10 Things Buyers Want in a House...and it's Not Size!

Houses are getting smaller, according to data released last week by the National Association of Home Builders.The association said that the average size of a new home in 2009 was 2,480 square feet, down from 2,520 square feet in 2008.

"The era of easy money is over. You really have to think before you go out and decide you need that five-bedroom, five-bath home," said Rose Quint, the organization's assistant vice president for survey research.

Despite smaller home sizes and tightening credits, there are still some features that are expected in new houses. Builders say the following are most likely to be standard in homes built in 2010:
Walk-in closets in the master bedroom.
Laundry rooms.
Insulated front doors.
Great rooms.
Energy-efficient windows.
Linen closets.
Programmable thermostats.
Energy-efficient appliances and lighting.
Separate shower and tub in master bathrooms.
Nine-foot ceilings on the first floor.

Source: MarketWatch, Steve Kerch (10/22/2010)

10 Home Components Buyers Should Pay Attention To

Many aspects of a home last little more than a decade. Home buyers should be especially vigilant about inspecting these household components because they have a relatively short lifespan, says the National Association of Home Builders.

Aluminum roof coating: 3-7 years
Enameled steel sinks: 5-7 years
Security systems: 5-10 years
Carpet: 8-10 years
Smoke detectors: fewer than 10 years
Faucets: 10-15 years
Garage door openers:10-15 years
Air conditioners: 10-15 years
Asphalt: 12-15 years
Termite-proofing during construction: 12 years

Source: Bankrate.com, Marcie Geffner (01/22/2010)

10 Inexpensive Ways to Wow Buyers

Now is the time for home owners contemplating a spring sale to spruce up their properties in anticipation of what Mike Larson of Weiss Research calls a potentially vibrant home-selling season.

"If you have been beating your head against a wall, this is going to feel a lot better,” he says.

Here are 10 cheap ways to make a property more attractive to shoppers:
-Improve first impressions. Touch up the paint on the front door and other areas that buyers see first.
-Clean up the landscaping. Trim the hedges and trees and plant some annuals in the flowerbeds.
Paint the interior. A coat of light yellow or cream with contrasting white woodwork looks fresh and clean.
-Refurbish the floors. Buff the hardwoods. Install new carpets – or at least get them professionally cleaned.
-Take care of the big problems. If the house needs a roof or the front stoop is crumbling, get them fixed.
-Buy warranties. Putting appliances under warranty gives homebuyers a secure feeling.
-Improve energy efficiency. New windows or improved insulation tells a potential buyer the seller is on top of things plus they come with tax benefits.
-Replace light fixtures. Updated fixtures, especially at the entrance way and in the foyer, create a good first impression.
-Buy a stove. Home owners whose kitchen isn’t top of the line can jazz it up for a few hundred dollars by buying a new stove, which gives the room a fresh feel.
Tidy up the bathrooms. Get rid of mildew, replace caulking, and replace stained sinks.

San Diego Home Prices Edge Upward

San Diego County home prices rose $5,000 to a median $330,000 in December after staying flat at $325,000 for four months, MDA DataQuick reported this week. Sales totaled 3,652, up 16 percent from November in the usual year-end burst of activity.

The latest median represented a 10 percent increase from a year earlier, the best such boost since April 2005 at the height of the real estate boom. It was up $50,000 or 17.9 percent from the $280,000 low reached in January but still far below the all-time high of $517,500 set in November 2005.

Single-family resales saw no change in the $365,000 median, though that figure was 9.8 percent higher than in December 2008. Sales totaled 2,185, up 20.7 percent from November and up 7.5 percent from December 2008’s 2,033. Sales typically rise in December as buyers and sellers seek to complete transactions before the end of the year. They then settle down in January and February before rising again in the spring and summer.

The resale condo median slipped to $219,750 from $225,000 in November but was up 12.7 percent from year-ago levels. Sales totaled 1,084, compared with 963 in November and 971 a year ago.

