Home Value Update: May 2024

U.S. existing-home sales fell for the second month in a row, sliding 1.9% month-over-month and 1.9% year-over-year, according to the National Association of REALTORS® (NAR), with sales down in all four regions of the country.

Higher borrowing costs and accelerating home prices continue to weigh on demand, pushing some prospective buyers to the sidelines and causing market activity to slump ahead of summer.

  • Closed Sales increased 2.2 percent for Detached homes but decreased 0.7 percent for Attached homes.
  • Pending Sales increased 8.0 percent for Detached homes and 2.4 percent for Attached homes.
  • The Median Sales Price was up 14.3 percent to $1,200,000 for Detached homes and 20.4 percent to $825,000 for Attached homes.
  • Days on Market decreased 8.0 percent for Detached homes but increased 5.0 percent for Attached homes.
  • Supply increased 4.8 percent for Detached homes and 20.0 percent for Attached homes.

Home prices have continued to climb nationwide, despite an uptick in inventory this year. Nationally, the median existing-home price reached $407,600 as of last measure, a 5.7% increase from the same period last year and a record high for the month, according to NAR. Meanwhile, total inventory heading into May stood at 1.21 million units, a 9% increase month-over month and a 16.3% increase year-over-year, for a 3.5 month’s supply at the current sales pace.

The numbers by city:
These #’s are for Single Family Detached homes and do not include Attached Homes, aka condos and townhomes.
DOM = Days on Market
% List Price = Percentage of the original list price that the home sold for.

Carlsbad

MonthAvg
Sold $
ChgDOMChgSold HomesChgActive ListingsChg% List PriceYoY Chg
05/24$2,024,000-1%19-5%18911%10018%100.4%6.5%
04/24$2,039,0004%20-17%17120%858%100.5%13.7%
03/24$1,960,000-3%24-4%14221%795%100.1%18.3%
02/24$2,024,0001%25-14%11717%75-12%99.4%27.0%
01/24$2,005,000-0%2912%100-2%85-6%97.7%25.5%
12/23$2,013,00012%26-4%102-20%90-10%96.9%24.0%
11/23$1,795,0001%2723%128-15%1004%97.2%13.1%
10/23$1,778,0001%2216%151-19%96-5%98.3%10.2%
09/23$1,759,000-3%1927%186-3%101-3%98.5%3.3%
08/23$1,815,000-2%157%1917%1041%99.6%0.7%
07/23$1,861,000-3%140%17915%1036%100.0%2.2%
06/23$1,920,0001%14-26%156-3%9723%100.3%3.0%
05/23$1,900,0006%19-17%16115%7922%100.0%2.4%
04/23$1,793,0008%23-26%1409%655%98.4%-0.8%
03/23$1,657,0004%310%12835%62-2%96.9%0.8%
02/23$1,594,000-0%3111%95-17%63-19%95.5%5.1%
01/23$1,598,000-2%280%114-10%78-21%95.9%4.1%
12/22$1,623,0002%28-7%127-19%99-14%94.4%4.9%
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Your home sale could trigger capital gains taxes. Here’s how to calculate your bill

  • More home sellers now owe capital gains taxes after selling their primary residence, but it is possible to reduce the bill.
  • There are no taxes on the first $250,000 of profit if you are single, or $500,000 for married couples filing jointly, assuming you meet IRS rules.
  • You can lower profits above those thresholds by adding to your home’s “basis,” or original purchase price, with closing costs and eligible improvements.

There are strict IRS rules to qualify for the $250,000 or $500,000 exemptions. Any profit above those limits is subject to capital gains taxes, levied at 0%, 15% or 20%, based on your earnings.

“It is important to track your cost basis of the home,” which is your original purchase price plus closing costs from the purchase, according to Thomas Scanlon, a certified financial planner at Raymond James in Manchester, Connecticut.

You can reduce your home sale profit by adding often-forgotten costs and fees to your basis, which minimizes your capital gains tax liability.

