise/" target="_blank" title="explains">explains</a>:
“New single-family home inventory remained elevated at a 7.7 months’ supply. . . . However, only 8.3% of new home inventory is completed and ready to occupy. The remaining have not started construction (25.9%) or are currently under construction.”
That’s an important factor when making your decision and one you should discuss with a trusted real estate advisor. I’ll help you think through all the pros and cons of both new and existing homes to help you arrive at your best decision.
Bottom Line
With the supply of homes for sale rising in East San Diego County, you have options for your next home no matter what your preferences are. If you have questions or want help deciding what’s best for you, let’s connect and start the conversation today.2022-07-19T06:21:00-07:002022-07-18T15:33:58-07:00Steven Rotsarttag:eastsandiegocounty.com,2012-09-20:20836Should I Rent or Should I Buy in East County?<img src="https://assets.site-static.com/userfiles/1763/image/kcm-infographic-1657924089-min-min.jpg" width="1046" height="2259" />
It’s worth considering the many benefits of homeownership before you make the decision to rent or buy a home in La Mesa, El Cajon, Alpine, Descanso, Santee, Lakeside, Lemon Grove, Spring Valley or anywhere in East San Diego County.
When you buy, you can <a href="https://www.mykcm.com/2022/06/23/homeownership-is-a-great-hedge-against-the-impact-of-rising-inflation/" title="stabilize">stabilize</a> your housing costs, own a tangible <a href="https://www.mykcm.com/2022/07/01/real-estate-consistently-voted-best-investment-infographic/" title="asset">asset</a>, and grow your <a href="https://www.mykcm.com/2022/07/06/how-your-equity-can-grow-over-time/" title="net worth">net worth</a> as you <a href="https://www.mykcm.com/2022/06/21/the-average-homeowner-gained-64k-in-equity-over-the-past-year/" title="gain equity">gain equity</a>. When you rent, you face <a href="https://www.census.gov/housing/hvs/files/currenthvspress.pdf" target="_blank" title="rising housing costs">rising housing costs</a>, won’t see a return on your investment, and limit your ability to save.
If you want to learn more about the benefits of homeownership, let’s connect today.2022-07-16T06:36:00-07:002022-07-15T15:41:09-07:00Steven Rotsarttag:eastsandiegocounty.com,2012-09-20:20772Should I Buy a Home Right Now?If you’ve been thinking about <a href="https://www.mykcm.com/2022/06/28/a-key-opportunity-for-homebuyers/" title="buying a home">buying a home</a> in East County, you likely have one question on the top of your mind: should I buy right now, or should I wait? While no one can answer that question for you, here’s some information that could help you make your decision.
The Future of Home Price Appreciation
Each quarter, Pulsenomics <a href="https://pulsenomics.com/surveys/#home-price-expectations" target="_blank" title="surveys">surveys</a> a national panel of over 100 economists, real estate experts, and investment and market strategists to compile projections for the future of <a href="https://www.mykcm.com/2022/06/16/home-price-deceleration-doesnt-mean-home-price-depreciation/" title="home price appreciation">home price appreciation</a>. The output is the Home Price Expectation Survey. In the latest release, it forecasts home prices will continue appreciating over the next five years (see graph below):
<img src="https://assets.site-static.com/userfiles/1763/image/kcm-infographic-1657750034.jpg" width="1000" height="870" />
As the graph shows, the rate of appreciation will moderate over the next few years as the <a href="https://www.mykcm.com/2022/06/14/is-the-housing-market-correcting/" title="market shifts">market shifts</a> away from the unsustainable pace it saw during the pandemic. After this year, experts project home price appreciation will continue, but at levels that are more typical for the market. As Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), <a href="https://www.marketplace.org/2022/05/18/signs-that-red-hot-housing-market-may-be-cooling-down/" target="_blank" title="says">says</a>:
“People should not anticipate another double-digit price appreciation. Those days are over. . . . We may return to more normal price appreciation of 4%, 5% a year.”
For you, that ongoing appreciation should give you peace of mind <a href="https://www.mykcm.com/2022/07/01/real-estate-consistently-voted-best-investment-infographic/" title="your investment">your investment</a> in homeownership is worthwhile because you’re buying an asset that’s projected to grow in value in the years ahead.
What Does That Mean for You?
To give you an idea of how this could impact your <a href="https://www.mykcm.com/2021/08/30/the-difference-in-net-worth-between-homeowners-and-renters-is-widening/" title="net worth">net worth</a>, here’s how a typical home could grow in value over the next few years using the expert price appreciation projections from the Pulsenomics survey mentioned above (see graph below):
<img src="https://assets.site-static.com/userfiles/1763/image/kcm-infographic-1657750085.jpg" width="1000" height="870" />
As the graph conveys, even at a more typical pace of appreciation, you still stand to make significant <a href="https://www.mykcm.com/2022/06/21/the-average-homeowner-gained-64k-in-equity-over-the-past-year/" title="equity gains">equity gains</a> as your home grows in value. That’s what’s at stake if you delay your plans.
Bottom Line
If you’re ready to become a homeowner in La Mesa, El Cajon, Alpine, Descanso, Santee, Lakeside, Lemon Grove, Spring Valley or anywhere in East San Diego County, know that buying today can set you up for long-term success as your asset’s value (and your own net worth) is projected to grow with the ongoing home price appreciation. Let’s connect to begin your homebuying process today.2022-07-14T06:17:00-07:002022-07-13T15:26:19-07:00Steven Rotsarttag:eastsandiegocounty.com,2012-09-20:20710The Drop in Mortgage Rates Brings Good News for East County HomebuyersOver the past few weeks, the average 30-year fixed mortgage rate from <a href="https://www.freddiemac.com/pmms" target="_blank" title="Freddie Mac">Freddie Mac</a> fell by half a percent. The drop happened over concerns about a <a href="https://www.mykcm.com/2022/07/07/what-does-an-economic-slowdown-mean-for-the-housing-market/" title="potential recession">potential recession</a>. And since mortgage rates have risen dramatically this year, <a href="https://www.mykcm.com/2022/06/08/what-are-the-best-options-for-todays-first-time-homebuyers/" title="homebuyers">homebuyers</a> across the country should see this decline as welcome news.
Freddie Mac <a href="https://www.freddiemac.com/pmms/archive" target="_blank" title="reports">reports</a> that the average 30-year rate was down to 5.30% from 5.81% two weeks prior (see graph below):
<img src="https://assets.site-static.com/userfiles/1763/image/kcm-infographic-1657577450.jpg" width="1000" height="870" />
But why is this recent dip such good news for <a href="https://www.mykcm.com/2022/06/28/a-key-opportunity-for-homebuyers/" title="homebuyers">homebuyers</a>? As Nadia Evangelou, Senior Economist and Director of Forecasting at the National Association of Realtors (NAR), <a href="https://www.instagram.com/p/Cft5YXTO5UR/?hl=en" target="_blank" title="explains">explains</a>:
“According to Freddie Mac, the 30-year fixed mortgage rate dropped sharply by 40 basis points to 5.3 percent. . . . As a result, home buying is about 5 percent more affordable than a week ago. This translates to about $100 less every month on a mortgage payment.”
That’s because when rates go up (as they have for the majority of this year), they impact how much you’ll pay in your monthly mortgage payment, which directly affects how much you can comfortably afford. The inverse is also true. A decrease in mortgage rates means an increase in your purchasing power.
The chart below shows how a half-point, or even a quarter-point, change in mortgage rates can impact your monthly payment:
<img src="https://assets.site-static.com/userfiles/1763/image/kcm-infographic-1657577768.jpg" width="1000" height="870" />
Bottom Line
If your home doesn’t meet your needs, this may be the opportunity you’ve been waiting for to move to La Mesa, El Cajon, Alpine, Descanso, Santee, Lakeside, Lemon Grove, Spring Valley or anywhere in East San Diego County. Let’s connect to see how you can benefit from the current drop in mortgage rates.2022-07-12T06:23:00-07:002022-07-11T15:28:43-07:00Steven Rotsarttag:eastsandiegocounty.com,2012-09-20:20636What Does an Economic Slowdown Mean for the Housing Market?According to a recent <a href="https://www.cnbc.com/2022/05/23/americans-worried-about-the-economy-even-before-inflation-boom-fed-survey-shows.html" target="_blank" title="survey">survey</a>, more and more Americans are concerned about a possible recession. Those concerns were validated when the Federal Reserve met and confirmed they were strongly committed to bringing down inflation. And, in order to do so, they’d use their tools and influence to slow down the economy.
All of this brings up many fears and questions around how it might affect our lives, our jobs, and business overall. And one concern many Americans have is: how will this affect the housing market? We know how <a href="https://www.mykcm.com/2022/05/19/the-one-thing-every-homeowner-needs-to-know-about-a-recession/" title="economic slowdowns">economic slowdowns</a> have impacted home prices in the past, but how could this next slowdown affect real estate and the cost of financing a home?
<a href="https://mtg-specialists.com/2022/05/11/recession-interest-rates-and-real-estate/" target="_blank" title="According">According</a> to Mortgage Specialists:
“Throughout history, during a recessionary period, interest rates go up at the beginning of the recession. But in order to come out of a recession, interest rates are lowered to stimulate the economy moving forward.”
Here’s the data to back that up. If you look back at each recession going all the way to the early 1980s, here’s what happened to mortgage rates during those times (see chart below):
<img src="https://assets.site-static.com/userfiles/1763/image/kcm-infographic-1657231783.jpg" width="1000" height="870" />
As the chart shows, historically, each time the economy slowed down, mortgage rates decreased. Fortune.com helps <a href="https://fortune.com/2019/06/19/next-recession-assets-mortgage-rates/" target="_blank" title="explain">explain</a> the trend like this:
“Over the past five recessions, mortgage rates have fallen an average of 1.8 percentage points from the peak seen during the recession to the trough. And in many cases, they continued to fall after the fact as it takes some time to turn things around even when the recession is technically over.”
And while history doesn’t always repeat itself, we can learn from it. While an economic slowdown needs to happen to help taper inflation, it hasn’t always been a bad thing for the housing market. Typically, it has meant that the cost to finance a home has gone down, and that’s a good thing.
Bottom Line
Concerns of a recession are rising. As the economy slows down, history tells us this would likely mean lower mortgage rates for those looking to refinance or buy a home. While no one knows exactly what the future holds, you can make the right decision for you by working with a trusted real estate professional to get expert advice on what’s happening in the housing market in La Mesa, El Cajon, Alpine, Descanso, Santee, Lakeside, Lemon Grove, Spring Valley or anywhere in East San Diego County and what that means for your homeownership goals.2022-07-08T06:18:00-07:002022-07-07T15:23:20-07:00Steven Rotsarttag:eastsandiegocounty.com,2012-09-20:20567Is Homeownership Still the American Dream?Defining the American dream is personal, and no one individual will have the same definition as another. But the feelings it brings about – success, freedom, and a sense of prosperity – are universal. That’s why, for many people, <a href="https://www.mykcm.com/2022/06/02/how-homeownership-impacts-you/" title="homeownership">homeownership</a> remains a key part of the <a href="https://www.mykcm.com/2022/04/27/the-dream-of-homeownership-is-worth-the-effort/" title="American dream">American dream</a>. Your home is your stake in the community, a strong financial investment, and an achievement to be proud of.
A recent <a href="https://www.bankrate.com/mortgages/homeownership-remains-centerpiece-of-american-dream/" target="_blank" title="survey">survey</a> from Bankrate asked respondents to rank achievements as indicators of financial success, and the responses prove that owning a home is still important to so many Americans today (see graph below):
<img src="https://assets.site-static.com/userfiles/1763/image/kcm-infographic-1657059190.jpg" width="1000" height="870" />
As the graph shows, homeownership ranks above other significant milestones, including retirement, having a successful career, and earning a college degree.
That could be because owning a home is a significant wealth-building tool and provides meaningful financial stability. The National Association of Realtors (NAR) <a href="https://www.nar.realtor/june-is-national-homeownership-month" target="_blank" title="explains">explains</a>:
“Homeownership builds financial security. With 65.5% of Americans owning homes, the net worth of a typical homeowner is nearly 40 times the net worth of a non-owner.”
There are other ways your home acts as more than just a roof over your head, too. The Mortgage Reports highlights a few of the many <a href="https://themortgagereports.com/91167/is-buying-a-house-a-waste-of-money-in-2022#benefits" target="_blank" title="benefits">benefits</a> homeowners enjoy, including:
Your <a href="https://www.mykcm.com/2022/06/21/the-average-homeowner-gained-64k-in-equity-over-the-past-year/" title="equity">equity</a> (and wealth) grows through <a href="https://www.mykcm.com/2022/06/16/home-price-deceleration-doesnt-mean-home-price-depreciation/" title="home price appreciation">home price appreciation</a>.
Your housing costs are fixed – and that can help combat rising costs from <a href="https://www.mykcm.com/2022/06/23/homeownership-is-a-great-hedge-against-the-impact-of-rising-inflation/" title="inflation">inflation</a>.
You’ll have greater privacy and the opportunity to <a href="https://www.mykcm.com/2022/05/18/how-homeownership-can-bring-you-joy/" title="customize">customize</a> your living space.
Plus, homeowners tend to be more active in their community. Like NAR <a href="https://www.nar.realtor/promoting-home-ownership" target="_blank" title="says">says</a>:
“Living in one place for a longer amount of time creates and [sic] obvious sense of community pride, which may lead to more investment in said community.”
What Does That Mean for You?
If your definition of the American Dream involves greater freedom and prosperity, then <a href="https://www.mykcm.com/2022/06/10/the-top-reasons-to-own-your-home-infographic/" title="homeownership">homeownership</a> could play a major role in helping you achieve that dream. When you set out to buy, know there are incredible benefits waiting for you at the end of your journey. You’ll have a place you can call your own, feel most comfortable, and <a href="https://www.mykcm.com/2022/03/28/a-key-to-building-wealth-is-homeownership/" title="grow your wealth">grow your wealth</a>.
First American puts it best, <a href="https://www.firstam.com/economics/homeownership/" target="_blank" title="saying">saying</a>:
“Homeownership remains central to the pursuit of the American Dream. It is a critical driver of economic mobility, delivering financial and social advantages. . . .”
