Archive for January, 2010
Does San Diego have a shadow housing inventory?
January 30th, 2010 Categories: Real Estate News
SAN DIEGO- I still hear quite a bit of chatter regarding the real estate boogieman known as
“SHADOW INVENTORY”. This boogieman is singlehandedly going to plunge the San Diego real estate into pricing depths never seen in this area and our fate rests in the hands of the evil banking empire patiently waiting to release this beast!!!
Me, I say turn on the lights of common sense and, while I have not been invited in to any boardrooms, I submit the following.
Take a look at the graph pictured. While from July 2008 to March 2009, foreclosures trended down in San Diego approximately 63%, number of homes sold, through data obtained from the Sandicor MLS, actually increased approximately 20% from a monthly average of 2500 to 2977.
Additionally, as reported in the San Diego Union Tribune, “listings since July have dropped 35.6 percent to 4,706 single-family resale homes, according to the San Diego Association of Realtors. Resale condo listings were down 45.4 percent to 2,571.” This is conspicuously close to the 34% drop 
in foreclosures in the same time period.
Lastly, in the Case-Schiller index, San Diego was ranked number four in home pricing increase out of their top 20 metropolitan markets and according to Dataquick, San Diego led the southern California region with a 10% gain in home prices over December 2008.
So, here is where my common sense kicks in, for better or worse.
Let’s say I’m a decision maker at a bank and I have an inventory of homes. We know 1) the federal tax rebate program is coming to an end and most likely will not be renewed a second time 2) listings are down over 30% 3) interest rates are expected to rise throughout 2010 4) pricing is up double digit in the market and 5) the San Diego market is showing stability and price growth in two indexes. My decision………. let’s sit on the inventory and see if the market conditions get better!!!
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FHA suspends 90 day anti-flip rule
January 16th, 2010 Categories: Real Estate News
SAN DIEGO- Well there’s more good news for homebuyers. FHA loans, which already make up a 
large portion of our current market, can now be used to buy homes that are being ‘flipped’. Starting February 1, the FHA 90 day anti-flip rule will be suspended for one year.
While this may seem like a boom to flippers, there is a clause limiting the seller’s profit to not more than 20% unless an appraiser can justify the added value from repairs and renovations.
The move will open a new pool of homes to first-time homebuyers who have been losing bids to cash buyers, but shouldn’t have much effect on home prices, analysts said.-nctimes.com
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Free e-waste recycling events
January 9th, 2010 Categories: San Diego County Community News, What to do in San Diego
SAN DIEGO- Hopefully, like me you have replaced the light bulbs in your home with CFL’s or compact fluorescent light bulbs. They are probably the easiest way for any homeowner or business to save money, energy and natural resources.
One thing hasn’t changed: the energy savings. Compact fluorescents emit the same light as classic incandescents but use 75% or 80% less electricity.
What that means is that if every one of 110 million American households bought just one ice-cream-cone bulb, took it home, and screwed it in the place of an ordinary 60-watt bulb, the energy saved would be enough to power a city of 1.5 million people. One bulb swapped out, enough electricity saved to power all the homes in Delaware and Rhode Island. In terms of oil not burned, or greenhouse gases not exhausted into the atmosphere, one bulb is equivalent to taking 1.3 million cars off the roads. -Fast Company Magazine
The problem with them is they are considered hazardous household waste. The reason for this is they they contain mercury atoms in the gas that fills the bulb and mercury is a hazardous material.
But there are many electronic products we use daily that too are considered to contain hazardous material. I personally use one rule to decide if I am going to save the product for disposal at a e-waste event and that is, does it have a circuit board. If the answer is yes, I save it in a box and dispose of at these free events.
Starting today and tomorrow there is a e-waste disposal event in Carlsbad at the Westfield mall. January 16th and 17th there will be two events in La Jolla and La Mesa and finally a fourth on January 30th in Encinitas. Additionally, Recycle San Diego, has ongoing events at their location.
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California to add $10,000 to first time buyer’s tax credit?
January 7th, 2010 Categories: Real Estate News, San Diego County Community News, San Diego county Real Estate News, San Diego homes for sale
SAN DIEGO- It’s like deja vu all over again.Today Governor Arnold Schwarze
negger proposed and has sent to the state legislature a new round of state first time buyer tax credit. The tax credit as proposed would be for new or existing construction and would be paid out as a $3333.00 tax credit over a three year period. The state tax credit could be combined with the federal tax credit, but would be limited to 20,000 qualified purchase as it will be only funded with $200,000,000.
