San Diego Home Prices Doing Better than Other Cities

San Diego County home prices have fallen less than than all but two other metropolitan areas over the past year, according to the closely watched Standard & Poor’s Case-Shiller Home Price Index for October that was released Tuesday.

That’s an improvement from fifth or sixth place in the last few months.

San Diego prices were down 2.4 percent from a year earlier, with only Denver and Dallas down less, 0.1 percent and 0.6 percent respectively. San Diego home prices rose 0.4 percent from September to October, behind Phoenix’s 1.3 percent and San Francisco’s 1.2 percent boost.
The national index for 20 metro areas stood at 146.58, unchanged from September and down 7.3 percent from October 2008. The index, set at 100 in January 2000 for all areas, is based on paired-sales data of single-family resale homes.

Index Chairman David Blitzer took note of San Diego’s improvement, noting it had seen six consecutive months of improvement, compared with San Francisco’s seven and five each for Los Angeles and Phoenix.

Renting to Students is Good Business

Off-campus student rental housing is surviving the recession nicely, say landlords who rent apartments and rooms to students near campuses all over the country.

"I wouldn't say it's recession-proof, but it's recession-resistant," says Jim Arbury, an executive with the National Multi-Housing Council, a Washington, D.C.-based trade group for the apartment industry. "It's still one of the bright spots in the housing market."

For instance, Brad Hastings, whose company Walk2Campus rents 400 units in South Carolina, has about a 94 percent occupancy rate.Hastings says it’s not a business for everyone because it’s management-intensive. "You have a customer base who, possibly for the first time, are living out on their own. There's a certain amount of hand-holding, teaching of life lessons.”

Source: Inman News, Mary Umberger (12/30/2009)

Loan Modifications Can Hurt Your Credit

According to a recent report. applying for a mortgage modification and being in a months-long trial period can devastate a home owner’s credit score.

Under the government plan, troubled borrowers can have their mortgage payments reduced to 31 percent of their pre-tax income. They are first put in a trial modification for several months to test whether they can meet the requirements of the new mortgage.

Borrowers who were previously current on their mortgages will see their FICO scores fall about 100 points while they are in the trial period, according to the Treasury Department. Borrowers who were previously late or missed payments will see their scores fall more, the government says.

The longer a borrower is in the trial period, the greater the impact on their credit scores, Once the modification is approved, the borrowers’ mortgage credit status will be listed as current and that should improve their scores, the Mortgage Bankers Association explains.Even so, the delinquency remains on credit reports for up to seven years and can make getting credit for something else like a car difficult and expensive, borrowers report.

Source: CNNMoney.com, Tami Luhby (12/28/2009)

Interest Rates to Go up to 6%?

Interest rates are likely to rise to 6 percent by the end of 2010, predicted Amy Crews Cutts, deputy chief economist at Freddie Mac.

The end of the Federal Reserve program that buys mortgage-backed securities will drive rates higher because private buyers will demand more return than the Fed.

"Extraordinary resources have been put into keeping the rates down and supporting the mortgage markets and it's hard to imagine that the rates can go much lower than they are," Crews Cutts said. "Anything we get at or below 5 percent is a gift at this point."

Source: Washington Post, Dina ElBoghdady (12/26/2009)

Luxury Home Owners Use Short Sales as Exit Strategy

Homeowners with mortgages of more than $1 million are defaulting at almost twice the U.S. rate and some are turning to so-called short sales to unload properties as stock-market losses and pay cuts squeeze wealthy borrowers.

“The rich aren’t as rich as they used to be,” said Alex Rodriguez, a Miami real estate agent with JM Group USA Inc., whose listings include a $2.9 million property marketed as a short sale because the price is less than the mortgage, leaving the bank with a loss. “People have reached the point where they can’t afford the carrying expenses of a $2 million home.”

Payments on about 12 percent of mortgages exceeding $1 million were 90 days or more overdue in September, compared with 6.3 percent on loans less than $250,000 and 7.4 percent on all U.S. mortgages, according to data from First American CoreLogic Inc., a Santa Ana, California-based research firm. The rate for mortgages above $1 million was 4.7 percent a year earlier.

Click here for more.

California Median Home Prices Up 5.8%

Home sales in California increased 4.7 percent in November compared with the same period a year ago, while the median price of an existing home rose 5.8 percent, according to a report released yesterday by C.A.R.

The median price of an existing, single-family detached home in California during November 2009 was $304,520, a 5.8 percent increase from the revised $287,880 median for November 2008, C.A.R. reported. The November 2009 median price rose 2.4 percent compared with October’s $297,500 median price.

The median home price in California has risen nine consecutive months in month-to-month comparisons, but November marked the first time California’s median home price has risen in year-to-year comparisons since August 2007.

Top 10 Projects that Will Add Value to Your Home

Realtor.com just listed 10 big impact, low cost remodeling projects that will bring value to your home. Check them out!

1. Tidy up kitchen cabinets.
"Potential buyers do open kitchen cabinets and look inside," says Morrissey. "Home owners can add rollout organizing trays so when buyers peek in, they feel like there’s lots of room for their stuff."

2. Add or replace tile.
"By retiling very inexpensively, you make a room look way cleaner that it was," says Javier Zuluaga, owner of Home Repairs and Remodeling LLC in Tempe, Ariz. "Every city has stores that offer $1 to $2 tile, so home owners have to pay only for the low-cost tile and labor to replace a dated backsplash or add a new one. We also use inexpensive tile to upgrade bathrooms."

3. Add a breakfast bar.
When a wall separates a kitchen from a family room, suggest cutting out an opening to create a breakfast bar. "In one home, there was a cutout in the wall between the kitchen and living room," explains Matthew Quinn, a sales associate at Quinn’s Realty & Estate Services in Falls Church, Va., who handles estate and real estate sales for family members whose loved ones have passed away. "We left the structure of the cutout, added an oversized granite breakfast bar, and put chairs in front of it. That cost about $600."

4. Install granite tile instead of a slab.
"Everybody is hot for granite kitchen countertops, but that can be a $5,000 upgrade," says John Wilder, a general contractor and owner of Fence and Deck Doctor in New Castle, Ind. "Instead, home owners can put in 12-inch granite tiles for about $300 in materials and get very high impact for little money."

5. Freshen up a bathroom without retiling.
"With a dated bathroom, I recommend putting in a new medicine cabinet for $100 to $150, light fixtures for about $100, a faucet for $50 to $75, and a vanity for $200 to $300," says Wilder. "And instead of replacing the tile, the existing grout can be lightly scraped and regrouted, which leaves a haze that can be buffed out and will make the tile look brand new. Also install glass shower doors. A French door adds a lot of panache and elegance for $250, and people will notice the door, not the tile. With all that, you’ve done a bathroom remodel for $1,000 to $2,000."

6. Freshen up the basement.
"If home owners have cement block or poured concrete walls in the basement, suggest they have a contractor fill in cracks with hydraulic cement and then paint with waterproofing paint," recommends Wilder. "They can then add a top coat to add color. They can also paint the basement floor with a good floor paint, which spiffs it up. The basement may not be finished, but it’s no longer a damp dungeon."

7. Add a room.
Look for large spaces that can be enclosed to create a new bedroom for just the price of creating a wall. "One time, we closed off a half-wall to an office and added a door to the other side of the room, thus creating another bedroom," says Quinn. "That $400 procedure, which took a contractor one day, netted about $40,000 in the sales price." Zuluaga has also added bedrooms inexpensively. "In a two-bedroom house, there was an archway that led to a third room that was used as a den," he explains. "It had a dry bar where there would have been a closet, so we took out the dry bar and created a closet so the owners had a third bedroom."

8. Spruce up cabinet fronts.
Suggest home owners update tired-looking kitchen cabinets. Reconditioning is the least expensive move for under $1,000. "If the wood is starting to look shabby from use or contaminants in the air, we take out the nicks and scratches, recondition it with oil, and put new hardware on," explains Heidi Morrissey, vice president of marketing and sales at Kitchen Tune-Up in Aberdeen, S.D. For $1,500 to $4,000, owners can replace the cabinet doors and drawer fronts, and for $4,000 to $12,000, they can have all the cabinets refaced. "With refacing, owners can change the color of the cabinets by replacing the door and having a new skin put on the boxes," says Morrissey. "If they have oak cabinets today, they can have cherry the next day."

9. Replace light fixtures.
"In a foyer and in bathrooms and kitchens," says Wilder, "replacing overhead light fixtures provides a lot of pop for a little money." If the kitchen has track lighting, Zuluaga suggests the home owner spend $450 to $600 to have an electrician replace it with recessed canned lights on a dimmer switch to add ambience. For about $700, Zuluaga also suggests installing pendant lights over a kitchen island or peninsula.

10. Tech-up the garage.
"Sometimes we replace the garage door opener with a remote touchpad entry system," says Zuluaga. "That costs about $425 and makes it look like a high-end system."

Source: Realtor.com

More Luxury Shortsales/foreclosures on Horizon for San Diego

Owners of properties with mortgages greater than $1 million are feeling pain the same as—if not worse than—less well-heeled owners.

More than 12 percent of mortgages exceeding $1 million were 90 days or more past due in September, compared to 6.3 percent of loans less than $250,000 and 7.4 percent of all U.S. mortgages, according to research firm First American CoreLogicThe reason for the shortfalls seems apparent.

