Home Sales Rise Heading into Summer; Median Prices Stay Level in May, according to the Greater San Diego Association of REALTORS®

SAN DIEGO (June 8, 2023) – Sales of existing homes returned to positive territory in May after aslower April, according to the Greater San Diego Association of REALTORS® (SDAR) which compilesdata on the current home sale market through the San Diego Multiple Listing Service (SDMLS).Single-family home sales were up more than 13 percent in May, compared to April, and sales ofattached properties (condominiums) were up nearly 10 percent. However, in perspective, sales of allexisting properties are down 28 percent compared to 2022. The sparce inventory of homes on the market has kept prices from slipping too dramatically. Medianprices in May were virtually unchanged month-over-month. The price of a single-family home lastmonth was $955,000, about 2.6 percent lower than May of 2022. The median price of condos was$640,000, which is 4.5 percent lower than a year ago. “The brief rise in home sales should not mask the continuation of a troubling trend of a decrease ofsingle-family home sales compared to previous years,” notes Frank Powell, SDAR President. “Thislong-term deterioration is due to countless issues, including a drastic lack of inventory and lack ofbuyer interest due to recent economic concerns, such as inflation, and increased interest rates.” Powell adds, “As REALTORS®, it is urgent that we continue to stand up against the regressive policiesthat are directly impacting the housing market - including restricting development on available countylands, new penalties on rental housing providers, and a proposed new transfer tax on homesales. These measures dissuade buyers and sellers from entering the market and hurt the ability forfamilies and neighborhoods that have been historically marginalized to have the potential of creatinggenerational wealth from home ownership.” In May, the zip codes in San Diego County with the most single-family home sales were:• 92028 (Fallbrook) with 54• 92127 (Rancho Bernardo West) with 42• 92071 (Santee) with 38• 92024 (Encinitas) with 34• 92027 (Escondido East) and 92065 (Ramona), both with 33 The most expensive single-family property sold in May in San Diego County was a 5,500-square-footCalumet Avenue home in La Jolla. Spanning 100 feet of beachfront above a shallow sea bluff andsteps to the beach, it has 5 bedrooms, 4 full and 2 half bathrooms, and a living room designed forgrand-scale entertaining. The property sold on May 28 for $17.4 million. SDAR’s housing statistics are compiled monthly from the Multiple Listing Service (MLS). Click here fora detailed look at the numbers. The following is a summary of the latest results: TOTAL SOLD LISTINGS Comparing May 2023 to April 2023 (month over month)Single-Family: 13.5 percent INCREASEMay 2023 = 1,370April 2023 = 1,207 Condos/Townhomes: 9.7 percent INCREASEMay 2023 = 780April 2023 = 711 TOTAL SOLD LISTINGS Comparing May 2023 to May 2022 (year over year)Single-Family: 27.9 percent DECREASEMay 2023 = 1,370May 2022 = 1,899 Condos/Townhomes: 27.8percent DECREASEMay 2023 = 780May 2022 = 1,081 MEDIAN SALES PRICE Comparing May 2023 to April 2023 (month over month)Single-Family: 0.5 percent INCREASEMay 2023 = $955,000April 2023 = $950,200 Condos/Townhomes: 0.4 percent INCREASEMay 2023 = $640,000April 2023 = $625,000 MEDIAN SALES PRICE Comparing May 2023 to May 2022 (year over year)Single-Family: 2.6 percent DECREASEMay 2023 = $955,000May 2022 = $980,122 Condos/Townhomes: 4.5 percent DECREASEMay 2023 = $640,000May 2022 = $670,000 The Greater San Diego Association of REALTORS® is the largest trade association in San Diego County and one of the largest local REALTOR® associations in California. We help our members, who adhere to a code of ethics and professional standards, sell more homes. We also help people realize the dream of home ownership, and we are dedicated to protecting private property rights. You can follow SDAR on Facebook, Twitter, Instagramand LinkedIn.

