Text Goes here

We’ve all seen the news. Everybody is talking about a change in the market. But what does that mean? Is the current market “cooling off” in San Diego, or maybe is stabilizing? We asked two experts for their opinions regarding this matter;

Elias Levy, the primary owner of Better Homes and Gardens Real Estate Clarity in Chula Vista, California.

Horacio Herrera, a Loan Originator at Cardinal Financial in Chula Vista, California

What trends are we seeing in the San Diego County Real Estate Market?

Ask the experts – Elias Levy and Horacio Herrera*

We are still in a seller’s market, but with the rising inventory, we see the market start to make the shift to stabilize.

Will the market slow down?

No. The largest demand for housing comes from millennial buyers whose demand exceeds the existing inventory.

Should buyers wait to buy if they can?

No. With rising interest rates and strong property values, the monthly cost to purchase a home will stabilize or continue to increase.

What trends are most important to watch?

From a lender’s perspective, Mortgage Rates.  Buyers are sensitive to increasing rates as they result in higher monthly payments.

From a broker’s perspective: Inventory.  The increased inventory gives buyers more options and improves their ability to negotiate.

What effect does low inventory have on the real estate market?

Low inventory leads to higher competition between buyers, introducing urgency and desperation.

*The comments above are personal opinions, we encourage consumers to do their own research.

Source: MLS 2022

Mortgage Credit Certificate (MCC) is an assistance program from the federal government, mostly for first-time buyers with moderate income. The program, which is only available in certain states, allows those who qualify to get a tax credit of the 30% annual interest paid on the mortgage, up to $2,000.

According to the National Council of State Housing (NCSHA), ”after an MCC is issued, the homeowner receives a tax credit equal to the product of the mortgage amount, the mortgage interest rate, and the MCC percentage” – that rate is administered by the Housing Finance Agency.

So, now you are wondering who is eligible for this program; mostly first-time home buyers, who meet a certain income, also the value of the property has a range, and they must use that home as their primary residence.

This program was created by the Deficit Reduction Act of 1984 and is administered by the State and local HFAs. In 2019, twenty-eight State HFAs issued 22,298 MCCs, according to the NCSHA website. Without a doubt, this is a great resource for first-time buyers, during these times when properties are reaching high prices, inventories hitting historical lows, and see some money returned.

Sources: https://www.ncsha.org/resource/mortgage-credit-certificate-program-qa/

In San Diego County we are seeing unprecedented home value appreciation.  We are still experiencing multiple offers in all price ranges despite the hikes to the interest rate by the Federal Reserve.  Homeownership remains the ultimate American dream and continues to be one of the major contributing factors to establishing wealth. It is worth the financial sacrifice to budget for the purchase of a home.  Forecasting for the San Diego home market does not show signs of a price decrease anytime soon.  We are seeing major changes in world economics that will have an effect on our economy and home values for years to come.

Buyers should shop at a price below their top price point, allowing them to have the ability to overbid on their preferred home.  Buyers also need to carefully evaluate their wants versus their needs. If you can’t afford the perfect home today, purchase what makes sense for your budget.  This will allow you to get your foot in the door of real estate ownership and build equity to move up to your dream home.  If rising prices continue, new buyers may miss the opportunity to get into the market at all.

Patty Nesbitt has 35 years of Real Estate experience, the majority in San Diego County, and is an owner at Better Homes and Gardens Real Estate Clarity in Chula Vista, California.

Summer might be still a couple of months away, but as soon it hits San Diego it will bring along wildfires in many inland areas. You don’t have to be an expert to learn some basic tips and valuable information to prepare your home for fire season. The California Department of Forestry & Fire Protection (CALFIRE) through their website: readyforwildfire.org, promotes simple and necessary steps you can complete before we start experimenting with high temperatures.

One of the basic things to consider is your home itself. You can start by making sure your roof contains materials such as composition, metal, clay, or tile, those are very fire resistant. And make sure your roof is clean and doesn’t accumulate dead plants or leaves that can catch fire quickly.

Another important element to look after is windows. It has been stated that dual-paned windows with tempered glass can reduce breakage during a fire, which could cause a lot of damage. One simple thing you need to consider when building a house, or remodeling, is to avoid having big windows that face areas of vegetation, especially if vegetation is mostly dead weeds.

What about the walls? Walls are a big part of a house, and unfortunately using materials such as woods, boards, and shingles (most commonly used), create great danger for the property since they are all very flammable. Using instead ignition-resistant materials like stucco, fiber cement wall siding, fire retardant, and treated wood, can delay or prevent fire from spreading.

Even more, it’s not only about protecting your property, yourself, and your community, you should also think about landscaping. Even considering harvesting certain types of plants could mean a huge disaster or could prevent a big spreading in your home. Select some high-moisture plants such as aloe, ice plant, French lavender, etc. Also, try to purchase plants that are not too tall, and stay close to the ground, which helps to decrease fire flames from flying around.

For more information, please visit https://www.readyforwildfire.org/prepare-for-wildfire/get-ready/hardening-your-home/ and https://www.readyforwildfire.org/prepare-for-wildfire/get-ready/fire-smart-landscaping/ to learn more about preparing yourself, your community, home, and landscape, for a wildfire.