Bottom Line
Buying a home is a powerful decision and a key part of the American Dream. And if homeownership in La Mesa, El Cajon, Alpine, Descanso, Santee, Lakeside, Lemon Grove, Spring Valley or anywhere in East San Diego County is part of your personal dreams this year, let’s connect and start the process today.2022-07-06T06:23:00-07:002022-07-05T15:32:14-07:00Steven Rotsarttag:eastsandiegocounty.com,2012-09-20:20463East County Homeownership Could Be in Reach with Down Payment Assistance ProgramsA recent <a href="https://www.bankrate.com/mortgages/homeownership-remains-centerpiece-of-american-dream/" target="_blank" title="survey">survey</a> from Bankrate asks prospective buyers to identify the biggest obstacles in their homebuying journey. It found that 36% of those polled said saving for a down payment is one of their primary hurdles to buying a home.
If you feel the same way, the good news is there are many down payment assistance programs available that can help you achieve your <a href="https://www.mykcm.com/2022/06/10/the-top-reasons-to-own-your-home-infographic/" title="homeownership goals">homeownership goals</a>. The key is understanding where to look and learning what options are available. Here’s some information that can help you.
You Can Qualify Even if You’ve Purchased a Home Before
There are several misconceptions about down payment assistance programs. For starters, many people believe there’s only assistance available for <a href="https://www.mykcm.com/2022/06/08/what-are-the-best-options-for-todays-first-time-homebuyers/" title="first-time homebuyers">first-time homebuyers</a>. While first-time buyers have many options to explore, repeat buyers have some, too. According to the latest <a href="https://downpaymentresource.com/professional-resource/more-homebuyer-assistance-programs-introduced-as-affordability-declines-in-most-u-s-counties/" target="_blank" title="Homeownership Program Index">Homeownership Program Index</a> from downpaymentresource.com:
“It is a common misconception that homebuyer assistance is only available to first-time homebuyers, however, 38% of homebuyer assistance programs in Q1 2022 did not have a first-time homebuyer requirement.”
That means repeat buyers could qualify for over one-third of the assistance programs available. And if you’re a repeat buyer, you may still be able to take advantage of some first-time homebuyer programs, depending on your personal situation. That’s because downpaymentresource.com also <a href="https://downpaymentresource.com/homebuyer-resource/4-common-down-payment-assistance-program-myths-debunked/" target="_blank" title="notes">notes</a> many of the first-time homebuyer programs use the U.S. Department of Housing and Urban Development’s definition of a first-time homebuyer. Under their <a href="https://archives.hud.gov/offices/hsg/sfh/ref/sfhp3-02.cfm" target="_blank" title="definition">definition</a>, you could qualify as a first-time buyer if you’re:
Someone who hasn’t owned a primary residence in 3 years.
A single parent who’s only ever owned a home with a former spouse.
That means no matter where you are in your <a href="https://www.mykcm.com/2022/06/02/how-homeownership-impacts-you/" title="homeownership">homeownership</a> journey, there could be an option available for you.
You May Be Eligible for Programs Based on Your Location or Profession
In addition to broader options available for repeat and first-time homebuyers, there are other types of down payment assistance programs that you could qualify for based on your location. <a href="https://www.nar.realtor/first-time-homebuyers/first-time-homebuyer-loans-grants" target="_blank" title="According">According</a> to the National Association of Realtors (NAR):
“Many local governments and non-profit organizations offer down-payment assistance grants and loans, targeted to area borrowers and often with specific borrower requirements.”
Plus, there are programs and special benefits for individuals working in certain professions or with unique statuses, including teachers, doctors and nurses, and veterans.
Ultimately, that means there are many federal, state, and local programs available for you to explore. The best way to do that is to connect with a local real estate professional and your lender to learn more about what’s available in your area.
Bottom Line
Down payment assistance programs have helped many homebuyers achieve their dreams, and if you qualify, they could help you too. Let’s connect today so you can begin exploring your options here in La Mesa, El Cajon, Alpine, Descanso, Santee, Lakeside, Lemon Grove, Spring Valley or anywhere in East San Diego County.2022-06-30T06:24:00-07:002022-06-29T15:26:03-07:00Steven Rotsarttag:eastsandiegocounty.com,2012-09-20:20429A Key Opportunity for Homebuyers in East CountyThere’s no denying the housing market has delivered a fair share of challenges to homebuyers over the past two years. Two of the biggest hurdles homebuyers faced during the pandemic were the limited number of homes for sale and the intensity and frequency of bidding wars. But those two things have reached a turning point.
As you may have already heard, the <a href="https://www.mykcm.com/2022/06/17/more-listings-are-coming-onto-the-market-infographic/" title="number of homes">number of homes</a> for sale has increased this year, and even more so this spring. As Danielle Hale, Chief Economist for realtor.com, <a href="https://www.realtor.com/research/weekly-housing-trends-view-data-week-june-18-2022/" target="_blank" title="explains">explains</a>:
“New listings–a measure of sellers putting homes up for sale–were up 6% above one year ago. Home sellers in many markets across the country continue to benefit from rising home prices and fast-selling homes. That’s prompted a growing number of homeowners to sell homes this year compared to last, giving home shoppers much needed options.”
This is encouraging news. <a href="https://www.mykcm.com/2022/05/11/are-there-more-homes-coming-to-the-market/" title="More homes">More homes</a> coming onto the market give you a greater chance of finding one that checks all your boxes.
Buyer Competition Moderating Helps Inventory Grow Even More
Mark Fleming, Chief Economist at First American, <a href="https://blog.firstam.com/economics/the-reconomy-podcast-heres-how-we-know-that-housing-supply-is-still-low" target="_blank" title="says">says</a> inventory growth is happening not just because there’s an increase in the number of listings coming onto the market, but also because buyer demand has moderated some in light of higher mortgage rates and other economic factors:
“There has been a pickup in the inventory that we’ve seen recently, but it’s not from a big increase in new listings . . . but rather a slowdown in the pace of sales. And remember that months’ supply measures the inventory of sale relative to the pace of sales. Same inventory, fewer sales, means more months’ supply.”
Basically, the market is shifting away from the frenzy of buyer competition seen during the pandemic, and that’s helping available inventory grow. In their <a href="https://news.move.com/2022-06-13-Realtor-com-R-2022-Forecast-Update-Real-Estate-Gets-a-Refresh-from-the-Frenzy" target="_blank" title="latest forecast">latest forecast</a>, realtor.com also mentions the moderation of demand as a key factor and projects the inventory growth should continue:
“As rising inflation and mortgage rates bring U.S. housing demand back from the 2021 frenzy, . . . inventory will grow double-digits over 2021 and offer buyers a better-than-expected chance to find a home.”
How This Impacts You
The combination of more homes coming onto the market and a slower pace of home sales means you’ll have more options to choose from as you search for your next home. That’s great news if you’ve been searching for a while with little to no luck. Just remember, there isn’t a sudden surplus of inventory, just more homes to choose from than even a few months ago. So, you’ll still want to be decisive and move fast when you find the right home for you.
And when you do, you may be faced with less competition from other buyers too. If you’ve been waiting to jump into the market because the intensity of the bidding wars was intimidating or if you’ve been outbid on several homes, this moderation could help make the homebuying process a bit smoother. It’s not that it’ll be easy or that bidding wars are a thing of the past – that’s not the case. But it won’t feel nearly as impossible.
Bottom Line
As the housing market begins its shift back toward pre-pandemic levels, you could have a unique opportunity in front of you. With moderating levels of buyer competition and more homes actively for sale, your home search in La Mesa, El Cajon, Alpine, Descanso, Santee, Lakeside, Lemon Grove, Spring Valley or anywhere in East San Diego County may have gotten a bit less challenging. Let’s connect to begin the process today.2022-06-29T06:36:00-07:002022-06-28T15:39:53-07:00Steven Rotsarttag:eastsandiegocounty.com,2012-09-20:20348Homeownership Is a Great Hedge Against the Impact of Rising InflationIf you’re following along with the news today, you’ve heard about rising inflation. Today, <a href="https://www.mykcm.com/2022/05/20/dont-let-rising-inflation-delay-your-homeownership-plans-infographic/" title="inflation">inflation</a> is at a <a href="https://www.cnbc.com/2022/06/10/consumer-price-index-may-2022.html" target="_blank" title="40-year high">40-year high</a>. According to the <a href="https://eyeonhousing.org/2022/06/inflation-hits-a-fresh-40-year-high-in-may/" target="_blank" title="National Association of Home Builders">National Association of Home Builders</a> (NAHB):
“Consumer prices accelerated again in May as shelter, energy and food prices continued to surge at the fastest pace in decades. This marked the third straight month for inflation above an 8% rate and was the largest year-over-year gain since December 1981.”
With inflation rising, you’re likely feeling it impact your day-to-day life as prices go up for gas, groceries, and more. These climbing consumer costs can put a pinch on your wallet and make you re-evaluate any big purchases you have planned to ensure they’re still worthwhile.
If you’ve been thinking about purchasing a home this year, you’re probably wondering if you should continue down that path or if it makes more sense to wait. While the answer depends on your situation, here’s how homeownership can help you combat the rising costs that come with inflation.
Homeownership Helps You Stabilize One of Your Biggest Monthly Expenses
Investopedia <a href="https://www.investopedia.com/terms/i/inflation.asp" target="_blank" title="explains">explains</a> that during a period of high inflation, prices rise across the board. That’s true for things like food, entertainment, and other goods and services, even housing. Both rental prices and <a href="https://www.mykcm.com/2022/06/16/home-price-deceleration-doesnt-mean-home-price-depreciation/" title="home prices">home prices</a> are on the rise. So, as a buyer, how can you protect yourself from increasing costs? The answer lies in <a href="https://www.mykcm.com/2022/06/10/the-top-reasons-to-own-your-home-infographic/" title="homeownership">homeownership</a>.
Buying a home allows you to stabilize what’s typically your biggest monthly expense: your housing cost. When you have a fixed-rate mortgage on your home, you lock in your monthly payment for the duration of your loan, often 15 to 30 years. James Royal, Senior Wealth Management Reporter at Bankrate, <a href="https://www.bankrate.com/investing/inflation-hedges-to-protect-against-rising-prices/" target="_blank" title="says">says</a>:
“A fixed-rate mortgage allows you to maintain the biggest portion of housing expenses at the same payment. Sure, property taxes will rise and other expenses may creep up, but your monthly housing payment remains the same. That’s certainly not the case if you’re renting.”
So even if other prices increase, your housing payment will be a reliable amount that can help keep your budget in check. If you rent, you don’t have that same benefit, and you won’t be protected from rising housing costs.
Investing in an Asset That Historically Outperforms Inflation
While it’s true rising home prices and higher mortgage rates mean that buying a house today costs more than it did even a few months ago, you still have an opportunity to set yourself up for a long-term win. That’s because, in inflationary times, you want to be invested in an asset that outperforms inflation and typically holds or grows in value.
The graph below shows how the average home price appreciation outperformed the average inflation rate in most decades going all the way back to the seventies – making homeownership a historically strong hedge against inflation (see graph below):
<img src="https://assets.site-static.com/userfiles/1763/image/kcm-infographic-1656022146.jpg" width="1000" height="870" />
So, what does that mean for you? Today, experts <a href="https://www.mykcm.com/2022/05/31/what-does-the-rest-of-the-year-hold-for-the-housing-market/" title="forecast">forecast</a> home prices will only go up from here thanks to the ongoing imbalance of supply and demand. Once you buy a house, any home price appreciation that does occur will grow your <a href="https://www.mykcm.com/2022/06/21/the-average-homeowner-gained-64k-in-equity-over-the-past-year/" title="equity">equity</a> and your <a href="https://www.mykcm.com/2022/03/28/a-key-to-building-wealth-is-homeownership/" title="net worth">net worth</a>. And since homes are typically assets that grow in value, you have peace of mind that history shows your investment is a strong one.
That means, if you’re ready and able, it makes sense to buy today before prices rise further.
Bottom Line
If you’ve been thinking about buying a home this year in La Mesa, El Cajon, Alpine, Descanso, Santee, Lakeside, Lemon Grove, Spring Valley or anywhere in East San Diego County, it makes sense to act soon, even with inflation rising. That way you can stabilize your monthly housing cost and invest in an asset that historically outperforms inflation. If you’re ready to get started, let’s connect so you have expert advice on your specific situation when you’re ready to buy a home.2022-06-24T06:07:00-07:002022-06-23T15:35:37-07:00Steven Rotsarttag:eastsandiegocounty.com,2012-09-20:20319Things To Avoid After Applying for a Home LoanOnce you’ve applied for a mortgage to <a href="https://www.mykcm.com/2022/06/08/what-are-the-best-options-for-todays-first-time-homebuyers/" title="buy a home">buy a home</a>, there are some key things to keep in mind. While it’s exciting to start thinking about moving in and decorating, be careful when it comes to making any big purchases. Here are a few things you may not realize you need to avoid after applying for your home loan.
Don’t Deposit Large Sums of Cash
Lenders need to source your money, and cash isn’t easily traceable. Before you deposit any amount of cash into your accounts, discuss the proper way to document your transactions with your loan officer.
Don’t Make Any Large Purchases
It’s not just home-related purchases that could disqualify you from your loan. Any large purchases can be red flags for lenders. People with new debt have higher debt-to-income ratios (how much debt you have compared to your monthly income). Since higher ratios make for riskier loans, borrowers may no longer qualify for their mortgage. Resist the temptation to make any large purchases, even for furniture or appliances.
Don’t Co-Sign Loans for Anyone
When you co-sign for a loan, you’re making yourself accountable for that loan’s success and repayment. With that obligation comes higher debt-to-income ratios as well. Even if you promise you won’t be the one making the payments, your lender will have to count the payments against you.
Don’t Switch Bank Accounts
Lenders need to source and track your assets. That task is much easier when there’s consistency among your accounts. Before you transfer any money, speak with your loan officer.