The number of U.S. households with a net worth of more than $1 million, not counting their primary residences, fell to a five-year low of 6.7 million last year from 9.2 million in 2007, according to consulting firm Spectrum Group.

While holders of ordinary mortgages can hope for government help, there is no such thing for holders of big mortgages and it’s also difficult to find a re-fi. “There is no refinance market for you if you are underwater and outside the Fannie and Freddie framework,” says Keith Gumbinger, vice president at mortgage data firm HSH Associate. The answer for some is a short sale. While there are no official statistics, practitioners like Adrian Heyman, owner of Property

Advisors in Scottsdale, Ariz., is seeing increasing numbers of luxury short sales. “A lot of wealthy people are upside down in their mortgages and they just can’t afford the second or third vacation home anymore,” Heyman says.

Source: Bloomberg, Kathleen M. Howley and Dan Levy (12/17/2009)

What you Need to Know about Obama's New Short Sale Plan

Obama’s standardized short-sale plan could help troubled homeownersThe U.S. Dept. of the Treasury recently announced the Home Affordable Foreclosure Alternatives Program (HAFA), which provides instructions for lenders and servicers participating in the Making Home Affordable Program and Home Affordable Modification Program (HAMP). The purpose of HAFA is to create an alternative to foreclosures for homeowners unable to successfully modify their troubled mortgage under HAMP, and to streamline the short-sale process.

In a nutshell:
-A short sale is when the lender agrees to accept less than the amount owed on the mortgage instead of foreclosing. Many homeowners and REALTORS® have expressed their frustrations in the short-sale process, criticizing lenders for the amount of time it takes to process and approve a short sale. The CALIFORNIA ASSOCIATION OF REALTORS® listened to members’ concerns, worked with other industry groups, and responded by helping to create provisions to streamline the short-sale process.
-The HAFA program simplifies and encourages short sales and deeds in lieu of foreclosure. It will permit pre-approved short sale terms before a property is listed; release borrowers from future liability for the debt; provide financial incentives to borrowers, servicers, and investors; and prevent servicers from attempting to reduce real estate commissions established in the listing agreement as a condition for short sale approval.
-Under terms of the program, the borrower and/or listing broker have three business days to submit an executed purchase offer and related documents to the servicer on a short sale, and the servicer has 10 business days to respond to an executed purchase offer.
-The servicer also will determine the minimum net proceeds for a short sale. If an offer presented to the servicer by the borrower or listing broker meets the net proceeds requirement, then the servicer must accept it.

The program currently is available only for non-Fannie Mae- or Freddie Mac-owned loans up to $729,750 and is scheduled to take effect April 5, 2010. However, C.A.R. expects that many lenders will choose to implement it before the deadline.

Click here for the full story.

Pending Home Sales Up for Nine Consecutive Months

Pending home sales have risen for nine months in a row, a first for the series of the index since its inception in 2001, according to the latest survey.

The Pending Home Sales Index increased 3.7 percent to 114.1 from 110.0 in September, and is 31.8 percent above October 2008 when it was 86.6. The rise from a year ago is the biggest annual increase ever recorded for the index, which is at the highest level since March 2006 when it was 115.2.

Lawrence Yun, NAR chief economist, said home sales are experiencing a pendulum swing.

“Keep in mind that housing had been underperforming over most of the past year. Based on the demographics of our growing population, existing-home sales should be in the range of 5.5 million to 6.0 million annually, but we were well below the 5-million mark before the home buyer tax credit stimulus,” he said. “This means the tax credit is helping unleash a pent-up demand from a large pool of financially qualified renters, much more than borrowing sales from the future."

15 Year Loans Increase in Popularity

Home buyers and home owners who are refinancing are increasingly enthusiastic about 15-year, fixed-rate mortgages.

Originations of 15-year mortgages at Wells Fargo & Co. are up 55 percent through November compared to a year ago. At J.P. Morgan Chase & Co., 20 percent of refinances are 15-year loans, up 10 percent in 2008.

One reason is that rates on 15-year fixed-rate conforming mortgages averaged 4.46 percent in early December, according to HSH Associates in Pompton Plains, N.J.Source:

The Wall Street Journal, Ruth Simon (12/09/2009)

A Picture's worth a thousand words!

House Flipping Makes a Comeback? The Wall Street Journal Says it Is.

Don't try this at home. Flipping houses is a risky business!

But, according to an article from the Wall Street Journal, an increasing number of investors are bringing cold, hard cash to foreclosure auctions and scoring homes at bargain-basement prices. Then, they are reselling them for a profit!

Click here to read more of the article.

Thinking of Collecting on Your Tax Credit? Read this first.

Reporting from Washington - If you're thinking about applying for the new $6,500 home buyer federal tax credit or the extended $8,000 version, the Internal Revenue Service has just issued its first formal guidelines for you.

Tops on the agency's list of advice: Cool it for a couple of weeks. Even if you qualify for one of the credits, don't send in any requests to the IRS quite yet. Wait until later this month when the agency publishes its revised Form 5405 with the key instructions needed to get you a check from the government.

The forthcoming version of the form will incorporate the major changes to the tax credit program made by Congress in legislation signed by President Obama on Nov. 6. These include expanded income limits, a cap on home prices, additional documentation requirements and prohibitions against claims by dependents.In a tax bulletin issued just before Thanksgiving, the IRS emphasized that all home purchasers after Nov. 6 "must use this new version [of Form 5405] to claim the credit."

Put another way: If you send in the old version -- the one you can currently download from the agency's website, www.irs.gov -- your request for the credit will probably go nowhere.

Click here for more.

How Mortgage Defaults Will Actually Help the Economy

The increasing willingness to abandon home ownership in favor of renting could, in a counterintuitive way, be an important step in the economic recovery, some analysts say.

The U.S. home ownership rate has declined to 67.6 percent as of September, down from its peak of 69.2 percent in 2004. Much of the reason for this decline is the number of foreclosures.

Deutsche Bank Securities expects 21 million U.S. households to be underwater by the end of 2010. If 20 percent of these homeowners default, loses to banks and investors could exceed $400 billion.

While these losses are definitely bad for banks, relief from paying a mortgage makes more money available—an estimated $5 billion a month—for consumers to purchase other things.

"It's a stealth stimulus," says Christopher Thornberg of Beacon Economics, a consulting firm specializing in real estate. "The quicker these people shed their debts, the faster the economy is going to heal and move forward again."

Source: The Wall Street Journal, Mark Whitehouse (12/10/2009)

FHA Helps Condo Buyers

New Federal Housing Administration condo-loan guidelines that took effect Dec. 8 could make it much easier for condo buyers to get a loan.

Under previous guidelines, half the units in a new condo development had to be sold before the FHA would underwrite a mortgage in the complex. New guidelines cut the requirement to 30 percent and raise the ceiling on FHA loans in a development to 50 percent from 30 percent.

Source: Investor’s Business Daily, Marilyn Alva (12/10/2009)

Where's the Refund?

First-time home buyers who bought as long ago as last winter are still waiting for their $8,000 tax refund.As of mid-September, more than 1.4 million taxpayers had requested the credit by amending their federal tax returns.

The IRS announced in October that it expects 5.1 million claims by year-end. That count doesn’t reflect the extension and expansion of the credit in November.

IRS spokeswoman Carrie Resch says the agency is experiencing a higher-than normal number of amended returns and because amended returns are reviewed by hand, the process is delayed.U.S. Sen. Amy Klobuchar (D-Minn.) has been fielding constituent calls for weeks from irate home buyers.

She sent a letter to the IRS that said in part: "The full and immediate economic impact of the tax credit is lost when it takes up to four months for people to get the money due to them ... such lengthy delays are unacceptable and erode the public's trust in the competence of the government.”

Source: Minneapolis-St. Paul Star Tribune, Kara McGuire (12/10/2009)

Coronado Best Buys List for Dec 12, 2009

Greetings!
If you’ve been waiting for prices to drop in Coronado…we’ve got news. They’ve dropped! Savvy buyers are scoring great deals this holiday season—taking advantage of anxious sellers who want to have a deal locked in before the end of the year.

20 properties are currently in escrow in Coronado right now. 7 of them are have made our Best Buy List.

15 homes also closed escrow the last month—6 of them were Best Buys. The average sales price was $1,211,110.Here are is our complete BEST BUY LIST. Don’t let these great deals pass you buy…sign up for our ASAP property emails, and you’ll find out the second something comes on the market—just as soon (if not sooner) then other agents!

BEST BUY LIST FOR DECEMBER 11, 2009
$455,000--730 E, condo, 2/2. SHORT SALE! Charming upgraded condo. Sweet deal on the island!579,000—1830 Avenida Del Mundo, #1714, condo, 1/1. Fantastic deal on the least expensive 1 bedroom at the Coronado Shores! Great views of Glorietta Bay all the way to Mexico.

$615,000—418 E Avenue, condo, 2/2. A beautifully maintained, move-in ready, 2 bedroom, 2 bathroom condominium in the Village of Coronado. Open and bright with an extra special roof-top deck boasting views of Point Loma and city lights. Unit offers central air conditioning, a fireplace, and an attached 2-car tandem garage.

