Category Archives: Mortgage

California Real Estate: Housing Affordability in the 3rd Quarter

The latest on the California real estate market.

Take a look at the infographic below to see the percentage of households who can afford to buy a median-priced home.

Real estate affordability in California

This infographic is from CAR.org.

Money Monday: Top three financial priorities

“Emergency funds, retirement, debt payoff, college costs – overwhelming is an understatement when it comes to how we should prioritize our savings. We know we should be saving, but where and how much?”

personal finance

According to Forbes, saving for your kids’ college funds shouldn’t be in the top-three priorities. What are the three things you should tackle before other financial needs and wants?

  1. Emergency savings
  2. Putting away for retirement
  3. Paying off debt

Then, you can begin to focus on other financial things, such as college funds and early mortgage payoff.

Read up on all of Forbes’ suggestions here: “The Top Three Priorities For Savings.”

 

Money Monday: How to buy your first home

Ready to move on from renting? Here’s some tips on buying your first home.

home buying

Search for La Mesa homes for sale here!

1. Get your money in order

This might be the largest purchase you make, which makes sorting out your money a top priority!

2. Shop at more than one place for your mortgage

You don’t have to stick with the first place you go for a loan; check out other lenders.

3. Shop for your home

Part of shopping for a home means considering enlisting the help of a real estate agent; I would be honored to have the opportunity to earn the position. Give me a call to see how I can help you in your house search!

Delve into each deeper in CNN’s article here: “How to Buy Your First Home.”

Money Monday: Should you rent or buy real estate?

Trying to figure out if renting or buying is best for your family? Thinking about a few questions can help you answer this question.

real estate buying or renting

“Homeownership was once the cornerstone of the American Dream, but times are changing. More U.S. households are renting today than at any point in the last 50 years, according to a Pew Research Center analysis.”

  1. How long are you planning on living there?
  2. Consider all of the hidden costs associated with both renting and owning.
  3. Are you saving and investing? Or throwing your money away?

Read more on CNN’s article here: “Should you rent or buy a home?”

Monday Monday: Fall may be financially the best time to move

Fall may be the best time for buyers to move.

A slower fall season in home buying may help more lingering home buyers to jump in.
Prices are easing somewhat. For the second month in a row, the median price of an existing home dropped. It reached $253,500 in August, after reaching a record high of $263,300 in June, according to the latest data from the National Association of REALTORS®.
“Median sales prices typically decline a bit heading into the fall,” says Danielle Hale, realtor.com®’s chief economist. “Summer is a big time for home purchases, so that families settle in before school starts in the fall. In the fall, the types of homes that sell are smaller for people without kids. So they tend to be less expensive.”
Existing homes are proving to be a bargain compared to newer homes. The median price of a new home reached $313,700 in July, which is 23.7 percent higher than an existing home.

Money Monday: How to know if you’re living beyond your means

“It’s a frightening statistic that 47% of Americans would struggle to come up with $400 to cover an unplanned expense. Yet nearly half of today’s workers are living paycheck-to-paycheck, with no financial cushion whatsoever, and a big part of the reason boils down to living beyond our means.”

(“3 signs you’re living beyond your means.” CNN Money. 19 Sept 2017.  http://money.cnn.com/2017/09/19/pf/living-beyond-your-means/index.html?iid=SF_LN)

Some indicators that you’re not spending within your budget:

  1. You have a low credit score
  2. Your rent or mortgage payment is more than 30% of your income
  3. You’re not saving at all

Read why these are signs that you’re living too high on the hog here.

July 2017 Real Estate Market Report

Existing-Home Sales Slide 1.3 Percent in July

real estate market update for July 2017Listings in July typically went under contract in under 30 days for the fourth consecutive month because of high buyer demand, but existing-home sales ultimately pulled back as large declines in the Northeast and Midwest outweighed sales increases in the South and West, according to the National Association of Realtors®.

Total existing-home sales, which are completed transactions that include single-family homes, townhomes, condominiums and co-ops, slipped 1.3 percent to a seasonally adjusted annual rate of 5.44 million in July from a downwardly revised 5.51 million in June. July’s sales pace is still 2.1 percent above a year ago, but is the lowest of 2017.

Lawrence Yun, NAR chief economist, says the second half of the year got off on a somewhat sour note as existing sales in July inched backward. “Buyer interest in most of the country has held up strongly this summer and homes are selling fast, but the negative effect of not enough inventory to choose from and its pressure on overall affordability put the brakes on what should’ve been a higher sales pace,” he said. “Contract activity has mostly trended downward since February and ultimately put a large dent on closings last month.”

“Home prices are still rising above incomes and way too fast in many markets,” said Yun. “Realtors® continue to say prospective buyers are frustrated by how quickly prices are rising for the minimal selection of homes that fit buyers’ budget and wish list.”

According to Freddie Mac, the average commitment rate (link is external) for a 30-year, conventional, fixed-rate mortgage rose to 3.97 percent in July from 3.90 percent in June. The average commitment rate for all of 2016 was 3.65 percent.

To read the rest of this article, visit here

Money Monday: Financial priorities of the generations

Each generation has a different priority when it comes to their finances.

Our nation’s different generations (centennials, millennials, xers, boomers, matures) place five categories in different order of importance. While some focus on building a nest egg, others concentrate on paying down debt, keeping a budget and controlling spending, saving money for emergencies or what-ifs, or saving for something specific.

Financial priorities of the generations

This inforgraphic is from the CALIFORNIA ASSOCIATION OF REALTORS.