The new-home category, which includes both new construction and new condo conversions, turned in a median of $425,000, up 28.4 percent from November but down 12.8 percent from December 2008. It was the best month-to-month showing since August 1997 and possibly reflected a surge in closings of new, higher-priced single-family houses as developers sought to close out dwindling inventories in subdivisions.

San Diego Leads Region in Home Price Gains

San Diego County, with a 10 percent increase, led Southern California in home price improvement last month, although Los Angeles had the highest sales growth on a year-over-year basis, MDA DataQuick reported yesterday.

Overall, the six-county region had a 4 percent increase in median price, rising from $278,000 in December 2008 to $289,000 last month. It was the first year-over-year improvement since summer 2007. The one exception was the Inland Empire, where prices in Riverside and San Bernardino counties were lower in December than a year earlier.

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Foreclosures Rise 21% in 2009

Foreclosures rise 21 percent in 2009 Foreclosures rose 21 percent in 2009 compared with 2008, as nearly 3 million properties received a foreclosure filing, according to RealtyTrac®’s Year End 2009 Foreclosure Market Report.

Foreclosure filings were reported on 349,519 U.S. properties in December, a 14 percent increase from November and a 15 percent increase from December 2008. Despite the increase in December, foreclosure activity in the fourth quarter decreased 7 percent compared with the third quarter, according to the report.

California continued to lead the nation in foreclosure activity by volume, with 632,573 California properties receiving a foreclosure filing in 2009. Following four consecutive month-over-month declines, California foreclosure activity increased approximately 9 percent in December compared with November. Foreclosure filings declined 17 percent in California in the fourth quarter compared with the third quarter, the report found.

FHA 90 Day Flipping Rule Waived!

FHA 90-day anti-flipping rule waivedThe Dept. of Housing and Urban Development (HUD) announced Friday it will eliminate for one year the Federal Housing Administration (FHA) 90-day anti-flipping rule.

FHA’s anti-flipping rule generally prohibits insuring a mortgage on a home owned by the seller for less than 90 days. That rule already has been waived for certain transactions, including REOs. Beginning Feb. 1, buyers may use FHA-insured financing to purchase properties resold through private developers and investors. This one-year waiver will give FHA buyers access to a broader array of recently foreclosed properties.

Under the temporary waiver, all transactions must be made at arm’s-length and may require additional documentation of improvements and justification of certain price increases. Additional documentation may include a second appraisal and a property inspection ordered by the lender.
C.A.R. recently submitted a letter to FHA Commissioner David Stevens detailing the challenges facing many FHA home buyers, such as the lack of housing inventory available to them, and the need to revise this rule to reflect current market conditions. The reexamination of the 90-day anti-flipping rule was passed as an action item during C.A.R.'s board of directors meetings in October.

New Rules for FHA Buyers

The Federal Housing Administration (FHA) today outlined future changes to the FHA home loan program. The changes first were proposed last month by Secretary of Housing and Urban Development (HUD) Shaun Donovan.

Rising defaults on FHA loans have led to the FHA’s cash reserves falling below federally mandated levels. FHA officials hope that policy changes will ensure borrowers have a stronger equity position and are less likely to default.

Policy changes include:
-Raising the up-front mortgage insurance premium: The premium will rise to 2.25 percent from its current 1.75 percent. HUD is expected to release a Mortgagee Letter on Jan. 21 making the premium increase effective in the spring.
-Raising the minimum credit score requirements: New borrowers will be required to have a minimum FICO score of 580 to qualify for the FHA’s 3.5 percent down payment program. New borrowers with less than a 580 FICO score will be required to put down at least 10 percent. FHA expects this to take effect in early summer after it goes through the normal regulatory process.
-Reduce allowable seller concessions: The agency is lowering the maximum permissible level to 3 percent from its current 6 percent limit. FHA expects this to take effect in early summer after it goes through the normal regulatory process.