For example, you can start by tacking on fees and closing costs from the purchase and sale of the home, according to the IRS. These may include:

  • Title fees
  • Charges for utility installation
  • Legal and recording fees
  • Surveys
  • Transfer taxes
  • Title insurance
  • Balances owed by the seller

These could be small amounts individually but have a significant effect on the basis when tallied.

The average closing cost nationwide is $4,243, according to a report from Assurance, but fees vary widely. In the priciest state, New York, the average is $8,039, while California is a close second at $8,028.

“You also get credit for the expenses for the sale of the property,” added Scanlon, who is also a certified public accountant. That includes your real estate commissions and closing costs.

However, there are some fees and closing costs you cannot add to your basis, such as home insurance premiums or rent or utilities paid before your closing date, according to the IRS.

Similarly, loan charges such as points, mortgage insurance premiums, the cost to pull your credit report or appraisals required by your lender will not count.

Original Article

Why Be Pre-Approved For a Home Loan?

Real estate experts tell first-time home buyers that it’s critical to apply for a loan before shopping for a home, and it’s true; this is an essential first step.

But do you know that it’s far better to be Pre-Approved for a loan than to be Pre-Qualified?

There are advantages to gaining Pre-Approved. When the lender hands a borrower a Pre-Approved letter, it means the borrower can:

Save Time by Looking at the Right Homes
When searching for homes you can set the parameters to more tightly encompass the selection of homes that you are qualified to buy. This way, you’ll save time by checking out homes you can actually afford to buy instead of falling in love with pie in the sky.

Spend More Time Examining the Right Homes
By decreasing the inventory of homes to those that fit your parameters, you can allot more time to thinking about all the little nuances each home has to offer. Lots of home buyers never move past the price point when sorting out their preferences, but now you can devote your energies to looking at the little things that matter to you most such as whether your SUV will pass through the overhead space in the garage or smash into the microbeam.

Gain Confidence & Avoid Disillusionment
Now when you find that perfect home, nobody can take it away from you by telling you that you do not qualify to buy it.

You can minimize anxiety and remove last-minute loan surprises that could disqualify you.
You’ll sleep better at night knowing that the home you selected is yours.

Increase Bargaining & Negotiating Power
In today’s market, sellers are increasingly demanding Pre-Approval letters from buyers and by having yours done up front you can get your offer in quickly.

Enjoy a Faster Closing Period
Because there is no window period while your loan application is processed, the lender can speed up the entire processing procedure. Appraisals can be ordered immediately. It’s possible to shorten a 30-day closing to two or three weeks, which comes in handy if a seller needs to quickly move and can’t decide which offer to accept. Yours will move to the front if you can accomplish the seller’s need to quickly close.

Because mortgage approval is generally the longest contingency to satisfy in a purchase contract, it is to your advantage to obtain a Pre-Approval letter as soon as you’re ready to begin your search. Lenders will render a decision based on your complete loan application, employment verification and data from all three credit reports.

Being pre-Approved is a pretty easy process and only takes 60 minutes or so of your time. I work with a lender who can complete a variety of loans, depending on your qualifications. Please call me for more info.

Help Me Find a Home

Home Value Update April 2024

U.S. existing-home sales recently fell from a one-year high, dropping 4.3% month-over-month to a seasonally adjusted annual rate of 4.19 million, according to the National Association of REALTORS® (NAR), as higher interest rates and rising sales prices continue to keep some prospective buyers on the sidelines. Average 30-year mortgage rates have topped 7% in recent weeks, while the median existing-home sales price hit $393,500 as of last measure, a 4.8% increase from the previous month, according to NAR.

  • Closed Sales increased 12.8 percent for Detached homes and 1.5 percent for Attached homes.
  • Pending Sales increased 2.4 percent for Detached homes and 1.2 percent for Attached homes.
  • The Median Sales Price was up 21.2 percent to $1,260,000 for Detached homes and 5.0 percent to $737,500 for Attached homes.
  • Days on Market decreased 25.0 percent for Detached homes and 19.2 percent for Attached homes.
  • Supply increased 11.1 percent for Detached homes and 28.6 percent for Attached homes.

