Real Estate Information Archive

The San Diego County Clerk's office just released an update on foreclosure activity in the County for the first half of 2009. 

Compared to 2008, we have seen an 8% increase in the number of Notices of Default filed.  However, actual foreclosures are down by 23% for 2009 when compared to last year's numbers through July.

We are definitely seeing clients opting for short sales and/or loan modifications in an effort to prevent foreclosure.  We also know that the banks have been holding off on the foreclosure process as well.  One concern is that we will encounter a tidal wave of foreclosures that have thus far been in a holding pattern these last few months.  I think everyone is holding their breath to see if that happens or not.  Stay tuned for further updates.

 Click here to see the Recorder's full report.

The market is moving here in San Diego, folks!  Prices and sales activity are on the rise and we are definitely seeing multiple offer scenarios on homes in the lower price ranges.  Note that we are down to just a one-month supply of detached and a three-month supply of attached homes under $300,000.  Homes in the $900,000+ range are at a very high 16-month supply.  So, what we have are essentially two markets delineated by the conforming/non-conforming loan limits.  It's a seller's market at the low-end and a buyer's market at the high end.

Click here for the most recent San Diego Market trends.

For the full run-down, please check this link:  http://www3.signonsandiego.com/stories/2009/jun/18/1b18housing213947-regional-home-prices-end-2-year-/?uniontrib&dsq=11136516#comment-11136516

Yes, it's true, folks.  San Diego County saw a $5,000 increase in home prices from April to May.  This price increase is the first we've seen since July 2007.  While we don't know if it necessarily reflects a true increase in value (we'll need to see this occur over multiple months), it does indicate that progress in happening, i.e. some higher price point homes are selling. 

To give you some idea of where the activity in the market is, sales below $500,000 made up 83% of all transactions.  And what I'm seeing is that the price point is even lower than that:  people are in crazy bidding wars for homes less than $300,000.  Unfortunately, my clients have been having to pariticpate in those wars and it's not much fun for anyone.  Hang in there, homebuyers!  It just takes time....

Uh oh!!  As you probably already know, interest rates saw a rapid & high jump on Wednesday, from 4.875% to 5.5%.  This means that a client will now have to pay quite a bit more money to purchase the same house.  One of our preferred lenders has advised that rates are now back down to 5.125%, but no one is sure we will see those super-low rates again anytime soon.

Economic reports are showing that 5% of prime loans are now delinquent, along with 22% of sub-prime loans (this does not take into account those that are already in foreclosure).  Yikes.

Sadly, what is one person's trial can be another person's boon:  purchasing property at rock-bottom pricing.  Buyers are everywhere, as can be seen from the multiple-offer situation we are often finding ourselves in.  It's tough to compete with 30 or 40 other offers, but it can be done.

Check it:

http://www.hud.gov/news/release.cfm?content=pr09-072.cfm

Straight from the horse's mouth.

Finally!  It's the news we've been waiting for!  The Federal Housing Administration said they are now considering an action to allow new home buyers to use their tax credit toward their down payment.

Currently, homebuyers can receive an $8,000 credit if they are first-time purchasers & meet certain income limitations.  I actually had a client last year who was supposed to close in December, 2008.  Thankfully, due to delays with the lender, he closed in January of 2009 and, guess what?!  Because of that delay, he was able to then qualify for the $8,000 tax credit.  He received the money back when he filed his taxes this year.

Details aren't out yet, but we will let you know as soon as we've heard something.  So, now, you won't really have an excuse to not buy a home, right?

The City and County of San Diego, along with the City of Chula Vista, are launching a neighborhood stabilization program designed to transform renters into homeowners, while simultaneously helping to revitalize some of the hardest hit neighborhoods in San Diego.

Subsidized loans that offer significantly lower monthly mortgage payments will be available to low- and middle-income households.  The one catch is that it must be a foreclosure property in a designated "high foreclosure rate" community.  There is also a federal stipulation that the home be purchased at 15% below appraisal value, which may be challenging here in San Diego's highly competitive REO market.  Officials are hopeful that this requirement will be reduced to 5% below appraisal value soon.

Home purchasers must make a down payment of 3%-5% of the purchase price.  The financial assistance comes in the form of a second loan that does not need to be paid back on a monthly basis.  It is paid back in full upon the sale of the home and, if the home is sold within the first 15 years of ownership, the appreciation must be shared with the City.  The County's program requires the loan be paid back in full, along with 3% interest, at the sale of the property if it has been held for less than 15 years.  If owned for longer than 15 years, the loan is forgiven.

Since the program's launch in March, none of these loans has closed successfully, so it will be interesting to see if officials can synch it up with San Diego's fast-paced REO market.

For more information, please visit: http://www.sdhc.org/NSP.shtml

I'm often asked if this is a good time to buy a home. Some clients are concerned that home prices may fall further than they have already. They are assuming that the best course of action is to wait for the bottom in the market and then buy. The problem with this approach is that you don't know where the bottom is until you see it in the rear view mirror, meaning until you've missed it!

Home prices are one factor in determining your cost of ownership, but so are interest rates and financing availability. Since your monthly mortgage payment is a combination of paying down your principal and paying the interest owed, if home prices come down a little further but interest rates go up, it could cost you even more to service a mortgage on an identical home!  Right now, we have the unique situation of low prices AND low interest rates:  that doesn't happen often!

While a home is a major investment, it is also the center of your personal life. It's important to live in a home that reflects your taste and values, yet is within your financial "comfort zone." To that end, it may be more important to lock in today's relatively low interest rates and low home prices, rather than to hope for a further break in prices in the future.

Please give me a call if I can be of any assistance in determining how much home you can afford in today's market.