Wednesday, April 27, 2016
Monday, April 18, 2016
Real estate agents that sell houses in La Jolla, Pacific Beach, Point Loma and Ocean Beach say that now it is a seller's market. It is a great time to sell because many buyers are looking for a house and there aren’t that many houses listed.
“If a house is market-ready, clean and neat and has a good location, it sells fast. Many families don’t want to renovate a lot before they move in, so they buy a house that is ready to move in,” says real estate agent Michelle Serafina.
Agents Tony Franco and Lionel Silva note that the hot buying season has been early. It started already in December, although it usually is in March to June.
In 2015, the prices were at the same high level as in 2007, and now the prices have steadied. Buyers are active, but they don’t buy anything. Some sellers check what other sellers in the same area have gotten and try to get their prices higher. Agents note that buyers are smart and that they notice when a house is overpriced.
Interest rates are also quite low, so people are willing to take a loan on a house. Some people also buy houses now with cash.
“One out of 10 deals I sold, a buyer received a loan. That also saves buyers money. For many years, people invested in the stock market, and after that, they are now willing to put the money for a house or apartment,” says Franco.
Listing agent Chris Mannerino says there will be a correction in the prices at some point.
“Nobody knows how shortly markets change, because global events are usually a chain reaction. But banks don’t give out house loans so much than they used to, so some kind of bubble with loans is avoided for the most part,” he says.
Lionel and Tyler Silva say that during the last 12 months, rents have raised 20 percent or more, so families that rent want to buy a house. Meanwhile, Michelle Serafina says families are paying attention to comfort.
“They want quality of life: a house that is in good shape, large yard, space that they need and short distance to schools,” she notes.
Agents say that some homes are now sold even before listing. Lionel Silva notes it’s not always wise to sell a house that way.
“Why would you sell before every potential buyer has seen it?” he notes. “With more buyers competing, it is possible to get the price that you want, or even more.”
Friday, April 1, 2016
The cities with the fastest-growing rents in the U.S. probably are not the ones you’d expect. That’s because they’re not the most expensive cities for a renter to live in (e.g., San Francisco, New York City, Washington, DC). Instead, rents are shooting up in places that seem like bargains compared to those high-priced metropolises ($3,550 for a one-bedroom, San Francisco? Really?). But if they keep up the pace—and they probably will—these cities won’t be bargains for long.
Rents rose 2.7% across the country in March compared with a year earlier, according to Apartment List, which analyzed its own data for the report. That brought the median rent of a one-bedroom apartment to $1,150 and a two-bedroom to $1,300.
And they jumped the highest year over year in Colorado Springs, CO. Rents in the fast-growing city, about an hour away from Denver, surged 11.4%, according to the report. That brought the median rent for a one-bedroom to $790 and a two-bedroom to $1,010.
“Rents are going to continue to increase very quickly,” Andrew Woo, data science manager at Apartment List, says of the Colorado city as well as other fast-growing towns. “There are so many millennials moving there. They’re really attracted by the quality of life there and strong employment opportunities.”
Colorado Springs may have the biggest annual rent hike, but these other cities weren’t far behind:
1. Orlando, FL: 8.9%
2. Providence, RI: 8.7%
3. Tampa, FL: 8.6%
4. Vancouver, WA: 7.3%
5. Reno, NV: 7.3%
6. Salt Lake City, UT: 7.2%
7. Austin, TX: 6.7%
8. Portland, OR: 6.6%
9. Fort Wayne, IN: 6.4%
It’s gotten so nuts in Colorado Springs that a day after local real estate agent Monique Allison-Vollmer put up a listing for a rental house in a good school district, she received 15 phone calls and 30 emails.
“It’s overwhelming,” says Allison-Vollmer, at Keller Williams Partners.
She blames the housing bust for the pinch. New development stalled in the aftermath of the financial crisis, when builders struggled to secure financing. It didn’t pick up until a few years later—leaving the city without enough homes to go around now that people are flocking in.
The large military community (nearby Fort Carson and the U.S. Air Force Academy) as well as the state’s legalization of marijuana (drawing not only stoners but also those in need of its medical benefits) have also proved to be big draws, she says.
“I’ve had several [people] call me and say we’re looking for rentals in the area because of the marijuana laws,” Allison-Vollmer says.
In Orlando, the jump in prices can at least partly be attributed to a high number of foreclosures turning homeowners into renters, says Ken Anderson, a local landlord and real estate broker at ApexOne Realty.
There is also a steady influx of new residents moving into the home of Disney World, drawn to its attractions, golf courses, and year-round warm weather, he says.
Many smaller landlords, who rent out just a single unit or property, are keeping prices steady because they don’t realize what people will pay to live there, Anderson says. But savvier property managers have begun to jack them up.
Since October, Anderson has begun to raise rents by about 10% on his nearly two dozen rental homes.
“And I’ve been getting [them],” he says.
The median monthly rental price in the Florida city is $980 for a one-bedroom unit and $1,110 for a two-bedroom apartment, according to the report.
Despite the hikes, putting a roof over one’s head was nowhere near the heights of San Francisco or New York City, where a one-bedroom rents for $3,300. In nearby Jersey City, NJ, it’s $2,550. Boston, at $2,500, and the Silicon Valley city of San Jose, CA, at $2,200, rounded out the top five most expensive cities to find a one-bedroom apartment.