Warmer temperatures appear to have helped bring some sellers back to the market, providing additional options to home shoppers during the spring buying season. Total inventory was up 4.7% month-over-month and 14.4% year-over-year, for a 3.2 months’ supply at the current sales pace, according to NAR. Nevertheless, demand continues to outpace supply and properties are selling quickly, with the typical home spending 33 days on market nationwide, down from 38 days the month before.

The numbers by city:
These #’s are for Single Family Detached homes and do not include Attached Homes, aka condos and townhomes.
DOM = Days on Market
% List Price = Percentage of the original list price that the home sold for.

Carlsbad

MonthAvg
Sold $
ChgDOMChgSold HomesChgActive ListingsChg% List PriceYoY Chg
04/24$2,039,0004%20-17%17120%858%100.5%13.7%
03/24$1,960,000-3%24-4%14221%795%100.1%18.3%
02/24$2,024,0001%25-14%11717%75-12%99.4%27.0%
01/24$2,005,000-0%2912%100-2%85-6%97.7%25.5%
12/23$2,013,00012%26-4%102-20%90-10%96.9%24.0%
11/23$1,795,0001%2723%128-15%1004%97.2%13.1%
10/23$1,778,0001%2216%151-19%96-5%98.3%10.2%
09/23$1,759,000-3%1927%186-3%101-3%98.5%3.3%
08/23$1,815,000-2%157%1917%1041%99.6%0.7%
07/23$1,861,000-3%140%17915%1036%100.0%2.2%
06/23$1,920,0001%14-26%156-3%9723%100.3%3.0%
05/23$1,900,0006%19-17%16115%7922%100.0%2.4%
04/23$1,793,0008%23-26%1409%655%98.4%-0.8%
03/23$1,657,0004%310%12835%62-2%96.9%0.8%
02/23$1,594,000-0%3111%95-17%63-19%95.5%5.1%
01/23$1,598,000-2%280%114-10%78-21%95.9%4.1%
12/22$1,623,0002%28-7%127-19%99-14%94.4%4.9%
11/22$1,587,000-2%300%156-4%115-9%94.0%3.1%
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Who is responsible for boundary fences and trees?

A: Most properties have three property lines setting the common boundaries with adjacent properties owned by others. A fourth property line usually sets the frontage on a public right of way, such as a street.

The location of the common property lines is typically represented by common boundary improvements such as shrubbery or trees. When setting up, maintaining or removing common boundary improvements, the
adjacent property owners’ rights depend on the type of improvement.

Common boundary improvements, other than trees, located on a property line between adjacent properties are called party walls. Types of party walls
include:

• boundary fences;
• driveways; and
• ditches.

Owners of adjoining properties are presumed to benefit equally from boundary fences. Under this legal presumption, all adjoining owners are equally responsible for constructing, maintaining and replacing
boundary fences.

The responsibility for constructing, maintaining or replacing boundary fences may be altered or removed only by:

• a written agreement between all affected owners; or
• an adjoining owner’s judicial petition to remove or alter their responsibility.

When trees mark a common boundary, each tree’s ownership is determined by the location of its trunk. Solely owned trees belong to the owner of the property on which the entire trunk is growing. Trees growing on government-owned parcels, such as a right of way for streets and sidewalks, belong to the local government, and thus the government is responsible for maintenance.

However, shrubbery or trees whose trunks stand partly on the land of two adjacent property owners belong to both adjacent owners. These trees are called line trees or common boundary trees.

Similar to maintaining a boundary fence, adjacent owners who own line trees are jointly responsible for maintaining the trees and, unless they agree to an alternate arrangement, share equal costs. To avoid disputes, adjacent property owners need to consider entering into an agreement detailing how they will handle the maintenance of boundary trees.

Thinking about selling your home or you just want an easy way to keep tabs on your home’s value?

Hi folks,
If you are going to be selling your home in the near future or are just curious about its value in today’s market, give me a call or use the button below. I will email you a comprehensive market analysis of your home. There is no obligation on your part and it is totally free.

My phone number is 760.476.9560.

