Billionare's Mansion Fetches $65 Million

What housing slump? This 12,000 square-foot mansion owned by the family of billionaire mining magnate Robert Friedland his in escrow...for it's full $65 million dollar asking price. This is a record for Northern California.

What's so special about this place? Well, the home sits on a hilltop on Belvedere Island, about 15 miles north of San Francisco, and has views from the Golden Gate Bridge to the San Francisco-Oakland Bay Bridge.

Mortgage Default Notices Fall by 31%

SAN DIEGO – The pace of foreclosure activity in San Diego County slowed markedly in November, but analysts say it's too soon to predict an end to the surge in defaults that has characterized 2007.
The number of notices of default in the county for last month totaled 1,463, down 31 percent from the 2,119 in October, DataQuick Information Systems reported yesterday.
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30 year mortgages at 2-year low

Most mortgage rates fell this week, with those on 30-year mortgages dropping to their lowest level in more than two years, Freddie Mac reported. Thirty-year fixed-rate mortgages fell to 6.10 percent from 6.20 percent last week. This week's rate was the lowest since the week of Oct. 13, 2005, when rates stood at 6.03 percent, according to the Union-Tribune.

Talks to Improve Baja Safety

After scary robberies, kidnapping and the like, Baja officials are finally getting together to see what they can do to make it safer for tourists. So far their have been six armed assaults on American travelers in the last few months.

Thank goodness they're working on things down there, because I want some lobster!

DISASTER

I am very sad to stay that the state supreme court has upheld a nasty ruling to chase the seals out of La Jolla. So sad that in this day in age, people can't appreciate wildlife and are so selfish they have to hog the ENTIRE COASTLINE for themselves. I'm embarassed for all of us!

Unbelievably Bad Real Estate Photos

Do you want your home to look like THIS when it appears in the MLS? Well, many homes do! Some real estate agents take truly HORRIBLE pictures of their listings and actually expect them to sell. A genius real estate agent named Norm Fisher from Canada made his own slide show of the truly grotesque photos that agents use to market your home. SCARY!!! And funny, too. Click here to check out the truly hilarious slide show.

California offers relief to homeowners facing default

Hooray! California has inked a deal with four major loan servicing companies that would aid homeowners on brink of default by extending low, introductory interest rates on mortgages.

The agreement with Gov. Arnold Schwarzenegger includes Countrywide Financial Corp., GMAC Financial Services, Litton Loan Serving and HomEq Servicing.

At least one of the companies, Countrywide, had previously announced it would reach out to borrowers in danger of defaulting on payments, including modifying the terms of their loans. Countrywide, the nation's largest mortgage lender, has struggled amid rising defaults, forcing it to set aside millions to cover bad loans.

Click here to read the article.

What housing bubble? Places where real estate is hot.

Home prices nationwide posted their biggest drop in 16 years last month, according to the national association of realtors. But someone forgot to tell the folks in Salt Lake City. There, the median home sale price jumped 21 percent in the second quarter this year, versus the same period last year, reports MSNBC.

Click here to read more about places where the real estate market is hot.

Bill would let judges act to save mortgages

WASHINGTON – Congress is considering legislation that would allow bankruptcy court judges to rewrite loan terms for people at risk of losing their homes, a change that supporters say could save a half-million borrowers from foreclosure through early 2009.
Under this plan, judges could lower the interest rate of a mortgage on a primary home, extend the life of the loan or forgive part of the debt – as they currently can for vacation homes, farms and investment properties. Doing so could reduce by one-quarter the 2 million foreclosures expected in the next 18 months, according to Moody's Economy.com.
Click here to read more.

Booze beach ban might be overturned!

Thank goodness! Looks like the one-year trial ban on booze at all San Diego beaches--just approved by the San Diego City Council--might get overturned.

According to an article in the San Diego Union-Tribune, activists on both sides of the contentious debate say it's all but certain that a referendum drive soon will be launched to overturn a one-year trial ban the San Diego City Council approved Tuesday.

The ordinance, imposing a 24-hour alcohol ban at all San Diego beaches, bay shores and coastal parks, is scheduled to take effect 30 days after Mayor Jerry Sanders signs it. A spokesman said the mayor would do so early next week.

Then the clock starts ticking.
Opponents will have 30 days to gather 30,209 petition signatures – 5 percent of the vote in the last general election – for a referendum. If the enough signatures are certified as valid, the City Council would have to either rescind the ban or put it to a public vote within 11 months, during which time it would remain on hold.
Council votes to outlaw alcohol on the beach in 1991 and 2002 were reversed after successful petition drives.

Our fingers (and bottle openers) are crossed!

Lenders go Back to the Basics--Good Credit is King

Risky lending policies are junked as lenders return to the basics, according to this article in the San Diego Union-Tribune.