Don’t Apply for New Credit
It doesn’t matter whether it’s a new credit card or a new car. When you have your credit report run by organizations in multiple financial channels (mortgage, credit card, auto, etc.), it will have an impact on your FICO® score. Lower credit scores can determine your mortgage interest rate and possibly even your eligibility for approval.
Don’t Close Any Accounts
Many buyers believe having less available credit makes them less risky and more likely to be approved. This isn’t true. A major component of your score is your length and depth of credit history (as opposed to just your payment history) and your total usage of credit as a percentage of available credit. Closing accounts has a negative impact on both of those aspects of your score.
In Short, Consult an Expert
To sum it up, be upfront about any changes when talking with your lender. Blips in income, assets, or credit should be reviewed and executed in a way that ensures your <a href="https://www.mykcm.com/2022/06/01/why-home-loans-today-arent-what-they-were-in-the-past/" title="home loan">home loan</a> can still be approved. If your job or employment status has changed recently, share that with your lender as well. Ultimately, it’s best to fully disclose and discuss your intentions with your loan officer before you do anything financial in nature.
Bottom Line
You want your <a href="https://www.mykcm.com/2022/06/02/how-homeownership-impacts-you/" title="home purchase">home purchase</a> to go as smoothly as possible. Remember, before you make any large purchases, move your money around, or make any major life changes, be sure to consult your lender – someone who’s qualified to explain how your financial decisions may impact your home loan. If your ready to buy or sell your home in La Mesa, El Cajon, Alpine, Descanso, Santee, Lakeside, Lemon Grove, Spring Valley or anywhere in East San Diego County, let’s connect so we could start the process right away.2022-06-23T06:18:00-07:002022-06-22T15:21:45-07:00Steven Rotsarttag:eastsandiegocounty.com,2012-09-20:20272Why Achieving the Dream of Homeownership Can Be More Difficult for Some AmericansToday we take time to honor and recognize the past and present experiences of Black Americans. When it comes to real estate specifically, equitable access to housing has come a long way, but the path to homeownership is still steeper for households of color.
The Gap in Homeownership Rate in America
It’s a more challenging journey to achieve <a href="https://www.mykcm.com/2022/06/02/how-homeownership-impacts-you/" title="homeownership">homeownership</a> for some buyers, as shown by the measurable gap between the overall average U.S. homeownership rate and that of non-white groups. Today, Census data shows the lowest <a href="https://www.census.gov/housing/hvs/files/currenthvspress.pdf" target="_blank" title="homeownership rate">homeownership rate</a> persists in the Black community (see graph below):
<img src="https://assets.site-static.com/userfiles/1763/image/kcm-infographic-1655763120.jpg" width="1000" height="870" />
This graph clearly indicates there’s a gap that still exists in the percentage of people in each community who are able to achieve <a href="https://www.mykcm.com/2022/05/18/how-homeownership-can-bring-you-joy/" title="homeownership">homeownership</a>.
How Homeownership Impacts Household Wealth
One of the challenges that could make buying a home harder for these groups is how difficult it can be to accumulate wealth. Even today, there are obstacles certain racial and ethnic groups, especially the Black community, still face. A <a href="https://time.com/nextadvisor/mortgages/what-is-black-homeownership-gap/" target="_blank" title="recent article">recent article</a> from NextAdvisor explains:
“The median Black household earns 61 cents for every dollar earned by a comparable White household, according to the Economic Policy Institute. This not only makes it more difficult to afford a home, but also to accumulate and pass on generational wealth.”
This can delay or prevent many from achieving <a href="https://www.mykcm.com/2022/04/27/the-dream-of-homeownership-is-worth-the-effort/" title="homeownership">homeownership</a>, challenging their ability to grow their <a href="https://www.mykcm.com/2022/03/28/a-key-to-building-wealth-is-homeownership/" title="net worth">net worth</a> and build wealth that can pass down to future generations – a point that’s clear in <a href="https://cdn.nar.realtor/sites/default/files/documents/2022-snapshot-of-race-and-home-buying-in-the-us-04-26-2022.pdf" target="_blank" title="a 2022 report">a 2022 report</a> from the National Association of Realtors (NAR):
“Given that homeownership contributes to wealth accumulation and the homeownership rate is lower in minority groups, data shows that the net worth for these groups is also lower. At $188,200, the net worth of a typical white family was nearly 8 times greater than that of a Black family ($24,100) in 2019.”
It’s important to talk about the experience Black homebuyers may have and the challenges they may face as they pursue their dream of homeownership. The inequity that remains in housing can be a point of pain and frustration. That’s why it’s so important for members of diverse groups to have the right team of experts on their sides throughout the homebuying process.
I, as a professional, am not only an experienced advisor who understand the market and gives the <a href="https://www.mykcm.com/2022/05/23/work-with-a-real-estate-professional-if-you-want-the-best-advice/" title="best advice.">best advice.</a> I’m also a compassionate ally who will advocate for your best interests every step of the way. I can point you to important <a href="https://3by30.org/" target="_blank" title="resources">resources</a> and tools that can help you throughout your journey to homeownership.
Bottom Line
Opportunities in real estate improve every day, but there are still equity challenges that many face. Let’s connect to make sure you have an advocate on your side to help you achieve your dream of homeownership in La Mesa, El Cajon, Alpine, Descanso, Santee, Lakeside, Lemon Grove, Spring Valley or anywhere in East San Diego County.2022-06-21T06:23:00-07:002022-06-20T15:29:50-07:00Steven Rotsarttag:eastsandiegocounty.com,2012-09-20:20146More Americans Choose Real Estate as the Best Investment Than Ever BeforeAmericans’ opinion on the value of real estate as an investment is climbing. That’s according to an annual <a href="https://news.gallup.com/poll/392330/record-low-say-good-time-buy-house.aspx" target="_blank" title="survey">survey</a> from Gallup. Not only is real estate viewed as the best investment for the ninth year in a row, but more Americans selected it than ever before.
The graph below shows the results of the survey since Gallup began asking the question in 2011. As the trend lines indicate, real estate has been gaining ground as the clear favorite for almost a decade now:
<img src="https://assets.site-static.com/userfiles/1763/image/kcm-infographic-1655158533.jpg" width="1000" height="870" />
If you’re thinking about purchasing a home, let this poll reassure you. Even when <a href="https://www.mykcm.com/2022/05/20/dont-let-rising-inflation-delay-your-homeownership-plans-infographic/" title="inflation">inflation</a> is high like today, Americans recognize owning a home is a powerful <a href="https://www.mykcm.com/2022/03/22/the-many-benefits-of-homeownership/" title="financial decision">financial decision</a>.
How an Investment in Real Estate Can Benefit You During High Inflation
Because <a href="https://eyeonhousing.org/2022/06/inflation-hits-a-fresh-40-year-high-in-may/" target="_blank" title="inflation">inflation</a> reached its highest level in <a href="https://www.bankrate.com/investing/inflation-hedges-to-protect-against-rising-prices/" target="_blank" title="40 years">40 years</a> recently, it’s more important than ever to understand the financial benefits of homeownership. Rising inflation means prices are increasing across the board, and that includes goods, services, housing costs, and more. When you purchase your home, you lock in your monthly housing payments, effectively shielding yourself from increases on one of your biggest budgetary items each month.
If you’re a renter, you don’t have that same benefit, and you aren’t protected from these increases, especially as <a href="https://www.mykcm.com/2022/02/25/the-difference-between-renting-and-owning-infographic/" title="rents rise">rents rise</a>. As Danielle Hale, Chief Economist at realtor.com, <a href="https://www.realtor.com/research/weekly-housing-trends-view-data-week-apr-23-2022/" target="_blank" title="notes">notes</a>:
“Rising rents, which continue to climb at double-digit pace . . . and the prospect of locking in a monthly housing cost in a market with widespread inflation are motivating today’s first-time homebuyers.”
When Inflation Has Risen in the Past, Home Prices Have Too
Your house is also an asset that typically increases in value over time, even during inflation. That‘s because as prices rise, the value of your home does too. Mark Cussen, Financial Writer for Investopedia, puts it like <a href="https://www.investopedia.com/articles/investing/060916/top-5-ways-hedge-against-inflation.asp" target="_blank" title="this">this</a>:
“There are many advantages to investing in real estate. . . . It often acts as a good inflation hedge since there will always be a demand for homes, regardless of the economic climate, and because as inflation rises, so do property values. . . .”
And since rising home values help increase your <a href="https://www.mykcm.com/2022/04/08/do-you-know-how-much-equity-you-have-in-your-home-infographic/" title="equity">equity</a>, and by extension your <a href="https://www.mykcm.com/2022/03/28/a-key-to-building-wealth-is-homeownership/" title="net worth">net worth</a>, homeownership is historically a good hedge against inflation.
Bottom Line
Buying a home is a powerful decision. It’s no wonder why so many people view it as the best long-term investment, even when inflation is high. When you buy, you help shield yourself from increases in your housing costs and you own an asset that typically gains value with time. If you want to better understand how buying a home in La Mesa, El Cajon, Alpine, Santee, Lakeside, Lemon Grove, Spring Valley or anywhere in East San Diego County could be a great investment for you, let’s connect today.2022-06-14T06:38:00-07:002022-06-13T15:42:15-07:00Steven Rotsarttag:eastsandiegocounty.com,2012-09-20:20114The Top Reasons to Own Your Home<img src="https://assets.site-static.com/userfiles/1763/image/kcm-infographic-165489894.jpg" width="1046" height="2406" />
June is <a href="https://www.nar.realtor/june-is-national-homeownership-month" target="_blank" title="National Homeownership Month">National Homeownership Month</a>, and it’s a great time to consider the <a href="https://www.mykcm.com/2022/06/02/how-homeownership-impacts-you/" title="benefits">benefits</a> of owning your own home in La Mesa, El Cajon, Alpine, Santee, Lakeside, Lemon Grove, Spring Valley or anywhere in East San Diego County.
If you’re considering <a href="https://www.mykcm.com/2022/05/18/how-homeownership-can-bring-you-joy/" title="homeownership">homeownership</a>, know that it can give you privacy, comfort, and a place to express yourself. It can also provide financial stability and help you grow your net worth.
Are you ready to experience all the great benefits that come from <a href="https://www.mykcm.com/2022/05/05/three-tips-for-first-time-homebuyers/" title="purchasing a home">purchasing a home</a>? Let’s connect to begin the process today.2022-06-11T06:17:00-07:002022-06-10T15:19:17-07:00Steven Rotsarttag:eastsandiegocounty.com,2012-09-20:20073What Are the Best Options for Today’s First-Time Homebuyers?If you’re looking to buy your first home in East San Diego County, you’re likely balancing several factors. Because both <a href="https://www.mykcm.com/2022/05/17/why-rising-mortgage-rates-push-buyers-off-the-fence/" title="mortgage rates">mortgage rates</a> and <a href="https://www.mykcm.com/2022/04/07/the-future-of-home-price-appreciation-and-what-it-means-for-you/" title="home prices">home prices</a> have risen this year, it costs more to buy a home than it did even just a few months ago. But that doesn’t mean you have to put your plans on hold.
If you partner with a trusted real estate advisor and hone your strategy, you can navigate today’s market and find the home you’re looking for. Here are two tips to help you get started.
Work with a Professional to Prioritize Your Wish List
If you’re having trouble finding a home in your budget that checks all the boxes, it may be worth taking another look at your lists of what you want and what you really need. <a href="https://www.nerdwallet.com/article/mortgages/fthb-affordability-q42021" target="_blank" title="According">According</a> to the latest First-Time Homebuyer Metro Affordability Report from NerdWallet, your <a href="https://www.mykcm.com/2022/04/04/balancing-your-wants-and-needs-as-a-homebuyer-today/" title="wish list">wish list</a> can have as much impact on your search as your finances:
“Your budget isn’t all that you need to be concerned about; your wish list and desired location may carry just as much weight.”
It’s all about prioritization. If you’re serious about purchasing your first home soon, be flexible in what you’re looking for to open up your pool of options. Partner with a local <a href="https://www.mykcm.com/2022/05/23/work-with-a-real-estate-professional-if-you-want-the-best-advice/" title="real estate professional">real estate professional</a> to better understand what’s available in today’s market and reprioritize your wish list. Remember, making a concession now doesn’t mean you’ll never have everything on your list. After you’ve moved in, you can always add certain features to make the home <a href="https://www.mykcm.com/2022/05/18/how-homeownership-can-bring-you-joy/" title="your own">your own</a>.
Increase Your Search Radius to Consider More Locations
Some areas may have more homes within your target price range than others, but it may require you to be flexible on your location. For example, if you’re a <a href="https://www.mykcm.com/2022/04/06/remote-work-trends-mean-flexibility-for-first-time-homebuyers/" title="remote worker">remote worker</a>, you may be able to expand your search radius. As Fannie Mae <a href="https://www.fanniemae.com/research-and-insights/perspectives/consumers-discuss-affordability-and-impact-remote-work-housing-preferences" target="_blank" title="explains">explains</a>:
“. . . continued remote work flexibility is likely giving many the ability to live farther away in more affordable areas.”
The decision to search in places with a lower cost of living could help you find a home that fits your budget and checks the most boxes off your wish list.
Bottom Line
If you’re serious about purchasing your first home this year, revisiting your wish list and desired location can help. Let’s connect to explore all the options in La Mesa, El Cajon, Alpine, Santee, Lakeside, Lemon Grove, Spring Valley or anywhere in East San Diego County so you can achieve your homeownership dreams.2022-06-09T06:29:00-07:002022-06-08T15:32:06-07:00Steven Rotsarttag:eastsandiegocounty.com,2012-09-20:19814How Homeownership Impacts YouJune is <a href="https://www.nar.realtor/june-is-national-homeownership-month" target="_blank" title="National Homeownership Month">National Homeownership Month</a>, and it’s the perfect time to reflect on how impactful owning a home can truly be. When you purchase a house, it becomes more than just a space you occupy. It’s your stake in the <a href="https://www.mykcm.com/2022/05/25/how-buying-or-selling-a-home-benefits-the-economy-and-your-community/" title="community">community</a>, an <a href="https://www.mykcm.com/2022/03/28/a-key-to-building-wealth-is-homeownership/" title="investment">investment</a>, and a place you can put your stamp on.