Schwarzenegger administration officials said conditions of their proposal would be similar to last year’s credit. That had no income limits, made all buyers eligible and required that buyers live in their homes. No dates have been set yet for eligibility. Buyers qualified last year by closing escrow after the credits became available on March 1.- www.sacbee.com/business
We’re still broke and as much as I wish this would be a good thing, it is just plain dumb.
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3000 feet of climbing outside my door
January 4th, 2010 Categories: San Diego County Bike Rides
CARLSBAD- Back in the day, the climb in coastal north county was Alga. You often times could find pro triathletes doing repeats and it was oft quoted as part of a solid training program. Well that was then and this is now. Thanks to the recent building boom, which has taken away some great rides, it has created new ride opportunities into what used to be mountain bike territory. And if it’s mountain bike territory, you can count on some solid climbs.
The new king of the coastal climbs has to be San Elijo Road/ Twin Oaks Valley. The area of Double Peak in San Marcos, used to be the domain of the rich, the offroader, the mountain biker and the partiers, but no more. I had watched for quite some time as the road was cut up the side of the hill in anticipation of the coming climb and while the road has been open sometime, this morning, I headed out for our meeting.
The route I was going to ride was to have quite a few coastal bumps to climb on my way to King in order to warm the legs up. I headed south down El Camino Real from my home and then east on Palomar Airport Road which then took me through Lake San Marcos to the start of the north climb outside the entry to Cal State San Marcos. 
The climb was very nice with little traffic, a nice road surface and spectacular views awaiting at the summit. It was the type of climb I like where you can select a gear and just steadily tap out a rhythm taking you to the top. No surprises or undulation. It is pretty much straight up.
As I crested the top I was greeted by amazing views with usually hidden San Clemente Island sitting off the coast. I would say the first two thirds of the climb are the most difficult and unlike the outside route at Torrey Pines, once you hit the right hand bend you really are at the finish. Probably the smartest thing the developers and or city did was place a fire station at the crest. Medical help when you may need it most!!
The rest of the route came benefit of living near a fault zone and I had a small climb up to the La Costa Oaks area and then two more from La Costa Avenue to Poinsettia and lastly the new College Ave. climb created by the building in the Calavera Hills area of Carlsbad.
In all it was a comfortable ride with just over 3000’ of climbing in 30 miles. That’s a GREAT training ride outside my door!!
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Will January deliver YOUR new home?
January 3rd, 2010 Categories: Client Testimonials, Real Estate News, San Diego County Community News, San Diego county Real Estate News, San Diego homes for sale
SAN DIEGO- Well another year is behind us and hopefully we continue to move closer to our economic recovery. While there is much to write about over the past couple years, I continue to look forward and concern myself with the present and presently, inventory is getting low in affordable/ median housing.
As the tax credits associated with economic stimulus package approach their end date, I doubt there will be a second extension, I have quite a few buyers that are trying hard to get into their new homes. Unfortunately, there has been a sense that not too many new listings coming on the market and the data supports that intuition.
Now this could be construed as a positive sign that the number of homes or homeowners in “distress” is slowing down or it could just be the banks just are not foreclosing on distressed properties. Some believe the banks are hoarding homes they have already foreclosed on anticipating listing them at some future date when the market is more favorable.Whatever the case the net effect is the reduction in new listings.
When looking at the past two years of the areas I primarily work in, the steady decline is quite evident with the exception of the “central” area consisting of University City, Clairemont, Linda Vista, etc, which has held up pretty well. North County coastal, essentially Oceanside to Carmel Valley, has really experienced a great impact on new listings. In 2008, with the exception of February because of the shorten month, January through July saw a least 1050 new listings a month. In 2009, the highest month was January with 949 new listings, which represents about a 20% reduction when compared to 2008. The lowest month was December with only 517 new listings.
If you are considering taking advantage of the tax credits being offered you have a little less than 4 months. With the clock running out, I strongly urge you to stay away from short sales, UNLESS they already have bank approval. If you do want to write an offer on a short sale you need to make certain you have the right to cancel that offer at any time in order to maintain your ability to write an offer should a better opportunity present itself.
In 2009 I closed numerous homes with first time buyers and would appreciate the opportunity to help you with your first home purchase!!
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