Are We About to Enter a Buyers’ Market? Home sales are below last year’s levels, home values are appreciating at a slower pace, and there are reports showing purchasing demand softening. This has some thinking we may be entering a buyers’ market after sellers have had the upper hand for the past several years. Is this really happening? The market has definitely softened. However, according to two chief economists in the industry, we are a long way from a market that totally favors the purchaser: Dr. Svenja Gudell, Zillow Chief Economist: “These seller challenges don’t indicate we’re suddenly in a buyers’ market – we don’t expect market conditions to shift decidedly in favor of buyers until 2020 or later. But buyers certainly are starting to balk at the rapid rise in prices and home values are starting to grow at a less frenetic pace.” Danielle Hale, Chief Economist of realtor.com: “The signs are pointing to a market that’s shifting toward buyers. But, in most places, we’re still a long way from a full reversal.” In addition, Pulsenomics Inc. recently surveyed over one hundred economists, real estate experts, and investment & market strategists and asked this question: “When do you expect U.S. housing market conditions to shift decidedly in favor of homebuyers?” Only 5% said the market has already shifted. Here are the rest of the survey results: Bottom Line The market is beginning to normalize but that doesn’t mean we will quickly shift to a market favoring the buyer. We believe Ivy Zelman, author of the well-respected ‘Z’ Report, best explained the current confusion: “With the rate of home price appreciation starting to decelerate alongside the uptick in inventory…we expect significant debate about whether this is a bullish or bearish sign. In our view, the short-term narrative will probably be confusing, but more sustainable growth and affordability will likely be the end result.”

When it comes to buying or selling a home there are many factors you should consider. Where you want to live, why you want to buy or sell, and who will help you along your journey are just some of those factors. When it comes to today’s real estate market, though, the top two factors to consider are what’s happening with interest rates & inventory. Interest Rates Mortgage interest rates have been on the rise and are now over three-quarters of a percentage point higher than they were at the beginning of the year. According to Freddie Mac’s latest Primary Mortgage Market Survey, rates climbed to 4.72% for a 30-year fixed rate mortgage last week. The interest rate you secure when buying a home not only greatly impacts your monthly housing costs, but also impacts your purchasing power. Purchasing power, simply put, is the amount of home you can afford to buy for the budget you have available to spend. As rates increase, the price of the house you can afford to buy will decrease if you plan to stay within a certain monthly housing budget. The chart below shows the impact that rising interest rates would have if you planned to purchase a $400,000 home while keeping your principal and interest payments between $2,020-$2,050 a month. With each quarter of a percent increase in interest rate, the value of the home you can afford decreases by 2.5% (in this example, $10,000). Experts predict that mortgage rates will be over 5% by this time next year. Inventory A ‘normal’ real estate market requires there to be a 6-month supply of homes for sale in order for prices to increase only with inflation. According to the National Association of Realtors (NAR), listing inventory is currently at a 4.3-month supply (still well below the 6-months needed), which has put upward pressure on home prices. Home prices have increased year-over-year for the last 78 straight months. The inventory of homes for sale in the real estate market had been on a steady decline and experienced year-over-year drops for 36 straight months (from July 2015 to May 2018), but we are starting to see a shift in inventory over the last three months. The chart below shows the change in housing supply over the last 12 months compared to the previous 12 months. As you can see, in June, July, and August, inventory levels have started to increase as compared to the same time last year. This is a trend to watch as we move further into the fall and winter months. If we continue to see an increase in homes for sale, we could start moving further away from a seller’s market and closer to a normal market. Bottom Line If you are planning to enter the housing market, either as a buyer or a seller, let’s get together to discuss the changes in mortgage interest rates and inventory and what they could mean for you.