If you’re thinking about buying a home in La Mesa, El Cajon, Jamul, Santee, Lakeside, Lemon Grove, Spring Valley or anywhere in East San Diego this year, here are some of the benefits you’ll experience when you do.
The Emotional Benefits of Homeownership
Because it’s a place that’s uniquely yours, owning a home can give you a sense of pride and <a href="https://www.mykcm.com/2022/05/18/how-homeownership-can-bring-you-joy/" title="happiness">happiness</a> in several ways.
Your Home Can Reflect Your Tastes and Personality
Investopedia puts it like <a href="https://www.investopedia.com/articles/mortgages-real-estate/08/home-ownership.asp" target="_blank" title="this">this</a>:
“One often-cited benefit of homeownership is the knowledge that you own your little corner of the world.”
That knowledge can lead to a powerful, <a href="https://www.mykcm.com/2022/02/14/are-you-ready-to-fall-in-love-with-homeownership/" title="emotional connection">emotional connection</a> to the place where you live. But so can the realization that your home will grow with you. Because it’s yours, you have the freedom to make updates to it as your needs and tastes change. As Logan Mohtashami, Lead Analyst for HousingWire, <a href="https://www.theatlantic.com/family/archive/2022/04/homeownership-first-house-happiness-psychology/629529/" target="_blank" title="says">says</a>:
“The psychology is that this is yours and you’re going to make it as good as possible because you’re in for a long time, . . . “
And that can create a greater sense of ownership, pride, and connection with your home and your community.
It Can Enhance Your Neighborhood and Civic Engagement
Homeownership can lead you to get even more involved with your local area. After all, you’re putting your roots down in a location and will want to do what you can to help improve it, much like your home. In a recent report, the National Association of Realtors (NAR) <a href="https://www.nar.realtor/promoting-home-ownership" target="_blank" title="says">says</a>:
“Living in one place for a longer amount of time creates and [sic] obvious sense of community pride, which may lead to more investment in said community.”
The Financial Benefits of Homeownership
When you choose to become a homeowner, you’re making a financial decision as well. That’s because your home is also an investment.
It Can Help You Feel Financially Stable
Homeownership is truly one of the best ways to improve your long-term financial position. Not only will you have a predictable monthly <a href="https://www.mykcm.com/2022/05/20/dont-let-rising-inflation-delay-your-homeownership-plans-infographic/" title="housing expense">housing expense</a> that can benefit your budget in the short term, but you’ll also gain <a href="https://www.mykcm.com/2022/04/08/do-you-know-how-much-equity-you-have-in-your-home-infographic/" title="equity">equity</a> as your home appreciates in value and you make your monthly mortgage payment. As Freddie Mac <a href="https://myhome.freddiemac.com/owning/equity-and-appreciation" target="_blank" title="says">says</a>:
“Building equity through your monthly principal payments and appreciation is a critical part of homeownership that can help you create financial stability.”
It Can Grow Your Wealth
Because of your growing equity, you can build your <a href="https://www.mykcm.com/2021/08/30/the-difference-in-net-worth-between-homeowners-and-renters-is-widening/" title="net worth">net worth</a> as a homeowner. And when you compare the difference in net worth between a renter and a homeowner, it’s clear that owning a home truly offers a great way to build your long-term financial position.
According to the latest <a href="https://cdn.nar.realtor/sites/default/files/documents/2022-snapshot-of-race-and-home-buying-in-the-us-report-02-23-2022_0.pdf" target="_blank" title="data">data</a> from NAR, the median household net worth of a homeowner is roughly $300,000, while the median net worth of renters is only about $8,000. That means a homeowner’s net worth is nearly 40 times that of a renter.
Bottom Line
Homeownership is truly a way to find greater satisfaction and happiness and to build financial freedom. If National Homeownership Month has you dreaming about purchasing a home in East San Diego, then let’s connect to begin the process today.2022-06-03T06:24:00-07:002022-06-02T15:25:09-07:00Steven Rotsarttag:eastsandiegocounty.com,2012-09-20:19677Why Summer Is a Great Time to Buy a Vacation Home in East San DiegoYou may be someone who looks forward to summer each year because it gives you an opportunity to rest, unwind, and enjoy more quality time with your loved ones. Now that summer is just around the corner, it’s worthwhile to start thinking about your plans and where you want to spend your vacations this year. Here are a few reasons an East San Diego vacation home could be right for you.
Why You May Want to Consider a Vacation Home Today
Over the past two years, a lot has changed. You may be one of many people who now <a href="https://www.mykcm.com/2022/02/04/how-remote-work-impacts-your-home-search-infographic/" title="work from home">work from home</a> and have added flexibility in where you live. You may also be someone who delayed trips for personal or health reasons. If either is true for you, there could be a unique opportunity to use the flexibility that comes with remote work or the money saved while not traveling to <a href="https://www.mykcm.com/2022/02/21/real-estate-voted-the-best-investment-eight-years-in-a-row/" title="invest in your future">invest in your future</a> by buying a vacation home.
<a href="https://www.bankrate.com/mortgages/how-to-buy-a-vacation-home/" target="_blank" title="Bankrate">Bankrate</a> explains why a second home, or a vacation home, may be something worth considering:
“For those who are able, buying a second home is suddenly more appealing, as remote working became the norm for many professionals during the pandemic. Why not work from the place where you like to vacation — the place where you want to live?
If you don’t work remotely, a vacation home could still be at the top of your wish list if you have a favorite getaway spot that you visit often. It beats staying in a tiny hotel room or worrying about rental rates each time you want to take a trip.”
How a Professional Can Help You Find the Right One
So, if you’re looking for an oasis in La Mesa, El Cajon, Jamul, Santee, Lakeside, Lemon Grove or Spring Valley, you may be able to make it a second home rather than just the destination for a trip. If you could see yourself soaking up the sun in a vacation home, you may want to start your search. Summer is a popular time to buy vacation homes. By beginning the process now, you could get ahead of the competition.
The first step is working with a local real estate advisor who can help you find a home in your desired location. I have the knowledge and resources to help you understand the market, what homes are available and at what price points, and more. I can also walk you through all the perks of owning a second home and how it can benefit you.
A <a href="https://www.nar.realtor/newsroom/realtorsr-discuss-top-emerging-tech-trends-impacting-real-estate-industry" target="_blank" title="recent article">recent article</a> from the National Association of Realtors (NAR), mentions some of the top reasons buyers today are looking into purchasing a second, or a vacation, home:
“According to Google’s data, the top reasons that homeowners cited for purchasing a second home were to diversify their investments, earn money renting, and use as a vacation home.”
If any of the reasons covered here resonate with you, let’s connect to learn more. I can give you <a href="https://www.mykcm.com/2022/05/23/work-with-a-real-estate-professional-if-you-want-the-best-advice/" title="expert advice">expert advice</a> based on what you need, your goals, and what you’re hoping to get out of your second home here in East San Diego.
Bottom Line
Owning a vacation home is an investment in your future and your lifestyle. If this is one of your goals this year, you still have time to buy and enjoy spending the summer in your vacation home. When you’re ready to get started, let’s connect.2022-05-27T06:27:00-07:002022-05-26T15:28:48-07:00Steven Rotsarttag:eastsandiegocounty.com,2012-09-20:19592Don’t Let Rising Inflation Delay Your Homeownership Plans<img src="https://assets.site-static.com/userfiles/1763/image/kcm-infographic-1653085845-min-min_1.jpg" width="1046" height="2464" />
If recent headlines about rising inflation are making you wonder if it’s still a good time to buy in La Mesa, El Cajon, Jamul, Santee, Lakeside, Lemon Grove or Spring Valley, here’s what experts have to say.
Housing is an <a href="https://www.mykcm.com/2022/03/28/a-key-to-building-wealth-is-homeownership/" title="asset">asset</a> that typically <a href="https://www.forbes.com/advisor/mortgages/homebuying-can-hedge-against-inflation/" target="_blank" title="grows in value">grows in value</a>. Plus, your mortgage helps <a href="https://www.bankrate.com/investing/inflation-hedges-to-protect-against-rising-prices/" target="_blank" title="stabilize">stabilize</a> your monthly <a href="https://www.mykcm.com/2022/03/22/the-many-benefits-of-homeownership/" title="housing costs">housing costs</a>, and buying protects you from rising rents.
Experts say owning a home is historically a good hedge against <a href="https://www.mykcm.com/2022/04/26/how-homeownership-can-help-shield-you-from-inflation/" title="inflation">inflation</a>. Let’s connect if you’re ready to start the homebuying process today in East San Diego.2022-05-21T06:38:00-07:002022-05-20T15:45:35-07:00Steven Rotsarttag:eastsandiegocounty.com,2012-09-20:19508How Homeownership Can Bring You JoyIf you’re trying to decide whether to rent or buy a home in East San Diego, you’re probably weighing a few different factors. The <a href="https://www.mykcm.com/2022/04/26/how-homeownership-can-help-shield-you-from-inflation/" title="financial benefits">financial benefits</a> of homeownership might be one of the reasons you want to make a purchase if you’re a renter, but the decision can also be motivated by having a place that’s uniquely your own.
If you want to express yourself by upgrading and customizing your living space but are feeling held back by your rental agreement, it might be time to consider the perks of owning your home.
A Little Change Can Bring Lots of Joy
There’s a significant level of pride that comes from <a href="https://www.mykcm.com/2022/04/27/the-dream-of-homeownership-is-worth-the-effort/" title="owning a home">owning a home</a>. That’s because it’s a space that truly belongs to you.
A <a href="https://cdn.nar.realtor/sites/default/files/documents/2022-remodeling-impact-report-04-19-2022.pdf" target="_blank" title="recent report">recent report</a> from the National Association of Realtors (NAR) shows making updates or remodeling your home can help you feel more at ease and comfortable in your living space. NAR measures this with a Joy Score that indicates how much happiness specific home upgrades bring. According to NAR:
“There were numerous interior projects that received a perfect Joy Score of 10: paint entire interior of home, paint one room of home, add a new home office, hardwood flooring refinish, new wood flooring, closet renovation, insulation upgrade, and attic conversion to living area.”
The report also breaks down just how much each of these projects can enhance your emotional attachment to your home, even leading you to want to spend even more time in the space (see graph below):
<img src="https://assets.site-static.com/userfiles/1763/image/kcm-infographic-1652914229.jpg" width="1000" height="870" />
And while many of the items NAR highlights are larger tasks, some, like painting rooms, are much smaller. Even those quicker projects can still bring you a greater sense of joy and accomplishment. Not to mention when you make upgrades in your home, you could be increasing its value which also gives your <a href="https://www.mykcm.com/2022/03/28/a-key-to-building-wealth-is-homeownership/" title="net worth">net worth</a> a boost if you invest your time and effort wisely.
You’re Free to Update Your Home to Your Heart’s Content
These types of updates can result in additional <a href="https://www.mykcm.com/2022/02/01/why-a-move-could-bring-you-more-happiness-this-year/" title="happiness">happiness</a> when you complete them, but there’s another reason you can feel good as a homeowner. In most situations, you’re free to renovate or update the interior of your home without needing additional permission. But as Business Insider <a href="https://www.businessinsider.com/personal-finance/renting-vs-buying-a-house-2022-3" target="_blank" title="points out">points out</a>, renters may not have the same freedom:
“Your landlord won’t always approve changes when you rent. But you have the power to update the home when you’re the owner. (Just make sure any big changes are approved by your homeowner’s association, if necessary.)”
If you do make changes as a renter, there’s a good chance you’ll need to revert them back at the end of your lease based on your rental agreement. That can add additional costs when you move out. That’s one major <a href="https://www.mykcm.com/2022/03/22/the-many-benefits-of-homeownership/" title="benefit">benefit</a> of owning your own home. Unless there are specific homeowner’s association requirements, you typically won’t have to worry about the changes you can and can’t make.
Bottom Line
Deciding whether to rent or buy is a personal decision. The financial benefits are critical, but don’t overlook the emotional impact homeownership can have. Let’s connect to discuss all the benefits you can enjoy when you purchase your own home in La Mesa, El Cajon, Jamul, Santee, Lakeside, Lemon Grove or Spring Valley.2022-05-19T06:57:00-07:002022-05-18T16:01:31-07:00Steven Rotsarttag:eastsandiegocounty.com,2012-09-20:19490Why Rising Mortgage Rates Push Buyers off the FenceIf you’re thinking about <a href="https://www.mykcm.com/2022/05/05/three-tips-for-first-time-homebuyers/" title="buying a home">buying a home</a> in La Mesa, El Cajon, Jamul, Santee, Lakeside, Lemon Grove or Spring Valley, you’ve probably heard <a href="https://www.mykcm.com/2022/04/20/how-to-approach-rising-mortgage-rates-as-a-buyer/" title="mortgage rates">mortgage rates</a> are rising and have wondered what that means for you. Since mortgage rates have increased over <a href="https://www.freddiemac.com/pmms/archive" target="_blank" title="two percentage points">two percentage points</a> this year, it’s natural to think about how this will impact your homeownership plans.
Today, buyers are reacting in one of two ways: they’re either making the decision to buy now before rates climb higher or they’re waiting it out in hopes rates will fall. Let’s look at some context that can help you understand why so many buyers are jumping off the fence and into action rather than waiting to buy.
A Look Back: How the Current Mortgage Rate Compares to Historical Data
One factor that could help you make your decision to buy now is how today’s mortgage rates compare to historical data. While higher than the average 30-year fixed rate in recent years, the latest rates are still comparatively low when you look at the bigger picture of where rates have been since 1971 (see graph below):
<img src="https://assets.site-static.com/userfiles/1763/image/kcm-infographic-1652826325.jpg" width="1000" height="870" />
Mark Fleming, Chief Economist at First American, <a href="https://blog.firstam.com/economics/how-do-rapidly-rising-mortgage-rates-impact-affordability" target="_blank" title="explains">explains</a> it like this:
“. . . historical context is important. An average 30cc-year, fixed mortgage rate of 5.5 percent is still well below the historical average of nearly 8 percent.”
If you’re deciding whether to buy now or wait, this is important context to have. Today’s mortgage rate still gives you a window of opportunity to lock in a rate that’s comparatively lower than decades past.
