The Lawhead Team would like to share the latest HomeDex Report for North San Diego County for October:

October continued to be busier than the calendar normally suggests. Buyer activity remains higher than normal for this time of year, while in many segments of the market housing supply remains much lower than one year ago. Multiple offers remain a common occurrence in many areas, keeping housing hot while the temperatures continue to fall.

Closed Sales increased 36.6 percent for Detached homes but decreased 19.8 percent for Attached homes. Pending Sales increased 35.7 percent for Detached homes and 14.7 percent for Attached homes.

The Median Sales Price was up 11.8 percent to $777,000 for Detached homes and 7.2 percent to $504,000 for Attached homes. Days on Market decreased 38.5 percent for Detached homes and 35.3 percent for Attached homes. Supply decreased 50.0 percent for Detached homes and 53.8 percent for Attached homes.

Mortgage rates dropped to new record lows again in October, helping to offset the monthly mortgage payment increases caused by the rise in home prices seen in many segments of the market across the country. While prices often dip a bit in the winter months, continued buyer demand may temper any price retreats this year.

The HomeDex Report is from North San Diego County Association of Realtors.

The Lawhead Team would like to share the latest One Cool Thing about outdated advice you want to make sure you don’t follow when it comes to buying or selling a home. 

People who’ve gone through the homebuying process are often eager to give advice. Unfortunately, sometimes that advice is outdated.

Check out some of the most common advice you may hear, which no longer applies given the current market:

• Wait For Spring – Waiting for the busiest season in real estate won’t always give you an advantage. Yes there may be more houses available but there’s also going to be more competition. Instead, buy when you find the right property that will meet your needs for the day – and the next five to ten years!
• Wait For Home Prices To Come Down – Some buyers may be told to wait until home prices come down before jumping into the market. But it’s important to remember that rents are likely also high. Paying high rent now and hoping you’ll find a better deal later won’t work. 
• Make A Lower Offer So You Have Room To Negotiate – You may hear to make an offer that’s less than what you’re actually willing to pay so you can negotiate. A truly motivated seller is less inclined to engage in the back and forth. Instead base your offer on sales of similar homes in the area. 

Be sure to talk to your REALTOR about the best approach to buying a house in today’s market.

The Lawhead Team would like to share the latest “One Cool Thing” about California renters and their dream of making homeownership happen.

Despite affordability challenges, California renters continue to hold homeownership in high regard and aspire to purchase a home eventually.

Advantages of homeownership, according to renters:

• 21%: provides a good long term investment
• 19%: gives them the freedom to do what they want with their home
• 12%: allows stability to plant roots

What’s hindering renters from homeownership:

• Only 40% of renters are familiar with the credit and loan criteria needed to purchase a home.
• 14% of renters are under the impression that more than 50% down payment is needed to purchase a home.
• Nearly 40% of California renters believe that more than 20% is required to become a homeowner.

These misconceptions result in many renters delaying their home purchase or possibly giving up on the dream of homeownership. If you’re a renter, talk to your REALTOR to find out how you can become a homeowner.

Source: CAR 2018 State of the California Consumer Survey

The Lawhead Team would like to share the latest “One Cool Thing” about surrounding school rankings and how they influence choosing a home to buy.

When it comes to choosing a home, the ranking of a school is very important to consumers of all ages and income levels. Here’s how people perceive the importance of highly rated schools:

• 47% consider the rating of surrounding schools very important
• 23% consider it somewhat important
• 11% feel that school ratings are not very important
• 19% feel that surrounding school ratings are not at all important

43% of consumers age 34 or under believe highly rated schools are very important while 58% of consumers earning more than $100,000 think highly rated schools are very important.

Want to know what is going on in North County San Diego when it comes to buying and selling homes? Check out the latest statistics from the HomeDex report:

• Rising home prices, higher interest rates and increased building material costs have pressured housing affordability to a ten-year low, according to the National Association of Home Builders. Keen market observers have been watching this situation take shape for quite some time. Nationally, median household income has risen 2.6% in the last 12 months, while home prices are up 6.0%. That kind of gap will eventually create fewer sales due to affordability concerns, which is happening in several markets, especially in the middle to high-middle price ranges.
• Closed Sales decreased 15.3 percent for Detached homes and 15.3 percent for Attached homes. Pending Sales decreased 9.4 percent for Detached homes and 10.4 percent for Attached homes.
• The Median Sales Price was up 9.4 percent to $755,000 for Detached homes and 2.3 percent to $445,000 for Attached homes. Days on Market increased 12.9 percent for Detached homes and 25.0 percent for Attached homes. Supply increased 25.0 percent for Detached homes and 46.7 percent for Attached homes.
• While some are starting to look for recessionary signs like fewer sales, dropping prices and even foreclosures, others are taking a more cautious and research-based approached to their predictions. The fact remains that the trends do not yet support a dramatic shift away from what has been experienced over the last several years. Housing starts are performing admirably if not excitingly, prices are still inching upward, supply remains low and consumers are optimistic. The U.S. economy is under scrutiny but certainly not deteriorating.

HomeDex report is from the North San Diego County Association of Realtors.

