Housing Bubble? I Don't Think So!

How far have home prices come since the market crash? In some areas, home prices are higher than they were at the peak of the market — I’ll explain why today. 

If you are curious about how far home prices have risen since the crash, there are a few things you should know.

First of all, home prices all over the county have hit record highs in the past few months. In fact, in many areas home prices are just as high as or even higher than they were in 2006, which was the peak of the housing bubble.

That said, the current market is not in a housing bubble like it was 10 years ago. Instead, today’s high prices are mostly driven by a lack of supply. If you want to sell your home, then now is the time to do it.

"We are not in another housing bubble like we were 10 years ago."

Secondly, interest rates are still low, but they are rising. For example, last July, interest rates hovered between 3.25% and 3.35%. As of right now, interest rates are around 4%, which is still great news for buyers out there.

When you combine low housing inventory with low but rising interest rates, it is clear why so many homebuyers are looking to make their move. The spring season is fast approaching, and it is the hottest season for the real estate market. You need to take advantage of the spring market right now. 

If you have any questions about the home buying or selling process, give me a call or send me an email. I would be happy to guide you through the San Diego market.

**A broker is licensed to render real estate advise. If you desire tax, legal or lending advice, consult the appropriate professional. Videos and marketing by Broker are intended to help educate the public. Laws and real estate practices may change at anytime.  All information deemed reliable but is not guaranteed and determined on a case-by-case basis. If your property is listed, please disregard as it is not our intention to solicit. We cooperate fully with other brokers. Equal Housing Opportunity and member of the National Association of Realtors.

What Do Buyers and Sellers Actually Pay for When Buying and Selling a Home?

Buyers and sellers each incur costs during the course of their transaction. We have a detailed breakdown of each that we’d like to share.

So, what do buyers and sellers actually pay when buying and selling a home? 

Let's begin with the buyers. Please keep in mind these are just estimates and will depend on the lender you use, area you buy and the services and agents you select.

1.) Good news – Buyers, YOU DO NOT PAY ANY COMMISSION – BUYERS AGENT ARE FREE TO THE BUYER – SELLER PAYS.

2.) If you are purchasing a $500,000 home and putting down 20%, your down payment is $100,000.

3.) Closing costs – what are closing costs?  These consist of the following….

• Property Taxes – 6 months of taxes would be $1,084
• Title Charges - $900.00
• Escrow Fees - $1,925.00
• Lender Charges - $2,760.00     
• Home Owner Insurance - $600.00
• Misc Fees and Padding $300.00
  

So the total buyer fees will be approximately $100,000 for loan and $7569.00 (closing costs) for a total of $107,569.00.      

Sellers – Please keep in mind some of the fees can be negotiated. I will use the traditional fees and costs in this example.

1.) Commission – Sellers pay the commission to the Listing Broker (listing agent) and Selling Broker (buyer’s agent).  The brokers get paid and then pay the agents according to their individual agreements.

• $500,000 sales price – Commission (6%) will be $15,000 to the Listing Broker, $15,000 to the Selling Broker

• Title Charges - $2,200.00
• Escrow Fees - $1,225.00
• Lender Fees – 0
• Property Taxes - $2,000.00   

Additional Charges include (depending on the agent and services you use and what is negotiated in the purchase agreement) - Home Warranty for the Buyer, TC fee if any, Hazard Report, Notary and HOA and Doc fees - $1,600.00.

So the total “closing costs” including commission will be approximately $37,025.00

Again, please keep in mind these figures and many of the charges and fees can be negotiated in the purchase agreement and the agents and services you select.  If you have any additional questions, please contact me immediately. 

If you have any questions for us about the costs of buying or selling, give us a call or send us an email. We look forward to hearing from you.

**A broker is licensed to render real estate advise. If you desire tax, legal or lending advice, consult the appropriate professional. Videos and marketing by Broker are intended to help educate the public. Laws and real estate practices may change at anytime.  All information deemed reliable but is not guaranteed and determined on a case-by-case basis. If your property is listed, please disregard as it is not our intention to solicit. We cooperate fully with other brokers. Equal Housing Opportunity and member of the National Association of Realtors.