A Look Ahead: What Happens if Rates Climb Further
The <a href="https://www.mykcm.com/2022/05/10/will-home-prices-fall-this-year-heres-what-experts-say/" title="buyers">buyers</a> who are springing into action now are also motivated to make their move because they know rates have risen steadily this year, and they’re eager to get ahead of any further increases.
Why? When mortgage rates climb, they impact the <a href="https://www.mykcm.com/2022/05/09/how-todays-mortgage-rates-impact-your-home-purchase/" title="monthly mortgage payment">monthly mortgage payment</a> you’ll have on the home you’re buying. Basically, it’ll likely cost you more to buy a home if you wait. Experts say mortgage rates will rise (although more moderately) in the months ahead. Odeta Kushi, Deputy Chief Economist at First American, <a href="https://www.marketwatch.com/story/the-pandemic-boom-in-home-sales-is-over-mortgage-rates-soar-to-highest-level-since-2009-as-the-fed-pressures-the-housing-market-11651760108" target="_blank" title="explains">explains</a>:
“. . . ongoing inflationary pressure remains likely to push mortgage rates even higher in the months to come.”
So, if you’re ready and financially able to buy now, it may make more sense to get off the fence and make your purchase sooner rather than later. As Nadia Evangelou, Senior Economist at the National Association of Realtors (NAR), <a href="https://themortgagereports.com/90320/home-prices-not-dropping-in-2022-experts-say" target="_blank" title="says">says</a>:
“With even higher interest rates on the horizon, I don’t see any reason to hold off from purchasing a home right now. If you feel financially secure, you should start looking for a home.”
At the end of the day, there is no perfect advice on when to buy a home. What you should do depends on your goals, your <a href="https://www.mykcm.com/2022/04/05/what-you-need-to-budget-for-when-buying-a-home/" title="finances">finances</a>, and your personal situation. Use this information with the help of local real estate professionals to make an informed decision on what’s best for you. The Mortgage Reports <a href="https://themortgagereports.com/90320/home-prices-not-dropping-in-2022-experts-say" target="_blank" title="sums it up">sums it up</a> best:
“. . . if you’re on the fence about whether to buy now or wait for a better deal, buying sooner rather than later might be wise. That said, home buying is always a personal decision. Whether you should buy in 2022 depends on your financial situation and the local housing market where you live.”
Bottom Line
For many East San Diego buyers, rising mortgage rates are motivating them to act now and make a purchase before rates rise higher. To decide what move is best for you, let’s connect so you have expert advice on your side.2022-05-18T06:27:00-07:002022-05-17T16:04:18-07:00Steven Rotsarttag:eastsandiegocounty.com,2012-09-20:19348Are There More Homes Coming to the Market?According to a <a href="https://cdn.nar.realtor/sites/default/files/documents/2022-obstacles-to-home-buying-04-12-2022.pdf" target="_blank" title="recent survey">recent survey</a> from the National Association of Realtors (NAR), one of the top challenges buyers face in today’s <a href="https://www.mykcm.com/2022/04/22/myths-about-todays-housing-market-infographic/" title="housing market">housing market</a> is finding a home that meets their needs. That’s largely because the <a href="https://www.mykcm.com/2022/04/01/its-still-a-sellers-market-infographic/" title="inventory">inventory</a> of homes for sale is so low today.
If you’re looking to <a href="https://www.mykcm.com/2022/04/27/the-dream-of-homeownership-is-worth-the-effort/" title="buy a home">buy a home</a>, you may have noticed this yourself. But there is good news. Recent data shows more sellers are listing their houses this season, which may give you more options for your <a href="https://www.mykcm.com/2022/04/05/what-you-need-to-budget-for-when-buying-a-home/" title="home search">home search</a>.
Early Signs Inventory May Be Growing
The <a href="https://www.realtor.com/research/data/" target="_blank" title="latest data">latest data</a> from realtor.com shows the number of listings coming onto the market, known in the industry as “new listings,” has increased since the start of the year (see graph below):
<img src="https://assets.site-static.com/userfiles/1763/image/kcm-infographic-1652307083.jpg" width="1000" height="870" />
This indicates more sellers are listing their homes for sale each month this year. And according to realtor.com, this growth is expected to continue. Their <a href="https://www.realtor.com/research/2022-spring-home-sellers/#anchor-9" target="_blank" title="research">research</a> finds the majority of potential sellers plan to list their homes over the next six months. Realtor.com says:
“. . . markets may see a noticeable bump in the number of homes for sale as we move through spring and into summer. A majority of homeowners planning to sell this year indicated that they aim to list in the next six months, with almost 10% having already placed their properties on the market.”
Homes Are Still Selling Quickly
But while new listings are increasing, it’s important to know they’re also selling quickly. The latest <a href="https://cdn.nar.realtor/sites/default/files/documents/2022-03-realtors-confidence-index-04-20-2022.pdf" target="_blank" title="Realtors Confidence Index">Realtors Confidence Index</a> from NAR shows the median days on market for recently sold homes since the <a href="https://cdn.nar.realtor/sites/default/files/documents/2022-02-realtors-confidence-index-03-18-2022.pdf" target="_blank" title="beginning of the year">beginning of the year</a> (see chart below). The time on market has decreased month-over-month. That means homes are selling even faster than they did the previous month.
<img src="https://assets.site-static.com/userfiles/1763/image/kcm-infographic-1652307338.jpg" width="1000" height="870" />
What That Means for You
While a low-inventory market is difficult to navigate as a <a href="https://www.mykcm.com/2022/04/25/is-it-enough-to-offer-asking-price-in-todays-housing-market/" title="buyer">buyer</a>, there is hope. The growing number of new listings and the expectation more sellers will list their homes in the coming months is great news if you’ve had a hard time finding a home that <a href="https://www.mykcm.com/2022/04/04/balancing-your-wants-and-needs-as-a-homebuyer-today/" title="fits your needs">fits your needs</a>. Just remember, those new listings are going fast. That means you’ll want to keep your foot on the gas and <a href="https://www.mykcm.com/2022/04/19/why-pre-approval-is-an-important-step-for-todays-homebuyers/" title="be ready">be ready</a> to act if you find a home you love this season.
I can help you stay on top of the latest listings in East San Diego so you can find the home that’s right for you and submit your <a href="https://www.mykcm.com/2022/05/03/things-that-could-help-you-win-a-bidding-war-on-a-home/" title="strongest offer">strongest offer</a> as quickly as possible.
Bottom Line
If you’ve been having a hard time finding your dream home in La Mesa, El Cajon, Jamul, Santee, Lakeside, Lemon Grove or Spring Valley, stick with your search. More options are coming to market and your ideal home could be one of them. Let’s connect so you can stay up to date on the latest listings in our market, so you can be ready to move fast when you find the one that’s right for you.2022-05-12T06:27:00-07:002022-05-11T15:34:07-07:00Steven Rotsarttag:eastsandiegocounty.com,2012-09-20:19293How Today’s Mortgage Rates Impact Your Home PurchaseIf you’re planning to buy a home in East San Diego, it’s critical to understand the relationship between <a href="https://www.mykcm.com/2022/04/13/where-are-mortgage-rates-headed/" title="mortgage rates">mortgage rates</a> and your purchasing power. Purchasing power is the amount of home you can afford to buy that’s within your financial reach. Mortgage rates directly impact the monthly payment you’ll have on the home you purchase. So, when rates rise, so does the monthly payment you’re able to lock in on your home loan. In a rising-rate environment like we’re in today, that could limit your future purchasing power.
Today, the average 30-year fixed mortgage rate is <a href="https://www.freddiemac.com/pmms" target="_blank" title="above 5%">above 5%</a>, and in the near term, experts say that’ll likely go up in the months ahead. You have the opportunity to get ahead of that increase if you buy now before that impacts your purchasing power.
Mortgage Rates Play a Large Role in Your Home Search
The <a href="https://www.mortgagecalculator.net/" target="_blank" title="chart">chart</a> below can help you understand the general relationship between mortgage rates and a typical monthly mortgage payment within a range of loan amounts. Let’s say your budget allows for a monthly mortgage payment in the $2,100-$2,200 range. The green in the chart indicates a payment within that range, while the red is a payment that exceeds it (see chart below):
<img src="https://assets.site-static.com/userfiles/1763/image/kcm-infographic-1652134501.jpg" width="1000" height="870" />
As the chart shows, you’re more likely to exceed your target payment range as mortgage rates increase unless you pursue a lower home loan amount. If you’re ready to buy a home, use this as your motivation to purchase now so you can get ahead of rising rates before you have to make the decision to decrease what you borrow in order to stay comfortably within your budget.
Work with Trusted Advisors to Know Your Budget and Make a Plan
It’s critical to keep your <a href="https://www.mykcm.com/2022/04/05/what-you-need-to-budget-for-when-buying-a-home/" title="budget">budget</a> top of mind as you’re searching for a home. Danielle Hale, Chief Economist at realtor.com, puts it best, <a href="https://money.com/spring-home-buying-outlook-tips/" target="_blank" title="advising">advising</a> that buyers should:
“Get preapproved with where rates are today, but also consider what would happen if rates were to go up, say another quarter of a point, . . . Know what that would do to your monthly costs and how comfortable you are with that, so that if rates do move higher, you already know how you need to adjust in response.”
No matter what, the best strategy is to work with your real estate advisor and a trusted lender to <a href="https://www.mykcm.com/2022/04/04/balancing-your-wants-and-needs-as-a-homebuyer-today/" title="create a plan">create a plan</a> that takes rising mortgage rates into consideration. Together, we can look at your budget based on where rates are today and craft a <a href="https://www.mykcm.com/2022/04/19/why-pre-approval-is-an-important-step-for-todays-homebuyers/" title="strategy">strategy</a> so you’re ready to adjust as rates change.
Bottom Line
Even small increases in mortgage rates can impact your purchasing power. If you’re in the process of buying a home in La Mesa, El Cajon, Jamul, Santee, Lakeside, Lemon Grove, Spring Valley or anywhere in East San Diego, it’s more important than ever to have a strong plan. Let’s connect so you have a trusted real estate advisor and a lender on your side who can help you strategize to achieve your dream of homeownership this season.2022-05-10T06:32:00-07:002022-05-09T15:36:36-07:00Steven Rotsarttag:eastsandiegocounty.com,2012-09-20:19227Three Tips for First-Time HomebuyersBuying your first home is a major decision and an exciting milestone. Even though it can feel daunting at times, it has the power to change your life for the better. If you’re looking to purchase your first East San Diego home, you may be wondering what’s happening in the <a href="https://www.mykcm.com/2022/04/22/myths-about-todays-housing-market-infographic/" title="housing market">housing market</a> today, how much you <a href="https://www.mykcm.com/2022/04/05/what-you-need-to-budget-for-when-buying-a-home/" title="need to save">need to save</a>, and <a href="https://www.mykcm.com/2021/11/19/your-journey-to-homeownership-infographic/" title="where to start">where to start</a>.
Here are three things that can help give you the information you need to confidently pursue your dream of <a href="https://www.mykcm.com/2022/04/27/the-dream-of-homeownership-is-worth-the-effort/" title="homeownership">homeownership</a>.
1. Consider All Options When the Number of Homes for Sale Is Low
Today, there are far <a href="https://www.mykcm.com/2022/03/04/supply-and-demand-in-todays-market-infographic/" title="more buyers">more buyers</a> in the market than there are homes available for sale. When that happens, it’s a good idea to do what you can to increase your pool of options. That could mean expanding your search to include additional housing types. For first-time buyers, considering <a href="https://www.mykcm.com/2022/03/31/there-are-several-great-reasons-to-consider-buying-a-condo-today/" title="condominiums">condominiums</a> (condos) and townhomes can be an excellent way to increase your choices. According to <a href="https://www.bankrate.com/real-estate/buying-a-townhouse/" target="_blank" title="Bankrate">Bankrate</a>:
“Townhomes often cost less than single-family homes of a similar size in the same location.”
In another article, Bankrate also <a href="https://www.bankrate.com/real-estate/buying-a-condo/" target="_blank" title="says">says</a>:
“Buying a condo can be a great way to dive into homeownership without worrying about the upkeep that comes with single-family homes and townhouses.”
Condos and townhomes are both great entryways into homeownership. When you buy either one, you can start building <a href="https://www.mykcm.com/2022/04/08/do-you-know-how-much-equity-you-have-in-your-home-infographic/" title="equity">equity</a> which increases your <a href="https://www.mykcm.com/2022/03/28/a-key-to-building-wealth-is-homeownership/" title="net worth">net worth</a> and can fuel a future move.
2. Know Your Down Payment Could Be More Within Reach Than You Think
Saving for a down payment can feel like one of the biggest obstacles for homebuyers, but that doesn’t have to be the case. As the National Association of Realtors (NAR) <a href="https://www.nar.realtor/blogs/economists-outlook/tackling-home-financing-and-down-payment-misconceptions" target="_blank" title="says">says</a>:
“One of the biggest misconceptions among housing consumers is what the typical down payment is and what amount is needed to enter homeownership.”
<a href="https://www.nar.realtor/research-and-statistics/research-reports/highlights-from-the-profile-of-home-buyers-and-sellers" target="_blank" title="Data">Data</a> from NAR shows the median <a href="https://www.mykcm.com/2022/01/03/how-much-do-you-need-for-your-down-payment/" title="down payment">down payment</a> hasn’t been over 20% since 2005. The graph below breaks down the median down payment by age group for recent homebuyers according to the <a href="https://cdn.nar.realtor/sites/default/files/documents/2022-home-buyers-and-sellers-generational-trends-03-23-2022.pdf" target="_blank" title="2022 Home Buyers and Sellers Generational Trends Report">2022 Home Buyers and Sellers Generational Trends Report</a> from NAR (see graph below):
<img src="https://assets.site-static.com/userfiles/1763/image/kcm-infographic-1651788616.jpg" width="960" height="840" />
Based on the data above, the median down payment for all homebuyers is only 13%. That’s well below the common misconception of 20%, and it’s even lower for younger buyers. This could mean you may not need to save as much for a down payment as you initially thought.
