June 2007
Market Update
We are asked all of the time, "How is the Market doing?" The correct answer to that question is, "Which market?" Looking at the SOLDS and PENDINGS of our team and of other agents, we can see some very interesting trends. 1) Homes with more upgrades sell! This is very clear. Buyers have so many homes to choose from, they tend to for the homes with the most upgrades (inside and outside). 2) One story homes sell! As buyers think about locking in long-term interest rates, they are thinkin about buying a home they can stay for 30 years. 3) Homes priced at $500,000 sell faster than do homes priced at $1,500,000. Buyers of high-end homes are having a hard time selling their current homes, whereas first-time buyers are plentiful and ready to buy.
Interest Rates
Over the past 3 weeks, we have seen a dramatic increase in interest rates. As interest rates increase, buyers lose purchasing power. For example, if you borrow $600,000 at 6.25% your montly payment would be about the same as if you borrowed $550,000 at 6.875% The Federal Government raises interest rates to control current inflation (for example, the rapid increase in gas prices). It is counter-intuitive that the overall economy is going strong despite the fact that the housing market is showing a record number of foreclosures. Remember, the record high prices for many homes were set when interst rates were in the 4-5% range.
Cancer Relay
Thank you to everyone who participated in or contributed to the American Cancer Society Relay For Life. Over $30,000 was raised in Chula Vista to pay for research and services!
Foreclosures
Is buying a Foreclosure always the best deal? Not always. In a Foreclosure, the seller is typically a bank. As the buyer, you do not receive the normal disclosures describing past problems with the house that you receive when buying from a typical seller. Second, a bank usually requiresyou to take the property "as is." This means the bank will make no repairs to the property. A typical seller will normally repair safety issues (improper installation of water heater) or other items that do not function properly (broken dishwasher). Third, it usually takes longer dealing with a committee at a bank than it does with a typical seller. So, in summary, if you have worries about past damage such as water leaks or molds, or you do not have extra cash for current repairs, or you need to close escrow for sure by a certain date, a Foreclosure may not be for you.
The Shops At San Miguel Ranch
The following new stores are open or will be open soon at the new Shops At San Miguel Ranch at the corner of Mt. Miguel and Procter Valley Road. Food-related vendors: Albertson's, Villa Capri, Carvel Ice Cream, Kona Pacifca Kafe, Figaro's Pizza, Los Primos, Starbucks, Kyoto Sushi. Other vendors: Pretige Nails, My Little Sprout, Sports Clips, Post Net, Beasley Cleaners, USA Federal Credit Union, and First Bank. Welcome to the neighborhood!
Thought For The Month
"The most important things in your house are the people." --unknown
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