Good Tips For San Diego Home Buyers.   When looking for homes a consultation with your agent should be the first step.  This TV episode, as recounted in the San Diego Union is a good example of the benefits of that planning.

SAN DIEGO AGENT FEATURED IN HGTV’S ‘HOUSE HUNTERS’

Buyers learned some universal lessons about setting priorities, settling on home

LILY LEUNG • U-T

San Diego real estate agent Jessica Donigan helped a local couple, Mark and Katie, shop for their first home in the latest episode of “House Hunters” on HGTV, which aired Friday.

This isn’t the first time a San Diego agent has been featured on the popular show. Lisa Cupp, of Coldwell Banker, was on the show last summer — full episodes on some of the shows are at utsandiego. com/ hgtv.

Donigan, who’s with a Keller Williams Realty office, talked about the show and offered tips for potential buyers.

Q:What were Mark and Katie looking for?

A:They were looking for a house because they wanted more room, a dog and space for when family members come to visit. Once the search started, they opened their minds to townhomes and condos.

Q:What was their search for a home

like?

A:Since this was their first home, they began with a very broad search criteria, but I had to make a few adjustments along the way. They liked the idea of a home but began to realize location was more important, so they compromised by getting a sweet condo in a prime location. They started looking in East County, but because of their job location and interests and lifestyle, they realized it was a little farther than where they wanted to be. So they turned their attention to Clairemont and Bay Park. Great location, but higher priced. Mark likes to fix things up, but they didn’t want to get in over their heads on the first house. So they kept to the prime location and started looking at condos and townhomes.

Q:What was it like being followed by a TV

crew?

A:Spoiler alert! Honestly, the TV crew filmed a re-enactment. They started filming after we closed escrow but before Mark and Katie moved in. It was a lot of fun, not scripted per se but coached. The easy part was walking through the properties acting like no one else was there. The hard part, at least for Katie and me, were the oneon- one interviews.

Q:Could you offer any tips to potential buyers, drawing from this particular episode?

A:Three things. One, insist on a buyer consultation. The first and often missed step is to sit down with your agent before you start looking at homes together. This gives you the buyer a chance to discuss your needs and wants and why those things are important. Then you can strategize with your agent on how to put that plan into motion. Two, be prepared. You must have all your ducks in a row from the start: your agent, plan, lender pre-approval letter. Also, be prepared to move fast; if you don’t, someone else will. You don’t want to waste time; good homes sell fast. Lastly, be a team. Most buyers begin their home search on the Internet and with so many websites, it is a great place to start. Heavy Internet searches do not replace the benefit of you and your agent working as a team. The market and trends change quickly, and you want an agent moving just as fast.

Q:What’s your take on the San Diego market right now? Weaknesses and strengths?

A:Right now the market in San Diego is prime for the picking. Many buyers are taking advantage of the adjusted prices and low interest rates. I would say, though, it has two sides. Homes at and below median price are hot, but because of low housing inventory, we are seeing multiple offers. The other side of the market is the higher-end properties. Here, there is plenty of inventory, and they are not selling as fast. By far, San Diego’s strengths outweigh its weaknesses. One of the weaknesses in San Diego is the high unemployment rate. The obvious strength is location. Who doesn’t want to live here?

lily.leung@utsandiego.com

Why Should I Buy Real Estate At All.. Especially in North San Diego County?

January 26, 2012 JoeCobb Real Estate Issues

Why Should I Buy Real Estate At All.. Especially in North San Diego County? Thank you for giving me the opportunity to tell you why i have enjoyed my career as a Realtor and Real Estate Broker since 1978.

We start with a comparison of homeownership vs renting indefinitely. These are the advantages:

–You live in a home you have control over. You can change virtually anything about the decor, the landscaping, the appliances, the cabinets, the walls, the roof, the heating and air-conditioning, the looks the feel of your own environment for potentially all of the rest of your life. And without asking for permission of a landlord.

–You will never get a rent raise from your landlord. Rents in North San Diego always keep pace with inflation of housing in the area. Because we are in a high demand area. You will definitely have higher rents. Obviously, when you buy that home you should be sure you have long term, 30 year fixed rates that conform to your needs so what happened in the last decade does not happen to you.

–You will be paying off your own mortage, not yourlandlord’s mortgage. You will have that savings and equity not the landlord.

–After tax benefits of ownership may make your payments immediately, if not overtime, much less than if you rent.

–You take advantage of the financial magic of leverage. If you are a veteran and put no money down, or use an FHA loan with 3 1/2% down, or even put 20% down you will be leveraging that amount as if it were the whole price of the home as if you had put all cash down. If the home goes up in value more than you put down you have returned all of your investment and all appreciation from then on is at a high rate of return. Talk to a Real Estate Expert to look at your own situation.

–Most people ages 50 and above have most of their net worth in their homes. Renters would have none.

–In California and many States you can sell your home and move your property tax base into the the next home often leaving your taxes the same or lower than first time buyers right next door.

–An increase in value is taxed only when you sell your home at capital gains levels. You currently have tax laws that forgive up to $500,000 of that gain no tax. Nice!!!

BACK TO THE QUESTION OF WHY YOU, PERSONALLY, SHOULD BUY. That depends on where you are in your life. If you are young, married or single, and willing to move away or to another local neighborhood, you should probably rent. Or if you are ready to pick a home you will live in over a period of time, it is a good bet you should buy. At this point of the real estate cycle the next 5 to 10 years should show increasing values compared to the last 6 years of decreasing prices. Either way, I recommend you consult a Real Estate Expert to help you decide.

NOW THE QUESTION OF WHY BUY IN NORTH SAN DIEGO COUNTY. As a resident Realtor and Real Estate Broker living in this area and selling all of San Diego for over 22 years I can give you some of my thoughts.