There are also down payment <a href="https://www.mykcm.com/2022/03/02/down-payment-assistance-programs-can-help-you-achieve-homeownership/" title="assistance programs">assistance programs</a> available for many buyers. Not to mention, some loan options require as little as 3.5% (or <a href="https://downpaymentresource.com/" target="_blank" title="even 0%">even 0%</a>) down for buyers who qualify. While there are advantages to putting <a href="https://www.mykcm.com/2021/12/22/the-perks-of-putting-20-down-on-a-home/" title="20% down">20% down</a>, especially in today’s competitive market, know that you have options. To get more information on how much you may need to save and the help that’s available, talk with a professional.
3. Work with a Trusted Real Estate Advisor Throughout the Process
Finally, no matter where you’re at in your homeownership journey, the best way to make sure you’re set up for success is to work with a real estate professional.
If you’re just starting out, I can help you with the initial steps, like <a href="https://www.mykcm.com/2022/04/22/myths-about-todays-housing-market-infographic/" title="educating">educating</a> you on the process and connecting you with a trusted lender to get <a href="https://www.mykcm.com/2022/04/19/why-pre-approval-is-an-important-step-for-todays-homebuyers/" title="pre-approved">pre-approved</a>. Once you’re ready to begin your search, I can help you understand the local market and search for available homes. And when it’s time to <a href="https://www.mykcm.com/2022/04/25/is-it-enough-to-offer-asking-price-in-todays-housing-market/" title="make an offer">make an offer</a>, I’ll be an expert advisor and negotiator to help your offer stand out above the rest.
Bottom Line
Knowledge is key to succeeding on your homebuying journey. Knowing market trends, what you need for a down payment, and what options you have as a buyer today can give you the confidence you need to buy a home in in La Mesa, El Cajon, Jamul, Santee, Lakeside, Lemon Grove, Spring Valley or anywhere in East San Diego. Let’s connect so you have an expert on your side who can help you navigate the homebuying process.2022-05-06T06:30:00-07:002022-05-05T15:32:34-07:00Steven Rotsarttag:eastsandiegocounty.com,2012-09-20:19156Things That Could Help You Win a Bidding War on a HomeWith a limited number of <a href="https://www.mykcm.com/2022/04/01/its-still-a-sellers-market-infographic/" title="homes for sale">homes for sale</a> today and so many buyers looking to make a purchase before <a href="https://www.mykcm.com/2022/04/20/how-to-approach-rising-mortgage-rates-as-a-buyer/" title="mortgage rates">mortgage rates</a> rise further, <a href="https://www.mykcm.com/2022/03/10/how-to-navigate-a-market-where-multiple-offers-is-the-new-normal/" title="bidding wars">bidding wars</a> are common. According to the <a href="https://cdn.nar.realtor/sites/default/files/documents/2022-03-realtors-confidence-index-04-20-2022.pdf" target="_blank" title="latest report">latest report</a> from the National Association of Realtors (NAR), nationwide, homes are getting an average of 4.8 offers per sale. Below shows that California homes receive 5 or more offers:
<img src="https://assets.site-static.com/userfiles/1763/image/kcm-infographic-1651616796.jpg" width="1000" height="870" />
The same report from NAR shows the average buyer made two offers before getting their third offer accepted. In this type of competitive East San Diego <a href="https://www.mykcm.com/2022/04/21/why-this-housing-market-is-not-a-bubble-ready-to-pop/" title="housing market">housing market</a>, it’s important to know what levers you can pull to help you beat the competition. While a real estate professional is your ultimate guide to presenting a strong offer, here are a few things you could consider.
Offering over Asking Price
When you think of sweetening the deal for sellers, the first thought you likely have is around the price of the home. In today’s housing market, it’s true more homes are selling for over <a href="https://www.mykcm.com/2022/04/25/is-it-enough-to-offer-asking-price-in-todays-housing-market/" title="asking price">asking price</a> because there are more buyers than there are homes for sale. You just want to make sure your offer is still within your budget and realistic for the market value in your area – that’s where a local real estate professional can help you through the process. Bankrate <a href="https://www.bankrate.com/real-estate/what-is-a-bidding-war/" target="_blank" title="says">says</a>:
“Simply put, being willing to pay more money than other buyers is one of the best ways to get your offer accepted. You may not have to increase it by a lot — it’ll depend on the area and other factors — so look to your real estate agent for guidance.”
Putting Down a Bigger Earnest Money Deposit
You could also consider putting down a larger deposit up front. An <a href="https://www.mykcm.com/2022/04/05/what-you-need-to-budget-for-when-buying-a-home/" title="earnest money deposit">earnest money deposit</a> is a check you write to go along with your offer. If your offer is accepted, this deposit is credited toward your home purchase. NerdWallet <a href="https://www.nerdwallet.com/article/mortgages/win-a-bidding-war-in-a-hot-market" target="_blank" title="explains">explains</a> how it works:
“A typical earnest money deposit is 1% to 2% of the home’s purchase price, but the amount varies by location. A higher earnest money deposit may catch a seller’s attention in a hot housing market.”
That’s because it shows the seller you’re seriously interested in their house and have already set aside money that you’re ready to put toward the purchase. Talk to a professional to see if this is something you can do in your area.
Making a Higher Down Payment
Another option is increasing how much of a <a href="https://www.mykcm.com/2022/01/03/how-much-do-you-need-for-your-down-payment/" title="down payment">down payment</a> you’re going to make. The benefit of a <a href="https://www.mykcm.com/2021/09/22/is-a-20-down-payment-really-necessary-to-purchase-a-home/" title="higher down payment">higher down payment</a> is you won’t have to finance as much. This helps the seller feel like there’s less risk of the deal or the financing falling through. And if other buyers put less down, it could be what helps your offer stand out from the crowd.
Non-Financial Options to Make a Strong Offer
Realtor.com <a href="https://www.realtor.com/advice/buy/multiple-offers-on-a-house/" target="_blank" title="points out">points out</a> that while increasing these financial portions of the deal can help, they’re not your only options:
“. . . Price is not the only factor sellers weigh when they look at offers. The buyer’s terms and contingencies are also taken into account, as well as pre-approval letters, appraisal requirements, and the closing time the buyer is asking for.”
When it’s time to make an offer, partner with a trusted professional. I have insight into what sellers are looking for in La Mesa, El Cajon, Jamul, Santee, Lakeside, Lemon Grove or Spring Valley and can give you expert advice on what levers you may or may not want to pull when it’s time to write an offer.
From a non-financial perspective, this can include things like flexible move-in dates or minimal contingencies (conditions you set that the seller must meet for the purchase to be finalized). For example, you could make an offer that’s not contingent on the sale of your current home. Just remember, there are certain contingencies you don’t want to forego, like your <a href="https://www.mykcm.com/2022/01/28/why-your-home-inspection-matters-infographic/" title="home inspection">home inspection</a>. Ultimately, the options you have can vary state-to-state, so it’s best to lean on an expert real estate professional for guidance.
Bottom Line
In today’s hot housing market, you need a partner who can serve as your guide, especially when it comes to making a strong offer. Let’s connect so you have a trusted resource and coach on how to make the strongest offer possible for your specific situation.2022-05-04T06:46:00-07:002022-05-03T15:50:20-07:00Steven Rotsarttag:eastsandiegocounty.com,2012-09-20:19039The Dream of East San Diego Homeownership Is Worth the EffortIf you’re in the market to buy a home in East San Diego this season, stick with it. Homebuyers face challenges in any market, and today’s is no exception. But if you persevere, your decision to purchase a home will be worth the effort in the end. In fact, a <a href="https://www.bankrate.com/mortgages/homeownership-remains-centerpiece-of-american-dream/#homeownership" target="_blank" title="recent survey">recent survey</a> from Bankrate shows homeownership is so powerful that:
“Nearly three in four homeowners say they would still buy their current home if they had it to do [sic] all over again.”
That means the results – owning a home and the <a href="https://www.mykcm.com/2022/03/22/the-many-benefits-of-homeownership/" title="benefits">benefits</a> that come with it – outweigh the effort needed to achieve their goal. If you’re a homebuyer, let that provide you with the confidence to know the work you’re putting in today will pay off for years to come. Here are a few reasons to stick with your search and focus on the outcome.
Homeownership Contributes Significantly to Your Financial Well-Being
The <a href="https://magazine.realtor/sales-and-marketing/handouts-for-customers/for-buyers/7-reasons-to-own-a-home" target="_blank" title="National Association of Realtors">National Association of Realtors</a> (NAR) lists several motivations to consider if you’re thinking about <a href="https://www.mykcm.com/2022/03/16/are-you-wondering-if-this-is-the-year-to-buy-a-home/" title="buying a home">buying a home</a>. One of the top financial reasons is the <a href="https://www.mykcm.com/2022/03/21/the-average-homeowner-gained-more-than-55k-in-equity-over-the-past-year/" title="equity">equity</a> you build. As NAR says:
“Money paid for rent is money that you’ll never see again, but mortgage payments let you build equity . . . Building equity in your home is a ready-made savings plan.”
Your equity is a powerful tool you can <a href="https://www.mykcm.com/2021/11/22/4-ways-homeowners-can-use-their-equity/" title="leverage">leverage</a> in a number of ways. And with recent home <a href="https://www.mykcm.com/2022/04/07/the-future-of-home-price-appreciation-and-what-it-means-for-you/" title="price appreciation">price appreciation</a>, homeowners are seeing record levels of equity today. That may be one reason why so many people view owning a home as a <a href="https://www.mykcm.com/2022/02/21/real-estate-voted-the-best-investment-eight-years-in-a-row/" title="great investment">great investment</a> and a top indicator of <a href="https://www.mykcm.com/2022/03/28/a-key-to-building-wealth-is-homeownership/" title="financial well-being">financial well-being</a>. As the survey from Bankrate mentioned above shows:
“. . . Americans place a higher value on homeownership than on any other indicator of economic stability, . . .”
Owning a home ranks above other major accomplishments like retirement, having a successful career, and getting a college degree. That indicates just how impactful the financial benefits of homeownership truly are.
The Emotional Benefits of Owning a Home Are Powerful
Of course, <a href="https://www.mykcm.com/2022/02/14/are-you-ready-to-fall-in-love-with-homeownership/" title="homeownership">homeownership</a> is more than an investment. In their list of top reasons to buy a home, NAR also highlights some of the powerful, <a href="https://www.mykcm.com/2022/02/01/why-a-move-could-bring-you-more-happiness-this-year/" title="non-financial">non-financial</a> aspects of homeownership. Among them is the opportunity to customize your home to reflect your personality and needs. As they say:
“The home is yours. You can decorate any way you want and choose the types of upgrades and new amenities that appeal to your lifestyle.”
Another benefit homeowners enjoy is the stability it provides. Homeowners typically stay put longer than renters. According to NAR, when you remain in one place longer than a few years, you can grow closer to your community. And that can enhance your sense of pride and lead to better relationships.
What Does That Mean for You?
The benefits of homeownership are powerful, as Leslie Rouda Smith, President of NAR, <a href="https://www.nar.realtor/newsroom/nar-report-shows-share-of-millennial-home-buyers-continues-to-rise" target="_blank" title="says">says</a>:
“From building personal wealth and fostering communities, to strengthening social stability and driving the national economy, the value of homeownership is indisputable.”
Even if you face challenges in today’s market, the payoff when you succeed and purchase a home will be worth it.
Bottom Line
If you’re planning to buy a home in La Mesa, El Cajon, Jamul, Santee, Lakeside, Lemon Grove or Spring Valley this year, there are incredible benefits waiting for you at the end of your journey. Let’s connect to discuss everything East San Diego homeownership has to offer.2022-04-28T06:29:00-07:002022-04-27T15:31:48-07:00Steven Rotsarttag:eastsandiegocounty.com,2012-09-20:19020How East San Diego Homeownership Can Help Shield You from InflationIf you’re following along with the news today, you’ve likely heard about rising inflation. You’re also likely feeling the impact in your day-to-day life as prices go up for gas, groceries, and more. These rising consumer costs can put a pinch on your wallet and make you re-evaluate any big purchases you have planned to ensure they’re still worthwhile.
If you’ve been thinking about <a href="https://www.mykcm.com/2022/04/05/what-you-need-to-budget-for-when-buying-a-home/" title="purchasing a home">purchasing a home</a> in East San Diego this year, you’re probably wondering if you should continue down that path or if it makes more sense to wait. While the answer depends on your situation, here’s how <a href="https://www.mykcm.com/2022/04/11/using-your-tax-refund-to-achieve-your-homeownership-goals-this-year/" title="homeownership">homeownership</a> can help you combat the rising costs that come with inflation.
Homeownership Offers Stability and Security
Investopedia <a href="https://www.investopedia.com/terms/i/inflation.asp" target="_blank" title="explains">explains</a> that during a period of high inflation, prices rise across the board. That’s true for things like food, entertainment, and other goods and services, even housing. Both <a href="https://www.mykcm.com/2022/03/16/are-you-wondering-if-this-is-the-year-to-buy-a-home/" title="rental prices">rental prices</a> and <a href="https://www.mykcm.com/2022/04/07/the-future-of-home-price-appreciation-and-what-it-means-for-you/" title="home prices">home prices</a> are on the rise. So, as a buyer, how can you protect yourself from increasing costs? The answer lies in homeownership.
Buying a home allows you to stabilize what’s typically your biggest monthly expense: your housing cost. If you get a fixed-rate mortgage on your home, you lock in your monthly payment for the duration of your loan, often 15 to 30 years. James Royal, Senior Wealth Management Reporter at Bankrate, <a href="https://www.bankrate.com/investing/inflation-hedges-to-protect-against-rising-prices/" target="_blank" title="says">says</a>:
“A fixed-rate mortgage allows you to maintain the biggest portion of housing expenses at the same payment. Sure, property taxes will rise and other expenses may creep up, but your monthly housing payment remains the same.”
So even if other prices rise, your housing payment will be a reliable amount that can help keep your budget in check. If you <a href="https://www.mykcm.com/2022/02/25/the-difference-between-renting-and-owning-infographic/" title="rent">rent</a>, you don’t have that same benefit, and you won’t be protected from rising housing costs.
