Recession

Again, lots of talk about the recession. 

The Yield curve has inverted, if you’re not sure what that is, look it up, but over the last 50 years when the yield curve inverts it is one of the most consistent recession indicators.  That coupled with the stock market dropping 800 points in August and bouncing up and down since, has caused a lot of talk about a recession being closer than we thought.

So, what does that mean for the U.S. Housing market? 
Interestingly enough homeowners in the U.S. have over 6.3 Billion dollars in equity in their homes.  Only 4.1% of homeowners have negative equity.  Back in 2010 homeowners had 25.3% negative equity. 

So, as we think about a recession and how it relates to the housing market, we need to look at factors like this. With 6.3 billion dollars of equity in homes, homeowners aren’t going to bail out. Also, according to the Urban Institute over 37% of homes don’t even have a mortgage on them. During the last crash, people were taking equity out of their homes and buying boats and cars.  They were using their homes as an ATM machine.

Now, they are keeping their money in their homes that’s why 37% of homes are mortgage free and we have 6.3 billion in equity. Let’s see what CoreLogic thinks, they break down their anticipated increase in appreciation.  If you look at this graph, ALL states with the exception of Texas are seeing an increase in appreciation. 

According to the Home Price Expectations Survey, all the analysts are saying that we are going to see appreciation between the next two and four years depending on how far each organization makes their predictions. The reason I feel it’s important to talk about this is because with all the hype of a Recession, we need to truly know what that means about the housing market and not let the fear of what happened in the last recession control our thoughts and emotions about what we should or shouldn’t do. 

As Ali Wolf the Director of Economic Research says “As people having PTSD from the last time, they’re still afraid of buying at the wrong time.” But we need to know the differences between 2008 and now.  As Jeff Tucker, Zillow Economist states “The housing crash during the Great Recession left a lasting impression… But as we look ahead to the next recession, it’s important to recognize how unusual the conditions were that caused the last one, and what’s different about the housing market today. Rather than an abundant home, we have a shortage of new home supply.  Rather than risky borrowers taking on adjustable rate mortgages, we have buyers with sterling credit scores taking out predictable 30-year fixed-rate mortgages. 

The housing market is simply much less risky than it was 15 years ago.” 
Bottom line is that we are in a totally different time and many of the economic indicators as well as how easy it was to get a loan and the types of loans that were available back then, are totally different.  So, let’s not make this something that it isn’t. 

I just feel it’s important we know the facts, as many times the media is NOT telling us everything and they love to get those negative headlines out there because they sell more!!  Please reach out to me as I want to help be your knowledge base. 

Questions? #CallCristobal now!

4 Tips to Winterize Your Home

Winter is coming, and even though it is not as cold as other parts of the country, there is a possibility that we may get a lot of rain this year, and we need to be ready when it comes.

1. Making sure that your eaves, your gutters, and your drains are cleared out of any debris. We want to make sure that there’s no flooding and that there’s no damage that can go up into your eaves.

2. We want to caulk cracks around the property, and we want to seal windows and doors to keep the heat in and the winter out.

3. We want to make sure that you turn off your sprinklers for the winter. Right now is not a time to have the sprinkles on. We save ourselves money, especially with the water being so expensive in San Diego County. We make sure that we shut off our time clock, at least until February.

4. We want to make sure that all our outside furniture is covered, or put away in the garage. No doubt, there are storms, windstorms that can damage this furniture and also even damage our property. So let’s put away our furniture and store it for the winter.

If you have any other tips that you could share with us, please let us know. I would like to know what are other ways you get ready for winter.

Any questions? #CallCristobal now!

Down Payment Assistance Is Now Easier To Qualify For in San Diego County!

EXCITING NEWS!!

Down payment assistance is now getting easier to get and if you’re a policeman, fireman, or teacher.  Your down payment assistance is now not repayable under the Golden State Finance program updates.

It’s easier because income limits are rising. In the past, it’s always been hard but now in San Diego County, the income limit now is $163,600. So if you’ve spoken to a lender about down payment assistance in the past and they told you “no,” that you made too much money, check again. This program might work for you now.

What if you aren’t a fireman, teacher, or a police officer? Can you still get down payment assistance?

YES! The same grants are available so if you are one of those professions, you immediately don’t have to pay back any money if you were to sell the home. If you are not one of those professions, you just have to live in the house for three years and then you can move. The debt’s forgiven!! after the third year.

What does my FICO score have to be in order to apply for this?

Only a 640, it’s such a great opportunity for so many people.That is great, what does that mean? It’s a great time to buy while the interest rates are low, don’t get priced out of the market, and put off buying a home, now is your time.

Real estate Questions? #CallCristobal!

The Vegan Realtor

Vegetarianism has been around for a very long time. The term “vegan” was coined in 1944 by a small group of vegetarians that were against eating dairy products.

Vegans chose not to consume dairy, eggs, or any other products of animal origin, in addition to refraining from meat, as do vegetarians.

Why do people become vegan?

  • Ethics
  • Health
  • Environment

We decided to cut dairy, eggs and animal-related products after we discovered that my wife had Osteopenia a year after she gave birth to our oldest daughter, she was getting lab work done almost every week for nearly two years without an answer to why she developed it.

She started researching on her own and found another woman in the same situation, and her issue went away after they made the diet change. She decided to try it. I fully supported her; I saw in her eyes that she genuinely meant it and believed that a diet change might help her improve her health, so we did.

We went cold turkey, literally changed our diet overnight and pretty soon we realized it wasn’t about eating salads, we were hungry. We hired a Holistic Family Nutritionist and Vegan Expert, and with her support, we made a successful dietary change. We monitored our health with blood work, especially our daughters now five years old and two years old.