PRICE DROP--$759,800—23 Delaport, house, 3/3. FORECLOSURE! Don't miss this terrific opportunity to own a Coronado Cays, BANK-OWNED, detached town home in 'Mardi Gras' at a below market price! Just fell out of escrow, will go fast, don’t hesitate! Most recently listed pre-foreclosure at $999,999! Great end-unit locale with terrific ocean views across the highway from the second level, updated kitchen with travertine floors, a warming living room fireplace and an expansive master suite with bay nook and private terrace taking in the ocean views-this is just the start! More than 1800 square feet.

$785,000--801 G Ave, #A, condo, 2/2. Very private townhouse seems like a SFR. Corner unit on Corner Lot give open views in two directions. Two car attached garage, cozy fireplace in Living room. Can be purchased furnished. Hardwood floors through out, laundy in attached garage. Has central Air. Seller may carry 1st TD.

$797,000—14 Antigua Court, Condo, 2/2. The Coronado Cays welcome you to the prestigious Antigua Community! This upper view unit provides the most desirable eastern views with a large patio over the Bay (great for entertaining) along with your personal boat slip! Relax in the inviting cozy living room with fireplace. The kitchen opens to the dining area facing the water view. Mirrored wall provides beautiful bay reflections & lots of light. Private master suite with large full bath and generous closet space.

$798,000-$898,000--1405 First Street, condo, 3/3. SHORT SALE! Bay views and highly desirable location just steps away from world famous Coronado shops, restaurants, fishing pier and more. Incredible value for this highly upgraded town home including granite kitchen, Brazilian hardwood floors throughout, marble bath rooms, community pool and more. Please see supplement and property website for more about this amazing value.

$899,000—247 D Ave, house, 3/ 4. Highly Upgraded Unit Built by Owner for Owner. Custom Entertainment Built-in and Additional Built-ins at Fireplace. Hardwood Floors in All Rooms. No Carpet. Beautiful Decorator Tiles in Kitchen and Bathrooms. Much Thought put into Window Placement to Maximize the City Views. No Other Two-Stories on Either Side. Lots of Light. Gorgeous City Views from Rooftop Deck.

$920,000—257 Alameda, house, 2/3. SHORT SALE! Almost 2,000 square feet. Rare opportunity to buy a short sale in Coronado.

$998,000—425 E house, 3/3. SHORT SALE! 2,000 square feet of home. Beautiful Spanish-style. Buyer lost patience for short sale—great chance for new buyer to jump in an take advantage of great price!

$1,085,00—452 C Avenue, house, 2/2. Charming Spanish Bungalow in beautiful village neighborhood. Immaculate 1,344esf floor plan seated on 5,227esf lot. Two bedrooms, one bath, front and back porches, oversized double garage. Fireplace in living room. Multiple windows allow entry of natural light. Coved ceilings, oak plank floors, granite kitchen counters and ceiling fans. Additional studio retreat with full bath. Prime location.

$1,150,000--611 Fifth Avenue, house, 3/3. Step back into simpler days in this adorably and well appointed quaint Coronado Cottage by the sea. Nestled comfortably on a reverse corner 50'x70' lot leaves you with great options for improvement. Currently setup as a 3 bedroom, 1.5 bathroom 'beach house' but could easily be improved upon. Current owners remodeled property including appliances, bathrooms, paint, beautifully finished hardwood flooring and more. Enjoy a short bicycle ride to our Top 10 rated Coronado Beach! Coronado Living....begins here!

$1,450,000—468 B Ave, house, 4/3. PRICE DROP! Great open floorplan with 10ft. ceilings, lots of natural light and hardwood floors. Custom kitchen opens to large family room with french doors to the cute backyard. Terrific family home. Close to Spreckels Park and the heart of the village.

$1,575,000—420 J, house, 3/3. PRICE DROP! Gorgeous Like New..."Tommy Bahama Style" Interior... Nothing 'ordinary' here! Warm & wonderful home, w/ 3 spacious bedrooms including a beautiful master suite. Plenty of closet space & storage. Warm granites & designer features. Kitchen w/breakfast bar & built in nook. Sound system, Backyard w/fountains, BBQ area + 2 car garage w/ storage & epoxy floors.

We update this list every two weeks based on price, location, square footage, and condition of ALL homes currently on the Coronado MLS. To subscribe to the Coronado Best Buys List and get pictures and additional information, please email christinevt@prusd.com with BEST BUYS in the subject line.

Thanks for reading!
Christine Van Tuyl
Prudential California Realty
Leading Edge Award Winner
101 Orange AvenueCoronado, CA 921188
58.405.7264
christinevt@prusd.com
Search properties free on our website:
www.sandiegosurfandsand.com
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Top 5 Reasons to Buy a House During the Holidays

Shop for Christmas presents, decorate the tree, and buy a house? That’s right. You might think its nuts to buy a home during the already jam-packed holiday season, but the holidays are actually a fantastic time to score an incredible deal on a new property.

December is typically a very slow month for sellers and they’re more motivated than ever. So whether you’re looking for a new principal residence, a vacation home or an investment property, the holidays are an amazing time to find a killer deal.

Top 5 Reasons to Buy a House During the Holidays

1. Interest rates are usually lower. Experts say that interest rates typically drop every December through January. Combine cyclical drops with already incredibly low rates, and you’re looking at a phenomenal opportunity.
2. Sellers are more motivated. With high unemployment and holiday expenses looming around the corner, many home sellers are especially motivated to negotiate a lower sales price. In addition, many sellers are anxious to sell before the end of the year because it helps on their taxes.
3. Less competition. While everyone else is shopping, traveling and entertaining, smart buyers can score great deals on the most desirable homes. Bypass bidding wars while everyone else is at the mall!
4. Buyer tax benefits. When you buy a new home before the end of the year, you'll be able to report items such as mortgage interest, points, closing costs, property taxes and more on your tax return.
5. Faster closings. Fewer transactions mean faster closings. Experts say that financial institutions and lenders might be more willing to accept offers on short sales properties and foreclosures

How to Score a Good REO Deal in San Diego

REO and short-sale properties can be money pits when offers take forever to close and vacant properties are trashed. Here are some suggestions for expediting the deals:

-The best short-sale deals are those where the bank has pre-approved the sale price. The property may still take a long time to close, but not as long as it would otherwise.
-Buyers of a short-sale should be prepared for multiple offers. If the short-sale property is an attractive one, the lender will continue to market the property even after signing a sales contract. And if it gets a better offer, it may sell the property without giving the original buyers a chance to negotiate.
-Seek out houses protected by the Cash for Keys program, which gives short-sale and foreclosed owners money to prevent them from trashing the place on the way out.
-Inspections are important. If a home has been vacant, get the property re-inspected prior to closing.
-Buyers shouldn't focus on price alone. Homes that are in poor neighborhoods, have serious maintenance issues, or have terrible floor plans aren’t bargains despite the price.

Source: Inman News, Bernice Ross (11/30/2009)

Trouble on the Horizon for San Diego Buyers: FHA Loan Requirements to Get More Difficult?

Are things going to get more difficult for San Diego buyers using FHA loans?

U.S. Housing and Urban Development Secretary Shaun Donovan on Wednesday asked Congress for authority to raise borrower premiums and down payments in order to bring the Federal Housing Administration’s reserves above the mandated 2 percent minimum.

The agency plans to reduce the maximum permissible seller concessions from 6 percent to 3 percent. The minimum borrower FICO score will be raised above the current 500, although the final number has not yet been determined.

It also will likely increase the down payment to 5 percent, but that number hasn’t been decided either.

Donovan also wants lenders to take responsibility for losses associated with loans not underwritten to FHA standards and to be accountable for origination quality and compliance.Critics said tightening up FHA could slow the housing recovery.

"What would cripple the housing market is the FHA changes its down payment requirement," said Rodney Anderson, a broker with Supreme Lending in Plano, Texas, the top individual originator of FHA loans in the country.

Source: Reuters News, Lucia Mutikani (12/02/2009)

Option ARMS Borrowers Facing Resets

About 93 percent of option-ARM buyers chose to pay a minimum amount less than the interest due, according to a report released last week by Standard & Poors.

That means that nearly all of the 350,000 option-ARM borrowers now owe more than they owed when they first purchased their homes.

Many of these loans were written in 2004 and are close to their five-year reset when the loans convert to a standard amortization. Some more recent loans will reset early if the accumulated interest has pushed the loan-to-value ratio above 110 percent.I

n one example outlined in the S&P report, the payment on a $400,000 mortgage goes from $1,287 to $2,593.The authors of the report say that many ARM borrowers aren’t good candidates for refinancing or modification because their loan-to-value ratios are too high for the government’s Making Home Affordable program.

Also, about 80 percent of option-ARM loans were stated-income loans and borrowers could be held legally liable for deliberate inaccuracies on their original applications.

Source: CNNMoney.com, Les Christie (11/26/2009)

Short Sales to Get Easier? Government Releases New Short Sale Guidelines!

The U.S. Treasury Department announced new guidelines this week designed to make short sales go more smoothly.