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Not ready to move yet but want to keep an eye on your homes value, I have a monthly update that is customized to your home and neighborhood. Click the link below to see what is included in the report and to sign up:

Monthly Update

Home Value Update March 2024

U.S. existing-home sales improved for the second month in a row, jumping 9.5% to a seasonally adjusted annual rate of 4.38 million units, exceeding economists’ expectations and marking the largest monthly gain in a year, according to the National Association of REALTORS®(NAR). The rebound in home sales comes amid fluctuating mortgage rates and elevated sales prices, indicating there is plenty of buyer demand heading into the spring selling season.

  • Closed Sales decreased 18.3 percent for Detached homes and 7.3 percent for Attached homes.
  • Pending Sales increased 4.0 percent for Detached homes but decreased 8.5 percent for Attached homes.
  • The Median Sales Price was up 18.0 percent to $1,180,351 for Detached homes and 7.9 percent to $749,995 for Attached homes.
  • Days on Market decreased 30.6 percent for Detached homes and 26.7 percent for Attached homes.
  • Supply decreased 11.1 percent for Detached homes but increased 7.7 percent for Attached homes.

The recent surge in home sales was likely due to a dip in mortgage rates in December and an increase in housing supply nationwide. According to NAR, total inventory grew 5.9% month-over-month and 10.3% year-over-year to 1.07 million units, for a 2.9 months’ supply at the current sales pace. Buyer demand remains robust, and the limited supply of inventory helped push the median existing-home sales price up 5.7% year-over-year to $384,500, the eighth consecutive month of annual price increases.

The Numbers by City:

These #’s are for Single Family Detached homes and do not include Attached Homes, aka condos and townhomes.
DOM = Days on Market
% List Price = Percentage of the original list price that the home sold for.

Carlsbad

MonthAvg
Sold $
ChgDOMChgSold HomesChgActive ListingsChg% List PriceYoY Chg
03/24$1,960,000-3%24-4%14221%795%100.1%18.3%
02/24$2,024,0001%25-14%11717%75-12%99.4%27.0%
01/24$2,005,000-0%2912%100-2%85-6%97.7%25.5%
12/23$2,013,00012%26-4%102-20%90-10%96.9%24.0%
11/23$1,795,0001%2723%128-15%1004%97.2%13.1%
10/23$1,778,0001%2216%151-19%96-5%98.3%10.2%
09/23$1,759,000-3%1927%186-3%101-3%98.5%3.3%
08/23$1,815,000-2%157%1917%1041%99.6%0.7%
07/23$1,861,000-3%140%17915%1036%100.0%2.2%
06/23$1,920,0001%14-26%156-3%9723%100.3%3.0%
05/23$1,900,0006%19-17%16115%7922%100.0%2.4%
04/23$1,793,0008%23-26%1409%655%98.4%-0.8%
03/23$1,657,0004%310%12835%62-2%96.9%0.8%
02/23$1,594,000-0%3111%95-17%63-19%95.5%5.1%
01/23$1,598,000-2%280%114-10%78-21%95.9%4.1%
12/22$1,623,0002%28-7%127-19%99-14%94.4%4.9%
11/22$1,587,000-2%300%156-4%115-9%94.0%3.1%
10/22$1,614,000-5%3025%162-14%127-16%94.9%5.0%
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The Correct Price is the First Priority in Selling a Home  

Price is important, and it needs to be right from the first day.

When a home first comes on the market, it gets a lot of attention. If it’s priced right, it will get showings. But if it’s overpriced, buyers’ agents will skip over it – and may not even notice if the price is reduced later.

And, even if a buyer is found at a seriously inflated price, the sale could fail as a result of an appraisal.

That’s why it’s more important than ever to price a home right from the very start. As a listing agent, my job is to give you the most up to date information and recommend a price that will sell in today’s market – even if it isn’t what you want to hear.

If you’re ready to see what your home is worth in today’s market, get in touch. I’ll be happy to prepare a no-obligation market analysis to help you in making a decision about selling.

    If you have questions on this property or would like to see it let me know.
    Call me directly at 760.476.9560

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