Although it may appear that all I do is take care of the kids and knit I am actually a Realtor and I do work. I have a website at , http://www.jmccarthy.mcmillinrealty.com/, I have a monthly e-mail letter that I send out, and I also publish a printed newsletter that I usually give out at open houses. Part of the plan is to educate clients on the buying process. This months letter includes the following Market Conditions Report for Nov. 2007.
According to the University of San Diego’s Center for Real Estate the Leading Economic Indicators (LEI) for San Diego County fell 1.0 percent in September. The list of economic indicators are; building permits, unemployment insurance, stock prices, consumer confidence and help wanted advertising. When each area is reviewed all but stock prices show declines. The study cites the weak housing market as the dominant factor responsible.
Another key area to examine is affordability. San Diego’s median price is around $500,000; however the media family income at approximately $70,000 cannot support either the required down payment or monthly payment. With lenders tightening their mortgage standards fewer first time buyers will be able to enter the housing market.
Most analysts are careful when evaluating the impact of the recent fires on the economy. With approximately 1300 homes destroyed the effect on the Real Estate market should be substantial. Families have a few choices; rent while they rebuild, rent temporarily and look for a home or buy now. The increase to the rental market will cause rents to continue to rise and the consequence will encourage renters to buy. Although it is against the law to price gouge within 30 days of a disaster, some owners have reportedly already taken advantage of the "opportunity". If they get caught it's a $10,000 fine.
The influx of FEMA and insurance monies from claims should boast the economy in a variety of ways; increased purchasing of consumer goods and increased hiring of contractors. These factors may help the housing market here in San Diego.
Traditionally the Real Estate market slows down toward the end of the year and begins to pick-up around late February.
Although most of the news indicates a continued slow down, buyers continue to have big opportunities, with high inventory, low interest rates (rates dipped below 6%, the lowest since March) and seller concessions ( paying closing costs, HOA fees etc...)
Other reasons to buy now include; no bidding wars, lots of choices and options, and seller renovations and upgrades.
While many buyers may choose to wait they will be paying rents and losing a valuable tax deduction. If you are waiting use the time wisely by getting a copy of your credit report. Review any of the discrepancies (there will be problems) and fix everything you can. Improving you credit score will guarantee you the best interest rates.
Don’t wait to find a good loan and interest rate.