To qualify under these new guidelines:
-The property must be the home owner’s principal residence.
-The home owner must be delinquent on the mortgage or close to defaulting.
-The loan must have been made before Jan. 1, 2009, and be for less than $729,750.
-The borrowers’ total monthly mortgage payment must exceed 31 percent of their before-tax income.

Under the plan, borrowers will receive $1,500 from the government for selling homes for less than the amount of their mortgages. Mortgage-servicing companies will get $1,000 for each completed short sale. Second-mortgage holders can receive up to $3,000 of the sales proceeds in exchange for releasing their liens. Investors who hold the first mortgage can collect up to $1,000 from the government for allowing the payments.Borrowers who complete a short sale under the program must be "fully released" from future liability for the debt, according to the guidelines.

Source: Associated Press, J.W. Elphinstone (11/01/2009) and The Wall Street Journal, Ruth Simon (11/01/2009)

CNNMoney.com: 50% of Home Buyers are First-Time Buyers

Propelled by the first-time homebuyers tax credit, nearly half of home sales are now being made by first-time purchasers, according to an industry report released Friday.

In fact, 47% of all Americans who purchased homes this year had not owned one during the previous three years, according to a press release Friday from the National Association of Realtors (NAR). That was up from 41% of sales in 2008 and 36% in 2006.

The tax credit boosted markets by giving first-time buyers a credit of up to $8,000 they could deduct from their income taxes. The credit is fully refundable: Even a buyer who pays less than $8,000 in income tax gets the full amount of the credit back.

The credit was recently extended through the middle of 2010 and expanded to include many existing homeowners. That has the industry buzzing.

"The credit is working better than first projected -- it now looks like we'll have 2.3 to 2.4 million first-time buyers this year," said Lawrence Yun, chief economist for NAR. "With expansion of the tax credit to additional buyers through the middle of next year, and no major unforeseen events impacting the economy, home prices should rise between 3% and 5% in 2010."

Click here for the full story.

What is the $6,500 Federal Tax Credit for Move-Up Buyers?

The new $6,500 federal tax credit for “move-up” home buyers may benefit home buyers in San Diego, CA.

The federal government recently extended and expanded the federal tax credit for home buyers. The tax credit now concludes June 30, 2010 instead of Nov. 30, 2009, and also includes existing homeowners who meet certain qualifications.

Here's what you need to know, in a nutshell:
-Current homeowners are eligible for a $6,500 federal tax credit if they have lived in their current home for a consecutive five out of the last eight years, and the adjusted household income does not exceed $125,000 for single files or $225,000 for join filers.
-The expanded tax credit went into effect Nov. 6, the day President Obama signed the bill. Homes that close escrow between Nov. 6, 2009 and June 30, 2010 are eligible to apply for the tax credit.
-The legislation does not require homeowners to sell their current residence; however, the new home must be the primary residence and the price of the home must not exceed the limit of $800,000. Homeowners who plan to retain their current home as a rental or second home are advised to move into the new home the day escrow closes so there is no question it was the principal residence at the time of the tax credit.
-Almost all housing types are eligible, including new and existing single-family homes, condominiums, manufactured or mobile homes, and boats that serve as the owner’s principal residence. Second homes and investment properties are not eligible.
-Home buyers in 2009—those who close after Nov. 6, but no later than Dec. 31, can claim the $6,500 credit on their 2009 federal tax returns, or amend their 2008 returns. Similarly, eligible buyers in 2010 will be able to file for the credit on their 2009 returns or 2010 returns. All home buyers should talk to a tax advisor regarding timing decisions.

To read the full story from the L.A. times, please click here.

Wall Street Journal: One in Four Borrowers is Under Water

Although recent indicators that the housing market is improving, a new report shows that one in four mortgage borrowers are underwater, meaning they owe more on their mortgage than their home currently is worth. According to First American CoreLogic, nearly 10.7 million households had negative equity in their homes in the third quarter, accounting for about 23 percent of all U.S. homeowners. Most homeowners, however, still have equity, and nearly 24 million owner-occupied homes do not have a mortgage, according to the U.S. Census Bureau.

A study by credit-scoring company Experian shows that approximately 588,000 borrowers strategically defaulted on their mortgages last year, even though they could afford to pay—more than double the number in 2007. Homeowners with negative equity are more likely to strategically default if they live in a state where the bank cannot pursue their assets in court, according to a study by the Federal Reserve Bank of Richmond. California is an example of a state with anti-deficiency laws protecting homeowners from personal liability under certain circumstances.

“Borrowers who are less than 20 percent underwater are likely to maintain their mortgage if their loan is modified and the payments reduced," said an official with Citigroup’s mortgage unit. “Beyond 120 percent, the most effective modification is a complete loan restructuring, including a principal reduction.”

Click here for more.

Coronado Cays Waterfront Foreclosure!

Check out this SHORT SALE in the CORONADO CAYS...currently listed for $1,400,000. Compare to similar properties listed for $2-3 million!

DRASTIC PRICE REDUCTION $600,000 OFF ORIGINAL PRICE MUST SELL IMMEDIATELY!This is a short sale. Sale subject to seller and lender approval of offer. One loan. Fantastic waterfront home in desirable Coronado Cays. Large dock in your back yard can accomodate two 50 ft. yachts. Even if you don't own two yachts you will enjoy the gorgeous views from your living room, master bedroom and private patio. Hardwood floors, custom cabinetry, granite countertops,this house has it all! 4 bedrooms, 3 baths. More than 2,200 square feet.

Contact Christinevt@prusd.com for more info.

15 Year Rate Hits Record Low

The average rate for 15-year mortgages reached a new bottom this week, dipping from 4.40 percent to 4.32 percent—the lowest level since Freddie Mac began tracking rates in 1991.

Rates for 30-year mortgages approached the all-time low of 4.78 percent again last week, falling to 4.83 percent from an average of 4.91 percent a week ago.

Wellesley College economist Karl Case says the Federal Reserve's efforts to purchase mortgage-backed securities from Fannie Mae and Freddie Mac is lowering rates on home loans.

Source: Boston Herald, Thomas Grillo (11/20/09)

Deliquent Mortgages Reach All-Time High

Almost 10 percent of all mortgages on one- to four-unit properties are in some stage of foreclosure, up from 2.65 percent a year ago on a seasonally adjusted basis, according to the Mortgage Bankers Association’s National Delinquency Survey released this week.

The combined percentage of loans in foreclosure or at least one payment past due was 14.41 percent on a non-seasonally adjusted basis, the highest ever recorded in an MBA delinquency survey.

The bankers blamed the high foreclosure levels on unemployment.

“Over the last year, we have seen the ranks of the unemployed increase by about 5.5 million people, increasing the number of seriously delinquent loans by almost 2 million loans and increasing the rate of new foreclosures from 1.07 percent to 1.42 percent,” says Jay Brinkmann, MBA’s chief economist.

Brinkmann points out that prime fixed-rate loans represent the largest share of foreclosures and are the biggest driver of the increase in foreclosures.Home builders and housing analysts mostly shrugged at the high foreclosure-rate information.“

My prediction is we’ll probably recover on a seasonal basis,” Robert Toll, chairman and CEO of Toll Brothers, the largest builder of luxury houses, said yesterday at a conference in New York sponsored by Citigroup Inc. “It’s generally accepted that the homebuilding industry is off the mat and on the road to recovery.”

Josh Levin, a housing analyst at Citigroup Global Markets Inc. in New York, said he expects sales to continue to be slow until January or early February, followed by a surge as buyers try to beat the April 30 expiration of the tax credit.

“The bouncing along the bottom is distorted by government policies,” he said in an interview with Bloomberg News yesterday.

Source: Mortgage Bankers Association (11/19/2009) and Bloomberg, Kathleen M. Howley and John Gittelsohn (11/20/2009)

What Happens when I stop Paying My Mortgage?

Some homeowners underwater on their houses—who owe more on their mortgages than their homes are worth—wonder what would happen if they were to stop paying their mortgages.

When lenders do not receive payments, the first action taken by the lender is to report the missed payment to the credit bureaus by the first day of the next month. Sometimes this can happen in as little as two weeks from the due date, depending on when the payment is due. Generally, this action will leave a negative mark on a credit report and decrease the homeowner’s credit score by as much as 200 points.

Because of the negative mark on the homeowner’s credit report, within the next 30 days, homeowners can expect their other creditors to take note of the late payment and to take action. Credit card issuers may raise interest rates, lower credit limits, or close credit card accounts. The borrower’s auto insurance, student loans, and other forms of credit also may change, as these are tied to the borrower’s credit score as well.

If the homeowner does not pay for 90 days, the lender likely will start calling, trying to persuade the homeowner to enter into a loan modification. If a loan modification cannot be agreed upon between the homeowner and the lender, and the homeowner continue missing payments, the homeowner likely will be served with a foreclosure notice. After the foreclosure notice is received, the lender asks a court to issue a judgment against the homeowner, and a county sale is arranged.

Homeowners at risk of defaulting on their mortgages, or those who already are behind, should contact their lender immediately to work out a repayment plan and/or loan modification.

Click here for more.

