VENICE REAL ESTATE MARKET UPDATE
MAY 2008 VENICE SALES
HOW DOES THIS COMPARE ???
I am starting to see an increase in buyer interest ... at the right price !!! The possibility of interest rate increases may be a partial factor. And, perhaps there is a feeling that we may be nearing the low point. However, buyers definitely are not anticipating an increase in property values in the near future.
As to the current market ... Venice inventory remains high ... 85 active single family homes for sale as on June 19th ... the same as one month ago. However, the average days on market for the current active listings increased to 77 days as compared to 71 days a month ago.
So far in 2008, 54 single family homes have sold (average days on market was 65 days ... down a smidgen from last month's 66); 22 are in escrow (average days on market was 59 ... down almost 10% from last month's it was 65 days) and 94 listings have been taken off the market without selling (average days on market was 113 days ... up from last month).
For a look of all of the Venice property sales by month since 1999, visit my web site at ../sa/index.html.
WATCH THE ROAD ...
NEW CELL PHONE LAW BECOMES EFFECTIVE JULY 1ST
California's two new cellular phone use laws, which will take effect July 1, 2008, will force drivers to use hands-free mobile devices and prohibit drivers under 18 from using cell phones at all. For additional information please visit the web site ... http://www.watchtheroad.org.
California median home price - April 08: $403,870 (Source: C.A.R.)
California highest median home price by C.A.R. region April 08: Santa Barbara So. Coast $1,170.000 (Source: C.A.R.)
California lowest median home price by C.A.R. region April 08: High Desert $210,860 (Source: C.A.R.)
California First-time Buyer Affordability Index - First Quarter 08: 44 percent (Source: C.A.R.)
Mortgage rates - week ending 06/12/08
30-year fixed: 6.32% Fees/points: 0.7%
15-year fixed: 5.93% Fees/points: 0.6%
1-year adjustable: 5.09 % Fees/points: 0.6% (Source: Freddie Mac)
FOR HOMEOWNERS ...
DOES MOVING UP MAKE SENSE ???
These questions will help you decide whether you're ready for a home that's larger or in a more desirable location. If you answer yes to most of the questions, it's a sign that you may be ready to move.
1. Have you built substantial equity in your current home? Look at your annual mortgage statement or call your lender to find out. Usually, you don't build up much equity in the first few years of your mortgage, as monthly payments are mostly interest, but if you've owned your home for five or more years, you may have significant, unrealized gains.
2. Has your income or financial situation improved? If you're making more money, you may be able to afford higher mortgage payments and cover the costs of moving.
3. Have you outgrown your neighborhood? The neighborhood you pick for your first home might not be the same neighborhood you want to settle down in for good. For example, you may have realized that you'd like to be closer to your job or live in a better school district.
4. Are there reasons why you can't remodel or add on? Sometimes you can create a bigger home by adding a new room or building up. But if your property isn't large enough, your municipality doesn't allow it, or you're simply not interested in remodeling, then moving to a bigger home may be your best option.
5. Are you comfortable moving in the current housing market? If your market is hot, your home may sell quickly and for top dollar, but the home you buy also will be more expensive. If your market is slow, finding a buyer may take longer, but you'll have more selection and better pricing as you seek your new home.
6. Are interest rates attractive? A low rate not only helps you buy a larger home, but also makes it easier to find a buyer.
Reprinted from Realtor® Magazine. Copywrite 2008. All rights reserved.
7 REASONS TO OWN YOUR HOME
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.