I’ll go everywhere to help out a bubbleinfo reader! This is a great house too, built in 1995 on a culdesac with no HOA or Mello-Roos for only $569,000. I’ll be doing open house this Sunday from noon to 3pm:
Category Archive: ‘Thinking of Buying?’
The real estate industry favors sellers, and buyers are under-represented. Here at the blog I’ve done my best to help educate buyers, and give you a fighting chance. Here’s someone who wants to take it further:
No one is fighting for the people buying houses. Everyone in the business is driven by one thing and one thing only: closing sales.
If houses get sold, brokers on both sides get paid and the world keeps spinning. Ads flow to listing sites, inspectors get paid, mortgage brokers get commissions and home improvements continue.
No one is incentivized to STOP you from buying a home.
No one is trying to PROTECT the buyer from making a bad decision (I know, brokers are supposed to … but they don’t get paid unless you buy!).
This becomes super apparent when you look at the descriptions of homes.
Everything is “charming” and a “compound” and “gorgeous” in the descriptions, but when you go see them they are “depressing” and “dark” and “small”!
So here’s a super simple idea: reviews that tell you, in brutally honest fashion, if you should move into this house or not.
If it’s a fair price.
If it’s a horrible block, if it has a bad landlord, or if the methadone clinic is hopping at 3pm when your daughter gets home from school!
Read full article here:
I always wanted to have a girl named Pippi on the blog - her video is fantastic too. Thanks to daytrip for sending it in:
If you are looking for a newer home in the Encinitas school district – this is the best deal in town!
The house is practically new (built in 2012) and is full of premium upgrades like handscraped hardwood floors, stainless/granite/expresso kitchen, downstairs bedroom suite, central A/C, 3-car garage - plus a great night-light view!
I will be having open house on Sunday, July 6th from 12-3pm:
3478 Corte Fortuna, Carlsbad, CA 92009 – $879,000
Come by Sunday 12-3pm!
My new listing in the hills of Rancho Penasquitos, and walking distance to elementary and middle schools!
Check your directions and view corridors!
Thankfully the fire in Carlsbad has subsided, and we can get back to real estate. Check out my new listing of the former model in Spyglass Hills that has the full 180-degree ocean view, big yard, 3-car, new carpet & paint, and loads of builder upgrades:
Come by the open houses Saturday and Sunday where we will be having the All-American BBQ and get your photo taken by the drone!
The seller says that it is Catalina Island we see in the video – and he is a Naval officer, so he should know. Come by and see for yourself:
In the previous video, Brandi mentioned that sellers enjoy a real urgency early in their listing period. Today’s market is a good example – because every decent buy gets snapped up right away, all new listings get immediate attention.
The North SD County coastal region has been hot up to around $1,400,000 - homes priced above that have a much different supply-and-demand curve.
Here are the current active and pending listings of NSDCC detached homes:
On the lower end, literally half of the pendings found a buyer in the first 15 days on the market.
This dynamic can be used by both sellers and buyers. Sellers who price sharply from the beginning can help create a fever pitch, and have a bidding war push the sales price higher. Buyers who see homes on the market for more than 15 days know that something might be missing.
While everyone is looking forward to Christmas tomorrow, let’s sneak in one last article this year on the MID, this from the Reason Foundation:
Here are excerpts:
The mortgage interest deduction (MID) is never left alone for very long. In Unmasking the Mortgage Interest Deduction: Who Benefits and by How Much? Economists Dean Stansel and Anthony Randazzo lay out their arguments for eliminating the popular deduction from the tax code. Written for the libertarian Reason Foundation, the article examines the history and reasoning behind MID, looks at the financial impact on individuals, the housing market, and tax collections, and presents alternatives which they say would more evenly distribute tax benefits and help the economy.
“The least distortionary income tax system is the one with the broadest possible tax base and the lowest possible marginal tax rates. Consider that if the tax base was broadened to include the $1.2 trillion in itemized deductions for 2011, the average tax rate could be reduced by nearly one-fifth, from 17.3 percent of taxable income to 14.2 percent.”
Stansel and Randazzo say such a reduction in marginal tax rates would directly increase the reward for productive (income- generating) activity. As a result, closing loopholes such as the MID and lowering overall rates would likely lead to a more prosperous economy with higher economic output and incomes.
One defense of MID is that is helps increase homeownership which is usually viewed as a societal good. But the authors maintain the MID fairly ineffective at this.
Renter households that would prefer to own “if they had just a bit more financial flexibility,” tend to be low income and thus less likely to itemize their deductions. So, instead of increasing the homeownership rate, the MID increases the amount spent on housing by consumers “who would choose to own anyway, subsidizing spending on housing rather than homeownership.” If the MID had a significantly positive effect on homeownership, they contend we would expect to see a faster and continuous increase in homeownership, rather than a gradual increase and subsequent decline.
The MID encourages consumers to use debt rather than their own assets to finance home purchases. This creates a distortion in how financial capital is allocated, which leads to greater amounts of mortgage debt. The paper frequently quotes economists James Poterba and Todd Sinai who estimate taxpayers could reduce their mortgage debt by nearly 30 percent by using other financial paper assets, (savings or brokerage accounts) to pay off loans. If all non-housing assets, such as retirement accounts, trusts, and annuities, were liquidated to pay off mortgage debt, Poterba and Sinai estimate that the reduction could be 70 percent.
Furthermore, the marginal effective tax rate for owner-occupied housing in 2003 was only 2 percent, compared to 18 percent for noncorporate investment and 32 percent for corporate investment. By creating favorable tax treatment for housing compared to other investments, the mortgage interest deduction encourages individuals to over-invest in housing, contributing to housing bubbles. The Federal Reserve Bank of Philadelphia estimate that government incentives for homeownership, including the MID, have skewed distribution of resources so much that the American housing stock is 30 percent larger than it otherwise would be.
This over-investment means less capital is put toward productive assets in the rest of the economy, like machines and equipment used to produce goods and services. If there are fewer productive assets, there will be less economic growth and a lower standard of living.
In 2011, only about 32 percent of income tax returns filed with the IRS contained itemized deductions and about 21 percent of itemizers do not take the MID. The percentage of taxpayers claiming a MID has been relatively stable at between 21 and 26 percent since 1991.
Read the full article with solution ideas here:
You can also see how average pricing trailed the sales count in 2005 and 2006, only to have Angelo goose the market with the no-down, no-doc neg-ams up to $1,500,000 for one last burst in 2007.
With last month’s sales re-calibrating lower, and using the historical trend as a guide, shouldn’t we see the average cost-per-sf start to top out – and be dropping in 12 months?
North SD County’s Coastal November Sales and Avg. $/sf
Of course, this is the new normal. It’s possible that November sales slowed down because buyers became more picky, and fewer homes were deemed worthy. This waiting-buyer demand is hard to measure – if you are in that group, let us know your thoughts!