Top Tips to Score a Great Foreclosure Deal

Foreclosures can be good deals for homebuyers, but with 1.5 million of them on the market, shopping carefully is important. Here are some tips for anyone navigating the foreclosure market:

Don’t pay too much. With so many exuberant buyers, bidding up a property beyond its worth can be easy to do.
Get to know the banks. Practitioners who establish relationships with asset managers at banks can facilitate good communication.
Factor in fix-up costs. Most banks would rather sell a property as-is. Buyers should consider what shouldering that responsibility will cost. Touring the properties with a contractor can be a good plan.
Bid smartly. Help the buyer get the inside track by gathering as much information as you can about other bids.

Source: CNNMoney.com, Les Christie (11/19/2009)

More Buyers want to Buy Investment Properties

A new survey found that 12.1 percent (one out of eight) of today’s home buyers plan to purchase a home as an investment property, compared with 5.6 percent in March 2009, according to the Move.com Homeownership Survey. Of those interested in buying a home as an investment, 15.8 percent were men and 8.1 percent were women.

The survey also found that buyers who plan to purchase foreclosures expect to profit both from deeply discounted purchase prices, as well as healthy appreciation rates over the next five years. Most foreclosure buyers (58.2 percent) expect to pay 20 percent or less than market price for a foreclosure, while 38.5 percent expect a discount of 25 percent or greater. While, 73 percent expect their properties to appreciate ten percent or more in five years, 28 percent expect their purchases to appreciate 20 percent or more during that same investment horizon.

Click here for more.

California Home Affordability Up to 64%!

The percentage of households that could afford to buy an entry-level home in California stood at 64 percent in the third quarter of 2009, compared with 55 percent for the same period a year ago, according to a report released last week by C.A.R. The Index is the most fundamental measure of housing well-being for first-time buyers in the state.

The minimum household income needed to purchase an entry-level home at $247,150 in California in the third quarter of 2009 was $43,500, based on an adjustable interest rate of 4.79 percent and assuming a 10 percent down payment. First-time buyers typically purchase a home equal to 85 percent of the prevailing median price. The monthly payment including taxes and insurance was $1,450 for the third quarter of 2009.

At 85 percent, the High Desert region was the most affordable area in the state. The San Luis Obispo County region was the least affordable in the state at 47 percent, followed by the San Francisco Bay region at 49 percent.

Click here for more.

Fed to Leave Key Rate Unchanged

The Federal Reserve last week announced it will maintain its target for the federal funds rate in the 0 percent to 0.25 percent range, and expects economic conditions to warrant exceptionally low levels of the federal funds rate for an extended period of time.

“Information . . . suggests that economic activity has continued to pick up,” the Fed said in a prepared statement.

“Conditions in financial markets were roughly unchanged and activity in the housing sector has increased over recent months. Household spending appears to be expanding, but remains constrained by ongoing job losses, sluggish income growth, lower housing wealth, and tight credit. Businesses are still cutting back on fixed investment and staffing, though at a slower pace; they continue to make progress in bringing inventory stocks into better alignment with sales,” the Fed said.

To provide support to mortgage lending and housing markets and to improve overall conditions in private credit markets, the Federal Reserve also said it will purchase a total of $1.25 trillion of agency mortgage-backed securities and nearly $175 billion of agency debt, and will gradually slow the pace of these purchases in order to promote a smooth transition in markets.

Click here for more info.

Does the New Tax Credit Extension Apply to Me?

Here it is: in a nutshell, the new rules of the tax credit!

The tax credit will be extended through April 30, 2010, with a 60-day extension if a binding contract is in place prior to the deadline.

First-time home buyers will continue to receive a tax credit of up to $8,000, while existing homeowners will receive a credit of up to $6,500. Existing homeowners will be eligible for the $6,500 if they have lived in their current residences for at least five years. The bill also will increase the qualifying income limits from $75,000 for single tax filers and $150,000 for joint filers to $125,000 and $225,000, respectively. The purchase price of the home is capped at $800,000.

Under additional provisions in the bill, taxpayers can claim the credit on purchases completed in 2010 on their 2009 income tax returns. The bill maintains the provision that home buyers do not have to repay the credit, provided the home remains their primary residence for 36 months after purchase, and waives this requirement for active duty military personnel who move due to a military order.

Still confused? Check out this handy chart from the National Association of Realtors. NAR's Government Affairs Division has compiled facts on the changes made to the current tax credit.

Obama Signs Extended Tax Credit into Law!

Great news for San Diego home buyers! Expected to contribute approximately $22 billion to the economy, Congress overwhelmingly passed a bipartisan measure this week extending the $8,000 home buyer tax credit to April 30, 2010.

The legislation, which is part of a larger bill that also extends unemployment benefits, was signed into law by President Obama today.

More people are now eligible to take advantage of the law, which includes a $6,500 tax credit for buyers who are current home owners and have lived in their home for five of the past eight years.

Income limits for eligible home buyers were also expanded to $125,000 for single buyers and $225,000 for couples, up from $75,000 for individuals and $150,000 for couples. Qualifying home prices are capped at $800,000.

NAR's Government Affairs Division has compiled facts on the changes made to the current tax credit.

Sources: NAR and The Associated Press, Julie Hirschfeld Davis (11/06/2009)

Just Listed: Bank-Owned Foreclosure on Coronado

Holy moly! This bank-owned foreclosure sold for $1,700,000 in 2007. It's now listed at $990,000!

A 3 bedroom, 4 bath detached home just two blocks from the beach. Check out the ocean views! Over 2400 square feet. Rooftop patio with fireplace and views of the waves. 2 car garage. Just 2 blocks to the Village dining, shops, etc.

This home lives like a detached home (no shared walls) but is technically a cloud condo (no HOA fees.)

This property won't last. Contact me anytime at christinevt@prusd.com or 858.405.7264 to view this home, or for more info and pictures.

Top Tips to Improve Your Credit Score Now!

"Although interest rates are at historic lows, you need to have excellent credit to secure the best possible rate,” said Christine Van Tuyl, real estate agent with Prudential California Realty in Coronado. “Whether you’re looking to boost an already good score, or if you have a foreclosure or short sale on your record, it’s never a bad time to improve your credit score."

Top Tips to Improve your Credit Now
1. Review your current credit report for accuracy. Everyone is entitled to one free credit report per year from each of the three credit bureaus—Experian, Equifax, and TransUnion.) Get a copy of your credit report and look at it for accuracy. First, make sure that the information in your file is about you and only you, not someone who has a similar name or a similar Social Security number. It is very common for your credit reports to have mistakes or incorrect information. At a minimum, make sure that the information that you are being evaluated on is current and correct.
2. Repair credit report mistakes. If you find something on your credit report that is incorrect or missing, you should dispute the mistake by contacting the credit bureaus directly. All credit bureaus have their dispute procedures on their website. They are also required by law to investigate any disputed items and these investigations and will usually do so within 30 days of your request.
3. Pay your bills on time. Sounds like a no-brainer, right? Payment history accounts for roughly 35% of your credit score. Paying bills on time is the most important thing to do. If you’re struggling to catch up, contact your creditors to work out a payment schedule.
4. Increase the length of your credit history. This accounts for about 15% of your score. Don’t cancel your old card or get a lot of new ones in a short time span because this can hurt your score.
5. Keep credit card balances low. It’s a good idea to keep the balances below 25% of your available credit. Even if you pay off your credit cards every month, a high average balance will impact your score. This accounts for about 30% of your credit score.
6. Keep new credit requests to a minimum. This accounts for 10% of your score. Every time a lender runs your credit, an inquiry is recorded. If you are trying to get a loan, don’t apply for new credit cards first.
7. Be aware that paying off a collection account will not remove it from your credit report.It will stay on your report for seven years.
8. Pay off debt rather than moving it around.The most effective way to improve your credit score in this area is by paying down your revolving credit. In fact, owing the same amount but having fewer open accounts may lower your score.
9. Beware credit-repair scams. By all means, don't pay someone to wipe away the negative items in your file. If they don't follow through, the damaging items will reappear in two or three months.

Please keep in mind that Christine Van Tuyl and Margaret La Grange are real estate agents, not mortgage lenders. For more information on how your credit score will impact your loan and interest rate, please contact your mortgage lender.

About Christine Van Tuyl and Margaret La Grange
Christine Van Tuyl and Margaret La Grange are award-winning agents with Prudential California Realty in the Coronado Village office, in the top 7% of Prudential Agents nationwide. A mother-daughter team with San Diego family roots going back 75 years, Christine and Margaret pride themselves on delivering impeccable service for home buyers and sellers alike. Visit www.sandiegosurfandsand.com to learn more and to search properties for free online. They also offer a blog with the latest local real estate news at http://realestatesd.blogspot.com.

Coronado Best Buys List, November 2, 2009

Greetings!

19 properties are currently in escrow in Coronado right now. 7 of them are have made our Best Buy List. They include:
835 D #2, condo, 3/3, $688,000.
807 8th Street, condo, 3/3, $699,000.
16 Montego, condo, 2/3, $739,000.
5 Half Moon, house, 3/3, $799,000.
522 Fifth Street, house, 2/1, $849,000.
24 the Point, house, 3/3, $1,495,000
225 G Avenue, house, 4/5 , $1,699,000-$1,795,000.

19 homes also closed escrow the last month. The average sales price was $1,394,000 (an average of $781 per square foot) and the average days on market was just over 3 months. Not bad!

