After Christmas Sale, – Bay Area Homes up to 60% off
That is a big statement. Macy’s, Target, Wal-Mart and all most other stores put their products on “After Christmas Sales”. Home Sellers in San Bruno, South San Francisco, and all over the San Francisco Bay Area have put their products on the “After Christmas Sale”
I have randomly selected two recently sold homes to use as an example.
3691 Exeter Dr., a 3BR/2Ba. San Bruno home just sold on Jan 18, 2012 for $452,000 it also sold on May 9 2003 for $600,000. That results into a 36% savings in monthly payments. Look at the numbers.
3875 Carter Drive, #106 a 2Br/2Ba. Condo in South San Francisco sold on Jan 4, 2012 doe $277,000 and in April 25, 2006 it sold for $550,000. A 59% savings. Look at the numbers.
As you look at the numbers please note the lower down payment required, and the lower property tax. Both due to the lower home price. You save all around. Numbers are deemed reliable but not guaranteed.
| 3691 | Exeter Dr. | San Bruno | 3875, #106 | Carter Dr | SSF | |
| 2012 | 2003 | Difference | 2012 | 2006 | Difference | |
| Purchase Price | $452,000 | 600,000 | 25% | 277,000 | 550,000 | 50% |
| Down Payment | 90,400 | 120,000 | 55,400 | 110,000 | ||
| Loan | 361,600 | 480,000 | 221,600 | 440,000 | ||
| Interest Rate | 4.25 | 5.75 | 4.25 | 6.5 | ||
| Principal and Int. | 1726. | 2801 | 1090 | 2781 | ||
| Property Tax @1.1% | 415 | 550 | 254 | 504 | ||
| Monthly Payment | 2140 | 3351 | 1344 | 3285 | 59% |
I selected these properties randomly. You might find savings greater or lesser. I want to point out to you by using real numbers the “Perfect Storm” has arrived; Low interest rates and low home prices. In the past if rates went down prices would go. This is an opportunity of a lifetime. If the I Pad was on sale like homes are on sale you would be on line at 4AM. For all of the potential buyers waiting for the right time, this is your wake up call. The time is right. Ken Rosen of the Fisher Center at UC Berkeley says “This is the best time to buy a home in 30 years”
Considering buying or want to learn more call your favorite Realtor or come to my Free Home Buying Seminar. Click here for more info and registration.
“It is Better To Own Real Estate and Wait, Than Wait To Own Real Estate”
www.LeeSellsMore.com
10 Reasons To Buy Bay Area Real Estate in 2011
With the worst behind us, the real estate industry is already picking up steam in 2011. Bay Area real estate inventory is already growing, prices are lower, and the interest rates couldn’t be better!
1. People who want to sell, including banks, wait until after the holidays to go to market. We are seeing inventory grow everyday in the Bay Area so far since January 1st.
2. If you want to live in a particular city or neighborhood, there is probably something there waiting for you! Go to www.KarinCunningham.com to search for a home anywhere in the Bay Area!
3. Foreclosures are available in most mid to lower price ranges. When purchased, the monthly mortgage could easily be equal or less than what you pay in rent. Estimate: $400,000 home price with $14,000 down=$2,000 monthly payment (not including tax and insurance).
4. A lot of people need tax write-offs. There are a lot of write-offs when you own a home such as interest and improvements. Owning a home can actually save you money!
5. Prop 60 and 90 allows homeowners to sell their homes and transfer their original property taxes to the next home that they buy as long as it’s an equal or lower value. San Mateo and Santa Clara both participate in this. Check out this link for more counties and detailed information http://www.wwlaw.com/prop60.htm
Read more
“HOW IS THE MARKET” AND THE YEAR THAT PAST
“HOW IS THE MARKET” AND THE YEAR THAT PAST
This past year, the most common question I was asked was, “How is the market?”
It was a year that I will never forget. At Prudential California Realty, San Bruno, we have over 100 agents. Some with many years of experience and some new to the business, this was our environment last year:
-We had the lowest drop in interest rates, yet it was difficult to obtain a loan.
-Buyers who chose to participate in a short sale waited months for the banks to approve the sale; meanwhile the banks delay in response created a larger debt.