–We moved here to North San Diego Inland because of the schools and the community feeling in the Poway Unified School area. That School District covers the commuinities of Poway, Sabre Springs, Penasquitos, Torrey Highlands, 4S Ranch, and Rancho Bernardo. We raised 3 or our kids from elemenatary through High School and now have 6 Grandkids in, or entering that same Poway School District.

–North San Diego Coastal has excellent schools and neighborhoods i am equally familiar with. I owned a Real Estate Company in the early 1980's in Solana Beach and have helped buyers and sellers there ever since.

–North San Deigo region is poised for growth along the I-5, I-15 and Hwy 78 corridors due to the commercial, industrial, recreational and travel routes that make the area a hub of activity near the Greater Los Angeles coastal and the eastern Riverside, Palm Desert populations.

–Always consult a Real Estate Expert when it comes to your own personal needs.

San Diego Veterans Have V.A. Loans To Buy Their Homes.

Many veterans may have forgotten the V.A. loan option.  It you are a veteran, including 6 year National Guard or Reserve you may want to find out if that V. A. loan is the best for you. With the interest rates and prices so low it would be a shame not to buy this year if you are only short the down payment. 

From the San Diego Union:
GUEST COLUMN

VA loans opening homeownership doors for more veterans
Past and current military personnel looking for financing in today’s more stringent mortgage environment can take advantage of the VA loan program, which has been available for more than six decades to help members of the military own their own homes.

The program,established in 1944 as part of the Servicemen’s Readjustment Act,is available for any individual who has served in active duty in any branch of the U.S.military for a minimum of 90 days.

“The borrower receives a significant benefit by being able to finance a home without the requirement of a down payment,” said Danny Valentini,SVP-San Diego for HomeServices Lending.“VA loans also prohibit lenders to require the veteran to carry expensive private mortgage insurance that are attributed to other types of loans when financing loans over 80 percent of the value or purchase price.”

A VA loan does require the borrower to pay a one-time funding fee on their purchase,which can be paid up front or financed into the total cost of the loan.The funding fee for regular military members is 2.15 percent of the loan.Reservists pay a fee of 2.40 percent.

Non-active duty personnel,such as individuals in the Army Reserves or National Guard,may apply for a VA-backed mortgage provided they have completed six years of service.Spouses of deceased or missing military members are also eligible if they have not remarried.Those who were dishonorably discharged from any military branch are not eligible.

“There’s been a steady increase in VA loans during the past two years as compared to the last decade,”said Valentini.“However,one of the challenges that could be keeping veterans from taking advantage of the VA benefit,is making more veterans aware of this benefit.” Statistics provided by the Department of Veteran’s Affairs show that roughly 25 million people are eligible for a VA loan yet only 10-15 percent of those have taken advantage of it when buying or refinancing.

One reason is that for many years leading up to the mortgage crisis,there were many conventional mortgage products that were easier or more economical to the veteran than the VA loan.

“Prior to the 2008 ‘mortgage meltdown’,100-percent financing had become a common option attributed to conventional loans,”Valentini said.“Consumers logically questioned the cost of paying the VA funding fee when considering 100 percent financing? VA also required more control over the appraisal process,and required additional disclosures. Lenders, brokers and consumers may have found the process more cumbersome than the former ‘free wheeling’ conventional loan process.”

Many veterans,especially those not so recently discharged, aren’t sure of VA loan benefits or that the program even exists.With the VA loan the veteran can buy a home with little to no money out of pocket.

Talk to a mortgage representative for more onVA financing.
 

You Can Buy San Diego Real Estate even if you may think your credit is not good enough.

This San Diego Uniion article shows you may be scared away from even trying when your new home is just an application away.  The key is to be able to realistically afford it.   The truth is you may be able to pay less for your monthly living by buying rather than renting.  In fact, the interest rates and San Diego home prices are so low it is time to look at buying before they turn around and you are priced out of the San Diego market.

KENNETH HARNEY Nation’s Housing

INFORMATION GAP KEEPING MORTGAGE SEEKERS FROM DEALS

Could gloomy popular assumptions about how tough it is to get approved for a mortgage be scaring away large numbers of people who are qualified from even applying?

Could the same worries — I can’t come up with the big down payment I need, my credit scores are too low, my bank account has almost none of the “reserves” lenders want to see — put a needless damper on a housing recovery in the new year?

You bet. Lenders and economists will tell you flat out: The lack of accurate information about the availability of loan programs that are designed to address special needs is discouraging far too many consumers from even considering an application, much less shopping around.

Mortgage banker Alex Stenback of the Residential Mortgage Group in Minnetonka, Minn., says he sees it every day: “People just aren’t aware of what’s possible right now” and as a result, they are missing real estate prices and long-term interest rate opportunities they shouldn’t.

Doug Lebda, founder and CEO of LendingTree, the online site that allows banks to make competing offers to applicants, believes that “the fear of being rejected” because they don’t conform to standards that may not even exist, is keeping qualified applicants on the sidelines for no reason.

For example, what’s needed for an acceptable down payment? Is it 20 percent? 10 percent? Less? Yes, it’s less — and potentially a lot less if you qualify for the right program. The widespread erroneous assumption that banks require a minimum 20 percent for conventional loans may have arisen from

Don’t assume you can’t qualify for a loan

heavy media coverage this spring and summer of a controversial proposal by federal agencies calling for borrowers to put down that much if they want to get the best interest rates and lowest fees.

Also contributing to incorrect beliefs about down payments: The Obama administration floated the idea of a phased-in move to 10 percent upfront cash for all loans eligible for purchase by mortgage giants Fannie Mae and Freddie Mac, who together dominate the conventional home-loan sector.