6 Surprising Facts about the Homebuyer Tax Credit

The homebuyer tax credit is not as simple or straightforward as you might think. Here are some nuances that will affect homebuyers who plan to use it.

-To qualify for the move-up tax credit, a home owner must have occupied the same principal residence for five of the last eight years consecutively.
-Buyers can elect to claim the credit on either their 2009 or their 2010 tax return, whichever is best for them.
-Buyers who claim the credit in 2009 can’t file electronically because the Internal Revenue Service hasn’t put the required forms on line. The wait for a refund is three or four months.
-The home can be a mobile home or travel trailer that is fixed to land owned or leased by the home owner. A mobile home or travel trailer that is actually mobile doesn’t qualify.
-The home can’t be purchased from a close relative, including a parent, spouse, child, grandparent or grandchild.
-A buyer who earns no taxable income or doesn’t owe any federal income tax can qualify for the tax credit and file a tax return just to claim it.

30 Year Mortgages Slide Below 5%

Long-term mortgage rates fell for the third straight week, pushing the average rate on 30-year fixed home loans below 5 percent again, according to Freddie Mac.

This week, average interest on 30-year mortgages was 4.99 percent, compared to 5.06 percent last week and 5.16 percent a year ago. Rates on 15-year fixed loans also followed bond yields lower, averaging 4.40 percent, compared to 4.45 percent last week; and adjustable-rate mortgages also fell this week.

Source: Los Angeles Times, E. Scott Reckard (01/22/10)

Just In: Latest Coronado Sales Statistics!

The latest Coronado, CA sales statistics are in...courtesy of Altos Research.

Summary:

Inventory is tightening and days-on-market is falling. The Market
Action Index shows demand heating up. These are relatively bullish
signs for prices.

Price:

This week saw relatively little price change from last week.
However, prices continue demonstrate a nice up trend in general
over the last several weeks.

Supply & Demand:

Home sales have been exceeding new inventory for several weeks.
While still a Buyer's market, prices seem to have responded by
moving upward. If the demand trends continue, expect prices to
keep marching upward, especially once we see a Seller's Market.

Coronado Real Estate Alert!

Coronado Best Buys List for January 18, 2010

Greetings!

There are 18 properties currently in escrow in Coronado right now, and 11 of them are BEST BUYS! Do we know how to pick them or what? Short sales and foreclosures are still coming on the market, but you have to be fast. Contact us for email alerts.

HERE ARE SOME FORMER BEST BUYS IN ESCROW:
418 E Avenue, condo, 2/2--$615,000.
457 E Avenue, house, 2/1--$699,000.
23 Delaport Court, House, 3/3, $744,000—FORECLOSURE.
102 Tunapuna, house, 2/3, $895,000.
741 Olive, house, 2/2, $899,000-$990,000.
1121 Star Park Circle, 4/5, $1,900,000—FORECLOSURE.

19 homes closed escrow the last month—the average sales price was $1,063,000, which shows that sales are still highest in the lower price ranges.

Here is the complete BEST BUYS 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!

$550,000--725 D Unit B, condo, 1/1. 700 square feet! Delightful, airy, bright upper unit with Southern exposure, move-in ready in the center of the Village with short walk to all.Completely remodeled/upgraded in 2005 with beautiful hardwood floors, new kitchen & bath, electrical & plumbing. Full size washer/dryer. Cozy balcony with sunset views over Pt. Loma. Perfect Coronado starter or vacation get away. Private garage.

$650,000—36 Montego, Condo, 2/3. Views, Views, Views from this 1471 sq Ft. 2bd/2ba Montego Court Condo. Priced to sell, original owner, great opportunity to own property on the water. Views of the bay, bridge and ocean. Boat docks available. Private village, swimming pool, tennis courts.