The graphic to the right depics the falling popularity of ARMs.

Home Equity Stays Healthy--Despite the Downturn

This just in from Washington's housing expert Kenneth Harney...

With the daily din of bad news about the state of the housing market, it's easy to lose sight of larger economic realities: Despite declining prices in many markets, homeowners still control near-record equity holdings.

Click here to read more.

Party at the Palace

Forget the clubs. Last night, the party was at the Palace in the Sky.

The listing agents for the penthouse at 645 Front Street rolled out the red carpet for a spectacular open house, inviting brokers and curious neighbors to admire the 4,300 mega condo in all its splendor. We arrived an hour after the party started, and it was already bursting at the seams with suited-up real estate agents mingling over wine and jaw-dropping views.

To be sure, the “Palace in the Sky” takes luxury to the next level. You couldn’t cram more over-the-top opulence inside if you tried. Located on the top floor of the Renaissance downtown, the condo sports a huge 1,500 square foot wrap around balcony with panoramic views of San Diego Bay, Point Loma and downtown. The hot tub fades (dangerously) away into night city views.

Sure, you get pano views from virtually every room, but you get more than that with the 12.5 million price tag. The two story main hall is filled with elaborately carved woods and Botticino marble floors, and all of the toilets are painted with GOLD. Yes, GOLD! The walls are made out of Venetian plaster. Other features include: a luxurious theatre room, hand-crafted fireplaces, and a wine cellar that accommodates almost 800 bottles of wine.

The master closet (walk in, of course) is lined with floor-to-ceiling mirrors, and the accessories storage is packed with more expensive purses than I have ever witnessed.

But…it’s 12.5 million. For a CONDO. Let’s put that in perspective. There are currently 50 properties in San Diego over 10 million, and quite a few at the 12 million mark, ranging from dramatic oceanfront spreads in La Jolla to sprawling estates in Rancho Santa Fe to Spanish style mansions in Coronado. Now, maybe it’s just me, but if I had 12 mill to drop, I’d be more likely to spend it in a sprawling oceanfront estate.

That being said, it’s hard to put a price tag on a one-of-a-kind property, and the Palace in the Sky, with its over-the-top amenities definitely fits the bill! Don’t believe me? Check out the website and the virtual tour.

Foreign investors set their sites on the U.S. housing market

Some good news...leading experts are saying that foreign investment could lift the housing market. Our low prices and falling dollar are making U.S. properties a good deal!

According to this article by the Associated Press, the weakening dollar has caused many problems for consumers, but it may also be providing the fuel for one unintended — and very welcome — benefit: a rally in the struggling housing market driven by foreign investors.

"European investment is likely to pick up," said Mark Vitner, chief economist for Charlotte, N.C.-based Wachovia Corp. "Now is the time to come over and take advantage."

The theory goes like this: that foreign investors step in and replace first-time home buyers who have been squeezed out of the housing market during the recent downturn. These new investors in turn allow current homeowners to sell and trade up to larger homes.

Some mortgage brokers are already seeing a boost in inquiries about buying property from overseas. Dan Green, a certified mortgage planning specialist and author of TheMortgageReports.com, said the number of inquiries he's received from outside the U.S. is probably five to 10 times larger than it was a year ago.

While experts say that cities like New York and Chicago are likely to see the most foriegn investors, California and Florida will get their share too. Cheers to that!

The Bright Side of Foreclosures?

The San Diego Union Tribune ran an interesting article today, illuminating the "bright" side of foreclosures, ie, that distress sales and dropping prices are allowing lower income families to get into the housing market.

“When was the last time we put thousands of affordable housing units on the market?” asked Gabe del Rio of Community HousingWorks. “We are talking about homes you bought for $450,000 last year that now are being sold for about $300,000. . . . It makes a big difference.”

Let's just hope that someone explains to these folks what an ARM means...

Mortgage Rates Fall Across the Board

From the Associated Press:
Rates on 30-year mortgages fell for the third straight week, dropping to the lowest level in five months, Freddie Mac reported in its nationwide survey. Analysts attributed the decreases to mounting evidence that the economy is starting to slow.

Thirty-year fixed-rate mortgages dipped to 6.24 percent this week from 6.26 percent last week. Rates on 15-year fixed-rate mortgages edged down to 5.90 percent from 5.91 percent. Rates on five-year adjustable-rate mortgages fell to 5.89 percent from 5.98 percent. Rates on one-year ARMs dropped to 5.50 percent from from 5.57 percent.

Not included in the rates are add-on fees known as points. Thirty-year fixed-rate mortgages carried a fee of 0.4 point, while 15-year fixed-rate and five-year adjustable-rate mortgages carried a fee of 0.5 point. The one-year ARM carried a fee of 0.6 point.

