San Diego Real Estate - Harbaugh Homes: Interest Rates

Showing posts with label Interest Rates. Show all posts

Thursday, February 26, 2015

Top Reasons Why 2015 Real Estate Market Looks Positive.

2015 Housing Market Looks Positive

Top Reasons for Strong Housing in 2015.

Many experts agree that 2015 will be a good year for Real Estate. Of course, not everyone concurFreddie Mac's Deputy Chief Economist, Len Kiefer, cites the following as the reasons for the continued stabilization and strength of housing as the following:

Interest Rates are low;
Continued Job Creation Gains;
Businesses Raising Employee Compensation;
Down Payments as low as 3%;
Millennials Starting to Establish Households and Purchase Homes; and
Decreasing Gas Prices.

Interest Rates Are Low.

Businesses are Increasing Employment Compensation.

- "Preparing for 2015 Housing Market Opportunities" by Freddie Mac's Deputy Chief Economist, Len Kiefer

- Watch the Video!

When buying or selling real estate, make sure you have an experienced, credentialed and knowledgeable professional helping you to make the important decisions.

Mark Harbaugh, J.D. - Broker

DRE #: 01245275

Direct: 619-246-2860

markonthemark@gmail.com

HARBAUGH HOMES

Mark Harbaugh, J.D. has been a licensed REALTOR® in California since 1998. He is a real estate Broker, holds a Bachelors Degree and a Law Degree.

Since 1998, Mark has been providing expert representation to buyers and sellers of homes, condos, multi-unit properties and multi-million dollar estates.

His clients include friends - old and new - colleagues, professional football and basketball players, original founders of Fortune 500 companies and other high-profile personalities, who value their privacy and anonymity. Mark has also consulted Nationally and Internationally with many interested in buying and selling real estate.

Mark can be reached at 619-246-2860.
Email: markonthemark@gmail.com

Wednesday, December 3, 2014

Home Loan Approval - It May Have Just Gotten Easier.

Some very qualified buyers have been consistently turned down for a mortgage loan in the past few years. This seems to be a reaction to the "too easy" credit situation, which contributed to the housing market crash of 2008.

Without going overboard to cause similar chaos in the real estate market and the economy, as a whole, lender requirements are swinging back to a reasonable level - not too easy and not impossible to qualify. The market is looking for just right.

Not all lenders are jumping in toward easing the lending standards, but many are beginning to see that more reasonable standards are necessary to a healthy housing market and for a strong economy.

So, if you have been waiting, you may want to consult with a real estate broker, who has good relationships with lenders, to see if you qualify to buy a home or an investment property.

Read related articles:

Mortgage Lenders Set to Relax Standards

Did Mortgages Just Get Easier to Obtain?

Mark Harbaugh, J.D. - Broker

DRE #: 01245275

Office 619-246-2860

markonthemark@gmail.com

HARBAUGH HOMES

Have You Served in the Military? VA Loans Are Easier Than You May Think.

VA Loans Are Easier Than You May Think.

If you are a veteran and planning to buy a home, you may want to consider using your VA Benefits, and look into a VA Loan. People who have served in the military may qualify for this type of mortgage loan.

There are myths surrounding the VA Loan, which sometimes makes them unpopular with buyers and their agents, and thus, they are underutilized. However, once you know the true facts, you may want to think seriously about using a VA Loan, rather than a Conventional Loan or an FHA Loan.

Compared to Conventional and FHA Mortgage Loan, VA Loans should be considered for the following reasons:

Require NO DOWN PAYMENT,
Have a LOWER INTEREST RATE,
CLOSE ESCROW MORE SUCCESSFULLY, AND
CLOSE MORE QUICKLY.

The Interest Rates are Generally Lower than a Conventional or FHA Loan.

Not only are the interest rates generally lower than a Conventional or FHA Loan, but, as a Veteran, there is no down payment and no mortgage insurance with a VA Mortgage Loan.

The VA Loan Successfully Closes Escrow More Often Than a Conventional or FHA Loan.

With more flexible credit standards for VA loans, these loans close successfully at a greater percentage of the time than a Conventional or FHA Loan. VA Loans are approved with FICO scores 100 lower than non-VA Loans.

The VA Loan Closes Escrow as Quickly as a Conventional or FHA Loan.

Finally, some buyers and their agents believe a VA Loan takes longer to close. This is also not the truth. According to the data, VA Loans close in 40 days from acceptance.

Shattering 4 myths about VA loans | Inman News

Mark Harbaugh, J.D. has been a licensed REALTOR® in California since 1998. He is a real estate Broker, holds a Bachelor's Degree and a Law Degree.

Since 1998, Mark has been providing expert representation to buyers and sellers of homes, condos, multi-unit properties and multi-million dollar estates - buyer, sellers and investors.

