Investors are starting to pick up really inexpensive condos. For example in University Heights there are 2 bedroom condos selling as low as $200,000. Considering rents are on the rise in San Diego, this is not a bad deal for investors. Bank owned real estate are plentiful in the County. Buyer must be weary as some of these homes may need some repairs before moving in. I ran across one listing, where the furnace was removed, along with all the kitchen cabinets. I also noticed that first time buyers are having a hard time getting 100% financing. Most banks will require minimum of 5% down even with good credit. There are some creative government loans, CalHFA has limited funds to assist first time buyers with 100% financing at really low rates. If qualify, buyers could also get assistance on downpayment monies from the government. Not all lenders carry this product.
San Diego Market
I have recently travelled to England. If people in England knew how cheap real estate was in San Diego, they would all be buying here right now. There are plain 1 bedroom condos downtown London selling for $2,000,000 American dollars. San Diego’s market has definitely picked up in the last 30 days. I had a client buy a 3 bedroom home in Spring Valley (1800 sq. ft.) 4 weeks ago. At that time there were 3-4 other homes for sale on the street. Now all those homes are in pending status. I spoke to my escrow officer she is buried with work, where 6 weeks ago she was slow. I am hearing the same story from termite inspectors. I believe we are within 15% of bottom. Anyone thinking about buying should think about it sooner than later before banks get any tighter with their daily changing lending conditions, and definately before we get a new president.
Investment Properties I found in my recent travels.
I love San Diego, but last year with the market on the downswing, I looked outside the state of California for good income property and possibly some good pre-construction condos to buy.
I found that duplexes in Austin make a lot of sense, usually with 20-25% down one can buy a piece of real estate for $180,000-$250,000 in a good area and cash flow.
Also downtown Austin is going crazy with all the new condos, such as 360, The Shore Condos, Spring, Constellation Project, Austonian, 4 Seasons etc.
8 years ago San Diego was in the same crazy mode, building lots of residential skyscrapers. People made a lot of money putting down their earnest money deposit and letting their deposit increase 5x before having to secure financing 1-2 years later upon completion. This was lucrative for the first few years. Anyone trying to do this in San Diego during the last couple of years, now is taking a loss on selling it or trying to rent it out while waiting for the market to go up again. There is speculation that the market will start going up in San Diego 2008.
For Austin, it is going up now. The duplexes I purchased a year ago, have appreciated 9% and are fully rented. Vacancy rates are low and are able to withstand small increases.
Kristen Webb
How long should a roof last?
Here is a great link to This Old House, it gives the life expectancy of your home.
San Diego Real Estate Market Update
Housing Market Expected to ‘Coast’ into 2007 with Modest Gains. (source RISEMEDIA)
Overall home price gains will be modest, said David Lereah, NAR’s chief economist, and sellers are adjusting to the market transition. “Home sellers are becoming realistic about current market conditions and are now offering more competitive pricing, in addition to some incentives or concession, especially to help first-time buyers” he said.
There are short sales now available, where the bank may forgive some of the debt the seller owes in order to be able to sell the home at fair market value. Typically these will be sellers that have bought at the peak of the market July 2005 and must sell due to hardship, and cannot get what they paid for the home. Good news for buyers.
To search for homes with addresses at no obligation go to www.kwebbproperties.com
Filed under Buyers, Market Update, Real Estate, San Diego, San Diego Housing
San Diego Real Estate-Search the MLS
Click>>>>>> http://www.kwebbproperties.com
Filed under Buyers, Market Update, Real Estate, San Diego, San Diego Housing
San Diego Real Estate
San Diego Real Estate There are indications in San Diego’s Real Estate market we are leveling out, and 2007 looks like the bottom of the real estate market year. It is definitely a buyer’s market. Sellers that have bought prior to 2004, their homes have equity, some more than others depending on location. Condos took a large hit this year, mainly due to the abundance of condo conversions and new condo developments. Lots of incentives for buyers, 1-2 years of HOA dues paid for by the seller/developer, non-recurring closing costs paid by the seller, appliances included, etc. Search the mls for your dream condo or home www.kwebbproperties.com
Filed under Buyers, Market Update, Real Estate, San Diego, San Diego Housing, Uncategorized
