Well the news is out for 2005. San Diego homeowners are winners.
While homes are sitting a little longer and not as many homes
are being sold, the average home price rose 7.6%.
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Smart Buyers Move & Renters Lose |
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While buyers shake as they sign the contract to buy a home,
it is one of the best financial moves a person could make
for their future. According to the Federal Reserve Board
Consumer Finance Survey, homeowners acquire more wealth by a
paying off their mortgage, a kind of forced savings,
combined with equity growth opposed to renting. A person
making $30,000 to $49,999 a year, who owns a home, was shown
on average to have accumulated $126,500, almost twelve
times, in comparison to a renter who had $10,600.
With all the speculation of a real estate bubble, you may
be wondering if it is a good time to buy a home? Considering
that in 2005 the average home in San Diego rose by 7.6% and
it is expected to continue to rise. Gregory Smith, San Diego
County Tax Assessor, and Alan Nevin, Chief Economic Advisor
for MarketPointe Real Estate Advisors both agree that “we do
not have a bubble in San Diego”. Gregory Smith reassures
that any price drops and longer market times during November
to February occur as a result a yearly seasonal slowdown.
Some compare the today’s housing market with that of the
early ‘90’s, when the real estate market prices dropped 25%.
However, at that time the combination of high interest
rates, in the teens, and high unemployment, as a result of
huge job cuts in the aerospace industry, drove the market
down. Today’s market is very different. While there has been
a slow down in the number of homes sold, but prices still
continue to climb. Some factors that influence the continued
growth in the housing market include San Diego’s low
unemployment rate of 3.9% “practically full-unemployment”
said Nevin. Interest rates are expected to remain in the 6’s
this year according to Smith. The only area that Smith
shared a concern about was the downtown area. The supply of
condos has increased with an over saturation of investors
who bought, and are now looking to sell, which may result in
some falling prices.
So don’t be afraid to make the commitment. After all
everyone needs a place to live. Why pay someone else’s
mortgage if you can afford to pay your own? Invest in your
future today, and don’t lose out as a renter. |
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Interest Rates As of 03/08/06 |
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30 yr Fixed 6.25% 1 point
30 yr Fixed 6.50% 0 points
15 yr Fixed 5.875% 1 point
5/1 ARM 5.875% 1 point
3/1yr ARM 5.625% 1 point
(Source Linda Carney, First Advantage Financial )
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Tips for Homeowner |
Every well-run household has its own unique solutions and
quick fixes to keep it humming smoothly. Each month I will
be sharing a a few new pearls of domestic wisdom to add to
your collection:
Have you tried baby wipes on carpet stains? They work so well, you'll
be wondering why no one told you sooner!
Keep candles in the refrigerator for several hours
before use to slow down dripping and make them last longer.
The best way to attack cooked-on spatters in your
microwave: Heat a half-cup of water for two minutes on high.
The steam will soften the food and the mess will wipe right
out.
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