His clients include friends - old and new - colleagues, professional football and basketball players, original founders of Fortune 500 companies and other high-profile personalities, who value their privacy and anonymity. Mark has also consulted Nationally and Internationally with many interested in buying and selling real estate.

Mark Harbaugh, J.D. - Broker

BRE: #01245275

Mark can be reached at 858-255-1079

Email: markonthemark@gmail.com

Tuesday, November 18, 2014

Home Buyers Have Been Waiting to Buy: Pent-Up Buying Demand Continues to Grow.

Everybody wants what everybody wants.

If you have been reading my blog, you may have seen me write that Buyers of real estate can be compared to cows waiting to go out to the field to graze.

Generally, no cows will go out to pasture until all of the cows go. Then, they all go together.

So, for whatever reason, they all wait. Then, again, for whatever reason, they all go at the same time.

The same can be said for Home Buyers.

Like Cows, Home Buyers Wait to "Moo-ve"

Like cows, many would-be buyers wait for others to start buying before they are willing to jump into the real estate market. Then, it is as if the floodgates are opened up and everyone follows.

Since prior to 2008, home buyers have not yet returned to what would qualify as normal or typical buying activity. Instead, they have waited, and continue to wait, to buy a home.

We have seen investors flood in to buy real estate - and in a substantial percentage of cases, with all cash. Now we seem to be waiting for the typical buyers to begin buying homes for themselves and their families.

Why aren't those who would like to buy, buying?

Like with cows, we cannot be absolutely certain why most have been waiting to buy and then why everybody decides to buy at the same time. But, we can ask them, unlike with cows.

Buyers have been waiting, in part, for the following reasons:

Improvement of the economic climate;
Improvement of the unemployment rate;
Creation of better quality jobs and with higher incomes;
Formation of new households; and
Relaxing the mortgage loan credit standards.

The economy has improved substantially, although not enough for some. The unemployment rate is back to a healthy level, millions of jobs have been created, and I believe people are ready to get on with the formation of new households and buying a home.

But, what stands in the way for many buyers, is the availability of credit. This, however, is also changing. When this happens, the gates are likely to swing wide open and buyers will come out in greater numbers.

Lenders are already beginning to loosen mortgage lending requirements to a healthy level. The objective is to strike the correct balance of implementing reasonable standards without making qualifying for a loan too easy, as this contributed to the problems of our last real estate market correction.

The question is, do you wait to buy when everyone else is ready to buy? Or do you lead the market, thereby beating the competition for homes and the inevitable appreciation of home prices and the likely event that the mortgage interest rates begin to increase?

Read more articles:
Pent-Up Demand Brewing Among Buyers

Mark Harbaugh, J.D. - Broker
DRE #: 01245275
Office 619-246-2860
markonthemark@gmail.com
HARBAUGH HOMES

Saturday, February 22, 2014

Six Things You Must Know Before Deciding to Buy or Sell a Home in California This Spring.

San Diego Real Estate Market Update - January 2014

The Good News, The Bad News and Where are We Going From Here?

The January 2014 real estate numbers are in for California and San Diego.

Even the negative news is not really negative when we compare the recent median home price decline with California's and San Diego's historical statistics. The market continues to be strong, as the real estate rebound and market recovery continues for San Diego and California.

In This Blog:

The median home price for California decreased 6.2% from December 2013 to January 2014; down 0.1% in San Diego; a 9% decrease is typical for California for this same period.
January 2013 to January 2014, the median home price in California rose 22.1% from $336,650 to $410,990; up 21.8% in San Diego (24.5% for San Diego condos).
23 consecutive monthly increases year-over-year; 19 of those months were double-digit increases.
Home prices in San Diego and the U.S. are still discounted from their pre- Great Recession" levels.
All three major stock market indices are approximately 60-80% higher than their pre- "Great Recession" levels.
California Home Prices were still 23% off their highs from June 2006, as of September 2013 .

The Negative News

There is no doubt that real estate sales and median prices in California and San Diego did, in fact, decline from December 2013 to January 2014. However, when we look at state-wide numbers and San Diego's historical numbers, we will see that the real estate market remains strong.

On average, for the last 6 years, the California median home price typically falls about 9% from December to January.

In San Diego County, from December to January, the median price for single family homes was down only 0.1%. Statewide, the median price for California single family homes decreased only 6.2%. California's December median price of $438,090 fell to $410,990 in January 2014.

When commenting on this decrease, the Vice President of California Ass. of Realtors and Chief Economist Leslie Appleton-Young stated the following:

“The decline in the January median price [for California] was the largest in a year but is typical between December and January, with that decline averaging nearly nine percent over the last six years.”

