2018 brings my usual unvarnished likely probability vs. hopes, never ending seller market fantasies, and selective amnesia of past market corrections newsletter for you.
Should you buy now?
No, unless you are a first time buyer, or… are selling & moving up or selling & downsizing.
-Why First time Home Buyers? Because buying in entry level-easy for rents to be close to your mortgage payment – say around $1,000 negative(rent minus mortgage), as most buyers would put at least $10K-15K a year into some other investment vehicle
…and besides there are some strictly numbers first time home buyers, but most just want to have a place that they can call home, stop renting, and get a tax benefit for writing off their interest payment if the purchase price is under 750K
-Why Selling and Moving Up or Selling and Downsizing- Because life is short and why be in a place that is too small, or you don’t like or is too much for you to take care of..and the interest rates are still low!
Should you Sell Now?
Yes, but wait until Spring because you will get more for your property, unless you need to sell or are buying another property. Buying a move up/downsize property is going to be hard to buy a property when you have to use the money from a property you are selling.
Seller’s in a seller’s market do not like contingent on selling another property offers,if the offer price is the same why would the seller gamble with a contingent buyer when they can take a non contingent buyer?
What About Investors?
If you are an investor, it depends on the individual property. It may be a great time to buy if the property is significantly under market, or if your goal is a long term hold and it is an undervalued off market coastal property(competition on the market MLS (where the whole world knows about it and drives up prices).
Otherwise everything will be on sale when the market corrects, which will not be anytime in the next year unless there is a natural disaster, or war.
Value adding/ flipper clients will make money if they buy right and sell prior the end of this summer.
And now Zillow comments: (by the way Zillow has offers some helpful information occasionally, just do not count on selling your home for their ‘Zestimate’ before talking to a proven successful-trustworthy- referred by others-real estate professional)
Zillow: Inventory Shortages will afffect the market
Brad: I agree, and it means that it is getting tougher and tougher for a first time home buyer to get into this market
Zillow: Home Prices Growth Will Slow to 4.1% Nationwide
Brad: In San Diego, it could slow down from an average of 10% to 6%…and maybe 4-5% as interest rates continue to go up
Zillow: Home owners will look to remodel their homes rather than sell
Brad: Some will in San Diego, but most will sell and buy another home due to excessive work schedules and lack of desire to mess with build outs-think contractor coordination, waiting for permits/maddening city hoops and hurdles
‘He has been there anytime I needed him and I know if I need him again he would be there too. Brad gave 100% from the first time he called me till the sale was done.’
‘We really felt like Brad was on our side throughout the transaction and knew how to navigate the process calmly and effectively’
-Curt and Kim C
‘If you are skeptical on a realtor look no further. You will get what you want and when you want it with Brad. His knowledge on this market is second to none. The most unusual thing about this transaction is his exceptional follow up thru out the entire process, and even after we’ve moved in and got settled. He is one of a kind in this market and this profession’
-Scott & Allison T.
‘Thanks to Brad Brinkman and his team we now have a beautiful new home and a great investment into our future.’
-Ryan & Amanda F.
‘He found my house for me when others could not, in a location that I thought would be impossible. His aggressiveness has given me the opportunity to live in a fantastic place.’
-Trace H., Pilot Hawaiian Airlines., U.S. Navy Pilot
‘You made it easy for us to make this move into our new home because you took on all the worries, handling our transaction with skill and expertise. Specifically we were impressed with your approach to business, treating each and every customer as you treated us; as though we were your most important clients’
‘He made each transaction very smooth and it was great peace of mind knowing I could count on him.’