Mortgage interest rates, as reported by Freddie Mac, have increased by close to a quarter of a percent over the last several weeks. Freddie Mac, Fannie Mae, the Mortgage Bankers Association, and the National Association of Realtors are all calling for mortgage rates to rise another quarter of a percent by next year. In addition to the predictions from the four major reporting agencies mentioned above, the Federal Open Market Committee recently voted “unanimously to approve a 1/4 percentage point increase in the primary credit rate to 2.75 percent.” Historically, an increase in the primary credit rate has translated to an overall jump in mortgage interest rates as well. This has caused some purchasers to lament the fact that they may no longer be able to get a rate below 4%. However, we must realize that current rates are still at historic lows. Here is a chart showing the average mortgage interest rate over the last several decades: Bottom Line Though you may have missed the lowest mortgage rate ever offered, you can still get a better interest rate than your older brother or sister did ten years ago, a lower rate than your parents did twenty years ago, and a better rate than your grandparents did forty years ago.

The price of any item is determined by the supply of that item, as well as the market’s demand for it. The National Association of REALTORS (NAR) surveys “over 50,000 real estate practitioners about their expectations for home sales, prices and market conditions” for their monthly REALTORS Confidence Index. Their latest edition sheds some light on the relationship between seller traffic (supply) and buyer traffic (demand).  It also helps to answer the question: “Should I buy now, or wait until next year?” Buyer Demand The map below was created after asking the question: “How would you rate buyer traffic in your area?” The darker the blue, the stronger the demand for homes is in that area. The survey showed that in 38 out of 50 states buyer demand was slightly lower than this time last year but remains strong. Only six states had a ‘stable’ demand level. Seller Supply  The index also asked: “How would you rate seller traffic in your area?” As you can see from the map below, 23 states reported ‘weak’ seller traffic, 22 states and Washington D.C. reported ‘stable’ seller traffic, and 5 states reported ‘strong’ seller traffic. This means there are far fewer homes on the market than what is needed to satisfy the buyers who are out looking for homes. Bottom Line Looking at the maps above, it is not hard to see why prices are appreciating in many areas of the country. Until the supply of homes for sale starts to meet buyer demand, prices will continue to increase. If you are debating listing your home for sale, let’s get together so I can help you capitalize on the demand in the market now!

Some Highlights: The cost of waiting to buy is defined as the additional funds it would take to buy a home if prices & interest rates were to increase over a period of time. Freddie Mac predicts interest rates to rise to 5.2% by the third quarter of 2019. CoreLogic predicts home prices to appreciate by 5.1% over the next 12 months. If you are ready and willing to buy your dream home, find out if you are able to!

The interest rate you pay on your home mortgage has a direct impact on your monthly payment; the higher the rate, the greater the payment will be. That is why it is important to know where rates are headed when deciding to start your home search. Below is a chart created using Freddie Mac’s U.S. Economic & Housing Marketing Outlook. As you can see, interest rates are projected to increase steadily over the course of the next year. How Will This Impact Your Mortgage Payment? Depending on the amount of the loan that you secure, a half of a percent (.5%) increase in interest rate can increase your monthly mortgage payment significantly. According to CoreLogic’s latest Home Price Index, national home prices have appreciated 6.2% from this time last year and are predicted to be 5.1% higher next year. If both the predictions of home price and interest rate increases become a reality, families would wind up paying considerably more for their next homes. Bottom Line Even a small increase in interest rate can impact your family’s wealth, so don’t wait until next year! Let’s get together to evaluate your ability to purchase your dream home now.

