Archive for the ‘First-Time Buyers’ Category

Newer Entries »

Differences Between Men and Women in Home Buying

Tuesday, August 18th, 2009

Coldwell Banker Real Estate recently did a survey of attitudes toward home buying using International Communications Research. They found that both men and women are interested in having work space in the home. Both feel that the safety and security of the home would be a deal breaking issue.

Women make up their minds about a potential home more quickly than men, who often need extra visits. More women than men are concerned that the home be near to the extended family. The decision to buy a particular home is considered mutual by 70% of couples. Men and women agree on the potential use of a spare room, the most popular uses being bedroom, office/study, and family room/den. But four times as many men as women want the extra room to be devoted to entertainment.

Your real estate professional can help you reach a consensus in choosing your new home.

Posted in Buyers, First-Time Buyers | No Comments »

County Home Prices Have Bottomed Out

Tuesday, August 18th, 2009

New data from MDA DataQuick which monitors San Diego County home sales show that there has been a mild increase in prices and numbers of sales in July. The median price is up to $320,000 from the recent low of $280,000 in January. The number of sales was 3809, up 11% from July of 2008.

But experts do not predict  rapid appreciation to return. The rise in the median price was partly due to a larger contribution of move-up homes of over $500,000–27.9 % of sales as against the recent low of 17.5% in January. The percentage of sold homes that had been foreclosed has correspondingly dropped to 37.4% from the recent high of 55% in January. Still, most of the activity is interest from first-time buyers and investors in starter homes in the lower price range, resulting in multiple offers.

The inventory of available homes on the market has fallen to 8,889 from 13,268 last month, although part of the fall is due to a change of definition; short-sales waiting for lender approval are now called contingent sales instead of active. The inventory of homes to choose from is down because many potential sellers are holding their homes off the market because of the depressed prices, down 38% from the 2005 peak.

Overall it appears that the market has likely bottomed out, so it is a good time for interested buyers to start shopping. There are bargains available if you are interested in Cardiff, Encinitas, Carlsbad, Oceanside, Vista, or San Marcos.

Posted in Buyers, First-Time Buyers, Homes Foreclosure, Short Sales | No Comments »

Large Rise in Housing Affordability

Sunday, August 16th, 2009

Yesterday the California Association of Realtors reported a marked rise in the affordability of homes in San Diego County. The affordability index rose in the second quarter to 59%, up from 46% last year in the same period and 23% in 2007. Home prices have been declining for three years now, due to the recession and the increase in foreclosures which have pushed down prices. In San Diego currently the median price of a home is $295,000 which requires a qualifying income of $52,550 to make monthly payments of $1750. Nearly 60% of local households could qualify to buy such a house. The comparable figures for a year ago were a median price of $369,700 with a necessary income of $68,061 for a montly payment of $2,269. This makes San Diego more affordable than LA (56% affordable), San Francisco Bay Area (55%), and Orange County (53%), but still less affordable than nearby Riverside County (79%) and San Bernadino (82%).

But the low prices may not last long. Inventories of houses for sale are low because potential sellers are often keeping their homes off the market, waiting for higher prices to return. Prices are low enough that there are now often multiple bids over asking price on starter houses under $350,000, pushing prices back up somewhat.

This may well be the price bottom of the market, so people who are considering buying should begin shopping before the prices begin to rise again, especially if they are looking in Cardiff, Encinitas, Carlsbad, Oceanside, Vista, or San Marcos.

Posted in Buyers, First-Time Buyers, My Real Estate Blog | No Comments »

First-Time Buyer Tax Credit

Friday, August 14th, 2009

Qualified buyers should take advantage of the first-time buyer nonrepayable credit of $8000 which expires on Dec. 1. But make sure that you qualify before you claim the credit. To qualify you must not have owned a principal residence during the previous three years. But check to be sure you are not disqualified by some other requirement. You don’t qualify if you purchase the home from a related person. Both co-purchasing spouses must qualify under the three year rule mentioned above. The purchased house must not be acquired by inheritance or gift. The financing of the purchase must not be through a tax-exempt mortgage bond program. And your income must not be over $95,000 of modified adjusted gross income for singles, $170,000 for married joint filers.

If you qualify you simply must file IRS form 5405, listing the address of the house purchased, and you should receive your money in a month or two.

But beware of filing for the refund if you do not qualify. The IRS is checking carefully on the legitimacy of applications, and they are finding a lot of frauds. Beware especially of tax preparers who offer to help with the process and ask to receive a fee from the refund. Some of them have duped people into applying when they did not qualify and are being convicted of fraud.

If you do qualify, this is an excellent opportunity to buy the house of your dreams and get some money back from the government!

Posted in Buyers, First-Time Buyers | No Comments »

First-Time Buyers Should Act Quickly to Receive $8000 tax credit

Monday, August 3rd, 2009

If you are a first-time buyer interested in buying a home in Cardiff, Encinitas, Carlsbad, Oceanside, Vista, or San Marcos, you should act very quickly to be able to take advantage of the $8000 tax credit offered by the government. As of August 1st, there are only 121 days left to take advantage of this credit. In order to qualify, the buyers must close their transaction by 11:59 p.m. on November 30, 2009.

First-time buyers should realize that especially in this current market, the process of finding a property and closing it may take a longer time. Much of the inventory for first-time buyers is in distressed properties (short sales or Foreclosures), and these take a much longer time to close.

The tax credit is available to buyers who have not owned a principal residence during the three-year period prior to the purchase. The credit does NOT have to be repaid, and it must be claimed on your federal income tax return. You can use this credit for any kind of loan including FHA.

Buyers are finding that the credit is allowing them to take advantage of opportunities they might not otherwise consider. For example, the $8000 can be applied toward repairs and renovation in fixer-uppers or can be applied towards closing costs.

Don’t miss out on this opportunity to buy a first home and get $8000 back.

Posted in First-Time Buyers | No Comments »

Newer Entries »