Use Home Price Appreciation to Your Benefit
While it’s true rising <a href="https://www.mykcm.com/2022/04/20/how-to-approach-rising-mortgage-rates-as-a-buyer/" title="mortgage rates">mortgage rates</a> and <a href="https://www.mykcm.com/2022/03/24/what-you-can-expect-from-the-spring-housing-market/" title="home prices">home prices</a> mean buying a house today costs more than it did a year ago, you still have an opportunity to set yourself up for a long-term win. Buying now lets you lock in at today’s rates and prices before both climb higher.
In inflationary times, it’s especially important to invest your money in an asset that traditionally holds or grows in value. The graph below shows how home price appreciation outperformed inflation in most decades going all the way back to the seventies – making homeownership a historically strong hedge against inflation (see graph below):
<img src="https://assets.site-static.com/userfiles/1763/image/kcm-infographic-1651013843.jpg" width="1000" height="870" />
So, what does that mean for you? Today, experts say home prices will only go up from here thanks to the ongoing imbalance in supply and demand. Once you buy a house, any <a href="https://www.mykcm.com/2022/03/21/the-average-homeowner-gained-more-than-55k-in-equity-over-the-past-year/" title="home price appreciation">home price appreciation</a> that does occur will be good for your <a href="https://www.mykcm.com/2022/04/08/do-you-know-how-much-equity-you-have-in-your-home-infographic/" title="equity">equity</a> and your <a href="https://www.mykcm.com/2022/03/28/a-key-to-building-wealth-is-homeownership/" title="net worth">net worth</a>. And since homes are typically assets that grow in value (even in inflationary times), you have peace of mind that history shows your <a href="https://www.mykcm.com/2022/02/21/real-estate-voted-the-best-investment-eight-years-in-a-row/" title="investment">investment</a> is a strong one.
Bottom Line
If you’re ready to buy a home in La Mesa, El Cajon, Jamul, Santee, Lakeside, Lemon Grove or Spring Valley, it may make sense to move forward with your plans despite rising inflation. If you want expert advice on your specific situation and how to time your purchase, let’s connect.2022-04-27T06:06:00-07:002022-04-26T16:12:23-07:00Steven Rotsarttag:eastsandiegocounty.com,2012-09-20:18996Is It Enough to Offer Asking Price in Today’s Housing Market?If you’re planning to <a href="https://www.mykcm.com/2022/03/16/are-you-wondering-if-this-is-the-year-to-buy-a-home/" title="buy a home">buy a home</a> this season, you’re probably thinking about what you’ll need to do to get your offer accepted. In previous years, it was common for buyers to try and determine how much less than the asking price they could offer to still get the home. The buyer and seller would then negotiate and typically agree on a revised price that was somewhere between the buyer’s bid and the home’s initial asking price.
In today’s East San Diego real estate market, buyers shouldn’t shop for a home with the same expectations.
Things Are Different Today
Today’s housing market is anything but normal. According to the <a href="https://cdn.nar.realtor/sites/default/files/documents/2022-03-realtors-confidence-index-04-20-2022.pdf" target="_blank" title="National Association of Realtors">National Association of Realtors</a> (NAR), the average home that’s sold today:
Receives 4.8 offers
Sells in just 17 days
Homes selling quickly and receiving <a href="https://www.mykcm.com/2022/03/10/how-to-navigate-a-market-where-multiple-offers-is-the-new-normal/" title="multiple offers">multiple offers</a> shows how competitive the <a href="https://www.mykcm.com/2022/03/24/what-you-can-expect-from-the-spring-housing-market/" title="housing market">housing market</a> is for buyers right now. This is because there are more buyers on the market than homes for sale. When the <a href="https://www.mykcm.com/2022/03/04/supply-and-demand-in-todays-market-infographic/" title="number of homes">number of homes</a> available can’t keep up with demand, homes often sell for more than the asking price.
How Does This Impact You When It’s Time to Submit an Offer?
Market conditions should help guide your decisions throughout the process. Today, the asking price of a home is often the floor of the negotiation rather than the ceiling. Knowing this is important when it’s time to <a href="https://www.mykcm.com/2021/12/28/5-tips-for-making-your-best-offer-on-a-home/" title="submit an offer">submit an offer</a>, but you should also use that information as you’re searching for homes too. After all, you don’t want to fall in love with a home that ultimately sells for a price higher than what you’ve <a href="https://www.mykcm.com/2022/04/05/what-you-need-to-budget-for-when-buying-a-home/" title="budgeted">budgeted</a> for.
The Mortgage Reports has <a href="https://themortgagereports.com/70484/how-much-over-asking-price-should-you-offer-on-a-house" target="_blank" title="advice">advice</a> if you’re looking to purchase a home in a competitive market. The article encourages you to be realistic with your <a href="https://www.mykcm.com/2022/04/04/balancing-your-wants-and-needs-as-a-homebuyer-today/" title="housing search">housing search</a>, saying:
“The best thing to do is set your budget and expectations ahead of time so you know how much you can afford to offer — and when to walk away. This will make negotiations a lot easier.”
Of course, when you’ve found your dream home, you’ll want to do everything you can to submit your best offer up front and win a potential bidding war. Knowing the current market is key to crafting a winning offer. That’s where working with an expert <a href="https://www.mykcm.com/2022/03/01/an-expert-advisor-will-give-you-the-best-advice-in-todays-market/" title="real estate advisor">real estate advisor</a> becomes critical.
I will draw from their experience and expert-level knowledge of today’s housing market throughout the process. I also balance conditions in La Mesa, El Cajon, Jamul, Santee, Lakeside, Lemon Grove or Spring Valley to make sure your offer stands out above the rest.
Bottom Line
Understanding how to approach the asking price of a home and what’s happening in today’s real estate market are critical for buyers. Let’s connect so we can work together to create a winning plan for you.2022-04-26T07:00:00-07:002022-04-25T16:01:30-07:00Steven Rotsarttag:eastsandiegocounty.com,2012-09-20:18925How To Approach Rising Mortgage Rates as a BuyerIn the last few weeks, the average 30-year fixed mortgage rate from <a href="http://www.freddiemac.com/pmms/" target="_blank" title="Freddie Mac">Freddie Mac</a> inched up to 5%. While that news may have you questioning the timing of your home search, the truth is, timing has never been more important. Even though you may be tempted to put your plans on hold in hopes that rates will fall, waiting will only cost you more. <a href="https://www.mykcm.com/2022/03/30/whats-happening-with-mortgage-rates-and-where-will-they-go-from-here/" title="Mortgage rates">Mortgage rates</a> are forecast to continue rising in the year ahead.
If you’re thinking of buying an East San Diego home, here are a few things to keep in mind so you can succeed even as <a href="https://www.mykcm.com/2022/04/13/where-are-mortgage-rates-headed/" title="mortgage rates">mortgage rates</a> rise.
How Rising Mortgage Rates Impact You
Mortgage rates play a significant role in your home search. As rates go up, they impact how much you’ll pay in your monthly mortgage payment, which directly affects how much you can comfortably afford. Here’s an example of how even a quarter-point increase can have a big impact on your <a href="https://www.mortgagecalculator.net/" target="_blank" title="monthly payment">monthly payment</a> (see chart below):
<img src="https://assets.site-static.com/userfiles/1763/image/kcm-infographic-1650492283.jpg" width="1000" height="870" />
With mortgage rates on the rise, you’ve likely seen your purchasing power impacted already. Instead of delaying your plans, today’s rates should motivate you to purchase now before rates increase more. Use that motivation to energize your search and plan your next steps accordingly.
The best way to prepare is to work with a trusted real estate advisor now. An agent can connect you with a trusted lender, help you adjust your search based on your budget, and make sure you’re ready to act quickly when it’s time to make an offer.
Bottom Line
Serious buyers should approach rising rates as a motivating factor to buy sooner, not a reason to wait. Waiting will cost you more in the long run. Let’s connect today so you can better understand your budget and be prepared to buy your home in La Mesa, El Cajon, Jamul, Santee, Lakeside, Lemon Grove or Spring Valley even before rates climb higher.2022-04-21T06:17:00-07:002022-04-20T15:22:51-07:00Steven Rotsarttag:eastsandiegocounty.com,2012-09-20:18904Why Pre-Approval Is an Important Step for Today’s HomebuyersBeing intentional and competitive are musts when <a href="https://www.mykcm.com/2022/03/16/are-you-wondering-if-this-is-the-year-to-buy-a-home/" title="buying a home">buying a home</a> this season. That’s why pre-approval is so important today. Pre-approval from a lender is the only way to know your true price range and how much money you can borrow for your loan. Peter Warden, Editor of The Mortgage Reports, <a href="https://themortgagereports.com/88315/how-to-start-the-process-of-buying-a-house" target="_blank" title="explains">explains</a>:
“The lender will check out your personal finances and issue you a letter confirming the amount you’re eligible to borrow. This not only gives you a firm budget for house hunting, but also lets sellers know you’re qualified to make an offer.”
Why does that matter so much today? There are many more buyers looking for homes today than there are homes available for sale, and that’s creating some serious <a href="https://www.mykcm.com/2022/03/04/supply-and-demand-in-todays-market-infographic/" title="competition">competition</a>. According to the National Association of Realtors (NAR), the average home is getting <a href="https://cdn.nar.realtor/sites/default/files/documents/2022-02-realtors-confidence-index-03-18-2022.pdf" target="_blank" title="4.8 offers">4.8 offers</a> per sale. As a result, <a href="https://www.mykcm.com/2022/03/10/how-to-navigate-a-market-where-multiple-offers-is-the-new-normal/" title="bidding wars">bidding wars</a> are still common.
Your pre-approval gives you a leg up in these situations. That’s because you know exactly what you’re approved to borrow before you write your offer, and it lets the seller know you’re qualified to buy their home. This helps both you and the seller feel confident in what you’re bringing to the table. And that puts you in a better position to potentially win a bidding war.
As Warden puts it:
“There’s another important reason to get preapproved, too. And that’s because there are way more buyers than homes in today’s market — which means you need to be ultra-prepared if you want to win a bidding war. Most sellers are getting multiple offers right now. And most won’t even entertain an offer without a preapproval letter included.”
Every advantage you can gain as a buyer is crucial in a market that’s constantly changing. <a href="https://www.mykcm.com/2022/03/30/whats-happening-with-mortgage-rates-and-where-will-they-go-from-here/" title="Mortgage rates">Mortgage rates</a> are rising, <a href="https://www.mykcm.com/2022/03/03/are-home-prices-continuing-to-rise/" title="home prices">home prices</a> are going up, and lending institutions are regularly updating their standards. You’re going to need <a href="https://www.mykcm.com/2022/03/01/an-expert-advisor-will-give-you-the-best-advice-in-todays-market/" title="guidance">guidance</a> to navigate these waters, so it’s important to have a team of professionals, such as a loan officer and a trusted real estate advisor, on your side. They’ll help make sure you’re ready to put your best foot forward.
Bottom Line
Getting pre-approved for a mortgage helps you better understand what you can afford and signals to sellers you’re serious about purchasing their East San Diego home. Let’s connect so you have the tools you need to succeed as a homebuyer in today’s market in La Mesa, El Cajon, Jamul, Santee, Lakeside, Lemon Grove or Spring Valley.2022-04-20T06:30:00-07:002022-04-19T15:36:21-07:00Steven Rotsarttag:eastsandiegocounty.com,2012-09-20:18853What Is Multigenerational Housing?<img src="https://assets.site-static.com/userfiles/1763/image/kcm-infographic-1650061580.jpg" />
If you have additional loved ones coming to live with you in East San Diego but don’t have enough space, it may be time to consider a larger, <a href="https://www.mykcm.com/2022/02/03/millions-of-americans-have-discovered-the-benefits-of-multigenerational-households/" title="multigenerational home">multigenerational home</a>.
Some key <a href="https://cdn.nar.realtor/sites/default/files/documents/2022-home-buyers-and-sellers-generational-trends-03-23-2022.pdf" target="_blank" title="benefits">benefits</a> of multigenerational living include a combined homebuying budget, shared caregiving duties, enhanced relationships, and more. These benefits might be why <a href="https://www.gu.org/app/uploads/2021/04/21-MG-Family-Report-WEB.pdf" target="_blank" title="more people">more people</a> are choosing to live in multigenerational homes today.
Let’s connect so you can find a house in La Mesa, El Cajon, Alpine, Jamul, Lakeside, Santee, Spring Valley or Lemon Grove that meets your <a href="https://www.mykcm.com/2022/04/04/balancing-your-wants-and-needs-as-a-homebuyer-today/" title="changing needs">changing needs</a> and has plenty of space for you and your loved ones.2022-04-16T06:40:00-07:002022-04-15T15:46:28-07:00Steven Rotsarttag:eastsandiegocounty.com,2012-09-20:18821Where Are Mortgage Rates Headed?There’s never been a truer statement regarding forecasting mortgage rates than the one offered last year by <a href="https://blog.firstam.com/economics/reconomy-podcast-2021-housing-market-outlook" target="_blank" title="Mark Fleming">Mark Fleming</a>, Chief Economist at First American:
“You know, the fallacy of economic forecasting is: Don’t ever try and forecast interest rates and or, more specifically, if you’re a real estate economist mortgage rates, because you will always invariably be wrong.”
Coming into this year, most experts projected mortgage rates would <a href="https://www.mykcm.com/2021/11/03/experts-project-mortgage-rates-will-continue-to-rise-in-2022/" title="gradually increase">gradually increase</a> and end 2022 in the high three-percent range. It’s only April, and rates have already blown past those numbers. Freddie Mac <a href="https://www.freddiemac.com/pmms/archive" target="_blank" title="announced">announced</a> last week that the 30-year fixed-rate mortgage is already at 4.72%.
Danielle Hale, Chief Economist at realtor.com, <a href="https://twitter.com/RDC_Economics/status/1509534325234098179" target="_blank" title="tweeted on March 31">tweeted on March 31</a>:
“Continuing on the recent trajectory, would have mortgage rates hitting 5% within a matter of weeks. . . .”
Just five days later, on April 5, the Mortgage News Daily <a href="https://www.mortgagenewsdaily.com/mortgage-rates/30-year-fixed" target="_blank" title="quoted">quoted</a> a rate of 5.02%.
