My 5 Most Asked San Diego Real Estate Questions in February 2021
(Please note - This video was created prior to 2021 - but, these loan amounts are updated for the higher loan limits of 2021)
In this video I want to break down the top 5 questions I have been getting about the San Diego real estate and mortgage markets as we head into December. (As I type this in February these questions are more important than ever....)
As always this is coming from my perspective, as I see it on the ground for clients, looking at mortgage applications, purchase loans, refinance loans, and buying homes. You might agree, disagree, or a little of both. That's okay, we all come from different perspectives depending on where we are coming from in our lives.
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Without further ado, let's jump into the 5 most asked questions now...
Question #1 - Where Does the San Diego Real Estate/Mortgage Market Stand Now?
As outlined in the latest San Diego real estate stats - we are seeing record low inventories. From a high of over 26,000 properties in San Diego in August 2005 - to a low of 4500 at the end of July.
We have access to all major loan programs including: 103% financing for those needing down payment assistance, 100% financing for past veterans and those currently serving, 100% financing for those that want to live in the countryside of San Diego, as low as 3% down for a conventional loan up to a $548,250 loan amount (and as low as 5% down up to a $753,250 loan amount), as low as 3.5% down for an FHA loan up to a $753,250 loan amount, and as low as 5%-20% down for a jumbo loan above that $753,250 loan amount.
We have record low interest rates. As outlined in my San Diego mortgage rate alert - we are seeing no/low down interest rates for the programs above starting in the low and mid 2's. As mentioned in a previous video detailing why I am seeing 2021 drastically different than 2007 these rates are down from around 5.82% on a 30 year fixed from August of 2006. Which means homes now are more affordable, in monthly mortgage terms, than 2007.
Properties are getting picked up and placed into escrow within 2 weekend or less - many within just a single weekend or a few days - I do *not* see this trend stopping with everything in play.
Question #2 - Are All the Same Mortgage Loan Types Available Today As Before Covid 19 Started?
Yes, all loan programs, as mentioned above, are available today, like they were prior to Covid 19. While there were some delays and hiccups when Covid first started, especially with Non QM loans (like Jumbo and bank statement programs) those have returned as of now.
Prior to covid we had more lender rebate loans (where a higher rate pays closing costs) and with today's lower rates we are seeing more loans where borrower instead pays these costs out of pocket.
I could definently see the mortgage markets tightening up again, especially for down payment assistance loans, jumbo loans, and any bank statement loans - so, if you are seeking those I urge you to act sooner rather than later.
Question #3 - How Do You See the Elections Playing Into the Real Estate Markets?
As we get closer to the election time of Tuesday November 3, with more mail in ballots than ever before, already talk it will be contested no matter who wins, and probable courts deciding, I see the elections taking up the rest of 2020, if not longer.
With that - I see even lower housing inventory as fewer home owners will be selling, the same or lower interest rates, access to all major loan programs, and prices staying the same or rising because of these.
Question #4 - How Do You See Unemployment Playing into Everything?
There's no doubt we have had record high unemployment rates in US history, California history, and San Diego history - when you factor it the shut downs, everyone self employed making drastically less, those already unemployed not counting on the numbers, and many other factors - it makes what happened in 2007-2012 - and the great depression years of 1929 to 1933 look like a party.
But, that has been countered by many things that haven't happened before, such as: student loans being deferred, the ability to not make payments on credit cards, car loans, personal loans, or home loans.
Getting lump sum payouts if you make under a specific amount of money per year - plus, unemployment and extended unemployment benefits like we have never seen, that were just extended this past weekend.
If you haven't made rent payments - you can't get evicted. If you haven't made a mortgage payment - you cant get foreclosed on.
Question #5 - If You Were Me - What Would You Do? Buy Now or Wait?
This is always a personal decision and much more goes into it than just a few questions. But, if you are renting now, and need help with a down payment - I definently suggest you buy now as down payment assistance programs come and go at anytime.
If you need to go with a no/low down program like a VA or USDA loan for no down - buy. If you need to put down 3% or 3.5% or 5% - buy now with the lower rates.
In a previous video I detailed how buying a home in 2020 is more affordable, with higher prices but lower rates, than in 2005, over 15 years ago.
If you are living in a larger city, like LA, or San Francisco, or Fresno, or Phoenix, or Portland, or Seattle, or any other large city, are seeing social unrest, unsure what might happen - I would say get out sooner rather than later.
But, if you are a home owner, and you have lost your job, and can stay in your home, without making mortgage payments, might be collecting unemployment, or self employed and collecting nothing at all, might be best to stay put.
Unless you want to sell your place in San Diego and move to the outskirts like Borrego Springs, or Julian, or Palomar Mountain, or Campo - or, even outside California like Idaho or Utah, as many more are.
What do you think?
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