San Diego Real Estate - 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.

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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

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Blog:
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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?

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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.

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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

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Sunday, December 8, 2013

Real Estate Prices Fluctuate with the Seasons - Prices Drop in the Fall.

It has long been known that demand for real estate decreases after what is traditionally called the summer selling season. Spring and summertime are when buying activity is at its strongest of the year.

While markets vary and past performance does not guarantee future results, sales generally slow down in the fall, as students are settling into school and families begin to focus on the holidays rather than on moving. This historically has had a negative impact on real estate prices, and prices have seemed to decrease.

Opportunity Knocks For Buyers.

The fall and winter present a window of opportunity for buyers interested in buying a home or an investment property.

During the fall and winter months, there is far less competition from other buyers, which results in sellers sometimes being forced to accept offers lower than they would like, if they want to sell their homes within a reasonable amount of time.

Real Estate Prices are Trending Upward.

As the chart above shows, the long-term trend, for real estate prices, appears to be an upward trend. The real estate market continues to rebound as unemployment numbers go down and our economy continues to stabilize and improve.

Where are we Today?

Most noteworthy in the chart above, is the clear pattern showing a seasonal fluctuation with prices falling in the fall and into the winter. In the springtime and summer, prices steadily increase until the fall season, then prices again fall and this pattern repeats itself.

This cyclical pattern has been repeated each year since 2009 when the market began to stabilize and rebound, as the chart seems to indicate.

In short, if you are considering buying real estate, it should be done during the fall months and into the winter, while prices and interest rates are typically discounted.

Further, if you are considering selling your home or investment property, it should be done after the first of the year until prices peak in the summer selling season in order to get top dollar.

Mortgage Interest Rates seem to be Trending Upward - But Rates also Fall in the Fall.

Mortgage Interest Rates generally follow the same seasonal pattern according to the laws of supply and demand.

With real estate sales down and demand for mortgage loans down, mortgage interest rates also typically fall in the fall and winter. This has proven to be the case this year, according to the chart above. Interest rates rose from mid-May and peaked in early-September, when they fell to 4.1% near the end of October.

With prices and interest rates down in the fall and winter, it would seem wise to take advantage of the window of opportunity, rather than wait until the spring when many others will be out competing for the same properties, driving up prices and accepting higher mortgage interest rates for their purchases.

Related article:
Calculated Risk: House Prices: CoreLogic to turn negative month-to-month seasonally in October

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Wednesday, October 2, 2013

Helpful Chart! - Simplifying the Health Insurance Decision Process - Helpful Tips

Helpful Chart! - Simplifying the Health Insurance Decision Process.

Thanks to the National Association of Realtors for putting together this extremely helpful graphic, making it much easier to make an informed decision on medical insurance.

"People fear what they don't understand . . ." - Andrew Smith

Thank you for sharing.

Making your decisions easy.

SHARE WITH YOUR FRIENDS AND FAMILY.

PLEASE SHARE THIS helpful chart with your family and friends, to dispel their fear, by clicking below.

You can share by email, Twitter, Facebook or Google+ - or Blog about it by clicking on the icons following this article.

Click the icons below to share or copy and paste the url: http://harbaughhomes.blogspot.com/2013/10/great-chart-simplifying-health.html

Read the rest of the article from the NAR:
Simplifying the Health Insurance Decision Process

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Thursday, September 26, 2013

35% Cheaper to Buy Than Rent Your Home

35% Cheaper to Buy Than Rent Your Home.

During the Summer of 2013, Trulia, an online real estate site, reported the results of its study of whether it is cheaper to buy or rent your home.

This study included 101 of the largest real estate markets in America and compared the cost of buying versus renting for June 1st to August 31, 2013.

In San Diego, it would be 20% cheaper to Buy a Home than to Rent.
For a savings of over $300 per month. - Source: Trulia

To Buy or Rent - That is the Question.

With the uptick this Summer in interest rates and home prices, buyers have cooled down heading into Fall to re-evaluate whether their plan to buy a home, instead of continuing to pay rent, is still a good idea.

In short, the answer is yes.

Buying is still cheaper than renting; not to mention buying a home is a great way to grow wealth in the long term and potentially save on your income taxes. The result is financial security and financial freedom.

According to Trulia's Buy vs. Rent Study, on average, it is 35% cheaper to buy a home than to rent. This figure is down from 45% last year.

8 out of 10 People own their home or plan to buy.

Even with the Recent Uptick in Interest Rates

and the Increase in Home Prices?

Yes, the author of the results reported, “Recent mortgage rate and home price increases have made buying significantly more expensive than last year, but not enough to tip the math in favor of renting. This is because rates remain well below historical norms, and prices are still slightly undervalued, too.”

What Questions Do I Ask?

Trulia has a pretty nifty interactive tool to help calculate whether buying is cheaper than renting for your particular situation. You must consider the following factors:

What is your target monthly rent?
What is your target home price if buying?
How long would you live in your home?
What is your income tax rate?
What is your mortgage interest rate?

San Diego: The Results for Buying versus Renting.

So, I tried Trulia's calculator for renting versus buying in San Diego because recently a property, which I manage, was available for rent.

I had well over 50 emails, texts, and phone calls from prospective renters willing to pay $1,600 per month for this 2 bedroom, 2 bath condo, which would sell for about $300,000!

For those who appeared to be perfect candidates for buying, instead of helping the landlord pay off his mortgage and his investment property, I would ask them,

**"Why don't you buy a home?"**

Using this example, in San Diego, if you were considering paying $1,600 monthly rent or buying a $300,000 home, it would be 20% cheaper to buy than to commit to that lease, according to Trulia's calculator. You would save approximately $300 per month buying your home over renting! See the graphic above.

Don't Rent from me - Let's Go Buy a Home!

5 Top Reasons People Buy their Home rather than Rent.

Some would-be buyers asked, "What if I don't know if I will live in the home for 5 or 7 years?"

You could hold it as a rental property or sell it and take the profit as your down payment on your next home.

The tenants would pay off your investment, rather than you paying off your landlord's property.

Contact me to See Whether You Qualify to Buy

And How Much You Could be Saving

Call, text or email me to get pre-qualified for a loan and see if

now is a good time for you to buy a home.

For the details and how this is calculated, click the link and try The Interactive Calculator yourself.

Click the link to read Trulia's article on renting vs buying:
News Room - Trulia.com - Press Releases

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Featured Post

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

Sunday, December 8, 2013

Real Estate Prices Fluctuate with the Seasons - Prices Drop in the Fall.

Opportunity Knocks For Buyers.

Real Estate Prices are Trending Upward.

Where are we Today?

Mortgage Interest Rates seem to be Trending Upward - But Rates also Fall in the Fall.

Wednesday, October 2, 2013

"People fear what they don't understand . . ." - Andrew Smith

Thursday, September 26, 2013

35% Cheaper to Buy Than Rent Your Home.

To Buy or Rent - That is the Question.

Even with the Recent Uptick in Interest Rates

and the Increase in Home Prices?

What Questions Do I Ask?

San Diego: The Results for Buying versus Renting.

"Why don't you buy a home?"

Don't Rent from me - Let's Go Buy a Home!

Contact me to See Whether You Qualify to Buy

And How Much You Could be Saving

**"Why don't you buy a home?"**