Interior designer Jules Wilson changes the face of downtown

If you've been checking out the fresh, modern interiors of downtown's newest projects, chances are you've see the work of award-winning interior designer Jules Wilson. According to a recent article in the San Diego Business Journal, Jules is changing the face of downtown San Diego residential interiors — one hot project at a time.

With 2006 revenues of $1 million and projected revenues this year of $1.75 million, the 34-year-old Wilson is definitely on the move with Jules Wilson I.D. — endearing herself to homeowners and developers with her minimalist, sleek designs.

Wilson designed the interior spaces for OliverMcMillan’s nearly completed Gaslamp Quarter apartment high-rise, The Lofts at 655 Sixth Avenue, including the leasing office, media center, lobby, corridors and common areas. Studios, one-, two- and three-bedroom units are available for lease — ranging from $1,400 to $3,800 per month. Studios are 400-700 square feet; one-bedrooms, 700-1,000 square feet; two-bedrooms, 900 square feet; and three-bedrooms are 1,450 square feet.

One Year Beach Booze Ban Passed!

Disaster!

No more wine at the beach at sunset. No more cold brews on the coast after work. That's what the San Diego City Council decided last night, according to this article in the San Diego Union-Tribune, passing a one-year ban on alcohol at all city beaches, bay shores and coastal parks. The 5-2 vote, the minimum needed for passage, came after nearly four hours of debate and speeches by scores of residents and City Council members.

Yeah, I'm looking forward to the Fourth of July this year....NOT!

El Cortez Residents raise a ruckus over proposed new building

A new building is set to go up near the historic old El Cortez, and the residents are not happy. They are taking it to the courts! El Cortez residents complain that the 12-story, mixed use building may take away from El Cortez’s prominent skyline position on Cortez Hill, block views and not blend with the neighborhood’s historic architecture, according to many neighbors. Hmm...

According to an article in the San Diego Business Journal, Centre City Development Corp., the downtown redevelopment agency, approved a controversial mixed-use project called 777 Beech last month despite concerns from neighbors and pending litigation. The next hurdle for the proposed $40 million, 12-story project by developer Peter Janopaul of the J. Peter Block Cos. will be reviews by the city’s redevelopment agency in December and the San Diego City Council in January.

The controversy emerged from the developer’s most recent request to build a second residential high-rise on the Beech Street side of the block between 7th and 8th avenues. Apparently there are multiple legal cases involving the developer, including a case regarding construction defect litigation as a result of El Cortez’s condo conversion a few years ago from rental apartment to for-sale condo units, a lawsuit for allegedly underfunding the reserve fund of the homeowners association (okay, not good!) and now a lawsuit regarding the right to develop 777 Beech on a portion of the El Cortez block.

The developer, Peter Block is very comfortable with its legal position. He said sales agreement documents at El Cortez have full disclosure on the possibility of building a second structure on-site.

“Their story is heart wrenching and appealing at face value, but as soon as you get out the documents and show the disclosures they signed promising that a building was coming and you do some other fact checking and now it appears to be a simple, straightforward NIMBY (not in my back yard) issue with a lot of good rhetoric mixed in,” he said.

If approved, there will be eight studios, six one-bedroom units, 56 two-bedroom units and eight three-bedroom units.

Maybe it's just me, but since when do downtown residents get guaranteed, unobstructable views? (or, anywhere for that matter.)

$12 Million for a Condo? You Bet.

The owners of the two-story penthouse at 645 Front Street (pictures above) are asking $12.5 million, believed to be the highest-ever asking price per square foot for any downtown resale property. What's so special about this place? Let's just say, when it comes to the for the 4,400-square-foot “Palazzo del Cielo” (“Sky Palace”) in the south tower of the Renaissance project at First Avenue and G Street--it's all in the details.

Potential buyers are sure to notice the pricey materials that dramatically upgraded a relatively unadorned, builder-grade project: 10,000 board-feet of walnut, 50,000 sheets of gold, silver and bronze leaf, 75 slabs of granite and marble, Venetian plaster treatment and untold niches and built-ins, some created from antique furniture.

What are the HOAs on a property like this? $1287.

Click here to read more.

Mortgage Rates Drop to Five Month Low

Rates on 30-year mortgages fell to the lowest level in five months as evidence mounted that the economy is slowing down.
Freddie Mac, the mortgage company, reported Thursday that 30-year, fixed-rate mortgages dipped to 6.26 percent this week, down from 6.33 percent last week. It was the lowest level since 30-year mortgages were at 6.21 percent the week of May 17.

Click here to read more.