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Transform Your Space on a Budget: Weekend Home Projects Under $200

As homeowners, who doesn’t love the idea of improving our living spaces, especially when you can do it for under a couple hundred dollars? The great news is that there are several do-it-yourself weekend projects that can quickly transform your home in a weekend, and all without draining your wallet. Whether you live in a townhouse in Washington DC, or a cabin in Lexington, KY, we’ll explore nine affordable weekend home projects that you can complete quickly, and all for under $200. 1. Create a statement wall with wallpaper Wallpaper is an excellent way to add personality and style to any room. Opt for a bold pattern or  unique texture to create a statement wall in your living room, bedroom, or home office that’s sure to impress. Many home improvement stores offer affordable wallpaper options that are easy to apply, and you can quickly cover a standard-sized wall for under $100. The transformation will be immediate and remarkable, giving your space a unique touch that reflects your personal style. 2. Install energy-efficient LED lighting Upgrade your lighting fixtures with energy-efficient LED bulbs. LED bulbs consume less electricity and last longer than traditional incandescent bulbs and come in various color temperatures, allowing you to customize the ambiance of your home. With LED bulbs priced between $3 and $10 each, you can easily change the feel of your entire home for under $100. 3. Enhance your bathroom with new fixtures Give your bathroom a mini-makeover by replacing outdated fixtures such as faucets, showerheads, and towel racks. New fixtures can instantly update the look and feel of your bathroom from dated to luxury. Look for stylish and affordable options at home improvement stores or online retailers. With a budget of $200, you can find quality fixtures in many different finishes that will add a t 4. Create an outdoor oasis with potted plants Transform your outdoor space, or at least a part of it, into a serene oasis by adding potted plants and flowers. Choose among a variety of plant species that suit your climate and personal preferences in shape, size, and color. Colorful blooms and foliage can create visual interest and instantly enhance your curb appeal. With a budget of $200, you can easily shop for plants at local nurseries or take advantage of online deals and discounts and curate a beautiful collection of potted plants that will bring life and vibrancy to your outdoor area. This could be the perfect weekend project to complete this summer.  5. Refresh your walls with paint One of the most cost-effective ways to refresh your home’s interior is by painting the walls. A fresh coat of paint can instantly revive a room and create a new and inviting atmosphere. Choose a color that complements your existing furniture and décor. A gallon of paint typically costs between $30 and $60, and with proper preparation and a steady hand, you can achieve professional-looking results. Here are some popular colors this year to “swatch” out for. 6. Create a gallery wall Convert a plain wall into a captivating focal point by creating a gallery wall, which is a compilation of your favorite photographs, artwork, or prints arranged on a wall in a visually appealing way. Experiment with different frame styles and sizes to add depth and then add visual interest by placing your pieces on the wall in a way that allows your eyes to flow from one piece to the next. It may take some extra effort to get it just right, but you’ll be glad you spent the extra time. With affordable frames and prints available online or at local stores, you can create a stunning gallery wall within your budget. 7. Install a smart thermostat Upgrade your home’s heating and cooling system with a smart thermostat. These devices not only provide convenience but also help you save energy and reduce utility costs. Many smart thermostats are priced under $200, thought they can certainly go up from there, and offer features such as programmable schedules, remote control via smartphone apps, and energy usage insights. This may not necessarily change the look of you home by much, but it will have a big impact on keeping your home at a comfortable temperature every day. 8. Build a vertical herb garden Utilize your outdoor space or even a sunny corner indoors to create a vertical herb garden. Build a simple wooden frame or repurpose a hanging shoe organizer to hold small pots or planters. Choose herbs like basil, mint, parsley, or rosemary that you frequently use in cooking. Not only will this DIY project provide fresh herbs for your culinary endeavors, but it will also add a touch of greenery to your home. Embarking on DIY weekend projects allows you to unleash your creativity and make meaningful improvements to your living spaces that better reflects your personality and interests. The nine household DIY projects discussed above offer practical and budget-friendly solutions to upgrade your home, but there are so many more worth exploring. So, grab your toolkit, unleash your inner DIY enthusiast, and start transforming your home today. The post Transform Your Space on a Budget: Weekend Home Projects Under $200 appeared first on Redfin | Real Estate Tips for Home Buying, Selling & More.

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What is PITI and How Does it Affect Your Mortgage?