Here are is our complete BEST BUY LIST. Don’t let these great deals pass you buy…sign up for our ASAP property emails, and you’ll find out the second something comes on the market—just as soon (if not sooner) then other agents!

BEST BUY LIST FOR NOVEMBER 2, 2009.

$465,000 730 E Condo, 2/2, PRICE DROP! a charming condo with nice upgrades.

$774,800—23 Delaport, house, 3/3. FORECLOSURE! Don't miss this terrific opportunity to own a Coronado Cays, BANK-OWNED, detached town home in 'Mardi Gras' at a below market price! Just fell out of escrow, will go fast, don’t hesitate! Most recently listed pre-foreclosure at $999,999! Great end-unit locale with terrific ocean views across the highway from the second level, updated kitchen with travertine floors, a warming living room fireplace and an expansive master suite with bay nook and private terrace taking in the ocean views-this is just the start! More than 1800 square feet.

$797,000—14 Antigua Court, Condo, 2/2. The Coronado Cays welcome you to the prestigious Antigua Community! This upper view unit provides the most desirable eastern views with a large patio over the Bay (great for entertaining) along with your personal boat slip! Relax in the inviting cozy living room with fireplace. The kitchen opens to the dining area facing the water view. Mirrored wall provides beautiful bay reflections & lots of light. Private master suite with large full bath and generous closet space.

$799,000-$839,000—407 E Ave, house, 3/3. PRICE DROP! This property is a masterpiece. Every detail has been meticulously thought out to best maximize the size, utility and value of this home. The attic is fully finished. You must see this property to truly appreciate all of the features. It is wired for alarm, intercom, internet, cable, central vacuum. The high end tile & granite is simply beautiful. It has its own private grass courtyard like area in front of unit and a good size patio/deck of both the front and rear of the unit.

$798,000-$898,000--1405 First Street, condo, 3/3. SHORT SALE! Bay views and highly desirable location just steps away from world famous Coronado shops, restaurants, fishing pier and more. Incredible value for this highly upgraded town home including granite kitchen, Brazilian hardwood floors throughout, marble bath rooms, community pool and more. Please see supplement and property website for more about this amazing value.

$899,000—247 D Ave, house, 3/ 4. Highly Upgraded Unit Built by Owner for Owner. Custom Entertainment Built-in and Additional Built-ins at Fireplace. Hardwood Floors in All Rooms. No Carpet. Beautiful Decorator Tiles in Kitchen and Bathrooms. Much Thought put into Window Placement to Maximize the City Views. No Other Two-Stories on Either Side. Lots of Light. Gorgeous City Views from Rooftop Deck.

$1,150,000--611 Fifth Avenue, house, 3/3. Step back into simpler days in this adorably and well appointed quaint Coronado Cottage by the sea. Nestled comfortably on a reverse corner 50'x70' lot leaves you with great options for improvement. Currently setup as a 3 bedroom, 1.5 bathroom 'beach house' but could easily be improved upon. Current owners remodeled property including appliances, bathrooms, paint, beautifully finished hardwood flooring and more. Enjoy a short bicycle ride to our Top 10 rated Coronado Beach! Coronado Living....begins here!

$1,445,000—165 I Ave, house, 3/3. Historic Albert Galucci residence. Spanish Revival. 3bdrm, 2.5 ba, 1,423sqft, 3,484sqft lot.Rich stylistic details include hand painted tiles, vintage iron railings, open beams, arched passageways, iron lighting fixtures. Upgrades include Kashmir gold granite counter tops, red oak floors, chestnut stained cabinets. Plantation shutters, French doors, dual pane windows, designer appliances and country kitchen sink enhance the living areas. Central air conditioning/heating. Custom patios and landscape.

$1,300,000-1,495,000—120 C Avenue, #207, condo, 2/2. Never been lived in LUXURY CONDO. Beautiful 2 Bedroom 2 Bath end unit with fabulous patio. Hardwood floors, crown molding, Island style finishes, Viking appliances... all on one level. Regatta Bay is a new luxury complex with 16 High End Residential units

$1,450,000—468 B Ave, house, 4/3. PRICE DROP! Great open floorplan with 10ft. ceilings, lots of natural light and hardwood floors. Custom kitchen opens to large family room with french doors to the cute backyard. Terrific family home. Close to Spreckels Park and the heart of the village.

$1,575,000—420 J, house, 3/3. PRICE DROP! Gorgeous Like New..."Tommy Bahama Style" Interior... Nothing 'ordinary' here! Warm & wonderful home, w/ 3 spacious bedrooms including a beautiful master suite. Plenty of closet space & storage. Warm granites & designer features. Kitchen w/breakfast bar & built in nook. Sound system, Backyard w/fountains, BBQ area + 2 car garage w/ storage & epoxy floors.

We update this list every two weeks based on price, location, square footage, and condition of ALL homes currently on the Coronado MLS. To subscribe to the Coronado Best Buys List and get pictures and additional information, please email christinevt@prusd.com with BEST BUYS in the subject line.

Thanks for reading!
Christine Van Tuyl
Prudential California Realty
Leading Edge Award Winner
101 Orange Avenue
Coronado, CA 92118
858.405.7264mailto:858.405.7264christinevt@prusd.com
Search properties free on our website:
http://www.sandiegosurfandsand.com/
Check out our blog at:
http://realestatesd.blogspot.com/

Google Maps Now Has Real Estate Info

Google has been improving the usability of real estate information in its Google Maps function.

Users can now select the “real estate” option from the “more” button on the top right of any Google Map. They’ll automatically see balloons on the maps of listings, as well as a pop-up real estate refinement panel on the left.

From there, they can refine what they are searching for by checking the boxes for renting or buying, apartment or house, as well as price range, square footage, numbers of bedrooms and bathrooms, and foreclosure listings.

Google is also inviting real estate practitioners to list homes on Google Maps.

Source: eWeek, Clint Boulton (10/30/2009)

Pending Home Sales Continue to Rise

Pending home sales rose again, marking eight consecutive monthly gains – the longest streak since measurement began in 2001, according to the National Association of REALTORS®.

The Pending Home Sales Index,* a forward-looking indicator based on contracts signed in September, rose 6.1 percent to 110.1 from a reading of 103.8 in August, and is 21.2 percent higher than September 2008 when it stood at 90.9.

The gain from a year ago is the largest annual increase on record, and the index is at the highest level since December 2006 when it was 112.8.Lawrence Yun, NAR chief economist, said the momentum is understandable.

“What we’re witnessing is a rush of first-time buyers trying to beat the expiration of the tax credit at the end of this month,” he said. “Home values will stabilize sooner rather than over-correcting. That, in turn, will mean wealth stabilization for the vast number of middle-class families and lay the foundation for a durable economic recovery.”

Watch a video interview of Yun as he talks about these latest pending-home sales trends. NAR estimates approximately 3 million renters are now financially well-qualified to buy a median-priced home.

“As long as buyers do not overstretch and stay well within their budget, a sizable pent-up demand can be tapped among financially qualified potential buyers,” Yun said. “Although the tax credit is greatly reviving the existing home market, new-home sales may continue to struggle as home builders hold back production to drive down inventory. In addition, there remains an ongoing credit crunch for construction loans.”

The Pending Home Sales Index in the Northeast slipped 2.0 percent to 83.6 in September but remains 16.9 percent above September 2008. In the Midwest the index rose 8.1 percent to 98.2 in September and is 17.8 percent higher than a year ago.

In the South, pending home sales increased 4.9 percent to an index of 109.7 and is 22.8 percent above September 2008.

In the West the index jumped 10.2 percent to 143.8 and is 23.7 percent above a year ago.

Yun added that strong near-term reports should not be overstated. “We’re clearly not out of the woods because an excess of homes remains on the market despite recent improvements,” he said.

“Although current inventory is getting closer to price equilibrium, foreclosures will continue to enter the pipeline. An extended and expanded tax credit would help absorb this incoming inventory.”

— NAR

New Conforming Loan Limits for 2010

The Federal Housing Finance Agency (FHFA) is expected to announce, as early as next week, the new conforming loan limits for 2010.

The conforming loan limit determines the maximum size of a mortgage that Government Sponsored Enterprises (GSEs) Fannie Mae and Freddie Mac can buy or guarantee. Non-conforming or jumbo loans typically carry a higher mortgage interest rate than a conforming loan, increasing the monthly payment and negatively impacting affordability for households in California.

Currently, as a result of the economic stimulus plan, the conforming loan limit is $417,000 for most areas in the U.S., but $729,750 in high-cost areas, including many in California. The loan limits are set to expire at the end of this year, and could be lowered to $625,500 for high-cost areas. If the current loan limits are reduced to $625,500 for high-cost areas, lenders likely will adjust their loan underwriting standards to align with the new 2010 loan limits, to ensure the loans can be purchased or guaranteed by Fannie, Freddie, and the Federal Housing Administration (FHA).

To ensure consumers are not negatively impacted by the proposed changes, C.A.R. is working with NAR on a one-year extension of the current loan limits, and will keep REALTORS® apprised of the latest developments.

Have a Great Credit Score, but have a Dispute on your Record? You might not get a loan!

How do you like this one?

