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.

Related posts:

  1. La Jolla’s real estate market sees modest improvements
  2. 10 ways to lower your homeowners insurance costs
  3. La Jolla real estate market remains steady
  4. La Jolla homes sold between Nov. 1 and 5
  5. La Jolla building permit applications from Oct. 4 to 8

Short URL: http://www.lajollalight.com/?p=45101

Posted by Staff on Jun 30, 2011. Filed under Homes, Real Estate Trends. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry

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