The mortgage industry has its own language, and in order to understand it, homebuyers need to learn different acronyms and jargon when shopping for a home loan. A typical home loan payment or mortgage payment involves a single payment, which is the sum of four different line items: the loan principal, interest, taxes, and insurance – also referred to as PITI.  Before you set your sights on a home, know if you can afford the costs by learning what PITI is and how it impacts your monthly mortgage payments. What does PITI stand for?  PITI stands for the loan principal, interest amount, taxes, and insurance on your home – the four major elements that make up mortgage payments.  Homebuyers often underestimate the true cost of homeownership by failing to take into account property taxes and homeowners insurance. It’s crucial that you budget for all the components of your mortgage payment before purchasing a home. Get pre-approved and secure your dream home Work with a lender to find the right loan for the home you love. Get pre-approved   What is PITI? The four components Now that we know what PITI stands for, let’s break down each of the four components and analyze the individual elements that make up your monthly mortgage payment. 1) Principal The mortgage principal is the loan amount before any interest is calculated. This is the base amount of your home purchase price minus any down payment you make.  We’ll use a hypothetical home purchase for reference; if you buy a home for $450,000 with a 20% down payment ($90,000), your mortgage principal amount will be $360,000. Over your mortgage term, you pay substantially more than the original $360,000 to the lender in the form of loan interest. The principal is the base amount used for loan calculations to determine if they will extend a loan to you.  2) Interest Your mortgage interest rate is what you pay the lender as part of your monthly mortgage payment to borrow the funds to purchase your home. The mortgage lender calculates interest as a percentage of your outstanding principal. If your principal loan is for $360,000 and your lender charges you an interest rate of 6%, this means that you will pay $21,600 (6% of $360,000) in interest for the first year of your mortgage. Your mortgage interest and principal payments are itemized on a mortgage amortization table. The amortization charts show how much each mortgage payment pays down your principal and interest. When you first start making mortgage payments, most of your monthly payment goes toward interest instead of the principal.  This split shifts over time, and eventually, the amount you pay toward interest decreases, and more is paid toward the principal. As the principal amount of your loan decreases, you start to earn equity on your home. Equity is the portion of your home that you own outright. Your interest decreases as well, as you only pay interest on the principal amount you have not paid off. For our example, you will pay $21,600 in interest over the first year of your $360,000 mortgage. By the time you have paid down $260,000 of that principal, your principal amount will be $100,000; at that point, you’ll pay interest of $6,000 annually (6% of $100,000). 3) Taxes When you own your house, you pay taxes on the property to your local government to maintain roads, emergency services, police, firefighters, schools, and more. Buyers often overlook property taxes when estimating homeownership costs, but it is important to consider this recurring annual cost when you’re searching for your new home. Property taxes vary by location and are the most expensive tax homeowners pay. Taxes may be higher in a newer neighborhood or an area coveted by many homeowners. They are often less if you live just outside coveted neighborhoods and in rural areas.  The amount of property tax you pay is determined by the local property tax rate and the value of your home. A general guideline to estimate property taxes is to allocate approximately $1 for every $1,000 of your home’s value, paid on a monthly basis.For example, if your home is worth $450,000, you can expect to pay around $450 per month in property taxes or $5,400 per year.  As part of the home purchase process, most states require that you get an unbiased, official appraisal to estimate your taxes accurately. Your lender usually orders the home appraisal and includes the cost in their list of closing costs. After you close on your home purchase, keep in mind that your local government will regularly reassess properties every few years for tax purposes, which could lead to a change in your tax bill. 4) Insurance The “insurance” component of PITI refers to homeowner’s insurance and, when it’s required, private mortgage insurance (PMI). Let’s discuss each of these concepts in more detail.  Private mortgage insurance (PMI) Your PMI rates depend on how much of a down payment you made and your credit score. If you’re putting down less than 20% on a conventional loan, you’re required to pay for private mortgage insurance (PMI), which protects the lender if you default on your mortgage payments. Once you build at least 20% equity in your home — and your loan-to-value (LTV) ratio is 80% or less — you can get rid of PMI. For FHA loans, a similar mortgage insurance premium has to be paid throughout the life of the loan on any FHA-backed mortgage loan. If your PMI comes in at a rate of 1%, here’s how you’d calculate a mortgage of $360,000: $360,000 x 1% = $3,600 per year; $3,600 ÷ 12 monthly payments = $300 per month. Homeowners insurance Most mortgage lenders require a homebuyer to purchase and maintain homeowners insurance over the entire loan term. Homeowners insurance covers you and the lender if something catastrophic happens to the home, and you need to rebuild or move. Most homeowners insurance policies cover your home in the event of a break-in, fire, or storm damage.  Most insurance companies require you to buy additional coverage for damage from earthquakes or flooding. You can also purchase insurance riders to cover items of significant value, such as an expensive musical instrument, art, or jewelry. If you buy a condominium, you’ll also pay a homeowners association fee. Your lender may consider your HOA fee your insurance as the HOA carries its own insurance that covers the building, and thus you may not need another policy.  