Stunning Views from this Rancho Del Rey Home for Sale! 1019 Acero Street, Chula Vista CA 91910 Priced on a range of $919,900 to $969,900. This one of a kind home is located on a nearly quarter-acre premium lot in the prestigious “Aragon” development of Rancho Del Rey. You will enjoy panoramic views from Point Loma/Downtown to the mountains. The spacious floor plan features ample natural light, an open family room that opens to the kitchen and a full bedroom/bath on the lower level. Upstairs you will find the large master retreat, complete with a private balcony and large sitting room that has a full closet. (Easily could easily be a 6th bedroom.) The large yard is nicely landscaped with lush lawns and an incredible swimming pool and spa in back. The home features beautiful stone flooring on the lower level, an upgraded kitchen with a large pantry and more. The home also features a large three car attached garage and central A/C. There is no HOA and $147 / Month in Mello-Roos. Listing by San Diego Realtor Glen Henderson Search All San Diego Homes For Sale at GreaterSanDiegoAreaHomes.com About Rancho Del Rey & Chula Vista: In 1542, a fleet of three small ships sailed into San Diego Harbor commanded by Juan Rodriquez Cabrillo. These explorations led the Spanish to claim the land. In 1795, Chula Vista became a part of a Spanish land grant known as Rancho del Rey or “The King’s Ranch.” When Mexico formed its own government in 1831, Rancho del Rey became known as Rancho del la Nacion or National Ranch. The ranch encompassed the area now known as National City, Chula Vista, Bonita, Sunnyside and the Sweetwater Valley. Rancho del la Nacion was used by the Spanish as grazing land for their cattle and horses until 1845 when it was granted to John Forster, the son-in-law of Mexican governor Pio Pico. The United States claimed California following the Mexican-American war in 1847 and admitted it as a state in 1850. From then till now, Rancho Del Rey has maintained a homey, comfortable lifestyle – merging many of the pleasant things in Southern California with many of the exciting and uniquely Californian attractions and places to visit. Residents of all ages enjoy both extremes in Rancho Del Ray, California’s one and only “King’s Ranch.” Because of its many special qualities and enduring charms, homes in Rancho Del Rey sell quickly. Charming first-time buyer and senior homes, executive and luxury estates, recreational properties for active lives and special view properties of all styles and sizes can be found within or near this community. Rancho Del Rey real estate includes a wide variety of homes for sale, condos for sale, water access properties, active adult communities, hobby farms and executive properties. Premier Homes Team, San Diego Real Estate Agents, Cal BRE # 01384181

Move in Ready Single Story Tierrasanta House for Sale 4980 Paguera Court, San Diego CA 92124 Do not miss this stunning single level home in the serene Villa Majorca neighborhood of Tierrasanta. Located near the end of the cul-de-sac and overlooking the hillside, this well kept Tierrasanta home gives you a quiet setting and no neighbors behind you. The spacious floor plan features a large living room and optional 4th bedroom. The home has been updated with new dual pane windows, updated 2nd bath, updated kitchen with granite counters and more! Conveniently located close to shopping, schools, hiking, and the library. If you have been searching for houses for sale in Tierrasanta, you do not want to miss this home! Listing by San Diego Realtor Glen Henderson Search All San Diego Homes For Sale at GreaterSanDiegoAreaHomes.com  The History of Tierrasanta: Tierrasanta is situated like an island, not directly bordered by any other community. It is bounded on the north by the Hwy 52 Freeway and the sprawling southern fields of MCAS Miramar; on the east by the 5,800-acre Mission Trails Regional Park, which has numerous hiking and mountain biking trails; on the west by bluffs bordering the Interstate 15 corridor, and on the south by steep canyons overlooking the San Diego River and Mission Valley. Community activities focus on the Tierrasanta Recreation Center, which includes lighted sports fields, a large swimming pool, tennis courts, a gymnasium, and meeting rooms. Numerous green belts with walking paths run through the canyons of Tierrasanta. The community has tree-lined streets and a secluded “small town” atmosphere, though it is centrally located with a 20 minute drive to downtown San Diego. Premier Homes Team, San Diego Real Estate Agents, Cal BRE lic # 01384181

