Real Estate Watch – Dan Conway
What Happened to the Real Estate Market?
The year 2014 started with bang! Homes were going on and off the market in a mere few days – then silence. What can we attribute to this reticence on behalf of buyers? It’s certainly not interest rates as money is still cheap. Are homes overpriced? Quite possibly. However, if buyers do not make offers we cannot judge that. Then it must be demand. No. There’s a glut of housing inventory, which should spark buying.
We believe fewer people can or want to fulfill the American dream of starting a household of their own. However, if you compare leasing a home to purchasing one, the advantages are clearly with purchasing. Landlords have seen their inventory become more and more popular and have gradually increased the monthly rents. An average home in Route 56 corridor rents for $1.50 to $1.75 per square foot. A 2,000 square foot home will lease for $3,000 to $3,500 per month. That’s a mortgage payment!
The first thing any prospective buyer should do is speak with a lending institution to see what they are qualified to purchase. Once that has been determined, buyers should search for those homes with the criteria they desire. It’s amazing what they’ll find and how quickly they’ll be in the market for their new home.
“Two years ago, your coworker bought a house in your same neighborhood at a steal price. This year, you decided to jump into the house-hunting game and discovered that a similar house would cost 20% more. Yikes! With property values rising so quickly in many parts of the nation, are we on the cusp of another housing bubble? In one word: no. In fact, we are far, far away from bubble territory.” (Excerpt from Forbes Magazine; Paula Pant, May 16, 2014)
Now is the time to buy. Inventory is high. Sellers may be carrying two mortgages, so now is the time to build wealth. Next year may experience a whole different scenario. Get in the game, call your realtor, and buy!
We’re here to help you find that perfect dream home. Call us at 858-243-0873 or check out our website at www.buyingsandiegorealestate.com.
CA DRE LIC #01885744
3860 Valley Center Dr.
Suite 409, San Diego, CA 92130
www.danconwaySOLD.com | Dan@conwayre.com