Property insurance amounts can vary among different insurances. It’s wise to shop around after the seller accepts your purchase contract, and before you close on the property, to get a good idea of reasonable rates. Insurance companies consider these factors when calculating an insurance premium: The home’s value Whether you live in an urban area or a rural area Whether you live in an area with high climate risk How close your home is near a fire department or fire hydrant  Whether you have an insurance risk on your property, i.e., something could injure children, such as a trampoline, pool, or specific dog breed  How many insurance claims you make each year for other types of insurance When estimating your homeowner’s insurance costs, it’s helpful to keep a general rule of thumb in mind. On average, you can anticipate paying approximately $3.50 per every $1,000 of your home’s value in annual homeowner’s insurance premiums. For instance, if your property is valued at $450,000, you can expect to pay around $1,575 per year for insurance coverage, which translates to roughly $131 per month. How to calculate PITI Before you start your search for a house, it’s a good idea to calculate PITI to determine your price range and help you find a mortgage option that will fit your budget. The exercise will make you a more rational home buyer and keep you from falling in love with a house outside your price range.  The simplest way to calculate PITI is by using an online monthly mortgage calculator. Redfin’s mortgage calculator includes the principal and interest, taxes, insurance, HOA, and PMI. You can also add in your location for more accurate estimates. PITI and the 28% Rule Your PITI gives you a rough idea of what purchase price range you can afford. One way to identify a purchase price within manageable limits is to use the housing expense ratio. To ensure your ongoing ability to make your mortgage payments, home finance experts typically recommend that your housing costs should be equal to or below 28% of your monthly household budget. If your PITI is more than 28% of your monthly budget, your lender may require you to pay for additional mortgage insurance. In our example, you can estimate your housing expense ratio by dividing your PITI by your total monthly income. If your household income is $10,000 a month, your PITI will make up about 28% of your monthly budget, well within recommended guidelines. ($2,800/$10,000 = 28%.) Keep in mind that PITI may just account for just some of your monthly expenses when owning a home. Depending on where you live and how you are paying for your home, there may be additional costs to consider. Additionally, the components that make up PITI are broadly defined here; there is often more complexity that goes into each part of PITI. How PITI impacts loan approval During the home buying process, it can be easy to trick yourself into thinking you can afford a more expensive home if you only look at your mortgage’s principal and interest cost without considering the total PITI with taxes and insurance.  For instance, let’s take a 30-year mortgage on a $450,000 property, assuming a property tax rate of 1.25% ($5,625 per year) and an annual homeowners insurance premium of $3,600. In this scenario, your monthly financial commitment would go beyond just the principal and interest amount, as you would need to allocate an additional $581 to cover taxes and insurance. Understanding and accounting for these factors will provide you with a comprehensive understanding of the actual costs involved in homeownership. Here is a breakdown of the example discussed above.    Principal and Interest PITI Interest rate 7% 7% 20% down payment $90,000 $90,000 Property taxes N/A $450 Homeowners insurance N/A $131 Private mortgage insurance N/A N/A Monthly payment $1,800 $2,381 How DTI factors in The principal balance will factor into your debt-to-income (DTI) ratio. Your DTI ratio gives lenders an idea of how capable you are of managing money and the likelihood that you will consistently make your monthly payments. To determine your DTI, the lender uses your total minimum monthly debt obligation and divides it by your gross monthly income to arrive at a percentage. This calculation also includes payments on credit card accounts, auto loans, student loans, and other recurring debt payments. Lenders consider you a higher risk if your DTI ratio exceeds 43%, some lenders will allow a DTI as high as 50%.  Don’t overlook other housing costs PITI is just one fundamental concept to understand before applying for a mortgage. As you consider how much house you can afford, you’ll also need to plan for additional costs typically associated with homeownership. These include HOA or condo fees, which can range from $100 to $1,000 per month, with an average of $200 to $300. Additionally, budgeting for repairs and maintenance is crucial, with a general guideline of saving 1% to 5% of your home’s value annually. For a newer $450,000 home, this would mean setting aside $4,500 to $22,500 per year. Utility bills for electricity, water, gas, sewer, cable, trash, and internet should also be factored in, and contacting the utility company or asking the seller or neighbors can help estimate these costs. The bottom line on PITI Buying a home is very exciting, but before signing your mortgage contract, know what payment amount you can afford based on PITI and other monthly costs. The more you understand the home buying and mortgage process and the total cost of homeownership, the easier it will be to finalize your purchase decision. Your home purchase represents an important milestone in your life – avoid confusion and uncertainty by gaining a solid understanding of PITI and the cost of homeownership.  The post What is PITI and How Does it Affect Your Mortgage? appeared first on Redfin | Real Estate Tips for Home Buying, Selling & More.

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