Stunning Cardiff Home for Sale with Views! 2027 Glasgow Ave, Cardiff, CA 92007 Offered between $1,995,000-$2,285,000. This stunning home is located in Cardiff by the Sea, west of I-5 and it has ocean views! Pass through the dramatic mosaic entrance into a private courtyard; continue through a wall of French Doors to this masterfully designed custom home.  If you have been searching for a home for sale in Cardiff, you do not want to miss your opportunity! The formal dining room has a kiva fireplace and butler’s pantry. Take the nautical spiral staircase to the top deck with a kitchen and entertaining area to enjoy the panoramic view. Home surrounds a brick patio artistically landscaped featuring a spa and privacy. Quiet tranquil location. search all homes for sale in cardiff by the sea, encinitas. Cardiff homes with an ocean view search all homes for sale in cardiff by the sea, encinitas. Cardiff homes with an ocean view 4 bedroom, 4 bath, 2 offices, 3 fireplaces in this 3,028 ESF home with multiple outdoor view living spaces. The living room boasts vaulted ceilings with open exposed beams that continue through the home. Natural light is abundant as you enter the chef’s kitchen and wood detailed dining room with a climate-controlled wine cellar. Eight foot French doors separate the formal dining room and the rear courtyard which is centrally located, a private oasis accessible from multiple rooms. This is the only known courtyard layout of its kind in Cardiff’s walking district. The first floor is accommodated by 3 bedrooms, a laundry room and a built-in office work space. The rear bedroom area could easily be divided to encompass a separate living quarter, with its own bed, bath, walk-in closet and kitchenette through a separate entrance. The second floor opens up to a study with ocean views. The media room offers surround sound and includes an ensuite and 8’ French doors leading to the wrap-around deck facing the West. The master bedroom exudes natural light streaming from both sides of the room and overlooks the private courtyard and spa. Stunning ocean views from this Cardiff home The upper deck has unobstructed sweeping views of the Pacific Ocean. Perfect for entertaining and enjoyment, this rooftop terrace has a full outdoor kitchen, fireplace, dining table and lounging space. Play music through the sound system wired through the whole home, both inside and out, clear sound from every room. Concealed 46 panel solar system allows for Eco-friendly living without compromising design. Off street parking for 3 vehicles. Living in Cardiff is a lifestyle like no other, a relaxed community offering a small town feeling. Located in the walking district allows you to be steps away from amenities including Encinitas Community Park (also has a dog park), fine dining, cafes, shopping and prime beaches with some of San Diego’s best surf locations.   Contact Your San Diego Real Estate Agent, Glen Henderson for more information about this home or others. If you are searching for Homes for Sale in Cardiff, make sure to visit our site  www.greatersandiegoareahomes.com