North County, Coronado Lead the Pack for Biggest Percentage Gain

According to the latest sales statistics for September, the following areas are leading the pack for the biggest percentage appreciation in median home price since September 2006:
Cardiff (62.0%)
Julian (60.7%)
Carlsbad (36%)
Del Mar (28.4%)
Coronado (29.7%)

On the other end of the spectrum, the neighborhoods representing the biggest percentage depreciation in median home price since September 2006:
Jamul (-55.3%)
Descanso (-50%)
Logan Heights (45.7%)
Palomar Mountain (-45.1%)
Hillcrest, Mission Hills (-33.7%)

September Sales Statistics for San Diego

These sales stats just in:
Number of closed sales in September:
1854, down from 31% from August, and down 40% from September of 2006.
Average Sales Price for Detached Homes in September:
$535,000, down 5% from August, and down 4% from September 2006.
Average Sales Price for Condos in September:
$365,000, up 2% from August, and down 4% from September 2006.

Sale of New Homes Up

Finally, some good news. Nationwide, sales of new homes posted an unexpected gain in September. The Commerce Department reported Thursday that sales of new homes rose by 4.8 percent last month to a seasonally adjusted annual rate of 770,000 units. That level of activity was still 23.3 percent below a year ago, indicating that housing remains in a steep downturn.

Click here to read more.

Low Cost Areas Hit the Hardest by Foreclosures; Nestor, Paradise Hills & San Ysidro Top the List

As the rising wave of defaults and foreclosures sweeps like a tsunami over San Diego and the rest of the nation, virtually every neighborhood is being affected, according to a new report from DataQuick Information System.

But the impact – to no one's surprise – falls greatest on the areas favored by first-time buyers.
“Entry-level buyers and low-cost areas are generally stretching their finances more and they used these subprime mortgages more frequently than buyers and refinancings of higher-priced areas did,” said DataQuick analyst John Karevoll.

Based on county ZIP code areas with at least 20 sales from July through September, 43 had a higher ratio of sales to defaults than the 1.47 county average and 38 had a lower ratio. Overall, there were 8,362 sales and 5,673 default notices in the third quarter in the county.

The top 10 ZIPs had ratios as high as nine sales for every one default. But Coronado, Carmel Valley and Rancho Santa Fe, among the county's highest-priced areas, each still had a handful for defaults and foreclosures.

The bottom 10 had as many as three times more defaults than sales. The lowest three – San Ysidro, Paradise Hills and Nestor – also have some of the lowest median prices in the county.
Nestor, the south San Diego city neighborhood at Interstate 5 and Palm Avenue, had 79 sales with a median value of $416,000 in the third quarter, but 221 default notices, resulting in the lowest ratio of sales to defaults of any ZIP code area.
Click here to read the full article.

Fires Aren't Expected to Dampen Home Sales

According to an article by the San Diego Union-Tribune, San Diego County's already fragile real estate market should feel little ill effect from the week's widespread wildfires. However, some of the harder hit communities can expect a dip in home sales in the coming months, housing experts say.

While housing sales countywide remain at record lows amid sharply rising foreclosures, it's unlikely that the loss of at least 1,400 homes, as high as that figure sounds, will dampen a market that logs thousands of sales each month, said analyst John Karevoll of DataQuick Information Systems.

Rents Up in San Diego

Landlords are reaping the benefit of the housing slump, according a new report. The RealFacts research firm shows that apartment rental rates climbed to an average of $1,363 in the third quarter, up 5 percent from a year earlier and 1.26 percent over the previous quarter.

Chris Bates, a spokesman for Novato-based RealFacts, said the increase followed several years of very modest growth and was “just above average” among metropolitan areas in the West and Southwest.
Analysts said the underlying reason for accelerating rents is the weak housing market.

Instead of buying, a lot more people are renting. Some are hoping for prices to drop. Others have simply been priced out of the market.” Foreclosures have returned some homeowners to the rental market, while the recent credit crunch has prevented others from becoming homeowners.

Who Pays the Highest Property Taxes in the Nation?

Think San Diego has it bad when it comes to paying property taxes? Think again. In New York and New Jersey, residents pay more in taxes than anywhere else in the nation. Median property taxes in Hunterdon County, New Jersey amounted to a whopping $7,999. Holy cow! Compare that to San Diego, where the median property tax bill (according to 2005 reports) was $2,820.

In fact, New York and New Jersey residents can expect to pay up to $6,500 more in yearly property taxes than the national average. The reason: The region's homes are among the priciest in the country, and tax rates there are high as well.

Elsewhere, it's one or the other, not both. California properties are among the country's most expensive, but property-tax rates there are a third what they are in the Northeast. Property-tax rates in the Midwest and South are comparable to the Northeast, but the homes there are often half as valuable, making the amount paid in taxes significantly less.

Click here to read the report.