But neither the 20 percent nor the 10 percent plan has been adopted and the odds of either moving forward in 2012 are remote. Fannie Mae’s and Freddie Mac’s standard minimums are still 5 percent with mandatory mortgage insurance coverage.

If you have little or no cash to put down, there are multiple options for you: FHA requires just 3.5 percent down on its insured mortgages. Other programs let you go to zero— even finance more than the price on the house when fees are rolled into the mortgage — provided you fit into an eligibility niche. If you qualify as a veteran or active member of the military, you can get a zero-down VA-guaranteed mortgage.

Plus the VA allows your seller to pay your loan fees and closing costs provided they don’t exceed 6 percent of the house price.

You can also buy with nothing down if you are purchasing a home in any of the many communities around the country that are eligible for rural (USDA) guaranteed mortgages. Though the property may be located on the outskirts of a large metropolitan area and might not strike you as particularly “rural,” if the local population is below roughly 20,000, there’s a decent chance you’re eligible.

The little-publicized USDA guaranteed home loan program, by the way, is booming. In the last fiscal year alone, according to housing administrator Tammye Trevino, more than 130,000 borrowers received low or no down payment guaranteed mortgages — quadruple the number of loans extended as recently as 2006.

What about credit? Haven’t lenders been pushing up minimum FICO scores into the mid-700s and rejecting applications with lower scores outright? Not everywhere. Though most lenders doing FHA loans require 620 to 640 scores to get you in the door, a few of the biggest FHA originators, such as Quicken Loans, will accept scores down to 580.

Bob Walters, Quicken’s chief economist, says underwriters scrutinize low FICO applications extra carefully but are seeing good to excellent performance from them: Not one has gone seriously delinquent this year.

And how about debt-to-income ratios? Aren’t they tighter than ever? Not really. Lenders say that when loan applications go through the “automated underwriting” systems used by Fannie, Freddie and FHA, borrowers with high total monthly debt levels of 45 percent to 55 percent of household income — well beyond the posted limits — frequently get approved if they have positive compensating information elsewhere in the application.

Bottom line: Don’t assume you can’t qualify for a mortgage in 2012. Talk to lenders and seek out loan products that offer flexibility where you need it. You just might be surprised.

Kenneth Harney is a columnist for The Washington Post Writers Group.

Send email to kenharney@earthlink.net.

Signs of improvement in San Diego Home Sales.  We are experiencing tiny, but steady, improvements in the housing sector of San Diego County.  Now is the time to consider buying with the market interest rates low and the prices flat.  Look at your New Year Resolutions now.  If you need to move in 2012 it is time to plan that move so you won't be left behind when the rates and prices increase..

REAL ESTATE

County foreclosures were flat last month while default notices dropped

Figures released Monday from DataQuick show the number of San Diegans who lost their homes to foreclosure has flattened, while default notices in the county declined last month. The data firm counted 666 foreclosures in November, down 0.1 percent from October and down 7.9 percent from a year ago. Last month’s tally is now the lowest since November 2007, when the county recorded 478 trustees’ deeds, which signal a home has been lost to foreclosure.

Meanwhile, 1,645 residents in November received default notices, which kick off the formal foreclosure process. That’s 14.4 percent lower than October and 0.9 percent lower than a year ago.

The county saw a higher-thanusual blip of such notices in August, when they soared to 2,094. But default notices have since fallen to numbers closer to the one-year average of 1,593, Data­Quick figures show. Falling foreclosure or default numbers don’t automatically mean the distressed market is getting better. Drops could also be attributed to other reasons, including delays by lenders and the effects of the robo-signing scandal in which banks had reportedly employed workers who signed off on loan paperwork without proper review.

DataQuick analyst Andrew LePage said the short- to medium- range picture of distress still looks “very murky,” considering we don’t know how lenders are maintaining their inventories of homes. Another unknown is how many borrowers will complete the formal foreclosure process instead of other alternatives, such as short sales and loan modifications.

It took an average of 9.9 months for a home in California to be foreclosed on, starting with the notice of default, based on a third-quarter analysis by DataQuick. That’s up from 8.7 months in the third quarter of 2010.

The majority of current homeloan defaults are from four to six years ago, with the median origination date at the third quarter of 2006, the most recent Data-Quick numbers show. That’s been the case for almost three years, which shows lax rules in mortgage underwriting likely peaked during that time, the report added.

LILY LEUNG • U-T

Fantastic relief for the middle to high end properties in San Diego.  North county areas affected include Coastal, Torrey Del Mar, Highland Ranch, 4S Ranch, RAncho Bernardo, Penasquitos, Poway, Scripps Ranch, Escondido, San Marcos, Fallbrook, Hidden Meadows, San Marcos, and Vista or whenever a home needs a mortage of that amount.  This will relieve the shortage of mortages in that range making it possible for more people to buy. 

KENNETH HARNEY

Nation’s Housing

NEW LOAN LIMITS MAKE FHA TAKE ON LARGER ROLE

After a year characterized by grumpy partisan gridlock, Congress came up with a Thanksgiving compromise that could change the mortgage choices of buyers and refinancers in more than 660 markets across the country: It raised maximum loan limits for the Federal Housing Administration while leaving loan ceilings untouched for Fannie Mae and Freddie Mac.

In effect, this may make FHA the go-to financing option for borrowers needing loans up to $729,750 — with down payments as low as 3.5 percent — in high-cost areas of California, metropolitan Washington, D.C., New York, New Jersey and scattered counties in other states including Massachusetts, Florida and North Carolina. Fannie Mae- and Freddie Mac-eligible loans in those areas, meanwhile, stay capped at $625,500.

Equally important, the new plan raises the FHA ceilings for purchasers in hundreds of more moderately priced markets. Seattle-area buyers’ maximum FHA loan amount jumped to $567,500, while the Fannie Mae-Freddie Mac ceiling remains at $506,000. In Hartford, Conn., the limit for FHA is now $440,000, up from $320,850;

FHA may now be best option for larger loans, but expect higher fees

FROM C1

Fannie and Freddie remain capped at $417,000.

