Just in...May Sales Statistics!

San Diego Free Concert Schedule!

Free Summer Concerts galore! From Coronado to La Jolla to Encinitas...San Diego is ripe with summer concert fun coming to a park near you. Pack up the wine, cheese, and a blanket, but leave your wallet at home...these concerts are free.

Click here for a link to the free concert schedule.

Home Sale Hassles of the Rich and Famous

Anybody having trouble selling their home should take comfort in the fact that even celebrities are having the same problem. Here are some celebs who can’t seem to sell their houses:

• Jon and Kate Gosselin, co-stars of the popular TLC show "Jon & Kate Plus 8," have been trying for three months to sell their former home in Elizabethtown, Pa.
• Rapper 50 Cent has given up selling his mansion in Farmington, Conn., after dropping the price from $18.5 million to $14 million.
• Richard Gere and wife Carey Lowell have dropped the price on their home in New York’s Hamptons from $8.8 million to $7.2 million.
• Model Elle Macpherson cut the price of her London Victorian from $9.5 million to $8.5 million, and has since dropped it to $7.5 million.
• Star of "Real Housewives of Orange County" on BRAVO TV Jeana Keough, also a real estate practitioner, is facing foreclosure.

Source: Chicago Tribune, Mary Umberger (06/21/2009)

California Running out of $10,000 Tax Credits

First-time home buyers wanting to take advantage of the state’s $10,000 tax credit may have less time than originally expected. California set aside $100 million to help home buyers purchase newly built homes, hoping to jump start the residential-construction market. According to state officials, the tactic has worked well and is helping to entice home buyers into the market. However, there only is approximately 20 percent of the program’s funding remaining.

The program launched in March, and as of June 3 nearly $24 million in tax credit certificates already had been issued, according to the state’s Franchise Tax Board, leaving nearly $76 million in credit available. Many applications still are in the pipeline awaiting approval. If all of the submitted applications are approved, only $17.5 million would remain in the fund.

The California state legislature is considering adding another $200 million to the program. However, securing approval may be difficult due to the state’s estimated $24 billion budget deficit. A bill to extend the program already has won Assembly approval and now is awaiting activity in the state Senate.

Click here for the full story.

Socal Home Prices End Two-Year Skid

In the latest indication that the gloom in the housing market might be lifting, MDA DataQuick reported yesterday that May prices in Southern California rose for the first time in nearly two years, up $2,000 from April to reach an overall median of $249,000.

On Tuesday, DataQuick reported that San Diego County's median price rose even more, up $5,000 from April, to stand at $295,000, or $15,000 above the recent low point in January.

“We appear to be in the early stages of the market gradually tilting back toward a normal balance of sales across the home-price spectrum,” DataQuick President John Walsh said.

Click here for more.

Source: San Diego Union-Tribune

Coronado Best Buys List, 6.15

Greetings!

In Coronado right now, there are 20 properties currently in escrow, and new listings coming up every day. We are also seeing a few more well-priced distress sales, including short sales and the occasional foreclosure.

Here's the Best Buy List for Coronado.

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

-$550,000--553 F Avenue, condo, 3 bedroom, 3 bathroom. Wow!

-$700,000—BACK ON THE MARKET—FELL OUT OF ESCROW--48 Antigua, condo, 2/2. Great price on this 2 BR/2BA bayfront condo with a boatslip that will accommodate a 40'ft. boat with a 13.6 beam. Large patio with extra storage and 2 car garage. Condo offered furnished, inventory will be provided.

-$747,000—835 D #2, Condo, 3/3. Roomy and upgraded condo in the heart of the Village. High ceilings. Private location in the complex. Deck / yard area behind home. 3 bedroom home. More than 1700 square feet!! Granite countertops, stainless appliances.

-$800,000-$894,000, 242 C Avenue, Condo, 3/2. More than 1800 square feet on a beautiful Spanish –style complex with nice balcony, just one block to the beautiful San Diego Bay. Private two car garage.

-$949,000--900 G Avenue, House, 2/2 . Wonderful corner lot three blocks to the beach! Zoned R-3 for construction opportunities. Schools, shopping, restaurants and all you need minutes by foot. Great location to call home...a home by the beach!!

-$850,000-$950,000--438 D Avenue, House, 3/3. Brand new construction! Open floorplan with 3 bedrooms, 3 bathrooms and a finished attic. Gourmet kitchen includes a Viking range, cherry hardwood floors, open living room with fireplace, 2 car garage, laundry closet and more! Close proximity to Coronado Schools, Parks, Library and more. This property is approved for a VA loan.

-$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

-$1,685,000--49 Green Turtle, house, 3 bed, 2 bath—least expensive detached home in the Cays with its own dock—for TWO 45 foot yachts!

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.

How to Find Cash in a Second Home

Second homes are a tougher sell during an economic slump when people are reluctant to buy first homes.