The Lawhead Team would like to share the latest One Cool Thing on unique ways you can get help with your down payment for your home:

One of the biggest misconceptions about homebuying is the need for a 20% down payment. Here are some unique ways you can get help with your down payment –

• Crowdsource: Some people use crowdsourcing websites, like Kickstarter, to fund short films and concert tours, so who says you can’t crowdsource your first home?
• Your Employer: Employer Assisted Housing (EAH) programs help connect low-to moderate-income workers with down payment assistance through their employer. Ask the HR or benefits personnel at your employer if the company is party of an EAH program.
• Lender Programs: Many lenders offer programs to help people buy a home with a small down payment. FHA mortgages, for example, can require as little as 3.5% down.
• Government Options: The U.S. Department of Housing and Urban Development offers a number of homeownership programs including ones based on profession such as law enforcement officers, firefighters, teachers and EMT’s.

The California Association of Realtors also offers a Down Payment Resource Directory that will help you find out if you are eligible for any of the 400 plus down payment assistance programs available in California.

Summer is heating up and homes with amenities geared toward summertime activities have major appeal for buyers.

Check out the latest One Cool Thing about must haves while selling your home during the summertime:

In rank order, the summer features correlated with highest price-per-square foot boost, when compared to similar homes, without it include:

• Outdoor showers – 97% price per square foot premium
• Barbecues – 26% premium
• Entertainers poor or spa – 26% boost
• Zoned sprinklers – 21% lift
• Fire pits or outdoor fireplaces – 25% jump

Homes with summer features are often listed with at least 10% higher prices than similar homes!

If you are looking to buy or sell in the summertime, The Lawhead Team can help!

The Lawhead Team would like to share the latest One Cool Thing about “Military Members On A Home Buying Mission”.

Did you know active-service military members and veterans make up the smallest group of homebuyers?

Of all home buyers, 2% are active-service military, 17% are veterans and 81% are non-military. Check out what they are purchasing and how:

Active-Service Military Buyers –

• 50% are first time home buyers
• 68% are first time sellers
• 56% completely financed their home with no down payment
• 77% of active-service military buyers use a VA loan to buy their home
• 15% used a conventional loan to buy their home

The average home for active-military home buyers are a 4 bedroom, 2 bath house approximately 2,050 square feet.

Military Veteran Buyers –

• 19% are first time home buyers
• 26% are first time home sellers
• 41% military veterans completely financed their home with no down payment
• 58% used a VA loan to buy their home
• 66% of military veterans use a conventional loan

For military veteran buyers, the average home they bought was a 3 bedroom, 2 bath house with approximately 1,960 square feet.

Non-Military Buyers

• 35% are first time home buyers and 39% are first time home sellers.
• 39% non military buyers are first time sellers.
• 7% completely financed their home with no down payment
• 66% used a conventional loan to purchase their home.

The average home for a non military home buyer is a 3 bedroom, 2 bath house with 1,870 square feet.

Source: National Association of Realtors.

The housing market continues to stay competitive according to the latest HomeDex Report for North County San Diego attached and detached homes:

Just like last year at this time, prospective home buyers should expect a competitive housing market for the next several months. With payrolls trending upward and unemployment trending downward month after month in an extensive string of positive economic news, demand remains quite strong.

Given the fact that gradually rising mortgage rates often infuse urgency to get into a new home before it costs more later, buyers need to remain watchful of new listings and make their offers quickly.

Closed Sales decreased 18.4 percent for Detached homes and 17.0 percent for Attached homes. Pending Sales decreased 5.9 percent for Detached homes and 3.4 percent for Attached homes.

The Median Sales Price was up 4.0 percent to $728,000 for Detached homes and 10.0 percent to $480,000 for Attached homes. Days on Market decreased 7.1 percent for Detached homes and 19.0 percent for Attached homes.

Supply increased 8.3 percent for Detached homes and 14.3 percent for Attached homes.

Although home sales may actually drop in year-over-year comparisons over the next few months, that has more to do with low inventory than a lack of buyer interest. As lower days on market and higher prices persist year after year, one might rationally expect a change in the outlook for residential real estate, yet the current situation has proven to be remarkably sustainable likely due to stronger fundamentals in home loan approvals than were in place a decade ago.

Want to find out more about the HomeDex Report for your home? Call The Lawhead Team!

The Lawhead Team would like to share the latest One Cool Thing about the most popular home renovation projects that are happening this year. Check it out:

Did you know that 58% of homewoners are planning to spend money on home improvement projects this year?

According to the latest One Cool Thing, here is what projects they have planned:

• 43% want to remodel their outdoor space
• 31% are going to take on a bathroom remodel this year
• 28% will be doing home repair (Isn’t it fun being a homeowner?)
• 26% are tackling a kitchen remodel
• 16% want to remodel their garage
• 5% will be adding a pool to their backyard

How are homeowners planning to pay for their home improvement projects?

• 62% will tap into their savings
• 30% will put the home projects on a credit card
• 13% are going to use a home equity line of credit
• 8% plan to liquidate or tap into investments
• 5% will get a home improvement loan

Source: Lightstream Home Improvement

Are you looking to upgrade instead of remodel? Contact The Lawhead Team!