Will I have to pay taxes when I sell my home? This is one of the most common questions we receive from sellers that are concerned with paying capital gains when they sell a home. You list your house for sale and hope for the best. Then fortune smiles on you and you sell it for a tidy profit. It can be tough to turn right around and give a healthy percentage of that profit to the Internal Revenue Service, but the IRS isn’t heartless. You may be able to keep most – if not all – of that money. You can exclude it from your taxable income using the home sale exclusion. $250,000 to $500,000 Exclusion on the Sale of a Primary Residence Unmarried individuals can exclude up to $250,000 in profit from the sale of their main home, and you can exclude $500,000 if you’re married and file a joint return with your spouse. So if you’re single and you realize a $200,000 profit on the sale, you don’t have to report any of it as taxable income because this is less than the $250,000 exclusion amount you’re entitled to. If you realize a $255,000 profit or gain, you must report $5,000 of it as income. The IRS details this further in Publication 523, Selling Your Home do I pay capital gains when I sell my house   Of course, the exclusion isn’t automatic. The IRS imposes a few rules. The 2-Out-Of-5-Year Rule You must have lived in the home for a minimum of two years out of the last five years immediately preceding the date of the sale, which typically means you can’t use the exclusion on the sale of rental or business property. The two years don’t have to be consecutive, however. You might live in the home for a year, rent it out for three years, then move back in for 12 months just prior to its sale. The IRS figures that if you spent this much time under that roof, the home qualifies as your principal residence. You can use this 2-out-of-5-year rule to exclude your profits each time you sell your main home. Of course, this generally means that you can claim the exclusion only once every two years because you must spend at least that much time in residence, but some exceptions do apply. If you lived in your home less than 24 months, you may be able to exclude at least a portion of the gain. A Change in the Location of Your Job If you lived in your house for less than two years, you can exclude a part of your gain if your work location changed. This exception would apply if you started a new job or if your current employer requires you to move to a new location. Health Concerns If you’re selling your house for medical or health reasons, document these reasons with a letter from your physician. This, too, allows you to live in the home for less than two years. You don’t have to file the letter with your tax return, but keep it with your personal records just in case the IRS wants further information. Unforeseen Circumstances You will also want to document any unforeseen circumstances that might force you to sell your home before you’ve lived there the requisite period of time. According to the IRS, an unforeseen circumstance is “the occurrence of an event that you could not reasonably have anticipated before buying and occupying your main home.” These events might include natural disasters, acts of war, acts of terrorism, a change in your employment or unemployment that left you unable to meet basic living expenses, death, divorce or separation, or multiple births from the same pregnancy. The Partial Exclusion You can calculate your partial exclusion based on the amount of time you actually lived in your home. Count those months, then divide the number by 24. Multiply this ratio by $250,000 or by $500,000 if you’re married. The result is the amount of gain you can exclude from your taxable income. For example, you might have lived in your home for 12 months, then you had to sell it because your employer asked you to relocate to a different office in another state. You’re not married. Twelve months divided by 24 months comes out to .50. Multiply this by your maximum exclusion of $250,000. The result: you can exclude up to $125,000 or 50 percent of your profit. If your gain is more than $125,000, you would include only the amount over $125,000 as taxable income on your return. If you realize a $150,000 gain, you would report and pay taxes on $25,000. If your gain is equal to or less than $125,000, you can exclude the entire amount from your taxable income. Suspension of the Five-Year Period for Military If you or your spouse are on qualified official extended duty in the Uniformed Services, the Foreign Service or the intelligence community, you may elect to suspend the five-year test period for up to 10 years. An individual is on qualified official extended duty if for more than 90 days or for an indefinite period, the individual is: At a duty station that’s at least 50 miles from your main home, or Residing under government orders in government housing. Reporting the Gain Gain on the sale of your home is reported on Schedule D as a capital gain. If you owned your home for one year or less, the gain is reported as a short-term capital gain. If you owned your home for more than one year, it’s reported as a long-term capital gain. Short-term gains are taxed at the same rate as your regular income while the rates on long-term gains are more favorable: zero, 15 or 20 percent, depending on your tax bracket. Calculating Your Cost Basis and Capital Gain The formula for calculating your gain involves subtracting your cost basis from your selling price. Start with what you paid for the home, then add the costs you incurred in the purchase, such as title and escrow fees and real estate agent commissions. Now add the costs of any improvements you made, such as replacing the roof or furnace. Subtract any accumulated depreciation you may have taken over the years, such as if you ever took the home office deduction. The resulting number is your cost basis. Your capital gain would be the sales price of your home less your cost basis. If it’s a negative number, you’ve had a loss. Unfortunately, you cannot deduct a loss from the sale of your main home. If the resulting number is positive, you made a profit. Subtract the amount of your exclusion and the balance is your taxable gain. Please, remember that this is not tax advice.  It does serve as a starting point for you and we highly recommend that you speak with a tax professional to fully understand all of the details before selling your home. Contact your San Diego Realtor, Glen Henderson today if you have any additional questions regarding this article or in general about selling your home. You can also visit www.MyPremierHomes.com and search all San Diego homes for sale at www.GreaterSanDiegoAreaHomes.com

