Pete Saxon Realty Newsletter – April 2016

April 1, 2016

Cuba welcomes American home buyers

The Cuban Association of REALTORS stated in a news release that they  would welcome Americans of either the Republican or Democratic political  parties who want to flee the United States if the other party’s  candidate wins the presidential election in November of this year. “Why  go to Canada?” they ask. “It’s so cold there.”

This is an interesting development as the Cuban Association of REALTORS  is not an officially recognized body in that country as it is not possible for anyone but the government to own property there.

In their press release, found in a bottle on a Miami area beach, the
Cubans warned that if certain of the current candidates running for
president in the United States were elected it might be possible that one day, in  the not too distant future, only the government would own property in  this country as well. They suggest in their release that all Americans  should read Michael Lewis’ book The Big Short or at least see the  movie with the same title. “You Americans don’t seem to realize that the  vast majority of home loans are ultimately owned by your government,”  explained the news release. “You can visit your own government’s U.S.  Securities and Exchange Commission’s website where it’s explained how it  works. Nothing much has changed since your Great Recession of 2008.”

Even more interestingly, the Cubans went on to warn that since the U.S. is borrowing so much money by selling Treasury Bonds to foreign  governments that it could ultimately be possible for a foreign government (China?) to own American real estate secured by home loans if the U.S. Treasury ever went into default.

They concluded their news release by stating, “Stranger things have happened. We know, The Rolling Stones just put on a concert here.”

March 29, 2016

S&P/Case-Shiller Index up 5.7%

“Home values in 20 U.S. cities kept climbing in January, a sign the limited supply of available properties may push prices out of reach for some buyers,” reports BloombergBusiness. The same report indicated that San Diego County prices increased 6.9%  over the same period according to the San Diego-Union Tribune. Lack of inventory both locally and nationally is a major factor in increasing sales prices as potential home buyers compete and bid up prices.

March 28, 2016

U.S. Pending home sales up 3.5%

Pending home sales, a barometer of future purchases, hit it’s highest level in seven months if February according the the National Association of REALTORS as reported by CNBC. Pending sales were also up 0.7 over February of last year.

March 24, 2016

County has negative population growth

Back in the 1980’s I attended a real estate seminar where one of the speakers predicted that San Diego County would become a “service economy” where only a percentage of highly trained professionals and business owners would be able to afford housing in San Diego County while everyone else would work in businesses that served these people. That seems to be exactly what is happening today according to an article in the San Diego Union-Tribune citing U.S. Census Bureau statistics.

March 22, 2016

San Diego median price $455,000

The San Diego Union-Tribune headline for this story “Median home prices drop slightly to $455,000” but the article goes on to say that prices are still 3.5% higher than last year according to CoreLogic data.

March 21, 2016

U.S. existing home sales slip in February

The National Association of REALTORS reports that existing home sales dropped by 7.1% in February across the country but sales are still by 2.1% from last year. These are national statistics and, like politics, all real estate valuation is local so the value of any property is what is going in the neighborhood.

March 17, 2016

County median prices down slightly

CoreLogic statistics reported by the San Diego Union-Tribune show that the median sales price for San Diego County homes was down 1.7% from January to February but still 3.5% higher than February 2015. Encouragingly, “The number of sales was up significantly from the typically sluggish January. CoreLogic recorded 2,648 home sales last month, up 11.7 percent from the month before and 2 percent from February 2015.”

March 11, 2016

San Diego County new home projects

The San Diego Union-Tribune slide show of the fifteen new home projects scheduled to open in 2016. It’s interesting to see the pricing of these new developments based on their location. It’s really true, the value of real estate is based on “location, location, location.”

March 10, 2016

Mortgage rates move higher

The Washington Post reports that Federal Home Loan Mortgage Corp data shows mortgage interest rates edged up to 3.68% after falling for eight straight weeks.

March 6, 2016

Sold in one day

Villa Martinique loft style one bedroom, one and one-half bath. Great location, walk to lake and shopping. Offered by Pete Saxon Realty for $199,900.

March 3, 2016

“Home Improvement” habits to break

The National Association of REALTORS magazine lists 8 home maintenance habits you should reconsider before completing according to This Old House.

Mortgage interest rates edge higher

The Washington Post article reports that mortgage rates moved higher as yields on 10-year Treasury notes rose according to the Federal Home Loan Mortgage Corp.

Pending in One Day – Eastlake Condo

Villa Martinique loft style one bedroom, one and one-half bath.  Great location, walk to lake and shopping. Offered by Pete Saxon Realty for $199,900.

