Spring’s news good for La Jolla home prices
By Bob Kevane
President, San Diego Association of Realtors
The warmer months brought an increase in single-family home prices in La Jolla in May when the median home price for detached homes rose to $1,501,500, compared to $1,300,000 in May 2010.
On top of that, more properties sold in La Jolla year-to-date as compared to this time last year — 110 and 97 respectively.
Favorable pricing along with reasonable inventory, and low financing rates, makes this summer an exceptional time to start searching for your new home.
For first-time and experienced homebuyers, preparing for home ownership before jumping into this market is crucial to ensuring a smooth journey. A Realtor can give guidance about is how to organize your finances in preparation for buying a home. According to Realtor Magazine Online, are steps you can take to help achieve a strategic financial plan:
— Create a family budget by using receipts for what you actually spent over the last six months.
— Reduce your consumer debt to between 8 percent and 10 percent of your total income. Lenders look for a total debt load of no more than 36 percent of income. This number includes your mortgage, which typically ranges between 25 and 28 percent of income.
— Get a handle on your expenses. Write down everything you spend for one month and from your list, identify ways to save.
— Consider increasing your income by taking on a second, part-time job.
— Save for a down payment and set a goal of saving at least 20 percent of a home’s sales price.
— Create a house fund. Deposit money into the account on a monthly basis.
— Stability of your earnings stream is important; therefore it is important to keep your job for at least two years. While you don’t need to stay in the same job forever to qualify for a loan, having a job for less than two years may mean you have to pay a higher interest rate.
— Establish a good credit history by paying your bills on time and try to pay off the entire balance monthly.
- La Jolla’s real estate market sees modest improvements
- 10 ways to lower your homeowners insurance costs
- La Jolla real estate market remains steady
- La Jolla homes sold between Nov. 1 and 5
- La Jolla building permit applications from Oct. 4 to 8
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