Comparing California's 6.2% decline this year with its typical 9% decrease, the California's real estate market continues to show strength.

Specifically, comparing January 2013 to January 2014, the median price in California rose 22.1% from $336,650 to $410,990. This makes 23 consecutive months of increases year-over-year; 19 of those months were double-digit increases year-over-year.

Single family homes rose 21.8% in San Diego from January 2013 to January 2014. Condos rose 24.5% during that same period.

The Lack of Supply of Homes on the Market - Increased only Slightly.

The supply of single-family homes rose in January to 4.3 months. This is an increase from December 2013 where there was a 3 months supply. A supply of 6 to 7 months is considered normal or typical. This shows a lack of inventory, which is likely contributing to the lower number of sales, both for California and San Diego.

Comparing Home Prices - Then and Now - Still Discounted from their Peak.

Home prices in San Diego and the U.S. have yet to return to their pre- Great Recession" levels. From the graphic below, we can see that California is still 23% off its peak prices. But, as we can see from the charts below, all three major stock market indices are approximately 60-80% higher than their pre- "Great Recession" levels.

This also is a good indication for continuing strength in the real estate market.

San Diego, CA - Home Price Index

California - Home Price Index

California 23% Appreciation from Sept 2012 to Sept 2013

Home Prices are Still Discounted from 2006

While median home prices rose 23% from January 2013 to January 2014, they are still 23% down from June 2006.

Comparing The Stock Market - At All-Time Historic Highs.

Comparing the stock market figures, you will see that all three major indices are currently trading at all-time historic highs, whereas home prices are still rising off their hugely discounted lows of 2009. Looking at the stock market charts below, you can see the recent volatility, during the months of January and February. The DOW, S&P 500 and the Nasdaq, at their peaks, seem to be deciding whether to correct downward, as investors take their profits or whether to steam upward.

All three indices are approximately 60-80% higher than their pre- "Great Recession" levels. Again, whereas the median home prices are still climbing to their pre- Great Recession" levels.

Stock Market - Major Indices

Dow Jones, S&P 500 and Nasdaq One Year Chart - SHOWING VOLATILITY AT THEIR PEAKS.

Dow Jones, S&P 500 and Nasdaq Chart since 2001 - AT HISTORIC HIGHS.

------
------

OTHER SOCIAL MEDIA CONNECTIONS:

Blog:
http://harbaughhomes.blogspot.com/

YouTube:
http://www.youtube.com/channel/UC7aiLC3WaujKr7akXOIkkaw

Community and Charitable Work:
http://prezi.com/nlhlhszj-seb/?utm_campaign=share&utm_medium=copy

Tuesday, February 18, 2014

San Diego Ranks in the Top 10 for International Buyers in the United States

Top 10 U.S. Cities Searched by International Consumers for December 2013:

1. Los Angeles, CA
2. Miami, FL
3. New York, NY
4. Detroit, MI
5. Las Vegas, NV
6. Orlando, FL
7. Fort Lauderdale, FL
8. Houston, TX
9. Chicago, IL
10. San Diego, CA

-- National Association of REALTORS®

Not surprisingly, one of Southern California's hottest markets is San Diego. In fact, it is one of the hottest markets in the United States for Domestic Buyers. But now, according to The National Association of Realtors, it ranks #10 in the US for International Buyers as well.

Having lived in San Diego since 1987, I have to agree that San Diego is an extremely desirable place to visit and call home.

With the Pacific Ocean to the West, the Mexican border to the South, the Mountains to the East and Camp Pendelton to the North, San Diego is considered a land-locked market. This means that San Diego can never become like Los Angeles, in that it is spread out because there is no room to grow, which keeps San Diego a comfortable sized city, I like to call a Boutique City - where it's quality, not quantity.

It is no secret San Diego has beautiful weather year around with outdoor activities to suit just about anyone's interests.

The culture in San Diego continues to expand beyond America's Finest City's Zoo, Safari - Wild Animal Park, Sea World and LegoLand.

San Diego also boasts great Theater, Opera, The San Diego Symphony and a plethora of Professional Sports.

Read the entire article:

Where are Global Buyers Searching in the United States?

------
------

OTHER SOCIAL MEDIA CONNECTIONS:

Friday, February 14, 2014

Mortgage Rates Inch Up After 5 Weeks of Falling Interest Rates.

Typical Winter Mortgage Interest Rate Decline Ends As Spring Draws Near - Perhaps Beginning their Upward Trend.

A. Interest Rates Fall in the Fall and Winter.

DEMAND FOR REAL ESTATE AND LOANS TYPICALLY INCREASE IN THE SPRING - AN INCREASE IN HOME PRICES AND INTEREST RATES IS USUALLY EXPECTED.