Mortgage loan applicants with a credit dispute on their records may find it impossible to get a loan even if they have a score above 800 and a large down payment, warn consumer watchdogs.

The problem stems from a Fannie Mae policy that requires lenders to hand-underwrite these loans because that practice makes it harder for scammers to use the credit dispute law to hide bad credit experiences.

Denying people who are good credit risks a loan is frequently an unintended consequence, says Christopher Cruise, a mortgage originator and a founder of Responsible Loan Officers.

"There's no question – when there are lots of other applications and business is good," applications requiring extra time and research "just aren't going to move."

The policy is “extremely unfair to honest consumers who are simply doing what they should – challenging misinformation,” says Evan Hendricks, whose newsletter.

Privacy Times outlined Fannie Mae's policy in a recent report.Fannie Mae says it is reviewing the policy and may change it.

Source: Washington Writers Group, Kenneth R. Harney (10/25/2009)

WSJ: Tax Credit Could Go Up to $15,000

Senate Majority Leader Harry Reid, a Nevada Democrat, is supporting a four-month extension of the home buyer tax credit.

Two other proposals in the Senate would, respectively, extend the credit through June and, most generously, increase the deduction to $15,000 and open it up to all home buyers and those with higher incomes.

One or more of these proposals is likely to come up for a vote in the next week attached to a measure that would extend unemployment benefits for 20 weeks.

Source: The Wall Street Journal, Corey Boles (10/23/2009)

Home Sales Rise 9.4% in September...Beats Forecast!

WASHINGTON — Home resales in September clocked the largest monthly increase in 26 years as buyers scrambled to complete their purchases before a tax credit for first-time owners expires.

Sales jumped 9.4 percent to a seasonally adjusted annual rate of 5.57 million last month, from a downwardly revised pace of 5.1 million in August, the National Association of Realtors said Friday.

That pace was the strongest in two years and beat Wall Street forecasts. Sales had been expected to rise to an annual rate of 5.35 million, according to economists surveyed by Thomson Reuters.

Click here for more.

Tips for Off-Season Buyers

Everyone’s been saying “Now's the time to buy,” for quite a while, but for many who've been waiting on the sidelines, the autumn "off-season" of real estate may indeed be the right time to act.

“Anybody who is trying to sell a house going into the winter months has to be flexible, and you should be able to get good deals,” says Guy Cecala, publisher of Inside Mortgage Finance.
With mortgage rates at record lows and favorable home prices, buyers should be active.

Here are some tips for buyers to help ensure a successful close:
Secure Employment: Buyers must have a stable job in order to feel comfortable about the purchase and to get approved for a mortgage.
Spotless Credit: Credit scores above 720 still get the best mortgage rates, as lending remains tight. Help buyers to correct any errors on their credit reports.
Build Cash: Let house hunters know that the days of no-down-payment loans are a relic of the past. Depending on the situation, they’ll need to put down at least 3.5 percent of the purchase price.
Follow Uncle Sam: Though the first-time home buyer tax credit is set to expire November 30th, there’s talk it may be extended into 2010. Buyers may still be able to take advantage of this opportunity, but pay attention to the news out of Washington to see if eligibility will be extended.
Be Ready to Bargain: Purchasers are in a position to ask for a lot more if a seller needs to move. If you think the floor needs to be replaced, ask for it.

“In my market, buyers still have a great deal of influence and sellers will do just about anything, assuming it is doable and legal,” says NAR First Vice President Ron Phipps, a broker with Phipps Realty in Warwick, R.I.

Source: U.S. News & World Report, Luke Mullins (10/14/09)

Don't try to cheat the home buyer tax credit...the IRS is watching!

The Internal Revenue Service is investigating more than 100,000 claims for the First-Time Homebuyer Tax Credit that may be unjustified or even fraudulent.

The IRS has identified 167 of what it calls “criminal schemes” involving the credit. The IRS refused Monday to elaborate about the problem.

Bonnie Speedy, AARP tax-aide director, blamed the post-closing filing procedures for the problem, saying people who weren’t entitled to the credit could too easily claim it. "

People are filing for the credit who don't have a right to file for it," she says. Some observers say these claims could jeopardize an extension of the tax credit.

Source: The Wall Street Journal, John D. McKinnon (10/20/2009)

Home Prices Up in Socal

Southern California's housing market took another small step toward recovery in September as the median sales price for homes in some areas rose above last year's levels -- the first such increases since the market crashed.

The median price paid for all homes in six Southland counties in September -- $275,000 -- was unchanged from August and 11% below the same month last year, according to San Diego-based MDA DataQuick.

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Prediction: Home Sales will Rise 11% in 2010

Sales of existing homes will rise 11 percent in 2010, and sales of new homes will climb 21 percent over this year, Mortgage Bankers Association Chief Economist Jay Brinkmann predicted in a speech Tuesday at the organization’s annual meeting.

"We still see a concentration in the lower end of the market," Brinkmann said. "The entry level homes are in demand."Brinkmann also predicted further declines in existing home prices, with the median falling to $164,200 in the first quarter of 2010.

David Stevens, commissioner of the Federal Housing Administration, concurred, adding that mortgage rates will rise to 5.6 percent by the end of 2010, though not enough of an increase to discourage a 12 percent increase in mortgage applications next year.

Source: Associated Press, Alex Veiga (10/13/2009)

Buyers Must Hurry to Make Tax Credit Deadline

There’s still time for a first-time home buyer to complete a transaction before the tax credit expires Nov. 30, says Diann Patton, consumer spokeswoman for Coldwell Banker Real Estate.

But home buyers who have to apply for a mortgage should make sure they have all the necessary paperwork in hand.

Patton advises that they’ll need to have tax returns, income verification and bank statements, as well as completed applications forms ready to submit.

Buyers in a hurry to claim the credit should also avoid short-sale properties, Patton says, because that process can delay closings. Source: USA Today, Sandra Block (10/13/2009)

Foreclosures Hitting Pricier Markets Harder

Foreclosures have worked their way through modest neighborhoods and are now hitting higher-priced markets.

Data from Zillow.com suggests that foreclosure rates are rising for homes in the top-third of housing values, while the bottom-third of housing now accounts for 35 percent of foreclosures, down from 55 percent in 2006.

The rising number of foreclosures among more expensive homes mirrors the increase in foreclosures among prime borrowers. More than 58 percent of foreclosure starts in the second quarter were prime loans, up from 44 percent in 2008, according to the Mortgage Bankers Association.

Subprime mortgages accounted for one-third of foreclosures, down from half the previous year.Foreclosures are unlikely to level out until late in 2010, says Stan Humphries, chief economist for Zillow.

Source: The Wall Street Journal, Nick Timiraos (10/12/2009)

Take Steps Now to Rebuild Your Credit

WASHINGTON — The ideal of homeownership may have lost its attraction to the millions of underwater owners who have lost their castles during the housing meltdown. But it is never too soon for folks who have given up their homes to start pointing to the day when they will once again take the plunge.

Whether you were able to persuade your lender to accept a payoff for less than what you owed and dump your albatross in what's known as a “short sale” or lost everything to foreclosure, if you start rebuilding your credit now, you may be able to buy another place in as little as two years.

Even if you've vowed never again to be an owner, the damage done to your credit profile by your housing woes will affect your everyday needs for at least the next 24 to 36 months. Everything from shopping for a cell phone to buying insurance to renting an apartment will be affected by your credit score because of bankruptcy or foreclosure notations in your file.

“We live in a credit-dominated society, making it especially critical for those with tarnished credit reports to begin the rebuilding process as soon as possible,” said Gail Cunningham, representative for the National Foundation for Credit Counseling in Silver Spring, Md.
It won't be easy, and it takes time, but “it is always worth the effort,” Cunningham said. “Time is on your side, and the farther away you move from your financial distress, the less impact it will have.”

Many of the steps you need to take to rehabilitate your profile are similar to those of anyone with tarnished credit. But it's likely that if you've been tagged by a short sale, foreclosure or bankruptcy, the rest of your credit has gone to seed as well.