Buyers with low down payments in Portland, Ore., who previously had been limited to FHA mortgages of $362,250, can borrow up to $418,750 under the new plan, $1,500 more than they can get from Fannie and Freddie, which generally require steeper down payments and higher credit scores.

The new loan ceilings in hundreds of markets are at the core of the compromise: They raise the maximum FHA loan amount in all areas of the country to 125 percent of the local median home-sale price, while leaving Fannie Mae’s and Freddie Mac’s limit at 115 percent of median.

What motivated Congress to create separate-and-unequal rules that transform FHA — traditionally a haven for moderate income, firsttime buyers with minimal cash — into a key source of financing for buyers in upper- as well as midbracket markets?

Nobody in Congress actually proposed this idea at the start. By a 60-38 vote in October, the Senate passed an amendment raising all three agencies’ limits to $729,750 in high-cost areas and 125 percent of the median sale price elsewhere. The goal — lobbied aggressively by realty and homebuilding groups — was to inject needed oomph into lagging home sales. But Republicans in the House balked at doing anything that might prolong the existence of Fannie and Freddie, both the targets of scathing criticism for their multibillion-dollar costs to taxpayers and big bonuses for top executives.

What ultimately emerged from the legislative scrum was the current compromise penalizing Fannie and Freddie, while boosting FHA. House Republicans weren’t enthusiastic about helping FHA, either — the agency faces its own financial challenges — but unlike Fannie and Freddie, FHA is subject to congressional appropriations and closer oversight. Republican critics held their noses and voted for the plan.

What will this mean for buyers from now through the end of 2013, when the compromise expires? “There’s no doubt this will drive more business to FHA,” said David H. Stevens, former FHA commissioner and current president and CEO of the Mortgage Bankers Association. Annie Austin, a loan officer with Cobalt Mortgage in Bellevue, Wash., said: “With (Fannie and Freddie) limited to $506,000 (locally), FHA is going to become the darling of the industry again” at $567,500. Bob Walters, chief economist of Quicken Loans, one of the largest national lenders, said “the increased loan limits will benefit many consumers— especially those looking to borrow larger amounts but (who) are in a credit situation where Fannie Mae and Freddie Mac loans are not available or optimal.”

The switch to FHA could entail some pain, however. Tim Kepler, a loan officer with Land Home Financial in Danville, noted that the agency raised its upfront mortgage insurance premiums from 0.5 percent of the loan amount to 1.15 percent earlier this year. This “will increase (applicants’) closing costs over a (Fannie or Freddie) loan.”

The premium can be financed, but can add substantially to the costs of high-balance mortgages — more than $500 a month on a $700,000 loan, according to Brian Chappelle, head of Washington, D.C., consulting firm Potomac Partners. Bruce Calabrese, president of Equitable Mortgage in Columbus, Ohio, says the hefty new premiums make “FHA too restrictive and unattractive” for most refinancers in his area, even with slightly higher loan ceilings.

Bottom line for you as a shopper: Take a hard, close look at FHA with a local loan officer, in light of the rule changes. Pencil out the costs, down-payment requirements, and more generous standards on credit. FHA may be your best option. But then again, the higher fees just might change your mind.

Kenneth Harney is a columnist for The Washington Post Writers Group. Send email to kenharney@earthlink.net.

Good new for some who have loans they are struggling with according to the San Diego Union.

REAL ESTATE

Mortgage aid open to more Calif. borrowers

A state-run program that helps homeowners struggling to pay their mortgages now has broader eligibility guidelines, opening up help to borrowers who did “cashout” refinances and own multiple properties.

The program, called Keep Your Home California, is run by the California Housing Finance Agency. It has helped close to 8,000 low- and moderate-income households that are behind on loan payments or are close to default, the agency’s leaders said.

Keep Your Home California’s services include mortgage help for the unemployed, mortgage aid for homeowners with other documented financial hardships, relocation help for people going through a short sale or deed-in-lieu of foreclosure, and reduction of principal.

The broadening, announced Monday, includes: •Allowing homeowners who completed “cash-out” mortgage refinancing to take part.

• Enabling borrowers who own more than one property to participate. Program officials said this will be particularly helpful to those who co-signed on properties for family members.

• Offering mortgage aid to unemployed borrowers for nine months, instead of six. The maximum payment is $3,000 a month.

• Reinstating up to $20,000 in past-due mortgage payments instead of the previous $15,000 cap.

To qualify, your mortgage servicer must take part in the Keep Your Home California program.

LILY LEUNG • U-T
 

The government has new guidelines you need to know about as reported in the San Diego Union.  Here is how you find out if you are able to be helped.

FIND OUT IF YOU’RE ELIGIBLE FOR HARP

Eligibility requirements

• Your home loan must have been sold to Fannie Mae or Freddie Mac before June 1, 2009.
• The loan-to-value ratio must be more than 80 percent.
• Homeowners must be current on mortgage payments in the past six months. They can’t have more than one late payment in the past year.
• Borrowers must be able to afford the refinanced mortgage payment.
• Proposed changes would:
• Cancel certain risk-based fees, leading to lower closing costs for homeowners who refinance into loans with shorter terms.
• Get rid of the 125 percent loanto- value cap.
• Eliminate the need for banks to pay for “representations and warranties,” which are in place in case borrowers default on their mortgages. This change is meant to make lenders feel more confident about underwriting the refinanced loans.
• Eliminate the need for new appraisals when an automated estimate is available.
• Revise HARP’s expiration date to Dec. 31, 2013.
• Other things to know
• It’s important to keep paying your mortgage.
• Lenders are not required to take part in the revamped program.
• So far, major banks including Bank of America and Wells Fargo say they’ll participate. However, implementation may vary.
• Assuming you qualify for the program, consider how long you plan to live in your home and when you plan to retire. Those factors could impact what’s financially best, said Michael Zau, mortgage banker at W.J. Bradley Mortgage in Rancho Bernardo.

Eligibility requirements

1. Find out if Freddie Mac or Fannie Mae owns the note to your home. The note owner is different from the servicer, the company to which you send you mortgage payments every month. For example, Freddie Mac may be the note owner, but your servicer may be Bank of America.
2. How do you know if Freddie or Fannie owns your note? Check their respective websites and fill in the designated blanks to get a confirmation. The sites are http://fanniemae.com/loanlookup and https://ww3.freddiemac.com/corporate
3. Don’t have a computer? Yo u can call (800) 7FANNIE or (800) FREDDIE. Hours for both hot lines are 5 a.m. to 5 p.m. Pacific time.
4. Be sure to enter your address exactly as it appears on your original loan documents. Fo r example, don’t enter “Main Street” if your records show “Main St.” “It’s that sensitive,” said Jonathan Jerotz, vice president of mortgage lending for Guaranteed Rate in San Diego.
5. If the note is owned by Fannie Mae, the result will say “Match Found.”
6. For Freddie Mac, the result will say “YES, Freddie Mac is the owner.”
7. The program will take effect as early as Dec. 1.

WHAT GETS US INTO TROUBLE IS NOT WHAT WE DON'T KNOW..

IT IS WHAT WE KNOW FOR SURE THAT JUST AIN'T SO!!

------Mark Twain    

Buyers and Sellers in San Diego are caught in a the mindset that they know real estate is a bad investment at this time.  The Facts:

1. History of prices and interest rates show that this is the best time in decades to buy and it is the best time to own real estate.   The charts for both speak for themselves.  Look at the charts.
2. A close analysis of the actual cost of renting vs buying today after taxes and all considerations show owning is less expensive.  Rents will go up as the economy strengthens.  If you own your own home you can make the changes to that home to make it more comfortable for you.  Look at the previous posts below.

1. The fact it is more expensive to buy the land and build a new home than it is to buy an existing home.  Builders have applied for fewer permits to build than they have for decades.  The cost of building materials has gone up and will in the future.
2. Answer this question:  Is San Diego still one of the most desireable places to live on the  planet?  The whole world is drawn to the greater San Diego region.  The supply of homes is diminishing as the population increases from that demand which is the perfect formula for increase prices.  Over time your home will build the equity you will need for retirement.  Historically homes have doubled in value every 10 to 12 years.  An equity no renter will ever have.     M             That

These are only 4 facts to look at but should be taken very seriously by those who want to buy eventually.  It is possible the news has convinced you that now is not a good time to buy.  In my mind it is the best we have had for decades as long as you can make your payments and plan on living here for the long term.  I recommend you talk to your real estate expert for more information and to discover if now is the time to buy for you.

5 Keys To Buying A Home In San Diego  

1) The best time to buy is when others are not.  

2) Real estate has up and down cycles but always tend up over time.   If the home you want to buy is available in the right location, at a price you can afford over time, and we are in a down market, why not buy? 

3) We know interest rates are low at this time but they can change quickly. 

4) Because most families move during summer break from school schedules, homes on the market during this time of year have sellers with higher motivation.

5) Fear stops many from buying.  Facts overcome fear.  Find out the facts from your trusted real estate advisor.

Tuesday, 16 August 2011

SUMMER SLUMP SEEN IN DECREASE

IN COUNTY HOMEBUYING IN JULY

DataQuick reports 11.7% dip in sales and 1.5% in prices over a short month

LILY LEUNG •U-T

San Diego home prices and sales fell in July, not atypical for the summer months and likely due to fewer business days last month, according to Monday’s report from La Jollabased real estate tracker DataQuick.

The county in July recorded 3,041 sales — including single-family resales, condos and new homes — the lowest number for a July since 1995, when therewere 2,373. Sales were down 11.7 percent from June and 0.9 percent the same time last year. A similar monthover- month decline was seen throughout Southern California.

San Diego’s median price in July for all housing types was $325,000, down 1.5 percent from June and down 3.8 percent from a year ago.

The summer season

June-to-July sales on average across Southern California have dropped 4.8 per-

SEE HOUSING • C5

HOUSING • Fewer business days in July and economic uncertainty blamed for decline

FROM C1

cent since DataQuick began analyzing housing numbers in 1988. July sales numbers this year were the third-lowest on record for a July, and nearly 30 percent below the July average of 25,752 sales, covering San Diego, Orange, Los Angeles, Riverside, San Bernardino and Ventura counties.

Bear in mind: When looking at all months, June has had the highest number of sales most often in eight of the past 23 years of Data-Quick tracking. Meanwhile, July has had the highest sales twice during that time frame.

“The latest sales figures look a bit worse than they really are, given this July was a fairly short month” in business days, said Data-Quick President John Walsh in a statement. “But they still suggest some potential homebuyers got spooked. Reports on the economy became increasingly downbeat and, no doubt, some people fretted over the possibility the country would default on its obligations.”

There were 20 business days last month, compared with 22 in June and 21 in July 2010.

Gauging by housing type

The county’s real estate market is nuanced, so here’s a breakdown of last month’s numbers by sales type: Single-family resales: This section usually makes up the bulk of monthly total sales, in July’s case: roughly 65 percent. This was the only subsection of the market that saw a positive change in July.

The median price, or the midpoint home value, was $360,000 last month, down 1.4 percent from June and down 5.3 percent from a year ago. There were 1,982 sales, dropping 9.7 percent from June but up 1.9 percent from one year ago.