Interest rates, like the outdoor temperature, rise and fall. Mortgage rates typically follow the basic economic principle of supply and demand. The demand for home buying falls in the Fall and Winter seasons, as the kids start back to school and everyone prepares for the holidays. Because home buying slows and the mortgage business slows during this time, interest rates tend to also decrease during the fall and winter months.

Conversely, demand for mortgage loans increases as home buyers come back to the market in the Springtime, thereby causing an increase in the interest rates through the spring and summer.

One-Year Chart - Interest Rates - February 2014

B. Home Prices Fall in the Fall and Winter.

REAL ESTATE PRICES FALL IN THE FALL AND WINTER; AND RISE IN THE SPRING AND SUMMER.

Likewise, home prices tend to fall in the fall and winter time and increase in the spring and summer. The chart below shows a clear pattern of falling prices in the fall and winter and increasing prices in the spring and summer selling season.

Equally notable is the long-term, 5-year upward trend in home prices. Is this a sign of what's to come of real estate prices?

C. Home Prices Are Trending Up.

THE HOUSING REBOUND IS WELL ON ITS WAY.

Following the Great Recession, real estate values undoubtedly appear to be on the rise, according to the chart below showing the Home Price Index. Many experts agree this trend will continue as the economy continues to improve, unemployment returns to normal and significantly lower levels, and as banks ease their lending requirements.

San Diego home prices are on the rebound as reported by the S&P/CASE-SHILLER SAN DIEGO HOME PRICE INDEX. Prices are also on the rise Nationally.

D. Don't Miss The Boat.

Since entering the real estate business in 1998, I have learned that opportunities come and go. Timing is key!

For home buyers, who want a good price and a good value when buying their home, it is a good idea to buy when prices and interest rates are down.

For real estate investors, who want to buy low and sell high, the same rule applies. And for investors, who want to buy and hold onto their property, again the best time to buy is when prices and interest rates are down, in order to maximize your return on investment.

Real estate buyers, like any buyer of products and services, want a discount. What better time to buy than when both home prices and interest rates are down?

It is important to know that these principles apply during a normal real estate market and that real estate is very localized. This means what is true for one market may not work for another area.

With the real estate rebound in the news more and more everyday, many agree that we are returning to a more "normal" real estate market than we have previously seen in recent years.

Call, Text or Email today to start looking for your new home or investment property.

OTHER SOCIAL MEDIA CONNECTIONS:

Tuesday, February 11, 2014

Survey: Most Americans Say Getting a Mortgage is Easier

Finally, getting a mortgage loan is getting easier.

Read the entire article:
Survey: Most Americans Say Getting a Mortgage is Easier

------
------

OTHER SOCIAL MEDIA CONNECTIONS:

Featured Post

Thursday, February 26, 2015

2015 Housing Market Looks Positive

Top Reasons for Strong Housing in 2015.

Interest Rates Are Low.

Businesses are Increasing Employment Compensation.

- Watch the Video!

Wednesday, December 3, 2014

Home Loan Approval - It May Have Just Gotten Easier.

VA Loans Are Easier Than You May Think.

The Interest Rates are Generally Lower than a Conventional or FHA Loan.

The VA Loan Successfully Closes Escrow More Often Than a Conventional or FHA Loan.

The VA Loan Closes Escrow as Quickly as a Conventional or FHA Loan.

Tuesday, November 18, 2014

Home Buyers Have Been Waiting to Buy: Pent-Up Buying Demand Continues to Grow.

Everybody wants what everybody wants.

Like Cows, Home Buyers Wait to "Moo-ve"

Why aren't those who would like to buy, buying?

Saturday, February 22, 2014

Six Things You Must Know Before Deciding to Buy or Sell a Home in California This Spring.

San Diego Real Estate Market Update - January 2014

The Good News, The Bad News and Where are We Going From Here?

The Negative News

The Lack of Supply of Homes on the Market - Increased only Slightly.

Comparing Home Prices - Then and Now - Still Discounted from their Peak.

Comparing The Stock Market - At All-Time Historic Highs.

Tuesday, February 18, 2014

San Diego Ranks in the Top 10 for International Buyers in the United States

Top 10 U.S. Cities Searched by International Consumers for December 2013:

Friday, February 14, 2014

Typical Winter Mortgage Interest Rate Decline Ends As Spring Draws Near - Perhaps Beginning their Upward Trend.

A. Interest Rates Fall in the Fall and Winter.

DEMAND FOR REAL ESTATE AND LOANS TYPICALLY INCREASE IN THE SPRING - AN INCREASE IN HOME PRICES AND INTEREST RATES IS USUALLY EXPECTED.

B. Home Prices Fall in the Fall and Winter.

C. Home Prices Are Trending Up.

D. Don't Miss The Boat.

Tuesday, February 11, 2014