The first change we noticed was weight loss; then our energy level went up, and we became very sensitive to food that has dairy, eggs, or any animal-related product. 

To wrap it up, we have been on this diet for almost three years now, and we enjoy it, it’s becoming a lifestyle now, we learned how to balance our meals to get all the nutrients that we need, especially for our little ones and we haven’t looked back ever since.

Youtube: Cristobal Jimenez Priego REALTOR

Questions? #CallCristobal!

Pre-Approval vs Pre-Qualification

Why do you need an Approval rather than just a pre-qualification? It can end up costing you thousands of dollars if you indeed aren’t qualified. We’ve helped save hundreds of buyers from making huge mistakes when purchasing that could cost thousands of dollars.  

A pre-qualification is NOT an actual approval, its the initial step in the home loan process where you discuss your financial situation with the loan officer, but nothing is verified.  

The approval is where the buyer provides the lender with all of the necessary documentation to tell them what they are approved for, which loan product is the best option for them and give the buyer better idea of the interest rate.You want to go through the entire approval process.  

The lender has done things like verified your employment, seen your taxes, looked at your bank statements, they’ve verified everything you will need in order to let you know how much they will loan you and what your payment will be.  It’s essential that you get pre-approved. Otherwise, you could stand to lose your initial deposit and any money that you’ve spent on things like inspections or the appraisal.

Don’t fall into that trap, call us and let us walk you through the safest and most strategic way to become a homeowner and don’t forget, it’s free to have an agent represent you, the seller pays for our fees, but we are here to protect your best interest.  

Real Estate Questions? #CallCristobal!

Mortgage rates falling constantly

Mortgage rates fell very drastically since October of 2016 because of the failing economic data.

According to Freddie Mac, the 15-year fixed-rate mortgage moved down 6 basis points to an average of 3.00%.

Mortgage rates roughly track the direction of the 10-year Treasury note +1.69%. The yield on the 10-year note has generally fallen since mid-August, though this week it began to show signs of a rebound amid growing optimism sparked by planned trade talks between the U.S. and China.

The rates for 30-year home loans have only increased more or less 9 times this year and have decreased or remained the same for weeks.

The latest edition of the Beige Book was released by the Federal Reserve on Wednesday. The Fed’s stated a hopeful side of the economy but did not leave out the risks. Because of this, many analysts expect the Fed to cut interest rates by 25 basis points when it meets later this month.

“If there were some sense among Fed staffers that the rate cut should be postponed, they certainly did not establish a defense of that position in this Beige Book,” Ward McCarthy and Thomas Simons, Jefferies’ Chief Financial Economist and Senior Money Market Economist, wrote in a research note Wednesday.

Freddie Mac wrote, “Mortgage rates continued the summer swoon due to weaker economic data. While economic growth is clearly slowing due to rising manufacturing and trade headwinds, economic fundamentals are still solid for U.S. consumers.”

President of St. Louis Federal Reserve, James Bullard, pointed out that a 50-basis-point trimming may be what’s needed to keep the Fed ahead of the curve on international trade’s effect on the U.S. economy.

Moves by the Fed don’t directly trigger moves in the mortgage markets, since the Fed manipulates short-term interest rates and not long-term rates like those on mortgages.

Still, the Fed’s are typically baked into mortgage rates in advance of an expected cut to short-term rates. Because of this, people who are having a new home can expect lower mortgage rates in the coming weeks as the Feds are expected to cut down rates.

Real Estate Questions? #CallCristobal!

Our Beloved Great Danes

My wife and I are dog lovers; right after we got married, we decided to get a dog. We ended up welcoming a Great Dane to our family. We did a lot of research about the breed before we committed to it.

I want to share with you 3 elements of this wonderful breed:

History

The origin of the breed seems to be mostly German. Great Danes used to be hunting dogs, when they were in the woods hunting boars mostly, the prey will bite the dog’s ears, to avoid that situation, they decided to crop the ears. And that’s the Great Dane figure that we all recognize.

Types of Great Danes

There are different types of Great Danes:

Harlequin: Mostly white with black patches

Mantle: Black with usually a white chest.

Blue Merle: similar to the Harlequin, they have black patches. However, the coat is mostly dark gray

Blue: Dark Gray

Fawn: Yellow Gold with a Black mask on the face

Brindle: Fawn ad black in a chevron stripe pattern

Black: Glossy Black

Care of the Great Dane:

Great Danes require a lot of attention, especially when they are puppies. You need Raised Bowls to feed them and also for them to drink water. The first two years of a Dane are very critical, in my opinion. During the first two years, the dog is growing, and food is a crucial component of it. They have a very sensitive tummy they don’t do well with cheap dry food. We make our dog rest after they eat for at least 30 mins to avoid bloat.

I walk my dogs every day for at least 1 mile, and they are the best accountability partners to get an excellent exercise first thing in the morning.

They don’t require a lot of space at home, and they want to be with you all the time. They are great with kids, we have a 2-year-old and a 5-year-old daughter and our 2 Danes have been excellent with our daughters. Training is a critical component on any large breed. We professionally trained our dogs with two different trainers, and all that time and effort paid off. Great Danes love to lean, and if you are not prepared, they can knock you down. The larger the breed, the shorter the lifespan of the dog.

The average lifespan of a Great Dane is 8-10 years. However, we’ve met Danes that have gone past this average up to 13 years. We are fortunate to say that our Girl is 8 1/2 years old and still very strong and our boy is seven years old.

These dogs grow a lot and could potentially be heavier than you. Our boy weighs 170lbs and our girl weighs 157lbs. We decided to feed our Danes raw. We did a lot of research before we switched them and they have been in a raw diet for six years now – they love it, and we love it as well.

How about you? We would love to hear your dog stories! Share it in the comments.