Their agents are telling buyers to wait…but wait for what? Wait how long? Wait for who? It’s irresponsible to make such casual comments.
Not mentioned in this article is that a good agent can overcome all these obstacles, and a bad agent makes them worse:
I don’t remember ever hearing about this guy, but he was part of the Case-Shiller team that devised the Index, and now he does his own thing.
Here they developed a tool to predict the chances of hitting your target value in the next year. Click on the link below and once inside, click on ‘Tools’ at the top of the page:
http://www.weissindex.com/tools/target_value/?
Plus they have a colorful history of values that goes to 2016, so at least some of these are speculative. Each dot on this map represents one house – the color represents whether the house is increasing or decreasing in value that month:
I appreciate the analytical, business-like aspect of the 1031 exchange, and try to do a couple every year just to keep my chops up. I’d love to do more exchanges because sellers of investment properties have to re-invest to avoid capital-gain taxes. But it’s rare that you can find new properties locally that are a good enough buy to make it worth the trade.
But for those who can – here is a good article on the basics of the 1031 tax-deferred exchange, plus three extra points worth noting:
The excerpt:
While you will always want professional guidance when doing this kind of swap, there are three things to have in mind from the start:
The first few house lotteries were shut down due to their gambling nature, but now there are new twists. First it was the flipper who is unloading a 1906 Craftsman-style home to the person who submits $100 and the best dessert-recipe HERE
Now these folks in Phoenix who paid $350,000 for their house want you to submit an essay and $150 to have a chance to win their flip:
From KTAR – click HERE for link:
PHOENIX — Valley residents with an extra $150 lying around might want to think about investing that in real estate.
That money could actually go a long way as a Phoenix real estate investor says that’s all it takes to have a shot at purchasing one of his properties.
“We purchased the house with the sole intention of making it beautiful and selling it for profit,” said Erin O’Connor.
O’Connor intends to make a profit by selling the nearly 4,000-square-foot, five bedroom home at 6517 W Lucia Dr. through an essay contest that costs $150 to enter.
Any adult can submit an essay up to 250 words, O’Connor will then narrow the essays down to the best 300 and an attorney will pick the final winner.
“If you win the essay contest, then you’re given the exclusive right to purchase the home for $10 and your normal closing fees,” he said.
Those title and escrow fees are estimated to be roughly $3,000, according to O’Connor’s website.
O’Connor said there needs to be a minimum of 4,500 essays submitted for the contest to be valid and only the first 5,500 will be accepted. That ensures at least $675,000 in revenue for the home and at the most, $825,000.
Michael Weinstein of the YourRealEstateWorld.com team at West USA Realty wrote in an email the property has an estimated value of $418,210, so 2,788 entries would be needed to simply break even on the property.
Weinstein called it a fun idea for those that have the resources but was skeptical about the business model for sellers. O’Connor however, said he hopes it is a business model that not only works, but also will catch on.
“I do believe that it could catch on (and) we could make a business out of it,” he said.
A portion of the revenue from the essay entries will go to benefit St. Jude Children’s Hospital, O’Connor said.
Almost $2 million for 2br/2ba, 1,468sf – and worth it!
It seems the inventory is so picked over that the remaining would-be sellers need to lower their price to get in the game – but Yunnie won’t ever say it outright. At least he didn’t blame it on tight credit this time. From HW:
Pending-home-sales-drop-for-the-first-time-in-2015
An excerpt:
Lawrence Yun, NAR chief economist, says although pending sales decreased in June, the overall trend in recent months supports a solid pace of home sales this summer.
“Competition for existing houses on the market remained stiff last month, as low inventories in many markets reduced choices and pushed prices above some buyers’ comfort level,” he said. “The demand is there for more sales, but the determining factor will be whether or not some of these buyers decide to hold off even longer until supply improves and price growth slows.”
According to Yun, existing-home sales are up considerably compared to a year ago despite the share of first-time buyers only modestly improving. The reason is that the boost in sales is mostly coming from pent-up sellers realizing their equity gains from recent years.
“Strong price appreciation and an improving economy is finally giving some homeowners the incentive and financial capability to sell and trade up or down,” Yun said. “Unfortunately, because nearly all of these sellers are likely buying another home, there isn’t a net increase in inventory. A combination of homebuilders ramping up construction and even more homeowners listing their properties on the market is needed to tame price growth and give all buyers more options.”
Recently we’ve wondered how many first-timers are participating, but actual data has been scant. D.R. Horton says that 41% of their buyers are first-timers, which is probably similar to the resale market and sounds fairly healthy:
Here are the current market conditions through the eyes of D.R. Horton:
Check their #3 point. Entry-level sales are growing because the builders are getting better at devising new products for first-timers.
Case-Shiller Index cumulative changes since 2000:
Here are the San Diego NSA changes for 2015:
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“Over the next two years or so, the rate of home price increases is more likely to slow than to accelerate,” Blitzer said.
http://www.wsj.com/articles/home-price-growth-remains-solid-in-may-says-case-shiller-1438088503
For those wondering if there will ever be any more bank-owned properties for sale, here is the list of 38 houses between La Jolla and Carlsbad that are owned by lenders, or 3rd parties who purchased them at the trustee sale:
NSDCC Foreclosed Properties July 2015
A few are listed for sale, and others are still waiting for occupants to vacate or lawsuits to be settled. This Bressi Ranch home was foreclosed in April, 2014, and just hit the open market last week at what most would consider to be pretty close to retail price:
The former owners had worked the system – they had been in default since 2008, and endured four different trustee-sale dates before finally giving up the ship. In the meantime, the lender probably did everything they could to modify the loans?
I don’t think anybody has to worry about getting foreclosed unless they have significant equity.
Today’s inventory is about 4% less than what it was last year at this time. Sales this month look to be on track to match those in July, 2014, but pricing is starting to flatten out. The median sales price is only about 3% higher, and the average cost-per-sf only 1% higher than last July.
Click on the link below for the complete NSDCC active-inventory data:
