North County San Diego Real Estate News

Median Home Prices Show First Increase Since 2006

cbarden — Tue, 17 Nov 2009 20:52:52 +0000

MEDIAN HOME PRICES SHOW FIRST INCREASE SINCE 2006

San Diego County showed their first year increase since June of 2006, according to DataQuick yesterday. It wasn’t a big increase however it was significant enough to show we might be at a turning point in the real estate market.

“It’s a reflection of a market that has stabilized in many areas”. DataQuick analyst

The overall median home price went from $350,000 to $360,000 a change of +2.9%. We have seen a drop in prices over the past 13 months so this is very strong indicator of things to change. Many analysts feel the government involvement has helped buyer/investors join the market, with all time lower interest rates, FHA insured loans, and the treasury department taking over Freddie mac and Fannie mae. They have also just extended the homebuyer credit for another six months which could help the market keep its pace.

The one concern many analyst have is who is driving the market. The majority of sales (36%) have involved homes foreclosed on in the previous 12 months, dataquick said. This has become a sellers market for certain types of product in certain locations. What would help the market even more is sales activity in higher-priced neighborhoods. Transactions have remained low since sellers have not reduced enough and financing can be difficult in these price ranges. If we do not see a new wave of foreclosures flood the market due to loans going bad and some movement in the higher end home prices we should be able to maintain a stabilized market.

The overall housing picture appears to be turning around. We have turned some major corner with increase of sales and home prices increasing slightly. If the interest rates stay low and the supply stays steady we should see this market continue to climb

$6,500 Tax Break for Homebuyers

cbarden — Thu, 05 Nov 2009 17:32:51 +0000

Congress expands its popular incentive program to include a whole new crop of buyers. Congress passed a bill yesterday that will extend the homebuyer credit of $8,000 to new homebuyers and $6,500 to existing homebuyers until April 30, 2010. Congress feels this will help keep the housing market going. The house is still schedule to vote this week on the extension.

The credit is available for the purchase of principal homes costing $800,000 or less, meaning vacation homes are ineligible. The credit would be phased out for individuals with annual incomes above $125,000 and for joint filers with incomes above $225,000. The credit would be extended an additional year, until June 30, 2011, for members of the military serving outside the United States for at least 90 days.

Buyers who have owned their current homes at least five years would be eligible for tax credits of up to $6,500. First-time homebuyers — or anyone who hasn’t owned a home in the last three years — would still get up to $8,000. To qualify, buyers in both groups have to sign a purchase agreement by April 30, 2010, and close by June 30. In order to qualify for this tax break . Some congress feel this was a free gift to some homebuyers since this incentive played no roll in them making the decision to buy a home, while others who decided to buy a home because of this tax credit make us wonder whether we are subsidizing people who shouldn’t be buying a home in the first place.

“This is probably the last extension,” said Sen. Johnny Isakson, R-Ga., a former real estate executive who championed the credits.

So if you are a buyer who is sitting on the fence of whether to buy a home or not this might be the thing that gets you to decide.

Thanks for reading…..

Signs suggest county housing market recovering

cbarden — Wed, 01 Apr 2009 17:09:41 +0000

According to an article in the Union Tribune today home sales in San Diego County have had a rise month over month. Most economist feel that we are starting to see a slow down of decline in the San Diego real estate market. The first step, meanwhile, is recovery in the lower end, anaylist say. LePage said that’s clearly occurring, as bargain-hunting has “exploded” in neighborhoods dominated by distressed properties. For example, Oceanside’s is four times its average sales, according to an analysis provided by dataquick based on the last nine years of sales by Zip code.

When sales outside of the foreclosed properties start rising, that’s the start of a recovery. this hasen’t happened yet, your getting a lot of low end sales. The investors are getting in is a sign that prices are reaching their bottom because investors want to pounce when they think prices are reaching their bottom. When you ask people why they are buying at this time they say they think it’s time, that the market is not going to get more depressed.

The buz word for the new up market is “Flat”. The market is starting to flaten out and that is why so many buyers are taking advantage of these great deals.

Mortgage Rates inch Downward 5.37%

cbarden — Sat, 21 Mar 2009 00:23:40 +0000

Hope everybody has had a good week. Its friday and I wanted to get something on my blog. I saw this article in the CNN Money about interest rates, always important to follow whats going on if you are going to buy in the near future.

Please enjoy and keep reading…….

Mortgage rates slipped last week, according to a weekly survey released Thursday.

The average 30-year fixed mortgage fell to 5.37% for the week ended March 11, according to Bankrate.com. Rates were little changed from four weeks ago, when they averaged 5.34%.

The average jumbo 30-year fixed rate rose to 6.99% from 6.77% in the prior week.

The average 15-year fixed rate mortgage slipped to 4.88% from 4.94% a week earlier.

Adjustable-rate mortgages were also mixed, with the 1-year ARM rising to 5.58% from 5.43%; the 5/1 adjustable-rate mortgage decreasing to 5.34% from 5.39%.

“Downward pressure on rates is certainly welcome news, but there’s no clear direction at the moment that we can discern,” according to Keith Gumbinger, vice president of HSHAssociates.com, an online publisher of consumer loan information.

A year ago, the average 30-year fixed mortgage rate was 6.39%, meaning a $200,000 loan would have carried a monthly payment of $1,249.70, according to Bankrate.com. With the average rate now at 5.37%, the monthly payment for the same size loan would be $1,119.32, a savings of $130.38 per month.

The lack of private investment in the mortgage market has kept rates from climbing back toward those year-ago rates, Gumbinger said. Most of the mortgage financing is coming from government-backed institutions such as Fannie Mae (FNM, Fortune 500), Freddie Mac (FRE, Fortune 500) and the Federal Housing Administration.

“There are very few investors interested in investing in mortgage-backed securities,” said Gumbinger.

0:00 /2:23Mortgage brokers face bankruptcy

Low mortgage rates spurred an 11.3% growth in applications last week, according to a report from the Mortgage Bankers Association. Most of them were from existing homeowners seeking refinancing.

However, many of the requirements that borrowers need to meet to obtain a home loan – such as a large down payment, good credit or home equity (for refinancing) – are increasingly difficult to meet. “A lot of borrowers find themselves unable to get over the hurdles to get today’s lower rates,” Gumbinger said.

An increasing number of existing homeowners have found themselves owing more on their homes than what they are worth – a problem that led to an unexpected jump in foreclosures last month, according to a report released Thursday.

Congress is currently debating a bill that would allow bankruptcy judges to reduce mortgage debt for bankrupt homeowners as a last resort for preventing foreclosure.

Supporters say the bill will significantly reduce the foreclosure rate, but opponents say that mortgage modification could further pull investment out of the mortgage market.

Allowing judges to modify loans would add a new layer of risk for mortgage investors, which would drive up costs and thus mortgage rates, according to Gumbinger. “This is not a well-trodden path, nor is it well understood,” he said.

Bankrate.com’s national weekly mortgage survey is conducted each Wednesday from data provided by the top 10 banks and thrifts in the top 10 markets.

Schedule for Maintenance on your Home

cbarden — Mon, 16 Mar 2009 21:01:08 +0000

I had this document I like to send out to my client base every spring, so I thought I would add it to my blog for all to benefit.

Maintenance Schedule

Every Month:

Wood Cabinets – Apply a lemon oil based wood protection product

Furnace/Air Conditioning – Inpsect filters for dust. Clean and replace filters as needed

Plumbing – Check under kitchen and bathroom cabinets for leaks. Check the area around the hot water heater for leaks.

Faucet Aerators - Check for proper flow of water. If the flow is reduced, clean the aerator screens. during the first two months, the faucet aerators could require more frequent cleaning.

Every 2 Months:

Exterior Doors – Lubricate hinges and locks if required. Inspect finish for cracks and peeling. Use touch-up paint where required

Every 3 Months:

Interior Doors - Lubricate hinges.

Garage Doors – lubricate hardware. Inspect mechanism for free travel. Adjust if necessary

Every 6 Months:

Kitchen Tile Grout – Inspect for loose or missing grout. Re-grout if necessary. Re-caulk at the edge of the backsplash if necessary.

Tiled Areas – Inpsect caulked areas for missing or damaged caulking. Re-caulk if necessary.

Shower Doors – Inspect for proper fit. Adjust if necessary. Inspect caulking are re-caulk if necessary

Tub Enclosures – Inpsect for proper fit. Adjust if necessary. Inspect caulking and re-caulk if necessary

Front Doors – Repaint if necessary. Consult your Homeowners Association Regulations before you change the exterior paint color of your doors.

Every 12 Months:

Exterior Paint – Inspect for cracked and peeling paint. Repair and repaint if necessary. Consult your Homeowners Associaton regulations before you change the exterior paint colors. Southern and western expolsures are especially subject to peeling and cracking. Inpsect these areas twice a year. Repaint as necessary. French and wood doors should be repainted annually.

Roof – Inspect for damaged tiles after storms and high winds. An annual inspection by a roofing professional is recommended.

Gutter – clean debris from gutters every six months and after storms

Furnance – We recommend an inspection by a heating professional every year

I hope these ideas help you keep your home in great condition. If you need any other ideas for upgrading your home please visit my website

Home Sales in Carlsbad/North County has Risen

cbarden — Tue, 10 Mar 2009 16:17:33 +0000

According to the NBC 7 news channel the rise of home sales has gone up in the North County. they believe the reason behind this increase is the great deals on foreclosed homes in the area (REO’s).

According to the news caster the SD/Carlsbad area is one of the top GROWTH areas for home sales – people are bidding crazy on distressed properties and it’s in the top 10 or 20 growing areas (for sales) nationwide, with an increase of over 22%!!!

As I have been telling my clients if you find a home you like in an area you like you should purhcase the home. I have a few clients in the $400,000 to $500,000 price range we have been out bid on many homes. You need to make sure that you have your lender in order and are ready to make an aggressive offer. Per the offer’s I have submitted for clients the homes are going a little over asking around 2 to 5% over.

With the interest rates low and home at 1999 list prices, its a great time to get a deal. Please give me a call (760)815-3866 or check out my website http://www.encinitasproperties.net for listings of homes in the North County.

thanks for reading…..

Interest Right Off on Homes???

cbarden — Tue, 03 Mar 2009 19:08:31 +0000

According the Associated Press Obama’s budget committee is thinking of changing the tax rules to cover for the deficit we will have in 2009.

Read the article below:

WASHINGTON – White House Budget Director Peter Orszag on Tuesday defended President Barack Obama’s $3.6 trillion federal budget and its proposal to raise taxes on more affluent Americans.

“We have lived through an era of irresponsibility,” Orszag told the House Budget Committee. “Looking forward, we must change course.”

Lawmakers in both parties have questioned Obama’s call to reduce high-income earners’ tax deductions for the interest on their house payments and for charitable contributions. Also drawing fire is his proposal to start taxing industries on their greenhouse gas pollution — a move sure to raise consumers’ electric rates.

Rep. Paul Ryan, R-Wis., called Obama’s plan “a truly sweeping transformation of the federal government, the likes of which we have not seen since the New Deal.” Ryan also warned that tax increases on small businesses earning more than $250,000 a year would stunt a possible recovery.

But, countered Orszag, “The new administration has inherited an economic crisis unlike any we have seen in our lifetimes.”

Obama dispatched both Orszag and Treasury Secretary Timothy Geithner to Capitol Hill to defend the budget, with its proposed tax increases and the whopping $1.7 trillion annual budget deficit it would generate for 2009.

Geithner was to appear before the tax-writing House Ways and Means Committee.

Obama and his top aides have been promoting the budget package since unveiling an outline last week, but Tuesday provided lawmakers their first opportunity to publicly question top officials over details.

The one-year budget deficit for 2009 is 12.3 percent of the nation’s gross domestic product. That’s up from 3.2 percent in 2008 and the highest since 1945.

Orszag acknowledged the sheer enormity of the projected deficit. But, he told the Budget Committee, it would be “worse if we failed to act.”

Obama’s budget faces a difficult path through Congress because of its many controversial proposals on health care, taxes and global warming.

Meanwhile, Federal Reserve Chairman Ben Bernanke was generally supportive of Obama’s efforts to stimulate the economy.

Bernanke, who was appointed to the top Fed job in 2006 by then-President George W. Bush, told the Senate Budget Committee that Obama’s recently enacted $787 billion stimulus package of increased federal spending and tax cuts should help revive consumer spending, boost factory production and “mitigate the overall loss of employment and income that would otherwise occur.”

Still, the Fed chief warned that the timing and magnitude of the impact of the stimulus package is subject to “considerable uncertainty, reflecting both the state of economic knowledge and the unusual economic circumstances that we face.”

Asked whether Obama’s economic assumptions in his budget are too rosy, Bernanke said although they are a little more optimistic than the Fed’s projections, “these things are hard to predict with precision.”

The Fed chief found himself challenged over the need for the government’s new $30 billion lifeline for ailing insurance giant American International Group. The latest plan, announced Monday, marked the government’s fourth effort to stabilize AIG.

“I share your anger,” Bernanke said. But he said the government had little choice but to take the action because the collapse of the insurance company would further rock the nation’s weakened economy.

Bernanke testified that an economic recovery depends on the government’s ability to stabilize weak financial markets.

The economy was taking another hit a day after the Dow Jones Industrial Average plunged below 7,000 for the first time since 1997.

An early rebound on Tuesday gave way to another round of selling by midday.

Obama insists he would impose higher taxes only on the wealthiest. Republicans, however, say Obama’s energy proposal amounts to a tax that would increase energy costs for all Americans.

“This massive hidden energy tax is going to work its way through every aspect of American life,” said Rep. Dave Camp of Michigan, the top Republican on the Ways and Means Committee. “How we light our homes, heat our homes and pay for the gas in our cars, in every phase of our daily lives, we will be paying higher costs.”

Obama wants to reduce the emissions blamed for global warming by auctioning off carbon pollution permits. The proposal, known as cap and trade, is projected to raise $646 billion over 10 years.

Most of the money would be used to pay for Obama’s “Making Work Pay” tax credit, which provides up to $400 a year to individuals and $800 a year to couples. The plan also would raise money for clean-fuel technologies, such as solar and wind power.

Orszag acknowledged that the energy proposal would increase costs for consumers, but he argues that the vast majority of consumers will get tax breaks elsewhere in Obama’s budget package.

I believe that maybe their are somethings that we can do to help the economy, but I feel when you take away the right to write off your interest on your home, that could affect the California Real Estate market. If you are paying over one million for a home, chances are you make more than $250,000 a year combined income. I think they should stay away from discouraging anyone from purchasing a home in this market.

Benefits of the Stimulus Bill for Home Buyers

cbarden — Thu, 26 Feb 2009 18:16:23 +0000

Tax Credit for Homebuyers
First-time homebuyers who purchase homes from the start of the year until the end of November 2009 may be eligible for the lower of an $8,000 or 10% of the value of the home tax credit. Remember a tax credit is very different than a tax deduction – a tax credit is equivalent to money in your hand, as opposed to a tax deduction which only reduces your taxable income.

The tax credit starts phasing out for couples with incomes above $150,000 and single filers with incomes above $75,000. Buyers will have to repay the credit if they sell their homes within three years.

Tax Credit Versus Tax Deduction

It’s important to remember that the $8,000 tax credit is just that… a tax credit. The benefit of a tax credit is that it’s a dollar-for-dollar tax reduction, rather than a reduction in a tax liability that would only save you $1,000 to $1,500 when all was said and done. So, if a homebuyer were to owe $8,000 in income taxes and would qualify for the $8,000 tax credit, they would owe nothing.

Better still, the tax credit is refundable, which means the homebuyer can receive a check for the credit if he or she has little income tax liability. For example, if a homebuyer is liable for $4,000 in income tax, he can offset that $4,000 with half of the tax credit… and still receive a check for the remaining $4,000!

Phaseout Examples

According to the plan, the tax credit starts phasing out for couples with incomes above $150,000 and single filers with incomes above $75,000.

To break down what this phaseout means to homebuyers who are over those amounts, the National Association of Homebuilders (NAHB) offers the following examples:

Example 1: Assume that a married couple has a modified adjusted gross income of $160,000. The applicable phaseout to qualify for the tax credit is $150,000, and the couple is $10,000 over this amount. Dividing $10,000 by $20,000 yields 0.5. When you subtract 0.5 from 1.0, the result is 0.5. To determine the amount of the partial first-time homebuyer tax credit that is available to this couple, multiply $8,000 by 0.5. The result is $4,000.

Example 2: Assume that an individual homebuyer has a modified adjusted gross income of $88,000. The buyer’s income exceeds $75,000 by $13,000. Dividing $13,000 by $20,000 yields 0.65. When you subtract 0.65 from 1.0, the result is 0.35. Multiplying $8,000 by 0.35 shows that the buyer is eligible for a partial tax credit of $2,800.

Remember, these are general examples. You should always consult your tax advisor for information relating to your specific circumstances.

Homes that Qualify

The tax credit is applicable to any home that will be used as a principle residence. Based on that guideline, qualifying homes include single-family detached homes, as well as attached homes such as townhouses and condominiums. In addition, manufactured or homes and houseboats used for principle residence also qualify.

Higher Loan Amounts

More good news – there is an extension on the additional tier of conforming loan amounts which had been first established in 2008. This tier of home loans are those greater than $417,000, and with a maximum that depends on the area, but is not greater than $729,750. These loans will again be eligible for rates that are slightly higher than conforming loan rates, but less expensive than the standard “jumbo” loan rates.

Additional Housing-Related Provisions

Tax Incentives to Spur Energy Savings and Green Jobs — This provision is designed to help promote energy-efficient investments in homes by extending and expanding tax credits through 2010 for purchases such as new furnaces, energy-efficient windows and doors, or insulation.

Landmark Energy Savings — This provision provides $5 Billion for energy efficient improvements for more than one million modest-income homes through weatherization. According to some estimates, this can help modest-income families save an average of $350 a year on heating and air conditioning bills.

Repairing Public Housing and Making Key Energy Efficiency Retrofits To HUD-Assisted Housing—This provision provides a total of $6.3 Billion for increasing energy efficiency in federally supported housing programs.Specifically, it establishes a new program to upgrade HUD-sponsored low-income housing (for elderly, disabled, and Section to increase energy efficiency, including new insulation, windows, and frames.

Expanding Housing Assistance—This provision increases support for several critical housing programs. It includes $2 Billion for the Neighborhood Stabilization Program to help communities purchase and rehabilitate foreclosed, vacant properties.

More Help for Homeowners in the Future
Another thing to keep an eye on in the coming weeks is President Obama’s plan to help struggling borrowers before they are faced with a default on their mortgage.

According to reports, the Obama administration is discussing plans to help borrowers who are struggling to stay afloat, but who have not yet fallen behind on their payments. At this point, details are scarce; however, reports indicate that President Obama is looking to spend approximately $50 Billion to directly help homeowners before they face foreclosure and financial disaster.

While this is good news for individual homeowners, it will likely be good for the housing industry as a whole. That’s because, assisting struggling borrowers before they default should help stop the wave of foreclosures, which are estimated to top two million this year. That, in turn, will help stabilize home prices.

California Association of Realtors Disclosures

cbarden — Tue, 24 Feb 2009 17:30:32 +0000

I have to write about a pet peave of mine. I am so tired of Sellers’ agent not explaining to their sellers how important it is to feel out the California Assocication of Realtors(CAR) disclosures. It seems like 8 of 10 times when I get disclosures from the sellers agent they are not completely filled out and very inaccurate.

I have a deal currently going thru escrow and when I recieved my Transfer Disclosure Statement (TDS) and Seller Property Questionaire (SPQ) both documents had mutlitple inaccurate answers. Let me give you an example of two questions that they answered now that you know the home they are selling.

2. Is the features of the property shared in common with adjoining landowners, such as walls, fences, and driveways, whose use of responsibility for maintenance may have an effect on the subject property? The seller answered …NO

14. Any “common area” (facilities such as pools, tennis courts, walkways, or other areas co-owned in undivided interest with others)? the seller answered….(NO)

The home my buyer is in the process of purchasing is a condominum in a mid-rise building (14 stories). There is approximately 94 other units in this building. This building has a gym, meeting room, bbq’s outside for everyone to use, lobby, elevators and storage rooms. Don’t you think that these answers should be “Yes”? These are only two questions that are so obviously incorrect. When you see that they answered these question wrong you begin to wonder if they read any of the questions.? I think sellers feel if they say “no” then there will be no problems.

However what a sellers’ agent needs to explain to their client is that these disclosure are for their protection. It’s very important that they disclose all know facts to the buyer, reliving them of any recourse. If the seller discloses and the buyer still purchases he/sher has no case down the road.

I am writing this blog in the hope that when you go to sell you will take your time filling out the C.A.R. disclosures, for your own protection.

Is it time to Buy or Is the marketing still declining

cbarden — Fri, 20 Feb 2009 21:46:36 +0000

Over the past month I have noticied a lot of my buyers are begining to stop looking and deciding to wait to purchase. I think poeple are wanting to see what this stimulus package is going to do to the economy and the real estate market. The one problem with this thinking is you could loose on a great home. We are currently seeing home prices back to the 2002 prices. We just don’t know whether they will drop to the 1998 prices. I think for a buyer to wait to see if the home will drop another $10,000 on a home priced in the low $400’s might not be accurate. If you find a home in the right location and good floor plan I think the $10,000 will be small be nothing when you go to sale your home.

However if you are not crazy about a house and have doubts than I would not purchase the nice thing about a buyers market is the buyer has choices and time. This buyers market also has some great interest rates, which I believe have come down again this week. I have a client who is getting a loan on a purchase with a 4.62% interest rate. Thats a great rate and we have had a lot of properties to pick and choose from.

If you are a buyer and are on the fence, just remember when you are buying if you can find a home you like in a great LOCATION…you should purchase.

HAPPY HOUSE HUNTING!!! PLEASE VISIT MY WEBSITE AT HTTP://WWW.COASTALHOMESINSANDIEGO.COM to view my REO listings and get more information and the local areas.