Resale condos: July’s median price was $205,000, down 6.8 percent monthover- month and down 8.5 percent year-over-year. Sales fell 10.6 percent from June and 5.1 percent from the same time last year.

New homes: This typically makes up the smallest slice of all transactions every month. Sales fell 31 percent in July from June, the largest month-over-month decline among the housing categories. They also were down from a year ago: 9 percent. The median price was $424,000, 15.5 percent lower than in June and 8.2 lower than the same timelast year.

lily.leung@uniontrib.com

A bright spot shows nondistressed sales are moving up

LILY LEUNG • U-T

San Diego County’s overall housing market stayed “sluggish” in the second quarter of 2011, but nondistressed sales saw a “healthy rebound,” according to Thursday’s report from the University of San Diego’s real estate center.

In a separate report covering July sales and prices, the San Diego Association of Realtors also shared mixed results.

The USD paper said the county recorded 8,839 sales in the second quarter, a 20 percent increase from the first quarter but fewer than the same quarter in 2010.

That data was collected from Honolulu-based Collateral Analytics and presented in a report by Norm Miller, Charles Tu and Lou Galuppo.
 

 Home, condo prices fall, sales appear mixed, Realtor group says.

  According to a breakdown of San Diego’s market, the number of regular, nondistressed sales “experienced a healthy rebound.” That number rose 40 percent from the first quarter to its second-highest level in four years. Meanwhile, the new-home market continues to be “near the historical low point.”

The authors called the distressed market “mixed.” The sales volume was up for bank-owned and short sales but down for foreclosures.

Total distressed sales in the second quarter rose by 4 percent from the first quarter, but were down by 13 percent from the second quarter of 2010.

Despite that 4 percent increase fromthe first quarter, the large rebound in regular sales means distressed sales fell from 53 percent of the total in the first quarter to 46 percent in the second quarter. Those percentages were the same in 2010.

On Wednesday, the San Diego Association of Realtors said median prices for single-family homes and condos were down in July from June and froma year ago, while sales figures appeared mixed.

The Realtors’ group uses data from the Sandicor Multiple Listing Service, which represents a portion of all transactions.

Looking ahead, USD real estate experts say sales for the rest of the year will be similar to figures from the second half of 2010. They predict distressed sales will make up 45 percent to 48 percent of total sales.

They also expect short sales could increase because of a new state law that bars first and secondary lien holders from going after sellers for money owed after the short sales close.

lily.leung@uniontrib.com

(619) 293-1719 • Twitter:@LilyShumLeung
 

Continue to read on here: San Diego Real Estate Reports Are Mixed

Continue to read on here: San Diego Real Estate Reports Are Mixed

For release:
July 15, 2011

CALIFORNIA ASSOCIATION OF REALTORS® applauds Gov. Brown on signing SB 458 into law

LOS ANGELES (July 15) – The CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) applauds Gov. Jerry Brown on signing SB 458 (Corbett) into law. SB 458 extends the protections of SB 931 (2010), to ensure that any lender that agrees to a short sale must accept the agreed upon short sale payment as payment in full of the outstanding balance of all loans.

Under previous law (SB 931 of 2010), a first mortgage holder could accept an agreed-upon short sale payment as full payment for the outstanding balance of the loan, but unfortunately, the rule did not apply to junior lien holders. SB 458 extends the protections of SB 931 to junior liens.

“The signing of this bill is a victory for California homeowners who have been forced to short sell their home only to find that the lender will pursue them after the short sale closes, and demand an additional payment to subsidize the difference,” said C.A.R. President Beth L. Peerce. “SB 458 brings closure and certainty to the short sale process and ensures that once a lender has agreed to accept a short sale payment on a property, all lienholders – those in first position and in junior positions – will consider the outstanding balance as paid in full and the homeowner will not be held responsible for any additional payments on the property.”

SB 458 contains an urgency clause making it effective upon signing.

Leading the way…® in California real estate for more than 100 years, the CALIFORNIA ASSOCIATION OF REALTORS® (www.car.org) is one of the largest state trade organizations in the United States, with nearly 160,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles.  

Continue to read on here: Obama reforms to help out-of-work homeowners

Continue to read on here: County sees first increase in property assessments since '08

Continue to read on here: San Diego home prices rebound slightly in April

Continue to read on here: New rules aim to curb homeowner underinsurance

Homeowners in California have less than two weeks to get a carbon monoxide detector installed in their homes.

A new state law that goes into effect July 1 requires the devices to be installed in all single-family homes that have an attached garage, fireplace or a fosil-burning heater.

The detectors of the odorless, colorless gas can be bought at hardware stores for anywhere from $20 to $90. The bill requires that devices sold are certified by the Office of State Fire Marshal.

The State Air Resources Board, a regulatory board at the California Environmental Protection Agency, estimates that carbon-monoxide poisoning causes 30 to 40 deaths every year in California. The board said inhalation of the gas has led to about 175 to 700 emergency room and hospital visits within the last three years in California.

But not everyone has to install the detectors by July 1. Owners of other dwellings, such as hotels, apartments and dormitories, have until 2013 to comply.

Homeowners who fail to install the devices by July 1 will receive a 30-day notice. If they fail to comply, they face a maximum fine of $200 for each offense.

Tonya Hoover, acting State Fire Marshall, said it will be difficult to enforce the law but that the focus should be in increasing awareness. “It will be challenging because they are a lot more homes than people able to verify,” Hoover said. “That’s why one should focus on education and outreach, informing people about the law and how to install the devices properly.”

California joins 24 other states, including New York, Florida, Illinois and Texas, in its effort to curb carbon-monoxide poisoning by mandating the use of detectors.

Jim Miguel, who owns several homes in Ocean Beach, Clairemont and Point Loma, said he has already installed carbon monoxide detectors in each of his homes. He says the detectors should not be mandated by the state.