So follow these tips:
-Review your credit report. You can't know where you are going until you know where you are. So get a free credit report at www.creditreport.com , and look it over for accuracy. (That's the official government Web site, and the only one that's truly free.)
First, make sure that the information in your file is about you and only you, not someone who has a similar name or a similar Social Security number. Next, look for items about you that are simply erroneous.
If you find mistakes, dispute them. If you discover old debts that haven't been paid off, satisfy them as soon as you can. “Paid late looks better than not paid at all,” Cunningham said.
Beware of credit-repair scams. Don't pay for something that you can do yourself. And by all means, don't pay someone to wipe away the negative items in your file. They can, simply by disputing the bad stuff. But if they don't follow through — and it's likely they won't — the damaging items will reappear in two or three months.
-Check the status of a short sale. If your mortgage lender has accepted a payoff for less than what you owed, make sure that the account reflects a zero balance rather than the difference between the outstanding balance and the sales price.
Don't assume that your short sale carries no further obligations. Some lenders are going after unpaid balances by filing deficiency judgments, while others are selling these bad debts for pennies on the dollar to bottom-feeding investors who then go after borrowers with a vengeance. Also, Uncle Sam can tax the difference as income.
If you are responsible for the remaining balance, make arrangements to repay, follow your repayment plan, and make sure that the lender, whoever it is, carries your account as current rather than seriously delinquent.
-Foreclosures and bankruptcies. Bankruptcies tend to have a greater impact on a credit score because they typically involve more than one account, whereas a foreclosure involves just your mortgage, said Craig Watts, public-affairs director at FICO, the company that devises many of the credit-score formulas used by most lenders. But either way, there's nothing you can do about these extremely weighty black marks against your credit except ride them out.
Bankruptcies and foreclosures will remain on your credit report for seven years (10 years for a Chapter 7 bankruptcy). But as these items age, says Watts, they will have less and less of an impact.
Just a few years ago, underwriting rules were so loose that you could buy a house just 24 months after filing for bankruptcy. But now, according to Ginny Ferguson of Heritage Valley Mortgage in Pleasanton, you will have to wait for five years after the bankruptcy is dissolved, not just filed — and seven years if you've filed for bankruptcy multiple times.
-Short sales. Lenders tend to look more kindly on applicants who have unloaded homes via a short sale, Ferguson said. In fact, she said you may be able to obtain another mortgage in as few as 24 months, depending on the circumstances of your previous derailment. “If you truly have extraordinary circumstances, you can be out there again as soon as two years.”
-Checking and savings accounts. If you don't have these already, open them. While activity on these accounts is not usually reported to the credit bureaus, your future mortgage lender will likely want to see two or three months of bank statements, so they count in your favor, especially if you are not overdrawn.
-Apply for credit. Chances are good that if you've gone through a rough time, your credit-card issuers have closed your accounts. But if you still have one or two or more, make sure that you make your payments on time.
-Next, apply for new cards. Credit-scoring models value the various types of credit differently, so the right mix is important. Having two or three revolving accounts, typically credit cards and an installment, fixed-pay loan (say, for a car) can actually improve your score, as long as you are current.

Also consider a secured credit card, one backed by a deposit you made with the institution issuing the card. While secured cards sometimes have higher fees and interest rates, the account activity is reported to the credit repositories each month. And after a period of on-time payments, the issuer will often offer you an unsecured card.
Realize, however, that credit cards are loans, and each issuer has different lending standards. So you will want to apply only for those cards that fit your profile. To research the various yardsticks, go to www.CreditCards.com or www.Bankrate.com.
Beware, though, of applying for too much credit at one time because it can appear as though you are desperate. Too many credit inquiries can have a negative impact on your score.
Take out a small loan. A personal loan from a bank or credit union can serve to re-establish your credit. You may be asked to put up collateral, but it will be worth it to build your file back up.
Make sure that your accounts are reported. After going through all this trouble, it would be a shame if your lenders did not report your on-time payment status. If the credit agencies are unaware that you've cleaned up your act, all this effort will have gone for naught.

YouTube: How to Buy a Foreclosed Home

If you've ever put an offer in on a foreclosure property, you'll related to this video. Hilarious!

http://www.youtube.com/watch?v=SM7oWKgCVo4

What's Ahead for San Diego Real Estate in 2010?

The median home price in California will rise 3.3 percent to $280,000 in 2010 compared with a projected median of $271,000 this year, according to C.A.R.’s "2010 California Housing Market Forecast," presented today at CALIFORNIA REALTOR® EXPO 2009 in San Jose. Sales for 2010 are projected to decrease 2.3 percent to 527,500 units, compared with 540,000 units (projected) in 2009.

“California’s housing market continued its strong sales rebound this year, resulting from the continued pace of distressed properties coming to market,” said C.A.R. President James Liptak. “This follows two years of double-digit sales declines in 2006 and 2007.

Looking ahead, we expect sales to moderate to a more sustainable pace.” “After experiencing its sharpest decline in history, we expect the median price to rise modestly next year,” Liptak added. “2010 will mark the beginning of the ‘new normal’ for California’s housing market. This ‘new normal’ likely will feature a steady stream of sales driven by distressed properties in the low end of the market, coupled with moderate home-price appreciation.”

“With distressed properties accounting for nearly one-third of the sales in 2010, inventory will be relatively lean, under six months during the off-season months, and a roughly four-month supply during the peak season,” said C.A.R. and Vice President Leslie Appleton-Young. “We expect the median price to decrease slightly through the remainder of 2009 and into next year, then rise before leveling off next summer. For the year as a whole, home prices are forecast to reach $280,000. The wild cards for 2010 include foreclosures, loan resets, the labor market, and the California budget crisis, as well as the actions of the federal government.”

Coronado Best Buys List: October 7, 2009

Greetings!

There are 23 properties currently in pending on Coronado Island right now. In the last month, 18 properties closed escrow on the Island ranging from $450,000 to $2,800,000. A nice rebound in the higher end—over 70% of the properties that sold for over 1 million, compared with only 30% last month.

Here are is our complete BEST BUY LIST. Don’t let these great deals pass you buy…sign up for our ASAP property emails, and you’ll find out the second something comes on the market—just as soon (if not sooner) then other agents!

$485,000 730 E Condo, 2/2, a charming condo with nice upgrades.

$699,000—807 8th Street, condo, 3/3. Price drop from $745,000! Corner unit townhome. Great location. Spacious 3 bdrm/2.5 ba floor plan with over 1,416 sqft of interior living space. Abundant windows and spacious rooms promote a bright and airy feeling throughout the entire home. Laundry hook ups in unit. One car garage plus additional parking space provided. Only six units in this private and well maintained complex.

$749,000—16 Montego, condo, 2/3. GATED COMMUNITY WITHIN A COMMUNITY! A PENTHOUSE IN A VERY PRIVATE (72 CONDOMINIUMS) SETTING WITH THEIR OWN TENNIS COURT, SWIMMING POOL, CLUB HOUSE, ETC. UNIT COMPLETELY RENOVATED. NEW DOORS AND WINDOWS, GRANITE AND MARBLE, CUSTOM CLOSETS, TOO MANY CUSTOM FEATURES TO LIST.

$789,000—570 G #A, condo, 2/3. One of 3 units, this house like contemporary townhome has great outdoor space and is located in the heart of the Village. No units above or below and only attached on one side. Beautiful remodeled kitchen with granite counters and stainless appliances. Large living room opens to a private patio. The central stairway brings you to the den at mid level which opens to another private deck. A few more steps takes you to the master bedroom suite with beatiful bath (also laundry) and 2nd bedroom and 2nd bath.

$795,000—403 Pomona, house, 3/3. SHORT SALE! Charming custom home with Spanish tile throughout the first floor. Huge gourmet kitchen with large center island, Corian counter tops, recessed lighting, and open eating area. Private office with built-ins. All rooms are spacious and bright.

$819,000—5 Half Moon Bend, house, 3/3. PRICE DROP FROM $859,000! Beautiful well-maintained home in the cays. Steps to the boat dock. Partial view of marina from bedroom window.

$849,000—407 E Ave, house, 3/3. This property is a masterpiece. Every detail has been meticulously thought out to best maximize the size, utility and value of this home. The attic is fully finished. You must see this property to truly appreciate all of the features. It is wired for alarm, intercom, internet, cable, central vacuum. The high end tile & granite is simply beautiful. It has its own private grass courtyard like area in front of unit and a good size patio/deck of both the front and rear of the unit.

$798,000-$898,000--1405 First Street, condo, 3/3. SHORT SALE! Bay views and highly desirable location just steps away from world famous Coronado shops, restaurants, fishing pier and more. Incredible value for this highly upgraded town home including granite kitchen, Brazilian hardwood floors throughout, marble bath rooms, community pool and more. Please see supplement and property website for more about this amazing value.

$1,149,000—1730 Avenida del Mundo #702, condo, 2/2. Least expensive 2 bedroom, at the Shores! She wants ocean, he wants the bay? Here's the answer! She can gaze at the waves while he admires the yachts gliding by on Glorietta Bay. Nicely appointed thruout, this furnished condominium in luxurious Coronado Shores is just steps from the beach, pools, clubhouses and tennis courts. Short stroll to the Hotel Del and village!

$1,300,000-1,495,000—120 C Avenue, #207, condo, 2/2. Never been lived in LUXURY CONDO. Beautiful 2 Bedroom 2 Bath end unit with fabulous patio. Hardwood floors, crown molding, Island style finishes, Viking appliances... all on one level. Regatta Bay is a new luxury complex with 16 High End Residential units.

$1,495,000—24 the Point, house, 3/3. Come see one of the first homes built in Green Turtle. Great opportunity to remodel or rebuild. Fabulous south facing views and private boat dock that will accommodate two boats. The kitchen was remodeled in 2005.

$1,599,000—420 J, house, 3/3. Gorgeous Like New..."Tommy Bahama Style" Interior... Nothing 'ordinary' here! Warm & wonderful home, w/ 3 spacious bedrooms including a beautiful master suite. Plenty of closet space & storage. Warm granites & designer features. Kitchen w/breakfast bar & built in nook. Sound system, Backyard w/fountains, BBQ area + 2 car garage w/ storage & epoxy floors.

We update this list every two weeks based on price, location, square footage, and condition of ALL homes currently on the Coronado MLS. To subscribe to the Coronado Best Buys List and get pictures and additional information, please email christinevt@prusd.com with BEST BUYS in the subject line.

Thanks for reading!