-We had “short sale negotiators” with astronomical fees, so our agents learned to become “short sale negotiators” and they did not charge their clients.
- In some cases, homeowners stop paying their home mortgages so the bank would consider them as a “short sale” candidate. Read more
Miss The Federal Housing Tax Credit? Here Is Your Chance!
Many people missed the federal housing tax credit that ended a few months ago at the end of April this year. I personally met a good amount of potential buyers that were interested in purchasing a home and according to them they were motivated by the possibility of receiving the federal housing tax credit. It seems that now that the tax credit is no longer being offered many of those people are no longer interesting in purchasing home or at least would like to wait a little bit longer. Why I ask?
During the time that the tax credit was offered, Jan 1st 2009 to may 1st 2010 the interest rates did fluctuate. From my research I found the interest rates were at a high of about 5.75% and a low of about 4.75%. During this period I’m not sure how many of the people who purchased homes were waiting for the rates to go down or if they were mainly focused on closing before the tax credit deadline, My guess is the latter. Read more
Inflation or Deflation?
Whether a Federal Reserve action is inflationary or deflationary is difficult to gauge, for the simple fact that there isn’t a definitive definition of inflation and deflation. Some economists argue that rising prices are a measure of inflation while falling prices are a measure of deflation. That’s too simple, though, because there are many variables that influence prices – supply and demand, technology and money supply to name the obvious. It’s impossible to gauge which variable has the greatest impact. Read more
The Costs are Outweighing the Benefits
We’ve stated that the benefits of low interest rates have run their course. We hold to our contrary opinion that low rates are actually hindering more than helping markets these days. Consider the mortgage market: Even though mortgage rates are dwelling in the basement, fewer people are applying for mortgages. The MBA reported that purchase activity declined 1.2 percent to the second-lowest level since 1997 last week, while refinancing activity slid 7.3 percent from its May 2009 highs.
The Federal Reserve’s low-rate policy is hardly inspiring confidence. “Rates must be low because the economy is circling the drain,” so the man-on-the-street rationale goes. It’s the wrong message to send, because promoting risk aversion also means promoting inertia. Risk-averse markets are simply less willing to engage in riskier, but worthwhile, economic activity.
This risk-averse sentiment is readily reflected in the capital markets, where the relatively non-productive assets of gold and Treasury securities continue to be the investments of choice. That’s unfortunate, because we’d all be better off if there were more investment in the very productive (though riskier) assets of home purchases and renovation and mortgage lending.
Up, Up, But Not Quite Away
We were expecting a little more, but at least it’s trending in the right direction. We are speaking of the employment report, which showed payrolls rose by 431,000 last month.
That would be very good news, if not for the fact that 411,000 of the new hires were related to the census. Nevertheless, that still leaves a net positive for the private sector. The increase was enough to push the unemployment rate down to 9.7 percent (though some pundits argue the drop was really due to a lower participation rate).
You never want to read too much into a single month of data, but we remain encouraged: job growth and wages picked up from April to May, while the average workweek lengthened. And although moderate compared to past post-recessions, the recovery is looking more sustainable after consumer spending and business investment rose at a healthy pace in the first quarter.
Overall, we think this latest employment report provides another reason to act now in both the mortgage and housing markets.
The Post-Credit Era
We’ve been saying for the past month or so that we’re not particularly worried about the end of the federal homebuyers tax credits. We also weren’t particularly concerned when the Federal Reserve said it would cease purchasing mortgage-backed securities. After all, the only way to discover if a market is truly healthy and viable is to stop subsidizing it.
It’s still early to render a verdict, but so far so good. People recognize that the combination of low rates and lower home prices represent a great opportunity, while many shoppers who failed to find a home to qualify for the tax credit remain undeterred and, just as important, rational – understanding the go-go days of the early 2000s are over. And that’s a good thing. The market of that era was driven more by speculation and less by fundamentals. And though it was highly remunerative for many of us, we see how it turned out.
In housing, slow and steady wins the race, which is why we continue to advise our clients that today’s market offers good fundamentally sound deals that can be financed at good economically advantageous interest rates. Sounds like a win-win deal to us.
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Recent Posts
- What is a reverse mortgage?
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- After Christmas Sale, – Bay Area Homes up to 60% off
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