$649,000—864 E Avenue, condo, 2/1. Fantastic opportunity to own a completely remodeled condo in the middle of the Village. Just blocks to the ocean and two blocks to Orange Ave. Just far enough from the hustle and bustle of the city streets. This 10 unit complex is expertly maintained and the HOA reserve is large and healthy. This unit faces southeast so there's plenty of morning sunshine streaming in. Every surface of this unit has been touched. Completely remodeled in 2007, large and open floor plan. Feels much bigger than 1000 sf.

$725,000—570 G #A, condo, 2/3, SHORT SALE! Short sale-one lender. 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 w/granite counters & 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 beautiful bath (also laundry) & 2nd BR/BA.

$798,000-$898,000—1405 First, condo, 3/3. SHORT SALE! Beautifully remodeled and tastefully decorated! This spacious "townhome style" residence offers 3 bedrooms, 3 baths, wood floors, granite counters, exceptional storage, attached 2 car garage, and much, much more! What a fabulous location situated next to the Ferry Landing. Relax and enjoy the city/bay view from the MB balcony day or evening!

$799,000-$849,000—518 Adella, house, 2/2. A sleeper! A unique property waiting for the right buyer to remodel or rebuild. Hidden behind the wooden gates, an oasis of rest & relaxation awaits you. Live the Coronado lifestyle in the sanctuary of your private home. The secluded back yard features a BBQ area, built in spa, & in-ground pond. Surrounded by lush landscape, this is truly a unique & safe haven. The charming main house's wood finishes accentuate the character of this "boathouse" style residence. Next door is an attached guest house that can home visiting friends & family. Each unit is 1bed/1bath w/ their own kitchens. Nice lot size!

$875,000—257 Alameda, house, 2/3. SHORT SALE! This home boasts more than 1,900 square feet. 2 deluxe master suites. Tranquil setting and back yard.

$890,000—8 Kingston Court, condo, 2/2. Only Cays property with attached boat slip under 1 million! Over 1600 square feet. This is a beautifully remodeled East Facing Waterfront condo with a Boat Slip that can accommodate up to a 50' Yacht with up to a 15.5' Beam! The stainless steel, granite countertops and hardwood floors in the kitchen help perfectly accent this move in ready condo! This second story unit boasts breath taking bay views, vaulted ceilings, a warm fireplace and plenty of natural light. Kingston also has a common area Clubhouse with a Pool & Spa shared with Trinidad Village.

$1,150,000—1099 First Street #220, condo, 2/3. A bay and downtown skyline view welcomes you every time you come home to this beautiful bayfront condo. Two master suites, one with fireplace and a walk in closet. Spacious, gracious living with two fireplaces, air conditioning, designer upgrades and a fantastic balcony for taking in the view.

$1,459,000-$1,509,000--27 Blue Anchor Cay, house, 3/3. Least expensive waterfront detached home in the Cays with its own boat slip! More than 2,300 square feet of waterfront living.

$1,750,000-$1,950,000--900 2nd Street, house, 4/3. Redesigned from the ground up in 2006 by local firm The Jackman Group, this home exudes classic style with modern amenities and an island appeal. Features including marble countertops in the kitchen and baths, hardwood floors, high end appliances, custom cabinets and millwork throughout. Bright floor plan with large balconies, porch and BBQ area.

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
858.405.7264
christinevt@prusd.com
Search properties free on our website:www.sandiegosurfandsand.com
Check out our blog at:http://realestatesd.blogspot.com

What's Ahead for San Diego Home Prices?

California remains ahead of the nation in market recovery with many first-time home buyers entering the market due to affordable home prices, low mortgage rates, and first-time home buyer tax credits from the state and federal governments. However, credit still is tight and unemployment remains high, which could hinder a full market recovery until 2011.