“I am for personal freedom of choice,” Miguel said. “It’s a smart choice to install detectors, but consumers should decide on their own.”

Logan Heights resident Rebecca Gullans supports the law.

Gullans said installing such a device is prudent because she has small children.

But she’s concerned low-income families may not be able to afford the devices.

“It seems like something they should subsidize,” Gullans said.

Part-time county resident Loretta Alley, who owns three properties in Sun City Lincoln Hills near Sacramento, says the law is a great idea.

“It’s the same as with smoke detectors, people resist it at first but look at how many lives it safes,” Alley said.

Continue to read on here: Homes need carbon monoxide detectors by July 1

Baby boomers looking to downsize and young adults who can afford to finally move out will be key drivers of the residential recovery, saysHarvard University's state of the nation's housing report, released Monday.


The U.S. home recovery, expected by many industry leaders to come around slowly, in the meantime has been hampered by declining prices, high rates of foreclosure in states such as California and people faced with negative equity.


"The state of the nation's housing is sobering," said Eric S. Belsky, the managing director of the Joint Center for Housing Studies, which wrote the report. "Total housing construction over the previous decade now barely exceeds the lowest level of any ten-year period in records dating back to 1974."


Hopes of a housing turn-around depend largely on two groups: boomers and those in their 20s.


Authors of the housing paper say the majority of boomers, born from 1946 to 1965, will likely stay in their current homes and "age in place." However, an estimated 3.8 million people in this age range are expected to move to smaller units and gravitate toward "preferred retirement destinations," including areas in the South and West, the report says.


Meanwhile, more "echo-boomers" - those born after 1986 - are expected to move out of Mom and Dad's place and into starter apartments, although that impact hinges mainly on job creation.


Home prices have dropped drastically during the last three years throughout the U.S., causing real home equity to fall from $14.9 trillion at its peak in early 2006 to $6.3 trillion at the end of 2010. 


Despite new levels of affordability and the continued aspiration to own, many potential homebuyers can't afford the higher down payments, income requirements and credit score minimums. 


Those factors have kept many from entering the starter-home market, especially minorities, whose average incomes are on average lower than whites, the report says.


As the owner-occupied market suffered, the rental market picked up: vacancy rates fell and rents rose, a scenario that has played out in San Diego County. 


"If employment growth, especially among young adults, continues to pick up and homeownership rates continue to slide," the report says. "renter household growth should remain strong." That in turn will result in higher demand in rental housing, perhaps prompting more multi-family construction, authors say.


Gary Painter, director of research at University of Southern California’s Lusk Center for Real Estate, told the Union-Tribune last week it will take two years before people buy again. Meanwhile, the rental market will be the first to pick up. 


Recovery-wise, California is among five states that have "the farthest to go." What's critical to a recovery, Harvard experts say, is an increase in the creation of households, which will help the rental market. Also a factor is consumers' perception that prices have hit bottom. Once that happens, buyers on the fence will return to the market and "quickly burn through the lean inventory" and "slim down the excess supply," the report says.

Continue to read on here: Will boomers and 20-somethings carry housing recovery?

Homes in San Diego County will always be a good investment on the
long term despite all the bad news.  This last decade has shown that
loose lending practices promoted by the government, lenders, and even
realtor groups with the good intension of increasing home ownership
failed.

San Diego Union Tribune

San Diego homeownership drops in past decade

BY LORI WEISBERG

A prolonged housing crisis and recession erased all of the homeownership gains of the last 10 years, leaving San Diego Countywith a lower proportion of owners than at the start of the decade, new census figures show.

The county’s 2010 homeownership rate now stands at 54.4 percent, down from 55.4 percent in 2000, according to the decennial census data released today. That's far below the 58.2 percent rate in 2005, when San Diego’s housing market was booming and the ranks of homeowners swelled to nearly 606,000. By 2010, the county had nearly 15,000 fewer homeowners than during the housing peak.

While the overall number of homeowners did indeed rise — from 551,461 in 2000 to 591,025 in 2010 — the 7 percent increase lagged the overall growth in households and was far behind the 12 percent increase in renters, the 2010 census data revealed.

The slide mirrors the state of California, which saw its homeownership fall from 56.9 percent in 2000 to 55.9 percent in 2010.

For years, San Diego’s rate has hovered around 55 percent, falling to as low as 54 percent in 1990 and historically has trailed that of the state and nation. In fact, it is unlikely that in a high-priced area like San Diego the proportion of homeowners would ever approach the nationwide rate of 66 percent.

Housing experts, who expect the county’s homeownership rate to fall even further as more homes are foreclosed on, point out that the mid-decade spike in owner-occupied homes was an artificial gain, propelled by lax underwriting standards and rampant subprime lending. The reality is that the thousands of renters who were transformed into owners should never have purchased to begin with, they argue.

“The 3 to 4 percent of households at the margin who would normally be renters became owners because of the easy underwriting and subprime lenders and this psyche that you can never lose on housing.," said Norm Miller, a real estate professor at the University of San Diego.

"When prices were going up, everyone wanted to have a home as an investment, but that American dream was false and not sustainable. Now that the rate is lower, we don’t need to feel so bad because people aren’t getting as wealthy from their homes as they were during a very brief time in our history.”

The years between 2000 and 2010 were probably one of the most volatile periods in San Diego’s real estate market, considering the huge spikes in sales and prices followed by a precipitous decline in values and mushrooming foreclosures.

In 2004, housing sales peaked at more than 68,000, almost twice what they were last year. By 2008, the number of homes lost to foreclosure had ballooned to more than 17,000 as increasing numbers of borrowers found themselves saddled with debt that exceeded the value of their homes, according to DataQuick Information Systems. By contrast, the number of foreclosures between 2000 and 2005 never even reached 1,000 in any one year.

