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Category Archive: ‘Thinking of Buying?’

Realtor.com is Gaining Viewers

In San Diego, Realtor.com gets our listings automatically uploaded directly from the MLS, where Zillow and Trulia do not.  If you don’t see listings there, it’s because agents don’t know they have to upload manually, or prefer not to use Zillow/Trulia.  Realtor.com is counting on the synergy between the NewsCorp assets to help propel more growth – a discussion:

Posted by on Aug 27, 2015 in Jim's Take on the Market, The Future, Thinking of Buying?, Thinking of Selling? | 0 comments

Love Letter Deluxe

An excerpt from Quartz:

http://qz.com/486677/buying-a-home-in-san-francisco-love-letter-now-required/

Balog has seen what she calls “love letters” written from buyers to sellers since she started in the business 15 years ago. But in the tech savvy environment, letters might not be enough anymore. In fact, her clients John and Kate Fenwick who work for Google and Liftopia, decided to set themselves apart by making a video. Well, they made the video, but their dog Cooper does the talking.

Posted by on Aug 26, 2015 in Jim's Take on the Market, Market Buzz, Market Conditions, Thinking of Buying? | 4 comments

Frenzy vs. Frenzy Sales Overlay

Every day we hear some pundit talking about the latest real estate bubble forming.  Can we learn anything from comparing recent sales to those during the bubblicious 2004-2007 era?

graph (56)

Sales were dropping precipitously in 2005 and 2006 after the 2003-2004 run-up.  There was one last blowout at the end of 2006 and into 2007 when Countrywide began pushing the no-doc, 100% financing up to $1,500,000.

When Angelo took away the punch bowl in the middle of 2007, the party was over – you can see how sales tanked, beginning in August, 2007.

One big difference when comparing these two eras is that the neg-am teaser rate in 2007 is today’s 30-year fixed rate.  When the teaser rate went away, and people had to qualify again, the market collapsed.

It doesn’t look that way today.

This year, sales have been strong, in spite of the San Diego Case-Shiller Index rising 42% since January, 2012.  If we hit an unsustainable stretch, the first indicator will be sales dropping off, like they did at the end of 2007.

Posted by on Aug 22, 2015 in Bubble-Era Pricing, Frenzy, Jim's Take on the Market, Market Buzz, North County Coastal, Thinking of Buying?, Thinking of Selling? | 4 comments

Fall 2015 Reality Check

LA

We can talk, can’t we?

Houses that have been on the market for more than 60 days (which includes 507/1,079 = 47% of NSDCC active listings) missed the hot season.

Buyers presume,

“If it hasn’t sold by now, something is wrong with the house, or the price.”

Some people use the days-on-market statistic has a primary search feature. Even if the list price has been reduced, just the longer market time can cause buyers and agents to miss the longer-listed properties.

So not only are those listings easier to pass up, the buyer pool in general is shrinking due to the time of year.  It’s too easy for them to pack it in.

It’s going to get tougher for the older listings to find a buyer, unless they get aggressive on price.  But how many sellers will knock 5% to 10% off their price?  Not many.

Hypothesis:

1.  The list price has to be at least 10% wrong if not selling for months.

2.  Most unsold listings aren’t that far off.  Buyers would be interested in many of the active listings at 10% to 15% under list.

3.  Sellers are reluctant to chop that much off their price.

4.  Buyers have to take the initiative.

My game plan here:

Posted by on Aug 20, 2015 in Bubbleinfo TV, Listing Agent Practices, Market Conditions, North County Coastal, Thinking of Buying?, Thinking of Selling?, Why You Should Hire Jim as your Buyer's Agent, Why You Should List With Jim | 2 comments

Renting vs. Buying

rent own

This cnbc.com article talks about how ‘crazy’ rents have become, which isn’t exactly a scientific term but rents do appear to be on the rise.  But the indented paragraph below shows how low rates and big down payments have helped buyers lower their monthly ‘nut’ compared to the last boom:

http://www.cnbc.com/2015/08/16/rents-rise-to-crazy-levels-zillow.html?

An excerpt:

In some areas, rent is even more unaffordable. In Los Angeles, California, renters sent nearly 50 percent of their income to the landlord in the second quarter, while in the New York-Northern New Jersey and the Miami-Fort Lauderdale, Florida areas, that was hovering around 41-45 percent, the survey from the real estate listing and analytics company found.

Rents and occupancies are currently hovering at historic highs. While apartment construction has seen strong growth over the past three years, construction of multifamily homes, such as apartment buildings, fell to next to nothing amid the housing bust and the new units are meeting with pent-up demand.

Buyers, however, appear to be sitting pretty, likely spending around 15.1 percent of their monthly income on mortgage payments, down from around 21.3 percent in the 1985-2000 period, the study found.

“If you can possibly come up with a down payment, then it’s a good time to buy a home and start putting your money toward a mortgage,” Gudell said.

Posted by on Aug 17, 2015 in Jim's Take on the Market, Thinking of Buying? | 0 comments

Home Water Recycling

Thanks daytrip!

http://www.cnbc.com/id/102691480

Imagine a home that could recycle two-thirds of the water it uses. No need to imagine. New technology to do just that was recently approved for use in drought-parched California, and the company behind it claims it could be looking at a $15 billion business ahead.

“In five years time, every new home will have a water recycler in it,” said Ralph Petroff, chairman of Nexus eWater, the Australia-based company behind the technology.

The system, which lives under two manhole-like covers on the side of the home, pulls in soapy water from the house—that is shower, dishwasher, laundry and sink water, not toilet water—and then sends it into a cleaning system. What comes out, so-called “gray water,” is water that can be used for irrigation and for flushing toilets. The water cannot be used for washing or drinking.

California-based KB Home bought into the technology and just announced that it will be standard in over 50 homes in a new San Diego development. It is also demonstrating the system in model homes in Sacramento and Lancaster.

The cost is just under $10,000 per home to install, but Petroff said that price should go down as more builders buy in and the technology becomes more common. He sees it as having even more potential than solar panels.

“There is no alternative to water. That’s what Californians are discovering every day,” said Petroff.

Posted by on May 27, 2015 in Local Flavor, The Future, Thinking of Building?, Thinking of Buying? | 3 comments

manu

We need tent cities too! Hat tip to ‘just some guy; for sending this in:

http://www.mercurynews.com/business/ci_27860319/prefabricated-homes-provide-affordable-option-some-bay-area

SUNNYVALE — Two years of mounting rent increases pushed them out of their 800-square-foot apartment, but Emily Gwynn and Roderick Fox have now purchased their dream house.

“It’s 1,370 square feet, three bedrooms, two full baths, washer and dryer,” Gwynn said, excited to show off the spacious kitchen, as well as the master bedroom with its 14-foot cathedral ceiling.

The price: $219,000, in a county where median home prices hit $782,000 last month. The catch: It’s a manufactured home — a classy new spin on the old prefab “mobile” home.

“We were surprised,” Fox said.

Read full article here:

http://www.mercurynews.com/business/ci_27860319/prefabricated-homes-provide-affordable-option-some-bay-area

Posted by on Apr 7, 2015 in Modular Homes, The Future, Thinking of Buying? | 5 comments