Seven Reasons to Own Your Home
Date: Tuesday October 28, 2008Posted in: real estate, home, wealth, buying a home, tax benefits, homeownership
1. Tax breaks. The U.S. Tax Code lets you deduct the interest you pay on your mortgage, your property taxes, as well as some of the costs involved in buying your home.
2. Appreciation. Real estate has long-term, stable growth in value. While year-to-year fluctuations are normal, median existing-home sale prices have increased on average 6.5 percent each year from 1972 through 2005, and increased 88.5 percent over the last 10 years, according to the NATIONAL ASSOCIATION OF REALTORS®. In addition, the number of U.S. households is expected to rise 15 percent over the next decade, creating continued high demand for housing.
3. Equity. Money paid for rent is money that you’ll never see again, but mortgage payments let you build equity ownership interest in your home.
4. Savings. Building equity in your home is a ready-made savings plan. And when you sell, you can generally take up to $250,000 ($500,000 for a married couple) as gain without owing any federal income tax.
5. Predictability. Unlike rent, your fixed-mortgage payments don’t rise over the years so your housing costs may actually decline as you own the home longer. However, keep in mind that property taxes and insurance costs will increase.
6. Freedom. The home is yours. You can decorate any way you want and benefit from your investment for as long as you own the home.
7. Stability. Remaining in one neighborhood for several years gives you a chance to participate in community activities, lets you and your family establish lasting friendships, and offers your children the benefit of educational continuity. Online resources: To calculate whether buying is the best financial option for you, use the “Buy vs. Rent” calculator at http://www.ginniemae.gov/.
South County Sales Week of August 27 - September 2, 2008
Date: Wednesday September 3, 2008Posted in: real estate market, price, real estate, home, Morgan Hill, San Martin, Gilroy, pending sales, housing market, list price, housing inventory
This was a much more active week in the South County than last week. Twelve more homes went to pending status than last week for a total of 43 sales! Of these sales, three were condo/townhouses and the remainder were single family residences.
Of these 43 sales, the lsit price ranges were as follows:
$200,000 - $500,000 = 23 sales
$500,000 - $800,000 = 9 sales
$800,000 - $1,200,000 = 7 sales
$1,200,000 - $2,000,000 = 4 sales
Tune in next week for an update on the number of sales in South Santa Clara County!
Should We Sell or Buy First?
Date: Tuesday July 22, 2008Posted in: multiple offers, home, buyer's market, housing market, seller's market
I often have clients ask, “Should we find the house we want to buy prior to listing our house on the market?” And the answer depends on what the real estate market is doing. For example, we currently have a buyer’s market with a large number of homes listed. So, instead of jumping into a purchase that is contingent on the sale of the buyer’s home, it is much better to sell the home first. This is because it could take many months and possible price reductions until the home is sold. Not only will there still be a good supply of homes available for sale when the home is sold, but the person who has already sold their home has much more leverage in the negotiation process in their next purchase.
Now consider the seller’s market we had a few years ago. There were few homes available for purchase and those that came on the market were often sold very quickly with multiple offers. In that kind of market, it’s advisable to find a desirable, affordable house and put in an offer that gives you time to attract a good offer on your current house.
Also keep in mind that if you’re selling high, you’re probably buying high and if you’re selling low, you’re buying low. Don’t try too hard to time the market when you are buying and selling in the same type of real estate market.
Let’s talk statistics
Date: Wednesday May 14, 2008Posted in: price, real estate, home, Morgan Hill, South Santa Clara County, San Martin, Gilroy, MLS, median price, statistics, contract
Here in the south Santa Clara County area consisting of Morgan Hill, Gilroy and San Martin, pending sales have risen as Spring progesses. In January of 2008, we had 56 single family residences (sfr) go under contract. In February, 2008, 68 went under contract. In March, 2008, 80 went under contract and in April, 2008, 123 went under contract which is a signifcant rise.
There are currently 825 sfr active listings in the south county area with 140 sales pending under contract.
For the month of April, 2008, the cumulative days on market (CDOM) is 116 compared to 92 from April of last year.
The average selling price in April for the south county is $607,283 which is a 30% drop from April of last year’s average of $868,560.
The median selling price in April for the south county is $605,777 which is a 25% drop from April of last year’s median of $807,345. I always feel the median price is a more accurate picture of what is happening in the market than the average price because it is easy to skew the average when a very expensive home sells.
These statistics were obtained from pro.mlslistings.com.