Continue to read on here: San Diego homeownership drops in past decade

This is very important information for the young people who want to buy homes in San Diego.

FOR YOUNG BUYERS, HOUSING BUST IS A BOON

ROBERT J. SAMUELSON

Newsweek

If you're a 20-something or even younger, your economic future is at best clouded.

Your taxes will almost certainly be higher than today's; your public services (schools, police, sanitation, defense, scientific research) will almost certainly be lower. Paying for old people, covering rising health costs, repairing dilapidated roads and servicing government pensions and the huge federal debt will squeeze take-home pay. Is there any hope for economic gains?

Well, yes – and from a surprising source. Housing.

Say what?

Almost everyone considers the housing collapse a disaster, and it is. Since 2007, roughly 8 million homes have gone into foreclosure.

Housing prices, according to the widely cited Case-Shiller index, are down about 33 p ercent from their 2006 peaks. They're still falling, albeit at a slower pace. In some cities (Atlanta, Cleveland, Las Vegas, Detroit, Phoenix), they're at or below 2000 levels. Home sales are stunted, and construction is a quarter of its previous peak.

Housing's implosion retards the economic recovery. Aside from unemployed carpenters and real estate agents, there's much unsold lumber, carpet and appliances.

But housing's troubles may have a silver lining. If you're a homeowner, the steep fall in prices is calamitous. But if you're a future buyer, it's a godsend. What we're seeing is a massive wealth transfer from today's older homeowners to tomorrow's younger homeowners. From year-end 2006 to 2010, housing values fell $6.3 trillion, reports the Federal Reserve. Assuming there's no sharp rebound in prices – a good bet – that's $6.3 trillion the young won't pay.

Up to a point, the lower home prices merely deflate the artificial "bubble." But there's evide nce that the declines transcend that.

The National Association of Realtors routinely publishes a housing "affordability" index, which judges the ability of median families to buy the median-price home at prevailing interest rates. By this measure, existing homes are the most affordable since the index started in 1970.

Young buyers "will be able to enter the housing market at bargain prices," argues NAR economist Lawrence Yun. When home prices again rise, increases will parallel income gains, meaning that the relative burden of housing costs will remain roughly stable, Yun says. He expects only modest increases in interest rates.

(A one percentage point rise – say, from 5 percent to 6 percent – on a $150,000 mortgage boosts the monthly payment about $95.) Falling real estate prices have also affected new homes. They're getting smaller and less embellished, as they must. New homes typically sell at a 10 percent to 20 percent premiu m over comparable existing homes.

If prices don't fall, buyers won't buy. From 1973 to 2007, the size of the average new home grew by about 50 percent, from 1,660 square feet to 2,521 square feet. By 2009, that was 2,438 square feet, with more declines expected. "People have become much more value oriented," says Jeff Mezger, CEO of KB Home, a major builder. At the height of the boom, with cheap mortgage credit widely available, overconfident buyers selected five-bedroom homes with Jacuzzis and granite-top kitchen counters, he says. Now, buyers favor practical amenities: more kitchen cabinets and bigger closets.

We are, perhaps, at a historic juncture. The relentless expansion of home size since World War II – encouraged by federal subsidies, including the mortgage- interest tax deduction – arguably resulted in many Americans being "over-housed."

Homes grew beyond what was "needed" or could even be enjoyed. The reason they kept expanding, Cornell economi st Robert Frank has argued, was social competition. People want to be in the "best" neighborhoods with the "best" schools, and these neighborhoods have ever larger homes. Somewhat smaller homes, Frank contends, wouldn't make people less happy.

If the housing collapse mutes this self-defeating syndrome, the main beneficiaries will be today's young.

Their homes will be somewhat cheaper and smaller; their operating costs (mainly utilities) will be somewhat lower. The sacrifices in living standards will be barely noticeable, and the savings – housing, after all, represents most families' largest expense – will provide some relief from higher taxes and health costs.

Caveats apply. Housing markets are famously local; what's true in one won't be true in another. Moreover, the housing bust still looms large. The young are staying or returning home; new household formations are less than half of previous levels. Mortgage credit is constricted. Private lenders, on ce promiscuous with loans, are now prudish. Fannie Mae and Freddie Mac are in a state of transition – to what, no one knows.

The price adjustment, especially for new homes, is incomplete. Unless these problems are overcome, housing construction will remain depressed. Eventually, the scarcity of homes would push prices up.

But crises pass and have unintended consequences.

The young just might catch a much-needed break from this one.

3 1/2 percent is the:
Average rate of growth expected this year in U.S. home-improvement industry.

The gain, which follows a decline that started in the third quarter of 2007, may come as property owners who scrimped during the recession spruce up kitchens and bathrooms. Spending probably will rise 9.2 percent to $125.1 billion in the first quarter from $114.6 billion a year earlier, and 13 percent in the second quarter, according to Harvard University's Joint Center for Housing Studies. Spending fell to a six-year low of $112 billion in 2009. The center measures data including hours worked by remodelers and retail sales at building materials stores, according to Bloomberg News.

Continue to read on here: San Diego Union Tribune

A look at what San Diego has to offer after 55!

"Home" A place of solice, comfort, and peace. A place to rest, to dine, to rejuvenate, to play, to interact with friends and family.

At Realty Experts we are your partner in real estate. We help you look for and acquire the house that can be your "home". Whether selling and buying or buying for the first time we are here to help.

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Our goal is to give you the service you need in such a way as to earn your continued trust in all your real estate needs and to give you the confidence to refer your friends and relatives to us.
Now is the time to buy, or sell in order to buy that future home you have always wanted. Interest rates and prices are still low but just beginning that slow climb back up. Now is: "Not a time to wait!"

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