More Information

Pete Saxon Realty Newsletter – March 2016

February 29, 2016

47th month of home price gains

“Total existing-home sales1, which are completed transactions that include single-family homes, townhomes, condominiums and co-ops, inched 0.4 percent to a seasonally adjusted annual rate of 5.47 million in January,” reports the National Association of REALTORS. Prices were up 8.2% over January of 2015 which was the 47th consecutive month of year-over-year gains.

U.S. Pending home sales down in January

REUTERS article reports National Association of REALTORS statistics showing that pending home sales, properties under contract but not yet closed, were down 2.5% in January. “While January’s blizzard possibly caused some of the pullback in the Northeast, the recent acceleration in home prices and minimal inventory throughout the country appears to be the primary obstacle holding back would-be buyers,” Lawrence Yun, the NAR’s chief economist, said in a statement.

February 25, 2016

U.S. existing home sales up slightly

The National Association of REALTORS survey shows existing home sales reached the highest levels in six months in January. The West was the only region to see a decline in sales in January. “Existing-home sales in the West decreased 4.1 percent to an annual rate of 1.17 million in January, but are still 8.3 percent higher than a year ago. The median price in the West was $309,400, which is 7.4 percent above January 2015.”

Mortgage rates lowest in over a year

Yields on 10-year Treasury notes fell to 1.65% pushing mortgage interest rates down according to an article in The Washington Post. Mortgage rates are closely tied to the movement of long-term bonds.

February 24, 2016

San Diego prices up 7%

The S&P/Case-Shiller Home Price Index reports that, “In the last 12 months, San Diego County home prices rose 7.2 percent — 1.8 percent more than the national average, the index said. San Diego had the sixth highest gains year-over-year, outpaced by Portland, San Francisco, Denver and others,” according to a story in the San Diego Union-Tribune.

County home inventory has biggest drop in U.S.

From January 2015 to January 2016 San Diego County had the largest drop in properties for sale than any other market in the country according to a report by Zillow and reported in the San Diego Union-Tribune. “Aaron Terrazas, a senior economist at Zillow, said San Diego is in a tough spot because of a lack of new homes for sale and current homeowners are worried about moving because of the tight market.”

February 17, 2016

County median price up nearly 7%

The median home price in San Diego was $462,750 up nearly 7% from January 2015 according to CoreLogic and reported in the San Diego Union-Tribune. Median prices did drop 2.6% in the one month period from December to January

February 16, 2016

San Diego Zip Codes top 2007 highs

Eighteen San Diego area zip codes had average 2015 home prices exceed the market highs set in 2007 according to the San Diego Union-Tribune.

New Listing – Escondido

Escondido Home For Sale - Exterior
Escondido Home For Sale – Exterior

Aurora Hills four bedroom, four and one-half bath executive home with 4,038 sq.ft. on over one-half acre corner lot. Offered for $790,000 – $820,000 by Pete Saxon Realty

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February 14, 2016

Could mortgage rates set record lows?

CNBC’s Diana Olick reports on how the bond market influences mortgage rates.  “Lower mortgage rates certainly offer homebuyers lower monthly payments and at the same time help them to qualify for larger loans, so they can buy more expensive homes. The latter is particularly pertinent this spring, as home prices are rising due to record low supply of homes for sale.”

February 12, 2016

San Diego’s cheapest and most expensive home sales in 2015

Here’s a couple of fun stories in the San Diego Union-Tribune. San Diego County’s 5 cheapest home sales in 2015 and the 5 most expensive homes in 2015.

Closed Sale – Bonita Condo

Smoketree Bonita Condo - Sold
Smoketree Bonita Condo – Sold

One story, easy access no stairs. Lovely, updated unit. Open floor plan with cathedral ceiling and gas/wood burning fireplace in living room. Granite countertops and maple cabinets in kitchen. Double pane windows. Great location in complex, corner unit with only one common wall that has been extra insulated. Close to shopping, freeways and golf clubs. All appliances are newer and convey. Large two car garage with opener; additional parking for one car with permit. Sold for $300,000.00 by Pete Saxon Realty.

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February 10, 2016

Closed Sale – Santee

Pending Sale
Pending Sale

Completely remodeled home with new kitchen, SS Frigidaire Gallery appliances including refrigerator, granite and a large island. Spacious great room has refaced fireplace and beautiful wood ceiling. Newer dual paned windows and new sewer line and plumbing.Nicely done furnished (un-permitted) 18×17 studio offers bedroom and full bath with spa tub, private yard w/separate entrance. Could become a master suite! Large yard with street access. Major shopping within 1 mile. Rare find and a great opportunity!!! Sold for $440,000 by Pete Saxon Realty.

February 4, 2016

Mortgage rates continue to drop

USAToday articles notes that, “average rate on a 30-year fixed-rate mortgage slid to 3.72% this week, down from 3.79% last week and the lowest since it averaged 3.68% in April 2015. This is the national average which can vary slightly from market to market.