Tag Archives: trends

GOOD NEWS or Is This a Dream?

GOOD NEWS or Is This a Dream

Home prices are showing signs of going up in San Diego and the rest of the nation according to S&P/Case-Shiller Home Price Index (read the index here).

Yes, don’t blink–it is happening. According to the monthly index, San Diego has seen increases for the 3rd straight month, and my prediction is that this trend will continue shattering any inclination of declining values. The trend should continue, given that the inventory remains at 2-3 month levels to sell a home, verses the 6+ month levels of a year plus ago.

Interest rates are still OUTSTANDING — hovering at the 4% and under area, with no indications of raising rates by the Fed for the next 1-1 1/2 years coming up. What are you waiting for? If you are biding your time after a short sale or foreclosure you experienced in recent years, don’t fret–you will be fine! Call me NOW to get advice and your credit in line, on what steps to take in order to come out of the gate sprinting when you are ready.

For sellers looking to scale-down or upgrade to a larger home, NOW is also the time to GO! I have just closed a property that I personally spearheaded to reap above market value sales price that shattered the area it was located in for an ecstatic seller and neighbors! As an experienced agent for over 20 years now, I know you all know that there is no price you can put on experience when you are talking about one of the biggest assets you and most people have in their portfolio towards their retirement. CALL me now!

For sellers who are still upside-down and want to still try to keep you home, go here NOW: www.NationalMortgagesSettlement.com. There’s no more time to waste, CALL ME–I can help guide you as I have helped sevreal homeowners with this predicament. On the other side of the coin, the LAWS PROTECTING YOU ARE EXPIRING and you may be wasting an opportunity to start over again with interest rates remaining low and the market values slowly edging up in the next several years.

While here are other real estate people that you can call: friends, family or TV advertising people who talk a good game, there is no better source for information or service from an agent with proven results that I have established and continue to produce. You are guaranteed to have me personally there the whole way, while the guys on local television cannot guarantee that, therefore promising positive results!

I am honored and grateful to serve you in any capacity you may need. God bless!

– John A Silva | (619) 890-3648 | Email me

Cash is king in today’s housing market

In these financially uncertain times in the housing market, all-cash sales are attractive offers to homesellers, but come with a condition–they usually must settle for less. In a typical housing market, if your home receives multiple offers (from prospective cash-carrying and/or those pre-approved for a loan), you will accept the highest bid.  But in this current market, mortgages can be hard to come by, and sellers often will take less in order to have the deal go through. 

The outcome: lowering prices despite fewer listings and rising demand.  According to the Star Tribune’s article below, the increased amount of cash offers is offsetting other postive trends that, if there weren’t these cash offers, should lead to higher prices.

All-cash offers in today's real estate marketThis all-cash trend is especially prevalent in distressed sales, where investors are the main buyers, and who typically deal with cash as it is. Short sales and foreclosures accounted for 42% of active listings last month, on average in metro areas. Read more about what the Star Tribune has to say on this topic in their article below:

In today’s topsy-turvy housing market, cash rules

Financing uncertainties make those cash offers alluring, but sellers often must settle for less money to guarantee a deal.

When Chris and Diane Finney decided to buy a bank-owned condo in St. Paul, they knew there would be competition.

Their strategy? Offer less — but offer cash.

While others said they would pay more, they needed to finance the deal. The bank took less and took the cash.

“We were in the driver’s seat,” Chris Finney said.

In a normal housing market, multiple bids usually lead to higher home prices, and the highest bid wins. But when credit markets are tighter and appraisals are often lower, many sellers will take less to be sure that the deal will get done.

“If I get five offers on a property and the cash offer is darned close to being one of those top offers, I’d take the cash offer any day,” said Marshall Saunders, owner/broker at Re/Max Results.

In December, 33 percent of all U.S. home sales were cash deals — a record since the downturn started in 2006, according to Campbell Survey and Inside Mortgage Finance. As a result, home prices can’t gain much traction because many sellers won’t necessarily accept the highest offer.

For most home buyers, it’s confounding to be rejected because they are financing the deal. For the housing market, it means more downward pressure on prices despite tight supplies and rising demand.

“It’s a real sign of what’s going on,” said Guy Cecala, publisher of Inside Mortgage Finance. “All things being equal, cash wins.”

The volume of cash deals is offsetting other positive trends in the market that should be leading to higher prices. The number of houses on the market has fallen to an eight-year low, and sales are up double digits. At the same time, home prices continue to fall.

At least a third of all homes sales last year involved an investor, Cecala said, and they often pay cash…

Read more of this article from the Star Tribune: “In today’s topsy-turvy housing market, cash rules.”