Owners who discover their vacation homes have become a financial burden can find ways to generate income from their properties, say real estate professionals with experience in making second homes pay off.
Here are some of their suggestions:
1. An owner can rent out a property for two weeks without paying taxes on the income. If there is an annual cultural activity, like a film festival, it can provide a good opportunity to make significant money.
2. Concentrate on renting properties profitably. An effective do-it-yourself Internet rental campaign can cost less than $500 and yield thousands in return. One option is to put an ad on VRBO.com which is the Web site for Vacation Rentals by Owner.
3. Donate a week or two stay at your vacation home to charity and then take a tax deduction for the gift. VacationHomesforCharity.com will help identify the right value.
4. Donate the whole property to charity. The owner can maintain a life estate which is the right to live in the house until death.
5. Appeal property taxes. Municipalities are recognizing that some assessments are out of whack and will adjust them.

Source: The Wall Street Journal, Suzanne Barlyn (06/08/2009)

Mortgage Rates Jump--Lock in Now, or Wait?

Floaters got sunk this week. Anyone who is in the market for a new mortgage, be it a straight-up purchase or refinance, and was letting their rate float in hopes of locking in at a lower rate instead got smacked with a near quarter point rise in the 30-year fixed rate. According to Bankrate’s latest weekly survey (conducted Wednesday morning) the 30-year fixed average was at 5.45%, up from 5.23% That’s the highest level since February, and more than a half point above the 4.9% borrowers in early April could snag.

So what’s a floater to do now? Well, if you’ve lost your betting mojo, lock in and be happy. Yes, happy. Let’s remember that 5.45% is still seriously good. It was only one year ago that the average 30-year fixed rate was 6.1%. And long term, it is all but assured that a 5.45% fixed rate is going to look darn nice. It may take some time before the Fed gives up the fight and has to let rates rise to attract buyers for all the debt we now have to pay off, but it will happen. So while today’s 5.45% is high relative to a month or two ago, it is likely to be one you will boast about in the coming years.

Click here for the full story from CNNMoney.com.

How to Get your $8000 First-Time Buyer Tax Credit Now

Qualified, first-time home buyers using a Federal Housing Administration (FHA)-insured mortgage now can apply the $8,000 federal tax credit toward their down payments, the U.S. Dept. of Housing and Urban Development (HUD) recently announced.

Currently, borrowers applying for an FHA-insured mortgage are required to issue minimum down payments of 3.5 percent. Buyers still must issue the mandatory 3.5 percent down payment, but the tax credit now can be used as an additional down payment, or for other closing costs, which can help lower principal balances and monthly payments.

Click here for more info.

Study says San Diego Housing Prices are Undervalued...as Much as 21.2%!

San Diego County used to be one of the nation's most overpriced real estate markets, as much as 40 percent above historic norms, according to the IHS Global Insight financial analysis company.
Yesterday, in a dramatic turnaround, Global Insight said housing prices in San Diego are 21.2 percent undervalued.

“It's definitely coming back from the boom,” said Global Insight economist Jeannine Cataldi.
The median price for a single-family home was $327,300 in the first quarter, the company said. Based on historic trends for household income, affordability and appreciation, the “normal” value should have been $415,300.

That contrasts with the peak of the boom market, in the third quarter of 2005, when Global Insight found the median price of $506,500 was above the norm by $144,100, or 40 percent.
From the peak, local housing prices have fallen 35.4 percent, back to a level last seen in the fourth quarter of 2002, the company said.

Click here for more.

Pending Homes Sales Rise in San Diego

San Diego County pending home sales surged in April, mirroring the national trend and adding further evidence that the housing slump may be ending soon.

The National Association of Realtors said yesterday its pending home sale index rose 6.7 percent year-over-year to 90.3 in April, based on a survey of multiple listing services and large brokerages.

The pending sales counts are based on the number of homes that entered escrow or involved a sales contract in a particular month. It can take several weeks or months before the sale is completed. Economists consider pending sales a leading indicator of home sales activity.

There is no index for pending sales in San Diego, but Peter Dennehy, senior vice president at the Sullivan Group Real Estate Advisors firm, found that pending sales in April jumped 33 percent from April 2008 to 3,740 properties.

It was the biggest year-over-year increase for any April this decade and the highest number of pending sales for that month since the peak of the boom in 2005.

“It's actually getting pretty good,” Dennehy said of the pace of sales.

Dennehy said buyers are prompted by falling prices that make homes more affordable, relatively low interest rates, falling inventories of homes for sale, a rising stock market, improving consumer confidence and predictions that the recession may end this year.

“The overall market is starting to move in the right direction,” Dennehy said.

Most sales still involve distressed properties, worth $350,000 or less, that were previously foreclosed on or sold for less than the loan amount. Higher-priced homes and luxury properties are not selling at their usual pace.

Lawrence Yun, chief economist of the national realty group, said the increase in pending sales may owe part of its surge to the $8,000 federal tax credit to first-time buyers; a separate $10,000 state credit is available in California to new-home buyers.
“We expect greater activity in the months ahead,” Yun said, because the federal credit is only available to buyers who close escrow by Nov. 30.

Click here for the full story.

SOURCE: San Diego Union-Tribune 6/3/2009