Stunning Views from this Point Loma Home for Sale! Set atop a quiet street with stunning sit down panoramic views spanning the downtown skyline to the tip of Pt Loma, this spacious private home is an incredible opportunity for either turn-key living or a total transformation! The updated gourmet kitchen is ideally positioned at the heart of the living space, adjoining a breakfast area, den, & opening up to the outdoor entertaining space. Spacious bedrooms, custom upgrades, quality built-ins, plus outstanding natural light throughout. Homes for Sale in Point Loma Homes for Sale in Point Loma Views spanning from the Downtown Skyline to the tip of Point Loma Homes for Sale in Point Loma Priced at $1,595,000 – This Point Loma Home for Sale features 4 bedrooms, 3 baths, and nearly 2,560 sqft of living space.  Located at  3126 Russell Street, San Diego (Point Loma) CA 92106   Contact your Point Loma Realtor, Glen Henderson today to set up a time to tour this amazing home! If you are searching for Homes for Sale in Point Loma, make sure to visit our site www.greatersandiegoareahomes.com or www.MyPointLoma.com

2 Bedroom Coronado Shores Condo for Sale in Cabrillo Tower Coronado Shores Condos for Sale One of the Premier oceanfront condos in the prestigious Cabrillo Tower of the Coronado Shores Condo Complex. Unobstructed views include Point Loma Sunsets and all of Coronado Beach including North Island Naval Run. Coronado Shores Condos for Sale This stunning condo was remodeled in 2016 with new windows, electric blinds and luxury materials throughout. The home is tastefully furnished and is ready for a new owner who only wants the best in Coronado living. You can View all Condos for Sale at the Coronado Shores condo complex at: http://www.greatersandiegoareahomes.com/search/quick/Condos-for-Sale-In-Coronado-Shores Contact Your Coronado Realtor, Glen Henderson for more information about this home or others. If you are searching for Condos for Sale in Coronado Shores, make sure to visit our site  www.greatersandiegoareahomes.com

Homes for Sale in Coronado – Search all homes for Sale Coronado Coastal Living at its finest! Beautiful custom-built Country Club residence with open, flowing floor plan complete with beautiful hardwood floors, high ceilings and an abundance of natural light. Homes for Sale in Coronado – Search all homes for Sale Coronado Finished in 2012, this 4 bedroom, 4.5 bath home (plus office) Coronado home for sale will impress you at entry. From the two story foyer to the spacious, low maintenance backyard, to the gourmet kitchen featuring marble countertops & WOLF appliances – this home has it all. Ideally set for a full-time residence or vacation home. You can View all Coronado Homes for Sale at:  http://www.greatersandiegoareahomes.com/search/quick/Homes-for-Sale-in-Coronado   Contact Your Coronado Realtor, Glen Henderson for more information about this home or others. If you are searching for Homes for Sale in Coronado, make sure to visit our site  www.greatersandiegoareahomes.com

Stunning Home for Sale in Steel Canyon Estates 13398 Devon Drive, Jamul CA 91935 Stunning Home for Sale in Steele Canyon Estates! 13398 Devon Drive Jamul, CA 91935. If you have been searching for a home for sale on Steele Canyon Golf Course, you do not want to miss this home! http://www.greatersandiegoareahomes.com/listing/detail/65758180/CA/Jamul/13398_Devon_Dr Pristine property within the exceptional Steele Canyon Estates community best known for their 27-hole championship golf course. The property is introduced with an expansive driveway leading to a 3 car garage. Behind the custom-made front door is a gorgeous entryway with a luxe spiral staircase, and ample natural light. Enjoy entertaining from a gourmet kitchen open to a dining area, and a grand living space. There’s plenty of room for a large gathering with a separate formal room with a fireplace and custom-designed bar area with built-in shelving. The first floor includes a master suite with an office nook and lovely master bathroom with a jetted bathtub and walk-in closet. A large theater loft is situated on the second floor with double doors opening to an expansive deck perched above Vineyard hole number 9 and Canyon hole number 1. A perfect place to celebrate 4th of July fireworks and daily sunsets. The backyard offers a below ground jacuzzi spa with a relaxing waterfall and sweeping golf course and mountain views. With several upgrades throughout and upscale amenities steps away, this property makes for the perfect home. Search all San Diego Homes for Sale at http://www.greatersandiegoareahomes.com

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