No one knows how swiftly mortgage rates will rise moving forward. However, at least to this point, they haven’t significantly impacted purchaser demand. Ali Wolf, Chief Economist at Zonda, <a href="https://www.builderonline.com/data-analysis/mortgage-rates-continue-climbing-while-applications-decrease-in-latest-weekly-surveys_o" target="_blank" title="explains">explains</a>:
“Mortgage rates jumped much quicker and much higher than even the most aggressive forecasts called for at the end of last year, and yet housing demand appears to be holding steady.”
Through February, <a href="https://www.corelogic.com/intelligence/find-stories/record-home-price-appreciation-led-by-sun-belt-states-in-february/" target="_blank" title="home prices">home prices</a>, the <a href="https://www.showingtime.com/blog/february-2022-showing-index-results/" target="_blank" title="number of showings">number of showings</a>, and the number of homes receiving <a href="https://twitter.com/EricFinnigan/status/1508575208738721794" target="_blank" title="multiple offers">multiple offers</a> all saw a substantial increase. However, much of the spike in mortgage rates occurred in March. We will not know the true impact of the increase in mortgage rates until the March housing numbers become available in early May.
Rick Sharga, EVP of Market Intelligence at ATTOM Data, <a href="https://www.attomdata.com/news/market-trends/home-sales-prices/attom-q1-2022-u-s-home-affordability-report/" target="_blank" title="recently">recently</a> put rising rates into context:
“Historically low mortgage rates and higher wages helped offset rising home prices over the past few years, but as home prices continue to soar and interest rates approach five percent on a 30-year fixed rate loan, more consumers are going to struggle to find a property they can comfortably afford.”
While no one knows exactly where rates are headed, experts do think they’ll continue to rise in the months ahead. In the meantime, if you’re looking to buy a home, know that rising rates do have an impact. As rates rise, it’ll cost you more when you purchase a house. If you’re ready to buy, it may make sense to do so sooner rather than later.
Bottom Line
Mark Fleming got it right. Forecasting mortgage rates is an impossible task. However, it’s probably safe to assume the days of attaining a 3% mortgage rate are over. The question is whether that will soon be true for 4% rates as well. If you are ready and able to buy in East San Diego, let’s connect so that I can help you win in this very challenging housing market.2022-04-14T06:48:00-07:002022-04-13T15:49:10-07:00Steven Rotsarttag:eastsandiegocounty.com,2012-09-20:18701The Future of Home Price Appreciation and What It Means for YouMany consumers are wondering what will happen with home values in East San Diego over the next few years. Some are concerned that the recent run-up in home prices will lead to a situation similar to the <a href="https://www.mykcm.com/2022/02/17/4-simple-graphs-showing-why-this-is-not-a-housing-bubble/" title="housing crash">housing crash</a> 15 years ago.
However, experts say the market is totally different today. For example, Odeta Kushi, Deputy Chief Economist at First American, <a href="https://twitter.com/odetakushi/status/1509948951918788608" target="_blank" title="tweeted">tweeted</a> just last week on this issue:
“. . . We do need price appreciation to slow today (it’s not sustainable over the long run) but high price growth today is supported by fundamentals- short supply, lower rates & demographic demand. And we are in a much different & safer space: better credit quality, low DTI [Debt-To-Income] & tons of equity. Hence, a crash in prices is very unlikely.”
Price appreciation will slow from the double-digit levels the market has seen over the last two years. However, experts believe home values will not depreciate (where a home would lose value).
To this point, Pulsenomics just released the latest <a href="https://pulsenomics.com/surveys/#home-price-expectations" target="_blank" title="Home Price Expectation Survey">Home Price Expectation Survey</a> – a survey of a national panel of over 100 economists, real estate experts, and investment and market strategists. It forecasts home prices will continue appreciating over the next five years. Below are the expected year-over-year rates of home price appreciation based on the average of all 100+ projections:
2022: 9%
2023: 4.74%
2024: 3.67%
2025: 3.41%
2026: 3.57%
Those responding to the survey believe home price appreciation will still be relatively high this year (though half of what it was last year), and then return to more normal levels over the next four years.
What Does This Mean for You as a Buyer?
With a limited supply of homes available for sale and both prices and mortgage rates increasing, it can be a challenging market to navigate as a buyer. But buying a home sooner rather than later does have its benefits. If you wait to buy, you’ll pay more in the future. However, if you buy now, you’ll actually be in the position to make future price increases work for you. Once you buy, those rising home prices will help you build your home’s value, and by extension, your own household wealth through home equity.
As an example, let’s assume you purchased a $360,000 home in January of this year (the <a href="https://www.nar.realtor/research-and-statistics" target="_blank" title="median price">median price</a> according to the National Association of Realtors rounded up to the nearest $10K). If you factor in the forecast for appreciation from the Home Price Expectation Survey, you could accumulate over $96,000 in household wealth over the next five years (see graph below):
<img src="https://assets.site-static.com/userfiles/1763/image/kcm-infographic-1649369695.jpg" />
Bottom Line
If you’re trying to decide whether to buy now or wait, the key is knowing what’s expected to happen with home prices. Experts say prices will continue to climb in the years ahead, just at a slower pace. So, if you’re ready to buy, doing so now may be your best bet for your wallet. It’ll also give you the chance to use the future home price appreciation to build your own net worth through rising equity. If you want to get started, let’s connect today so we can find your dream East San Diego home.2022-04-08T06:23:00-07:002022-04-07T15:26:26-07:00Steven Rotsarttag:eastsandiegocounty.com,2012-09-20:18687Remote Work Trends Mean Flexibility for First-Time HomebuyersToday’s <a href="https://www.mykcm.com/2022/02/23/how-supply-and-demand-can-impact-your-buying-and-selling-goals/" title="low inventory">low inventory</a> can be challenging for East San Diego homebuyers, especially if you’re looking to purchase your first home. But if you’re one of many people who work <a href="https://www.mykcm.com/2021/09/21/remote-work-is-here-to-stay-can-your-home-deliver-the-space-you-need/" title="remotely">remotely</a>, you may have a great opportunity to use the flexibility you have at work to achieve your <a href="https://www.mykcm.com/2022/01/07/how-to-hit-your-homebuying-goals-this-year-infographic/" title="homebuying goals">homebuying goals</a> this year.
In a recent report, <a href="https://mortgage.archgroup.com/wp-content/uploads/sites/4/MCUS-B1583A-0222-HaMMR-Winter-2022.pdf" target="_blank" title="Arch Capital Services">Arch Capital Services</a> explains how the ongoing trend of remote work can open up more options for homebuyers:
“. . . This will enable those who are able to work from home on a part-time or hybrid basis to move slightly farther away from job centers. . . . For workers who secure full-time remote jobs, their place of residence will be determined by affordability and personal preferences.”
Basically, working from home is great news if you’re a first-time buyer trying to find a <a href="https://www.mykcm.com/2022/03/17/did-your-dream-home-just-come-on-the-market/" title="home">home</a> that meets your needs and <a href="https://www.mykcm.com/2022/03/09/key-factors-that-impact-affordability-today/" title="budget">budget</a>. Here’s a deeper look at how it could benefit you.
Extra Flexibility in Your Career Means Extra Flexibility in Your Home Search
If your job is 100% remote, you don’t have to be tied to a specific location or office. So, if you’ve been having a hard time finding what you want in your local area, it may be time to expand your search.
One option you could consider is moving to a place where you’ve always wanted to live, like the mountains, beach, or closer to loved ones. When you broaden your search radius to include those locations, it’ll give you additional homes to consider.
It could also allow you to search for a more affordable location where you have more options in your price range. This can help you achieve two goals – saving money and finding additional <a href="https://www.mykcm.com/2022/03/25/how-an-energy-efficient-home-can-be-a-bright-idea-infographic/" title="features">features</a> that meet your needs. To truly highlight this benefit, a recent First American <a href="https://blog.firstam.com/economics/how-the-ability-to-work-remotely-is-changing-housing-affordability-for-first-time-home-buyers" target="_blank" title="article">article</a> discusses the great ways remote work can really help you with your homebuying goals. Ksenia Potapov, Economist at First American, says:
“For potential first-time home buyers, leveraging their house-buying power in more affordable markets can also help them buy more attractive homes – more square footage and rooms, more options for different home styles and neighborhood amenities – increasing the opportunity to find a home that suits their preferences.”
That means you can use your work flexibility to <a href="https://www.mykcm.com/2022/03/16/are-you-wondering-if-this-is-the-year-to-buy-a-home/" title="search">search</a> for homes with the <a href="https://www.mykcm.com/2022/02/28/millennials-do-you-need-a-home-with-more-space/" title="amenities">amenities</a> you need at a lower price point.
Bottom Line
Remote work doesn’t just give you expanded flexibility for your career. If you’re no longer tied to a location because of your office, you have a great opportunity to expand your housing search. Let’s connect to explore how this can open up your options.2022-04-07T06:25:00-07:002022-04-06T15:27:08-07:00Steven Rotsarttag:eastsandiegocounty.com,2012-09-20:18655What You Need to Budget for When Buying an East San Diego HomeWhen it comes to <a href="https://www.mykcm.com/2022/03/16/are-you-wondering-if-this-is-the-year-to-buy-a-home/" title="buying a home">buying a home</a> in East San Diego, it can feel a bit intimidating to know how much you need to save and where to find that information. But you should know, you’re not expected to have all the answers yourself. There are many trusted professionals who can help you understand your finances and what you’ll need to budget for throughout the process.
To get you started, here are a few things experts say you should plan for along the way.
1. Down Payment
As you set your savings goal for your purchase, your <a href="https://www.mykcm.com/2022/01/03/how-much-do-you-need-for-your-down-payment/" title="down payment">down payment</a> is likely already top of mind. And, like many other people, you may believe you need to set aside <a href="https://www.mykcm.com/2021/12/22/the-perks-of-putting-20-down-on-a-home/" title="20%">20%</a> of the home’s purchase price for that down payment – but that’s not always the case. The National Association of Realtors (NAR) <a href="https://www.nar.realtor/blogs/economists-outlook/tackling-home-financing-and-down-payment-misconceptions" target="_blank" title="says">says</a>:
“One of the biggest misconceptions among housing consumers is what the typical down payment is and what amount is needed to enter homeownership. Having this knowledge is critical to know what to save . . .”
The good news is, you may be able to put as little as 3.5% (or even 0%) down in some situations. To understand your options, partner with a trusted professional who can go over the various loan types, down payment <a href="https://www.mykcm.com/2022/03/02/down-payment-assistance-programs-can-help-you-achieve-homeownership/" title="assistance programs">assistance programs</a>, and what each one requires.
2. Earnest Money Deposit
Another item you may want to plan for is an earnest money deposit. While it isn’t required, it’s common in today’s <a href="https://www.mykcm.com/2022/03/10/how-to-navigate-a-market-where-multiple-offers-is-the-new-normal/" title="highly competitive">highly competitive</a> market because it can help your offer stand out in a bidding war.
So, what is it? It’s money you pay as a show of good faith when you make an offer on a house. This deposit works like a credit. You’re using some of the money you already saved for your purchase to show the seller you’re committed and serious about their house. It’s not an added expense, it’s just paying some of that up front. First American <a href="https://blog.firstam.com/15-real-estate-terms-you-should-know" target="_blank" title="explains">explains</a> what it is and how it works:
“The deposit made from the buyer to the seller when submitting an offer. This deposit is typically held in trust by a third party and is intended to show the seller you are serious about purchasing their home. Upon closing the money will generally be applied to your down payment or closing costs.”
In other words, an earnest money deposit could be the very first check you’ll write toward your purchase. The amount varies by state and situation. Realtor.com <a href="https://www.realtor.com/advice/finance/understanding-the-earnest-money-deposit-2/" target="_blank" title="elaborates">elaborates</a>:
“The amount you’ll deposit as earnest money will depend on factors such as policies and limitations in your state, the current market, what your real estate agent recommends, and what the seller requires. On average, however, you can expect to hand over 1% to 2% of the total home purchase price.”
Work with a real estate advisor to understand any requirements in your local area and what they’ve recommended for other buyers in your market. They’ll help you determine if it’s something that could be a useful option for you.
3. Closing Costs
The next thing to plan for is your <a href="https://www.mykcm.com/2022/03/15/dont-get-caught-off-guard-by-closing-costs/" title="closing costs">closing costs</a>. The Federal Trade Commission (FTC) <a href="https://www.ftc.gov/sites/default/files/documents/one-stops/real-estate-competition/realestateglossary.pdf" target="_blank" title="defines">defines</a> closing costs as:
“The upfront fees charged in connection with a mortgage loan transaction. …generally including, but not limited to a loan origination fee, title examination and insurance, survey, attorney’s fee, and prepaid items, such as escrow deposits for taxes and insurance.”
Basically, your closing costs cover the fees for various people and services involved in your transaction. NAR has this to <a href="https://magazine.realtor/daily-news/2020/01/17/what-exactly-do-closing-costs-cover" target="_blank" title="say">say</a> about how much to budget for:
“A home costs more than just the sale price. For example, closing costs—which make up about 2% to 5% of the home’s purchase price—are a major added expense…Lenders provide a Closing Disclosure at least three business days prior to closing on a mortgage. But buyers will need to budget for these added costs ahead of time to avoid sticker shock days before closing.”
The key takeaway is savvy buyers plan ahead for these expenses so they can come into the process prepared. Freddie Mac <a href="https://myhome.freddiemac.com/buying/understanding-costs" target="_blank" title="sums it up">sums it up</a> like this:
“If you’re in the market to buy a home, your down payment is probably top of mind. And rightly so – it’s likely the biggest cost of homebuying. However, it is not the only cost and it’s critical you understand all your expenses before diving in. The more prepared you are for your down payment, closing and other costs, the smoother your homebuying journey will be.”
Bottom Line
Knowing what to budget for in the homebuying process is essential. To make sure you understand these and any other expenses that may come up, let’s connect so you have reliable expertise on what to expect when you buy a home in East San Diego.2022-04-06T06:31:00-07:002022-04-05T15:37:02-07:00Steven Rotsart