Some Points to Remember:
-Home sales in California hit bottom more than two years, and the median home price of an existing, single-family home reached its trough in February, according to data collected by the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.). In November, the state’s median home price rose in year-to-year comparisons for the first time since August 2007.
-C.A.R.’s closely watched "2010 California Housing Market Forecast,” projects that the median home price in California will rise 3.3 percent to $280,000 in 2010 compared with a projected median of $271,000 in 2009.
-Some economists are forecasting another surge of foreclosures in 2010. However, C.A.R.’s economists expect that foreclosures will remain flat this year compared with 2009. In 2008, many lenders flooded the market with foreclosures, and as a result, the state’s median price declined by historic levels. By comparison, in 2009, lenders listed properties for sale at a more measured pace, which helped moderate another home price decline.
-Government efforts to maintain a low interest rate environment have stabilized the market. However, a mortgage analyst at a financial publishing company predicts that rates likely will rise to 5.5 percent by mid-2010 and close the year at 5.75 percent to 6 percent.

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MSNBC.com: Housing Headed for a Double Dip?

A recent real estate report indicates that consumers may be taking their time house hunting this winter, which some economists believe could lead to a “double dip” in home prices. A recent report from the NATIONAL ASSOCIATION OF REALTORS® (NAR) showed that its pending home sales index declined 16 percent in November to a reading of 96, the first decline after nine consecutive months of gains.

Some key points to remember:
-NAR’s Pending Home Sales Index (PHSI) is a barometer of future sales. Typically, there is a one- to two-month lag between the signing of a sales contract and the close of escrow. Although government incentives, low interest rates, and affordable home prices have lured many buyers, especially first-timers, to the market, historically sales decline during the winter months and begin to rise in the spring.

-Because of the government’s efforts to stimulate the housing market, some economists believe that housing prices will decline once the incentives come to an end. However, the CALIFORNIA ASSOCIATION OF REALTORS®’ (C.A.R.) closely watched "2010 California Housing Market Forecast,” projected that the median home price in California will rise 3.3 percent to $280,000 in 2010 compared with a projected median of $271,000 in 2009.

-According to C.A.R.’s Vice President and Chief Economist Leslie Appleton-Young, unlike the rest of the nation, home sales in California already bottomed out more than two years ago, and the median home price reached its trough in February 2009.

-Although home buyers should not focus solely on future home price appreciation, according to data collected by C.A.R. over the last 40 years, homeowners who purchase and live in their home for at least five years, have averaged an annual rate of return of nearly 12 percent

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Median San Diego Home Price Up 48% since 2000

For all the talk of the housing bust, San Diego County’s median price ended the decade up 48.4 percent from 2000.

If in January 2000 you bought a home at the median price of $219,000 and went to sleep like Rip Van Winkle, you awoke at the end of 2009 to see your home worth $325,000.

This means that many longtime homeowners are still sitting on big gains even after seeing the market skyrocket to a peak of $517,500 in November 2005 before plummeting.

Take the Krumweide family in University City. The family bought a 2,800-square-foot home for $432,000 in June 2000, took out a small amount of equity for home repairs when they refinanced and now could sell the house for about $850,000, according to their neighbor and original real estate agent, Ann Throckmorton.

“We’re just relieved we stayed with our guns, stayed with our heads,” Molly Krumweide said.
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San Diego is Nation's Third Fastest Recovering Housing Market

San Diego County ranked as the nation’s third-fastest-recovering housing market in October, though the increase in prices is slowing here and elsewhere, according to the closely watched Standard & Poor’s/Case-Shiller Home Price Index.

Data released yesterday showed San Diego’s index up 0.4 percent from September — the sixth straight monthly boost — and up 1.1 percent on a seasonally adjusted basis. Phoenix was up the most at 1.3 percent, followed by San Francisco, up 1.2 percent.

The index, which is based on comparing resales of the same properties and was set at 100 as of January 2000, stood at 155.37 for San Diego, meaning homes are selling for 55 percent more than they did at the start of the decade. Only Los Angeles and Washington had higher index numbers than San Diego’s, at 168.43 and 179.71, respectively, among the 20 metro areas Case-Shiller monitors.

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